ES / EN
- July 1, 2025 -
No Result
View All Result
OnCubaNews
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors
OnCubaNews
ES / EN
Home Cuba-USA

Washington fines agricultural company for selling food to Cuba without informing the government

Although the transactions are legal, they must be recorded. The Treasury Department says that the BIOMIN America company misinterpreted the law and therefore it was fined.

by
  • Rui Ferreira
    Rui Ferreira,
  • rui
    rui
May 7, 2020
in Cuba-USA
1
A group of people line up to buy in an agricultural market, this Monday in Havana. (Cuba) EFE/Yander Zamora

A group of people line up to buy in an agricultural market, this Monday in Havana. (Cuba) EFE/Yander Zamora

Although the sale of food to Cuba by the United States is permitted, the American exporter needs to inform the Treasury Department, which then issues a permit through the Office of Foreign Assets Control (OFAC). Failure to do so, exposes them to a hefty fine.

That was what happened with Biomin America, a company specialized in animal nutrition based in Kansas, which between July 2012 and September 2017 carried out 30 transactions of agricultural products to Cuba through its subsidiaries abroad, for a total of 44 violations of OFAC regulations. Biomin America is what is called a joint venture. Several foreign, non-subsidiary companies control part of its capital, even if they operate outside the United States.

These types of companies are also included in OFAC regulations and must request permission to establish a business relationship with Cuba, as established in article 31 C.F.R. part 515 (CACR), although in this case the agricultural products were not produced in the United States.

After being warned by the Treasury Department, Biomin America entered into a series of negotiations that ended in a settlement agreement: the government will not go to court. The company agreed to pay a penalty of 257,862 dollars.

In a statement, the Treasury Department explained that while it should have applied for the export permit, the company “failed to take the steps necessary to do so” but “developed a transaction structure that it incorrectly determined would be consistent with U.S. sanctions requirements.” Since it was not a deliberate attempt to conceal something, the Treasury Department concluded that there was no premeditated violation.

“OFAC’s decision to leave the matter in a non-serious violation does not prevent the imposition of a fine. But the interesting thing is that in these times when the Trump administration has imposed restrictions on Cuba, the Treasury Department decided to be more flexible than on other occasions. It must be said that the sale of food is still authorized, but you always have to ask for a license anyway. No one is spared in that sense. They give you permission, but you have to report what you are doing on a commercial level,” explained Jerome Richardson, a lawyer specialized in international trade.

Related Posts

The U.S. Department of State Photo: US Department of State / Archive.

Trump Administration Includes Cuba on List of Countries Not Cooperating Against Terrorism

May 13, 2025
Heidy Sánchez speaks to OnCuba where she is staying in Havana. Photo: Otmaro Rodríguez.

Deported and without her baby daughter: Heidy Sánchez’s desperation

May 7, 2025
Photo: EFE/Ernesto Mastrascusa.

Joe García: “Justice implies the future. Revenge doesn’t”

April 27, 2025
Pacific Standard Time in Cuba

Pacific Standard Time in Cuba: blurring political, mental, and emotional barriers

April 19, 2025

Politicians write to Mike Pompeo

On the other hand, Democratic Senator Patrick Leahy, the congressman of the same party as Jim McGovern and 25 other federal legislators, this Wednesday asked for explanations from Secretary of State Mike Pompeo and from Secretary of the Treasury Steven Mnuchin to confirm that U.S. policy does not preclude companies and humanitarians from providing essential medical equipment, food, and information to the people of Cuba to combat COVID-19.

The signatories clarify that they understand that the economic embargo policy does not prevent the sending of humanitarian aid of all kinds and recall that the traditional American policy is not to politicize the delivery of humanitarian aid.

“We write to urge you to immediately confirm that companies and humanitarians around the world are not precluded under U.S. law, regulation, or policy from providing medical equipment, food, other humanitarian items, and public health information, to Cuba… which already suffers from acute shortages of food and medicines, is facing a public health crisis due to COVID-19.  Given Cuba’s proximity to the United States, transmission of the virus there threatens the health and safety of not only Cubans but Americans and others in the Caribbean region, regardless of whatever measures the Cuban Government takes to try to limit its spread,” the signatories say.

The letter states that regardless of whether these shipments are limited by the embargo, federal lawmakers are aware of information that foreign companies have been banned from sending such aid to Cuba for fear of sanctions. “This is dangerous and contrary to our longstanding tradition of not politicizing the delivery of humanitarian aid.  In such an unprecedented emergency caused by a deadly virus that is so easily transmissible, public health and safety must take precedence.”

The State Department and the Treasury Department did not respond to calls on the matter by the end of Wednesday evening.

  • Rui Ferreira
    Rui Ferreira,
  • rui
    rui
Tags: coronavirusCuba-USA RelationsOffice of Foreign Assets Control (OFAC)U.S. sanctions against Cuba
Previous Post

Guantánamo: main source of coronavirus infection are Cuban asymptomatic travelers

Next Post

Cuba: current economic emergencies for a post-COVID-19 context

Rui Ferreira

Rui Ferreira

Mi padre era actor y mi abuelo general. Una mezcla lo suficientemente explosiva como para generar un tipo que solo hace preguntas, no le gusta las respuestas a medias, y refleja todo eso en la mejor profesión del mundo. Por lo demás, me gusta viajar y fotografiar. A veces eso da plata, otras veces solo entretiene. Pero siempre vale la pena. Por lo que queda, dejémonos de pretensiones.

rui

rui

Next Post
Photo: Otmaro Rodríguez

Cuba: current economic emergencies for a post-COVID-19 context

The total death toll from the new coronavirus in Cuba is 74; meanwhile, the contagions reaches 1,741 people. Photo: EFE / Ernesto Mastrascusa.

Number of infections by COVID-19 in Cuba today dropped to 12. Only one deceased reported

Photo: Getty Images/Archive.

Cuban scientists adapt diagnostic test to detect COVID-19

Comments 1

  1. James Buckwalter-Arias says:
    4 years ago

    Does OFAC deny applications for permits to sell food to Cuba?

    Reply

Leave a Reply Cancel reply

The conversation here is moderated according to OnCuba News discussion guidelines. Please read the Comment Policy before joining the discussion.

Your email address will not be published. Required fields are marked *

Most Read

  • The Enchanted Shrimp of the Cuban Dance

    3054 shares
    Share 1222 Tweet 764
  • Rachel Sánchez: the taste of Cuba on MasterChef USA

    11 shares
    Share 4 Tweet 3
  • Private sector and tourism in Cuba. Why not?

    9 shares
    Share 4 Tweet 2
  • CIA documents revealing attempts to assassinate Fidel and Raúl Castro declassified

    44 shares
    Share 18 Tweet 11
  • A sanctuary for jazz in Cuba: César López’s dream

    7 shares
    Share 3 Tweet 2

Most Commented

  • Photo: Kaloian.

    Private sector and tourism in Cuba. Why not?

    9 shares
    Share 4 Tweet 2
  • About us
  • Work with OnCuba
  • Terms of use
  • Privacy Policy
  • Moderation policy for comments
  • Contact us
  • Advertisement offers

OnCuba and the OnCuba logo are registered® trademarks of Fuego Enterprises, Inc., its subsidiaries or divisions.
OnCuba © by Fuego Enterprises, Inc. All Rights Reserved.

No Result
View All Result
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors

OnCuba and the OnCuba logo are registered® trademarks of Fuego Enterprises, Inc., its subsidiaries or divisions.
OnCuba © by Fuego Enterprises, Inc. All Rights Reserved.

Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}