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Yoani Sanchez

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New Regulations and Fees Threaten the Supply Chain of Cuba's Newly Minted Entrepreneurs

Posted: 07/05/2012 5:10 pm

The pepper is of carved wood and a seasoning container on the table says "Sedano's" in green letters. The private restaurant waits for the supplies that will arrive this Saturday in an enormous delivery transported by a "mula" -- a mule. If the delivery is even a day late, many of the items offered on the menu might not be available because a good part of "the pots, the condiments, the supplies for the tables, the cream, and even the coffee" comes from Florida, according to what the owner of the place tells me. Since they opened the doors they have been sustained thanks to a flood of food and supplies coming in through the Havana airport. "It's not that we don't like domestic products, it's that there isn't a steady supply of them of the necessary quality. So we have to go with what is safe," the Chef tells me, while opening a package of imported pasta.

The alarm extends among the small private businesses created in recent years. Of the 387,275 self-employed workers as of the end of May, it's difficult to estimate how many of them depend on what travelers carry in their luggage. But the number must be very high. The manicurist needs the nail polish and the polish remover sent by a relative in Miami and the man who organizes children's parties receives balloons and candy from his brother living in Orlando. Now, this semi-alternative commercial network is in danger from new customs regulations. The first of them went into effect on June 18, and reinstated the taxes on food imports. A common measure in many countries around the world, but one that puts a brake on small business development in a nation marked by shortages, the absence of wholesale markets, and the high price of food products. If we have seen a flourishing of snack bars on the central streets of the capital, and yellow pages filled with ads, it has been, to a great degree, thanks to the package services from the north.

The situation will become more difficult once the new regulations announced Monday go into effect; starting on September 3 a tariff will be levied on personal items whose value exceeds 50 Cuban pesos, about two dollars. A tough blow to the self-employed and also for all Cubans who have managed to improve their diets and wardrobes with these foreign products. If the measures are focused on raising as much cash as possible through customs and legally regulating what was working outside its control, the government will probably achieve its objective. But it will also have an immediate and extremely negative impact on the development of the private sector. It won't be unexpected if, within days, we hear from the mouths of the self-employed phrases such as "we can no longer do this work because the package of raw materials hasn't come yet," or "we used to prepare this dish when the mulas came more often." And only then will we perceive the real importance of this commerce -- incalculable and vital -- that travels inside suitcases.

Note to my readers: If the concept of "mule" is taken in the rest of the world as someone who transports drugs, in Cuba it refers to those who -- particularly from the United States -- carry packages that almost always contain such things as clothing, shoes, non-perishable food, small appliances, food mixes, medicines and household items. The mula is paid for this messenger service and often the cost of the ticket to the island is paid for as a part of the agreement with the agency that hires them.

Yoani's blog, Generation Y, can be read here in English translation.
Translating Cuba is a compilation blog with Yoani and other Cuban bloggers in English.
Yoani's new book in English, Havana Real, can be ordered here.

 
 
 

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03:15 PM on 07/12/2012
Association for the Study of the Cuban Economy
www.ascecuba.org
The Association for the Study of the Cuban Economy (abbreviated ASCE) will hold its twenty second annual meeting under the theme "Where is Cuba Going?" on 2-4 August 2012 at the Hilton Miami Downtown Hotel in Miami, Florida 33132. This event represents the broadest gathering of academics, policymakers and professionals working or researching the Cuban economy and society. Among the distinguished scholars and professionals expected to attend will be Professor Jorge I. Domínguez (Harvard University and ASCE) delivering the Betancourt Keynote Address. Scholars and civil society actors from Cuba, the United States, Canada, Mexico, Europe and South America will also give presentations on the Cuban economy. For the Preliminary Conference Program, registration and hotel bookings, visit www.ascecuba.org. Register by 15 July 2012 for reduced pre-registration and hotel rates.
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HUFFPOST SUPER USER
Comrade Komar
Not approved.
11:06 PM on 07/05/2012
Now I do not know why the small private businesses in Cuba do not buy their supplies from the whole sellers in the USA.
Why coffee from Florida and not from Colombia or Brazil, where it is grown.
Why do they have to pay the "mule" to bring it in?
To me it looks like they are making their lives harder than it needs to be.
12:46 PM on 07/06/2012
What is amazing is that people that have no a minimum understanding about how works things in Cuba dares to come out and support this regime!!!!!!!......... how can you be such unconditional supporter of castrofascism if you have not the bleakest idea about how thing are in Cuba?????

Totalitarian regimes of castrofascism type controls all economic activities including import and export and does not allow any kind of independent activity (economical or political) to the "native population". It is totally forbidden and penalized for Cubans by castrofascist law to commerce with foreigners, castrofascist state monopolizes all economic activity and........ that' why Cubans can't import coffee or whatever they need for their "small business" directly from a Colombian producer...... not even from a Cuban producer because Cuban producer have to sell their production to regime in a mandatory way...... all this in order to make regime the only distributor, the only producer, the only seller and buyer....... as monopolist regime set extremely high prices to any product it sells........ the real goal behind this move is to kill the reforms...... reforms which only motive was to calm for a while the international and national clamor for changes.......... but Cubans selfemployees found a way to survive: To buy supplies to the mules..........
01:52 PM on 07/06/2012
Those regulations does not affect only mules but overall affects the Cuban people that now see a new and heavy tax over their scattered suppliers: their relatives in USA......... as people always says, there is not worst blockade than the one castrofascism maintain on Cubans.
10:49 PM on 07/05/2012
People that knows Cuba, those that lived there decades suffering castrofascism are well aware that there is no worst embargo that the internal embargo castrofascism maintain on Cuban people....... now they set a new extremely high tax on Cubans inside Cuba by taxing the help Cubans outside Cuba sends to their relatives and friends in the island....... this demonstrate that castrofascism does not care about Cubans, they blame the US embargo for things they have the possibility to resolve them self...... but to make the life easy for the people is not in the interest of castro regime.
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Leonor Arango
i love Gandhi and God, we are all connected
06:48 PM on 07/05/2012
Sorry I cant do this fugitive write. Fast. The youth do not know better I cant blame them
They will not eat a can of this treasure
the touristas and him. Do not know inner agreement it been since 60
THERR IS NO INTEREST ONLY RUM. LOL
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Leonor Arango
i love Gandhi and God, we are all connected
06:37 PM on 07/05/2012
I had tried to post but was cut off
maybe with Mercy Corps license I can finish. I do not our ppl they not. Problem
They will not be recieving.a thing
High Hotels friends and him. No oil just rum. leonor lol