2024-01-26 16:15:53
Photo: Cuba News | CN360
Text: Hugo León
The Ministry of Finance and Prices of Cuba modified tariffs on the import of various finished products, inputs and raw materials, as published in the Official Gazette of the Republic this Thursday.
According to the Gazette, the joint Resolution of the Ministers of Finance and Prices and of Foreign Trade and Foreign Investment establishes a 30 percent increase in tariff rates on the import of tobacco, cigars, rum and other alcoholic beverages.
The increase will only be 15 percent “when these products come from nations with the most favored treatment, based on signed bilateral agreements,” explains the state media Cubadebate.
The increase includes raw or unprocessed tobacco of heading 2401; cigars of heading 2402; tobacco and tobacco substitutes of heading 2403 and products containing tobacco of heading 2404; denatured ethyl alcohol and spirits of any strength; spirits made from wine or grape pomace (2208.20), rum and other spirits from the distillation after fermentation of sugar cane products (all included in definition 2208.40), the Official Gazette states.
The measure is aimed primarily at micro, small and medium-sized companies (MSMEs) that currently function as importers and resellers of the aforementioned products. Such a decision is made to protect the national production of these items, which compete in the national market with the supply of MSMEs.
Import tariffs halving
Meanwhile, the Government will reduce tariff rates on the import of raw materials, inputs and intermediate goods by half.
The same Official Gazette reports that a bonus will be established in the payment of the Customs Tax on imports of raw materials, inputs and intermediate goods, destined for productive processes, with a special focus on food production and agricultural production.
This reduction will be 50 percent, and will be implemented “punctually” by the Ministry of Finance and Prices, upon request for the aforementioned benefit.
MSMEs, only resellers?
These measures announced by the Cuban ministries aim to promote and reinforce the competitiveness of products made in Cuba. They also encourage the function of MSMEs to be more focused on production than on the resale of products and inputs purchased abroad.
A frequent complaint from citizens and the Cuban authorities themselves is that MSMEs make use of their import powers to buy finished products abroad and simply resell them on the island, a management that does not create added value for the nation’s economy.
This function, however, has allowed us to reduce the effects of the shortage in several items in the nation, such as chicken, rice, oil, beers and other beverages, which are sold in large quantities by private businesses.
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