Cuba Gets Tough With Tourists Bringing Goods To Island

Hey, You With The 25 Smartphones! Cuba Gets Tough With Tourists Bringing
Goods To Island
Published September 01, 2014Fox News Latino

HAVANA (AP) — Lugging duffel bags crammed with soap, socks, toys and
toiletries, travelers arriving in Cuba on Monday carried loads of
hard-to-obtain consumer goods but complained that new government
restrictions on their imports would leave their families wanting.

Passengers on the day's first flights from Miami grumbled about higher
duty fees and limits on the amount of products they could bring to Cuban
relatives frustrated with the high prices and scarcity of quality
products. At Havana's international airport, there appeared to be fewer
bicycles, 40-inch televisions or other bulky household items that
normally made the baggage carousels look like the inventory line of a
Target or Wal-Mart.

"There are barely any bags on the floor inside," said Arnaldo Roa, a
45-year-old Miami handyman on a trip to see relatives. While he had a
bag stuffed with toys and clothes for his daughter, he said he wasn't
able to bring his usual extra bags filled with gifts for other family
members.

"I'm upset," he said. "Some relatives are going to get upset because
normally I bring them things."

The easing of travel restrictions by the U.S. and Cuban governments over
the last five years has allowed travelers to bring in nearly $2 billion
of products a year.

The Cuban government enacted new rules Monday sharply limiting the
amount of goods people can bring and raising customs duties of many
items that are still allowed.

The government says the measure is meant to curb abuses that have turned
air travel in particular into a way for professional "mules" to
illegally import supplies for both black-market businesses and legal
private enterprises that are supposed to buy supplies from the state.

Ana Maria Perez, who works in a South Florida factory making airplane
seats, said she had been forced to pay $95 in customs duties, far more
than usual.

"We've got to pay a lot now," she said. "I don't understand it at all,
but I paid."

The rules that went into effect Monday run 41 pages and give a sense of
the quantity and diversity of the commercial goods arriving in checked
bags. Travelers are now allowed to bring in 22 pounds (10 kilos) of
detergent instead of 44; one set of hand tools instead of two; and 24
bras instead of 48. Four car tires are still permitted, as are two
pieces of baby furniture and two flat-screen televisions.

The value of a passenger's imported items can total no more than $1,000,
with the estimate based on a long list of assigned prices for certain
goods ($250 for a video-game console, for example.) Those values rose
sharply under the new rules, making it far easier to reach the $1,000 limit.

The new rules similarly increased the duties paid on goods shipped from
abroad, another major source of foreign merchandise for the island.

Authorities took to the airwaves and pages of state media in recent days
to assure Cubans that the vast majority of travelers won't be affected.
The change is intended "to keep certain people from using current rules
on non-commercial imports to bring into the country high volumes of
goods that are destined for commercial sale and profit," Idalmis Rosales
Milanes, deputy chief of Cuban customs, told government newspaper Granma
in Friday editions.

The government has justified the new rules with examples of prolific
mules including one passenger it said brought in 41 computer monitors
and 66 flat-screen TVs in a year.

Between $1.7 billion and $1.9 billion worth of goods were flown to Cuba
in traveler's baggage last year, with the average flyer bringing in
goods worth $3,551, according to a 2013 survey of 1,154 Cuban and
Cuban-American travelers conducted by the Havana Consulting Group, a
Florida-based private consultancy that studies the Cuban economy.

"It's sustenance, support that greatly aids in the survival of the Cuban
family," Consulting Group President Emilio Morales said. "Along with
cash remittances, it's the most significant source of earnings for the
Cuban population, not the salaries the government pays."

While his study did not look at the final destination of travelers'
goods, Morales said he estimated based on his knowledge of the
phenomenon that about 60 percent went to families and 40 percent to
black-market retailers.

With foreign reserves dropping sharply over the last two years as Cuba
tries to pay off sovereign debt and make itself a more attractive
destination for foreign investment, Morales said, the government is
desperate to reduce the flow of goods and push Cubans' relatives abroad
to send help in the form of cash remittances, which are subjected to
hefty government fees. Limiting informal imports also would presumably
help boost business in state-controlled stores.

The rule change already has had an effect in Miami, where many stores
are dedicated to selling goods to island-bound Cubans and
Cuban-Americans. Many employees reported sharp drop-offs in sales in
recent days as people braced for the change.

Source: Hey, You With The 25 Smartphones! Cuba Gets Tough With Tourists
Bringing Goods To Island | Fox News Latino -
http://latino.foxnews.com/latino/news/2014/09/01/hey-with-smartphones-cuba-gets-tough-with-tourists-bringing-goods-to-island/