2001 Commercial Highlights

A sampling of some United States-based companies and their direct and indirect commercial relationships with non-United States-based companies that have commercial relationships with entities within the Republic of Cuba; and United States-based companies and their direct and indirect commercial relationships with entities within the Republic of Cuba; and other commercial relationships and commercially-relevant matters.

BXA ISSUING LICENSES FOR IMMEDIATE SALES OF AGRICULTURAL PRODUCTS TO CUBA- The Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., is issuing licenses, some valid for more than two years, some valued at more than US$5 million, to United States-based companies for the immediate exports of agricultural commodities/products to Republic of Cuba-based entities (both Republic of Cuba government-operated entities and non-Republic of Cuba government-operated entities), although regulations governing H.R. 4461 (which includes the Trade Sanctions Reform and Export Enhancement Act of 2000) signed into law on 28 October 2000 by The Honorable William J. Clinton, President of the United States of America, have yet to be published.  The license applications do not need be accompanied by a agreement from a Republic of Cuba-based entity to purchase any agricultural commodities/products from the United States-based company applying for the license from the BXA.  The BXA licenses have also authorized multiple visits to the Republic of Cuba by representatives of the United States-based company receiving the license from the BXA in conjunction with applicable agricultural commodities sales activities .

The Trade Sanctions Reform and Export Enhancement Act of 2000 authorizes the continuation (and partial expansion) of healthcare product exports (withcertain restrictions) from the United States to the Republic of Cuba andauthorizes agricultural commodity products exports from the United Statesto Republic of Cuba government-operated entities within the Republic of Cubaand to non-Republic of Cuba government-operated entities within the Republicof Cuba.

The Clinton Administration has determined that BXA regulations in effectsince 1999 governing the export of agricultural products from the UnitedStates to non-Republic of Cuba government-operated entities located withinRepublic of Cuba, along with provisions of the Trade Sanctions Reform and Export Enhancement Act of 2000, provide the basis for the issuance of immediate licenses to United States-basedcompanies for exports of agricultural products to Republic of Cuba-basedentities (including Republic of Cuba government-operated entities).  Theregulations governing the Trade Sanctions Reform and Export Enhancement Act of 2000 are now not expected to be published until February 2001, although theregulations were initially expected to be published by the end of December 2000.  Provisions of the Trade Sanctions Reform and Export Enhancement Act of 2000 were scheduled to take effect 120 days after the date of enactment of the legislation, 28 February 2000.

Conditions of some BXA licenses already issued have included 1) that food items “be made available to the Cuban people for consumption” 2) that food items not be “ re-exported without prior authorization of the U.S. Government” and 3) that Banks originating payment orders in connection with exports to Cubaunder Commerce Department license are required to verify the existence ofthe license.

The Office of Foreign Assets Control (OFAC) of the United States Departmentof the Treasury in Washington, D.C., is issuing licenses, some for validfor more than one year, to United States-based companies authorizing traveltransactions for company representatives (paid employees, paid consultants,paid agents) for multiple visits to the Republic of Cuba in connection withthe sales of agricultural commodities, including marketing, sales negotiation,accompanied delivery, and servicing of agricultural commodities .  The OFACis using 31 CFR 515.560(c), CFR 515.533, CFR 515.533(e), and CFR 515.333as authority for the issuance of the licenses.

2001 TRADE SHOW SCHEDULE; SOME UNITED STATES COMPANIES PERMITTED TO ATTEND- Republic of Cuba government-operated Bureau de Convenciones reported that the following international trade shows are scheduled for January 2001 through December 2001.  Most of the trade shows are held at the Republic of Cuba government-operated PABEXPO exhibition center in the city of Havana.  United States-based companies have been permitted, under licenses from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., and the Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., to participate in certain trade shows and certain exhibitions within the Republic of Cuba for the purpose of promoting exports of United States produced products authorized by the OFAC and the BXA to be sold to entities within the Republic of Cuba.

On 11 October 1999 and on 11 February 2000, Westport, Connecticut-based PWNExhibicon International L.L.C., applied to the OFAC for a license to hold a U.S. Food & Agribusiness Exhibition in the Republic of Cuba.  Bothlicense applications were denied by the OFAC.  However, On 31 May 2000, PWNExhibicon International L.L.C. received a license from the OFAC to exploreand make arrangements for a U.S. Food & Agribusiness Exhibition in theRepublic of Cuba.  PWN Exhibicon L.L.C. previously organized the OFAC-licensedU.S. Healthcare Exhibition held in the city of Havana, Republic of Cuba,from 25 January 2000 to 29 January 2000, which included more than 300 representatives of 97 United States-based companies.  PWN Exhibicon International L.L.C. has received a license from the OFAC to organize a second U.S. Healthcare Exhibition in Havana in 2002.

United States-produced products authorized by the OFAC and the BXA to be exported to the Republic of Cuba include agricultural products, artwork, farm supplies, food products, informational materials (books, magazines, newspapers, music, television programs, motion pictures), medical equipment, medical instruments, medical supplies, medicated products, medicines, and pharmaceuticals.  United States-based companies with Travel Service Provider (TSP) licenses from the OFAC and United States-based companies with Carrier Service Provider (CSP) licenses from the OFAC have also been authorized to visit the Republic of Cuba in conjunction with certain exhibitions and certain trade shows.

Trade Show	Date In 2001
Arts and Crafts (Havana)	28 January to 4 February
Books And Publishing (Havana)	2 February to 10 February
Livestock And Related Products (Havana)	3 February to 11 February
Sea-Based Recreation And Commercial Activities (Cienfeugos)	3 February to 6 February
Construction Technology And Equipment (Havana)	3 February to 7 February
Beverages And Related Products (Varadero)	16 February to 19 February
Public Health Technology And Products (Havana)	23 February to 27 February
Tourism And Related Services (Havana)	7 May to 11 May
Musical Instruments, Accessories, Audio Equipment, And Recording (Havana)	16 May to 20 May
Hotel, Restaurant, Bar, And Nightclub Technologies And Supplies (Havana)	30 May to 3 June
Sugar Industry Technology, Machinery, And Supplies (Havana)	13 June to 17 June
Waterworks (Havana)	13 June to 17 June
Eastern Cuba And Caribbean General Trade Fair (Santiago de Cuba)	17 June to 22 June
Furniture And Interior Decoration Supplies And Maintenance (Havana)	4 July to 8 July
Metal Technology, Machinery, And Supplies (Havana)	18 July to 22 July
Consumer Products (Varadero)	18 September to 22 September
Transportation Equipment, Parts, And Services (Havana)	19 September to 23 September
Annual International Trade Fair For All Products (Havana)	28 October to 4 November
Ecological Tourism (Havana)	5 November to 9 November
Packaging (Havana)	27 November to 30 November
Beauty And Fashion (Havana)	5 December to 9 December
Tobacco (Pinar del Rio)	13 December to 16 December

THE STANLEY WORKS TOOLS ARE AVAILABLE IN CUBA- Products manufactured by New Britain, Connecticut-based The Stanley Works (2000 revenues exceeded US$2 billion) are being sold within the Republic of Cuba by Republic of Cuba government-operated Comercializadora ITH S.A. (International Trade House S.A.), a subsidiary of the Ministry of Tourism of the Republic of Cuba.  The available products, which are sold for U.S. Dollars, include hammers, wrenches, saws, drills, and other products.  The products are not being sold in Republic of Cuba U.S. Dollar retail stores for sale to Republic of Cuba nationals; the products are being sold to Republic of Cuba government-operated companies/entities and non-Republic of Cuba government-operated companies/entities.  The Stanley Works manufactures and markets tools, door systems, and related hardware for home, commercial and industrial use.  The Stanley Works reports that the products being sold within the Republic of Cuba may 1) be exported to the Republic of Cuba by a non-United States-based distributor or 2) be exported to the Republic of Cuba by a non-United States-based manufacturer of products for The Stanley Works which has an over-production or products that did not meet quality controls or 3) be counterfeit.

PC WORLD MAGAZINE AND GIGA COMPUTER MAGAZINE IN CUBA NEGOTIATING AGREEMENT- Giga, a computer magazine published every two months by Republic of Cuba government-operated Copextel S.A. (a subsidiary of the Ministry of Information and Communications of the Republic of Cuba), reports that the publication is negotiating an agreement with San Francisco, California-based PC World magazine (a subsidiary of Boston, Massachusetts-based IDG Communications, Inc.) to use information published by PC World magazine (monthly circulation 1.2 million).  IDG Communications, Inc. (2000 revenues exceeded US$3.1 billion) publishes more than 300 magazines (including Computerworld, Industry Standard, and Macworld) in 85 countries; produces 168 globally branded conferences and exhibitions; and publishes more than 4,000 book titles in 37 languages in more than 90 countries.  Under the terms of a tentative agreement (awaiting approval by the government of the Republic of Cuba), Giga magazine would pay PC World magazine US$150.00 per month to 1) use the PC World magazine logo on the front cover of Giga magazine and 2) have authorization to reprint information contained in PC World magazine.  Giga magazine is printed by San Jose, Costa Rica-based Trejos Hermanos Sucesores S.A.  The Spanish language edition of PC World magazine for distribution throughout Central America is printed by Trejos Hermanos Sucesores S.A.  Giga magazine expects to increase the circulation of the magazine from 6,000 copies in 2000 to 12,000 copies in 2001.  Giga magazine is distributed throughout the Republic of Cuba at the cost of US$6.50 per issue for non-Republic of Cuba nationals and at a cost of 6.5 Pesos per issue for Republic of Cuba nationals.  Giga magazine reports receiving 24,000 hits per week at http://www.islande.cu/giga/online .

In 1997, the Office of Foreign Assets Control (OFAC) of the United StatesDepartment of the Treasury in Washington, D.C., confirmed that UnitedStates-based companies may provide camera-ready artwork to Republic of Cuba-basedpublications and make payments to Republic of Cuba-based publications forthe placement of advertisements in Republic of Cuba-based publications.  This 20 June 1997 response to the U.S.-Cuba Trade and Economic Councilwas based upon 14 May 1997 correspondence written on behalf of a member ofthe organization who was interested in placing an advertisement in the inauguralEnglish-language monthly edition of Negocios en Cuba, a business publicationpublished by the Republic of Cuba government-controlled Prensa Latina NewsAgency.  The OFAC also permits United States companies to produce, deliver,and receive payment for, completed commercials and programming to be airedon Republic of Cuba-based television stations and Republic of Cuba-basedradio stations, and to purchase Republic of Cuba-produced programming foruse in the United States and other countries.

Representatives of Giga magazine report that 1) thus far United States-based companies have not inquired about placing an advertisement in the magazine 2) the magazine has not been authorized by Copextel S.A. to publish advertisements by United States-based companies and 3) the magazine is interested in discussing the possibility of future advertisements by United States-based companies.  However, Giga has included articles about products manufactured by United States-based companies, including: Redmond, Washington-based Microsoft Corporation (2000 revenues exceeded US$22 billion); Armonk, New York-based International Business Machines Corporation (2000 revenues exceeded US$81 billion); Redwood Shores, California-based Oracle Corporation (2000 revenues exceeded US$10 billion); Cupertino, California-based Apple Computer, Inc. (2000 revenues exceeded US$10 billion); Round Rock, Texas-based Dell Computer Corporation (2000 revenues exceeded US$25 billion); and Palo Alto, California-based Hewlett-Packard Company (2000 revenues exceeded US$42 billion) .

Giga Magazine Advertising Rates (Range Of Frequency Two Issues To Six Issues)

 

Inside Cover	US$1,650.00 To US$1,545.00
Half Page Inside Cover	US$890.00 To US$785.00
Inside Back Cover	US$700.00 To US$595.00
Half Page Inside Back Cover	US$1,500.00 To US$1,395.00
One Page	US$1,355.00 To US$1,245.00
Half Page	US$670.00 To US$623.00
- Page	US$900.00 To US$830.00
- Page	US$445.00 To US$415.00

EXECUTIVE OF MORGAN STANLEY DEAN WITTER & CO. EXPECTS CHANGE IN CUBA POLICY- Mr. Byron R. Wien, Managing Director- Research, for New York City, New York-based Morgan Stanley Dean Witter & Co. (2000 assets exceeded US$400 billion), reported in his annual listing of ten “ surprises” for 2001 that The Honorable George W. Bush, President of the United States of America, will remove restrictions upon commerce and travel between the United States and the Republic of Cuba, providing economic value to the State of Florida.

GRANDPA MUNSTER ATTENDS HAVANA FILM FESTIVAL- The actor/restauranteur/politican, Mr. Al Lewis, who starred in the 1960’s television series, The Munsters and the 1960's television series, Car 54 Where Are You? attended the 22nd annual Havana Film Festival, held in the city of Havana, Republic of Cuba, from 5 December 2000 to 15 December 2000.  Mr. Lewis has reportedly visited the Republic of Cuba on many occasions, although uncertain as to whether he was under the auspice of a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C.