As the Obama Administration relaxes America’s restrictions on trade with Cuba, the Commerce Department is authorizing more and more exports and reexports of US-origin goods to Cuba.  Heretofore, US banks could not finance such authorized transactions, with the result that they had to be paid for by cash in advance or financed by third-country banks or.  

On January 27, 2016, the Administration lifted this restriction for authorized exports of non-agricultural products, effectively permitting US banks to advise and confirm related letters of credit and otherwise process the flows of money that are normally incident to such authorized transactions.  US financing for exports of agricultural products is still prohibited, meaning that sales of such products must still be “cash in advance” or financed by third-country institutions.

Comments are closed.