User:Julissa1997/Trade Sanction Reform and Export Enhancement Act


 * The following is from the original page*

The Trade Sanction Reform and Export Enhancement Act (Title IX) was enacted by the United States Congress and signed by President Bill Clinton in 2000. 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 devices (defined and listed under section 201 of the Federal Food, Drug, and Cosmetic Act) became permitted. This act does not change any legislation in terms of receiving U.S. imports from Cuba. In addition, the act is not comprehensive and still heavily regulates what goods are exported 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 institutions. Credit and debit transactions are not authorized, but foreign banking institutions may finance transactions and U.S. banks 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. 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.

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This act is actually the Trade *Sanctions* Reform and Export Enhancement Act (TSRA) but I'm not sure how to edit the title.

Overview

The Trade Sanctions Reform and Export Enhancement Act (Title IX) was enacted by the United States Congress and signed by President Bill Clinton in 2000. Rep. Joe Skeen introduced bill 106 H.R.5426 (later incorporated into H.R.4461) which included the Trade Sanctions Reform and Export Enhancement Act (TSRA) on October 6th, 2000. The corresponding public law was enacted  as 106 P.L. 387 and then published in the Statutes at Large as 114 Stat. 1549.  This was later codified in 22 USCS §79. The act altered regulations in regards to U.S. trade and travel with Cuba and other specified countries. Specifically, the TSRA  established procedures to set new unilateral agricultural or medical sanctions and procedures for terminating existing ones. Along with this, the TSRA included trade and travel travel restrictions with Cuba and a list of other countries.

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 devices (defined and listed under section 201 of the Federal Food, Drug, and Cosmetic Act) became permitted. This act does not change any legislation in terms of receiving U.S. imports from Cuba. This is pursuant to the Cuban Assets Control Regulations which prohibits the import of merchandise that “(1) Is of Cuban origin; or (2) Is or has been located in or transported from or through Cuba; or (3) Is made or derived in whole or in part of any article which is the growth, produce or manufacture of Cuba.”

In addition, the act is not comprehensive and still heavily regulates what goods are exported to Cuba.

To enact unilateral agricultural and medical sanctions on a country, the president must submit to Congress, at least 60 days prior to its implementation, a report that describes the activity that is being restricted and the reason the country is being sanctioned with an approval from Congress. As for existing sanctions, the president must terminate any unilateral agricultural sanction or unilateral medical as of the date of the enactment of the TSRA. There are two exceptions  to these provisions, the first being if the United States is at war or if the Armed Forces has hostilities with the country its sanctioning. The second exception is for sanctions that prohibit or otherwise restrict  agricultural or medical commodities that could be used in weapons of mass destruction or are controlled by the United States Munitions List or Export Administration Act of 1979. These unilateral sanctions shall last for up to 2 years unless, 60 days before the date of termination,  the president submits to Congress a report of why he thinks the sanctions should continue. This is also subject to Congress’ approval.

TSRA & OFAC

Pursuant to 22 USCS § 7205, “State sponsors of international terrorism,” the TSRA further requires the export of agricultural commodities, medicine, or medical devices to Cuba or to the government of a country that the United States considers to be a sponsor of terrorism can only be made with a one-year license. This provision was later amended by the USA PATRIOT Act to include “the Taliban or the territory of Afghanistan controlled by the Taliban. This provision does not apply to the  governments of North Korea or Syria. The PATRIOT Act also amended this section to include “ or to any other entity in Syria or North Korea." Licenses are issued by the Department of the Treasury's Office of Foreign Assets Control (OFAC).

OFAC is the agency that carries out U.S.economic sanctions. The agency is responsible for processing thousands of licenses and guidance requests every year with a large portion of requests being under the TSRA. An OAFC license allows an individual or class of individuals to conduct business which would typically be prohibited by U.S. sanctions. In other words, under the new requirements set forth by the TSRA, prospective exporters who want to trade with countries like Cuba, Iran, or Sudan, must apply for a one year license from OFAC which will be for a specific export. Pursuant to 22 USCS §7205, OFAC is required to submit quarterly and biennial licensing reports to Congress.

Prohibition on United States assistance and financing

Exports to Cuba and commercial exports to Iran, Libya, North Korea, or Sudan are not able to receive any U.S. government assistance. This provision may be waived by the president for the purpose of nationa security or for humanitarian reasons. In 2001, there was an attempt made by Rep. Jose Serrano to amend the TSRA to allow for the financing of agricultural sales 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 institutions. Credit and debit transactions are not authorized, but foreign banking institutions may finance transactions and U.S. banks may confirm or advise such foreign bank letters or credit. Violations of this provision would result in penalties under the Trading With the Enemy Act.

Travel

Under the TSRA, the The Secretary of the Treasury is responsible for creating regulation to allow for travel to Cuba related to trading. Leisure travel and travel related transactions are still not allowed as codified in the TSRA and in the Cuban Assets Control Regulations. 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.

Developments

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. Since the implementation of TSRA, about $5 billion worth of agricultural products have been exported to Cuba.

On March 2, 2023, a bill was introduced, Freedom to Export to Cuba Act, which would amend the TSRA. This bill would repeal the president's power to impose an embargo as well as repeal various prohibition against assistance to Cuba.