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Cuban Cigars Legal in the US Soon?

Posted: Thu Dec 18, 2014 12:51 am
by BootCampBob
This was in a Cigar Aficionado newsletter today:

Major Changes to U.S.-Cuba Relations
David Savona
Posted: December 17, 2014
37

Today, the United States government announced sweeping changes to its longstanding embargo against Cuba. Soon there will be a U.S. embassy in Havana; Americans will be allowed to send more money to Cuba, both for relatives and for the development of business; and Americans visiting the island will be able to return to the U.S. with some Cuban products, including Cohibas and other Cuban cigars.

These moves are not an end to the embargo, and President Barack Obama needs Congress to fully normalize relations. In his speech today at noon from the White House, he said he would reach out to Congress to begin talks to end the embargo.

Today's actions are the result of high-level, direct discussions between the U.S. and Cuban governments, including a conversation lasting approximately one hour between President Obama and Cuban President Raúl Castro that led to the release of prisoners held by both countries, including Alan Gross, an American who had been held in Cuba for five years, and an unnamed American spy who was incarcerated in Cuba for nearly 20 years.

These are the biggest changes in U.S.-Cuba policy since the embargo as we know it began in 1962.

"In the most significant changes in our policy in more than 50 years, we are going to end an outdated approach that, for decades, has failed to advance our interests. And, instead, we will begin to normalize relations between our two countries," said President Obama.

President Obama spoke frankly about the embargo, calling it a policy that has not worked. "It has had little effect," he said, "beyond providing the Cuban government with a rationale for providing restrictions on its people. Today, Cuba is still governed by the Castros and the communist party that came to power half a century ago."

The changes are dramatic, if not complete. This news does not mean that Cuban cigars and other goods will appear in U.S. cigar shops tomorrow morning, but it does pave an important first step—and a big one—toward establishing normalized relations between the two countries.

Secretary of State John Kerry will immediately begin official talks with Cuba, which have been essentially nonexistent since January 1961. The U.S. embassy in Havana will be re-established, marking the first time since 1961 that the U.S. would have a formal embassy in Cuba. (The U.S. presently has an Interests Section in Cuba, which is not an official embassy.)

The flow of money to Cuban nationals (excluding certain government officials) by Americans will be vastly increased, from $500 per quarter to $2,000 per quarter, with no limit on donations for humanitarian efforts. U.S. businesses will have an easier time sending goods to Cuba and setting up financing on the island. President Obama spoke of Americans being allowed to use U.S. credit and debit cards on the island, something that has been prohibited.

The changes seem to favor the flow of U.S. goods to Cuba, while still largely curtailing the flow in the opposite direction. And while tourism will not be openly allowed under these new policies, and most Americans will still be prohibited from traveling to Cuba, those who are able to travel (including those with family in Cuba, people on humanitarian missions, journalists) will have an easier time getting there.

"It will be easier for Americans to travel to Cuba," said Obama. For the first time since the Bush Administration, travelers who go on a trip between Cuba and the U.S. will be permitted to return to the U.S. with up to $400 in Cuban goods. Only $100 of those goods can be tobacco or alcohol. Since most boxes of 25 Cuban cigars sell for more than $100 in Havana, in many cases travelers will be prohibited from legally bringing back a full box of cigars.

A source at the U.S. Department of the Treasury, speaking on background, said the limits would apply only to authorized trips between Cuba and the U.S. American travelers going to third-party countries such as France or the United Kingdom could not legally bring Cuban cigars (or any other Cuban products) to the U.S. upon their return. “Travelers to other parts of the world will not be permitted to bring in Cuban cigars,” the source said. The source expected the regulations to be revised “in the coming weeks.”

President Obama emphasized human rights several times in his speech, and noted the damage the embargo has done to ordinary Cubans, if not the government in power. "U.S. engagement will be critical when appropriate and will include continued strong support for improved human rights conditions and democratic reforms in Cuba and other measures aimed at fostering improved conditions for the Cuban people," he said. "We should not allow U.S. sanctions to add to the burden of Cuban citizens."

Each of these changes centered around an exchange of prisoners between Cuba and the U.S. This morning, Cuba released Alan Gross, an American citizen who had been held captive in Cuba since 2009. Gross flew from Havana to the U.S. this morning, landing at Andrews Air Force Base in Maryland where he was shown being greeted by Secretary of State Kerry. Gross, 65, was arrested in December 2009 and imprisoned for distributing electronics and computer equipment in Cuba, a country where Internet access is strictly limited for citizens.

Cuba also released another American prisoner, a spy who had been imprisoned by Cuba for close to two decades.

In return, the U.S. freed three members of the so-called "Cuban Five," a group of Cubans who were arrested in 1998 and had been imprisoned by the U.S. after being convicted of espionage. Posters and billboards asking to "Free the Cuban Five" are common sights for visitors to Cuba.

Sen. Marco Rubio (R-Florida), speaking on CNN this morning, felt that the U.S. was giving up too much in this arrangement, and the Cuban government was doing too little to justify these moves.

This move, said Rubio, meant the Cubans were providing "No democratic opening, no freedom of the press, no freedom of organization or assembly, no elections, no politicial parties, no democratic opening at all. ... It is a lifeline to the Castro regime that will allow them to become more profitable. The Cuban people are even further away from democracy."

Others saw this as a move in the right direction.

"Opening the door with Cuba for trade, travel and the exchange of ideas will create a force for positive change in Cuba that more than 50 years of our current policy of exclusion could not achieve," said Sen. Dick Durbin (D-Illinois).

"Obama has finally advanced the interests of U.S. policy by ending the perpetual hostility in relations between Washington and Havana," said Peter Kornbluh, an author of several books on U.S.-Cuba relations, in an email sent from Havana this morning. "He has brought U.S. policy from its anachronistic past into the modern world."

"For cigar smokers in America, Cuban cigars have long been the forbidden fruit. The cigar business was born in Cuba, and cigars made in Havana have a worldwide reputation for excellence. We yearn for the day when our readers can have the opportunity to legally buy and enjoy cigars from every country," said Marvin R. Shanken, editor and publisher of Cigar Aficionado magazine. "Today marks the biggest change in U.S.-Cuba relations since 1961. This does not mean the end of the embargo, but it's the dawn of a new day that brings the United States and Cuba a big step closer to normal relations. For cigar smokers, there is the promise of something bigger to come."

President Obama has long showed hints that he was open to easing the longstanding animosity between the U.S. and Cuba. In March, 2009 President Obama signed a Senate appropriations bill into law that made it easier for Cuban-Americans to visit relatives in Cuba, and also paved the way for more business travelers to go to the island. In 2011, he greatly expanded the number of U.S. airports that could host flights to Cuba, and he made headlines in December 2013 when he shook hands with Raúl Castro at the funeral of Nelson Mandela.

Andrew Nagy and Gordon Mott contributed to this story.

Re: Cuban Cigars Legal in the US Soon?

Posted: Thu Dec 18, 2014 3:23 am
by jimbobber
Nope.

Re: Cuban Cigars Legal in the US Soon?

Posted: Thu Dec 18, 2014 11:14 am
by Shemp
i see a wall of words there. Did you expect me and others to read all that?

Re: Cuban Cigars Legal in the US Soon?

Posted: Thu Dec 18, 2014 1:05 pm
by BootCampBob
[quote author=Shemp link=topic=31216.msg132720#msg132720 date=1418901243]
i see a wall of words there. Did you expect me and others to read all that?
[/quote]
If it was that effective, maybe we should construct a wall of words at the US - Mexican border. That might slow 'em down.  :cop:

Re: Cuban Cigars Legal in the US Soon?

Posted: Sat Dec 20, 2014 3:20 pm
by cigarlover888
[quote author=BootCampBob link=topic=31216.msg132721#msg132721 date=1418907954]
If it was that effective, maybe we should construct a wall of words at the US - Mexican border. That might slow 'em down.  :cop:
[/quote]

:owned:

Re: Cuban Cigars Legal in the US Soon?

Posted: Sat Dec 20, 2014 6:06 pm
by Duc21
[quote author=BootCampBob link=topic=31216.msg132721#msg132721 date=1418907954]
If it was that effective, maybe we should construct a wall of words at the US - Mexican border. That might slow 'em down.  :cop:
[/quote]
LOL

Re: Cuban Cigars Legal in the US Soon?

Posted: Sun Dec 21, 2014 1:37 am
by Johnny-O!
Smoke and Mirrors, old Havana Tricks....John

Re: Cuban Cigars Legal in the US Soon?

Posted: Sun Dec 21, 2014 3:27 pm
by dave400
duct tape and bondo are the real havana tricks.

Re: Cuban Cigars Legal in the US Soon?

Posted: Tue Dec 23, 2014 4:24 am
by polarbear
I got this from another forum but think it outlines the hurdles to Cuban Cigars in the US pretty well

This week's announcement of more normal diplomatic relations between the United States and Cuba is welcome news for many reasons. Americans will now have somewhat fewer restrictions on travel, business, and banking on the island, and they will be allowed to send higher remittances to family living there. In Cuba, the deal includes the release of political prisoners and a promise of expanded Internet access. Yet the one benefit that captures the imagination of many is the possibility that Cuba's most famous export, cigars, may finally become legally available in the United States.
1. The embargo Is Still in PlaceIf only it were that simple. Even in a best case diplomatic scenario, we're still a long way from finding Cuban cigar brands at our local tobacconists. Here are three obstacles to getting Cuban tobacco into the U.S.
Removing the embargo on Cuban imports that has been in place since 1962 would require an act of Congress. The new rules allow American travelers to return with up to $400 of Cuban goods, of which only $100 can be alcohol or tobacco for personal use. This is still a long way from allowing commercial importation. As before, any significant trade in Cuban cigars will be on the black market.
2. Trademark Battles Will Be Complicated
The United States is the world’s largest market for premium cigars and our embargo with Cuba has essentially divided the global market in two: us and everybody else. Our embargo has created dueling trademarks for cigars. Cuban brands such as Romeo y Julieta, Cohiba, Partagas, Hoya de Monterey, Bolivar, and Punch are sold around the world. But since the United States does not recognize the Cuban trademarks, cigars of non-Cuban origin with identical brand names are sold here. (It should also be mentioned that the original owners of many of these brands had their assetsseized by the Cuban government and had to rebuild their businesses in exile.)
Some of these dueling brands are linked through international subsidiaries, but others are in direct competition. The General Cigar Company owns many of these trademarks in the United States, and markets them domestically. A legal dispute over the General Cigar and Cuban claims on the Cohiba trademark has dragged on since 1997 and still has not been resolved. (Rum enthusiasts will face similar complications. The much sought after Havana Club rum is sold internationally by Pernod Ricard, but Bacardi owns the trademark in the United States. The two companies have been fighting for years. If the market opens, Pernod Ricard will likely have to sell Havana Club under the name Havanista in the U.S.)
So even if the embargo is lifted entirely, the transition to allowing Cuban cigars won’t be a smooth one. Many of the Cuban cigars one can currently buy abroad would violate trademarks if imported to the U.S. Companies will have to fight this out in court or come to mutually beneficial agreements. Other likely outcomes are that Cuban products will be marketed under different names in the U.S, or that non-Cuban companies will create their own Cuban cigars or begin using exported Cuban tobacco in their blends. In any case, buying that Cuban Partagas Lusitania I enjoyed so much won’t be as simple as stepping into the nearest cigar store, at least in the short term.
3. The FDA Could Ruin Everything
If the embargo is lifted and the trademark disputes are worked out, then we can buy Cuban cigars, right? Wrong.
When Barack Obama signed the Family Smoking Prevention and Tobacco Control Act in 2009, regulatory power over tobacco was granted to the Food and Drug Administration (FDA). Initially the FDA focused on cigarettes and smokeless tobacco, but earlier this year the agency announced plans to extend its authority to other tobacco products, including cigars.
The FDA has outlined two approaches to doing this. The agency’s so-called “Option 2″ would create an exemption for premium cigars, allowing them to be sold under less scrutiny than cigarettes. The proposed standards for this exemption are problematic in a couple ways, such as setting an effective price floor for cigars and banning all characterizing flavors (see my article in the Daily Beast for details). Despite these flaws, Option 2 would leave the door open for eventual Cuban imports.
The FDA’s “Option 1”, however, would be very bad news for new cigars of all kinds, including Cubans. Option 1 treats cigars just like cigarettes. Under the Tobacco Control Act, any tobacco products that were not commercially marketed in the United States as of February 15, 2007, must receive explicit approval by the FDA before being introduced. Winning approval is virtually impossible. As of my last coverage on the topic for Reason, only two new cigarettes had ever made it through the process, while thousands of product applications continue to languish in bureaucratic limbo.
There were a lot of cigars legally on the market in 2007, but obviously none of them were Cuban. We don’t know yet know which option the FDA will choose, but Option 1 would have a disastrous impact on innovation in the cigar market. All Cuban imports and any new Cuban blends would have to get past FDA regulators, whose record on cigarettes suggests that this would be a very high hurdle. It's plausible that President Obama will be remembered both for helping end the Cuban embargo and for signing the poorly crafted Tobacco Control Act that creates a de facto embargo on Cuban cigars all over again.
I’m keeping my fingers crossed for something like Option 2. It is possible that the FDA could move the date for grandfathering in new products forward from 2007; several congressmen, including Speaker of the House John Boehner (R-Ohio), recently urged the FDA to do so in light of the law's impact on cigars and e-cigarettes.
The eased relations with Cuba are a good reason for breaking out the cigars, but for now smokers may want to follow the lead of John F. Kennedy and keep their own stash of Cubans intact. Given political opposition to removing the embargo, complicated battles over trademarks, and byzantine regulations imposed by the FDA, I suspect that I’ll be slipping Cubans into my luggage on trips abroad for many years to come.

Re: Cuban Cigars Legal in the US Soon?

Posted: Thu Jan 22, 2015 3:03 am
by Ninja
I want to expand this discussion a bit and get others options and information. Before I start I will say that polarbear's post has real concerns, but I think all of these can be overcome without too much difficultly and the trademark thing is being worked on behind closed doors and has been for awhile now.

So here is the thing. I had a buddy tell me on the island (that is connected well, esp in cigars) and he told me early last year that the embargo was ending soon. Cuba has been building a new receiving/distribution warehouse in between Havana and Pinar and it is huge and has water access. It has been totally hush hush. He told me then they were preparing for the embargo to be lifted. I poo poo'ed it a bit as I believed it would be 5 years more but with more presidential exceptions added for exports. Now it appears there is a fast track to get this done. When I talked to him in Dec, I mentioned it may be possible in 2 years. His thought was 9 months. He has been more right so far.

So these talks have been going strong for over 2 years and with credible intent. One of my friends in the states makes a good argument that the Spanish ambassador has been our intermediary. There is some definite momentum here, and a lot going on behind close doors. One question is how will pressure be applied to Congress to approve. Congress just wants to get re-elected, so if that can be achieved, they will be in. Business in all their states could potentially benefit.

Also, my friend says he does not think Habanos will abandon their partners in other countries, who stuck by them when things were tough, just to send more smokes to the states. He estimates 5-7 million cigars total shipped to the US, which is less than .5% of the market share according to him. But the real winners will be the international shops that will be able to sell and ship to the US directly.

So on the island, this is looking very real and they are taking it very seriously. Habanos has not chosen a distributor yet, and my friend told me this is the biggest thing they have to work out. Another US friend makes a good case that JR is probably at the front of that list. They may do multiple distributors for different parts of the US too. But they are unfamiliar with how easy shipping is here in the US.

So I am very interested in thoughts or other intel that members have come across as we continue to watch this sage unfold.