The Cuban Ministry of Finance and Prices declared on Thursday the implementation of Resolution 329, which exempts the import of fertilizers, feed, veterinary drugs, and pesticides from tariffs. This regulation was published in the Official Gazette of the Republic of Cuba, No. 112 (ordinary). Minister Vladimir Regueiro Ale stated that the purpose of this action is to boost domestic production, particularly food production, amid a severe economic crisis.
This measure is set to remain effective until December 31, 2025, and targets "economic entities importing goods for productive processes or to support those productions."
Duty-Free Imports Until December 2025
Resolution 329 removes customs duties on a wide range of essential supplies, aiming to reduce costs and encourage production. Key exempted products include:
- Agricultural and food items: Fertilizers, chemical fertilizers, seeds, grains (such as wheat, corn, sorghum, oats), flours, oils, and sugar derivatives.
- Veterinary and pharmaceutical products: Medicines, vitamins, antibiotics, and diagnostic reagents.
- Industrial and agricultural inputs: Paints, varnishes, pesticides, agricultural tools, steel and aluminum wire.
- Packaging and materials: Plastic bags, paper, cardboard, and wooden boxes.
This regulation applies to all economic actors, removing prior permits and expediting essential imports for agriculture and other sectors.
Cuban Government’s Take on the Initiative
The Cuban minister emphasized that this resolution is a "continuation" of previous policies, expanding the benefits of Resolution 7, which had earlier this year cut tariffs on inputs and raw materials by 50%. The aim is to lower costs for both state and private economic actors, improve final product prices, and enhance market supply.
Resolution 329 eliminates the need for import permits from the Ministry of Finance and Prices, presumably streamlining import processes and facilitating quicker access to supplies nationwide. Regueiro Ale mentioned the "fiscal sacrifice," meaning the revenue lost by the regime due to this "benefit for the private sector," amounting to approximately 25 million pesos thus far.
He pointed out that Cuban entrepreneurs have been the primary applicants for permits to import these products tax-free. The regulation includes customs controls to ensure that imported goods are used exclusively for their declared purposes. In a system characterized by bureaucracy and corruption, it remains to be seen whether these measures will truly expedite procedures or add new layers of state oversight.
While the removal of tariffs might alleviate costs for producers, Cuban agriculture faces deeper structural challenges. Fuel shortages, limited access to technology, and currency duality are significant obstacles that these measures do not address. The growing reliance on non-state economic actors, as noted by Regueiro Ale, implies an implicit acknowledgment of the state sector's inability to lead the country's productive recovery.
In July, the Cuban government announced the collection of tariffs and port services fees in foreign currency for the non-state sector. Prime Minister Manuel Marrero Cruz warned of a new economic package, which included allowing the use of cash in foreign currencies in tourism and other sectors, admitting failures in the banking process.
The regime continues to favor gradual adjustments, with measures that come and go, but without clear solutions for its structural problems.