Treasury, Commerce publish regulations easing ag sales to Cuba
January 15, 2015 |02:57 PM
Sales of U.S. agricultural products, farm equipment and items related to environmental protection including renewable energy should be eased under regulations the Treasury Department and the Commerce Department published today to fulfill President Barack Obama’s promises on December 17 to ease restrictions on U.S. citizens doing business with Cuba and traveling to the island nation.
The regulations will be published in the Federal Register on Friday and will go into effect immediately. See links.
The regulatory interpretation of “cash in advance” for farm products will be changed from “cash before shipment” to “cash before transfer of title and control,” and there will be “expanded financing options for authorized exports to Cuba” under the Treasury Department rules.
In addition, financing by a banking institution in a third country “may be confirmed or advised by a U.S. banking institution.”
The Commerce Department regulations may help the U.S. timber and lumber industries because they also state that U.S. products allowed for export will now include “building materials for use by the private sector to construct or renovate privately-owned buildings including privately-owned residences, businesses, places of worship and buildings for private sector social or recreational use” and “tools and equipment for private sector agricultural activity.”
Commerce also amends the licensing policy for Cuba “to add a general policy of approval for exports and re-exports of items necessary for the environmental protection of U.S. and international air quality, waters, and coastlines (including items related to renewable energy or energy efficiency).”
Treasury and Commerce noted that the overall Cuban embargo remains in effect, but White House press secretary Josh Earnest noted in a statement today that the regulatory amendments are part of a process of normalization of relations between the two countries.
“These changes will immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy, and help facilitate our growing relationship with the Cuban people,” Earnest said.
”We firmly believe that allowing increased travel, commerce, and the flow of information to and from Cuba will allow the United States to better advance our interests and improve the lives of ordinary Cubans,” he said.
“The policy of the past has not worked for over 50 years, and we believe that the best way to support our interests and our values is through openness rather than isolation. The United States remains committed to our enduring objective of promoting the emergence of a more prosperous Cuba that respects the universal rights of all its citizens.”
USA Engage and the National Foreign Trade Council praised the new regulations.
“These regulations solidify a fundamental change in U.S. Cuba policy,” noted USA Engage Vice President Richard Sawaya. “It is to be hoped that Congress will support the Administration’s initiative, which augurs well for the future of U.S. relations with Cuba and throughout the region.”
“These rules signal a new day for U.S. Cuba relations. They will permit U.S. businesses to begin getting to know Cuba and also enable businesses and private citizens to engage directly with the Cuban people,” said NFTC Vice President for Global Trade Issues Jake Colvin.
“We look forward to working with the Obama Administration, Congress, the U.S. business community and the Cuban people to begin to reestablish the commercial relationship over the months and years to come.”
▪ Department of the Treasury — Cuban Assets Control Regulations
▪ — Frequently Asked Questions Related to Cuba
▪ Department of Commerce — Cuba: Providing Support for the Cuban People
The regulations will be published in the Federal Register on Friday and will go into effect immediately. See links.
The regulatory interpretation of “cash in advance” for farm products will be changed from “cash before shipment” to “cash before transfer of title and control,” and there will be “expanded financing options for authorized exports to Cuba” under the Treasury Department rules.
In addition, financing by a banking institution in a third country “may be confirmed or advised by a U.S. banking institution.”
The Commerce Department regulations may help the U.S. timber and lumber industries because they also state that U.S. products allowed for export will now include “building materials for use by the private sector to construct or renovate privately-owned buildings including privately-owned residences, businesses, places of worship and buildings for private sector social or recreational use” and “tools and equipment for private sector agricultural activity.”
Commerce also amends the licensing policy for Cuba “to add a general policy of approval for exports and re-exports of items necessary for the environmental protection of U.S. and international air quality, waters, and coastlines (including items related to renewable energy or energy efficiency).”
Treasury and Commerce noted that the overall Cuban embargo remains in effect, but White House press secretary Josh Earnest noted in a statement today that the regulatory amendments are part of a process of normalization of relations between the two countries.
“These changes will immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy, and help facilitate our growing relationship with the Cuban people,” Earnest said.
”We firmly believe that allowing increased travel, commerce, and the flow of information to and from Cuba will allow the United States to better advance our interests and improve the lives of ordinary Cubans,” he said.
“The policy of the past has not worked for over 50 years, and we believe that the best way to support our interests and our values is through openness rather than isolation. The United States remains committed to our enduring objective of promoting the emergence of a more prosperous Cuba that respects the universal rights of all its citizens.”
USA Engage and the National Foreign Trade Council praised the new regulations.
“These regulations solidify a fundamental change in U.S. Cuba policy,” noted USA Engage Vice President Richard Sawaya. “It is to be hoped that Congress will support the Administration’s initiative, which augurs well for the future of U.S. relations with Cuba and throughout the region.”
“These rules signal a new day for U.S. Cuba relations. They will permit U.S. businesses to begin getting to know Cuba and also enable businesses and private citizens to engage directly with the Cuban people,” said NFTC Vice President for Global Trade Issues Jake Colvin.
“We look forward to working with the Obama Administration, Congress, the U.S. business community and the Cuban people to begin to reestablish the commercial relationship over the months and years to come.”
▪ Department of the Treasury — Cuban Assets Control Regulations
▪ — Frequently Asked Questions Related to Cuba
▪ Department of Commerce — Cuba: Providing Support for the Cuban People
