International convention and customs procedures of Cuba

International Conventions

Member of the World Trade Organization (WTO)
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer

International Economic Cooperation

Cuba is a member of:

- WTO (the GATT agreement came into force on the 20/03/1948 in Havana) but it only became an active member again on the 20/04/1995
-The Latin American integration association (ALADI) and in this context, it has entered into some preferential bilateral agreements (with Chile and Argentina concerning wine).
Cuba has additionally signed an agreement for economic cooperation with Venezuela called the ALBA (Bolivarian Alternative for the Americas): Since 2000, Venezuela has thus supplied 100 000 barrels of petrol a day to Cuba through this agreement while Cuba has sent more than 20 000 doctors to Venezuela.

Cuba is also a member of:

- the World Health Organization (WHO)
- the Food and Agricultural Organization (FAO)
- UNESCO
- the United Nations Industrial Development Organization (UNIDO)
- the International Atomic Energy Agency (IAEA)
- the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL)
- the World Intellectual Property Organization (WIPO)

The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Non Tariff Barriers

Most goods can be imported into Cuba. Purchases made abroad are first assessed at the companies' level where commissions for contracts are established, then at the Ministry level. A certain number of products are subject to standards which may depend on authorisation. Companies wishing to trade with Cuba have to supply a certain number of documents (certificate of origin, invoice, etc.).
Cuba applies special tax schemes with regard to temporary imports.

Customs Duties and Taxes on Imports

The income duty rates are on the whole fairly reasonable. The average rate for customs tax was 21.3% in 2006 (average final consolidated duty according to the WTO), 37% for agricultural products and 9.4% for other products. With regard to merchandise coming from WTO member states or from countries with which bilateral agreements exist, Cuba applies the most favored nation clause (the MFN). The average of the duties applied in 2007 were at 10.8%.

Customs Classification: The nomenclature in force is the harmonized system of Brussels. Cuba has lowered its customs duties since 1996, the duties range from 0 to 30% (within the framework of the most favored nation clause) according to the nature of the products. However, some products are more taxed in order to protect local productions (such as fizzy drinks, beers and spirits). The average rate of custom duties, calculated on the CIF value of the merchandise is around 10%.
For more information on the customs duties in Cuba refer to the Cuban Custom Authority.
Import Procedures: There is no quota system in Cuba but the process of importation remains nevertheless strictly controlled by the State, which sets the budgets of main importing bodies, has but in place importation committees by product and official channels and which determines the priority sectors in the context of currency shortages. Since 2004, all the purchases of merchandise and services from abroad have to get the approval of the Central Bank Currency Approval Committee (CAD). In 2007 and 2008, there was some leniency brought to this rule.