Electric car parked on a street in Havana. Photo: Irene Pérez/ Cubadebate.
Recently, Cuba announced new provisions regarding the marketing of vehicles, aiming to make the importation and replacement of these modes of transport more flexible. Cubadebate shares a series of questions and answers provided by the Minister of Transport, Eduardo Rodríguez Dávila, concerning the approved measures.
Which vehicles can be imported directly by individuals? What does “as a passenger or shipment” mean?
Any natural person residing in the country may import directly as a passenger or by shipment, any of the following vehicles:
- Mopeds and electric, hybrid, or combustion motorcycles (up to 250cc).
- Light trailers and semi-trailers with a load capacity of up to 750 kg.
The term “passenger” refers to a situation where the individual travels and boards the vehicle as part of their unaccompanied luggage (the same individual who boards will receive it in Cuba), while “as a shipment” indicates that the individual boarding the vehicle at the origin differs from the one receiving it in Cuba. The procedures will apply to the recipient.
This import process is conducted through the General Customs of the Republic and authorized freight forwarding companies (Aerovaradero, Transcargo, Palco, Correos de Cuba, Cubapack, and Cubanacan Express), through which the necessary documents for vehicle registration and license plate acquisition are obtained.
The logistics costs related to shipment, transfer, and delivery to the final destination will be the responsibility of the owner or recipient. At the border, tariffs and customs services must be paid.
Electric mopeds and motorcycles will pay customs duties and taxes in national currency, as is currently customary.
Mopeds and motorcycles powered by combustion engines, electric tricycles, and light trailers and semi-trailers will have to pay customs duties and services in convertible currency.
What improvements will those waiting for their vehicles to be replaced receive?
Insurance replacement will be a priority for vehicles that, despite being in good technical condition, end up being utilized for tourist rentals.
Below is the information provided by the National Insurance Company (ESEN), part of the Caudal SA Group, regarding the pending replacement of vehicles:
“During 2023, 94 vehicles were delivered for replacement to insured natural persons. In the year 2024, 31 vehicles have been delivered, and 16 are in the process of being offered. There are 662 natural and legal persons pending delivery.”
With the reported policy update, the national insurance entity ESEN will have several alternatives for replacing vehicles for its insured individuals, which will ensure a shorter timeframe for fulfilling its commitments.
Due to the decision not to market vehicles available from tourist income in freely convertible currency, there will be greater availability for the National Insurance commitments, provided that the replacement of the income-generating vehicles occurs.
Additionally, the updated policy for vehicle commercialization enables the National Insurance Company to contract the importation of a certain level of additional motor vehicles using its own resources.
What alternatives will be available for those working abroad on state missions, including diplomats and collaborators, among others?
Along with the alternatives available to any natural person, individuals referred to in this question may directly import, once per family unit, a new or second-hand car (up to a maximum of 10 years from the date of manufacture), whether it’s electric, combustion, or hybrid, of an economic or medium type.
Beneficiaries of this measure must meet the following requirements: continuous work abroad for at least three years, a favorable performance evaluation, and responsibility for covering all expenses from their income, as stipulated.
Upon arrival in Cuba, the following import duties must be paid: 100 USD for electric cars, 200 USD for hybrid cars, and 300 USD for combustion engine vehicles, in addition to the corresponding customs service in convertible currency, which will have a fee of 8 USD.
They will also be able to offset the import duty against a car purchase in Cuba from one of the authorized dealers, receiving a 50% discount on taxes paid in convertible currencies.
The Ministry of Transport will issue and update technical recommendations regarding the brands and models that offer the best performance and service support in Cuba, and will evaluate alternatives for those employees working in countries where driving is done on the right side of the road, considering they will not be allowed to drive their vehicles in Cuba, thus necessitating the purchase in a third country.
The Future of Electric Vehicles in Cuba: New Policies and Opportunities
Electric car parked on a street in Havana. Photo: Irene Pérez/ Cubadebate.
Cuban Vehicle Market: Recent Developments
Recently, Cuba announced new provisions for the marketing of vehicles, aimed at making importation and replacement processes more flexible. In light of these changes, let’s delve into essential questions and answers provided by Transport Minister Eduardo Rodríguez Dávila regarding the measures taken.
Importing Vehicles: Who Qualifies?
Individuals residing in Cuba can import the following vehicles directly:
- Mopeds and electric, hybrid, or combustion motorcycles (up to 250cc).
- Light trailers and semi-trailers with a load capacity of up to 750 kg.
The term “passenger” refers to a person traveling and taking the vehicle as part of their unaccompanied luggage, while “as a shipment” means that the sender and the recipient are different.,
Import Procedures
Importing vehicles involves coordination through the General Customs of the Republic and authorized freight forwarding companies, including:
- Aerovaradero
- Transcargo
- Palco
- Correos de Cuba
- Cubapack
- Cubanacan Express
Logistics costs associated with shipment, transfer, and final delivery will be borne by the owner. It is also necessary to pay customs duties and tariffs upon reaching the border.
Customs Tariffs for Electric Vehicles
Different customs duties apply based on the type of vehicle:
| Type of Vehicle | Customs Duties |
|---|---|
| Electric mopeds and motorcycles | National currency |
| Combustion-powered mopeds and motorcycles | Convertible currency |
| Electric tricycles | Convertible currency |
Insurance Replacement Improvements
A major focus of the reform is the replacement of vehicles that are well maintained but are being used for tourist rentals. During 2023, 94 vehicles were delivered for replacement to insured individuals, with additional replacements scheduled for 2024. The National Insurance Company (ESEN) is now equipped with more diverse alternatives for timely vehicle replacements.
Cuba’s Expat Vehicle Import Options
Foreign workers on state missions, including diplomats and collaborators, are also afforded unique opportunities. Once per family unit, they can import either a new or second-hand car (from a maximum of 10 years old)—this includes electric, combustion, or hybrid vehicles.
Requirements for Expat Vehicle Importation
- Must have worked abroad continuously for at least three years.
- Must have a favorable performance evaluation.
- Must cover all expenses from personal income.
Import Duties for Expat Vehicles
Upon arrival, the following import duties apply:
| Vehicle Type | Import Duty (USD) |
|---|---|
| Electric cars | 100 |
| Hybrid cars | 200 |
| Combustion engine cars | 300 |
Additionally, they can choose to exchange the import duty for purchasing a car in Cuba from authorized dealers, enjoying a 50% discount on taxes in convertible currencies.
Future Recommendations and Enhancements
The Ministry of Transport plans to issue technical recommendations regarding car brands and models that provide optimal performance in Cuba. There will also be considerations for employees driving vehicles designed for countries with right-hand steering, as those vehicles cannot be used in Cuba.
Benefits of the Electric Vehicle Market in Cuba
- Environmental Impact: Reduced emissions leading to a cleaner environment.
- Cost Savings: Lower fuel and maintenance costs associated with electric vehicles.
- Enhanced Mobility: Improved public transport options as electric vehicles are incorporated into the fleet.
Practical Tips for Importing Electric Vehicles
- Research reputable dealers and freight forwarding companies.
- Understand the customs process to avoid unexpected fees.
- Consider your vehicle’s energy consumption and infrastructure availability in Cuba.
