|
(A)
Execute and implement contracts within the fields of agricultural
products, air charter services, artwork, communications, cultural
events, entertainment, exhibitions, farm supplies, food sales,
informational materials, medical equipment, medical instruments, medical
supplies, medicated products, medicines, money transfer services,
package delivery services, pharmaceuticals, telecommunications, and
travel services |
|
(B)
Visit the Republic of Cuba to identify commercial opportunities within
the fields of agricultural products, air charter services, artwork,
communications, cultural events, entertainment, exhibitions, farm
supplies, food sales, informational materials, medical equipment,
medical instruments, medical supplies, medicated products, medicines,
money transfer services, package delivery services, pharmaceuticals,
telecommunications, travel services; and for intellectual property
matters and for legal matters. |
|
(C)
Register trademarks and patents. |
|
(D)
Provide camera-ready artwork for advertising on television, in
newspapers and magazines. |
|
(E)
Execute non-binding letters of intent. |
|
(F) Provide
funding to entrepreneurs. |
|
(G) Make
donations of products for humanitarian purposes. |
|
(H) Organize
and participate in trade shows. |
|
(I) Have
executives lecture at educational institutions. |
|
(J) Authorize
consumer credit cards to be valid for use. |
|
(K) Have
indirect non-controlling investments in the Republic of Cuba.
On 4 March 1994 the Office of Foreign Assets Control (OFAC) of
the United States Department of the Treasury in Washington, D.C., issued
an opinion to Mr. John S. Kavulich II, which stated that a U.S. business
or individual subject to U.S. law may make a secondary market investment
in a third-country business which has commercial dealings within the
Republic of Cuba provided that the investment does not result in
control-in-fact of the third-country business by the U.S. investor and
the third-country company does not derive a majority of its revenues
from business activity within the Republic of Cuba. Secondary market investment that falls short of a
controlling interest in such a business is not prohibited. |
United States-Republic of Cuba Commercial Relations
-- 1980 to Present
Between
1980 and the end of 1992, for example, the value of United States-owned
foreign subsidiaries' trade, licensed by the Office of Foreign Assets Control
(OFAC) of the United States Department of the Treasury and by the Bureau of
Export Administration (BXA) of the United States Department of Commerce, with
enterprises within the Republic of Cuba was US$4.563 billion.
Of
this total trade, US$2.637 billion was the value of subsidiaries' exports to
the Republic of Cuba permitted by the licenses and US$1.926 billion was the
value of subsidiaries' imports from the Republic of Cuba permitted by the
licenses. There were 2,938
licenses issued by the OFAC and by the BXA to more than one hundred United
States-based companies businesses (see attached listing) between 1980 and the
end of 1992. There were few
license applications rejected by the OFAC.
The
implementation of the Cuban Democracy Act in October of 1992 eliminated (bulk
food commodities) the continuation of most United States-owned foreign
subsidiaries' trade with enterprises within the Republic of Cuba, but at the
same time provided additional licensed and non-licensed opportunities for the
artwork, communications, entertainment, informational materials, medical
equipment, medical instruments, medical supplies, medicated products, medical,
pharmaceutical, publishing, and telecommunications industries.
Year
|
Estimated
Number Of United States Business Representatives Visiting The Republic
Of Cuba |
|
2001 |
3,700 |
|
2000 |
3,400 |
|
1999 |
2,800 |
|
1998 |
2,500 |
|
1997 |
2,000 |
|
1996 |
1,500 |
|
1995 |
1,300 |
|
1994 |
500 |
Executives
of AOL Time Warner and other companies have traveled to the Republic of Cuba
to discuss opportunities for the export and import of music, films, and
publications. Johnson &
Johnson and other companies have received licenses from the BXA to export
healthcare products to Republic of Cuba government-operated companies.
AT&T, LDDS/Metromedia, MCI, Sprint, AT&T de Puerto Rico, Wil-Tel,
and WorldCom each currently provide long distance telephone and data services
between the United States and the Republic of Cuba.
The number of United States-based companies receiving Carrier Service Provider (CSP) licenses and Travel Service Provider (TSP) licenses from the OFAC increased during the period 7 September 2000 through 13 April 2001. The number of United States-based companies receiving and Remittance Forwarder (RF) licenses from the OFAC has decreased during the period 7 September 2001 through 13 April 2001. A total of 164 United States-based companies currently have a combined 273 licenses (TSP, CSP, and/or RF) issued by the OFAC.
|
Period |
TSP Licenses |
CSP
Licenses |
RF Licenses |
Total
Licenses |
|
13
April 2001 |
149 |
28 |
96 |
273 |
|
7
September 2000 |
137 |
27 |
99 |
264 |
|
12
August 1999 |
103 |
19 |
92 |
214 |
Location Of OFAC Licensees As Of 13 April
2001
|
|||
|
State |
TSP
Licenses |
CSP
Licenses |
RF
Licenses |
|
California |
21 |
1 |
12 |
|
Colorado |
|
|
1 |
|
Florida |
99 |
21 |
66 |
|
Georgia |
|
1 |
|
|
Illinois |
2 |
1 |
1 |
|
Louisiana |
3 |
1 |
2 |
|
Massachusetts |
1 |
|
|
|
Minnesota |
|
|
1 |
|
Nevada |
1 |
|
|
|
New
Jersey |
9 |
1 |
7 |
|
New
York |
3 |
|
2 |
|
Puerto
Rico |
3 |
|
3 |
|
Tennessee |
1 |
|
|
|
Texas |
1 |
1 |
|
|
Virginia |
1 |
|
|
|
Washington |
1 |
|
|
|
Washington,
D.C. |
3 |
1 |
1 |
Elk
Grove Township, Illinois-based United Airlines, Inc. (2001 revenues
exceeded US$17 billion), Dallas/Fort Worth Airport, Texas-based American
Airlines, Inc. (2001 revenues exceeded US$19 billion); Atlanta,
Georgia-based Delta Air Lines, Inc. (2001 revenues exceeded US$14
billion); and Dania Beach, Florida-based Gulfstream International Airlines
(2001 revenues exceeded US$80 million), within which Houston, Texas-based-Continental
Airlines, Inc. (2001 revenues exceeded US$7 billion) has a 28% interest,
each have CSP licenses from the OFAC which authorize the transportation of
passengers and cargo between the United States and the Republic of Cuba.
United Airlines also has a TSP license from the OFAC.
RF licenses are held by Englewood, Colorado-based Western Union
Financial Services, Inc. (a subsidiary of Atlanta, Georgia-based First
Data Corporation, 2001 revenues exceeded US$5 billion), and Minneapolis,
Minnesota-based MoneyGram Payment Services, Inc. (a subsidiary of
Phoenix, Arizona-based Viad Corp, 2001 revenues exceeded US$2 billion).
|
Only Gulfstream International
Airlines (which has a CSP license and a TSP license) has chosen to
operate regularly scheduled charter flights between the United States
and the Republic of Cuba using its own aircraft.
United Airlines and American Airlines have chartered their
aircraft to CSP licensees for use on regularly scheduled charter flights
between the United States and the Republic of Cuba; and Delta Air Lines
has used its aircraft to transport a group from the United States to the
Republic of Cuba. Gulfstream
International Airlines has a code-share agreement with St. Paul,
Minnesota-based Northwest Airlines Corporation (2000 revenues
exceeded US$10 billion). Gulfstream
International Airlines has a connection agreement and operates the TWA
Connection from San Juan, Puerto Rico, with St. Louis,
Missouri-based Trans World Airlines, Inc. (2000 revenues exceed US$3
billion), a subsidiary of American Airlines.
Gulfstream International Airlines has a code-share agreement with
Panama City, Panama-based COPA airlines.
|
|
Since 1962, Delta Air Lines,
Continental Airlines, and United Airlines have had route authorities
from the following cities: Delta- Havana to Houston, Los Angeles,
New Orleans, San Francisco, and San Juan; Continental- Havana to
Fort Lauderdale, West Palm Beach, United- Havana to Miami, Key
West, Baltimore, Boston, Dallas, Houston, Los Angeles, New Orleans, New
York, Newark, Philadelphia, San Francisco, San Juan, St. Croix, St.
Thomas, and Washington, D.C.; and Camaguay to Miami, Baltimore, Boston,
Dallas, Houston, Los Angeles, New Orleans, New York, Newark,
Philadelphia, San Francisco, San Juan, St. Croix, St. Thomas, and
Washington, D.C. |
Year
|
Travelers
(not including individuals of Cuban descent visiting relatives) Visiting
(charter flights and through third countries) Reported By The National
Statistics Office (NTO) of the Republic of Cuba |
Authorized
Travelers Using Charter Flights Reported By The OFAC (including
individuals of Cuban descent and individuals not of Cuban descent) |
|
2001 |
|
89,164 (preliminary reported by TSP’s) |
|
2000 |
76,898 |
“more than 150,000”* |
|
1999 |
62,345 |
82,000** |
|
1998 |
46,778 |
55,975 |
|
1997 |
34,956 |
50,812 |
|
1996 |
27,113 |
Not Reported |
|
1995 |
20,672 |
Not Reported |
|
1994 |
17,937 |
Not Reported |
|
1993 |
14,715 |
Not Reported |
|
1992 |
10,050 |
Not Reported |
|
1991 |
11,233 |
Not Reported |
|
1990 |
7,375 |
Not Reported |
|
1989 |
12,908 |
Not Reported |
|
1988 |
10,195 |
Not Reported |
|
1987 |
10,201 |
Not Reported |
|
1986 |
15,445 |
Not Reported |
|
1985 |
5,936 |
Not Reported |
|
*Travelers Using General OFAC Licences And Specific OFAC Licenses As
Reported By TSP’s And CSP’s. |
||
|
**The OFAC reported that 82,000 individuals subject to United States law
traveled from the United States to the Republic of Cuba in 1999 using
the regularly-scheduled direct charter flights operating from Miami
International Airport and, during the month of December 1999, from John
F. Kennedy International Airport in New York City, and general aviation
charter flights from other cities. |
||
In March 2000, Mr. Eduardo Bencomo, President of
Republic of Cuba government-operated Corporacion Cimex S.A., the largest
Republic of Cuba government-operated company earning revenues in U.S. Dollars,
reported that 124,000 individuals of Cuban descent who are subject to United
States law visited the Republic of Cuba in 1999, primarily using the travel
services of Republic of Cuba government-operated Havanatur, a subsidiary of
Corporacion Cimex S.A. Since
1994, the number of individuals subject to United States law authorized by a
general license (no specific documentation from the OFAC is required) or
specific license from the OFAC to travel to the Republic of Cuba has increased
on average 9% to 11%. Since 1994,
the number of individuals subject to United States law traveling to the
Republic of Cuba, but not authorized by the OFAC to do so, has increased on
average 19% to 21%. Approximately
22,000 individuals subject to United States law traveled to the Republic of
Cuba in 2000 without authorization from the OFAC.
Approximately 92% of individuals subject to United States law visiting
the Republic of Cuba from 1994 through 2000 were of Cuban descent whose
specific purpose was to visit immediate family members for a self-defined “humanitarian
purpose” or under the auspice of a specific license issued by the OFAC.
Individuals subject to United States law of Cuban descent who have
immediate family members residing within the Republic of Cuba are permitted
one visit under a general license from the OFAC every twelve months for a
self-defined “humanitarian purpose.”
Approximately 8% of individuals subject to United States law traveling
to the Republic of Cuba since 1994 under a general license from the OFAC or
specific license from the OFAC were business representatives, journalists,
academicians, cultural groups, students, athletes, and humanitarian groups
amongst an expanding number of categories.
Since January 1999, with the expansion of the “people-to-people”
program regulated by the OFAC, a) the annual rate of
increase for authorized travelers has increased b) the annual rate of
increase for unauthorized travelers has decreased as more unauthorized
travelers determine that they are eligible for a license from the OFAC and c)
the ratio of all travelers visiting the Republic of Cuba has shifted, with the
percentage of authorized travelers visiting the Republic of Cuba who are not
of Cuban descent increasing from approximately 8% to approximately 17%.
U.S. Congress
Hearings
Representatives
of the U.S. business community appearing and/or providing statements to the 17
March 1994 joint hearing before the Subcommittee on Select Revenue Measures
and the Subcommittee on Trade of the Committee on Ways and Means of the U.S.
House of Representatives: AT&T; Carlson Companies; LDDS/Metromedia; RKO
Pictures; SH&E; and United Technologies Corporation.
Representatives
of the U.S. business community appearing at and/or providing statements to the
19 May 1994 hearing before the Subcommittee on Foreign Agriculture and Hunger
of the Committee
Representatives
of the U.S. business community appearing at and/or providing statements to the
30 June 1995 hearing before the Subcommittee on Trade of the Committee on Ways
and Means of the U.S. House of Representatives: National Association of Sugar
Mill Owners of Cuba; U.S.-Cuba Trade and Economic Council; and USA Rice.
Representatives
of the U.S. business community appearing at the 23 October 1997 hearing and/or
providing statements regarding the “Use and Effect of Unilateral Trade
Sanctions” before the Subcommittee on Trade of the Committee on Ways and
Means of the U.S. House of Representatives: USA Engage; The Boeing Company;
National Association of Manufacturers; National Foreign Trade Council;
American Farm Bureau Federation; European-American Business Council; U.S.A.
Rice Federation; and U.S.-Cuba Trade and Economic Council.
Representatives of the U.S. business community appearing at the 7 May 1998 hearing and/or providing statements for the hearing before the Subcommittee on Trade of the Committee on Wa