U.S. Treasury clarification will benefit rice farmers, millers

The following press release was forwarded to us this morning:

(Washington, D.C.) – U.S. Sen. David Vitter announced that the U.S. Department of Treasury has clarified a Cuban-related tax regulation benefiting rice farmers and millers.

Vitter and Louisiana rice farmers and millers have been working to get clarification from Treasury on a rule requiring advance payments in permitted trade of food and medicine with Cuba. The rice farmers and millers were not sure if a letter of credit could serve as a payment in advance.

“Cuba used to be one of our greatest export markets, but since the embargo we lost that market. We didn’t get it back until Congress approved food and medicine sales and now Senator Vitter’s clarification makes for a less bureaucratic transaction,” said Bobby Hanks of the Louisiana Rice Mill, LLC.

Treasury issued a letter on April 6 saying a letter of credit is considered payment in advance in the eyes of the U.S. Treasury. The clarification to allow a letter of credit to serve as a payment in advance helps Louisiana rice farmers and millers sell their rice to Cuba under the limited food trade that is allowed.