July 29, 2005
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OFAC Confirms Permissible Practices Under Cash in Advance for Commerce-Licensed Agricultural Shipments to Cuba

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.

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