U.S.-Cuba Trade and Economic Council, Inc. New York, New York Telephone (917) 453-6726 • E-mail: [email protected] Internet: http://www.cubatrade.org • Twitter: @CubaCouncil Facebook: www.facebook.com/uscubatradeandeconomiccouncil LinkedIn: www.linkedin.com/company/u-s--cuba-trade-and-economic-council-inc- Will Israel Shipping Company About To IPO In U.S. Become 33rd Libertad Act Lawsuit? Will Trump Administration Intervene? Jared Kushner’s Possible Final Project Haifa, Israel-based ZIM Integrated Shipping Services Ltd. (2019 revenues US$3.3 billion) which owns one vessel and charters sixty-nine vessels, provides services from the United States to the Republic of Cuba including to Terminal de Contanedores de Mariel SA (TC Mariel). On 30 December 2020, ZIM Integrated Shipping Services Ltd. filed with the United States Securities and Exchange Commission (SEC) a registration statement on Form F-1 for an Initial Public Offering (IPO) in the United States. The company expects to raise US$300 million to US$500 million providing the company with a market capitalization of US$1.5 billion. New York, New York-based Citigroup Inc., New York, New York-based Goldman Sachs & Co., LLC., and London, United Kingdom-based Barclays plc are global coordinators and New York, New York-based Jefferies Group LLC and Oslo, Norway-based Clarksons Platou Securities AS act as joint bookrunners for the proposed offering. Mr. Eyal Ofer, a member of the family that controls ZIM Integrated Shipping Services Ltd., has since 1995 served as a Director of Miami, Florida-based Royal Caribbean Group (2019 revenues US$10.9 billion). Ofer family members have been major shareholders of Royal Caribbean Group. From the 2019 Form 10-K filing: “On August 27, 2019, two lawsuits were filed against Royal Caribbean Cruises Ltd. in the U.S. District Court for the Southern District of Florida under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act.” On 20 December 2020, Jacksonville, Florida-based Crowley Maritime Corporation (2019 revenues approximately US$2.5 billion) and Miami, Florida-based Seaboard Marine, a wholly- owned subsidiary of Merriam, Kansas-based Seaboard Corporation (2019 revenues of US$6.8 billion) were named as defendants in separate lawsuits filed using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). Both companies provide services to the Republic of Cuba including to TC Mariel. Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset. Thus far, thirty-two Title III lawsuits have been filed in jurisdictions throughout the United States. The Revolutionary Armed Forces (FAR) of the Republic of Cuba-controls Grupo de Administración Empresarial S.A. (GAESA), which has interests in the tourism, financial investment, import/export, and remittance sectors. The Special Development Zone of Mariel (ZEDM) is managed by Republic of Cuba government-operated Almacenes Universales S.A., a subsidiary of GAESA. Almacenes Universales S.A. focuses upon “professional, technical and skilled workers linked to logistics activities, warehousing, transportation and port activities.” U.S.-Cuba Trade and Economic Council, Inc. GAESA is on the State Department’s List of Restricted Entities and Subentities Associated with Cuba (“Cuba Restricted List” or “CRL”). The CRL is a list of entities and subentities “under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba.” GAESA is on the List of Specially Designated Nationals and Blocked Persons by the OFAC pursuant to the Cuban Assets Control Regulations (CACR), 31 C.F.R. part 515. Since 2013, vessels from the United States and other countries have been calling at TC Mariel, located approximately forty (road) miles from the city of Havana. TC Mariel is managed by Singapore-based PSA International Pte Ltd (2019 revenues approximately US$4 billion). The container terminal is within the 180-square-mile ZEDM. The facility has 2,300 feet of jetty and four quay cranes which can accommodate 13,000 TEU Neo-Panamax vessels. Salvador, Brazil-based Odebrecht (2016 revenues approximately US$30 billion; now in bankruptcy) was the primary contractor for TC Mariel and ZEDM. Approximately US$683 million in primary financing was provided by Brasilia, Brazil-based National Bank of Economic and Social Development (BNDES) of Brazil. Institutions in China and Venezuela also provided financing. Companies servicing TC Mariel include: Brooklyn Park, Minnesota-based MM Shipping & Freight Forwarding LLC; Copenhagen, Denmark-based Maersk A/S; Geneva, Switzerland-based Mediterranean Shipping Company S.A.; Haifa, Israel-based ZIM Integrated Shipping Services Ltd.; Hamburg Germany-based Hamburg Sud; Hamburg, Germany-based Hapag-Lloyd AG Jacksonville, Florida-based Crowley Maritime Corporation; Marseille, France-based CMA CGM S.A.; Rotterdam, The Netherlands-based W.E.C. Lines B.V.; Shanghai, China-based China Shipping (Group) Company; Shanghai, China-based COSCO Shipping Lines Co.’ Ltd. South Holland, Netherlands-based Nirint Shipping B.V.; and Taipei, Taiwan-based Evergreen Marine Corporation. Title III Lawsuits Against Crowley Maritime And Seaboard Marine On 2 May 2019, the Trump Administration made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset. Thus far, thirty-two Title III lawsuits have been filed in jurisdictions throughout the United States. Libertad Act Title III exceptions to the definition of “trafficking” include “transactions and uses of property incident to lawful travel to Cuba, to the extent that such transactions and uses of property are necessary to the conduct of such travel; or transactions and uses of property by a person who is both a citizen of Cuba and a resident of Cuba, and who is not an official of the Cuban Government or the ruling political party in Cuba.” There is no visible exception for non-travel- related activity. The Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 re-authorized the direct commercial (on a cash basis) export of food products (including branded food products) and U.S.-Cuba Trade and Economic Council, Inc. agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose. The TSREEA does not include healthcare products, which remain authorized and regulated by the Cuban Democracy Act (CDA) of 1992. For the period December 2001, the first exports using the TSREEA, through October 2020 (latest data), total exports using the TSREEA exceed US$6,270,742,423.00. In twelve of nineteen years, poultry (transported in containers) was the largest U.S. Dollar value export. Currently, United States TSREEA exporters receive control of payment from the Republic of Cuba prior to product departing United States ports. Previously, United States exporters received control of payment when the vessel arrived to the Republic of Cuba, but had not yet been unloaded. From the two recent (31st and 32nd) lawsuit filings: “The fact of the confiscation of the Blanco Rosell Siblings’ property in Cuba was so well known that, on April 18, 2019, the day after the Trump Administration announced that it would allow Helms-Burton Act lawsuits under Title III to go forward, stories published on both Radio Marti and TV Marti identified Plaintiff’s claims to the Mariel Special Development Zone as one of the top 10 potential Helms-Burton Claims: The Mariel Special Development Zone, the star Cuban project to attract investment, was built on nationalized land where the Carranza-Bernal, Carbonell-González and Blanco-Rosell families owned sugar and hemp processing plants.” For plaintiffs, there are three focuses: Do they have standing to file a lawsuit. Does the court have jurisdiction over the lawsuit. Does the defendant have assets accessible using a court judgement. ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. CROWLEY MARITIME CORPORATION, Defendant. [3:20-cv-01426]; Middle District Florida Murphy & Anderson, P.A. (plaintiff) Berliner Corcoran & Rowe LLP (plaintiff) Fields PLLC (plaintiff) Law Offices of John S. Gaebe P.A. (plaintiff) LINK To Complaint (12/20/20) LINK To Libertad Act Lawsuit Filing Statistics LINK To Mariel Special Economic Zone Jacksonville, Florida-based Crowley Maritime Corporation (2019 revenues approximately US$2.5 billion). “Crowley, founded in 1892, is a privately-held, U.S.-owned and operated logistics, government, marine and energy solutions company headquartered in Jacksonville, Florida. Services are provided worldwide by four primary business units – Crowley Logistics, Crowley (Government) Solutions, Crowley Shipping and Crowley Fuels.” ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff,