International Trade Law News

On Friday, July 29, 2005, the Treasury Department issued the following announcement:

"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."

Following Treasury's announcement, Senator Max Baucus (D-MT) agreed to remove his hold on the confirmation of several senior Treasury Department nominees. Baucus announced in December 2004 that he would block Treasury Department nominations "until [the Cuba cash-in-advance payment issue] gets resolved." Baucus issued a statement following Treasury's announcementindicating that "this kind of transaction is far from ideal" and "sales will still be lost." But given the burdensome retractions imposed by Treasury and the resultingplummet in agricultural sales to Cuba, something had to be done."