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Cuban Officials on Foreign Missions Need "Positive Performance Review" for Car Imports

Saturday, August 17, 2024 by Alex Smith

Cuban Officials on Foreign Missions Need "Positive Performance Review" for Car Imports
Reference image - Image © planetautotransport.com

Decades of public transport crises in Cuba, exacerbated in recent years, have led the government under Miguel Díaz-Canel to lift historic restrictions imposed by the Cuban regime on car imports.

After the U.S. State Department authorized car imports for micro, small, and medium-sized enterprises (Mipymes), the Cuban regime updated its policy on vehicle sales in Cuba, easing restrictions for "those working abroad on state missions, such as diplomats and collaborators."

These Cuban officials "can import directly, and only once per family unit, a new or used car (up to a maximum of 10 years from the date of manufacture), whether electric, combustion, or hybrid, of economic or medium type," explained the Cuban Minister of Transport, Eduardo Rodríguez Dávila, in a social media post detailing the new policy’s requirements.

"Among the requirements beneficiaries must meet are: working abroad continuously for at least three years, having a positive performance review, and covering all expenses from their income," the minister explained.

Officials meeting these criteria must pay the following import duties upon their vehicles' arrival in Cuba: $100 for electric cars, $200 for hybrids, and $300 for combustion engine cars. Additionally, they must pay the customs service fee in convertible currency, valued at $8.

"They can also exchange the import right for the purchase of a car in Cuba from authorized dealers, with a 50% tax reduction in convertible currency," Rodríguez Dávila added.

Lastly, the Ministry of Transport (MITRANS) stated it would "consider alternatives for collaborators working in countries where driving is on the right side of the road, as these vehicles cannot be driven in Cuba, requiring the vehicle to be purchased from a third country."

In February 2023, the Cuban government announced new measures for the sale and import of motor vehicles, trailers, and semi-trailers amid the ongoing transportation and energy crisis in the country.

In this context, Rodríguez Dávila introduced Decree 83/2023 "On the Transfer of Motor Vehicle Ownership, their Commercialization, and Import," which authorizes wholesale sales in freely convertible currency (MLC) of new and used motor vehicles to all Cuban and foreign legal entities.

Despite the economic crisis plaguing Cuba, the streets of the island now feature new luxury vehicles imported by Mipymes from the United States. Among the most seen car brands in Cuban cities are Mercedes-Benz, GMC, Range Rover, BMW, Toyota, Kia, and the occasional Mini Cooper.

A report by the U.S.-Cuba Economic and Commercial Council (USCTEC) revealed in May that Cuban imports of new and used vehicles (including motorcycles and spare parts) exceeded $20 million over 15 months. However, from January to December 2023, Cuban entrepreneurs imported vehicles and parts worth nearly $10 million from the United States, with new cars accounting for just $357,442.

FAQs on Car Importation for Cuban Officials on Foreign Missions

In light of the updated policies on car imports for Cuban officials on state missions abroad, here are some frequently asked questions and answers related to this topic.

What are the requirements for Cuban officials to import a car?

Officials must work abroad continuously for at least three years, have a positive performance review, and cover all expenses from their income.

What types of cars can be imported?

Officials can import a new or used car (up to a maximum of 10 years from the date of manufacture), whether electric, combustion, or hybrid, of economic or medium type.

What are the import duties for these cars?

The import duties are $100 for electric cars, $200 for hybrids, and $300 for combustion engine cars. Additionally, there is a customs service fee of $8.

Can officials exchange the import right for a car purchase in Cuba?

Yes, they can exchange the import right for the purchase of a car from authorized dealers in Cuba, with a 50% tax reduction in convertible currency.

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