Havana Cuba Business Travel Culture and Politics

Havana Cuba News

Cuba Culture News

Posted August 01, 2008 by publisher in Cuban Cigars

Email this article | Print this article | Search Havana Journal        

These are the civil penalties released by OFAC today for violations of buying Cuban cigars on the Internet

One individual was assessed a penalty totaling $4,351.50 for dealing in property in which Cuba or a Cuban national had an interest: On or about July 26, 2003, August 20, 2003, October 31, 2003, May 3, 2004, June 4, 2004 and July 3, 2004, the individual purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

One individual was assessed a penalty totaling $3,250 for dealing in property in which Cuba has an interest: On August 11, 2004, the individual attempted to transfer money to a friend in Cuba. The individual did not voluntarily disclose this matter to OFAC.

One individual was assessed a penalty totaling $1,225 for dealing in property in which Cuba or a Cuban national had an interest: On or about October 25, 2003, November 6, 2003, December 4, 2003 and March 29, 2004, the individual purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

One individual has agreed to a settlement totaling $1,681.55 for allegedly dealing in property in which Cuba or a Cuban national had an interest: Between November 2004 and August 2006, the individual allegedly purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.
One individual has agreed to a settlement totaling $840 for alleged violation of the prohibitions in the Iranian Transactions Regulations: OFAC alleged that in August 2006, the individual attempted to transfer funds to Me-Gold Kish, Co. in Iran in an apparent attempt to purchase electronic gold without an OFAC license. The individual did not voluntarily disclose this matter to OFAC.

One individual was assessed a penalty totaling $700.00 for dealing in property in which Cuba or a Cuban national had an interest: From 2003-2005 the individual engaged in unlicensed travel-related transactions incident to a trip to Cuba. The individual did not voluntarily disclose this matter to OFAC.

One individual was assessed a penalty totaling $650.00 for dealing in property in which Cuba or a Cuban national had an interest: On December 24, 2004 and March 15, 2005, the individual purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

One individual has agreed to a settlement totaling $395.25 for allegedly dealing in property in which Cuba or a Cuban national had an interest: In December 2004 and January 2005, the individual allegedly purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

————————————————

OFAC CUBAN CIGAR PURCHASING RESTRICTIONS

Recent changes to the Cuban Assets Control Regulations, 31 C.F.R. Part 515 (the “Regulations”), administered and enforced by the Office of Foreign Assets Control (“OFAC”), have prompted OFAC to revise the Cuban Cigar Update previously issued on June 19, 1998. This notice provides important information to the public on Cuban-origin tobacco products.

Importation of Cuban-Origin Cigars Into the United States

There is now an across the board ban on the importation into the United States of Cuban-origin cigars and other Cuban-origin tobacco products, as well as most other
products of Cuban origin. This prohibition extends to such products acquired in Cuba, irrespective of whether a traveler is licensed by OFAC to engage in Cuba travel related transactions, and to such products acquired in third countries by any U.S. traveler, including purchases at duty free shops. Importation of these Cuban goods is
prohibited whether the goods are purchased directly by the importer or given to the importer as a gift. Similarly, the import ban extends to Cuban-origin tobacco products
offered for sale over the Internet or through the catalog mail purchases. Prior to August 1, 2004, persons returning to the United States who were licensed under the
Regulations to engage in Cuba travel-related transactions were authorized by general license to import up to $100 worth of Cuban merchandise as accompanied baggage. Cuban tobacco and alcohol products were included in that general license. That general license was removed from the Regulations.

Transactions Involving Cuban-Origin Goods in Third Countries

The question is often asked whether United States citizens or permanent resident aliens of the United States may legally purchase Cuban origin goods, including tobacco and alcohol products, in a third country for personal use outside the United States. The answer is no. The Regulations prohibit persons subject to the jurisdiction of
the United States from purchasing, transporting, importing, or otherwise dealing in or engaging in any transactions with respect to any merchandise outside the United States if such merchandise (1) is of Cuban origin; or (2) is or has been located in or transported from or through Cuba; or (3) is made or derived in whole or in part of any article which is the growth, produce or manufacture of Cuba. Thus, in the case of cigars, the prohibition extends to cigars manufactured in Cuba and sold in a third country and to cigars manufactured in a third country from tobacco grown in Cuba.

Cigars Produced from Cuban Tobacco Seed OFAC does not consider cigars produced from tobacco grown and harvested in a third country from Cuban seeds to constitute a growth or product of Cuba. Therefore, the Regulations do not prevent transactions or dealing in those products by persons subject to the jurisdiction of the United States, as long as there is no interest of Cuba or a Cuban national, direct or indirect, in the sale of such cigars. Criminal penalties for violation of the Regulations range
up to $1,000,000 in fines for corporations, $250,000 for individuals and up to 10 years in prison. Civil penalties of up to $65,000 per violation may be imposed by OFAC.

Suspected embargo violations may be reported telephonically to OFAC’s Enforcement Division at (202)622-2430 or via facsimile at 202 622-1657.

Date 09/30/2004

Find Cuban cigars on Amazon

Would you like to add more information?


Only members can add more information. Please register or log in

  • Advertise at Havana Journal Inc
Images of Cuba
Caribbean Bird - Cuban art - Painting by Wifredo Lam
Follow Havana Journal
SUBSCRIBE to our Cuba Watch newsletter
LIKE us on Facebook

FOLLOW us on Twitter

CONNECT with us on Linked In

Section Archive
Havana Journal, Inc. BBB Business Review



Member of the Association for the Study of the Cuban Economy