Castro Cashes-In From Obama's Policy

Saturday, September 1, 2012
Raul's only "reform" is finding how to cash-in from the Obama Administration's policy of increased travel and remittances.

From AP:

A sudden jump in import taxes on Monday threatens to make life tougher for some of Cuba’s new entrepreneurs and will mean higher prices for many of their customers by raising the cost of goods ranging from jungle-print blouses to jewelry.

The new measures steeply hike duties on cargo shipments, as well as on many bulk goods brought in by airline passengers, a crucial supply line for many of the small businesses the government has been trying to encourage as it cuts a bloated workforce in the socialist economy.

While the published official description seems aimed at items such as clothing, soap, food and other personal-use goods, it is so complex it leaves importers of other products unsure if they will be affected, now or in the future.

The new duties seem primarily targeted at so-called “mules,” who make frequent shopping trips to places such as Ecuador, Panama and Miami and bring back duffel bags bulging with food, underwear, shoes and electronics.

Starting Monday, Cubans who travel abroad more than once a year not only will pay higher tariffs, they’ll pay in hard currency rather than the more-easily obtainable national peso, which trades at 24 to the U.S. dollar and is used for most salaries.

Cubans will also begin paying dollar-based sums of $4.55 a pound ($10 per kilogram) above a certain weight to receive packages shipped by air and sea. That rate doubles if they bring in large shipments.