Identifier
Created
Classification
Origin
07HAVANA597
2007-06-21 13:38:00
CONFIDENTIAL
US Interests Section Havana
Cable title:  

CUBA: MORE NEW CUSTOMS REGULATIONS

Tags:  ECON PGOV PINR PREL ETRD CU 
pdf how-to read a cable
VZCZCXRO2224
RR RUEHAG RUEHROV
DE RUEHUB #0597/01 1721338
ZNY CCCCC ZZH
R 211338Z JUN 07
FM USINT HAVANA
TO RUEHC/SECSTATE WASHDC 1868
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCOWCV/CCGDSEVEN MIAMI FL
RUEAIIA/CIA WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCOGCA/COMNAVBASE GUANTANAMO BAY CU
RHMFISS/HQ USSOUTHCOM MIAMI FL
RHMFISS/JOINT STAFF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000597 

SIPDIS

SIPDIS

DEPT FOR WHA/CCA

E.O. 12958: DECL: 06/21/2017
TAGS: ECON PGOV PINR PREL ETRD CU
SUBJECT: CUBA: MORE NEW CUSTOMS REGULATIONS

REF: HAVANA 516

HAVANA 00000597 001.2 OF 002


Classified By: COM: Michael E. Parmly: For reasons 1.4 (b/d)

C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000597

SIPDIS

SIPDIS

DEPT FOR WHA/CCA

E.O. 12958: DECL: 06/21/2017
TAGS: ECON PGOV PINR PREL ETRD CU
SUBJECT: CUBA: MORE NEW CUSTOMS REGULATIONS

REF: HAVANA 516

HAVANA 00000597 001.2 OF 002


Classified By: COM: Michael E. Parmly: For reasons 1.4 (b/d)


1. (C) SUMMARY: The GOC has restructured customs regulations
for non-commercial imports and exports. Several regulations
that were originally independently introduced for different
reasons at different times and by different ministries have
been modified in what appears to be an attempt to harmonize
the relevant tariff schedule. Although the measures have the
look and feel of liberalizing change, they are better
understood as a way to soak resources from exiles who were
finding ways to bring in the listed items in any case. End
Summary.


2. (U) Reftel explained many of the new regulation changes;
although they became effective June 1st, they are only now
being fully published and explained by the GOC. The new
customs resolutions numbers 4 through 11 of 2007, combine
with new resolutions from other GOC agencies: Ministry of
Foreign Relations Resolution 83; Ministry of Trade Resolution
117; Ministry for Foreign Investment and Economic Cooperation
Resolution 56; Ministry of Finances and Prices Resolutions
99, 113-115, and 120. Some of the modifications follow:

-- Articles which were prohibited before but can now be
imported for non-commercial use:

o Video players and recorders (VHS, DVD, Playstation 2, etc.)
o Trailers
o Motors, gear boxes, chassis for light motor vehicles
o Bicycles, skateboards and electric scooters
o Electric generators

-- The limit in value of imported articles, which used to be
USD 250, is now USD 1,000.

-- The previous tariff rate, which on items valued at up to
USD 250 was 100% of the value, is now a progressive tariff on
items valued at up to USD 1,000 that can reach up to 200% of
the value.

-- All permanent residents in Cuba pay customs duties in
Cuban pesos, regardless of the reason for the trip or of
their nationality. Previously, in some cases, they had to

pay in Cuban convertible pesos (CUC; 1 CUC = 1.08 USD).

-- The previous prohibition on importing articles -- other
than personal items inside luggage -- more than once within a
one-year period was eliminated. Passengers can now import
articles up to a maximum value of USD 1,000 every time they
enter the country.

-- Travelers must now present a customs declaration when
non-personal articles are imported or when the quantity
exceeds USD 5,000.

-- The limit on the number of cigars to export without a
receipt of purchase required was increased from 26 to 50.

-- Postal and parcel deliveries valued up to USD 1,000 are
now exempted from having to present a consular invoice.

-- Non-commercial mail deliveries, with a total value of up
to 30 Cuban pesos (USD 1.25),addressed to individuals are
exempted from customs duties. A tariff schedule was
established for deliveries of a higher value.

-- Treatment of personal computers, previously ruled under a
now-repealed regulation, will now fall in line with the new
import limit of USD 1,000.

-- New time limits were established for the importation of
goods by Cuban ship and aircraft crews and merchant marines,
according to the kind of product.

Import/Export Restrictions
--------------


3. (U) The GOC published several official lists of specific

HAVANA 00000597 002.2 OF 002


items which are still prohibited from importation. One dealt
with electrical appliances, from microwaves to water heaters.
The other addressed telecommunications equipment, from
wireless fax to global positioning systems. A similar list
was published on items which passengers are still restricted
from taking into or out of the country.

--------------
COMMENT:
--------------


4. (C) The new customs regulations have the look and feel of
liberalizing measures in the sense that: They reduce, and in
some cases eliminate, previous prohibitions on imported
products; reduce tariff rates on many items; increase the
maximum allowable value of many imported -- for
non-commercial use -- goods; and increase the frequency with
which many of these goods can be imported. The new
regulations eliminate measures that clearly irritated many
travelers, and were unnecessarily burdensome. In point of
fact, however, the measures also soak exile Cuban Americans
with high tariff rates on items they were going to bring into
Cuba in any case. One needn't be a cynic to recognize that
fact which for years has motivated GOC economic policy.


5. (C) Permitting the importation of computers indicates that
the GOC now considers personal computers non-threatening
if/when used by the general population, as opposed to only
nomenklatura. This can be read as the GOC acknowledging that
the lack of computer skills among Cubans makes a mockery of
the GOC's claims about the achievements of its educational
system. More importantly, the regime tightly limits and
controls access to the internet, making stand-alone computers
much less of a threat to its information blockade.


6. (C) Finally, the new regulations attempt to reduce and
homogenize the various customs categories for travelers (see
Reftel). Expediting entry/exit of visitors could contribute
to reversing the recent decline in tourist numbers.
Permanent residents of Cuba will pay the tariffs in Cuban
national pesos, while all non-residents -- including Cuban
Americans visiting family members -- will pay in hard
currency (CUCs). The new tariff schedule benefits residents
(who rarely get permission to travel in any case),while it
hurts non-residents, who now face paying a drastically higher
maximum amount. New changes notwithstanding, the customs
process, the tariff schedule, and its application remain
complicated, unpredictable, and selectively enforced.
PARMLY