Will NC cigars be selling in Cuba soon ?

[laficion]

Here is some breaking news on a series of new amendments added to the

CUBAN ASSETS CONTROL REGULATIONS which would give new opportunities

for US-made or US marketed cigars to be sold in Cuba.

Yes , you have read correctly, NC's may soon find their

way to Cuba, as long as the reverse does not happen.

Will this be a new era opening up to US-makers or US marketed cigar companies

to recreate the lost Clear Havana Cigar ? The worse part of this story is

that all this is under the label of, "Agricultural Commodities Aid to Cuba "

with no counterpart, in other words, no Cuban cigar can be sold in the US.

I find that this is the first step for many US cigar brands

and cigar makers to eventually get their way through to

cuban tobacco and a way for them to set things up

and ready for when the embargo ends.

Thanks to the US Treasury & The US Department of Agriculture,

Who's helping who or, who's helping themselves ?

News & Views article "On the way to Cuba today?" in CIGARCYCLOPEDIA . COM

From, September 9th 2009

Perelman & Pioneer Company

Los Angeles, September 9, 2009 – The U.S. Treasury, working in conjunction with the U.S. Department of Agriculture has significantly relaxed travel restrictions to Cuba in a way that might allow U.S.-based cigar makers to travel fairly freely to the island.

Regulations issued on Tuesday noted a series of amendments being made to the Cuban Assets Control Regulations (31 C.F.R. Part 515) that create “a new general license for travel-related transactions incident to agricultural and medical sales” under the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) as amended earlier this year. The Treasury’s news release reads, in pertinent part:

The new general license authorizes, with certain conditions, travel-related transactions that are directly incident to the commercial marketing, sales negotiation, accompanied delivery, or servicing in Cuba of agricultural commodities, medicine, or medical devices that appear consistent with the Department of Commerce’s export or reexport licensing policy.

There are licenses to be applied for and reports which must be filed, of course, with the Treasury’s Office of Foreign Assets Control (OFAC), but the opportunity now exists – with reduced obstacles – for cigar makers in the U.S. to visit Cuba for the purposes of marketing cigars sold in the U.S. for sale to Cubans!

It’s almost impossible to imagine such a thing, but with Cuban production focused completely on sales for hard currency, perhaps low-cost brands for the Cuban domestic market could be sold. Or is it time for Cubans to be able to compare for themselves, head to head, famous Cuban brands against outstanding brands on the U.S. market such as Arturo Fuente, Excalibur, Macanudo or Padron?

In any case, it’s worth noting that cigars are specifically listed in Chapter 24 as category 2402.10 of the U.S. Department of Agriculture’s “Commodities Eligible for Shipment to Cuba” It seems hard to imagine, but the U.S. government is all for selling U.S.-made or U.S.-marketed cigars to Cuba, so long as the reverse does not occur.

At the same time, the OFAC has considerably lightened its prosecution of individuals who purchased Cuban cigars over the Internet, or otherwise brought them into the U.S. Through August 31 of 2009, OFAC reports of civil penalties imposed noted only one case of an individual being fined for buying Cuban cigars this year, with an accompanying fine of $1,175.00. In contrast, at the same point in 2008, OFAC had leveled 27 fines at cigar purchasers and imposed fines totaling a hefty $39,763.08.

[tigger]

I have a hard time envisioning the Cuban government allowing sales of Non-cuban cigars to occur.

I think we'd probably already see it happening with Non-U.S. based brands, and to my knowledge it's not happening.

[anacostiakat]

This is unacceptable!

[Punch Joe]

I find this tricky. On one side, it could be somehow interesting to get NC´s in some places in Cuba, but..who is the target? Is there room for NC´s specially here? Guessing what the price tag would be...hmmm right, not affordable for 90% of the smoking population. Is that a business stimulus or what? they wouldn´t be allowed to be sold in Las Casas del Habano for obvious reasons. Maybe they must invest in their own facilities which I think it is going to be expensive unless they are happy to go to the Hotel shops and restaurants. I see this as a major risk investment now. What would be interesting to see is how the government may allow the sales of NC´s in their own playground and have a little bit of competition in terms of sale performance. I think the State wouldn´t be so happy with that...

[Tampa1257]

That is absolutely the worst thing that could ever happen. There are NO NC Manufacturers that should ever get their hands on good quality Cuban Tobacco.

I agree with Jose, the Price would be so restrictive that no one could afford the NC's. No sales, No market, WTF???

[cigarros]

Strange news, strange trade policy.... 99% of smoking tourists will buy CC, NC they can find everywhere outside. If you're visit Cuba no questions what you will smoke? Only CC, I don't understand logic of promoters of NC on island)) lol

[El Presidente]

I am all for it.

Let Perdomo, Torano and others invest a couple of Million each in setting up their own benchmark divans in havana. They will get royally pissed off when people use their new facilities to smoke cubans. They won't last 18 months.

the reality is that sales in Havana are already down 30%. NC's will be taxed to non existance.

[Ellery]

I would love to see the NCs fail

[laficion]

I find this tricky. On one side, it could be somehow interesting to get NC´s in some places in Cuba, but..who is the target?

Again, let me make it clear that I have nothing against NC's, but José

has asked the right question.

Here are the words that scare me the most in this article,

" but with Cuban production focused completely on sales for hard currency, perhaps low-cost brands for the Cuban domestic market could be sold."

History has always found a way of repeating itself and we have all seen in where countries,

who had hard economic problems, exporting the total production of their high quality products

and in exchange, recieving aid in the form of lower quality products for their domestic needs.

In the case of Cuba and American "Agricultural Aid to Cuba", I don't know which side would

profit from this the most. What I am sure of is that it would really piss me off to know that

if this goes through, the average cuban will have no choice but to smoke imported tobacco

in the form of aid to his country.

[Habanos2000]

I don't see NC manufacturers selling low-cost cigars into Cuba, just doesn't make sense. As a loose comparision, how much low-cost California wine gets sold into France? Not much, I imagine.