On 7 October 2026, Cuba’s Ministry of Finance and Prices (MFP) announced the publication of Decree Law 132 in Official Gazette No. 83 Ordinaria dated 5 October 2026. This decree modifies Decree Law 22, the “Customs Tariff of the Republic of Cuba,” to flexibilize the tariff regime applicable to non-commercial imports carried out by natural persons in their capacity as travelers. The measure aims to simplify customs procedures and adjust the tax burden on personal imports that do not qualify for non-commercial treatment, allowing individuals to opt for commercial importation under progressive tariff rates. The reform is part of the government’s broader economic transformation program to correct distortions and stimulate the economy, following a series of tariff exemptions for essential goods such as food, medicines, and solar photovoltaic systems announced earlier in 2026.
The previous regulatory framework under Decree Law 22 imposed a rigid tariff structure that often resulted in high effective rates for low-value personal imports, discouraging formal declaration and encouraging informal channels. Decree Law 132 introduces a progressive rate scale that increases with the value of the imported goods, providing a more equitable treatment for travelers bringing in merchandise for personal use. The Ministry emphasized that the new regime maintains the existing non-commercial import allowances but adds an optional commercial importation path for goods exceeding those allowances or not meeting the criteria, ensuring that customs revenue is collected fairly while reducing administrative discretion. The decree also introduces a simplified declaration process for travelers, reducing paperwork and wait times at border crossings. The progressive rate schedule is structured in three tiers: a low rate for goods valued up to 500 USD, a medium rate for goods between 500 and 2,000 USD, and a higher rate for goods exceeding 2,000 USD. This tiered approach replaces the previous single-rate system that applied uniformly regardless of value. The Ministry estimates that the new regime will increase customs compliance by 15% in the first year, generating additional revenue while lowering the average tax burden for compliant travelers. The measure also includes anti-avoidance provisions to prevent fragmentation of shipments to stay within lower tiers.
Key Takeaways
- Progressive Tariff Rates for Personal Imports: Natural persons importing goods that do not classify as non-commercial imports may now choose commercial importation, paying customs duties under a progressive tariff structure rather than the standard flat rates. This provides greater flexibility and potentially lower costs for certain categories of goods, especially for higher-value items that previously faced prohibitive duties.
- Alignment with Economic Transformation Goals: The measure supports the government’s strategy to modernize customs administration, reduce informal trade, and generate revenue while facilitating legitimate personal imports. It complements other recent tariff exemptions for essential goods such as food, medicines, and solar photovoltaic systems, reflecting a coherent policy shift toward targeted trade facilitation.
- Immediate Effective Date and Compliance: The decree enters into force upon publication in the Official Gazette on 5 October 2026. Taxpayers and customs brokers must apply the new progressive rates for eligible imports immediately, with the National Tax Administration Office (ONAT) issuing operational guidelines for implementation. Entities engaged in passenger baggage processing should update their systems to reflect the new rate structure and ensure proper classification of goods under the progressive scale.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement