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The United States Department of Commerce, through its Bureau of Industry and Security (BIS), has determined that the possibility of using the "Support for the Cuban People" (SCP) License Exception is suspended for operations related to exports or reexports to Cuba that involve the deposit of foreign funds in a bank owned by Cuba.
The measure directly impacts the methods of collecting and channeling payments for gas and petroleum products intended for the private sector on the island, including small and medium enterprises (mipymes). The suspension is in effect starting this Wednesday, March 4, 2026.
In the document, BIS argues that there are “prolonged and documented issues” of diversion and commission charges associated with Cuban banking, and emphasizes that several banks are on the Restricted List (Cuba Restricted List) due to their connections with military, intelligence, or security institutions.
Under this logic, Washington argues that allowing fund deposits in Cuban state banks could generate income or contribute to the functioning of the state apparatus, something that—according to BIS—is contrary to the goal of SCP, which is designed to support "independent" economic activity in Cuba.
What changes for fuel sales to the private sector?
The determination of BIS specifically suspends the availability of SCP § 740.21(b)(1) "for any export, reexport, or transfer (within the country) that involves the deposit of foreign funds in a bank owned by Cuba".
In practice, the notice makes it clear that the U.S. does not want these operations to be processed using Cuban banks when the payment involves injecting foreign currency into the island's state banking system.
BIS specifies that the suspension does not apply to exports/reexports/transfers that do not involve Cuban banks, for example, transactions that use banks from third countries or “other payment systems” that do not require depositing foreign funds in Cuban banks.
Transition window for "in route" shipments
The document also includes a transitional clause: the suspension does not apply to exports or reexports that were already in transit on March 4, 2026, to a port of export or reexport, provided that the operation was based on actual orders and is completed by April 3, 2026, at the latest.
In a section titled "updated guide," BIS explains that, as a general rule, a license is required to export/reexport gas and other petroleum products to Cuba under the applicable regulations, but it reminds exporters to assess whether an exception license is available.
In this context, BIS states that if the requirements are met, the SCP Exception License may authorize the export/reexport of these products for private sector use, including activities that address humanitarian needs.
The document distinguishes two paths within SCP:
- § 740.21(b)(1): for goods intended for the private sector and for economic activities of the private sector, with the caveat that SCP does not apply if the transaction primarily generates income for the State or contributes to its operation.
- § 740.21(b)(2): for products sold "directly" to individuals in Cuba for personal or immediate family use, with additional restrictions on prohibited recipients and entities linked to the government (including those on the Cuba Restricted List).
The BIS message indicates that fuel for the Cuban private sector may be eligible for authorizations under the SCP Exception License.
On the other hand, it draws a red line in the financial mechanism by suspending the use of SCP when the operation involves depositing foreign funds in Cuban banks, pushing for payments to be made through channels that do not go through the Cuban state banking system.
In this regard, Eric Martin, spokesperson for the State Department, specifies that financial institutions from third countries (for example, Spain, Panama) are still authorized for these purposes.
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