Coffee & Charcoal Have Been Imported From Cuba; U.S. Companies Want More. Agricultural Commodities/Food Products/Healthcare Products Have Been Exported To Cuba; U.S. Companies Want More.

31 August 2021: “Economic blockade means #Cuba can’t sell any product in the US or export any product to any company in any country that exports to the US.  It can’t import any product from the US except food under very regulated conditions or any product from any country with up to 10% US origin.” 

The above statement published using the Twitter platform from a senior official of the Ministry of Foreign Affairs of the Republic of Cuba contains inaccuracies.  The statement does, however, reflect a perception accepted (often through unfortunate reinforcement) by many in the United States, Republic of Cuba, and in other countries.   

For decades United States companies and organizations have made efforts, particularly in the Republic of Cuba, to dispel the mythology abounding as to what is and is not authorized- by statute, by regulation, and by policy.  The goal of United States companies has been to engage import and export opportunities where available- and work to convince the government of the Republic of Cuba to permit these opportunities.   

Accurate to convey that the government of the Republic of Cuba remains traumatized by a political version of Post-traumatic Stress Disorder (PTSD) from transformative regulatory and policy decisions by the Obama-Biden Administration (2009-2017) through the negative impact of the regulatory and policy decisions by the Trump-Pence Administration (2017-2021) and thus far lack of positive changes by the Biden-Harris Administration (2021- ). 

The first sentence: “Economic blockade means #Cuba can’t sell any product in the US or export any product to any company in any country that exports to the US.” 

Coffee from the Republic of Cuba is available throughout the United States through an agreement signed in 2016 between New York, New York-based Nespresso USA Inc., a subsidiary of Lausanne, Switzerland-based Nestle Nespresso S.A. (2019 revenue approximately US$94 billion); Arlington, Virginia-based TechnoServe; and Republic of Cuba government-operated Cubaexport, under the auspice of the Ministry of Foreign Trade of the Republic of Cuba. 

From Nespresso: “The green coffee sourced for Cafecito de Cuba is 100% pure Arabica, grown by smallholder farmers in the provinces of Granma and Santiago de Cuba in the eastern part of Cuba.  Nespresso coffee experts in Switzerland then used a split roasting technique to enhance the potential of the beans and highlight their authenticity. One part of the beans was roasted for a shorter time to a lighter colour to bring out the coffee’s unique flavours and aromas. The second part was roasted longer to a much darker colour to create a strong body with a dense, velvety texture and intense rich flavours.”  LINK: https://nestle-nespresso.com/news/Nespresso-brings-Cuban-coffee-back-to-US 

United States-based companies have approached Cubaexport to seek authorization to import coffee directly from the Republic of Cuba to the United States.  Those entreaties were rejected. 

Charcoal from the Republic of Cuba has been imported directly to the United States.  The first company, Hialeah, Florida-based Fogo Premium Lump Charcoal purchased four (4) 20ft containers with the first delivered in January 2017 and the second in July 2018.  The second company Foley, Alabama-based GulfWise Commerce LLC, affiliated with Foley, Alabama-based Woerner Companies reported delivery in May 2019 to Port Everglades, Florida, of two (2) forty-foot containers.  Neither company reported no transactional issues with the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Bureau of Industry and Security (BIS) of the United States Department of Commerce, or Office of Legal Adviser (OLA) at the United States Department of State. 

https://www.cubatrade.org/blog/2017/1/5/charcoal-joins-coal-to-become-second-commodity-exported-from-cuba-to-the-united-states?rq=Fogo  

https://www.cubatrade.org/blog/2019/6/9/yt69n8siij03ylzethfvxup85o1fwg?rq=charcoal 

What goods and services from the Republic of Cuba are eligible for importation to the United States: https://static1.squarespace.com/static/563a4585e4b00d0211e8dd7e/t/571a837ef85082f2b527976a/1461355390324/WhatMayBeImportedFromCubaEntrepreneurs.pdf 

The second sentence: “It can’t import any product from the US except food under very regulated conditions…” 

The Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 re-authorized the direct commercial (on a cash basis only) export of food products (including branded food products) and agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose.  Since December 2001 when the first purchases were delivered using provisions of the TSREEA, more than US$6,475,001,787.00 in agricultural commodities and food products have been delivered directly from the United States to the Republic of Cuba. 

The Cuban Democracy Act (CDA) of 1992 re-authorized the direct commercial (payment terms determined by seller and buyer) export of medical equipment, medical instruments, medical supplies, and pharmaceuticals from the United States to the Republic of Cuba.  There are end-user reporting requirements to ensure the exports.  Since 2003, more than US$26,950,248.00 in products have been delivered directly from the United States to the Republic of Cuba. 

The second sentence: “…or any product from any country with up to 10% US origin.” 

This statement is partially accurate in that the decision in 2019 by the Trump-Pence Administration (2017-2021) is not absent of exceptions, although the stated intention and practical application of the change to the regulation is to provide for few, if any, exceptions. 

Bureau of Industry and Security (BIS) of the United States Department of Commerce: “Pursuant to part 734 of the EAR, foreign-made items located abroad are subject to the EAR under specified circumstances, including when they incorporate, or are bundled or commingled with, specified levels of controlled U.S.-origin commodities, software, or technology. Paragraph (a) of § 734.4 identifies items for which there is no de minimis level, and thus are subject to the EAR if they contain any controlled U.S.-origin content, and paragraph (b) identifies special requirements for certain encryption items. When paragraphs (a) and (b) of § 734.4 are not applicable, either the 10-percent de minimis rule described in paragraph (c) or the 25-percent de minimis rule described in paragraph (d) applies, depending upon the destination of the items.  This rule amends § 734.4(d) of the EAR to make Cuba subject to the general 10-percent de minimis rule in § 734.4(c). Now, a BIS license or an applicable license exception specified in § 746.2(a)(1) of the EAR is required for the reexport to Cuba of foreign-made items that contain greater than 10 percent of U.S.-origin content or, when § 734.4(a) applies, contain any U.S.-origin content. License applications for such items are subject to a general policy of denial, unless eligible for another licensing policy described in § 746.2(b) of the EAR. Instead of referencing Cuba by name in § 734.4, this rule makes Cuba subject to the general 10-percent de minimis rule by referencing Country Group E:2. BIS is making this change to de minimis because the Cuban government could generate revenue or otherwise benefit from the receipt of items containing greater than 10 percent of U.S.-origin content.” 

LINK: https://www.federalregister.gov/documents/2019/10/21/2019-22876/restricting-additional-exports-and-reexports-to-cuba