Eduardo Rodríguez Dávila, Cuba's Minister of Transportation, issued a cautionary note on Monday regarding the nation's recent vehicle import policies. While acknowledging their significance in enhancing the transportation system, he emphasized that these measures should not be viewed as a "magic solution."
“These initiatives are steps toward addressing transportation issues but they are not a magic wand. Implementing this policy will not instantly solve the shortages and deficiencies that have accumulated over several years,” he stated on the state-run program, *Mesa Redonda*.
Rodríguez Dávila elaborated that the new regulations aim to improve the mobility of people and goods, support a gradual shift towards a more sustainable energy matrix, and generate needed funds for public transport and infrastructure development. “This is not an overnight fix. We are talking about a process that will take time,” he reiterated.
The measures were initially announced by Prime Minister Manuel Marrero Cruz during the third Ordinary Session of the Tenth Legislature of the Cuban Parliament in July. The updated regulation was recently published in the *Gaceta Oficial*, outlining changes to import requirements for vehicles, mopeds, and hybrid or combustion bicycles.
Key changes include allowing Cuban nationals to import various types of motorcycles. Additionally, government-affiliated cooperatives, diplomats, businesspeople, and Cuban collaborators can import economical vehicles, whether combustion, hybrid, or electric, from the countries where they are stationed. Ship and vessel crews can also import vehicles with authorization from the entity TRANSIMPORT, which will oversee the shipping of these vehicles to Cuba, a nation enduring its most severe crisis in 65 years.
Significant Measures Announced in the Gaceta Oficial
Property Transfer Flexibility: The transfer of vehicles between individuals and legal entities, including religious organizations and private companies, is now allowed. However, sales from state entities to individuals will require Council of Ministers approval.
New Tariff Rates: Electric and low-consumption vehicles will benefit from preferential tariffs of 10%, while internal combustion vehicles will face rates as high as 30% based on their category and segment.
Reduced Commercial Margins: State import and commercial entities will have their commercial margins capped at 20%, aimed at lowering final prices.
Incentives for Electric Vehicles: The importation of electric cars and their charging infrastructure is prioritized, with reduced taxes and logistical support for acquisition.
Restricted Access by Frequency: Each individual may import only one vehicle every five years, with additional restrictions for luxury vehicles.
Sale of Used Cars from Tourism: Vehicles that have completed their cycle in the tourism rental sector will be available in national currency, priced according to the secondary market.
Additional Details on the Regulation
Progressive Special Taxes: Luxury vehicles will face taxes up to 200%, and utilitarian cars up to 100%, depending on their range.
Prioritized Models: The regulation includes a preliminary list of approved brands and models, favoring low-consumption electric cars.
Funds for Public Transport Development: Revenue from these taxes will be allocated to the maintenance and enhancement of public transport infrastructure.
Understanding Cuba's New Vehicle Import Policies
What are the main goals of Cuba's new vehicle import policies?
The policies aim to enhance mobility, support a transition to sustainable energy, and generate funds for public transport and infrastructure development.
Who can import vehicles under the new regulations?
Cuban nationals can import motorcycles, while cooperatives, diplomats, businesspeople, and collaborators can import economical vehicles. Ship crews can also import vehicles with TRANSIMPORT's approval.
What are the tariff rates for imported vehicles?
Electric and low-consumption vehicles have a 10% tariff, whereas internal combustion vehicles face rates up to 30% depending on their category.
How frequently can individuals import vehicles?
Individuals are allowed to import one vehicle every five years, with additional limitations for luxury vehicles.
Where will the funds generated from these policies be used?
Funds from the taxes will be directed towards the maintenance and improvement of public transport infrastructure.