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Starting Friday (TOMORROW) U.S. Will Ease Restrictions on Travel to Cuba

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http://www.nytimes.com/2015/01/16/world/americas/us-eases-decades-old-rules-on-travel-to-cuba.html?hp&action=click&pgtype=Homepage&module=first-column-region&region=top-news&WT.nav=top-news&_r=0

WASHINGTON — The United States government on Friday will begin making it easier for Americans to travel to Cuba than it has been for more than half a century, opening the door to a new era of contact between neighbors that have been estranged longer than most of their citizens have been alive.

The Obama administration announced on Thursday a set of new regulations to take effect on Friday easing decades-old restrictions on travel, business and remittances, putting into reality some of the changes promised by President Obama last month when he announced plans to resume normal diplomatic relations with Havana.

Under the new regulations, Americans will now be allowed to travel to Cuba for any of a dozen specific reasons without first obtaining a special license from the government. Airlines and travel agents will be allowed to provide service to Cuba without a specific license. And travelers will be permitted to use credit cards and spend money while in the country and bring back up to $400 in souvenirs, including up to $100 in alcohol or tobacco.

The new regulations will also make it easier for American telecommunications providers and financial institutions to do business with Cuba. Americans will be allowed to send more money to Cubans, up to $2,000 every three months instead of the $500 currently permitted.

While formally the new rules do not allow basic tourism, they are written in such a way that experts said they may have that effect. “This is basically the end of the travel ban once they work out the kinks,” said Julia E. Sweig, a longtime scholar and author on Cuba.

“At first glance the new regulations look to allow most Americans to travel to Cuba without having to ask for permission in advance and by booking air travel directly rather than through authorized groups and agencies,” she said. “Next move will have to be a civil aviation agreement to allow commercial, not just charter, air travel.”

Administration officials said the new approach would benefit Cubans as well.

“These changes will have a direct impact in further engaging and empowering the Cuban people, promoting positive change for Cuba’s citizens,” Treasury Secretary Jacob J. Lew, whose department oversees sanctions policy, said in a statement.

“Cuba has real potential for economic growth,” he added, “and by increasing travel, commerce, communications, and private business development between the United States and Cuba, the United States can help the Cuban people determine their own future.”

The administration moved to ease the restrictions after obtaining confirmation that 53 incarcerated people it deemed political prisoners had been released in accordance with the agreement Mr. Obama and President Raúl Castro of Cuba struck last month. Cuba has also released an American held prisoner for years, Alan P. Gross, and a Cuban who had worked as a spy for the United States. Mr. Obama released three Cuban spies who had been held for years and were considered folk heroes in Havana.

The broader trade embargo first imposed by President Dwight D. Eisenhower after the Cuban revolution that brought Mr. Castro’s brother Fidel to power will remain in place unless Congress decides to lift it, as Mr. Obama has urged it to do. But the moves announced on Thursday go further than any president has gone in 50 years to facilitate travel and trade with Cuba.
Critics, led by Senator Marco Rubio, a Cuban-American Republican from Florida, have argued that Mr. Obama is playing into the hands of the Castro brothers by relaxing sanctions without obtaining any meaningful commitment to change on their part. Cuba remains one of the most repressive countries in the world, according to human rights groups and the State Department, which have cataloged the many ways freedom is restricted on the island nation.

Mr. Obama argued that the approach of the last 50 years had not worked and that it was time to try something new. The president is sending an assistant secretary of state, Roberta S. Jacobson, to Havana next week to discuss migration and other issues in the relationship as he moves toward re-establishing a full-fledged embassy with an ambassador.

Americans for years have found ways to circumvent travel restrictions to Cuba. Many simply fly to another country like Mexico first and then head to Cuba from there. According to the Cuban government, 98,000 American citizens visited Cuba in 2012, a year after Mr. Obama previously loosened the restrictions, twice as many as traveled there five years earlier. That does not include perhaps hundreds of thousands of Cuban-Americans who travel there each year but are not counted by the Havana government because they are still considered Cubans.

Under previous rules, Americans wanting to travel legally to Cuba had to justify their trips under 12 categories and then in some cases obtain a specific license from the Treasury Department to do so.

Among those categories are family visits; journalistic, religious, educational, professional and humanitarian activities; artistic or sports performances; and “support for the Cuban people.” Private firms arranged “people to people” programs to allow Americans to travel under those categories.

Under the new regulations, Americans will not need licenses to certify that they fit those categories. As a practical matter, experts say that will make it possible for many more Americans to travel without having to use such firms or satisfy government agents about the specific purpose of their visits. Moreover, travelers will be allowed to spend as much money as they want on travel-related expenses while in Cuba, which was previously limited.
 
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A few more official deets:

Major elements of the changes in the revised regulations include:

Travel – In all 12 existing categories of authorized travel, travel previously authorized by specific license will be authorized by general license, subject to appropriate conditions. This means that individuals who meet the conditions laid out in the regulations will not need to apply for a license to travel to Cuba. These categories are: family visits; official business of the U.S. government, foreign governments, and certain intergovernmental organizations; journalistic activity; professional research and professional meetings; educational activities; religious activities; public performances, clinics, workshops, athletic and other competitions, and exhibitions; support for the Cuban people; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation, or transmission of information or information materials; and certain authorized export transactions. The per diem rate previously imposed on authorized travelers will no longer apply, and there is no specific dollar limit on authorized expenses. Authorized travelers will be allowed to engage in transactions ordinarily incident to travel within Cuba, including payment of living expenses and the acquisition in Cuba of goods for personal consumption there. Additionally, travelers will now be allowed to use U.S. credit and debit cards in Cuba.

Travel and Carrier Services – Travel agents and airlines will be authorized to provide authorized travel and air carrier services without the need for a specific license from OFAC.

Insurance – U.S. insurers will be authorized to provide coverage for global health, life, or travel insurance policies for individuals ordinarily resident in a third country who travel to or within Cuba. Health, life, and travel insurance-related services will continue to be permitted for authorized U.S. travelers to Cuba.

Importation of Goods – Authorized U.S. travelers to Cuba will be allowed to import up to $400 worth of goods acquired in Cuba for personal use. This includes no more than $100 of alcohol or tobacco products.

Telecommunications – In order to better provide efficient and adequate telecommunications services between the United States and Cuba, a new OFAC general license will facilitate the establishment of commercial telecommunications facilities linking third countries and Cuba and in Cuba. The commercial export of certain items that will contribute to the ability of the Cuban people to communicate with people within Cuba, in the United States, and the rest of the world will be authorized under a new Commerce license exception (Support for the Cuban People (SCP)) without requiring a license. This will include the commercial sale of certain consumer communications devices, related software, applications, hardware, and services, and items for the establishment and update of communications-related systems. Additional services incident to internet-based communications and related to certain exportations and reexportations of communications items will also be authorized by OFAC general license.

Consumer Communications Devices – Commercial sales, as well as donations, of the export and reexport of consumer communications devices that enable the flow of information to from and among the Cuban people – such as personal computers, mobile phones, televisions, memory devices, recording devices, and consumer software – will be authorized under Commerce’s Consumer Communication Devices (CCD) license exception instead of requiring licenses.

Financial Services – Depository institutions will be permitted to open and maintain correspondent accounts at a financial institution that is a national of Cuba to facilitate the processing of authorized transactions. U.S. financial institutions will be authorized to enroll merchants and process credit and debit card transactions for travel-related and other transactions consistent with section 515.560 of the CACR. These measures will improve the speed and efficiency of authorized payments between the United States and Cuba.

Remittances – The limits on generally licensed remittances to Cuban nationals other than certain prohibited Cuban Government and Cuban Communist Party officials will be increased from $500 to $2,000 per quarter. Certain remittances to Cuban nationals for humanitarian projects, support for the Cuban people, or development of private businesses will be generally authorized without limitation. These general licenses will allow remittances for humanitarian projects in or related to Cuba that are designed to directly benefit the Cuban people; to support the Cuban people through activities of recognized human rights organizations, independent organizations designed to promote a rapid, peaceful transition to democracy, and activities of individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba; and to support the development of private businesses, including small farms. Authorized travelers will be allowed to carry with them to Cuba $10,000 in total family remittances, periodic remittances, remittances to religious organizations in Cuba, and remittances to students in Cuba pursuant to an educational license. Under an expanded general license, banking institutions, including U.S.-registered brokers or dealers in securities and U.S.-registered money transmitters, will be permitted to process authorized remittances to Cuba without having to apply for a specific license.

Third-Country Effects – U.S.-owned or -controlled entities in third countries, including banks, will be authorized to provide goods and services to an individual Cuban national located outside of Cuba, provided the transaction does not involve a commercial exportation of goods or services to or from Cuba. OFAC will generally authorize the unblocking of accounts of Cuban nationals who have permanently relocated outside of Cuba. OFAC is issuing a general license that will authorize transactions related to third-country conferences attended by Cuban nationals. In addition, a general license will authorize foreign vessels to enter the United States after engaging in certain trade with Cuba.

Small Business Growth – Certain micro-financing projects and entrepreneurial and business training, such as for private business and agricultural operations, will be authorized. Also, commercial imports of certain independent Cuban entrepreneur-produced goods and services, as determined by the State Department on a list to be published on its website, will be authorized.

“Cash in Advance” – The regulatory interpretation of “cash in advance” is being redefined from “cash before shipment” to “cash before transfer of title to, and control of,” the exported items to allow expanded financing of authorized trade with Cuba.

Supporting Diplomatic Relations and USG Official Business – The President announced the reestablishment of diplomatic relations with Cuba. To facilitate that process, OFAC is adding a general license authorizing transactions with Cuban official missions and their employees in the United States. In addition, in an effort to support important U.S. government interests, an expanded general license will authorize Cuba-related transactions by employees, grantees, and contractors of the U.S. government, foreign governments, and certain international organizations in their official capacities.
 
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Good stuff, but is it that big of a deal for cigars? I love my Nicaraguan cigars, if relationships are eased and CC's do become on the market in the US. I hope they won't take over b&m's. I can't really speak from knowledge on Cuban cigars, but in general I think tatuaje and my father have the best product. The best thing in my mind that could come from eased relations would be cigars blended from Nicaraguan and Cuban Tabacco.
Just my .02
Not aiming to thread jack or anything, the news is great in general though.
 
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Maybe someone can correct me if I am wrong, but by reading this I have a couple thoughts:
- Depending on local (Cuba local) prices, this would mean 3-6 cigars are allowed legally. YAY (sarcasm). It's a start for sure but nothing to do jumping jacks over right away.
- The importation of CC's can only come from Cuba. You can't bring them in from Canada or another countries. This still stinks for obvious reasons (a lot easier to hop the border to Canada to grab a few than fly to Cuba).

Don't get me wrong, this is a huge step in the right direction for people who would benefit from Cuban products. This community being one of them. However, there is a long way to go before we see a flood of CC's in our B&M's.
 
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Maybe someone can correct me if I am wrong, but by reading this I have a couple thoughts:
- Depending on local (Cuba local) prices, this would mean 3-6 cigars are allowed legally. YAY (sarcasm). It's a start for sure but nothing to do jumping jacks over right away.
- The importation of CC's can only come from Cuba. You can't bring them in from Canada or another countries. This still stinks for obvious reasons (a lot easier to hop the border to Canada to grab a few than fly to Cuba).

Don't get me wrong, this is a huge step in the right direction for people who would benefit from Cuban products. This community being one of them. However, there is a long way to go before we see a flood of CC's in our B&M's.
Cant wait for that day! (CC's in the B&Ms or cigar bid etc).....cheers
 

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Good stuff, but is it that big of a deal for cigars? I love my Nicaraguan cigars, if relationships are eased and CC's do become on the market in the US. I hope they won't take over b&m's. I can't really speak from knowledge on Cuban cigars, but in general I think tatuaje and my father have the best product. The best thing in my mind that could come from eased relations would be cigars blended from Nicaraguan and Cuban Tabacco.
Just my .02
Not aiming to thread jack or anything, the news is great in general though.
Nothing has changed regarding cigars except the people that go to Cuba legally can bring home a few cigars for their own consumption.
 
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i gotta get there before all the US tourism changes it. before the Hilton and Marriott take over lol
That's going to happen so fast, it will be all but unrecognizable in 2 years.
These eased restrictions may not affect bringing sticks back just yet, but going to Cuba has been a bucket list item for me. If I can swing it, I'm going. And if you see me there and I don't have a CC in my mouth, feel free to slap me. Even in the shower.
 
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That's going to happen so fast, it will be all but unrecognizable in 2 years.
These eased restrictions may not affect bringing sticks back just yet, but going to Cuba has been a bucket list item for me. If I can swing it, I'm going. And if you see me there and I don't have a CC in my mouth, feel free to slap me. Even in the shower.
haha, back hand or open hand?
 

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Prices in Cuba are generally lower already than so many developed country's..... Unless some supply and demand changes that with added tourism. And for guys thinking they can only bring back four cigars because they are 25ea.
I'm bringing back 25 custom rolled CoRo's. That I took off the band before heading to the the airport..... What customs official would be able to prove other wise.....
 
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The real supply and demand issue occurs when the embargo is lifted or speculation of the embargo being lifted drives demand. I'm sure the speculation part is starting i for one am a participant lol.
 
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Prices in Cuba are generally lower already than so many developed country's..... Unless some supply and demand changes that with added tourism. And for guys thinking they can only bring back four cigars because they are 25ea.
I'm bringing back 25 custom rolled CoRo's. That I took off the band before heading to the the airport..... What customs official would be able to prove other wise.....
^this. Plus, I'm sure customs can't argue with a receipt and hopefully my friends will go with me so I can use them as mules
 
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Here's a question: Under the new guidelines (if I am reading them right and there's no guarantee of that), there's no new provision for me to have CCs in my possession if I didn't travel to Cuba myself and purchase them there for my own consumption. But what if a friend comes back back from Cuba and (s)he has brought them in. Legally (or as best a legal thought from a bunch of non-lawyers and I promise not to take any of it as legal advice, yadda yadda yadda), can (s)he give one to me as a gift?

Not a real-world scenario, just a thought that occurred to me earlier.
 
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