THE CUBA REV IE JV 



27 



Flour Tr.-^de Practically Normal 



Stocks of flour in various ports, especially Habana, are reported as somewhat 

 larger than usual. These stocks are almost exclusively in the hands of import merchants. 

 There is practically no consignment flour in Cuban ports. American mills are now 

 occasionally extending credits up to 90 days to Cuban flour importers. However, 

 most of the flour is paid for at sight or upon arrival, in order that advantage may 

 be taken of the substantial discounts granted by American exporters for cash payment. 

 The local flour merchant firms seem to be in a strong position, as they are supplying 

 bakeries and other large customers on lines of credit ranging up to 120 days. On 

 the whole, it may be said that the flour trade is now conducted practically on normal 

 lines. 



• Import Tariff Under Consideration 



For a number of wrecks a special tarifif committee of the House of Representatives 

 has been holding public hearings regarding the congressional tariff measure which 

 may be submitted to the Cuban Congress in the course of th^ next month. While 

 all classes of interested persons have been invited to express their views, the domestic 

 manufacturing interests appear to have been the most active. This tariff measure 

 provides for an entirely new classification of commodities, and aims as much as 

 possible to get away from the ad valorem system which has grown up under the 

 existing tariff. Owing to the confusion which will necessarily result in customs adminis- 

 tration, it may be expected that there will be some opposition to the measure when 

 the congressional debates commence. The new schedules are drawn up with a view 

 to affording greater protection to Cuban industry and also far the purpose of gaining 

 greater revenue. The actual import duty on some items would, however, be lower 

 under the proposed measure than under the existing tariff. 



Application of Sales Tax to Imported 

 Goods 



While the official interpretation of the 

 application of the Cuban 1 per cent sales 

 tax awaits the announcement of the Cuban 

 Government, in view of the uncertainty in 

 the minds of American exporters as to 

 the bearing of this tax on their Cuban busi- 

 ness, the following unofficial statement, 

 prepared by Acting Commercial Attache 

 Paul L. Edwards, at Habana, is believed 

 to represent the current opinion in Cuba as 

 to the reasonable interpretation of applica- 

 tion of the sales tax to imported goods : 



"While the text of the Cuban 1 per cent 

 tax on sales and receipts, which was en- 

 acted on October 9, 1922, and which went 

 into effect on December 1 last, provides 

 that the levy is to be collected on mer- 

 chandise of foreign origin, and is to be 

 paid by persons and concerns in Cuba who 

 represent foreign exporters on a commis- 

 sion basis or on any other basis, this tax 

 is not to be levied on sales made in Cuba 

 by persons and concerns who represent for- 

 eign houses located outside of Cuba on a 

 straight commission basis, provided ( 1 ) 



the commission agent does not ever have 

 actual custody over the merchandise; (2) 

 does not guarantee the quality of the mer- 

 chandise or the fulfillment of the terms of 

 the corresponding sales contract; (3) does 

 not have possession of negotiable docu- 

 ments of title covering the shipment, or of 

 documents made out to his order; and (4) 

 does not have anything to do with the col- 

 lection of payment for the sale. Thus, for 

 instance, x\merican exporters who receive 

 orders through straight commission agents 

 in Cuba need not concern themselves with 

 the 1 per cent tax when shipment is made 

 direct to customers there, pa\Tnent being 

 made on open account direct to the Ameri- 

 can exporter, or to a bank in exchange for 

 documents." 



Concerns having specific problems which 

 do not appear to be covered by the above 

 statement are invited to present them to 

 the Bureau of Foreign and Domestic Com- 

 merce, and an effort will be made through 

 the office of the commercial attache at 

 Habana to secure a ruling as soon as the 

 official interpretation of the Cuban author- 

 ities can be obtained. 



