U.S. Treasury Department Clarifies Rules for Trade with Cuba
Ruling allows U.S. goods to be shipped to Cuba more quickly
The U.S. Treasury Department has clarified the rules governing trade with Cuba under a law known as Cuban Assets Control Regulations.
In a July 29 press release, the Treasury Department explained that U.S. goods may be shipped to Cuba once payment for these goods is received by a third party designated by the exporter.
The Treasury Department’s Office of Foreign Assets Control (OFAC) previously required that the exporters themselves would have to receive payment before their goods were shipped to Cuba.
Several U.S. senators complained that this previous ruling slowed and hindered trade, and for this reason a hold was placed on six nominations for Treasury Department posts.
Following the July 29 clarification, the Senate Finance Committee approved the six nominees.
Following is the text of the Treasury Department’s July 29 press release, clarifying permissible trade practices with Cuba:
U.S. DEPARTMENT OF THE TREASURY
FOR IMMEDIATE RELEASE
July 29, 2005
OFAC Confirms Permissible Practices Under Cash In Advance For Commerce-Licensed Agricultural Shipments To Cuba
The U.S. Department of the Treasury today confirmed that under the Cuban Assets Control Regulations, U.S. sellers or their agents are permitted to settle accounts for overpayment by the buyer, in accordance with standard shipping tolerances.
Treasury also confirmed that under cash in advance, goods may be shipped once the seller or the seller’s agent receives payment from Cuba. The agent may be anyone legally designated by the seller to receive payment for the seller’s goods, including a third country financial institution.
This confirms to exporters that the above-mentioned practices are presently permissible under existing regulations.
For more information on the February 22, 2005, clarification of cash in advance, please visit: http://www.treasury.gov/press/releases/js2268.htm