Cuba Travel Bill Loosens Export Restrictions, Advances to House Floor
- Submitted by: admin
- United States
- Politics and Government
- 07 / 11 / 2010
On June 30, the Travel Restriction Reform and Export Enhancement Act was voted out of the House Agriculture Committee by a vote of 25 to 20.
The Bill would completely lift the longstanding ban on travel by most Americans to Cuba. The next step for the Bill would be a vote by the entire House, although there is no way to predict when, and whether, that might occur.
In addition, and not mentioned by most press coverage of the proposed bill, the proposed legislation contains two measures relating to exports of agricultural products, medicine and medical devices to Cuba under the Trade Sanctions Reform and Export Enhancement Act of 2000 (“TSRA”).
The first would reverse a regulation by the Office of Foreign Assets Control (“OFAC”) that interpreted language in TSRA requiring “payment of cash in advance” to mean payment prior to the departure of the ship carrying the goods from its U.S. port.
Under the new bill, payment could be made upon presentation of the negotiable bill of lading or other document of title or prior to the physical delivery of the goods in Cuba.
The proposed bill also changes the payment mechanism for TSRA goods shipped to Cuba. Currently, an intermediary bank outside Cuba must receive payments from a Cuban bank and then transmit that payment to the U.S. bank involved in the transaction.
Under the new law, the payment funds can be transferred directly from the Cuban bank to the U.S. bank.
The first would reverse a regulation by the Office of Foreign Assets Control (“OFAC”) that interpreted language in TSRA requiring “payment of cash in advance” to mean payment prior to the departure of the ship carrying the goods from its U.S. port.
Under the new bill, payment could be made upon presentation of the negotiable bill of lading or other document of title or prior to the physical delivery of the goods in Cuba.
The proposed bill also changes the payment mechanism for TSRA goods shipped to Cuba. Currently, an intermediary bank outside Cuba must receive payments from a Cuban bank and then transmit that payment to the U.S. bank involved in the transaction.
Under the new law, the payment funds can be transferred directly from the Cuban bank to the U.S. bank.
By Clif Burns
Source: www.exportlawblog.com/archives/2079
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