By Rafael Lorente
Washington Bureau

WASHINGTON · The Treasury Department has begun issuing licenses to several companies doing business with Cuba to allow those exporters to receive payments from the island that had been frozen, pending a federal review of Cuba trade policies.

Several companies recently reported having payments from Cuba for agricultural exports held up by their banks, while Bush administration officials consider requiring Cuba to pay cash in advance of shipment for any agricultural products the island purchases from U.S. companies.

Until recently, the practice had been for Cuba to pay American exporters while the goods were in transit or after they had arrived on the island, but before title had changed hands.

The Treasury Department's Office of Foreign Assets Control, which enforces the existing U.S. embargo and travel restrictions to Cuba, is not expected to make a decision about whether to change the business practice until after the holiday weekend.

But in order to clear any deals that had already been paid for, OFAC began issuing licenses Wednesday for each individual transaction.

"U.S. financial institutions interdicted a handful of transactions due to confusion among some agribusinesses about the types of payments authorized for Commerce-licensed agricultural sales to Cuba.

Thus, OFAC has adopted an interim specific licensing policy for exporters whose Cuban payments have been interdicted pending further guidance on the payment policy for shipping agricultural goods to Cuba, pursuant to licenses issued by the Commerce Department. OFAC is working directly with these exporters and is currently issuing specific licenses to unblock their payments," said a statement from a Treasury spokeswoman.

Exporters are worried that if OFAC decides to change the way food sales to Cuba are processed, it could dry up what has been a multi-million-dollar business for American companies.

Since 2000, when Congress authorized cash-only sales of agricultural products to Cuba, the island has purchased almost $715 million in goods from the United States.

But some Bush administration officials say the law Congress passed called for cash in advance payments and that the practice of shipping the goods before payment is received does not meet those terms.

Members of Congress from both parties have written to the Bush administration opposing any changes.

Advocates of tougher U.S. policies on Cuba say such restrictions could increase the White House's economic pressure on the island.

Rafael Lorente can be reached at rlorente@sun-sentinel.com or 202-824-8225 in Washington.

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