SLP, Mexico – The Cuban Government Further Restricts Operations of MIPYMES.
The Cuban government has tightened restrictions on micro, small, and medium-sized enterprises (Mipymes) by prohibiting wholesale trade activities, according to a resolution published in the Official Gazette.
The measure, published this Thursday and signed by Betsy Díaz Velázquez, Minister of Domestic Trade, requires Mipymes to conduct wholesale transactions through government mediation and bans wholesale trade for self-employed workers.
The resolution automatically revokes “licenses for wholesale activities granted to private micro, small, and medium-sized enterprises, as well as non-agricultural cooperatives, which had such activities approved as a secondary purpose in their corporate charter.”
With the stated goal of “organizing” wholesale and retail trade for Mipymes, the regulation stipulates that businesses primarily focused on production may only engage in wholesale trade of their own products.
Furthermore, they must do so strictly through contracts with state entities or via state-owned wholesale trading companies.
Mipymes and self-employed workers will be allowed to conduct retail sales as long as this is approved in their corporate purpose or project and they hold the appropriate commercial license.
Mipymes whose secondary activity is wholesale trade will have their licenses automatically canceled by the Central Commercial Registry, thereby prohibiting them from engaging in this activity. Similarly, self-employed workers operating in this sector will also lose their registration.
The resolution specifies that within 90 business days, companies whose primary function includes wholesale trade and wish to continue engaging in it must update their commercial licenses.
The new commercial license to be issued will stipulate that wholesale trade must be conducted through contracts involving state entities.
On the other hand, businesses that do not confirm their intention to conduct wholesale trade will have a maximum of 120 business days to “liquidate their inventories” and continue with retail sales, “provided this is defined in their corporate purpose and they hold a commercial license.”
More Restrictions on Mipymes
In a televised appearance, First Deputy Minister of Foreign Trade Ana Teresita González Fraga had stated months ago that, in order to bring foreign currency into the country, the government was promoting foreign investment in wholesale trade.
At the time, the official argued that they had decided to stimulate the development of businesses across the country to boost wholesale trade through foreign investment. Now, this trade will be under the absolute control of the state.
“Today, non-state actors, the Mipymes, are conducting wholesale trade. A group of them has been approved recently, showing diverse ways of doing business with a flexible, small structure. We believe that this is the right moment for the decisions we have adopted,” she added.
In September, the Cuban regime conducted an audit of the Chinese wholesale market known as China Import, located in El Cerro. The inspection identified several “irregularities,” leading to the closure of the establishment just two months after its opening.
The market, located on Manglar Street between Oquendo and Nuevo Pilar, had gained popularity after its inauguration for offering a wide variety of products. Purchases were regulated with minimum quantities depending on the type of product, with a minimum spending requirement of 50 USD.
The business was operated by a self-employed worker from Santiago de Cuba, who rented an old warehouse belonging to the Suchel Company of the Light Industry sector.
With the closure of China Import, the Cuban regime justified the improvements made to the regulatory framework for non-state management forms and their relationship with the state sector.
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