The new measures implemented by the Cuban Government for the sale of household appliances and automotive parts in dollars have as one of their most anticipated and controversial points the issue of imports.
One of the main concerns of self-employed workers for the development of their businesses is the inability to obtain equipment and raw materials abroad, a problem that has increased since the freezing of relations with the United States. The Trump Administration left its Embassy in Havana virtually inoperative and eliminated the issuance of visas for five years; so many entrepreneurs who purchased products brought from that country had to look for other options, many times more expensive.
Part of the enormous challenges ahead of the import issue were exposed in a Facebook post by Oniel Díaz, founder of the AUGE consultancy, just after the announcement of the new measures.
“If they manage to establish a structure that is managed under business principles, which knows how to scrutinize the market and identify the needs of individuals and self-employed, the limit of products to be imported exceeds the common examples of flat-screen TV or split. Today there is a private business segment that imports professional gastronomic equipment, technological components and countless items that could be offered here perfectly. Seen from the prism of the private sector, the opportunities that open up to have better and more varied resources to start a business are also positive, if these decisions are well managed, ”said Diaz in this social network.
As part of the new measures, the possibility for natural persons to import, for the moment, only certain products, through a group of 11 authorized companies, has been open: Consumimport, Transimport, Maquimport, Divep, Caribbean Store Chain , Citmatel, Empresa Importadora Palco, Corporación Cimex SA, Corporación Copextel, SA, Servicios Automotores SA (Sasa) and Empresa Comercial Caracol S.A. In this way, the import modalities available to Cubans were extended to three: direct, under customs warehouses, and by commission contracts for the sale of goods under consignment.
Upon hearing the news, one of the first concerns was the possible modification in customs regulations; but the authorities clarified that people traveling abroad could continue making the first annual import, always non-commercial, with payments in Cuban pesos (CUP); while the following imports would continue to be paid in convertible Cuban pesos (CUC).
What products can be imported after the new measures?
This has been one of the most common questions among Cuban entrepreneurs since the diversity of existing businesses on the Island affects the differences in interests. While it is vital for some self-employed to acquire refrigeration equipment, for others it might be important to buy printers. However, according to the Granma newspaper, importing companies will only bring products from the same family as those already offered in stores, “with the particularity that they will be very specific goods.”
The “product family” that is already on sale includes large format televisions, high-end and capacity refrigerators, automatic washing machines, splits, freezers, ovens, sandwich makers and microwaves; Meanwhile, the list of automotive items includes electric motorcycles, batteries, tires and accessories, motorcycle units and combustion engines.
According to Vivian Herrera, general director of Foreign Trade of the Ministry of Foreign Trade and Foreign Investment of Cuba (Mincex), the 11 importing companies “have identified markets, products, brands and suppliers, so there would be no difficulty in locating what the client wants ” If the product desired by the person were in consignment in the country “the procedure would be much simpler,” said Herrera.
To request an import by any of these 11 companies it will be necessary to submit a formal application, accompanied by the identity card, as well as the bank card in MLC with sufficient funds since the payment will be made in full advance.
The contract will include topics such as product description, quantity, and technical specifications, and the import value will include insurance, as well as tariffs and expenses related to transportation, inspection and handling.
One of the objectives of the package of measures is to oxygenate the Cuban economy with currencies that previously left the country to other markets (Panama, Russia, Guyana, Haiti) and that will now be used to boost the internal economy, mainly the industry.