The package of 75 measures recently announced by Cuban Minister of Economy and Planning Alejandro Gil Fernández included the relaxation of imports by individuals on a non-commercial basis. Among other important provisions for the national economy, those related to the customs issue deserve a special analysis, as it is a matter that has multiple and long-standing dissatisfactions among those who travel to Cuba, residents or not.
The modifications that have been reported are especially related to the sending of packages and imports by passengers, the latter understood as that which is carried out for individual or family use, but not to market or profit from them.
The group of measures did not include, as could be expected, the thorny issue of importing goods on a commercial basis. It is no secret that there are voices that advocate the elimination of the Cuban government’s monopoly on foreign trade. However, the minister himself made it clear that although they have received proposals to stimulate imports on a commercial basis, “it is not convenient at the moment.”
On this occasion, therefore, the proposed changes focus on specific elements of the customs legislation in Cuba, characterized by immobility against which the systematic questioning of the relevance of its application in a context of economic crisis and deep deficiencies has been unable to do anything.
So far, the points that will be modified are reduced to five. In the public information offered, its practical application was not defined, so its real scope is still unknown. Still missing for its application is the coming into force of the resolutions that protect its implementation in legal terms and, further, that its compliance be as favorable to travelers and customers as required.
However, the outline of the proposals allows a first approach to content and projection.
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About changes to non-commercial imports
The first planned modification responds to one of the most controversial aspects of customs clearance of goods. Finally, the possibility of “defining the non-commercial nature of miscellaneous imports by their value and weight and by the diversity of the articles to be imported, and not by physical quantities” has been considered.
Until today, all travelers entering the island must adhere to a fixed limit of quantities for the import of each item considered “miscellaneous” — textiles, footwear, jewelry, perfumery, and accessories.
Resolution 206 of 2014 issued by the Head of the General Customs of the Republic (AGR) is the one that provides the figures allowed in each one of hundreds of merchandise, and whose compliance defines whether the merchandise is confiscated or not.
However, it is a legislation structured in 17 chapters where the breakdown of only one can contain more than 90 merchandise items; as is the case, for example, with the section for electrical appliances, for information technology and communications.
For passengers, it is simply indecipherable. Adding to the language of legal terms are endless lists of amounts — difficult to understand and impossible to memorize. The result: at the time of customs clearance at the airport, tens of kilograms of merchandise must be quantified, separating them by pieces of the same type to determine if they conform to the permitted numbers, and if not, the passenger’s excess items will be confiscated.
In this sense, although it is unknown how to proceed specifically for the valuation of the miscellany based on the proposed changes, the fact of not defining the import by physical quantities will imply a modification of the regulations and will eliminate the cumbersome counting procedure that wastes the effort of customs officials and the time and patience of passengers inside the air terminal.
The second proposed change considers the claim of “increasing the import quantity allowed for some items. For example cell phones, computers, tablets and tires,” all in high demand and with a sustained absence in the domestic market. It is unknown if only the quantities of the mentioned goods will be increased, or can it be expected that other requested and scarce goods will be considered.
The general perception about the quantities of items defined by law for import is that they are arbitrary figures, not supported by a real calculation of needs.
If it is considered that each person who enters the island brings with them merchandise to solve their own problems, their family, neighbors, friends, acquaintances and even someone who is almost a stranger, it can be understood that the rigid regulated figures do not enjoy any acceptance.
The quantities of the items that will now be expanded are an example. As regulated, only 3 cell phones can be imported — 1 free of charge, as a personal item and 2 that must be paid for; 3 computers — 1 laptop at no cost, as a personal item and 2 that must be paid for and can be desktops, laptops, mini-laptops, and tablets.
Regarding tires, 4 are allowed for cars, 3 for motorcycles and 2 for bicycles, all subject to payment. However, in the case of cars, as established in traffic regulations, they need 5 tires (4 in use plus 1 spare) that are mandatory for circulation.
About changes to parcel shipments
There are as many dissatisfactions with parcel shipments to Cuba as the packages that arrive. In this way, the provisions announced on this matter consider for the first time some of the systematic claims of the service’s customers.
Closely related to each other are the decisions that provide for “increasing the import limit through shipments from 10 kg to 20 kg” and “reducing the value of the imported kilogram from 20 USD to 10 USD and increasing the exemption from payment from 1.5 kg to 3kg.”
It is necessary to clarify that the import limit of the shipment in terms of value remains at 200 USD. Actually, what has been proposed is to halve the import value for each kilogram of miscellaneous items (from 20 USD to 10 USD), which doubles the number of miscellaneous items that can be imported through this means. Now each shipment can contain 20 Kg at the cost of 10 USD each for a total value of 200 USD.
In the case of amounts exempt from payment in each shipment, the adjustment follows the same logic. The free value of payment is 30 USD, and it remains so. But, since the value of only 10 USD will be applied to each kilogram of miscellaneous items, then, up to 3 Kg of miscellaneous items (3 x 10=30) may be imported free of charge, which is double what is in force up to now (1.5Kg).
For the first time, the rate of 1Kg = 10 USD in value will be applied to shipments, which is the one that has been used for years in merchandise dispatches at air terminals.
Finally, to ease the customer’s pocket a little, it has been decided to “reduce 70% of the customs tax payment (currently it is 100%, it is reduced to 30%).”
The modification translates into savings. Currently, the maximum value to pay for customs tax when receiving a shipment is 4,130 CUP. Those who receive packages complain, and not without reason, about the high rates. In this sense, the 30% reduction constitutes a notable decrease in costs, since it sets the maximum amount to be paid for taxes at 1,224 CUP.
About these changes’ antecedents
Exactly one year ago, the first customs modifications in favor of passengers and parcel clients in Cuba were announced by Prime Minister Manuel Marrero Cruz himself. Just a few days after the protests of July 11, 2021, they were included in a package of measures aimed at improving the difficult living conditions that led to the popular demonstrations.
Finally, the temporary exemption was declared for the importation of food, toiletries and medicines, without limit of import value and free of payment of tariffs as long as the passenger brought it in his accompanying luggage. It was arranged for an initial period of six months, but it has been extended on two subsequent dates and remains in force until December 2022.
These provisions came after more than a year of deep economic and health crisis. Neither the worsening of the scarcity of all vital supplies nor the accumulation of social unrest and proposals to change the rigid limits established were enough.
Only the unprecedented event of the popular protests unleashed in response to the very precarious state of things became reason enough to assume the need to modify the law in favor of travelers and their families.
The most recent measures travel a path fertilized by these precedents. They are welcome, yes. But they are not the only ones that are needed. There are still many dissatisfactions to settle in relation to customs procedures and regulations in Cuba.
However, amid persistent hardships and tensions, all the flexibility that can be reversed into economic and social relief is vital and appreciated. Let’s just hope that the pending changes don’t take too long.
Author
Lucía Rojas
