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DOING BUSINESS WITH CUBA 2017

DOING BUSINESS WITH CUBA - TCTA Business with Cuba, Cuban PowerPoint... · Foreign trade operations (imports and exports of goods and services) and Foreign investment business on

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DOING BUSINESS WITH CUBA

2017

Cuba in the Caribbean

WHY CUBA?

A strategic location, in the heart of the Caribbean, ideally located to become the Hub of the Americas. ____________ Political, economic, legal and social stability. ____________ Respected globally. Diplomatic relations with 190 countries. ____________ Member of international and regional organizations. ____________ Highly qualified labour force ____________ Transport, communications and energy infrastructure available, all with investment and development plans. _____________ Commercial, investment and customs agreements with most countries in the region and internationally.

High Human Development indexes ____________ High levels of safety. ____________ World class universities and research centres. _____________ World class health system. _____________ Culture, history, architecture and sites of unrivalled beauty in the region.

HIGHLY QUALIFIED WORKFORCE

52%

23%

19%

6%

Educational Stage Economically Active People

High school level educationHigh school

38%

29%

23%

5% 5%

Distribution of workforce by occupational category

Operatives TechniciansIn services Administratives

WORLD CLASS EDUCATIONAL SYSTEM

How to do business with Cuba

Foreign trade operations (imports and exports of goods and services) and Foreign investment business on the modalities considered by the Cuban law.

Two ways to do business

Cuban Foreign Trade

Foreign trade operations are carried out by importing and exporting companies specialized on specific groups of products, dealing with more than 3 000 companies worldwide. No importation quotas are required.

Cuba is signatory to the Vienna Convention on Contracts for the International Sale of Goods, and is a GATT and WTO founding member.

Cuban foreign trade by regions in 2015

The Americas 43%

Europe 30%

Middle East, Africa and

Oceania 3%

Asia 24 %

Merchandise exports to country of destination

Merchandise exports by classification of product

How to trade with Cuba

Foreign companies do not require commercial presence or registration to trade with Cuba. Requirements to establish branch offices:

• 5 years of incorporation in its country of origin. • 3 years doing business with Cuba, with annual

transactions over 500 000 USD. • Equity stock not less than 50 000 USD.

The Chamber of Commerce of the Republic of Cuba may provide advisory services on the Cuban legal framework and practices, among other services.

www.camaracuba.cu

Foreign Investment in Cuba Cuba has taken the following steps:

The approval of the updated Foreign Investment Policy

(2011) The creation of Mariel Special Development Zone

(2013) The passing of a new regulatory framework, Law 118

(2014) The launching of the Foreign Investment Opportunities The Business Opportunities Portfolio yearly updated Target: US$ 2 billion through foreign investment

SUMMARY OF BUSINESS OPPORTUNITIES

MINING RENEWABLE ENERGY

AGRO-FOODS CONSTRUCTION TRANSPORTATION

BUSINESS TOURISM HEALTH

AUDIOVISUAL

HIDRÁULIC

SUGAR INDUSTRY

OIL BIOTECH- NOLOGY

INDUSTRY

FIHAV 2017

1ST week of November

35 TH HAVANA INTERNATIONAL TRADE FAIR

Structure of Transport in Cuba www.mitrans.cu

Maritime Administration of Cuba

Institute of Civil Aeronautics of Cuba

General Direction of Road Transportation

Administration of Railroad Transport

Ministry of Transport

Maritime System www.mitrans.cu

Direction of Inland Waterway and Sea Transport

Direction of Maritime Safety

Direction of Port Administration

Maritime Administration of Cuba

Territorial Maritime Administration

1966

1994 1999

2013

2014

Navigation Law No.115 and Decree Law No.230 of Ports

Insertion in IMO FAL 65 LINE LOAD 66 TONNAGE 69 COLREG 72 MARPOL 73 SOLAS 74 STCW 78 SAR 79 ISM, ISPS & ISCI

Codes

Insertion in ROCRAM Adherence to the Viña del Mar Agreement Adherence to the

Caribbean MOU

Insertion in MTOP Bilateral Agreement

signed on 09/01/17

Insertion of Cuba in the Maritime Organizations and International Maritime Treaties

:

www.mitrans.cu

Operational Procedures Cuba-EEUU in Search and Rescue (SAR)

Environmental Legislation Certified Ports in ISPS Code

Volumes Transported 14 million tons, from which: 6,5 diverse fuels 5,0 massive cargoes and containers 2,5 exports

Principal Imports

Fuel, Containers, Steels, Frozen goods, Grains (Rice, Beans, Wheat, Maize and Soya), Fertilizers, Fodder and Equipment

Principal Exports

Sugar, Nickel, Alcohol, Charcoal, Zeolite, Coffee, Cocoa, Rum, Honey, and Fresh Fruits Receivers: China, Canada, México and Europa

Maritime Transport 2015 www.mitrans.cu

La Habana

Mariel Matanzas

Nuevitas

Cienfuegos

Santiago de Cuba

Port Administration

Containers

General Cargoes

Liquids Cargoes

Cruisers

Grain Sugar

Port Services

Carúpano

Guayabal

Ship Yards A

A

A

A

A

Punta Francés Casilda

Moa

First Category Ports and designations

Cayo Largo

Antilla

www.mitrans.cu

Cruise ship Operations

www.mitrans.cu

Other calls

La Habana

Santiago de Cuba

Cienfuegos

3 Cruise Terminals

Punta Francés

Cayo Largo del Sur

Casilda

Antilla

Signed contracts with 4 US Companies: CARNIVAL, ROYAL CARIBBEAN, NORWEGIAN CRUISE & PEARL SEAS.

“Cuba is a tremendous opportunity” Arnold Donald, Carnival Cruise Lines President & CEO,

December /2014

• Mariel Port is ideally positioned to serve as first port of call on USEC services from Asia, WCSA & ECSA.

• Mariel is a greenfield location with ample room for future expansion in protected deep waters.

• Mariel Special Development Zone offers attractive legislative and fiscal advantages for foreign investors to produce and assemble goods in Cuba for export to US and elsewhere in Caribbean.

• Cuba’s economy in undergoing with significant growth in tourism, and the investments in the Mariel Special Development Zone. These economic changes will drive imports and exports of Cuba.

Mariel Port and Cuban Economic Development

Mariel Pier

Mariel La Boca

Pier

Mariel Angosta Pier

TC Mariel

PORT TERMINALS MANAGED BY ALMACENES UNIVERSALES S.A. IN MARIEL

The Port of Mariel is just 45 km West of Cuba’s capital city and its terminals are located in a sheltered deep water bay, in the center of Mariel Special Development Zone.

TC Mariel, is designed to operate New Panamax vessels, has a state-of-the-art port infrastructure, a Master Plan and areas reserved for future expansion and development.

The Terminals have qualified and experienced staff who guarantee yield and productivity levels of international standards in the port industry.

TC Mariel and Mariel Port Terminals are wholly-owned Cuban companies, belonging to the multimodal service leader group "Almacenes Universales S.A.“ TC Mariel has an administration contract with PSA International from Singapore, a Leader in Terminal Operation worldwide.

Mobile Gulfport New Orleans

Houston

Progreso

Veracruz

Puerto Cortes Puerto Castillo

Puerto Limon

Miami

Jacksonville

Port Everglades Tampa

Kingston

Cartagena

Mariel

Panama

Bahamas

Charleston Savannah

Altamira

New Panamax ready (13,500 TEU)

Post Panamax ready (> 5000 TEU)

Panamax ready (4000~5000 TEU)

Non Panamax ready (< 4000 TEU)

Norfolk

Cañaveral

Caucedo

500nm

750nm

1000nm

The most interesting opportunities may open up for well established Caribbean ports such as Kingston, Freeport, Bahamas; Panama; Cartagena, and recently Mariel, Cuba.

TC MARIEL. GEOGRAPHIC LOCATION TC Mariel Geographic Location

Infrastructure 2016 Future

Berth length 702 2400

Max draft (m) 17.0 17.9

Gantry cranes SPP 4 (6*) 24

RTG 12 72

Prime movers 22 132

Empty C. Handlers 4 18

Reachstackers 2 3

Area (ha) 27.7 95

Reefer plugs 1140 2500

Total capacity(TEU) 800,000 3,000,000

* With no need for additional work on the dock

Railway facility

RMG 2 2

Railway tracks 4 4

Capacity (TEU) 120 000 300. 000

ESP Mariel

PORT FACILITIES UNDER THE ADMINISTRATION OF ESP MARIEL

ESP Mariel La Boca

ESP Mariel Angosta

Terminal Servicios Portuarios Mariel has three facilities located inside the perimeter of Mariel Bay, all three able to operate general cargo, including Ro-Ro.

10 hectares reserved for future

development. These facilities will gradually

incorporate the transfer of general cargo currently operated in the Port of Havana.

The Terminals provide logistics support to off shore oil prospection on Cuba’s Exclusive Economic Zone in the Gulf of Mexico.

INFRASTRUCTURE

Infrastructure 2017 Short term Area (Ha) 31 41

Berth Length (ml) 1480 2145

Maximum draft (m) 8,8 12,0

Gantry cranes 2 3

Fork lifts 12 18

Rolltrailers 14 22

Reachstaker 1 3

Tug master 3 5

Grabs 3 4

Trimming dozer - 1

Front loaders 1 2

CONCEPT

Mariel Special Development Zone is a long term visionary project and a pillar of the update of Cuba’s economic model.

FRIENDLY BUSINESS ENVIRONMENT

Attractive fiscal regime with tax exemptions and reductions

Only two approval levels within a term not exceeding 60 days

One Stop Shop System

Team of professionals advising and assisting investors

High standard infrastructures and services at the disposal of investors.

ventajas MASTER PLAN FOR SECTOR A

Three phases of development on short, medium and long terms.

Incorporates the highest urban and environmental quality standards

Each phase incorporates activities of higher added value.

Advanced Manufactures

Biotechnology and

Pharmaceutical Industry

Logistics Services

Pillar Industries

Construction services

Banking and Financial entities

APPROVED USERS

35

4 Wholly Owned Cuban Co 13 Wholly Owned Foreign Co 5 Joint Ventures 1 IEA

962,6 million USD 4 031 jobs

‘’… the will of the Cuban government is to develop respectful and cooperation relations with the USA; but it must be on the basis of full equality and reciprocity, absolute respect for Cuba’s independence and sovereignty, without interference of any kind.’’ Josefina Vidal Ferreiro, General Director, USA Desk, MINREX - 17/10/16

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