Trade sanctions reform and export enhancement act
Encyclopedia
The Trade Sanction Reform and Export Enhancement Act (Title IX) was passed by United States
’ former President Bill Clinton
in 2000 (www.fas.usda.gov). The act altered regulations in regards to U.S. trade with Cuba
. Under the act, the trade of certain agricultural commodities (defined and listed under section 102 of the Agricultural Trade Act of 1978
) and medicine
/medical device
s (defined and listed under section 201 of the Federal Food, Drug, and Cosmetic Act
) became permitted (www.bis.doc.gov
). This act does not change any legislation
in terms of receiving U.S. import
s from Cuba. In addition, the act is not comprehensive and still heavily regulates what goods are export
ed to Cuba.
Trade of any commodities
must follow strict regulations. Exports to Cuba can only be paid in cash
only sales that are paid in advance and must be financed by third country financial institution
s (www.fas.usda.gov). Credit
and debit
transactions are not authorized, but foreign banking institutions may finance transactions and U.S. bank
s may confirm or advise such foreign bank letters or credit. In terms of traveling to trade, travel to and from Cuba can be permitted under this act with special approval for individuals trading any of the commercial goods permitted under the terms of the act. Leisure travel and travel related transactions are still not allowed. In order to travel to Cuba for agricultural or medical trade, a license must be obtained through the Treasury Departments Office and Foreign Assets Control. Any person who violates the terms of the Trade Sanction Reform and Export Enhancement Act will be punished with the terms following the Trading with the Enemy Act
(www.fas.usda.gov).
As a result of this act, Cuba has received many goods from the United States. In 2006, Cuba was ranked the 33rd largest market for U.S. agricultural exports (www.usda.gov).
"Implementation of the Trade Sanctions Reform and Export Enhancement Act: Questions and Answers." Bureau of Industry and Security: U.S. Department of Commerce. Bureau of Industry and Security. 18 Oct 2009..
"TITLE IX." FAS Online. 18 Nov 2005. Foreign Agricultural Service. 18 dec 2009..
"Trade with Cuba." United States Department of Agriculture: Foreign Agricultural Service. 12 Jan 2009. USDA. 18 Oct 2009..
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
’ former President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
in 2000 (www.fas.usda.gov). The act altered regulations in regards to U.S. trade with Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
. Under the act, the trade of certain agricultural commodities (defined and listed under section 102 of the Agricultural Trade Act of 1978
Agricultural Trade Act of 1978
The the Agricultural Trade Act of 1978 directed the establishment of trade offices in major centers of commerce throughout the world. The agricultural trade offices are operated by the Foreign Agricultural Service to develop, maintain, and expand international markets for U.S...
) and medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
/medical device
Medical device
A medical device is a product which is used for medical purposes in patients, in diagnosis, therapy or surgery . Whereas medicinal products achieve their principal action by pharmacological, metabolic or immunological means. Medical devices act by other means like physical, mechanical, thermal,...
s (defined and listed under section 201 of the Federal Food, Drug, and Cosmetic Act
Federal Food, Drug, and Cosmetic Act
The United States Federal Food, Drug, and Cosmetic Act , is a set of laws passed by Congress in 1938 giving authority to the U.S. Food and Drug Administration to oversee the safety of food, drugs, and cosmetics. A principal author of this law was Royal S. Copeland, a three-term U.S. Senator from...
) became permitted (www.bis.doc.gov
Bureau of Industry and Security
The Bureau of Industry and Security is an agency of the United States Department of Commerce which deals with issues involving national security and high technology. A principal goal for the bureau is helping stop proliferation of weapons of mass destruction, while furthering the growth of United...
). This act does not change any legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
in terms of receiving U.S. import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
s from Cuba. In addition, the act is not comprehensive and still heavily regulates what goods are export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
ed to Cuba.
Trade of any commodities
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
must follow strict regulations. Exports to Cuba can only be paid in cash
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...
only sales that are paid in advance and must be financed by third country financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s (www.fas.usda.gov). Credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
and debit
Debit
Debit and credit are the two aspects of every financial transaction. Their use and implication is the fundamental concept in the double-entry bookkeeping system, in which every debit transaction must have a corresponding credit transaction and vice versa.Debits and credits are a system of notation...
transactions are not authorized, but foreign banking institutions may finance transactions and U.S. bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s may confirm or advise such foreign bank letters or credit. In terms of traveling to trade, travel to and from Cuba can be permitted under this act with special approval for individuals trading any of the commercial goods permitted under the terms of the act. Leisure travel and travel related transactions are still not allowed. In order to travel to Cuba for agricultural or medical trade, a license must be obtained through the Treasury Departments Office and Foreign Assets Control. Any person who violates the terms of the Trade Sanction Reform and Export Enhancement Act will be punished with the terms following the Trading with the Enemy Act
Trading with the Enemy Act
The Trading with the Enemy Act, sometimes abbreviated as TWEA, is a United States federal law, , enacted in 1917 to restrict trade with countries hostile to the United States. The law gives the President the power to oversee or restrict any and all trade between the U.S. and its enemies in times of...
(www.fas.usda.gov).
As a result of this act, Cuba has received many goods from the United States. In 2006, Cuba was ranked the 33rd largest market for U.S. agricultural exports (www.usda.gov).
"Implementation of the Trade Sanctions Reform and Export Enhancement Act: Questions and Answers." Bureau of Industry and Security: U.S. Department of Commerce. Bureau of Industry and Security. 18 Oct 2009.
"TITLE IX." FAS Online. 18 Nov 2005. Foreign Agricultural Service. 18 dec 2009.
"Trade with Cuba." United States Department of Agriculture: Foreign Agricultural Service. 12 Jan 2009. USDA. 18 Oct 2009.