Manuel Marrero Cruz, Cuba's Prime Minister, criticized individuals allegedly exploiting duty-free exemptions to sell products at "excessive and abusive" prices. Meanwhile, he reiterated the government's promise to better stock their stores.
As part of his lengthy presentation during the third ordinary session of the National Assembly's tenth legislature, Marrero Cruz addressed the issue of duty-free import exemptions for medicines, foods, and hygiene products by individuals.
"The extension has been prolonged until September," he announced before dropping a bombshell: "We have thoroughly analyzed that many distortions have arisen from this measure, which was approved to benefit the people."
He elaborated, "This has been exploited by individuals who bring in massive quantities of products to sell in a black market at excessive and abusive prices."
Consequently, he stated that they are working to "equip our store system with product alternatives to take measures after September," a statement that casts doubt on the continuity of the measure.
In June, the government officially extended the measure through Resolution 211/2024 in the Official Gazette of the Republic of Cuba No. 57, Ordinary Edition.
The document includes several resolutions focusing on price and tariff regulation for state entities, extending benefits and exemptions for importing essential products, and temporarily modifying customs regulations to facilitate the entry of necessary goods for the population.
"It authorizes, exceptionally and temporarily until September 30, 2024, the non-commercial importation without value limits and exempt from customs duties of foods, hygiene products, medicines, and medical supplies through passenger-accompanied luggage," reads a part of the text.
Additionally, the non-commercial importation of these products is authorized up to five hundred dollars ($500 USD) or fifty kilograms (50 kg) as unaccompanied luggage. Other regulations include increasing the customs value limit for non-commercial imports conducted by individuals through shipments.
Meanwhile, the country remains in crisis, exemplified by this measure, which has been extended since its approval following the July 11, 2021 protests.
Government Defends High Prices in State Stores
Regarding store supplies, Marrero defended the high prices in stores operating with Freely Convertible Currency (MLC) compared to the cap established for Micro, Small, and Medium Enterprises (MSMEs), arguing that the state buys in expensive markets with fewer benefits.
He acknowledged that state store prices in MLC are higher than some capped products but argued that "it is unfair to make that comparative analysis."
He explained that state stores "do not operate with the illegal currency market; they work at 1x120, so the analysis is different. They have to buy in distant markets at higher prices because we have had difficulties paying suppliers, incurring very high freight costs. Therefore, it is not fair to make that comparison," he justified.
Understanding Cuba's Duty-Free Import Exemptions
Here are some frequently asked questions about the duty-free import exemptions in Cuba and the government's position.
What are the current duty-free import exemptions in Cuba?
The current exemptions allow for the non-commercial importation of foods, hygiene products, medicines, and medical supplies without value limits and exempt from customs duties until September 30, 2024.
Why did the Cuban government introduce these exemptions?
The exemptions were introduced to benefit the population by facilitating the importation of essential goods, especially in light of the country's ongoing crisis.
What are the criticisms of these exemptions?
Critics argue that the exemptions have been exploited by individuals who import large quantities of goods to sell at high prices in the black market, defeating the measure's original intent to assist the population.