UPDATE ON NEW OFFICE OF FOREIGN ASSETS CONTROL (OFAC) RESTRICTIONS ON TRAVEL TO CUBA
July 3, 2019
On May 30, 2019, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control Regulations (CACR) by removing the popular authorization for group people-to-people educational travel to Cuba, effective June 5, 2019. Certain previously authorized group people-to-people educational travel may continue to be authorized under a grandfathering provision that will also be added to the regulation. This restriction reflects the Trump Administration’s new policy of taking a tougher stance against travel to Cuba.
Additionally, under the “Restricting the Temporary Sojourn of Aircraft and Vessels to Cuba” rule promulgated by the Bureau of Industry and Security, the U.S. Department of Commerce’s Export Administration Regulations have similarly been amended to prohibit non-commercial aircraft from flying to Cuba, and passenger and recreational vessels from sailing to Cuba, including private and corporate aircraft, cruise ships, sailboats, fishing boats, and other similar aircraft and vessels. However, the following types of aircraft and vessels will remain eligible for travel to Cuba: 1) commercial aircraft operating under Air Carrier Operating Certificates and other Federal Aviation Administration certificates; 2) authorized air ambulances; and 3) cargo vessels for hire for use in transportation of separately authorized items.
Finally, on June 4, 2019, OFAC issued a clarification on the restrictions for individuals traveling to Cuba in the “Support for the Cuban People” authorized travel category – permitting the booking of hotels. United States-based travel agents and tour operators inquired into the ability to book hotels for these travelers, as the OFAC’s Frequently Asked Questions (FAQs) did not specifically mention the use of hotels in the authorized itineraries examples. OFAC clarified in the FAQs that travelers may book hotels in Cuba so long as they comply with all other requirements when traveling under the “Support for the Cuban People” category.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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