U.S. RESTRICTS AIRCRAFT RENTALS TO CUBAN AIRLINES
November 8, 2019
In tandem with DOT’s forthcoming restrictions on U.S. air carrier scheduled service to non-Havana points in Cuba, on October 18, 2019, the U.S. Department of Commerce announced new restrictions on Cuba’s access to rental aircraft. Tightening U.S. export controls in an effort to cut off sources of revenue for the Cuban government, the Commerce Department’s Bureau of Industry and Security (BIS) by official publication on October 21, 2019, amended its Export Administration Regulations (EAR) to cancel existing licenses for aircraft leases to Cuban state-owned airlines and to declare that BIS will deny future applications for such leases. BIS stated it was amending its previous policy of approving such applications because the Cuban government generates revenue from transporting tourists on leased aircraft.
In the same notice, BIS announced an expansion of Cuba sanctions to reach a greater proportion of foreign goods containing U.S. content (items of 10% U.S. origin, down from 25%), and the imposition of additional other restrictions on exports to Cuba.
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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