U.S. Liberalization of Cuba Air Service
January 19, 2015
Effective January 16, 2015, U.S. restrictions on travel to Cuba have been substantially liberalized. Most notably, the President has effectively terminated the OFAC licensing regime that previously governed all air carrier service between the U.S. and Cuba. As a result, both U.S. and foreign air carriers (to the extent the latter are subject to U.S. jurisdiction) may provide commercial charter service between the U.S. and Cuba without obtaining Cuba-specific authorization from OFAC.
Air Carrier Service to Cuba – OFAC Licensing Requirements Rescinded
OFAC has issued a new general license that authorizes persons subject to U.S. jurisdiction (i.e., U.S. carriers and foreign carriers holding FAA/DOT authority) to provide air carrier services to, from, or within Cuba, in connection with authorized travel, without the need for a specific license from OFAC. The practical impact of the general license is that U.S. and foreign carriers subject to U.S. jurisdiction will no longer require any Cuba-specific authorizations from OFAC in order to operate revenue service to Cuba. Carriers must still confirm passengers traveling to Cuba fall within one of the twelve categories of authorized travel (see below) and retain records of each passengers travel for five years.
NOTE: Carriers wishing to provide service must check with DOT, FAA, and DHS to ensure no additional regulatory approvals are required from those agencies. Furthermore, DOT is in the process of establishing procedures to reestablish scheduled U.S.-Cuba service.
General Licenses Authorizing Individual Travel
OFAC has issued general licenses within 12 categories of authorized travel that previously required a specific license and prior OFAC approval. As a result, demand for travel services to Cuba is likely to increase exponentially over the coming year. The 12 categories of travel include the following:
- 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.
Note that tourist related travel to Cuba is still prohibited.
Per Diem
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, such as payment of living expenses and acquiring goods in Cuba for personal consumption there.
Credit and Debit Cards
Travelers will now be allowed to use U.S. credit and debit cards in 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.
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 certain other transactions.
Please contact Evelyn Sahr at 202.659.6622 if you have any questions and do not hesitate to reach out in connection with any charter or scheduled operations you wish to perform to Cuba under the liberalized guidelines.