Destination

Percentage Of Respondents Selecting Destination

Puerto Rico

45%

U.S. Virgin Islands

37%

Bahamas

27%

Jamaica

27%

St. Maarten

24%

St. Barts

22%

British Virgin Islands

20%

Republic of Cuba

15%

Within the United States, ABB Ltd. has the following subsidiaries: Norwalk, Connecticut-based ABB Inc.; Bloomfield, New Jersey-based ABB Lummus Global Inc.; and Houston, Texas-based ABB Vetco Gray Inc.

The additional regulation would require United States-based companies using provisions of the TSRA to export products to the Republic of Cuba to notify in writing the OFAC and/or BXA of the specifics of any financial transaction relating to 1) how payment was received from the Republic of Cuba-based purchaser and 2) when payment was received from the Republic of Cuba-based purchaser.  Currently, the TSRA requires that a United States-based company comply with the provisions of the TSRA, but does not require that a United States-based company report to the OFAC and/or BXA. 

An individual involved in the discussions regarding the additional regulation reported that the reason for seeking additional reporting requirements is due to “no confidence that U.S. companies will comply with the ‘no financing’ provisions of the TSRA, especially large U.S. companies that want to establish a foothold in Cuba.”

1. How does the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) affect export license requirements to Cuba?  BXA allows exports and certain reexports of "agricultural commodities" to Cuba under the License Exception AGR.

2. Which items are included in the definition of agricultural commodities?  TSRA defines agricultural commodities by reference to Section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. §5602). Agricultural commodities include, but are not limited to, food, feed, fish, shellfish and fish products; beer, wine and spirits; soft drinks; livestock; fiber, including cotton, wool and other fibers; tobacco and tobacco products; wood and wood products, including lumber and utility poles; seeds; and reproductive materials such as fertilized eggs, embryos and semen. In addition, vitamins, minerals, food additives and dietary supplements, and bottled water are also included. Organic and inorganic fertilizers are also included, unless BXA classifies the fertilizer under ECCN 1C997 (i.e., dry fertilizers containing more than 15% ammonium nitrate- see question #3 below). The Department of Agriculture maintains a [pdf] list of agricultural commodities on its Web site that are eligible for License Exception AGR. There are three commodities on this list- live horses, western red cedar, and fertilizers- that require an official commodity classification from BXA to determine whether or not they are eligible for AGR. Note that bottled water, vitamins, minerals, food additives and dietary supplements are not the Department of Agriculture list, but are considered agricultural commodities by BXA and [Office of Foreign Assets Control of the United States Department of the Treasury in Washington, D.C.] OFAC.  BXA and OFAC use the same definitions for agricultural commodities.

3. Are there any agricultural items that are not eligible for this program?  Yes. Any item that is on the Commerce Control List is not eligible. For example, live horses exported by sea (ECCN 0A980) and unprocessed western red cedar (ECCN 1C988) are not eligible. Neither is ammonium nitrate, including certain fertilizers and fertilizer blends. Dry fertilizers containing more than 15% by weight ammonium nitrate are classified as ECCN 1C997 and are not eligible. Dry fertilizer containing 15% or less ammonium nitrate and liquid fertilizers regardless of the concentration of ammonium nitrate are eligible. Exporters who are not sure if their products are eligible should submit a commodity classification request to BXA.

4. May I use License Exception AGR to export agricultural commodities to government end-users in Cuba?  Yes. Cuban government entities may be recipients of U.S. exports of agricultural commodities, unless the Cuban government entity is involved in promoting international terrorism (e.g., listed as a Specially Designated Terrorists or Foreign Terrorist Organization), has been denied export privileges by the Department of Commerce and the transaction would violate the terms of the denial order, or is engaged in weapons proliferation activities).

5. Are pesticides and herbicides eligible for License Exception AGR?  No. The definition of agricultural commodities used in TSRA does not include pesticides, insecticides, or herbicides. Potential exporters, however, may apply to export such items to Cuba under BXA's standard licensing procedures. In general, our policy is to deny applications for licenses to export most items to Cuba; however, pesticides and herbicides might be approved on a case-by-case basis as exports to provide support for the Cuban people (see Section 746.2(b) of the EAR). Applications to export such items to well known international organizations for public health purposes are those least likely to be denied.

6. Are genetically modified organisms (GMOs) eligible for License Exception AGR?  Whether or not an item is genetically modified does not affect its eligibility for License Exception AGR. If an item is both an agricultural commodity and EAR99, it is eligible. Note that certain GMOs are classified on the CCL under ECCN 1C353 and are not eligible for License Exception AGR or OFAC's expedited review procedures. In addition, genetically modified materials that are not within the definition of agricultural commodity (see question 2 above) are not eligible. Technology for production of genetically modified organisms is not eligible.

7. May I use License Exception AGR to export technology, software and equipment used to manufacture or grow agricultural commodities in Cuba?  No. License Exception AGR applies only to exports and reexports of U.S. agricultural commodities to Cuba. The TSRA implementing rule does not affect U.S. export regulations on the export of technology, software and equipment used to grow or manufacture agricultural commodities.

8. May I use License Exception AGR to export agricultural equipment?  No. Exports of agricultural equipment, hand tools or machinery, are not eligible for AGR. Applications to export agricultural equipment are subject to a general policy of denial. However, donations of hand tools and equipment suitable for small farms, such as rotor tillers, may be eligible for export under License Exception GFT (see Section 740.12(b) of the EAR) or under an export license issued by BXA.

9. Are cigarettes agricultural commodities?  Yes. Tobacco and tobacco products, including cigarettes, are included in the definition of agricultural commodities.

10. Are cardboard boxes agricultural commodities?  No. Cardboard boxes are not agricultural commodities, and therefore, are not eligible for License Exception AGR.

11. May I use License Exception AGR to export donations of food, other agricultural commodities and samples of agricultural commodities?  Yes, exporters may use License Exception AGR to export donations of food and non-food agricultural commodities and commercial samples. For donations and samples, there is no contract requirement.  The exporter must ship the goods within12 months of the date of BXA's notification to the exporter that no reviewing agency objected to the use of License Exception AGR. Exporters, however, may want to also consider using License Exception Gift Parcels and Humanitarian Donations (GFT)- if they meet the eligibility criteria for this license exception. License Exception GFT authorizes exports and reexports of food in gift parcels by an individual to another individual or eligible group without a license.  In addition, GFT authorizes exports or reexports by certain U.S. charitable organizations (see Section 740.12(b)(3) of the EAR for requirements the organization must meet) of donations to meet basic human needs when those groups or organizations have experience in such charitable activities. See Section 740.12 of the Export Administration Regulations for information about License Exception GFT.

12. May I still use Exception GFT for gift parcels containing food to Cuba?  Yes, if an export meets all the criteria, an exporter may continue to use License Exception GFT to donate food and other eligible commodities (e.g., clothing, soap) to Cuba. Note that non-food agricultural commodities are not eligible for export in gift parcels (see Section 740.12(a)).

13. May I use License Exception AGR to export food and medical items to Iran, Libya, or Sudan?  No. License Exception AGR applies only to eligible agricultural commodities to Cuba. Exporters must have authorization from OFAC prior to exporting U.S. agricultural or medical commodities to Iran, Libya, or Sudan or reexporting such commodities by U.S. persons to Iran, Libya, or Sudan.

14. Why are medicines and medical devices ineligible for this program for Cuba?  The Trade Sanctions Reform and Export Enhancement Act did not clearly repeal or supersede the relevant Cuban Democracy Act (CDA) provisions on medical items so the latter's requirements still apply. The CDA requires a specific license for exports of medicines and medical items. In addition, there are certain criteria, such as on-site monitoring requirements, that have to be met.

15. May I travel to Cuba in connection with exports I make or plan to make under License Exception AGR?  License Exception AGR authorizes exports and reexports of agricultural commodities only. It does not affect or replace existing OFAC regulations relating to travel to Cuba. Anyone wishing to travel to Cuba must still comply with those regulations.

16. Does License Exception AGR authorize the export of a vessel, fuel, or ship stores with respect to vessels carrying authorized agricultural commodities to Cuba?  No. OFAC and BXA licensing requirements for vessels bound for Cuba or for items on those vessels remain in place. BXA requires a license for the export of a vessel and for ship stores to Cuba even if the vessel is carrying only authorized commodities to Cuba. There is no License Exception available for exports of vessels or ship stores to Cuba. Exporters will need a specific license to export a vessel to Cuba even if it is a "temporary sojourn" and the ship will not remain in Cuba. BXA's average processing time for applications for such license applications is about 35 days. Persons interested in shipping eligible commodities to Cuba should submit their license applications early.

17. Are vessels carrying agricultural commodities to Cuba subject to the Cuban Democracy Act's 180 day ban on entering U.S. ports?  OFAC regulations governing such activities are unchanged. Those regulations provide a waiver for vessels that are delivering commodities authorized by the U.S. Government or items exempt from regulation (See 31 C.F.R. Part 515.550). Interested parties should contact OFAC for further information on this subject.

18. Is there a waiver of the contract requirement for emergency cases?  No. Exporters must have a written contact before shipping under License Exception AGR unless the shipment is a donation or a commercial sample.

19. What if the multi-purpose application form (BXA-748P) is incomplete when submitted?  We will not register the notification in BXA's electronic data system until all the required information on the 748P form is complete. We will work with exporters, but if the applicant fails to provide the required information, we will return the notification. BXA and the other government agencies will not review incomplete applications.

20. If I obtain authorization to use License Exception AGR to export a certain amount of an agricultural commodity under License Exception AGR and, subsequent to that authorization, my customer wants to increase the amount purchased to a level that exceeds the amount on my AGR authorization, may I ship that increased amount?  No. The exporter would have to submit a new notification and obtain a new AGR authorization before shipping the additional amount. There is no penalty for exporting less than authorized, but an exporter may not exceed the authorized levels.

21. May I substitute items if the total export remains the same in dollar value and quantity?  No. An exporters may not substitute items that were not included in the original notification and for which BXA confirmed that no reviewing agency objected to the use of License Exception AGR. Exporters can increase their flexibility by providing, on their notifications, general descriptions of the agricultural commodities they wish to export. For example, one might list "grains (e.g., rice, corn, wheat, or barley)" or "various vegetables (e.g., peas, green beans, tomatoes)."

22. Will BXA develop a list of approved entities to whom we may ship without further notification?  No. BXA has no plans to create such a list. BXA maintains the notification requirement to allow review of the commodities and the end-user, and to collect the information that the Act requires that BXA report to Congress.

23. If the purchaser (or end-user) changes after I've submitted the prior notification, do I need to submit a new notification, in essence starting the process all over again?  Yes. These exports are transaction specific and any change will require a new notification.

24. Do I need to start the notification process all over again if I am shipping in quarterly installments over the one year period?  Not necessarily. Exporters may continue to ship the authorized agricultural commodities to the authorized end-user until they exhaust the authorized amount or 12 months have elapsed since the written contract was signed. The regulations do not impose a limit on the number shipments that may be made within these parameters.

25. What do I do if the purchaser in Cuba asks me to ship to a recipient or a location that is different from the recipients or locations I submitted in my prior notification?  Exporters may not ship to any recipients other than those listed in their AGR notification. Before shipping to another recipient, the exporter must submit a new notification and obtain a new confirmation from BXA that no reviewing agency objects to the use of License Exception AGR. However, exporters may ship to the approved recipient at any of the recipient organization's locations in Cuba, not just the location listed in the notification. License Exception AGR may not be used under any circumstances to ship to destinations outside Cuba.

26. I have an item that I believe is both an agricultural commodity and EAR99. How do I use License Exception AGR?  Begin by filing a notification with BXA.

27. How do I file a notification?  You may either use the BXA multipurpose form 748P or file electronically through BXA's Simplified Network Application Procedure (SNAP).

28. Where can I get forms?  You may request forms on line or by contacting the Office of Exporter Services at 202-482-4811. In addition, the Department of Commerce's Commercial Service district offices often have forms. Check your local listing for the locations of Department of Commerce offices.

29. What is SNAP?  SNAP is the acronym for BXA's Simplified Network Application Process. This allows exporters to electronically submit export/reexport license applications, notifications, and commodity classification requests. See the online information about SNAP.

30. How will I know if BXA has registered my notification or whether any reviewing agency has objected to my notification, and when I may ship?  Exporters may call BXA's "System for Tracking Export License Applications" (STELA) at 202-482-2752 and enter the Application Control Number (it begins with "Z" followed by six digits) for the status of their notifications. You must wait until either STELA reports that there has been no objection or until you receive written confirmation that no reviewing agency has objected.

31. What is STELA?  STELA is the acronym for BXA's automated System for Tracking Export License Applications. It is an automated voice response system that can be accessed using a touch-tone phone.

32. How do I complete the notification for License Exception AGR?  To submit a notification, complete the multipurpose export authorization form (BXA-748P). This is the same form that exporters use to submit license applications and commodity classification requests. For submitting notifications, you only need to complete certain parts of the form, as indicated below: BLOCKS: 1. Contact person - someone who can provide information about the application.  2. Telephone number  3. Fax number  4. Date of application  5. Type of application - check OTHER  6. Documents submitted - check LETTER OF EXPLANATION (optional)  7. through 13. - Not applicable (do not fill out)  15. Other party - (optional)  16. Purchaser - enter the name and address of the Cuban or other purchaser, if applicable (leave blank if the transaction involves a donation or sample)  17. Intermediate consignee - enter the name and address of the Cuban or other intermediate consignee, if applicable (this could be someone who will receive the goods in Cuba and deliver them to the ultimate consignee)  18. Ultimate consignee - enter the name and address of the person or organization in Cuba who will receive and use the goods  19. End-user - enter the name and address of the end-user(s), if applicable (complete this block if the ultimate consignee will not be the final end-user, for example, in a situation where the ultimate consignee acts as a distributor)  20. Original ultimate consignee - enter the name and address of the foreign entity (this block is to be used only for reexport transactions)  21. Specific end-use - enter a brief statement describing the end-use (e.g., wheat to make flour; food for a hotel restaurant)  22. (a) - ECCN - enter EAR99 (you must be certain of this; any other classification is not eligible for the provisions of License Exception AGR ) (b) - N/A (c) - Model number, if applicable (d) - enter the commodity classification number (CCATS) if previously classified by BXA (e) - Quantity - how many units? (f) - Units - enter applicable measure of quantity (lbs., tons, boxes, containers, etc.) (g) - Unit price - enter fair market value, for sales and donations (h) - Total price - multiply (e) times (f) (i) - Manufacturer - if applicable (j) - Technical description - enter a detailed description for all commodities intended for export/reexport; use a letter of explanation if necessary  23. Total value - enter value of all items on application  24. Additional information - enter here or in a cover letter any additional information that will help us understand the application  25. Signature/printed name/title

33. Do I need a BXA commodity classification prior to submitting a License Exception AGR notification?  Exporters may need a commodity classification for exports of certain agricultural commodities to Cuba. BXA requires that a BXA commodity classification determination be submitted with notifications for fertilizers, western red cedar, and live horses. The U.S. Department of Agriculture website includes a list of eligible agricultural commodities, most of which are eligible for License Exception AGR. BXA has determined that all items on that list except for western red cedar and live horses are EAR99 and do not require a prior commodity classification. Fertilizers, although not on that list, are considered agricultural commodities for purposes of License Exception AGR but do require a prior classification. The twelve-day notification period does not provide sufficient time to make commodity classification determinations as part of the notification process; therefore, exporters must request a commodity classification prior to submitting a notification for items that may be on the CCL.

34. Do I need a BXA commodity classification prior to submitting a license application to OFAC to export agricultural commodities, medicine, and medical devices to Iran, Libya, or Sudan?  The answer depends on the items that you propose to export: Agricultural Commodities: You do NOT need a BXA commodity classification prior to applying for a license to export agricultural commodities on the USDA's eligible commodities list [pdf] with the exception of western red cedar and live horses. BXA has reviewed the items on that list and classified them as EAR99, with the exception of western red cedar and live horses. You do need a commodity classification for fertilizers (which are considered agricultural commodities for purposes of License Exception AGR even though not on the eligible commodities list), western red cedar, and live horses. Note that bottled water, vitamins, minerals, food additives and dietary supplements also are not the Department of Agriculture list, but are considered agricultural commodities for the purposes of License Exception AGR.  Medicine: Exporters are not required to have commodity classifications for exports of medicines prior to submitting an application to OFAC. However, medicines on the Commerce Control List are not eligible for OFAC's expedited procedure. Anyone uncertain about the classification of the medicine must submit a commodity classification request to BXA before submitting an application to OFAC.  Medical Devices (e.g., supplies, instruments and equipment): You must have an official commodity classification for medical devices that are NOT included in the BXA's list of EAR99 medical supplies prior to submitting an application to OFAC.

35. How do I complete the BXA 748P form for a commodity classification request?  To request a commodity classification in advance of submitting a TSRA notification to BXA for a proposed export to Cuba or submitting a license application to OFAC for a proposed export to Iran, Libya, or Sudan, fill out the multipurpose export authorization form (BXA-748P) as indicated below.  BLOCKS:  1. Contact person- someone who can provide information about the application 2. Telephone number  3. Fax number  4. Date of application  5. Type of application - check CLASSIFICATION REQUEST  6. Documents submitted - check TECH SPECS & LETTER OF EXPLANATION (optional)  7. and 8. - Not applicable (do not fill out)  9. Special purpose - Enter "TSRA"  10. through 13. - N/A  14. Applicant - enter the name and address of the requesting firm or individual  15. Other party - (optional)  16. Purchaser - N/A  17. Intermediate consignee - N/A  18. Ultimate consignee - enter the name and address, if you know it  19. End-user - enter the name and address of the end-user(s), if you know them  20. Original ultimate consignee - N/A  21. Specific end-use - enter a brief statement describing the end-use, if you know it  22. (a) - ECCN - enter your recommended classification number (b) - N/A (c) - Model number - if applicable (d) - enter the commodity classification number (CCATS) if previously classified by BXA (e) - Quantity - N/A (f) - Units - N/A  (g) - Unit price - N/A (h) - Total price - N/A (i) - Manufacturer - if applicable (j) - Technical description - enter a detailed description of all commodities to be classified; use a cover letter/letter of explanation if necessary  23. Total value - N/A  24. Additional information - for a classification request, use this space to explain why you believe the ECCN entered in block 22(a) is appropriate. This explanation must contain an analysis of the item in terms of the technical control parameters specified in the appropriate ECCN. If you have not identified a recommended classification in block 22 (a), please state the reason why you cannot determine the appropriate classification.  25. Signature/Printed name/Title

Cut Flowers and Branches

Federal Phytosanitary Certificate (PC) and Import Permit (IP) are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

Fruits and Vegetables

PC and IP are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

Grain

For shipments contracted other than as a consequence of the effects of Hurricane Michelle for grains and grain products:  PC and IP are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

For shipments contracted as a consequence of the effects of Hurricane Michelle for wheat, corn, rice, soybeans, dried beans, rice, and their milled or flour products, the following requirements apply:  A site visit to U.S. processing, treatment and storage facilities, and shipping points is required by Cuba prior to the import of grain and grain products.  Site visits held in December 2001 satisfy this requirement for shipments contracted as a consequence of the effects of Hurricane Michelle.  A PC is required.

The following Additional Declaration (AD) is required: “The (commodity) in this shipment meets the import requirements of the Republic of Cuba and is free from pests specified in Annex 1.”

Treatment by fumigation is required if the shipment is not found free of Annex 1 pests.  For insect pests other than those listed in Annex 1, the policies and procedures for the presence of live insects in the U.S. Grain Standards will apply.

The Phytosanitary Certificate must be accompanied by a pest list, titled Annex 1, as an attachment.  This pest list contains the following insects, which either do not occur in Cuba or have limited distribution and are under official control programs.  Annex 1 pests: Trogoderma granarium Everst.  Tribolium destructor Hyten Trogoderma sp.  Pyralis farinalis l.  Tenebrio molitor l.  ephestia kuehniella Zail.  Ptinus velliger f.   prostephanus trunchatun Horn.  Ptinus fur l.  gnatocarus cornutus f.  Tribolium audax H Niptus hololeucus Falderm Tribolium adens Charp.

Shipments must be free of soil, leaf, stalks, other plant residues and foreign material according to U.S. Grain Standards.  Packaged commodities must be in new packaging and well identified.  Allowable packaging is paper, cork, plastic, and other synthetic material.  Fumigation is required for rough rice.  Treatment details will be documented on the phytosanitary certificate.  A corresponding fumigation certification that includes the date of treatment, dosage, and exposure time must accompany any commodity that is fumigated.  Either Phosphine applied according to GIPSA policies and procedures or Methyl Bromide is an acceptable treatment.

Plants

PC and IP are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

Seeds

PC and IP are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

Wood

PC and IP are required.  Do not certify unless an IP is presented and all requirements can be met. (/Harmful organisms that are prohibited/).  If an IP is presented, forward a copy of the IP to Export Services at 301-734-3249 for review prior to certifying.

Rank 2001

Company Name

Headquarters Country

Primary Operating Sectors

1

General Electric

United States

Electrical/Electronics

2

Microsoft

United States

IT

3

IBM

United States

IT

4

Sony

Japan

Consumer Goods

5

Coca-Cola

United States

Food/Beverages

6

Toyota

Japan

Engineering

7

Nokia

Finland

Electrical/Electronics

8

Wal-Mart

United States

Retail

9

Intel

United States

IT

10

Citigroup

United States

Financial

11

General Motors

United States

Engineering

12

AIG

United States

Financial

13

Ford

United States

Engineering

14

3M

United States

Consumer Goods/Industrial Goods

15

Hewlett-Packard

United States

IT

16

DaimlerChrysler

Germany

Engineering

17

Nestlé

Switzerland

Food/Beverages

18

Southwest Airlines

United States

Transportation

19

Johnson & Johnson

United States

Healthcare

20

Berkshire Hathaway

United States

Financial

21

BP

United States

Energy/Chemicals

22

Federal Express

United States

Transportation

23

Disney

United States

Media/Leisure

24

BMW

Germany

Engineering

25

Dell

United States

IT

26

Exxon Mobil

United States

Energy/Chemicals

=27

Cisco Systems

United States

IT

=27

Procter & Gamble

United States

Food/Beverages

29

ABB

Switzerland/Sweden

Engineering

30

Royal Dutch/Shell

Netherlands/United Kingdom

Energy/Chemicals

31

L'Oreal

France

Consumer Goods

32

McDonald's

United States

Media/Leisure

33

Vivendi Universal

France

Utilities & Media/Leisure

34

Virgin

United Kingdom

Transportation

35

Merck

United States

Healthcare

36

Airbus Industrie

France/Germany/United Kingdom/Spain

Engineering

37

Siemens

Germany

Electrical/Electronics

38

Allianz

Germany

Financial

39

Volkswagen

Germany

Engineering

40

AOL Time Warner

United States

Media/Leisure

41

HSBC

United Kingdom/Hong Kong

Financial

42

Bombardier

Canada

Engineering

43

Philip Morris

United States

Food/Beverages

44

Porsche

Germany

Engineering

45

SAP

Germany

IT

46

Axa

France

Financial

47

Unilever

Netherlands/United Kingdom

Food/Beverages

=48

Nike

United States

Consumer Goods

=48

NTT DoCoMo

Japan

Telecommunication

50

Singapore Airlines

Singapore

Transportation