Globe with pinsOn 22 July 2015, the US Department of Commerce Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to implement the Secretary of State’s removal of Cuba from the list of State Sponsors of Terrorism. The rulemaking removes anti-terrorism (AT) licensing requirements for Cuba and references throughout the EAR to Cuba as a state sponsor of terrorism. However, Cuba remains subject to a comprehensive US embargo and, under Section 746.2(a) of the EAR, a license or license exception is still required for all exports to Cuba of items subject to the EAR, including EAR99 items.

The amendments to the EAR include removing Cuba from the list of E:1 (Terrorist Supporting Countries), in Supplement No. 1 to Part 740 of the EAR. Importantly, this makes Cuba eligible for the general 25% de minimis level for exports to Cuba of items located outside the US that incorporate certain controlled US-origin content. Previously, the de minimis level for Cuba was set at 10%. In addition, Cuba is now eligible for certain aspects of four different license exceptions, including RPL, BAG, GOV and AVS. BIS published guidance on its website to help exporters understand the updated Regulations.