Trade Restrictions In Cuba

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Trade Restrictions and its impact Cuba has traditionally had many trade restrictions and trade barriers. There is some restructuring in state sector since 2010, but there are heavy regulations and tight state controls in the private sector. There are no open-market policies to improve growth in trade and investment, and the lack of competition continues to throttle dynamic economic expansion. Only government enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. Most of the means of production are owned by the government. Its planned economy discourages foreign trade and investment. The financial sector remains heavily controlled, and access to credit for entrepreneurial activity is seriously obstructed by the shallowness of the financial market. The government maintains strict exchange and capital controls. Import Regulations - Cuba Cuba’s tariff system is defined in Law 124. This law sets out the operation and functions of the customs system. These laws and their regulations define requirements for import permits, establish import tariffs, and set out procedures for customs clearance. Import Permits Only government entities and joint ventures holding permits for the specific goods in question can import goods into Cuba. Agents and intermediaries can handle goods on consignment for licensed importers, but they cannot import on their own account and they cannot conduct distribution operations. Joint ventures with foreign participation require Cuban partners. They can obtain the import permits through their Cuban partners and later include the rights to import in the joint venture agreement contract. Import Duties Cuban importer generally pays the import duties. T... ... middle of paper ... ...ts. They cannot distribute, import, sell or resell goods. Only their Cuban partners can do that. Non-Tariff Barriers - Foreign Exchange Controls Cuba does not have any foreign exchange controls. However, changes are often made to the regulation. In 2004, the Cuban Government adjusted the laws relating to foreign exchange controls. Shops and other businesses are no longer allowed to accept US dollars. Also foreigners holding US dollars are required to pay a 10 percent fee for convertible pesos. Previously the convertible pesos were used interchangeably with US dollars. However, this is no longer the case. References http://www.heritage.org/index/country/cuba http://www.heritage.org/index/country/cuba http://www.tradecommissioner.gc.ca/eng/document.jsp?did=41224&cid=613&oid=121 http://www.carib-export.com/login/wp-content/uploads/2009/08/doing_business_with_cuba.pdf

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