Cuba Sanctions: Legislative Restrictions
Limiting the Normalization of Relations
Dianne E. Rennack
Specialist in Foreign Policy Legislation
Mark P. Sullivan
Specialist in Latin American Affairs
February 13, 2015
Congressional Research Service
7-5700
www.crs.gov
R43888

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Summary
In December 2014, President Obama announced major changes in U.S. policy toward Cuba,
including the restoration of diplomatic relations (relations were severed in January 1961), a
review by the Department of State of Cuba’s designation as a state sponsor of terrorism (Cuba
was designated in 1982), and an increase in travel, trade, and the free flow of information to
Cuba. This third step required the Departments of Commerce and the Treasury to amend the
embargo regulations, which were announced on January 15, 2015.
When the President announced his policy change on Cuba, he acknowledged that he does not
have authority to lift the embargo because it is codified in legislation. While the embargo was
first imposed in the early 1960s under the authority of the Foreign Assistance Act of 1961 and the
Trading with the Enemy Act, Congress enacted additional laws over the years that strengthened
the embargo on Cuba, including the Cuban Democracy Act of 1992, the Cuban Liberty and
Democratic Solidarity Act (LIBERTAD) Act of 1996 (which codified the embargo regulations),
and the Trade Sanctions Reform and Export Enhancement Act of 2000. Congress also has enacted
numerous other provisions of law that impose sanctions on Cuba, including restrictions on trade,
foreign aid, and support from the international financial institutions.
This report provides information on legislative provisions restricting relations with Cuba. It lists
the various provisions of law comprising economic sanctions on Cuba, including key laws that
are the statutory basis of the embargo, and provides information on the authority to lift or waive
these restrictions.
For additional information, see CRS Report R43024, Cuba: U.S. Policy and Issues for Congress;
CRS In Focus IF10045, Cuba: President Obama’s New Policy Approach, by Mark P. Sullivan;
CRS Report R43835, State Sponsors of Acts of International Terrorism—Legislative Parameters:
In Brief; and CRS Report RL31139, Cuba: U.S. Restrictions on Travel and Remittances.


Congressional Research Service

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Contents
Introduction ...................................................................................................................................... 1

Tables
Table 1. Legislative Restrictions Limiting the Normalization of U.S.-Cuban Relations ................. 3

Contacts
Author Contact Information........................................................................................................... 18

Congressional Research Service

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Introduction
Since the early 1960s, U.S. policy toward Cuba has consisted largely of isolating the island nation
through comprehensive economic sanctions, including an embargo on trade and financial
transactions. President John F. Kennedy proclaimed an embargo on trade between the United
States and Cuba in February 1962,1 citing Section 620(a) of the Foreign Assistance Act of 1961
(FAA), which authorizes the President “to establish and maintain a total embargo upon all trade
between the United States and Cuba.”2 At the same time, the Department of the Treasury issued
the Cuban Import Regulations to deny the importation into the United States of all goods
imported from or through Cuba.3 The authority for the embargo was later expanded in March
1962 to include the Trading with the Enemy Act (TWEA).4
In July 1963, the Treasury Department revoked the Cuban Import Regulations and replaced them
with the more comprehensive Cuban Assets Control Regulations (CACR)—31 C.F.R. Part 515—
under the authority of TWEA and Section 620(a) of the FAA.5 The CACR, which include a
prohibition on most financial transactions with Cuba and a freeze of Cuban government assets in
the United States, remain the main body of Cuba embargo regulations, and have been amended
many times over the years to reflect changes in policy. They are administered by the Treasury
Department’s Office of Foreign Assets Control (OFAC), and prohibit financial transactions as
well as trade transactions with Cuba. The CACR also require that all exports to Cuba be licensed
by the Department of Commerce, Bureau of Industry and Security, under the provisions of the
Export Administration Act of 1979, as amended.6 The Export Administration Regulations (EAR)
are found at 15 C.F.R. Sections 730-774.7
Congress subsequently strengthened sanctions on Cuba through provisions in such legislation as
the Cuban Democracy Act of 1992 (CDA, P.L. 102-484, Title XVII), the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (P.L. 104-114), and the Trade Sanctions Reform
and Export Enhancement Act of 2000 (TSRA, P.L. 106-387, Title IX).
• Among its sanctions, the CDA prohibits U.S. subsidiaries from engaging in trade
with Cuba and prohibits entry into the United States for any sea-borne vessel to
load or unload freight if it has been involved in trade with Cuba within the
previous 180 days.
• The LIBERTAD Act codified the economic embargo, including all restrictions
under the CACR, although the President retains broad authority to amend the

1 27 Federal Register 1085, February 7, 1962 (Proclamation 3447, Embargo on All Trade with Cuba, February 3,
1962).
2 Previously, in October 1960 under the Eisenhower Administration, exports to Cuba were placed under strict export
controls under the authority of the Export Control Act of 1949 in response to the expropriation of U.S. properties. This
in effect amounted to an embargo on exports of all products with the exception of certain foods, medicines, and
medical supplies.
3 27 Federal Register 1116, February 7, 1962.
4 27 Federal Register 2765-2766, March 24, 1962.
5 28 Federal Register 6974-6985, July 9, 1963.
6 31 C.F.R. §515.533.
7 See especially 15 C.F.R. §746.2 on Cuba, which refers to other parts of the EAR.
Congressional Research Service
1

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

regulations. Nevertheless, as set forth in the LIBERTAD Act, the President
cannot eliminate the embargo regulations without making a determination that a
transition government is in power in Cuba. The LIBERTAD Act also requires the
President to end the embargo if he determines that a democratically elected
government is in power.
• While TSRA authorizes U.S. commercial exports to Cuba, it also includes
prohibitions on U.S. assistance and financing and requires “payment of cash in
advance” or third-country financing for the exports. The act also prohibits tourist
travel to Cuba.
In addition to these key acts that constitute the economic embargo, there are numerous other
provisions of law that impose sanctions on Cuba, including restrictions on trade, foreign aid, and
support from international financial institutions. The government of Cuba also was designated by
the State Department as a state sponsor of international terrorism in 1982 under Section 6(j) of the
Export Administration Act and other laws because of its alleged ties to international terrorism.8
On December 17, 2014, President Barack Obama announced major changes in policy toward
Cuba, including the intention to reestablish diplomatic relations that were severed in 1961, a
review of Cuba’s designation as a state sponsor of international terrorism, and numerous policy
measures to increase travel, commerce, and the free flow of information to Cuba. To implement
this last step, the Departments of the Treasury and Commerce issued amendments to the CACR9
and EAR to enter into effect on January 16, 2015, that significantly eased the embargo in such
areas as travel, remittances, trade (including consumer communication devices and certain goods
and services for the private sector), and financial services (permitting U.S. correspondent bank
accounts in Cuban financial institutions).10
When announcing the policy changes, the President acknowledged that he does not have the
authority to lift the embargo, but maintained that he looks forward to engaging Congress in a
debate about doing so. Without a presidential determination required by the LIBERTAD Act that
Cuba has a democratically elected government in place, congressional action would be required
to end the embargo by amending or repealing the LIBERTAD and other embargo-related
statutes.11
This report provides information on legislative provisions restricting relations with Cuba. Table 1
lists the various provisions of law comprising economic sanctions on Cuba, including key laws
that are the statutory basis of the embargo, and provides information on the authority to lift or
waive the restrictions.


8 Cuba’s designation on the state sponsor of terrorism list has allowed U.S. nationals injured by an act of international
terrorism to file lawsuits against Cuba in the United States for damages. For more information, see CRS Report
WSLG254, Can Victims of Terrorism in the United States Sue Foreign Governments? by Jennifer K. Elsea.
9 CRS has prepared a memorandum for general distribution on Cuban Assets Control Regulations, with Final Rule of
January 16, 2015 Incorporated in Ramseyer Form, available on request from the authors.
10 80 Federal Register 2286-2302, January 16, 2015.
11 U.S. Government Accountability Office, U.S. Embargo On Cuba: Recent Regulatory Changes and Potential
Presidential or Congressional Actions, GAO-09-0951R, September 17, 2009.
Congressional Research Service
2

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Table 1. Legislative Restrictions Limiting the Normalization of U.S.-Cuban Relations
Statutory Basis
Restriction
Authority to Lift or Waive
Key Restrictions that Form the Core of the U.S. Economic Sanctions Regime on Cuba: The Embargo
Sec. 620(a)(1), Foreign Assistance
Prohibits foreign aid “to the present
The prohibition on aid has no
Act of 1961 (22 U.S.C. 2370(a)(1))
government of Cuba.”
waiver, though could be overridden
by appropriations language that
Authorizes the President “to
provides aid “notwithstanding any
establish and maintain a total
other provision of law.”
embargo upon all trade between the
United States and Cuba.”
As set forth in the law, the total
embargo is a discretionary
authorization.
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 620(a) only
if he determines “a transition
government is in power in Cuba.”
Sec. 204 of that Act, furthermore,
requires the President to terminate
sanctions under sec. 620(a) and
other measures if he determines that
“a democratically elected
government in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 620(a) on President making such
a determination.
Sec. 620(a)(2), Foreign Assistance
Authorizes the President to prohibit
As set forth in the law, the
Act of 1961 (22U.S.C. 2370(a)(2))
foreign aid to “any government of
prohibitions on aid and sugar
Cuba.”
imports are discretionary, “except as
may be deemed necessary by the
Denies Cuba a quota for sugar trade, President in the interests of the
“or to receive any other benefit
United States.”
under any law of the United States. .
”
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 620(a) only
if he determines “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 620(a) and other
measures if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 620(a) on President making such
a determination.
Congressional Research Service
3

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 5(b), Trading With the Enemy
Authorizes the President to restrict
The Cuban Assets Control
Act (50 U.S.C. App. 5(b))
or prohibit trade, transactions, and
Regulations, 31 CFR Part 515, were
access to assets and property.
issued in July 1963 under the
authority of TWEA. Pursuant to the
law, the President may terminate the
national emergency and restrictions
under TWEA at any time.
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of 31 CFR Part 515
only if he determines that “a
transition government is in power in
Cuba.”
Sec. 204, furthermore, requires the
President to terminate the economic
embargo of Cuba, including the
restrictions under 31 CFR Part 515 if
he determines that “a democratical y
elected government in Cuba is in
power.”
Nevertheless, the Secretary of the
Treasury retains authority to amend
regulations therein, in accordance
with 31 CFR Part 515. 201, which, in
part, provides: “Al of the fol owing
transactions are prohibited, except
as specifically authorized by the
Secretary of the Treasury.... ”
Sec. 1704, Cuban Democracy Act of
Authorizes the President to prohibit
As set forth in the law, the
1992 (22 U.S.C. 6003)
foreign aid under the Foreign
prohibitions are at the President’s
Assistance Act of 1961, transactions
discretion.
under the Arms Export Control Act,
or debt forgiveness, to any third
Sec. 204, Cuban Liberty and
country providing assistance to
Democratic Solidarity (LIBERTAD)
Cuba.
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 1704 only if
he determines that “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 1704 and other measures
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 1704 on President making such a
determination.
Congressional Research Service
4

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 1705(d), Cuban Democracy Act
Requires on-site verification for the
The President is required to
of 1992 (22 U.S.C. 6004(d))
export of medicines and medical
determine that the U.S. government
supplies (unless the recipient is a
can verify the end use of such
nongovernmental organization
exports.
receiving donations).
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064) authorizes the
President to suspend the
enforcement of sec. 1705(d) only if
he determines that “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 1705 and other measures
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 1705(d) on President making
such a determination.
Sec. 1705(e)(5), Cuban Democracy
Sec. 1705, overall, authorizes
No waiver.
Act of 1992 (22 U.S.C. 6004(e)(5))
“support for the Cuban people,”
including allowing
telecommunications services
between the United States and Cuba.
Sec. 1705(e)(5), however, clarifies
that this allowance does not
authorize a U.S. person to invest in
Cuba’s domestic telecommunications
network.
Congressional Research Service
5

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 1706(a), Cuban Democracy Act
Prohibits specific licenses for
Sec. 1708 provides that the
of 1992 (22 U.S.C. 6005(a))
transactions relating to trade
President may waive if he determines
between Cuba and U.S.-owned or -
that the government of Cuba (1) has
control ed companies in third
held free and fair elections, (2)
countries “in appropriate cases,”
permits opposition parties to
codifying requirements stated in 31
participate, (3) respects “basic civil
CFR Part 515.559 as of July 1, 1989
liberties and human rights of the
(effective October 23, 1992).
citizens of Cuba,” (4) is moving
toward a free market economy, and
(5) is committed to constitutional
change that ensures regular free and
fair elections.
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 1706 only if
he determines that “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 1706 and other measures
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 1706 on President making such a
determination.
Congressional Research Service
6

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 1706(b), Cuban Democracy Act
Prohibits entry into U.S. ports by any Licenses may be issued at the
of 1992 (22 U.S.C. 6005(b))
vessel that has entered a Cuban port
discretion of the Secretary of the
in the previous 180 days.
Treasury.
Prohibits entry into U.S. ports by any Sec. 1708 provides that the
vessel carrying goods or passengers
President may waive if he determines
to or from Cuba in which Cuba or a
that the government of Cuba (1) has
Cuban national has any interest.
held free and fair elections, (2)
permits opposition parties to
Prohibits the use of a general license
participate, (3) respects “basic civil
for ship stores for any vessel
liberties and human rights of the
carrying goods or passengers to or
citizens of Cuba,” (4) is moving
from Cuba in which Cuba or a
toward a free market economy, and
Cuban national has any interest.
(5) is committed to constitutional
change that ensures regular free and
fair elections.
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 1706 only if
he determines that “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 1706 and other measures
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 1706 on President making such a
determination.
Congressional Research Service
7

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 1706(c), Cuban Democracy Act
Requires the President to “establish
The term “strict limits” is undefined,
of 1992 (22 U.S.C. 6005(c))
strict limits on remittances to Cuba
so left to the discretion of the
by United States persons for the
President.
purpose of financing the travel of
Cubans to the United States.... ”
Sec. 1708 provides that the
President may waive if he determines
that the government of Cuba (1) has
held free and fair elections, (2)
permits opposition parties to
participate, (3) respects “basic civil
liberties and human rights of the
citizens of Cuba,” (4) is moving
toward a free market economy, and
(5) is committed to constitutional
change that ensures regular free and
fair elections.
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064), however,
authorizes the President to suspend
the enforcement of sec. 1706 only if
he determines that “a transition
government is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 1706 and other measures
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 204(d)(1) of that Act repeals
sec. 1706 on President making such a
determination.
Congressional Research Service
8

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 102(h), Cuban Liberty and
Codifies the economic embargo as in Within 31 CFR Part 515, the
Democratic Solidarity (LIBERTAD)
effect on March 1, 1996, including
Secretary of the Treasury retains
Act of 1996 (22 U.S.C. 6032(h))
restrictions stated in regulations at
authority to amend regulations
31 CFR Part 515.
therein, in accordance with 31 CFR
Part 515. 201, which, in part,
provides: “Al of the fol owing
transactions are prohibited, except
as specifically authorized by the
Secretary of the Treasury.... ”
Sec. 204, Cuban Liberty and
Democratic Solidarity (LIBERTAD)
Act (22 U.S.C. 6064) authorizes the
President to suspend the
enforcement of 31 CFR Part 515
only if he determines that “a
transition government is in power in
Cuba.”
Sec. 204, furthermore, requires the
President to terminate the economic
embargo of Cuba, including the
restrictions under 31 CFR Part 515,
if he determines that “a
democratically elected government
in Cuba is in power.”
Sec. 103(a), Cuban Liberty and
Prohibits a U.S. person or entity
Sec. 103(b) provides that the
Democratic Solidarity (LIBERTAD)
from financing any transaction that
President may suspend if he
Act of 1996 (22 U.S.C. 6033(a))
involves confiscated property in
determines a transition government
Cuba where the claim is owned by a
is in power; he may terminate if the
U.S. national.
transition to democracy is met as
stated in secs. 203 and 204.
Sec. 104(a), Cuban Liberty and
Requires the Secretary of the
The President may suspend if he
Democratic Solidarity (LIBERTAD)
Treasury to instruct U.S. executive
determines a democratically elected
Act of 1996 (22 U.S.C. 6034(a))
directors to the international
government is in power.
financial institutions to oppose
Cuba’s admission to such institution.
The President may encourage
membership, and the Secretary of
the Treasury may encourage loans
and assistance, when a transition
government is in power, “to
contribute to a stable foundation for
a democratically elected government
in Cuba.”
Sec. 104(b), Cuban Liberty and
Requires the Secretary of the
The statute requires the United
Democratic Solidarity (LIBERTAD)
Treasury to withhold U.S. payment
States to oppose Cuba’s membership
Act of 1996 (22 U.S.C. 6034(b))
to any international financial
(in sec. 104(a)); it does not require
institution in an amount equal to that opposing any loan or program of an
institution’s loan or assistance to
international financial institution. If
Cuba if that loan is opposed by the
the United States supports a
United States.
program or abstains from a vote, this
requirement would be inapplicable.
Only if the United States opposes a
loan would proportionate
withholding be required.
Congressional Research Service
9

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 111(b), Cuban Liberty and
Requires withholding some foreign
No waiver; however the statute
Democratic Solidarity (LIBERTAD)
aid to any third country in amounts
allows aid to continue for
Act of 1996 (22 U.S.C. 6041(b))
equal to that country’s aid to Cuba
humanitarian needs, disaster relief,
to complete its nuclear facility at
refugee relief, democracy, rule of
Juragua.
law, private sector and NGO
development, free market economy
development, nonproliferation, and
secondary school exchanges.
Title III, Cuban Liberty and
Allow U.S. nationals whose property
The President may suspend the right
Democratic Solidarity (LIBERTAD)
was confiscated by the Cuban
of action for successive 6-month
Act of 1996 (22 U.S.C. 6081-6085)
government a right of action to seek
periods if he determines that such
compensation in U.S. federal court
suspension is in the U.S. national
from those who “traffic” in such
interest and will expedite Cuba’s
property.
transition to democracy. The
President has exercised this
suspension since the law’s
enactment.
Sec. 204 of the Act also authorizes
the President, once he determines
that a transition government is in
power, to suspend the right of action
under title III to the extent that it
contributes to a stable foundation
for a democratically elected
government in Cuba.
Title IV, Cuban Liberty and
Requires the Secretary of State and
Secretary of State may, case-by-case,
Democratic Solidarity (LIBERTAD)
Attorney General to deny entry into
allow entry into the United States
Act of 1996 (22 U.S.C. 6091)
the United States to any person (or
for medical purposes or to attend to
family member of that person) who
litigation actions under title III of the
has confiscated property, or has
Act (relating to protection of
been involved in a related
property rights of U.S. nationals).
transaction, to which a U.S. person
has a claim.
Sec. 906, Trade Sanctions and Export Exports of agricultural commodities,
No waiver.
Enhancement Act of 2000 (22 U.S.C.
medicine, and medical supplies to
7205)
Cuba require a 1-year license and 1-
year contract.
Sec. 908, Trade Sanctions and Export Prohibits U.S. aid for exports to
No waiver.
Enhancement Act of 2000 (22 U.S.C.
Cuba. Limits the means by which a
7207)
U.S. person may finance the sale of
agricultural products to Cuba to
cash in advance or third-country
financing.
Sec. 910(b), Trade Sanctions and
The Secretary of the Treasury may
No waiver.
Export Enhancement Act of 2000
not authorize travel-related
(22 U.S.C. 7208(b))
transactions listed in paragraph (c) of
section 515.560 of title 31, Code of
Federal Regulations, either by a
general license or on a case-by-case
basis by a specific license for travel
to, from, or within Cuba for tourist
activities.

Congressional Research Service
10

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Key Restrictions that Form the Core of the U.S. Economic Sanctions Regime on Cuba: Terrorism
Sec. 620A, Foreign Assistance Act of
Prohibits funding under the Foreign
President may lift restrictions if he
1961 (22 U.S.C. 2371)
Assistance Act of 1961, Agricultural
determines (1) “there has been a
Trade Development and Assistance
fundamental change in the leadership
Act of 1954, Peace Corps Act, and
and policies of the government,” (2)
Export-Import Bank Act of 1945, to
the government does not support
any country the government of
acts of international terrorism, and
which the Secretary of State finds
(3) the government provides
“has repeatedly provided support for assurances that it wil not support
acts of international terrorism.”
international terrorism in the future.
Alternatively, the President may lift
restrictions if he determines that the
government has not supported
terrorism in the preceding six
months, and has provided assurances
that it wil not support international
terrorism in the future.
The President may waive if he
determines it is in U.S. national
security interests or that
humanitarian reasons (for non-lethal
aid) justify a waiver.
Sec. 40, Arms Export Control Act
Prohibits transactions relating to
The Secretary of State may waive
(22 U.S.C. 2780)
providing, directly or indirectly, any
some prohibitions if he determines,
munitions acquisition to any country
after consulting Congress, that
the government of which the
“unusual and compel ing
Secretary of State finds “has
circumstances require” it.
repeatedly provided support for acts
of international terrorism.”
President may lift restrictions if he
determines that (1) “there has been
U.S. persons are prohibited from
a fundamental change in the
exporting, selling, leasing, loaning,
leadership and policies of the
granting, providing, or facilitating the
government,” (2) the government
acquisition of any munitions item
does not support acts of
to/by Cuba.
international terrorism, and (3) the
government provides assurances that
it will not support international
terrorism in the future.
Alternatively, the President may lift
restrictions if he determines that the
government has not supported
terrorism in the preceding six
months, and has provided assurances
that it wil not support international
terrorism in the future.
The President may waive for a
specific transaction if he determines
it is “essential to the national
security of the United States” and
consults with and reports to
Congress.
Congress may block lifting this
restriction by passing a joint
resolution.
Congressional Research Service
11

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 6(j), Export Administration Act
Requires a validated export license,
The Secretary of State may issue
of 1979 (50 U.S.C. App. 2405(j))
with a presumption of denial for
licenses with prior notification to
such issuance, to any country the
Congress.
government of which has repeatedly
provided support for acts of
President may lift restrictions if he
international terrorism.
determines that (1) “there has been
a fundamental change in the
leadership and policies of the
government,” (2) the government
does not support acts of
international terrorism, and (3) the
government provides assurances that
it will not support international
terrorism in the future.
Alternatively, the President may lift
restrictions if he determines that the
government has not supported
terrorism in the preceding six
months, and has provided assurances
that it wil not support international
terrorism in the future.
Sec. 40A, Arms Export Control Act
Prohibits the selling or leasing of
President could delist (list comes out
(22 U.S.C. 2781)
defense articles or defense services
annually by May 15).
to any country that “is not
cooperating ful y with United States
President may waive for a specific
antiterrorism efforts.” Determined
transaction if he finds it “important
annually to apply only to that fiscal
to the national interests of the
year.
United States.”
Sec. 6, Bretton Woods Agreements
Requires the Secretary of the
No waiver. A determination
Act Amendments, 1978 (22 U.S.C.
Treasury to instruct U.S. executive
pursuant to sec. 6(j), Export
286e-11)
directors to the International
Administration Act of 1979 to
Monetary Fund “to work in
remove Cuba from the list of state
opposition to” loans to any state
sponsors of terrorism, however,
that permits entry to any person
could indirectly remove this
who has committed an act of
restriction.
international terrorism, or otherwise
harbors such person.

Additional Restrictions: Foreign Aid, Trade, and International Financial Institutions Programs
Sec. 307, Foreign Assistance Act of
Withholds a proportion of U.S.
No waiver.
1961 (22 U.S.C. 2227)
contributions to the United Nations
and other international programs
operating in Cuba (except UNICEF
and some International Atomic
Energy Agency programs).
Congressional Research Service
12

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 498A(b), (c), Foreign Assistance
Prohibits some foreign aid to any
President may waive if he determines
Act of 1961 (22 U.S.C. 2295a)
government of an independent state
that (1) “it is important to the
of the former Soviet Union that the
national interest of the United
President determines is providing
States” to do so; (2) aid wil foster
assistance for, or engaging in
respect for international y
nonmarket trade with, the Cuban
recognized human rights, rule of law,
government.
development of democratic
governance institutions; (3) aid
alleviates results of a disaster; (4) aid
is for secondary school programs
run by the U.S. Information Agency
(USIA).
Sec. 498A(d), Foreign Assistance Act
Reduces aid to any government of an President may waive if he determines
of 1961 (22 U.S.C. 2295a)
independent state of the former
that it is important to U.S. national
Soviet Union in proportion with that
security. In the case of Russia, must
country’s aid to Cuba’s intel igence
further determine Russia is not
facilities.
sharing intel igence data with the
Cuban government.
Sec. 620(f), Foreign Assistance Act of Prohibits foreign aid to any
President may waive if he finds it is
1961 (22U.S.C. 2370(f))
Communist country, explicitly
vital to the security of the United
naming Cuba.
States, the recipient is not controlled
by the “international Communist
conspiracy,” and aid wil promote
the independence of the recipient.
President may also remove Cuba
from the stated list of communist
countries for any period of time if he
finds it important to U.S. national
interests to do so.
Sec. 620(t), Foreign Assistance Act
Prohibits foreign aid and sales under
Aid and sales may resume when
of 1961 (22U.S.C. 2370(t))
the Food for Peace Act to any
diplomatic relations resume.
government that has, or with which
the United States has, severed
diplomatic relations.
Sec. 620(y), Foreign Assistance Act
Prohibits foreign aid to a third
Prohibition is lifted when Cuba signs
of 1961 (22U.S.C. 2370(y))
country in amounts equal to that
and complies with the Treaty on the
country’s providing nuclear fuel and
Non-proliferation of Nuclear
related assistance to Cuba the
Weapons and the Treaty of
previous fiscal year.
Tlatelelco, negotiates ful -scope
safeguards, and is found in
compliance with the treaties.
Sec. 2(b)(2), Export-Import Bank Act Prohibits Ex-Im Bank funding for
President may determine Cuba has
of 1945 (12 U.S.C. 635(2)(b)(2))
Marxist-Leninist states, explicitly
ceased to be a Marxist-Leninist
naming Cuba.
country.
President may determine that a
specific transaction, or a transaction
of a certain kind, is in the national
interest.
Congressional Research Service
13

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 110, Trafficking Victims
Prohibits nonhumanitarian, non-
Determination made annually:
Protection Act of 2000 (22 U.S.C.
trade-related aid to Cuba for its
Secretary of State could find Cuba in
7107)
failure to comply with minimum
compliance the next fiscal year.
standards or make significant efforts
related to trafficking in persons.
Secretary of State could make a
determination of compliance outside
the annual cycle of reporting.
The President may continue
nonhumanitarian, non-trade-related
aid if he finds it would “promote the
purposes” of the act or is otherwise
in the U.S. national interest.
Sec. 7007, 7015(f), Department of
Sec. 7007: Prohibits direct funding to
No waivers.
State, Foreign Operations, and
Cuba.
Related Programs Appropriations
The two sections apply only to the
Act, 2015 (Division J, P.L. 113-235)
Sec. 7015(f): prohibits aid to Cuba
current fiscal year.
without regular notification
procedures of the Committees on
Appropriations.
Sec. 12, International Development
Requires the President to instruct
The President may determine that
Association Act (22 U.S.C. 284j)
U.S. executive directors to the
(1) arrangements for compensation
relevant international financial
have been made; (2) the issue has
Sec. 21, Inter-American
institution to oppose loans to any
been submitted to arbitration; or (3)
Development Bank Act (22 U.S.C.
state that has nationalized,
good faith negotiations are
283r)
expropriated, or seized property
underway.
owned by a U.S. citizen; canceled
contracts with a U.S. citizen;
imposed discriminatory taxes that
have the result of property seizure.
Congressional Research Service
14

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 401, Tariff Classification Act of
Requires Cuba to be treated as a
The restrictions ceases to apply “on
1962 (19 U.S.C. 1351 note)
nation “dominated or control ed by
or after the date on which the
the foreign government or foreign
President proclaims that he has
organization controlling the world
determined that Cuba is no longer
Communist movement,” resulting in
dominated or controlled” by such a
denying articles that are “the growth, foreign power.
produce, or manufacture of Cuba”
favorable trade terms.
The U.S. Harmonized Tariff Schedule
(HTS) designates Cuba in the most
restricted trade category (“Column
2”) pursuant to this provision and
other trade laws as follows:
“b) Rate of Duty Column 2.
Notwithstanding any of the foregoing
provisions of this note, the rates of
duty shown in column 2 shall apply
to products, whether imported
directly or indirectly, of the following
countries and areas pursuant to
section 401 of the Tariff
Classification Act of 1962, to section
231 or 257(e)(2) of the Trade
Expansion Act of 1962, to section
404(a) of the Trade Act of 1974 or
to any other applicable section of
law, or to action taken by the
President thereunder: Cuba, North
Korea.”
Sec. 401, Trade Act of 1974 (19
Continues to deny
The President may temporarily
U.S.C. 2431)
nondiscriminatory trade treatment
waive or lift by entering into a
for countries that were so denied
bilateral commercial agreement (sec.
prior to enactment of this title.
405; 19 U.S.C. 2435), and may
temporarily extend
nondiscriminatory terms (sec. 404;
19 U.S.C. 2434).
Granting permanent
nondiscriminatory trade treatment
(Normal Trade Relations, or NTR),
however, requires an act of
Congress (sec. 151; 19 U.S.C. 2191).
Congressional Research Service
15

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 402, Trade Act of 1974
Continues to deny
President may suspend temporarily,
(Jackson-Vanik Amendment; 19
nondiscriminatory trade treatment
and may renew the suspension
U.S.C. 2432)
for countries that were so denied
semiannual y (by June 30 and
prior to enactment of this title,
December 31) if he determines and
including countries under sec. 401,
notifies Congress that the
communist countries, or non-market government of Cuba does not (1)
economies (as defined in the Senate
deny its citizens the right or
report accompanying H.R. 10710,
opportunity to emigrate; (2) impose
93rd Congress, enacted as the Trade
more than a nominal tax on
Act of 1974).
emigration and documents required
to emigrate or travel; or (3) impose
more than a nominal tax on a citizen
as a result of that citizen’s desire to
emigrate.
President may suspend temporarily,
with annual renewal, by issuing an
executive order stating that (1)
waiving wil promote the objectives
of Jackson-Vanik; and (2) “he has
received assurances that the
emigration practices of that country
wil henceforth lead substantial y to
the achievements of the objectives of
the section.”
Congress may block the President’s
initial determinations (sec. 152; 19
U.S.C. 2192), or extension of waiver
(sec. 153; 19 U.S.C. 2193).
Granting permanent
nondiscriminatory trade treatment
however, requires an act of
Congress (sec. 151; 19 U.S.C. 2191).
Removal of Jackson-Vanik
restrictions, however, does not
require NTR status (the President
may exercise the above-described
waiver authority).
Sec. 502(b), Trade Act of 1974 (19
A country is denied “beneficiary
President may waive if he finds it in
U.S.C. 2462(b))
developing country” status under the the national economic interest of the
Generalized System of Preferences if
United States to do so.
it is a Communist country, and if it
has expropriated property of a U.S.
citizen.
Congressional Research Service
16

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 212, Caribbean Basin Economic
Cuba is not eligible for CBERA
Congress would have to amend sec.
Recovery Act (19 U.S.C. 2702)
benefits because it is not listed in
212(b) to add Cuba to the list of
sec. 212(b). In addition, a country is
countries eligible for CBERA
denied “beneficiary country” status
designation. Once listed, the
under the CBERA if it is a
President could designate Cuba as
Communist country; has
beneficiary country, despite other
nationalized, expropriated, or seized
restrictions, if he finds it in the
property owned by a U.S. citizen;
national economic interest of the
canceled contracts with a U.S.
United States to do so, except if the
citizen; imposed discriminatory taxes country affords preferential
that have the result of property
treatment to products of a
seizure; fails to recognize certain
developed country other than the
arbitral awards in favor of a U.S.
United States (unless there is no
citizen, corporation, partnership, or
significant adverse effect on U.S.
corporation; affords preferential
commerce), and is a signatory to an
treatment to products of a
agreement regarding the extradition
developed country other than the
of U.S. citizens.
United States (unless there is no
significant adverse effect on U.S.
commerce); if a government-owned
entity engages in the broadcast of
U.S.-owned copyrighted material
without express consent; is not a
signatory to an agreement regarding
the extradition of U.S. citizens; and
has not or is not taking steps to
afford internationally recognized
worker rights.
Sec. 902, Food Security Act of 1985
Denies a sugar import quota to Cuba Sec. 204, Cuban Liberty and
(7 U.S.C. 1446 note)
or third countries trading in Cuba-
Democratic Solidarity (LIBERTAD)
origin sugar.
Act (22 U.S.C. 6064) authorizes the
President to suspend the
enforcement of sec. 902 if he
determines “a transition government
is in power in Cuba.”
Sec. 204, furthermore, requires the
President to terminate sanctions
under sec. 902 and other measures if
he determines that “a democratical y
elected government in Cuba is in
power.”
Sec. 204(d)(1) of that Act repeals
sec. 902 on President making such a
determination.
Congressional Research Service
17

---

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

Statutory Basis
Restriction
Authority to Lift or Waive
Sec. 211, Omnibus Consolidated and
Prohibits a transaction or payment
No waiver.
Emergency Supplemental
with respect to a mark, trade, name
Appropriations Act, 1999 (Division
or commercial name that is the same
A, Title II, P.L. 105-277)
as or substantially similar to a mark,
trade name, or commercial name
used in connection with a business
or assets that were confiscated.
Prohibits U.S. courts from
considering or enforcing trademark
claims of a Cuba national, or their
successor in interest, regarding
property confiscated by the Cuban
government.




Author Contact Information

Dianne E. Rennack
Mark P. Sullivan
Specialist in Foreign Policy Legislation
Specialist in Latin American Affairs
drennack@crs.loc.gov, 7-7608
msullivan@crs.loc.gov, 7-7689


Congressional Research Service
18

---