In Praise of Hard Currency

In Praise of Hard Currency / Fernando Damaso
Fernando Damaso, Translator: Unstated

Faced with a failed economy that is unable to produce exportable goods
that might bring hard currency into the country, the Cuban government
has instead opted to export services at low cost. For this it makes use
of professionals – doctors, teachers, athletic coaches – who receive no
more than 30% of the total salary that countries contracting for their
services pay to the Cuban government, which retains the remaining70%.
It's a great deal.

Other easy sources of hard currency are the payments that Cuban
residents must make to Immigration in order to be able to travel
overseas. These cost at least 455 convertible pesos* (CUC) per person
and include fees for processing the passport, letter of invitation and
exit permit. This does not, however, cover the inflated ticket price,
the cost of the visa or the airport tax. To visit the country, Cubans
living overseas must pay even more. Another great deal.

On September 3 of this year new customs regulations took effect which
raise the tariff duties paid by travelers who are residents of Cuba,
whether they be Cuban nationals or foreigners.** They stipulate that
personal effects- whether for personal use or not – weighing less than
25 kilograms may be imported duty-free. Miscellaneous items weighing
over 5 kilograms will be assessed an import duty at a rate of 10
non-convertible pesos (CUP) per kilogram.In total, up to 30 kilograms
may be brought in duty-free.Items valued at less than 50.99 CUC are not
subject to customs duties. Additionally, up to 10 kilograms of medicine
may be imported duty-free, provided they are carried in separate luggage
and are in their original packaging.

A duty will be levied onmiscellaneous items for personal or family
useweighing up to 95 kilograms at the rate of 10 CUP per kilogram. The
maximum total allowable duty on imported goods is 1,000 CUP, which
includes the weight and value of miscellaneous items, the value of
domestic electronics and other imported goods. A duty of 100% will be
levied on items valued at 51.99 to 500.99 CUP, and a duty of 200% on
items valued at 501 to 1,000 CUP. However, anyone assessed the maximum
import tariff of 1,000 CUP must pay a total of 1,450 CUP to customs
authorities.

These duties are valid for one calendar year, starting January 1 and
ending December 31. Duties for the first importation in a calendar year
will be payable in non-convertible pesos (CUP). All subsequent
importations in a calendar year will be calculated in convertible pesos
(CUC) and paid in non-convertible pesos (CUP) at the current rate of
exchange. Similarly, Cuban residents living abroad and non-resident
foreigners will pay in hard-currency at rates of exchange equivalent to
convertible pesos.

Furthermore, levies on all shipments by air, sea, post or courier will
be assessed in convertible pesos (CUC) up to a value of 200 CUC, based
on a rate of 10 CUC per kilogram, with the first 30 CUC, or 3 kilograms,
being duty free. Another great deal.

According to an untrue but tired and often-repeated old slogan, "Under
socialism, the human being is what matters." These days it should be,
"Under Cuban Socialism, hard currency is what matters."Pure dialectic
materialism!

Translator's notes:

*The Cuban Convertible Peso (which is not, in fact, convertible into
foreign currencies), is roughly pegged one-to-one to the U.S. dollar,
but with fees added on one CUC is about $1.10 U.S.

**On September 5, 2012 the newspaper Granma published an article
outlining the new rules:http://www.granma.cu/ingles/cuba-i/5sept-Aduana.html

September 8 2012

http://translatingcuba.com/in-praise-of-hard-currency-fernando-damaso/