http://www.exportlawblog.com/archives/188 Latest News on DDTC, BIS, OFAC, and other export law matters Wed, 07 Jan 2009 04:06:50 +0000 http://wordpress.org/?v=2.5.1 http://www.exportlawblog.com/archives/188#comment-2773 Mike Deal Mon, 02 Jul 2007 17:30:49 +0000 http://www.exportlawblog.com/archives/188#comment-2773 In support of this change, it should be noted that under commercial law governing "cash against documents", or "bills of exchange" as its traditionally known, if the draft is "at sight" the seller retains the right of stoppage as long as the shipment remains in the hands of the carrier or its agent, if for any reason the draft either is not honored or paid. All the more reason not to regard this mechanism as a credit facility. If OFAC would allow Cuban bank(s) to establish coresponding accounts at US banks to facilitate permitted agricultural and medical trade, there could even greater security that documentary sales would not constitute an extension of credit. In support of this change, it should be noted that under commercial law governing “cash against documents”, or “bills of exchange” as its traditionally known, if the draft is “at sight” the seller retains the right of stoppage as long as the shipment remains in the hands of the carrier or its agent, if for any reason the draft either is not honored or paid. All the more reason not to regard this mechanism as a credit facility. If OFAC would allow Cuban bank(s) to establish coresponding accounts at US banks to facilitate permitted agricultural and medical trade, there could even greater security that documentary sales would not constitute an extension of credit.

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