Publications

On October 14, 2016, the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the Department of Commerce’s Bureau of Industry and Security (“BIS”) announced groundbreaking amendments to the Cuban Assets Control Regulations (“CACR”) and the Export Administration Regulations (“EAR”) that open the doors for commercial activity with and concerning Cuba.  Of particular note is the authorization of so-called “contingent contracts” relating to activities that remain prohibited under the CACR.  This development – reflecting the Obama Administration’s ongoing efforts to normalize relations with Cuba – means that U.S. businesses may now start planning for entering the Cuban market and go as far as to enter into binding contracts concerning Cuba including, for example, memoranda of understanding and tender bids, so long as they are made contingent on the underlying conduct ultimately being authorized by the U.S. government.  The amendments also bolster Cuban trade and commercial opportunities in healthcare, infrastructure, and civil aviation that were previously closed to persons subject to U.S. jurisdiction.  That being said, the Cuba embargo does remain in place and most transactions between the United States, or persons subject to U.S. jurisdiction, and Cuba continue to be prohibited.  OFAC has clearly stated that it will continue to enforce the provisions of the CACR.  The amendments will be published in the Federal Register on October 17, 2016, and will take effect on that date.