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The ongoing Cuban economic reforms in the “private” sector (Self-employed, Small business and the Cooperatives) “bonded” with the easing of US sanctions against Cuba has generated an overwhelming enthusiasm within the Island and especially in the Cuban exile community. Entrepreneurs are looking at wholesale and retail market as a big investment opportunity.
We must not fail to admit the new approach of both governments regarding to a process which has been around for over 50 years, is not just a historic moment for both countries but also it’s a good new time for the Cuban people are coming soon. However, the path is not completely paved yet, there are some legal barriers, which we must consider.
The regulation of non-agricultural cooperatives establishes equal footing with the rest of the productive forms and services in the country, in terms of production, commercialization and services, according to the purposes for which it was founded. The cooperative as holder or owner of its products and services can make direct sales without intermediaries.
Trading activities in Cuba: How it works?
Wholesale and Retail business are run by agencies set up as corporations by the government, by foreign corporations (in partnership with the Government), or by an individual agent, who can obtain his license to operate by investing and partnering with local businesses. To obtain the license, importers and exporters will have to appoint an agent who will be able to obtain a license that will allow them to receive or send goods; however Agents and intermediaries can handle goods on consignment for licensed importers, but they can’t import directly and they can’t be a distributer either.
The non-state forms of management, which were approved for carrying out of foreign trade activities, should apply for grant of such powers and the authorized of export and import list of the products, according to the regulations issued for this purpose by the Ministry of Foreign Trade.
Import & Export from the United States to Cuba
The recently changes on the Export Administration Regulations (EAR) related to exports and reexports to promote more effectively positive change in Cuba’s private sector by supporting private economic activity. Items include building materials for use by the private sector to construct or renovate privately-owned buildings including privately-owned residences, businesses, places of worship and buildings for private sector social or recreational use; goods for use by private sector entrepreneurs such as auto mechanics, barbers and hairstylists and restaurateurs; and tools and equipment for private sector agricultural activity. It is intended to facilitate Cuban citizens’ lower-priced access to certain goods to improve their living standards and gain greater economic independence from the state. It also enables the export and reexport to Cuba of items to further support civil society in Cuba. (OFAC)
I wonder if, when the Obama’s administration issued the resolution described above, were they unaware of the Cuban export and import rules, has the decision been made deliberately?