OFAC Cuba Sanctions FAQ – Part IX

54. What change has been made to the regulatory interpretation of “cash in advance”?

The regulatory interpretation of “cash in advance” has been changed from “cash before shipment”
to “cash before transfer of title and control” to allow expanded financing options for authorized
exports to Cuba. For the full text, see 31 CFR § 515.533.

55. What types of projects would fall within the authorization in 31 CFR § 515.575 for
microfinancing projects?

Among other things, the provision for microfinancing projects in Section 515.575 of the CACR
authorizes the provision of certain financial services to unemployed, underemployed, and low-
income Cubans who have little or no access to conventional banks or comparable resources, and
which may include a limited return on investment. In addition, Section 515.570(g)(1) of the
CACR authorizes remittances to individuals and independent non-governmental entities in Cuba
to support authorized microfinancing projects. These provisions would authorize, for example,
relatively limited contributions of funds to support individual entrepreneurs in sectors that need
access to working capital, investment loans, insurance, or training in order to start or expand their
operations. Sections 515.575 and 515.570(g)(1) of the CACR do not authorize loans, extensions
of credit or other financing related to transactions involving confiscated property the claim to
which is owned by a U.S. national, which are prohibited by 31 CFR § 515.208. For additional
guidance or fact-specific questions, we would encourage you to contact OFAC.

56. If a person had applied for a specific license from OFAC before the CACR was revised but
now believes that the proposed activity is authorized pursuant to a general license, does that
person need to wait for his or her specific license application to be adjudicated?

No. If persons meet the qualifications listed in the general license, then they do not need to wait
for an official determination from OFAC regarding their specific license application. Persons
who have determined they may proceed under a general license may wish to contact OFAC
Licensing to withdraw existing applications.

57. What types of goods and services produced by independent Cuban entrepreneurs are
authorized for importation into the United States from Cuba pursuant to 31 CFR §
515.582?

Pursuant to Section 515.582 of the CACR, certain goods and services produced by independent Cuban entrepreneurs, as set forth in a list maintained by the State Department on its website, are authorized for importation, and persons subject to U.S. jurisdiction may engage in associated transactions necessary to import these authorized goods and services. The State Department list provides details of the goods and services authorized for importation into the U.S. from Cuba pursuant to this provision. This list references sections and chapters of the Harmonized Tariff Schedule (HTS) of the United States to indicate categories of goods that are not eligible for importation into the United States pursuant to 31 CFR §515.582, even if such goods were produced by independent Cuban entrepreneurs; any other goods produced by independent Cuban entrepreneurs and not covered by the listed sections and chapters of the HTS may be imported, as provided in the State Department’s Section 515.582 List and subject to compliance with all other