1 U.S. Department of Agriculture Foreign Agriculture Service, PSD Online Database

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "1 U.S. Department of Agriculture Foreign Agriculture Service, PSD Online Database"

Transcription

1 Before the U.S. International Trade Commission Investigation No Overview of Cuban Imports of Goods and Services and Effects of U.S. Restrictions Written testimony submitted by Brett Blankenship, President of the National Association of Wheat Growers and Roy Motter, Chairman of U.S. Wheat Associates In accordance with a Federal Register notice dated February 4, 2015, and modified on March 4, 2015, we submit this testimony on behalf of the previously named organizations and their members. U.S. wheat growers export approximately 50 percent of their wheat crop every year. As a tradedependent industry, growers rely on the ability to open and expand international markets. Cuba, with no domestic wheat production, represents substantial potential for U.S. wheat growers. Cuba s 11.3 million people consumed an average of about 800,000 metric tons (MT) of wheat per year over the past ten years, 1 making it the largest importer of wheat and wheat products in the Caribbean. Wheat Situation Post-TSRA For many years, the U.S. wheat industry was shut out of the Cuban market, but the industry was finally able to establish a foothold after passage by Congress of the Trade Sanctions Reform and Export Enhancement Act (TSRA) of The U.S. wheat industry had repeatedly recommended both to Congress and the Administration that trade with Cuba should be normalized and travel restrictions to and from Cuba should be lifted. TSRA was a partial answer to those recommendations. The U.S. wheat industry has a well-established interest in the Cuban market. It began organizing humanitarian donations of wheat flour to Cuba as early as 1998 and established relationships with bakers and millers throughout that process. So, when a devastating hurricane hit Cuba in 2001, the U.S. wheat industry began exporting wheat to Cuba under TSRA and quickly began establishing market share. Exports grew rapidly, eventually peaking at 500,000 MT in Marketing Year (MY) 2007/08. TSRA required Cuban buyers to pay cash in advance, so Alimport, Cuba s food import agency, paid cash for each wheat shipment as the vessel sailed from a U.S. port. However, on February 22, 2005, the Treasury Department s Office of Foreign Assets Control (OFAC) amended the regulation to require Cuba to obtain and present letters of credit from a third-party, foreign bank, with the cash payment coming from the bank, not directly from Alimport. The change increased the cost of buying U.S. wheat by adding an excessive and unnecessary administrative burden for Alimport that has had a large effect on U.S. export potential. In fact, 1 U.S. Department of Agriculture Foreign Agriculture Service, PSD Online Database

2 Thousand Metric Tons the U.S. share of wheat exports to Cuba dropped from 48 percent in 2005 to 38 percent in 2006 and 28 percent in As global grain markets spun into turmoil during the price shocks of 2008, the U.S. temporarily increased its wheat market share back up to 49 percent, but the slide subsequently resumed, eventually reaching zero market share in 2011 where it has remained ever since. Cuban Wheat Imports from the United States U.S. Imports Non-U.S. Imports The primary suppliers of wheat to Cuba are now the European Union (73% market share average since MY 2011/12) and Canada (25%). Proximity alone should also provide a competitive logistical and price advantage for U.S. growers. It is only a two-day sail from the U.S. Gulf to Cuba compared to a week s voyage from Canada and two weeks from European ports. In the nearby Caribbean market of the Dominican Republic, the U.S. holds a 95 percent market share. In Cuba where the only additional market variable is our own trade restriction the U.S. has a market share of zero. Cuba has significant milling capacity to manufacture flour, including semolina for its pasta manufacturing industry. During the time that Cuba was importing wheat from the United States, the vast majority of wheat purchased was hard red winter or bread wheat grown in the southern Great Plains, although Cuba sometimes imported durum. Today durum is sourced primarily from Mexico. Cuba s industry is well-positioned to utilize a variety of U.S. wheat classes and a new foreign direct investment (FDI) law approved in March 2014 could lead to increased opportunities to demonstrate the advantages of utilizing U.S. wheat Regulatory Changes On December 17, 2014, President Obama announced an intent for normalization of relations between the U.S. and Cuba. This announcement marked the greatest change in U.S. policy towards Cuba in 54 years. Among the most important steps for exporters and financiers is the presidential order to review Cuba's status on the list of state sponsors of terrorism. In April 2015,

3 the President removed that designation. A series of new or modified regulations relate to travel (12 categories of travel) and remittances and expand the list of permitted U.S. exports. Banking regulations will allow for direct exchanges, eliminating the need for third-country transactions, and the use of U.S. credit and debit cards will be permitted for use by travelers to Cuba. U.S. telecommunications companies will be allowed to export equipment to Cuba, and foreign ships will be allowed to enter the US after engaging in "certain humanitarian trade" with Cuba. Subsequent regulations that took effect in January 2015, indicated that the term "cash in advance" will be understood to mean "cash before transfer of title and control." It was underlined in a White House statement that this revision was intended to improve U.S. agriculture and food sales to Cuba. However, several obstacles continue to prevent U.S. wheat exporters from being able to restore a competitive position. Sales Constraints There are several reasons why U.S. wheat has not been able to have a sustained market share in Cuba: 1) Transaction requirements 2) Shipping restrictions 3) Trade relationship Transaction Requirements The typical cadence of a transaction to purchase wheat begins with a tender by a prospective importer. Once the importer places an order with a supplier, the importer s bank provides a letter of credit to the supplier s bank, which then notifies the supplier, who then ships the wheat to the importer and claims against the letter of credit for their payment. A mate's receipt or bill of lading is then issued, which represents the transfer of ownership from the supplier to the importer, giving title but not yet full control of the wheat to the importer. The full set of required documents by the transaction and specified in the letter of credit are obtained and assembled by the exporter. These are sent by overnight courier to the bank which has confirmed the letter of credit. The bank reviews all of the documents for conformity with the terms of the sale and then releases payment to the exporter. It is at that point that the importer has actually paid for the wheat. In this process, the cargo has been loaded and has begun its voyage to destination one to three days before the exporter may actually have received the payment for the wheat. In the case of Cuba, with such short sailing distances, the possibility arises that the vessel could reach Cuba before the documentary and payment transaction is complete. Prior to the 2005 OFAC changes that reinterpreted the term cash in advance, it had been interpreted to mean cash before shipment i.e. cash in the exporter's hand even before loading the cargo could begin. Originally, against this payment term, transactions really took place on a "cash against documents" basis, where there was no letter of credit involved, but the exporter was paid on an unsecured basis after the ship loaded and all of the documents were collected and presented to the Cubans. The U.S. government eventually objected to this cadence, as technically, the cargo was being shipped to Cuba before payment was received. Disallowing this

4 practice blocked the U.S. industry's ability to supply Cuba, as the strict "cash before shipment" was clearly not a normal commercial transaction/payment term, and literally no transactions in the international grain trade occur in that manner. The primary improvement with the January 2015 OFAC changes is to interpret cash in advance to mean cash before transfer of title and control for the purpose of allowing expanded financing options. Essentially, this allows payment to be made while the wheat is en route to Cuba, giving the banking system an extra 2-3 days to make the payment to the exporter against a letter of credit. After the 2005 "reinterpretation", if Alimport wanted to buy U.S. wheat it would first have to find a bank in a third country that could provide a letter of credit, enduring that extra work, effort and increased costs for every transaction. It was primarily the extra steps and increased transaction costs imposed on the Cubans in this process that brought their strident objections and eventual refusal to continue doing business in this manner and under these requirements. Regardless of payment timing, the cash requirement is difficult to meet because Cuba is apparently cash poor and in a tough financial situation. Its bond ratings indicate a very high credit risk, so most credit transactions are short-term or backed by a foreign government. Still, the inability of U.S. exporters to offer any credit terms puts U.S. products at a competitive disadvantage. Increasing access to USDA commercial loan programs would also be helpful, but we do not believe that alone will reverse the downward trend in agriculture exports to Cuba. Cuba has access to other sources of commercial credit and adding such a resource does not reduce the administrative burdens that exist for Alimport. Finally, U.S. exporters have limited options in obtaining a letter of credit from a third-country bank because very few foreign banks are willing to deal with the compliance costs associated with doing business between the U.S. and Cuba. The U.S. government has imposed massive fines on foreign banks that have violated U.S. sanctions laws, so the remaining banks willing to facilitate business between the two countries must assume significant expenses to assure compliance. That expense must be paid for by the U.S. and Cuban parties. Compare this to buying wheat from the European Union (EU), where Alimport currently sources about two thirds of wheat entering Cuba. European exporters can offer financing, structure payments however they d like, let their banks and the Cuban banks deal with each other directly, and travel to Cuba easily without having to worry about travel restrictions or forms (and even stay a few extra days to enjoy Cuba s beaches, which is prohibited for Americans selling agricultural products). Layer on top of that the general distrust and hostility between the American and Cuban governments and it s no wonder that Cuba currently prefers to buy non- American products whenever possible. Shipping Restrictions Under the Cuban Democracy Act of 1992, vessels cannot load or unload any freight at any place in the United States within 180 days of departure from loading or unloading goods in a Cuban

5 port unless a license for that vessel has been issued by the Secretary of the Treasury. The net effect of this policy has been to make freight rates to Cuba significantly more expensive than they would be otherwise. For example, a 25,000 ton vessel of wheat from the U.S. Gulf to Veracruz, Mexico, is estimated on May 15, 2015, to have an ocean freight rate of $14/ton. However, a similar sized vessel from the U.S. Gulf to Havana is estimated to cost nearly double that price. There are several reasons for the disproportional difference: 1. The vessel cannot return to the United States once it touches Cuban ports for 6 months. 2. Shippers from third countries do not have the option of making a stop to load or unload in Cuba before continuing on to the United States. 3. Even if a U.S. Treasury license has been obtained allowing the vessel to return immediately, it must return empty because no Cuban goods can be loaded for export to the United States. The 2015 OFAC regulations now allow shippers to operate under a general license if the vessel entered Cuba for the purpose of trading in humanitarian goods (including agricultural products), but this has no effect on their ability to do backhaul loads or carry cargo from third countries other than humanitarian products. Trade Relationship The overriding constraint to normalizing relations with Cuba and reopening US wheat exports to Cuba remains the embargo. If Cuba is to become a successful export market for U.S. farmers, the aforementioned regulatory obstacles need to be repealed. But more than that, we need to see the trade sanctions in their entirety lifted. Cuba has enormous economic potential, and while it certainly remains a communist country, that hardly justifies the scale of the sanctions, especially when trade relations with other communist countries are growing deeper all the time. Even putting aside the specific regulatory constraints, Cuban importers still do not want to purchase from the United States because the U.S. embargo poisons the trade relationship. Our competitors actively pursue the Cuban market and use their open trade relationship as a selling point. The regulatory barriers discussed above erode our competitive advantage and make that selling point more salient. The United States is perfectly positioned to be Cuba s largest trading partner in a number of agricultural products and other goods and services. A substantial increase in trade and travel could provide a major boost to Cuba s economic prospects, which will in turn lead to greater consumption of U.S. products, including wheat, in Cuba. U.S. Wheat Associates estimates that the lost market share in Cuba due to the embargo and the associated regulations could be over $150 million per year. U.S. wheat growers also assert that the entire U.S. agriculture industry and the Cuban people will benefit from easing these unilateral restrictions.

6 We appreciate your efforts in developing this report and also support the efforts by many in Congress and the Administration to improve the trade relationship between the U.S. and Cuba. We look forward to working with you as you continue to examine this issue. Brett Blankenship President National Association of Wheat Growers Roy Motter Chairman U.S. Wheat Associates

Rice Trade with Cuba: Potential and Constraints

Rice Trade with Cuba: Potential and Constraints Rice Trade with Cuba: Potential and Constraints Eric Wailes University of Arkansas Symposium on U.S.-Cuban Agricultural Trade: Reflections, Realities, and Expectations Overview of presentation Cuban Rice

More information

Outlook and Opportunities for Shipping

Outlook and Opportunities for Shipping Easing US Sanctions on Cuba Outlook and Opportunities for Shipping April 8, 2015 Matthew Thomas Blank Rome LLP Washington, DC Cuba Sanctions Background Key features of embargo: Prohibition on US persons

More information

STATEMENT OF THE U.S. GRAINS COUNCIL TO THE U.S. INTERNATIONAL TRADE COMMISSION REGARDING THE OVERVIEW OF CUBAN IMPORTS OF GOODS

STATEMENT OF THE U.S. GRAINS COUNCIL TO THE U.S. INTERNATIONAL TRADE COMMISSION REGARDING THE OVERVIEW OF CUBAN IMPORTS OF GOODS STATEMENT OF THE U.S. GRAINS COUNCIL TO THE U.S. INTERNATIONAL TRADE COMMISSION REGARDING THE OVERVIEW OF CUBAN IMPORTS OF GOODS AND SERVICES AND EFFECTS OF U.S. RESTRICTIONS INVESTIGATION NUMBER: 332-552

More information

United States House Foreign Affairs Committee. February 4, 2015

United States House Foreign Affairs Committee. February 4, 2015 Written Testimony on OFAC s Cuba Regulatory Changes of John E. Smith Deputy Director of the Office of Foreign Assets Control United States Department of the Treasury United States House Foreign Affairs

More information

Cuba Sanctions: 10 Important Changes

Cuba Sanctions: 10 Important Changes Wednesday, February 18, 2015 Cuba Sanctions: 10 Important Changes Ten key changes to US sanctions and export regulations for Cuba. LATINVEX SPECIAL Latham & Watkins New regulations will facilitate trade

More information

Obama Administration Further Eases Restrictions to Aid Implementation of Cuba Policy

Obama Administration Further Eases Restrictions to Aid Implementation of Cuba Policy Client Alert September 22, 2015 If you read one thing... U.S. sanctions relief implemented September 21, 2015, consolidates previous actions to roll back U.S. sanctions, reflecting the administration s

More information

New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry

New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry 1. Background and Impact On 24 th May 2013, the Ministry of Finance and the State Administration of Taxation issued a new VAT

More information

Track and Trace. Objective. Scope. Container Tracking: Figure 1: Enquiry Screen - Container Tracking

Track and Trace. Objective. Scope. Container Tracking: Figure 1: Enquiry Screen - Container Tracking Objective Track and Trace feature is designed to enable customers to check the status of shipment online during the channel of distribution from cargo pickup to delivery. Scope The Track and Trace will

More information

Supply Chain & Circular 37 13 September 2013

Supply Chain & Circular 37 13 September 2013 Supply Chain & Circular 37 13 September 2013 Typical Supply Chain Overview The following slides are intended to provide an overview of typical supply chains for air and ocean transportation originated

More information

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance Agriculture (Ag) Trade Finance Agriculture / Commodity Trade Finance Table of Contents Select U.S. Ag Export Statistics Need For Ag Trade Finance Overview of Ag Trade Finance Solutions Ag Trade Finance

More information

BEFORE THE FEDERAL MARITIME COMMISSION. Docket No. 13-05

BEFORE THE FEDERAL MARITIME COMMISSION. Docket No. 13-05 BEFORE THE FEDERAL MARITIME COMMISSION Docket No. 13-05 Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties Advanced

More information

Statement of the. U.S. Chamber of Commerce

Statement of the. U.S. Chamber of Commerce Statement of the U.S. Chamber of Commerce On: To: By: Hearing: Examining the Status of U.S. Trade with Cuba and its Impact on Economic Growth United States House of Representatives Committee on Energy

More information

U.S. DEPARTMENT OF THE TREASURY EXECUTIVER ORDER 5 FEB 2012 FREQUENTLY ASKED QUESTIONS

U.S. DEPARTMENT OF THE TREASURY EXECUTIVER ORDER 5 FEB 2012 FREQUENTLY ASKED QUESTIONS U.S. DEPARTMENT OF THE TREASURY EXECUTIVER ORDER 5 FEB 2012 FREQUENTLY ASKED QUESTIONS Executive Order Blocking Property of the Government of Iran and Iranian Financial Institutions On February 5, 2012,

More information

Cuba Trade Opportunities: What You Should Know

Cuba Trade Opportunities: What You Should Know Cuba Trade Opportunities: What You Should Know August 8 th, 2016 Jay Brickman, Vice President, Government Services & Cuba Service, Crowley Maritime Alan W. Christian, Senior Export Policy Analyst, Bureau

More information

U.S. DEPARTMENT OF THE TREASURY

U.S. DEPARTMENT OF THE TREASURY U.S. DEPARTMENT OF THE TREASURY FREQUENTLY ASKED QUESTIONS RELATED TO CUBA This document is explanatory only, does not have the force of law, and does not supplement or modify the Executive Orders, statutes,

More information

Cuba Sanctions Update: Removal of Cuba from Terrorism List Will Result in Modest Easing of Trade Sanctions

Cuba Sanctions Update: Removal of Cuba from Terrorism List Will Result in Modest Easing of Trade Sanctions Cuba Sanctions Update: Removal of Cuba from Terrorism List Will Result in Modest Easing of Trade Sanctions A legal analysis prepared at the request of the Cuba Study Group 9 April 2015 By Stephen F. Propst,

More information

Assets Control ( OFAC ) is amending the Cuban Assets Control. Regulations to implement a provision of the Omnibus

Assets Control ( OFAC ) is amending the Cuban Assets Control. Regulations to implement a provision of the Omnibus DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 515 CUBAN ASSETS CONTROL REGULATIONS AGENCY: Office of Foreign Assets Control, Treasury. ACTION: Final rule. -------------------

More information

LEADER PROFILE: INTERVIEW WITH VIVEK KAMATH SPECIAL: NEW IRAN SANCTIONS IMPOSE STRINGENT RESTRICTIONS PLUS: COMPLIMENTARY WEBINAR TRAINING PROGRAMS

LEADER PROFILE: INTERVIEW WITH VIVEK KAMATH SPECIAL: NEW IRAN SANCTIONS IMPOSE STRINGENT RESTRICTIONS PLUS: COMPLIMENTARY WEBINAR TRAINING PROGRAMS August 2010 Published by the Global Supply Chain Leaders Group www.gscreview.com LEADER PROFILE: INTERVIEW WITH VIVEK KAMATH SPECIAL: NEW IRAN SANCTIONS IMPOSE STRINGENT RESTRICTIONS PLUS: COMPLIMENTARY

More information

COMMENTARY. Beyond Rum and Cigars: Further Easing of Sanctions Paves Way for Increased Business Opportunities in Cuba

COMMENTARY. Beyond Rum and Cigars: Further Easing of Sanctions Paves Way for Increased Business Opportunities in Cuba October 2016 COMMENTARY Beyond Rum and Cigars: Further Easing of Sanctions Paves Way for Increased Business Opportunities in Cuba On October 17, 2016, the U.S. government further eased the economic sanctions

More information

Section 8 Risk factors and approach to risk management

Section 8 Risk factors and approach to risk management Section 8 Risk factors and approach to risk management GENERAL Risk management practice standards are the responsibility of each business unit manager throughout the organisation. AWB has recently appointed

More information

ICE BARLEY FUTURES & OPTIONS. www.theice.com. April 2013. IntercontinentalExchange ICE Futures Canada ICE Clear Canada

ICE BARLEY FUTURES & OPTIONS. www.theice.com. April 2013. IntercontinentalExchange ICE Futures Canada ICE Clear Canada ICE BARLEY FUTURES & OPTIONS April 2013 IntercontinentalExchange ICE Futures Canada ICE Clear Canada www.theice.com Page 2 of 5 ICE Futures Canada is pleased to introduce new Barley futures and options

More information

International Trade Alert

International Trade Alert International Trade Alert January 28, 2016 If you read one thing Further relaxation of sanctions on Cuba, effective on January 27, 2016, allows U.S. financial institutions to finance authorized exports

More information

INCOTERMS Presented Exclusively for

INCOTERMS Presented Exclusively for INCOTERMS 2010 Presented Exclusively for Why INCOTERMS? Delivery of goods in an export-import transaction requires Using one or more segments of transportation A variety of services to arrange the transportation,

More information

Tropical Horticulture: Lecture 11

Tropical Horticulture: Lecture 11 Lecture 11 Agricultural Development in Tropical America Cuba Until 1900 the island was in an era of hacienda, only few plantations. A modern plantation developed at the end of the Colonial period. The

More information

Wheat Transportation Profile

Wheat Transportation Profile Wheat Transportation Profile Agricultural Marketing Service / Transportation and Marketing Programs November 2014 Marina R. Denicoff Marvin E. Prater Pierre Bahizi Executive Summary America s farmers depend

More information

Compliance; OFAC, UN and EU rules. A bit of an overlap, sometimes contradicting, but a sure high impact on your business

Compliance; OFAC, UN and EU rules. A bit of an overlap, sometimes contradicting, but a sure high impact on your business Compliance; OFAC, UN and EU rules A bit of an overlap, sometimes contradicting, but a sure high impact on your business Agenda and purpose of the training In this hour we are going to talk about OFAC,

More information

Chapter 29. Factors that Affect DDGS Pricing and Transportation Logistics

Chapter 29. Factors that Affect DDGS Pricing and Transportation Logistics Chapter 29 Factors that Affect DDGS Pricing and Transportation Logistics Introduction One of the biggest factors for determining whether DDGS is an economical animal feed ingredient in the international

More information

Cuban Agricultural Development and Implications for U.S. Exports

Cuban Agricultural Development and Implications for U.S. Exports Cuban Agricultural Development and Implications for U.S. Exports Presentation to the USDA Agricultural Outlook Forum 2012 Washington, DC February 23, 2012 by William A. Messina, Jr. Food and Resource Economics

More information

INTRODUCTION TO THE FEDERAL MARITIME COMMISSION AND THE U.S. SHIPPING ACT OF 1984

INTRODUCTION TO THE FEDERAL MARITIME COMMISSION AND THE U.S. SHIPPING ACT OF 1984 INTRODUCTION TO THE FEDERAL MARITIME COMMISSION AND THE U.S. SHIPPING ACT OF 1984 American Association of Port Authorities Marine Terminal Management Training Program Philadelphia, PA October 9, 2014 Presented

More information

Comments on the Economic Effects of U.S. Restrictions on Trade with and Travel to Cuba. by the. U.S. Chamber of Commerce. for the

Comments on the Economic Effects of U.S. Restrictions on Trade with and Travel to Cuba. by the. U.S. Chamber of Commerce. for the U.S. Chamber of Commerce International Division 1615 H Street, N.W. Washington, D.C., 20062-2000 telephone: +1-202-463-5460 fax: +1-202-463-3114 Comments on the Economic Effects of U.S. Restrictions on

More information

Cuban Regulations and Recent Easing of Activities in Cuba

Cuban Regulations and Recent Easing of Activities in Cuba Cuban Regulations and Recent Easing of Activities in Cuba As you are aware, the President has implemented several initiatives to ease the 50-year-old US embargo with Cuba. This was announced on December

More information

U.S. Economic Sanctions Laws and How They Affect Insurance Brokers

U.S. Economic Sanctions Laws and How They Affect Insurance Brokers U.S. Economic Sanctions Laws and How They Affect Insurance Brokers The United States Government imposes economic sanctions against several countries and a large number of individuals and entities, in response

More information

Circular to Assureds (no 007 2010) Background

Circular to Assureds (no 007 2010) Background Subject: Sanctions Circular to Assureds (no 007 2010) Background Assureds will be aware that there are currently significant complications involved in trading with Iran or Iranian interests. From a charterers

More information

Gains and Losses from Globalization

Gains and Losses from Globalization Gains and Losses from Globalization Presentation to the 14 th International Farm Management Congress Saul Eslake Chief Economist ANZ Bank Burswood Resort Perth 13 August 2003 E-mail: anz.com What is globalization?

More information

6. QUESTION: Are AMS & ABI the only methods through which ISF s can be filed? ANSWER: Yes.

6. QUESTION: Are AMS & ABI the only methods through which ISF s can be filed? ANSWER: Yes. 1. QUESTION: How will ocean carriers and NVOs be notified to not load a shipment? ANSWER: CBP has stated that they will not issue Do Not Load messages during the 1-year implementation period for missing,

More information

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is This document is scheduled to be published in the Federal Register on 01/27/2016 and available online at http://federalregister.gov/a/2016-01559, and on FDsys.gov DEPARTMENT OF THE TREASURY Office of Foreign

More information

GRAIN TRADE AUSTRALIA CONTRACT No 4. DELIVERED CONTAINER TERMINAL (DCT CONTRACT)

GRAIN TRADE AUSTRALIA CONTRACT No 4. DELIVERED CONTAINER TERMINAL (DCT CONTRACT) GRAIN TRADE AUSTRALIA CONTRACT No 4. DELIVERED CONTAINER TERMINAL (DCT CONTRACT) Sale Contract Number: [insert number] Date: SELLER: BUYER: BROKER: GOODS: QUANTITY: [insert Seller s full name and address

More information

Export and Import Compliance

Export and Import Compliance Contents: 1. Roles of 2. Break Bulk and Project Cargo Considerations 3. Detailed Processes 4. Case Studies 5. Conclusions Around the world, the policies of vary, influencing international trade Imagine

More information

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is This document is scheduled to be published in the Federal Register on 01/16/2015 and available online at http://federalregister.gov/a/2015-00632, and on FDsys.gov DEPARTMENT OF THE TREASURY Office of Foreign

More information

SOLAS Safety of Life at Sea Container Weight Requirement

SOLAS Safety of Life at Sea Container Weight Requirement SOLAS Safety of Life at Sea Container Weight Requirement Revised July 21, 2016 WHAT IS THIS? Effective July 1, 2016, shippers listed on the carrier master bill of lading will be required to provide signed

More information

GOODMAN GLOBAL GROUP, INC. EXPORT CONTROL AND SANCTIONS COMPLIANCE POLICY

GOODMAN GLOBAL GROUP, INC. EXPORT CONTROL AND SANCTIONS COMPLIANCE POLICY GOODMAN GLOBAL GROUP, INC. EXPORT CONTROL AND SANCTIONS COMPLIANCE POLICY Goodman Global Group, Inc. and our affiliates (collectively, the Company ) are committed to complying with all laws applicable

More information

MR. WALDMANN: Thank you, Mr. Chairman. I. have a longer statement for the record which I'd like. My name is Ray Waldmann. I'm Vice

MR. WALDMANN: Thank you, Mr. Chairman. I. have a longer statement for the record which I'd like. My name is Ray Waldmann. I'm Vice MR. WALDMANN: Thank you, Mr. Chairman. I have a longer statement for the record which I'd like to submit to the Commission. My name is Ray Waldmann. I'm Vice President for International Affairs for Boeing

More information

Export Documents. August 15, Philadelphia, PA

Export Documents. August 15, Philadelphia, PA August 15, 2013 Philadelphia, PA Presented by Torsten (Tom) Helk Tom is BDP s Manager Hazardous Materials and Export Compliance, and has been with BDP since 1991. Tom started his career in logistics in

More information

Submission of the Semiconductor Industry Association International Tax Working Group Committee on Finance United States Senate

Submission of the Semiconductor Industry Association International Tax Working Group Committee on Finance United States Senate April 14, 2015 Submission of the Semiconductor Industry Association International Tax Working Group Committee on Finance United States Senate The Semiconductor Industry Association ( SIA ) appreciates

More information

EU Advance Cargo Security Rules: Maritime Shipments

EU Advance Cargo Security Rules: Maritime Shipments EU Advance Cargo Security Rules: Maritime Shipments JOC East Coast Maritime Conference September 28, 2010 Summary Changes to EU Customs Code 2005 are scheduled to become effective January 1, 2011. Changes

More information

Transport Insurance for International trade

Transport Insurance for International trade Transport Insurance for International trade 1) International trade insurance indemnifies importers and exporters against various types of losses, including damage to goods in transit, products injuring

More information

Magaya s Monthly Newsletter

Magaya s Monthly Newsletter Page 2 Magaya Ocean Carrier Interface with INTTRA This month we bring you an in-depth guide on how to utilize the Magaya Ocean Carriers Interface with INTTRA. This plug-in will drastically improve the

More information

US Companies Should Proceed Cautiously Into Cuba and Iran

US Companies Should Proceed Cautiously Into Cuba and Iran White Collar Law US Companies Should Proceed Cautiously Into Cuba and Iran David M. Laigaie and Joshua Hill, The Legal Intelligencer April 1, 2016 Over the last several decades, international trade has

More information

Freight Forwarder Roles in the Transaction

Freight Forwarder Roles in the Transaction Freight Forwarder Roles in the Transaction Presenter Torsten (Tom) Helk Tom is BDP s Manager Hazardous Materials and Export Compliance, and has worked for BDP since 1991. Tom started his career in logistics

More information

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt Copyright 2011 by Pearson Education, Inc. Chapter 14 Deficit Spending and The Public Debt All rights reserved. Introduction Since 2007, the ratio of the official real net public debt to real GDP has increased

More information

Politics, Surpluses, Deficits, and Debt

Politics, Surpluses, Deficits, and Debt Defining Surpluses and Debt Politics, Surpluses,, and Debt Chapter 11 A surplus is an excess of revenues over payments. A deficit is a shortfall of revenues relative to payments. 2 Introduction After having

More information

Cuba- U.S. normalization Challenges and Opportunities for the CARICOM Caribbean

Cuba- U.S. normalization Challenges and Opportunities for the CARICOM Caribbean Cuba- U.S. normalization Challenges and Opportunities for the CARICOM Caribbean Dr. Jacqueline Laguardia Martinez Institute of International Relations, UWI St. Augustine Jacqueline.Laguardia-Martinez@sta.uwi.edu

More information

Financial Instruments

Financial Instruments There are two basic forms of Letters of Credit: Standby (SBLC) and Documentary (DLC). Financial Instruments Documentary Letters of Credit can be either Revocable or Irrevocable, although the first is extremely

More information

Mastering Global Trade Compliance for Growth Through Export. Track 1 Session 3

Mastering Global Trade Compliance for Growth Through Export. Track 1 Session 3 Mastering Global Trade Compliance for Growth Through Export Track 1 Session 3 Julie Gibbs Director BPE Global Jgibbs@bpeglobal.com 415-595-8543 www.bpeglobal.com 2 Abstract It's not a small world after

More information

We greatly appreciate your attention to this request and look forward to further dialogue with OFAC on these issues going forward.

We greatly appreciate your attention to this request and look forward to further dialogue with OFAC on these issues going forward. Ms. Leslie Devereaux Sanctions Compliance & Evaluation Office of Foreign Assets Control U.S. Department of the Treasury Washington, DC Dear Ms. Devereaux (the Banker s Association for Finance and Trade)

More information

LETTERS OF CREDIT How to avoid discrepancies and expedite payment Presented by: Trade Technologies Barbara Trupkin Director Global Sales

LETTERS OF CREDIT How to avoid discrepancies and expedite payment Presented by: Trade Technologies Barbara Trupkin Director Global Sales LETTERS OF CREDIT How to avoid discrepancies and expedite payment Presented by: Trade Technologies Barbara Trupkin Director Global Sales 1 AGENDA International Payment Risk International Payment Mechanisms

More information

chapter Perfect Competition and the >> Supply Curve Section 1: Perfect Competition

chapter Perfect Competition and the >> Supply Curve Section 1: Perfect Competition chapter 9 Perfect Competition and the >> Supply Curve Section 1: Perfect Competition Suppose that Yves and Zoe are neighboring farmers, both of whom grow organic tomatoes. Both sell their output to the

More information

Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Rules and Regulations

Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Rules and Regulations Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Rules and Regulations 2291 Supplement No. 2 to Part 748 [Amended] 9. In Supplement No. 2 to part 748, remove and reserve paragraph (d). Dated:

More information

Incoterms 2010 Workshop. November 2010

Incoterms 2010 Workshop. November 2010 Incoterms 2010 Workshop AGENDA Introduction to the International Trade Terms Trade Terms: EXW; FCA; FAS; FOB; CFR; CIF Trade Terms: CPT; CIP; DAT; DAP;DDP Important Notes on Obligations, Risks and Exposure

More information

OFAC Office of Foreign Assets Control

OFAC Office of Foreign Assets Control OFAC Office of Foreign Assets Control What is it? The Office of Foreign Assets Control ( OFAC ) of the US Department of the Treasury is a law enforcement agency, not a regulatory agency. OFAC administers

More information

Tasmania s northern ports and the Port of Melbourne. Trailers have been calculated on the basis that 1 trailer = 2 TEU.

Tasmania s northern ports and the Port of Melbourne. Trailers have been calculated on the basis that 1 trailer = 2 TEU. 1. Context As part of developing the draft Tasmanian Integrated Freight Strategy, the Department of State Growth undertook additional work examining the Bass Strait container market. This analysis addressed

More information

The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic

The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support from

More information

Tips for Companies Doing Business in Russia and Ukraine Following Russia s Acquisition of Crimea

Tips for Companies Doing Business in Russia and Ukraine Following Russia s Acquisition of Crimea Tips for Companies Doing Business in Russia and Ukraine Following Russia s Acquisition of Crimea by David Townsend, Mike House and Ann Nagele, Perkins Coie LLP 1 Introduction The United States has responded

More information

Canada Export Requirements Incoterms

Canada Export Requirements Incoterms Canada Export Requirements Incoterms Topics of Discussion Canada export requirements Terms of sale Insurance Documentation Export Process Are there export restrictions? What are the import conditions?

More information

U.S. DEPARTMENT OF THE TREASURY

U.S. DEPARTMENT OF THE TREASURY U.S. DEPARTMENT OF THE TREASURY FREQUENTLY ASKED QUESTIONS RELATED TO CUBA This document is explanatory only, does not have the force of law, and does not supplement or modify the Executive Orders, statutes,

More information

Public Debt: Private Asset

Public Debt: Private Asset Public Debt: Private Asset Government Debt and Its Role in the Economy Is government borrowing always bad? Are savings bonds debt or assets? How are interest rates established on U. S. debt? What types

More information

STANDARD GUIDELINES FOR SHIPMENT OF COCOA BEANS IN CONTAINERS

STANDARD GUIDELINES FOR SHIPMENT OF COCOA BEANS IN CONTAINERS THE COCOA MERCHANTSʹ ASSOCIATION OF AMERICA, INC. STANDARD GUIDELINES FOR SHIPMENT OF COCOA BEANS INCLUDES ALL AMENDMENTS APPROVED BY THE BOARD OF DIRECTORS December 13, 2012 STANDARD GUIDELINES FOR SHIPMENT

More information

Philippines Logistics Market Outlook to 2019 - Growth Driven by Express Delivery, 3PL and E-commerce Logistics Services

Philippines Logistics Market Outlook to 2019 - Growth Driven by Express Delivery, 3PL and E-commerce Logistics Services Philippines Logistics Market Outlook to 2019 - Growth Driven by Express Delivery, 3PL and E-commerce Logistics Services Phone: +44 20 8123 2220 Fax: +44 207 900 3970 office@marketpublishers.com Philippines

More information

GLOSSARY OF FREIGHT TERMS

GLOSSARY OF FREIGHT TERMS GLOSSARY OF FREIGHT TERMS - A AGENT (AGT): The relationship existing between two parties by which one is authorized to transact certain business for the other. AIR WAYBILL (AWB or MAWB): The document made

More information

Identify the choice that best completes the statement or answers the question.

Identify the choice that best completes the statement or answers the question. International Trade Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A way to measure the economy's performance is to measure categories of national a.

More information

World Trade Practices Chapter 14 FCL= full container load LCL= less than full container load (door to door)

World Trade Practices Chapter 14 FCL= full container load LCL= less than full container load (door to door) Logistics Containerized Cargo Twenty-Foot Equivalent Units (intermodal shipping container) 1 TEU 20 long container 2 TEUs per 40 long container World Trade Practices Chapter 14 FCL= full container load

More information

MOVING CAPITAL IN AND OUT OF CUBA: FINANCIAL TRANSACTIONS, BANKING, MONEY TRANSFERS & TAX LAWS APPLICABLE TO DOING BUSINESS IN CUBA

MOVING CAPITAL IN AND OUT OF CUBA: FINANCIAL TRANSACTIONS, BANKING, MONEY TRANSFERS & TAX LAWS APPLICABLE TO DOING BUSINESS IN CUBA MOVING CAPITAL IN AND OUT OF CUBA: FINANCIAL TRANSACTIONS, BANKING, MONEY TRANSFERS & TAX LAWS APPLICABLE TO DOING BUSINESS IN CUBA Jennifer Correa Riera Fuerst Ittleman David & Joseph PL jcorrea@fuerstlaw.com

More information

Credit Management for Exporters

Credit Management for Exporters WHITE PAPER Credit Management for Exporters Many analysts believe that the global economy is entering a period of strong new growth. This is very promising for Canadian companies that are considering their

More information

Speeding Cash Flow for International Transactions: Outsourced Letter of Credit Document Preparation for Exporting Companies.

Speeding Cash Flow for International Transactions: Outsourced Letter of Credit Document Preparation for Exporting Companies. Speeding Cash Flow for International Transactions: Outsourced Letter of Credit Document Preparation for Exporting Companies whitepaper 2 Quality Letters of Credit Inc. 1761 Laurel Street, San Carlos, CA

More information

Meditterra. Trade Advisory Services. www.meditterra.com. economy. International Trade Guide. Meditterra Trade Advisory Services 1-201-875-7502

Meditterra. Trade Advisory Services. www.meditterra.com. economy. International Trade Guide. Meditterra Trade Advisory Services 1-201-875-7502 Meditterra Trade Advisory Services www.meditterra.com economy International Trade Guide Meditterra Trade Advisory Services 1-201-875-7502 International Trade Guide Table of Contents Getting Started Exporting

More information

THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics

THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics The current financial crisis in the capital markets combined with recession

More information

New EU Sanctions Against Iran

New EU Sanctions Against Iran November 17, 2010. New EU Sanctions Against Iran On October 27, 2010, the European Council published Council Regulation (EU) No 961/2010 ( the Regulation ) 1, imposing enhanced economic sanctions against

More information

Customs and border management, including Northern Ireland Republic of Ireland

Customs and border management, including Northern Ireland Republic of Ireland What can business expect if Britain remains? 1. Issues impacting all businesses Trade prospects with, and market access to: European Union member states, non-eu member states with existing EU trade agreements,

More information

APL Logistics. Free Carrier (FCA): Improving Supply Chain Performance

APL Logistics. Free Carrier (FCA): Improving Supply Chain Performance APL Logistics Free Carrier (FCA): Improving Supply Chain Performance FCA: Improving Supply Chain Performance 2 FCA: An Introduction Free Carrier (FCA) is an internationally accepted trade term that assigns

More information

COCERAL Position Position on MiFID II Level 2 legislation Definition of regulatory and implementing technical standards

COCERAL Position Position on MiFID II Level 2 legislation Definition of regulatory and implementing technical standards COCERAL Position Position on MiFID II Level 2 legislation Definition of regulatory and implementing technical standards Brussels, 2 December 2014 COCERAL would like to bring the views of agricultural commodities

More information

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt Chapter 14 Deficit Spending and The Public Debt Introduction The federal budget deficit often has appeared to move in tandem with the trade deficit. In the past, they were sufficiently closely related

More information

(International Commercial Terms)

(International Commercial Terms) INCOTERMS 2010 INCOTERMS 2010 (International Commercial Terms) Regardless of whether you send something to a customer or order something from a supplier, your freight must arrive on time; otherwise you

More information

LAW ON FOREIGN CURRENCY TRANSACTIONS. ( Official Herald of the Republic of Serbia, Nos. 62/2006 and 31/2011) I GENERAL PROVISIONS

LAW ON FOREIGN CURRENCY TRANSACTIONS. ( Official Herald of the Republic of Serbia, Nos. 62/2006 and 31/2011) I GENERAL PROVISIONS LAW ON FOREIGN CURRENCY TRANSACTIONS ( Official Herald of the Republic of Serbia, Nos. 62/2006 and 31/2011) The present Law shall govern: I GENERAL PROVISIONS Article 1 1) payments, collections and transfers

More information

COMMERCIAL LENDERS MANDATED TO FIGHT WAR ON TERRORISM

COMMERCIAL LENDERS MANDATED TO FIGHT WAR ON TERRORISM COMMERCIAL LENDERS MANDATED TO FIGHT WAR ON TERRORISM By Gordon L. Gerson, Esq. It has not been business as usual in the lending industry since September 11, and commercial lenders have been conscripted

More information

International Sales Finance Solutions

International Sales Finance Solutions International Sales Finance Solutions Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services International Sales Finance Solutions Financing Tools to Support

More information

HEDGING IN THEORY AND PRACTICE

HEDGING IN THEORY AND PRACTICE HEDGING IN THEORY AND PRACTICE Ann Berg Senior Commodity Markets Development Expert USAID/FINREP-ІІ Kyiv, 2013 July 11 Maize contract (CME) 320 310 307.58 $ 11 April 308.07 $ 13 June 300 291.44 $ 1 March

More information

International Insurance - Part 3. Auto, Employee Benefits & Cargo Coverage

International Insurance - Part 3. Auto, Employee Benefits & Cargo Coverage International Insurance - Part 3 Auto, Employee Benefits & Cargo Coverage INTERNATIONAL INSURANCE Auto, Employee Benefits & Cargo Insurance Part 3 Robin Federici, CPCU, AAI, ARM, AINS, AIS, CPIW PO BOX

More information

the Export Transaction Michael Ford

the Export Transaction Michael Ford Freight Forwarder Roles in the Export Transaction Michael Ford s1 Presenter Michael J. Ford Vice President of BDP International for Regulatory Compliance and Quality Over 31 years of service with BDP working

More information

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is

SUMMARY: The Department of the Treasury s Office of Foreign Assets Control (OFAC) is This document is scheduled to be published in the Federal Register on 09/21/2015 and available online at http://federalregister.gov/a/2015-23587, and on FDsys.gov DEPARTMENT OF THE TREASURY Office of Foreign

More information

Tax Advantages of IC-DISCS. 2013 National Pecan Shellers Association / Annual Meeting

Tax Advantages of IC-DISCS. 2013 National Pecan Shellers Association / Annual Meeting Tax Advantages of IC-DISCS 2013 National Pecan Shellers Association / Annual Meeting WHAT IS A DISC???? Statutory Requirements - Formation The IC-DISC must be a U.S. Corporation Typically incorporated

More information

Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill

Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill June 3, 2013 Overview Changes to the sugar program in the 2008 farm bill made a bad program even

More information

Global Transaction Services

Global Transaction Services Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Maximizing the Benefits of Export Letters of Credit: A Risk Mitigation Tool William E. Morrissey Director

More information

GrainCorp Acquisition Investor Presentation. May 1, 2013

GrainCorp Acquisition Investor Presentation. May 1, 2013 GrainCorp Acquisition Investor Presentation May 1, 2013 Safe Harbor Statement Some of our comments constitute forward-looking statements that reflect management s current views and estimates of future

More information

MARINE CARGO CLAIMS GUIDEBOOK

MARINE CARGO CLAIMS GUIDEBOOK Marsh Canada Limited MARINE CARGO CLAIMS GUIDEBOOK TO REPORT A CLAIM PLEASE GO TO WWW.MARSHCARGO.COM MARINE CARGO CLAIMS GUIDEBOOK i Marine Cargo Claims Guidebook This booklet has been prepared as a guide

More information

OVERSEAS TRADE FINANCE ( OTF )

OVERSEAS TRADE FINANCE ( OTF ) OVERSEAS TRADE FINANCE ( OTF ) Port to Port Trade Finance Trade Finance Equity Trade Finance Report 3 Port to Port Trade Finance Trade Finance Equity Overseas Trade Finance specialise in sourcing trade

More information

Counterterrorism and Humanitarian Engagement Project

Counterterrorism and Humanitarian Engagement Project Counterterrorism and Humanitarian Engagement Project OFAC Licensing Background Briefing March 2013 I. Introduction 1 The U.S. Department of Treasury s Office of Foreign Assets Control (OFAC) administers

More information

What is Monetization? U.S. International Food Aid Programs

What is Monetization? U.S. International Food Aid Programs What is Monetization? Food aid may be distributed directly to target populations or may be sold and the proceeds used to support program-related costs and developmental activities, such as training, technology

More information

Guide to importing and exporting

Guide to importing and exporting Guide to importing and exporting September 2011 Version 41 Table of contents Introduction 4 We have the solutions for your needs...4 Important Information...4 Getting started 5 What do I do first?...5

More information

Shipping guideline for orders

Shipping guideline for orders Shipping guideline for orders to all Migros, Globus, Interio and Office World suppliers This shipping directive serves as a shipping guideline for all shippers. It is a comprehensive information and provides

More information

THE INSURANCE INDUSTRY AND OFAC ECONOMIC SANCTIONS

THE INSURANCE INDUSTRY AND OFAC ECONOMIC SANCTIONS THE INSURANCE INDUSTRY AND OFAC ECONOMIC SANCTIONS Vincent J. Vitkowsky Partner, New York VVitkowsky@eapdlaw.com 212.912.2828 Stephen G. Huggard Partner, Boston SHuggard@eapdlaw.com 617.239.0769 Introduction

More information