Amid a severe transportation crisis and limited fuel availability, the Cuban government announced on Tuesday significant changes to the policy for the commercialization, importation, and ownership transfer of motor vehicles.
During the state-run program Mesa Redonda, Eduardo Rodríguez Dávila, the Minister of Transport, detailed the updates, which include a substantial reduction in the prices of imported vehicles. Rodríguez Dávila acknowledged that cars are currently sold at over 500% of their value, but this will change. For instance, a car that now costs between $55,000 and $60,000 will be priced at approximately $15,900 under the new measures.
"Today, vehicles for sale come from imports and those that end their use in tourism rentals. The sale prices are formed based on the market among individuals and have a margin ranging from 350% to 500%, of which 30% is the commercial margin of the seller and the rest forms a special tax. Although this tax is charged in USD or MLC, it is credited in national currency at a rate of 1x24 into a fund managed by the Ministry of Transport and used for various approved procedures," Rodríguez Dávila explained.
New Provisions for Vehicle Sales
According to the portal Cubadebate, with the new regulations, all vehicles sold in convertible currencies will primarily be imports. Vehicles ending their use in tourism will be redirected mainly for sale in national currency.
Under the new pricing structure, the total sale price of a vehicle will be the same for both individuals and legal entities. This brings another change: prices for cars sold to Mipymes (Micro, Small, and Medium Enterprises) and individuals will be equalized, eliminating the previous higher cost for individuals.
"The price is based on the import cost, including tariffs, plus the commercial margin of the seller, which is reduced from 30% to 20%, and a differentiated special tax ranging from 0% for an electric vehicle assembled in Cuba to 35% for a high-end vehicle," explained the minister.
"To provide a clear example, for those wanting to understand how much a vehicle will cost in convertible currencies in the future in Cuba, a vehicle with a supplier value of $10,000 will be sold to the buyer for around $15,900. Under the current pricing rules, that same vehicle would cost over $50,000," he added.
Individuals can purchase motor vehicles from authorized sellers in convertible currencies: IMPEXPORT and CIMEX S.A., with the mixed company MCV Comercial S.A. also joining the list.
Another new provision allows the importation of mopeds and electric motorcycles, as well as internal combustion or hybrid mopeds and motorcycles (with or without sidecars), new and used (up to 10 years old), up to 250cc, and electric or hybrid tricycles with a capacity of more than two seats or for cargo, as non-accompanied passenger luggage or shipments.
Rodríguez emphasized that vehicles imported into the country must be in optimal working condition, and the Ministry of Transport will issue recommendations to suppliers on which brands can be imported.
Hours before the program, Eduardo Rodríguez Dávila had already shared recent data on social media, including two infographics detailing how the government sets the prices for imported vehicles.
FAQs on New Vehicle Import Regulations in Cuba
To help our readers better understand the new vehicle import regulations in Cuba, we've compiled some frequently asked questions and their answers.
What is the new price for imported vehicles in Cuba?
Under the new measures, a car that currently costs between $55,000 and $60,000 will be priced at approximately $15,900.
What changes have been made to the sale of vehicles in convertible currencies?
All vehicles sold in convertible currencies will primarily be imports. Vehicles ending their use in tourism will be redirected mainly for sale in national currency.
Who can purchase motor vehicles under the new regulations?
Individuals can purchase motor vehicles from authorized sellers in convertible currencies, including IMPEXPORT, CIMEX S.A., and MCV Comercial S.A.
Are there any new provisions for importing motorcycles?
Yes, the new provisions allow for the importation of internal combustion or hybrid mopeds and motorcycles (with or without sidecars), new and used (up to 10 years old), up to 250cc, and electric or hybrid tricycles with a capacity of more than two seats or for cargo.