Cuba Agriculture – Duane Morris on Cuba, Puerto Rico & the Caribbean

September 19, 2018 by Jose A. Aquino

Effectiveness of Licensing Procedures for Agricultural Commodities to Cuba

The Bureau of Industry and Security (BIS) is requesting public comments on the effectiveness of its licensing procedures for the export of agricultural commodities to Cuba. The comments must be in writing and received by October 17, 2018. BIS requests that the comments be as specific as possible.

The comments will be considered by BIS in developing its biennial report to the Congress on the operation of the licensing system for the preceding two-year period, as required by the Trade Sanctions Reform and Export Enhancement Act of 2000. The report must include the number and types of licenses applied for, the number and types of licenses approved, the average amount of time elapsed from the date of filing of a license application until the date of its approval, the extent to which the licensing procedures were effectively implemented, and a description of comments received from interested parties. The biennial report is for the two-year period from October 1, 2016 through September 30, 2018.

BIS is an agency of the United States Department of Commerce that implements U.S. Government sanctions against Cuba and certain other nations. BIS administers and enforces the Export Administration Regulations (EAR), which regulate the export of commercial commodities, including the exports of agricultural commodities to Cuba.

All the comments will be made available for public inspection and copying. Material that the author does not want to be made public should not be submitted to BIS.

Additional information on BIS procedures and previous biennial reports are available at http://www.bis.doc.gov/index.php/policy-guidance/country-guidance/sanctioned-destinations/13-policy-guidance/country-guidance/426-reports-to-congress.

Jose A. Aquino (@JoseAquinoEsq on Twitter) is a special counsel in the New York office of Duane Morris LLP, and a member of the Duane Morris Cuba Business Group. This blog is prepared and published for informational purposes only and should not be construed as legal advice. The views expressed in this blog are those of the author and do not necessarily reflect the views of the author’s law firm or its individual attorneys

January 25, 2017 by Jose A. Aquino

FIRST LEGAL CARGO FROM CUBA IN MORE THAN HALF-CENTURY ARRIVES IN THE U.S.

Yesterday, the first legal cargo from Cuba in more than 50 years arrived in the United States. Two containers containing 40 tons of artisanal charcoal arrived by sea at Port Everglades in Fort Lauderdale. The charcoal, made from Cuban marabu, produces a highly efficient burning charcoal.

Once in the United States, the charcoal will be packaged in 33-pound bags under the brand name Fogo. The charcoal will be sold to restaurants and online directly to consumers. Cuban marabu charcoal has excellent heating qualities, it does not produce sparks, and burns long and clean, making it desirable for restaurant pizza and bread ovens.

Cuban marabu is made from an invasive woody plant from Africa that is considered a nuisance in Cuba. The marabu charcoal is produced by private, worker-owned cooperatives. The charcoal is sold by the cooperatives to a local packager, which sells it on to state-run export firm CubaExport. Products of cooperative farms in Cuba can be exported to the United States under the exemptions to the U.S. embargo permitted by President Obama.

The Obama Administration eased restrictions on imports of goods and services from private Cuban entrepreneurs in early 2015. The new regulations set forth a list of goods that are prohibited from being exported to the U.S., such as livestock, food products, ammunition, metals and minerals. Other products are eligible for export if they were produced by private Cuban entrepreneurs and are not on the list of prohibited items.

September 8, 2016 by Jose A. Aquino

Licensing Procedures for Agricultural Commodities to Cuba

The Bureau of Industry and Security (BIS) is requesting public comments on the effectiveness of its licensing procedures for the export of agricultural commodities to Cuba. BIS is an agency of the United States Department of Commerce that implements U.S. Government sanctions against Cuba and certain other nations. BIS administers and enforces the Export Administration Regulations (EAR), which regulate the export of commercial commodities, including the exports of agricultural commodities to Cuba.

Comments must be received by October 11, 2016. BIS will include a description of the comments in its biennial report to Congress, as required by the Trade Sanctions Reform and Export Enhancement Act of 2000. BIS’s report must also include the number and types of licenses applied for, the number and types of licenses approved, the average amount of time elapsed from the date of filing of a license application until the date of its approval, and the extent to which the licensing procedures were effectively implemented.

October 9, 2015 by Jose A. Aquino

BILL TO EXPAND AGRICULTURAL TRADE WITH CUBA INTRODUCED IN HOUSE

On Tuesday, U.S. Rep. Rick Crawford, R-Ark., introduced legislation aimed at making it easier to export American agricultural goods to Cuba. The bill, H.R. 3687 or the Cuba Agricultural Exports Act, would repeal a law that prohibits financing the sales of U.S. agricultural products to Cuba and would give producers access to Department of Agriculture marketing programs that help the U.S. compete in foreign markets.

Currently, Cubans who want to buy U.S. agricultural products have to pay cash upfront. American farmers blame the upfront payment requirement for the lack of trade with Cuba. The farmers claim that without credit they cannot compete with countries like Vietnam and Brazil, who can extend credit to Cuba.

The bill also allows investments in Cuban agricultural businesses not affiliated with the Cuban government. All of Cuba’s agricultural imports from the United States are controlled by the state-owned entity Alimport, which purchases products for Cubans. Crawford’s bill upholds the cash-upfront requirement for goods sold to Alimport or any other entity controlled by the Cuban government. The bill, however, would allow limited investment, if U.S. officials certify that the entities are privately owned and not controlled by the Cuban government. “We’re trying to work outside of the realm of Alimport because that is a regime-controlled entity. What we want to do is facilitate private-sector investment and be able to access that market,” Crawford said.

Representative Crawford further stated:

“While the Administration has called on Congress to repeal the embargo entirely, I think the correct approach is to make cautious and incremental changes to current Cuba policies in ways that benefit the United States. The Cuba Agricultural Exports Act would allow our producers to compete on a level playing field in the Cuban market, a significant opportunity for American farmers and ranchers. Not only is it estimated that Cuba imports around 80 percent of its food supply, but the US also enjoys an inherent advantage due to our close geographic proximity and state of the art production and food distribution infrastructure. I believe that agriculture trading partnerships with Cuba will help build a foundation of goodwill and cooperation that will open the door to long-sought reforms in the same the way that American influence has brought reform to other communist states.”

House Agriculture Committee Chairman Michael Conaway, R-Texas, who cosponsored the bill said:

“Many in the agricultural industry have expressed a strong interest in increasing exports to Cuba due to the nation’s potential growth as a market for U.S. agricultural products. I appreciate Rick Crawford’s leadership on this bill—especially his efforts at reaching consensus with various stakeholders on this important issue.”

A copy of the bill can be found by clicking here.