Trade Restrictions and Their ImpactCuba has traditionally had many trade restrictions and trade barriers. Some restructuring has been taking place in the state sector since 2010, but in the private sector there are strict regulations and strict state controls. There are no open market policies to improve trade and investment growth, and a lack of competition continues to constrain dynamic economic expansion. Only government enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. Most means of production are owned by the government. Its planned economy discourages foreign trade and investment. The financial sector remains heavily controlled and access to credit for business is seriously hampered by the superficiality of the financial market. The government maintains strict exchange and capital controls.Import Regulations - CubaCuba's tariff system is defined in Law 124. This law establishes the operation and functions of the customs system. These laws and related regulations define requirements for import permits, establish import tariffs, and establish procedures for customs clearance. Import Permits Only government entities and joint ventures holding permits for the specific goods in question may import goods into Cuba. Agents and brokers may handle goods on consignment for authorized importers, but may not import on their own behalf and cannot conduct distribution operations. Joint ventures with foreign participation require Cuban partners. They can obtain import permits through their Cuban partners and subsequently include import rights in the joint venture agreement contract. Import Duties The Cuban importer generally pays import duties. T...... half of the paper......ts. They cannot distribute, import, sell or resell goods. Only their Cuban partners can do this. Non-Tariff Barriers - Exchange Controls Cuba has no exchange controls. However, changes are often made to the regulation. In 2004, the Cuban government changed laws relating to exchange controls. Stores and other businesses can no longer accept US dollars. Foreigners holding US dollars are also required to pay a 10% fee for convertible pesos. Convertible pesos were previously used interchangeably with US dollars. However, this is no longer the case. References http://www.heritage.org/index/country/cuba http://www.heritage.org/index/country/cuba http://www.tradecommissioner.gc.ca /ita/document.jsp?did =41224&cid=613&oid=121http://www.carib-export.com/login/wp-content/uploads/2009/08/doing_business_with_cuba.pdf