ALERT: Cuba- White House Announces Changes to Cuba Travel (June 16, 2017)

June 16, 2017

Summary: As widely expected and reported, there will be changes to U.S. policy on Cuba travel.

According to the White House Fact Sheet on Cuba Policy:

The policy enhances travel restrictions to better enforce the statutory ban on United States tourism to Cuba.

Among other changes, travel for non-academic educational purposes will be limited to group travel.

The self-directed, individual travel permitted by the Obama administration will be prohibited. Cuban-Americans will be able to continue to visit their family in Cuba and send them remittances.

The Department of Treasury has provided FAQs:

1. How will OFAC implement the changes to the Cuba sanctions program announced by the President on June 16, 2017? Are the changes effective immediately?

OFAC will implement the Treasury-specific changes via amendments to its Cuban Assets

Control Regulations. The Department of Commerce will implement any necessary

changes via amendments to its Export Administration Regulations. OFAC expects to

issue its regulatory amendments in the coming months. The announced changes do not

take effect until the new regulations are issued.

2. What is individual people-to-people travel, and how does the President’s announcement impact this travel authorization?

Individual people-to-people travel is educational travel that: (i) does not involve

academic study pursuant to a degree program; and (ii) does not take place under the

auspices of an organization that is subject to U.S. jurisdiction that sponsors such

exchanges to promote people-to-people contact. The President instructed Treasury to

issue regulations that will end individual people-to-people travel. The announced

changes do not take effect until the new regulations are issued.

3. Will group people-to-people travel still be authorized?

Yes. Group people-to-people travel is educational travel not involving academic study

pursuant to a degree program that takes place under the auspices of an organization that is

subject to U.S. jurisdiction that sponsors such exchanges to promote people-to-people

contact. Travelers utilizing this travel authorization must maintain a full-time schedule of

educational exchange activities that are intended to enhance contact with the Cuban

people, support civil society in Cuba, or promote the Cuban people’s independence from

Cuban authorities, and that will result in meaningful interaction between the traveler and

individuals in Cuba. An employee, consultant, or agent of the group must accompany

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each group to ensure that each traveler maintains a full-time schedule of educational

exchange activities.

4. How do the changes announced by the President on June 16, 2017 affect individual people-to-people travelers who have already begun making their travel arrangements (such as purchasing flights, hotels, or rental cars)?

The announced changes do not take effect until OFAC issues new regulations. Provided

that the traveler has already completed at least one travel-related transaction (such as

purchasing a flight or reserving accommodation) prior to the President’s announcement

on June 16, 2017, all additional travel-related transactions for that trip, whether the trip

occurs before or after OFAC’s new regulations are issued, would also be authorized,

provided the travel-related transactions are consistent with OFAC’s regulations as of June

16, 2017.

5. How do the changes announced by the President on June 16, 2017 affect other authorized travelers to Cuba whose travel arrangements may include direct transactions with entities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy?

The announced changes do not take effect until OFAC issues new regulations.

Consistent with the Administration’s interest in not negatively impacting Americans for

arranging lawful travel to Cuba, any travel-related arrangements that include direct

transactions with entities related to the Cuban military, intelligence, or security services

that may be implicated by the new Cuba policy will be permitted provided that those

travel arrangements were initiated prior to the issuance of the forthcoming regulations.

6. How do the changes announced by the President on June 16, 2017 affect companies subject to U.S. jurisdiction that are already engaged in the Cuban market and that may undertake direct transactions with entities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy?

The announced changes do not take effect until OFAC issues new regulations.

Consistent with the Administration’s interest in not negatively impacting American

businesses for engaging in lawful commercial opportunities, any Cuba-related

commercial engagement that includes direct transactions with entities related to the

Cuban military, intelligence, or security services that may be implicated by the new Cuba

policy will be permitted provided that those commercial engagements were in place prior

to the issuance of the forthcoming regulations.

7. Does the new policy affect how persons subject to U.S jurisdiction may purchase airline tickets for authorized travel to Cuba?

No. The new policy will not change how persons subject to U.S. jurisdiction traveling to

Cuba pursuant to the 12 categories of authorized travel may purchase their airline tickets.

8. Can I continue to send authorized remittances to Cuba?

Yes. The announced policy changes will not change the authorizations for sending

remittances to Cuba. Additionally, the announced changes include an exception that will

allow for transactions incidental to the sending, processing, and receipt of authorized

remittances to the extent they would otherwise be restricted by the new policy limiting

transactions with certain identified Cuban military, intelligence, or security services. As

a result, the restrictions on certain transactions in the new Cuba policy will not limit the

ability to send or receive authorized remittances.

9. How does the new policy impact other authorized travel to Cuba by persons subject to U.S. jurisdiction?

The new policy will not result in changes to the other (non-individual people-to-people)

authorizations for travel.

Following the issuance of OFAC’s regulatory changes, travel-related transactions with

prohibited entities identified by the State Department generally will not be permitted.

Guidance will accompany the issuance of the new regulations.

10. How will the new policy impact existing OFAC specific licenses?

The forthcoming regulations will be prospective and thus will not affect existing

contracts and licenses.

11. How will U.S. companies know if their Cuban counterpart is affiliated with a prohibited entity or sub-entity in Cuba?

The State Department will be publishing a list of entities with which direct transactions

generally will not be permitted. Guidance will accompany the issuance of the new

regulations. The announced changes do not take effect until the new regulations are

issued.

12. Is authorized travel by cruise ship or passenger vessel to Cuba impacted by the new Cuba policy?

Persons subject to U.S. jurisdiction will still be able to engage in authorized travel to

Cuba by cruise ship or passenger vessel.

Following the issuance of OFAC’s regulatory changes, travel-related transactions with

prohibited entities identified by the State Department generally will not be permitted.

Guidance will accompany the issuance of the new regulations.

Please contact the PR Team if you have any questions or concerns: TravelLeadersGroupPR@TravelLeaders.com.