[Full text in Original]
CUBAN DEMOCRACY ACT ("CDA")
UNITED STATES CODE
TITLE 22. FOREIGN RELATIONS AND INTERCOURSE CHAPTER 69.
Section 6001. Findings
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Sec. 6002. Statement of policy
It should be the policy of the United States-
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Sec. 6003. International cooperation
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(b) Sanctions against countries assisting Cuba.
(1) Sanctions. The President may apply the following sanctions to any country that provides assistance to Cuba:
(A) The government of such country shall not be eligible for assistance under the Foreign Assistance Act of 1961 or assistance or sales under the Arms Export Control Act.
(B) Such country shall not be eligible, under any program, for forgiveness or reduction of debt owed to the United States Government.
(2) Definition of assistance. For purposes of paragraph (1), the term "assistance to Cuba"-
(A) means assistance to or for the benefit of the Government of Cuba that is provided by grant, concessional sale, guaranty, or insurance, or by any other means on terms more favorable than that generally available in the applicable market, whether in the form of a loan, lease, credit, or otherwise, and such term includes subsidies for exports to Cuba and favorable tariff treatment of articles that are the growth, product, or manufacture of Cuba;
(B) includes an exchange, reduction, or forgiveness of Cuban debt owed to a foreign country in return for a grant of an equity interest in a property, investment, or operation of the Government of Cuba (including the government of any political subdivision of Cuba, and any agency or instrumentality of the Government of Cuba) or of a Cuban national; and
(C) does not include-
(i) donations of food to nongovernmental organizations or individuals in Cuba, or
(ii) exports of medicines or medical supplies, instruments, or equipment that would be permitted under section 1705(c) [22 USCS § 6004(c)].
As used in this paragraph, the term "agency or instrumentality of the Government of Cuba" means an agency or instrumentality of a foreign state as defined in section 1603(b) of title 28, United States Code, with each reference in such section to "a foreign state" deemed to be a reference to "Cuba".
(3) Applicability of section. This section, and any sanctions imposed pursuant to this section, shall cease to apply at such time as the President makes and reports to the Congress a determination under section 1708(a) [22 USCS § 6007(a)].
Sec. 6004. Support for the Cuban people
(a) Provisions of law affected. The provisions of this section apply notwithstanding any other provision of law, including section 620(a) of the Foreign Assistance Act of 1961 [22 USCS § 2370], and notwithstanding the exercise of authorities, before the enactment of this Act [enacted Oct. 23, 1992], under section 5(b) of the Trading With the Enemy Act [50 USCS Appx § 5(b)], the International Emergency Economic Powers Act [50 USCS §§ 1701 et seq.], or the Export Administration Act of 1979.
(b) Donations of food. Nothing in this or any other Act shall prohibit donations of food to nongovernmental organizations or individuals in Cuba.
(c) Exports of medicines and medical supplies. Exports of medicines or medical supplies, instruments, or equipment to Cuba shall not be restricted--
(1) except to the extent such restrictions would be permitted under section 5(m) of the Export Administration Act of 1979 [50 USCS Appx § 2404(m)] or section 203(b)(2) of the International Emergency Economic Powers Act [50 USCS § 1702(b)(2)];
(2) except in a case in which there is a reasonable likelihood that the item to be exported will be used for purposes of torture or other human rights abuses;
(3) except in a case in which there is a reasonable likelihood that the item to be exported will be reexported; and
(4) except in a case in which the item to be exported could be used in the production of any biotechnological product.
(d) Requirements for certain exports.
(1) Onsite verifications.
(A) Subject to subparagraph (B), an export may be made under subsection (c) only if the President determines that the United States Government is able to verify, by onsite inspections and other appropriate means, that the exported item is to be used for the purposes for which it was intended and only for the use and benefit of the Cuban people.
(B) Subparagraph (A) does not apply to donations to nongovernmental organizations in Cuba of medicines for humanitarian purposes.
(2) Licenses. Exports permitted under subsection (c) shall be made pursuant to specific licenses issued by the United States Government.
(e) Telecommunications services and facilities.
(1) Telecommunications services. Telecommunications services between the United States and Cuba shall be permitted.
(2) Telecommunications facilities. Telecommunications facilities are authorized in such quantity and of such quality as may be necessary to provide efficient and adequate
telecommunications services between the United States and Cuba.
(3) Licensing of payments to Cuba.
(A) The President may provide for the issuance of licenses for the full or partial payment to Cuba of amounts due Cuba as a result of the provision of telecommunications services authorized by this subsection, in a manner that is consistent with the public interest and the purposes of this title [22 USCS §§ 6001 et seq.], except that this paragraph shall not require any withdrawal from any account blocked pursuant to regulations issued under section 5(b) of the Trading With the Enemy Act [50 USCS Appx § 5(b)].
(B) If only partial payments are made to Cuba under subparagraph (A), the amounts withheld from Cuba shall be deposited in an account in a banking institution in the United States. Such account shall be blocked in the same manner as any other account containing funds in which Cuba has any interest, pursuant to regulations issued under section 5(b) of the Trading With the Enemy Act [50 USCS Appx § 5(b)].
(4) Authority of Federal Communications Commission. Nothing in this subsection shall be construed to supersede the authority of the Federal Communications Commission.
(5) Prohibition on investment in domestic telecommunications services. Nothing in this subsection shall be construed to authorize the investment by any United States person in the domestic telecommunications network within Cuba. For purposes of this paragraph, an "investment" in the domestic telecommunications network within Cuba includes the contribution (including by donation) of funds or anything of value to or for, and the making of loans to or for, such network.
(6) Reports to Congress. The President shall submit to the Congress on a semiannual basis a report detailing payments made to Cuba by any United States person as a result of the provision of telecommunications services authorized by this subsection.
(f) Direct mail delivery to Cuba. The United States Postal Service shall take such actions as are necessary to provide direct mail service to and from Cuba, including, in the absence of common carrier service between the 2 countries, the use of charter service providers.
(g) Assistance to support democracy in Cuba. The United States Government may provide assistance, through appropriate nongovernmental organizations, for the support of individuals and organizations to promote nonviolent democratic change in Cuba.
Sec. 6005. Sanctions
(a) Prohibition on certain transactions between certain United States firms and Cuba
(1) Prohibition. Notwithstanding any other provision of law, no license may be issued for any transaction described in section 515.559 of title 31, Code of Federal Regulations, as in effect on July 1, 1989.
(2) Applicability to existing contracts. Paragraph (1) shall not affect any contract entered into before the date of the enactment of this Act [enacted Oct. 23, 1992].
(b) Prohibitions on vessels.
(1) Vessels engaging in trade. Beginning on the 61st day after the date of the enactment of this Act [enacted Oct. 23, 1992], a vessel which enters a port or place in Cuba to engage in the trade of goods or services may not, within 180 days after departure from such port or place in Cuba, load or unload any freight at any place in the United States, except pursuant to a license issued by the Secretary of the Treasury.
(2) Vessels carrying goods or passengers to or from Cuba. Except as specifically authorized by the Secretary of the Treasury, a vessel carrying goods or passengers to or from Cuba or carrying goods in which Cuba or a Cuban national has any interest may not enter a United States port.
(3) Inapplicability of ship stores general license. No commodities which may be exported under a general license described in section 771.9 of title 15, Code of Federal Regulations, as in effect on May 1, 1992, may be exported under a general license to any vessel carrying goods or passengers to or from Cuba or carrying goods in which Cuba or a Cuban national has an interest.
(4) Definitions. As used in this subsection-
(A) the term "vessel" includes every description of water craft or other contrivance used, or capable of being used, as a means of transportation in water, but does not include aircraft;
(B) the term "United States" includes the territories and possessions of the United States and the customs waters of the United States (as defined in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401)); and
(C) the term "Cuban national" means a national of Cuba, as the term "national" is defined in section 515.302 of title 31, Code of Federal Regulations, as of August 1, 1992.
(c) Restrictions on remittances to Cuba. The President shall establish strict limits on remittances to Cuba by United States persons for the purpose of financing the travel of Cubans to the United States, in order to ensure that such remittances reflect only the reasonable costs associated with such travel, and are not used by the Government of Cuba as a means of gaining access to United States currency.
(d) Clarification of applicability of sanctions. The prohibitions contained in subsections (a), (b), and (c) shall not apply with respect to any activity otherwise permitted by section 1705 or section 1707 of this Act [22 USCS § 6004 or 6006] or any activity which may not be regulated or prohibited under section 5(b)(4) of the Trading With the Enemy Act (50 U.S.C. App. 5(b)(4)).
Sec. 6006. Policy toward a transitional Cuban government
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Sec. 6007. Policy toward a democratic Cuban government
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Sec. 6008. Existing claims not affected
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Sec. 6009. Enforcement
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Sec. 6010. Definition
As used in this title [22 USCS §§ 6001 et seq.], the term "United States person" means any United States citizen or alien admitted for permanent residence in the United States, and any corporation, partnership, or other organization organized under the laws of the United States.
OFAC cites the following statutory authorities as the basis for the CACR, initially issued in 1963 pursuant to TWEA.
*Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), 22 U.S.C. §§ 7201-7211
*Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA), 18 U.S.C. § 2332d
*Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996, 22 U.S.C. §§ 6021-6091
*Cuban Democracy Act of 1992 (CDA), 22 U.S.C. §§ 6001-6010
*Sections 5 and 16 of the Trading With the Enemy Act (TWEA), 50 U.S.C. App. §§ 5, 16
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The CDA does not impact ordinary sanctions compliance with respect to Cuba in any way that is not evident from the CACR itself, but it plays a role in the current constitution of the CACR, codifying certain provisions of those regulations, and thereby limiting extent to which OFAC can act. They are as follows:
1: 515.206(b); exempting (rather than licensing) "transactions incident to the donation of food to nongovernmental organizations or individuals in Cuba."
2) 515.533(a) (insofar as the export is of "medicines and medical supplies," 515.559(a)(2).
3) 515.542 (re: telecommunications services and facilities, payments therefor).
4) 515.559 (Certain export and import transactions by U.S.-owned or -controlled foreign firms).
5) 515.207 (Entry of vessels engaged in trade with Cuba).
6) 515.570(e). There would probably be no cap on remittances for the purpose of travelling to the United States but for the requirement of the CDA.