In the Friday, January 16, 2015 issue of the Federal Register, the Bureau of Industry and Security published a final rule, effective immediately, implementing a new license exception known as Support for the Cuban People (SCP) which will open up a limited range of legal export sales to Cuba. License exception SCP authorizes the legal export or re-export of commercially sold or donated:
• Building materials, equipment and tools for use by the private sector to construct or renovate privately owned buildings including privately owned residences, businesses, places of worship, and buildings for private sector social or recreational use.
• Tools and equipment for private sector agricultural activity and;
• Tools, equipment supplies, and instruments for use by private sector entrepreneurs
Items eligible for license exception SCP are limited to those items that are classified as EAR99 or those items controlled on the Commerce Control List only for Anti-terrorism (AT) reasons. The new regulation announced on January 16th aimed at empowering Cuba’s emerging private sector and supporting the Cuban people also expanded the scope of license exception Consumer Communications Devices (CCD) removing the “donation” limitation thus now allowing for commercial sales of consumer communications devices such as computers, mobile phones, televisions, radios and digital cameras for use by the private sector.
This new regulation provides incredible opportunities to those companies operating in consumer communication device and construction products that are interested in expanding into the Cuban market.
For transaction specific advisory services on doing business with Cuba through use of license exceptions contact TSI Global Consulting.