Among the new measures adopted by the Cuban government in the transportation sector is the authorization of vehicle sales between individuals and companies. Minister Eduardo Rodríguez Dávila highlighted during the Mesa Redonda on Tuesday that, until now, natural persons could transfer vehicle ownership among themselves, and legal entities could do the same, but legal entities couldn't transfer ownership to natural persons.

"With the new decisions, ownership transfer is now permitted between all natural and legal persons. However, for legal entities that are state-owned or have state participation, transferring ownership to a natural person requires approval from the Council of Ministers," he stated.

"For instance, a microenterprise can transfer ownership of a vehicle to a natural person, just like a religious organization, a foreign representative office in Cuba, or a branch," he elaborated.

The procedure remains the same as the current one for ownership transfer between natural persons: before a notary public, paying the transaction value and the corresponding tax, all through the bank. The prohibition remains for foreign diplomatic legal entities to buy or sell a vehicle to a natural person.

Rodríguez Dávila also mentioned that natural persons can acquire vehicles from authorized dealers in convertible currencies, like IMPEXPORT and CIMEX S.A.

Vehicle Pricing and Importation

"The vehicles for sale come from imports and those that conclude their rental period in tourism. The sale prices are formed by market correlation among natural persons, with a margin ranging from 350% to 500%, of which 30% is the commercial margin of the dealer, and the rest forms a special tax. Although this tax is collected in USD or MLC, it is credited in national currency at a rate of 1x24 into a fund managed by the Ministry of Transportation," he explained.

"For legal entities, the sale price is the acquisition or import cost, plus a commercial margin of up to 30%. Another tax is applied to the classes of motorcycles, cars, rural cars, and trucks, with rates of 100%, 150%, and 200%," he specified.

This controversial topic has sparked criticism against the regime for the high prices of imported cars in Cuba, making it an almost impossible dream for highly qualified professionals in the country.

The official also shared recent data on social media regarding vehicle import prices in Cuba, with infographics detailing how the government forms the prices of imported vehicles. He specified that they used a hypothetical value of 10,000 USD "to facilitate understanding." To determine the final price of the vehicles, the Supplier Price in Cuba, which is the initial value of the vehicle including freight and insurance, is considered. This base price in the infographic is 10,000 USD or euros.

To this base price, Import Costs are added, which include tariffs, customs services, handling, and transportation of the vehicle, representing approximately 6% of the supplier price, equivalent to 600 USD or euros. The next component is the Commercial Margin Rate, a margin applied by the selling entity in Cuba. This margin can reach up to 20% of the base price, resulting in an increase of 2,120 USD or euros, bringing the dealer's sale price to 12,720 USD or euros.

Additionally, a Special Tax by Segment or Range is applied, varying according to the type of vehicle. For high-end cars, this tax is 35%, equivalent to 4,452 USD or euros, while for other types of vehicles it can be 25% or 15%. The total amount payable by the buyer is determined by summing all these components. For example, a car, rural car, or truck has a final price of 15,900 USD or euros; a high-end car reaches 17,172 USD or euros; while vehicles of other classes like minibuses, motorcycles, or tricycles have prices ranging from 14,628 to 15,264 USD or euros.

Cubans were unable to buy new and used motorcycles, cars, trucks, and minibuses until 2013, when Raúl Castro allowed the purchase of second-hand and new vehicles, but only through the government and with a 100% tax. Until then, interested parties needed the personal approval of the vice president of the country, commonly known as the "letter."

In 2011, the regime authorized the sale of used cars between Cubans, but did not eliminate the requirement for the vice president's signature. Furthermore, new cars could not be purchased.

Understanding Cuba's New Vehicle Sales Policy

Below are some frequently asked questions and answers regarding the recent changes in vehicle sales policy in Cuba.

Can legal entities now sell vehicles to individuals in Cuba?

Yes, legal entities can now sell vehicles to individuals, but state-owned or state-participated entities need approval from the Council of Ministers for such transactions.

Where can individuals purchase vehicles in Cuba?

Individuals can buy vehicles from authorized dealers such as IMPEXPORT and CIMEX S.A. in convertible currencies.

What is the price formation for vehicles sold in Cuba?

The price includes the supplier price, import costs, a commercial margin of up to 30%, and a special tax by vehicle segment or range. This can add up to a final price significantly higher than the base price.

From www.cubaheadlines.com

The Minister of Transport, Eduardo Rodríguez Dávila, recently shared a series of updated figures on social media regarding the import prices of vehicles in Cuba. His post included two infographics detailing how the Cuban government sets the prices for imported cars. Rodríguez explained that they used a hypothetical value of $10,000 USD "to facilitate understanding." This contentious issue has sparked criticism against the regime due to the exorbitant prices of imported cars on the island, making it an unattainable dream for many highly qualified professionals in the country.

Price Formation for Imported Vehicles

The process of determining the final price of vehicles in Cuba involves several components. First, the Supplier Price delivered in Cuba is considered, which is the initial value of the vehicle, including freight and insurance. This base price, as shown in the infographic, is $10,000 USD or euros. To this base price, Import Costs are added, which include tariffs, customs services, handling, and transportation of the vehicle, representing approximately 6% of the supplier's price, equivalent to $600 USD or euros. The next component is the Commercial Margin Rate, which is a margin applied by the selling entity in Cuba. This margin can reach up to 20% of the base price, resulting in an increase of $2,120 USD or euros, bringing the selling price of the dealer to $12,720 USD or euros.

United States Export Data (January 2024 Through July 2024)

8701210080 Rd Trctr For Semi-trls,comp-ign, Used (no)- US$220,000
8702400000 Public-trnsprt Typ Pasgnr Veh, Only Electric Motor (no)- US$37,000
8703210100 Pass Mtr Veh, Only Spark Ign Eng, Not Ov 1,000 cc (no)- US$11,920
8703230145 Vehicles,nesoi,new,eng (1500 - 3000 cc) Le 4cyl (no)- US$75,668
8703230160 Pass Veh,ov 4 N/o 6 Cyl,1500-3000cc (no)- US$27,179
8703230190 Used Vehicles, Only Sk Ig (1500-3000 cc), Nesoi (no)- US$30,064,049
8703240160 Pass Veh,only Spk Ign >6 Cyl,>3000cc,new (no)- US$109,500
8703240190 Pass Mtr Veh, Only Spark Ign, Gt 3000 cc, Used (no)-US$4,523,028
8703330185 Pass Veh,diesel,only Comp-ig, > 2,500 cc, Use, Nes (no)- US$9,748
8703600090 Pass Mtr Veh, Sp Ign/elec, Over 3000 cc, Used (no)- US$61,671
8703800000 Passenger Motor Vehicles Only Electrc Motor, Nesoi (no)- US$127,190
8704210100 Trucks, Nesoi, Diesel Eng, Gvw 5 Metric Tons & Und (no)- US$64,075
8704224120 Truck, Diesel Eng, Gvw (5 - 9 Metric Tons) (no)- US$134,564
8704224160 Truck, Diesel Eng, Gvw (12 - 15 Metric Tons) (no)- US$63,000
8704230100 Truck, Diesel Eng, Gvw Gt 20 Metric Tons (no)- US$35,913
8704310120 Mot Veh For Trnsprt Of Goods, Gvw < 2.5 Met Tons (no)- US$123,028
8704310140 Mot Veh For Trnsprt Of Goods, (2.5-5) Metric Tons (no)- US$73,000
8704320110 Mot Veh For Trnsprt Of Goods, (5-9) Metric Tons (no)- US$43,100
8704410000 Trucks Gvw Lt=5 Tons W/ Diesel Eng And Elec Motor (no)- US$112,800
8704420080 Trucks Gvw (15-20)tons W/diesel Eng And Elec Motor (no)- US$35,200
8704430000 Trucks Gvw Gt 20 Tons W/ Diesel Eng And Elec Motor (no)- US$456,462
8704900100 Trucks/vehicles For The Transport Of Goods, Nesoi (no)- US$99,572
8705900000 Special Purpose Vehicles, Nesoi (no)- US$216,427
8707100020 Bodies For Passenger Autos Of Heading 8703 (no)- US$4,900
8708100010 Stampings Of Bumpers And Parts, Head 8701 To 8705 (no)- US$174,024
8708300050 Brakes And Servo-brakes,parts, Of 8701,8705 (no)- US$3,066
8708502150 Non-driving Axles And Parts For Tractors (no)-US$2,620
8708700050 Road Wheels And Prts For Veh Nesoi,of 8701,8705 (no)- US$85,110
8708998175 Parts And Acessories For Vhcls 8701 To 8705, Nesoi (no)- US$40,984
8709190030 Works Trucks, Exc Elec, Operator Ride,w/o Lift Eqp (no)- US$12,500
8711500000 Motorcycles, Cycl,excd 800 cc (no)- US$30,000
8714100090 Parts, Nesoi, Of Motorcycles (kg)- US$82,245
8716390090 Trailers And Semi-trailers, Nesoi, Tranprt Goods (no)- US$11,130
8716400000 Trailers And Semi-trailers, Nesoi (no)- US$10,000
8716900000 Parts,nesoi,of Trailers,semi-trailers;veh Nesoi (kg)- US$14,838