The decentralization process in Cuban foreign trade started in 1992, allowing state and private enterprises, joint ventures and international economic associations as well, the direct access to external market, as the number of foreign businessmen opening branch offices in Cuba increased or were represented by agents, and many warehouses were established and worked in consignation regime or custom deposit, as well as duty free zones and industrial parks were opened.

There are several particular characteristics ruling Cuban foreign trade, that should be well known by all businessmen interested in commerce with the Island, which are:

• The establishment of commercial relations and all transactions derived from them are carried out directly between the involved foreign enterprises and Cuban entities entitled to perform foreign trade, without mediation of any state ministry or institution.

• There are no regulations for exports / imports aimed to limit commerce, but all established procedures are carefully required, specially those related to regulations for preserving national patrimony; prohibitions regarding drugs and narcotics; toxic and explosive substances; trans-border transfer of dangerous remainders; sanitary controls and registries, as well as measures for protection of threatened species conceived for protecting flora and fauna from commercial excesses.

• On January 1st, 1997,by means of the Ministry of Foreign Trade and the Ministry of Finances and Prices' (both in Spanish) Joint Resolution # 5-96, several substantial modifications to custom tariffs were in forced, which permitted Cuba's adaptation to then-existing national and international economic conditions. These changes set the maximum tariff of Most Favored Nation, as a standard, in 30% ad valorem, and as simple average, in 10.7%.

Regulations for Establishing Branch Offices and Agencies

According to the changes in progress in Cuban economy within its international economic relations, and all the accumulated experience and international practice, Cuban law authorizes, by means of Decree 206 [April 1996], the establishment of mercantile societies or individual foreign entrepreneurs interested on maintaining a branch office in the country in order to attend to commercial relations with Cuban enterprises and ministries.

On the other hand, for those foreign entities or businessmen who want to have a representation in the country, - without opening an office -, it is possible to get such a representative, (after being previously granted an agency contract), which would be a national entity legally authorized to act as an agent in the Island.

The inscription in the Branch Offices and Foreign Mercantile Societies Agents National Register, based in the Chamber of Commerce of the Republic of Cuba is an indispensable requisite for establishing an office in the Republic of Cuba, and the document that credits such authorization is the license issued by such National Register.

In addition to previously mentioned requisites, the Minister of Foreign Trade issued on November 13, 2001 the Resolution # 550/01, which complements the above mentioned Decree, establishing basic principles to take into account for the inscription authorization in the Branch Offices and Foreign Mercantile Societies Agents National Register; among them is the presentation of the enterprise's last accountable balance, properly audited by an independent entity, extract from the Mercantile Register, issued no more than 6 months before the application's presentation date. It also establishes a yearly volume equal or superior to half a million US dollars during the last 3 years of operation with Cuba.

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