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An Exporter’s Guide to Cuba
CARICOM/CUBA TRADE & ECONOMIC AGREEMENT
CONTENTS
UNDERSTANDING THE TRADE & ECONOMIC AGREEMENT
Overview
Benefits of Exporting to Cuba
Trade in Goods
Trade Promotion and Business Facilitation
Trade Financing
Free Trade Zones / Export Processing Zones
Rules of Origin
Wholly Produced Goods
Processes of Substantial Transformation
Certificate of Origin
Maintenance of Records
Verification of Documentation
Direct Delivery
Trade in Services
Tourism
Provisions for Investors
Can Investors Convert and Transfer Funds?
How Can Investors Resolve Disputes?
Double Taxation
Transportation Services
Safeguard Measures
Unfair Trade and Anti-Competitive Business Practices
Settlement of Disputes
Intellectual Property Rights
General Exemptions
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ABOUT CUBA
Cuba: Facts and Figures
The Cuban Market
Exports
Imports
Customs Duties
Labour Regulations and Workforce
Labelling and Marking Requirements
Advertising and Sales Promotion
EXPORT PROCEDURES
Exporting from Trinidad & Tobago
Import Controls in Cuba
Import Permits
Registration Process
Customs Procedures
Documentation - Shipping Marks and Export Documents
Translation Services
Shipping Information
Exporters’ Resource: The Trade Facilitation Office
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UNDERSTANDING THE TRADE & ECONOMIC AGREEMENT
OVERVIEW
The CARICOM/Cuba Trade and Economic Agreement provides for extensive duty-free treatment on
specific goods such as fruit juices, various sauces, condiments, seasonings, clothing and much more. It
also provides for duty-free treatment on specific agricultural products at scheduled periods throughout
the year. A number of products have also been designated for reduction and elimination of tariffs on a
phased basis. These preferential tariff treatments provide Trinidad and Tobago’s exporters with greater
access to Cuba’s market, which is in excess of 11 million consumers.
In addition to the reduction of duties on traded goods, the Agreement also visits the removal of
regulatory and administrative barriers to both goods and services and technology and exchange through
co-operation activities. Signed in July 2000, the Agreement also addresses such activities as investment,
trade in services, taxation, trade promotion and facilitation, tourism and intellectual property rights.
A Joint Commission comprising members of both parties has the responsibility for supervising the
implementation and administration of the Agreement. The Commission, which is mandated to meet
annually, is also responsible for resolving any disputes which may arise from the interpretation and
execution of the agreement. The Joint Commission also has the mandate to review the governing
technical regulations and consider measures to ensure that technical standards do not constitute
unnecessary barriers to trade. In addition, the Trade Facilitation Office is an important resource, which
provides our exporters with representation in Cuba.
WHAT ARE THE BENEFITS OF EXPORTING TO CUBA?
Some of the benefits of exporting to Cuba include:

Competitive market pricing for exported products covered by the Agreement;

Access to a large, regional market that is considered “virgin” territory due to the limited
presence of traditional competitors and dominant local, regional and international brands;

Opportunities for investment in a market that is currently in transition and focusing on
developing its productive capabilities, in particular, tourism and agriculture;

Ability to capitalize on the strengths of Cuba in areas such as medicine, education, services, etc.;

Less resources need to be expended on traditional advertising and promotional activity for
consumer goods.
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HOW DOES THE AGREEMENT PROMOTE TRADE IN GOODS?
Under the Agreement, specific goods that satisfy the rules of origin will be granted duty free access on
entry into Cuba.
In order to avoid the adverse impact on the demand for local products resulting in serious losses to
producers/farmers, and taking into account the seasonal and perishable nature of agricultural products,
the Most Favoured Nation (MFN) rate may apply to selected products during certain identified periods.
These scheduled products include melon, papaya and rice.
HOW IS TRADE PROMOTION AND BUSINESS FACILITATION ENCOURAGED?
The parties will establish trade promotion programmes, facilitate official and business missions, organise
trade fairs and exhibits and exchange information, conduct market research projects and carry out any
other activities related to the implementation of the liberalisation programmes and any opportunities
arising from these trade measures.
All necessary legal steps will be taken to facilitate investment and the expansion of trade in goods and
services. Measures will be adopted to achieve and maintain transparency, to encourage information
exchange and to harmonise customs procedures and technical standards.
IS TRADE FINANCING SUPPORTED?
Under this Agreement, the essential role of trade financing in the development of trade is recognised.
All necessary legal steps will be taken to encourage banks and other financial institutions engaged in
foreign trade in their respective territories to increase their support to exporters and importers for the
purpose of expanding trade. This will include the following measures:

Establishment of lines of credit

Confirmation of letters of credit

Provision of guarantees

Discounting of bills of exchange, commercial paper and similar instruments

Provision of pre-shipment and post-shipment finance

Export credit insurance.
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HOW ARE GOODS PRODUCED IN FREE TRADE ZONES / EXPORT PROCESSING ZONES TREATED?
Goods produced in or shipped from Free Trade Zones / Export Processing Zones shall be subject to the
Most Favoured Nation (MFN) rate of duty.
WHAT ARE THE RULES OF ORIGIN?
Rules of Origin help determine whether products qualify for preferential entry into the market of the
trading partner. They identify the extent to which goods must be processed within a domestic market
before they can be considered eligible for preferential access into the importing market. A product can
obtain “originating status” if it has been either “wholly obtained” or “sufficiently processed” in the
country of origin concerned. These rules aim to prevent third countries from benefiting from the
preferential trading agreement by simply transhipping their exports through an eligible country.
WHAT CONSISTS OF WHOLLY PRODUCED GOODS?
Under this Agreement, “wholly produced goods” consists of the following:
 The mineral, plants or animal kingdoms (including those from hunting and fishing), extracted,
harvested or gathered, born, bred or captured in the territories of parties or in their territorial
waters or in their exclusive economic zones;
 Goods of the sea extracted beyond the territorial waters of the parties and their exclusive
economic zones by ships, wholly or partially owned by nationals of the parties, legally chartered,
leased or contracted under joint venture arrangements by enterprises established in the
territories of the parties;

Goods of factory ships, that are wholly or partially owned by nationals of the parties, legally
chartered, leased or contracted under joint venture arrangements by enterprises established in
the territories of the parties; such goods will be produced from goods of the sea and extracted
by ships in accordance with the provisions above;

Ships will be considered as partially owned by nationals of the parties where the level of
ownership by such nationals is at least 50%;

Slag, ashes, residue, waste or scrap, gathered or obtained from manufacturing and processing
operations performed in the territories of the parties, fit only for the recovery of materials, as
long as they do not constitute toxic or hazardous wastes in accordance with national and
international law on the matter;
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
Goods produced in the territory of a party solely from materials or products originating in such a
party;

Goods produced in the territories of the parties, which utilise materials from third countries, will
meet the criteria under the Rules of Origin as follows:
o
Goods are classified in a Customs classification heading of Nomenclature of the
Harmonised Commodity and Coding Systems which is different from those in which all
the materials from third countries used are classified;
o
Goods in which the c.i.f. value of the materials from third countries used does not
exceed 50% of the f.o.b. price of the goods produced;

Goods which meet the specific origin requirements determined by the Joint Council.
WHAT PROCESSES ARE NOT CONSIDERED PROCESSES OF SUBSTANTIAL TRANSFORMATION?
Exporters to Cuba should also note that under the Rules of Origin, the following are not considered
processes of substantial transformation:

Operations to ensure the preservation of goods during transportation or storage, such as
ventilation, refrigeration, freezing, addition of preservatives or salt, removal of damaged parts
and the like;

Operations such as dust removal, washing or cleaning, sifting, peeling, shelling, winnowing,
maceration, drying, sorting, classification, grading, selection, crushing, filtering, painting or
cutting up;

Simple formation of sets of products;

Packing, placing in containers or repackaging;

Dividing up or assembly of packages;

Affixing of brands, labels or other similar distinctive signs;

Simple mixture of materials, if the characteristics of the goods obtained are not essentially
different from the characteristics of the materials which have been mixed;

Slaughter of animals;

Simple dilution in water or in other substances, which does not alter the essential difference
from the characteristics of the materials which have been mixed;

The carrying out of two or more of the operations above.
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IS A CERTIFICATE OF ORIGIN REQUIRED?
To benefit from the preferential treatment, a Certificate of Origin must be prepared, which will provide
in a single document the following information:

A declaration by the exporter or the final producer that the origin requirements have been
fulfilled;

A certificate by the authorised body of the exporting country that the declaration by the
exporter or the final producer, as the case may be, is accurate.
Even where the exporter is not the final producer of the goods, the exporter will present the declaration
of origin to the authorised body. The certificate of origin will be valid for a period of 180 days.
In the event that the importer is unable to submit a certificate of origin in respect of the clearance of
any goods, the Customs Division may permit release of the goods and may adopt the actions necessary
to safeguard fiscal interests.
FOR HOW LONG SHOULD RECORDS BE MAINTAINED?
The exporter or final producer who completes and signs a certificate of origin must keep all records and
documents pertaining to the origin of the goods for a minimum of three years from the date of the
certificate and produce these records and documents as necessary to the relevant authorities when
requested.
HOW IS DOCUMENTATION VERIFIED?
The relevant authorities may request from the exporting country that its body authorised to issue
certificates of origin review such documentation in the following instances:

There are grounds for doubt with regard to the authenticity of the document;

There are grounds for doubt with regard to the accuracy of the data contained in it;

Where random checks are considered necessary.
Appropriate legal measures may be adopted against those who furnish any document containing false
information in accordance with national legislation.
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IS DIRECT DELIVERY REQUIRED?
In order for goods to benefit from preferential treatment, they must be directly delivered from Trinidad
and Tobago to Cuba. For this purpose, the following shall be considered as direct consignment:

Goods transported without going through third countries;

Goods transported in transit through one or more non-participating countries, with or without
transhipment or temporary storage, under the surveillance of customs authorities of such
countries, provided that:
o
The transit is justified by geographical reasons or by considerations related to transport
requirements;
o
The goods are not designed for trade or use in the transit country;
o
The goods do not undergo during transportation or storage any operation other than
loading or operations to keep them in good condition and ensure their conservation.
HOW IS TRADE IN SERVICES ADDRESSED?
The parties have agreed to work towards negotiations for the establishment of a regime for trade in
services. The following sectors will be given special consideration:

Entertainment Services;

Financial Services;

Professional Services;

Construction and related engineering services;

Computer and related services;

Telecommunication services;

Transport services.
Once these negotiations are concluded, the Agreement states that each party will grant to the services
and service suppliers immediate and unconditional treatment that is no less favourable than is granted
to any other country.
HOW IS TOURISM TREATED?
The Agreement undertakes to ensure that there is co-operation in all areas of tourism development and
marketing. It makes provisions for joint preparation and promotion of tourism products and
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programmes designed to encourage multi-destination travel and increase the number of visitors to the
territories as well as diversification and development of the tourism product.
It also provides for mutual technical assistance in the area of human resource development, foreign
language training, hospitality training, tourism planning and development and hotel management
training.
Finally it encourages the participation of the business sector in special programmes dealing with the
supply of goods and services for the tourism, travel-related and entertainment sectors.
WHAT PROVISIONS ARE THERE FOR INVESTORS?
The Agreement seeks to promote, protect and facilitate investments between the trade partners
through the development and adoption of an agreement on reciprocal promotion and protection of
investments.
According to the provisions on investment, in accordance with its laws, each party will grant the
necessary authorisations for these investments, allow licensing agreements for manufacturing and for
technical, commercial, financial and administrative assistance and grant the necessary permits for the
activities of professional staff and consultants hired by investors.
Investments by Trinidad and Tobago’s investors will not be treated in a manner less favourable than
Cuba’s own investors or investors of other countries, in accordance with national laws governing foreign
investment. However, this does not apply to any advantage for a third state resulting from any customs
union, free trade, common market, monetary union or any international agreement relating to taxation.
Other existing bilateral treaties may also entitle other countries’ investors to more favourable
treatment.
Nevertheless, treatment of investors will be fair and equitable and will in no way impair, through the
adoption of arbitrary and discriminatory measures, the management, operation, maintenance, use,
enjoyment, acquisition or disposal of investments.
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Investors will be allowed to enter and remain in the territory for the purposes of establishing,
developing or administering their investments or to advise on investments in which they have
committed a substantial amount of capital or resources. All laws, judgments, practices and procedures
and other rules and regulations regarding investments require publication.
Investors whose investments suffer losses owing to war or other armed conflict, a state of national
emergency, revolt, insurrection or riot will be accorded treatment regarding restitution, indemnification,
compensation or other settlement no less favourable than that which the country grants to investors of
other States.
Investments will not be expropriated or nationalised either directly or indirectly through the application
of legal measures unless the following conditions are relevant:

The measures are taken in the public interest and under due process of law;

The measures are not discriminatory;

The measures are accompanied by the provision for the payment of adequate compensation.
Such compensation will amount to the market value of the relevant investments immediately
before the measures were publicly announced and will include interest at a normal commercial
rate until the date of payment. This will be paid and made transferable, without undue delay, to
the country designated by the claimants and in the currency in which the investment was made
or any other freely convertible currency as agreed at the exchange rate applicable at the time of
remittance.
CAN INVESTORS CONVERT AND TRANSFER FUNDS?
In accordance with any laws relating to taxation, investors will be granted the right to the unrestricted
transfer of the following:

Returns;

The proceeds from the total or partial liquidation of an investment provided that in periods of
serious balance of payments difficulties, such transfers may be phased over three years;

Amounts for the repayment of loans incurred for the investment;

The net earnings of nationals who are employed and allowed to work in connection with an
investment;
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
Payments deriving from indemnifications arising from expropriations and compensation for
losses provided for in the Agreement.
These transfers will be in the currency in which the investment was made or any other freely convertible
currency as agreed upon, at the exchange rate applicable at the time of remittance.
All transfers regarding investment, remitted to or proceeding from its territory, will be conducted freely
and without delay. However, transfers may be prevented through the equitable, non-discriminatory and
good faith application of its laws relating to:
 Bankruptcy, insolvency or the protection of the rights of creditors;
 Issuing, trading or dealing in securities;
 Criminal or penal offences;
 Reports of transfers of currency or other monetary instruments;
 Ensuring the satisfaction of judgments in adjudicatory proceedings.
HOW CAN INVESTORS RESOLVE DISPUTES?
If investors’ disputes should arise and have not been settled amicably within a period of three months
from the date of written notification of the claim, either party may submit the dispute to the courts of
that party or to national or international arbitration.
Where the dispute is referred to international arbitration, the investor and the party concerned in the
dispute may agree to refer the dispute to an international arbitrator or ad hoc arbitration tribunal to be
appointed by a special agreement or established under the Arbitration Rules of the United Nations
Commission on International Trade Law.
Neither party will give diplomatic protection or bring an international claim, in respect of a dispute
which one of its investors has consented to submit to arbitration, unless the other party has failed to
abide by and comply with the award rendered by the arbitral tribunal. Diplomatic protection will not
include informal diplomatic exchanges for the sole purpose of facilitating a settlement of the dispute by
the arbitral tribunal.
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The awards of the arbitrator shall be definitive, compulsory and without appeal for the contracting party
and the investor.
ARE DOUBLE TAXATION ISSUES EXPLORED IN THE AGREEMENT?
There are provisions for the parties to work towards the adoption of Double Taxation Agreements
between CARICOM Member States and Cuba.
HOW IS THE DEVELOPMENT OF TRANSPORTATION SERVICES PROMOTED?
The importance of developing transportation services to facilitate trade is recognised. The Agreement
seeks to encourage the following activities:

Disseminating information on air and maritime transport services that are offered currently via
the air and maritime entities of Member States of CARICOM and of Cuba with the aim of
increasing traffic;

Creating joint ventures or other modalities of economic association within the scope of
international transportation;

Organising a network of cargo agents for maritime transportation from the territories of the
parties;

Establishing specific agreements to facilitate maritime and air transport in accordance with the
requirements of the International Civil Aviation Organisation (ICAO);

Exploring and identifying the possibilities of developing import-export transhipment hubs in
order to support trade between the parties and third party markets;

Strengthening of the capability of the parties to ensure operational safety and airworthiness in
accordance with the requirements of ICAO;

Establishing co-operative ventures among air and maritime transport authorities on matters
relating to the safe, efficient and reliable provision of international transportation services
within the territories of the parties.
CAN SAFEGUARD MEASURES BE APPLIED?
Safeguard measures may be applied where imports are in such amounts that they may seriously affect
national production of similar goods. They will consist of temporary suspension of the tariff preferences
and the re-instatement of the duties for the specific product. These measures will be applicable initially
for no longer than one year and may be renewed for another year if circumstances persist.
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HOW DOES IT DEAL WITH UNFAIR TRADE AND ANTI-COMPETITIVE BUSINESS PRACTICES?
Where there is evidence of injury, material or threat of injury to domestic industry due to unfair trade
practices such as subsidies and dumping, corrective measures may be applied in accordance with World
Trade Organisation regulations.
Anti-competitive business practices will be discouraged and prevented. Measures and mechanisms will
be implemented to facilitate and promote competition policy.
HOW ARE DISPUTES SETTLED?
Parties will first seek to resolve disputes through informal consultations. In the case of perishables, the
Joint Commission should be notified immediately of the dispute and of action being taken. If a mutual
solution is not reached within 30 days or in the case of perishables within 10 days, the aggrieved party
may write to the other party requesting the Joint Commission’s intervention.
PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
The Agreement also makes provision for the protection of intellectual property rights. Respective
national laws on intellectual property will be applicable and where these national laws conflict with the
provisions in the Agreement, the provisions will prevail, except for the provisions on plant varieties.
The relevant legal measures will be adopted in order to protect the intellectual property, including those
provisions involving technological transfer and economic, scientific and technical collaboration.
Furthermore, the Agreement encourages the establishment of co-operation programmes in relation to:

Training courses for officials;

The compilation and use of documentation on industrial property;

The structuring and implementation of value-added services for decision-making in the fields of
technology, investment and trade;

The structuring and implementation of national systems pertaining to Intellectual Property;

The exchange of information to facilitate mutual knowledge of national policies on the different
areas in the field of Intellectual Property;

Conclusion of agreements for implementing this co-operation.
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WHAT ARE THE GENERAL EXEMPTIONS TO THE AGREEMENT?
The following general exemptions to the Agreement include measures that may be taken to ensure the
following:

To protect public decency;

To protect human, plant and animal health, and to preserve the environment;

To protect public order;

To control the production, distribution and use of narcotics and psychotropic substances;

To secure compliance with the laws and regulations pertaining to customs or marketing;

To secure compliance with the laws and regulations that govern foreign investments;

To protect intellectual property rights or prevent dishonest practices;

In connection with the production of and trade in gold and silver;

In connection with goods produced by prison labour;

To protect national treasures of artistic, historical or archaeological value;

To prevent or alleviate any critical food shortage;

In connection with the preservation of non-renewable natural resources.
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ABOUT CUBA
CUBA: FACTS AND FIGURES
Official name: Republica de Cuba / Republic of Cuba
Capital: Havana
Area: 110,860 sq km
Population size: 11,243,836 (Dec. 2005)
Population Growth: 1.44%
Demographics:
Age structure: 0-14 years: 19.1%; 15-64 years: 70.3%; 65 years and over: 10.6%
Ethnic groups: Mulatto (51%), European (37%), African (11%), Chinese (1%)
Nationality: Cuban
Location: A island 150km south of Key West, Florida , between the Caribbean Sea and North Atlantic
Ocean
Official language: Spanish
Currency: Cuban Peso (CUP) and Convertible Peso (CUC)
Territorial organisation: 14 Provinces and 1 Special Municipality
Government system: Socialist State
President: Raul Castro
Exchange Rate: US1 = CUC 1 (additional surcharge of 10%)
Official time: GMT -4
Dialing Cuba: 011 + 53 + Local number
Natural Resources: Nickel, petroleum, natural gas
Main airport: Jose Marti
Main Exports: Nickel/cobalt, pharmaceutical and biotech products, sugar, tobacco, seafood, citrus,
tropical fruits, coffee
Main Imports: Petroleum, food, machinery, chemicals
Main Ports: Cienfuegos, Havana, Matanzas
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THE CUBAN MARKET
Tourism is the major sector in the Cuban economy. Previously dominated by sugar, the economy has
been opened up to foreign investment. Among the investors were a number of hotel companies which
entered joint venture arrangements with the Government to construct hotels. Today Cuba welcomes in
excess of two million visitors and tourism accounts for over 60% of Gross Domestic Product.
Agriculture was the mainstay of the economy for over 30 years following the Cuban revolution of 1959.
The principal agricultural activity was sugar production as Cuba had a guaranteed market in Eastern
Europe for sugar, the main export outlet for the commodity. However, with the loss of Eastern Europe
following the political changes, which resulted in those countries attaining their independence from the
Soviet Union, the industry experienced declines. Although production is lower, Cuba is still a major
producer of sugar and it exports the commodity to some markets in Europe and to China. It is involved
in a deal with Venezuela where Cuban sugar is exchanged for oil from that country. Nonetheless, the
Cuban government is looking to attract foreign investment in the sugar industry in an attempt to lift
production.
Nickel production is on the increase. Venezuela and China have invested heavily in this segment of the
Cuban economy and Cuba is now one of the world’s largest producers of nickel and cobalt.
Manufacturing is another segment of the Cuban economy which contributed to the economic recovery
following the difficult years of the early 1990s. The production of food and beverage, chemicals, cement,
tobacco, clothing and textiles, and pharmaceuticals, are some of the principal goods manufactured by
the Caribbean island. The country has also been exporting these items to markets in Europe, Canada,
Latin America and China.
Construction activity in Cuba continues to be robust. Foreign investment in the tourism sector has
meant a wave of new hotel construction to boost the island’s hotel room stock.
The oil industry in Cuba is expanding. Previously, Cuba had received its oil supplies from the then Soviet
Union at concessionary prices. However, this was subsequently suspended in the early 1990s when the
Soviet Union was disintegrated. This had disastrous effects on the Caribbean island. With energy
shortages, electricity was rationed, industrial output declined, public transportation was disrupted and
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there were constant blackouts in the country. The Government subsequently looked for ways to
stimulate the oil industry by inviting foreign investment in the sector. This has paid dividends. While
Venezuela is now the main supplier, the domestic industry is presently supplying 20 percent of local
requirements.
The pharmaceutical industry in Cuba continues to make strides. Biotechnology and indigenous
technologies are the main areas driving this area of the Cuban economy. Estimates suggest that while
the industry saves the country in excess of US$60 million in imports annually, it also maximizes earnings
through the export of medicines and prescription drugs to about 30 countries, including some in Latin
America. Research is also taking place to produce new pharmaceuticals products for the export market.
The Central Bank of Cuba is at the apex of the banking system in the country. First established in 1948 as
the National Bank of Cuba, this institution was reorganized on at least four occasions, the last being in
1997 when it became the Central Bank. Its President is a member of the Council of Ministers of Cuba.
The financial system is made up of several commercial banks, an investment bank and non-bank
financial institutions. The Havana Investment Bank is registered in London. There are no stock
exchanges. The Cuban Central Bank performs traditional central banking operations – issuing currencies,
managing the financial system and the economy, specifying monetary policy, and acting as lender of last
resort.
Cuba has two currencies in circulation: the Central Cuban Peso (CUP) and the convertible Peso (CUC).
Cuba levies a 10 percent charge on each conversion of US dollars to CUP. The Cuban peso is used by
government wage earners for subsidized goods and services, while the convertible peso is used for the
purchase of consumer goods not available in peso stores or in the government ration. The Cuban peso is
tied to several major foreign currencies, including the Euro, initially making for an eight percent
revaluation.
EXPORTS
Cuba has intensified its exports of goods and services. Cuba’s main exports are services (mainly tourism),
sugar, tobacco, nickel, medical products, citrus fruits and coffee. Main export markets are the
Netherlands, Canada, Venezuela, Spain, China, Russia and France. The country also exports to Latin
America and the Caribbean.
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IMPORTS
Petroleum and food account for the majority of imports into Cuba. The main imported food items
include corn, rice, and beans. Petroleum, machinery and chemicals also account for a fair share of
imports to the island. Main suppliers include Venezuela, China, Spain, USA, Canada, Brazil, Germany,
Italy and Mexico. Imports are handled by Alimport, a state agency.
CUSTOMS DUTIES
Following reductions in 1997, the simple average tariff on about 5,000 commodities was reduced from
11.9% to 10.7% for Most Favoured Nation (MFN) countries, according to the Ministry of Foreign Trade
(MINCEX). The maximum MFN tariff is 30%. Import tariff classifications are based on the Harmonised
System (HS) at the 8-digit level. Regulation 4/98 provides for duty drawback in a number of
circumstances. These include temporary importation for upgrading or re-export and replacement of
materials incorporated in exported products as well as chemicals that disappear during the production
process and which are not incorporated to the final product. These drawbacks are granted only when
the circumstances are deemed to be of national interest or for commercial viability in foreign markets.
LABOUR REGULATIONS AND WORKFORCE
Under the Foreign Investment Law, foreign businesses cannot directly hire or pay Cuban workers.
Labour services must be obtained through an intermediary Cuban employer proposed by the Ministry of
Foreign Investment and Economic Co-operation (MINVEC) and authorised by the Ministry of Labour and
Social Security (MTSS). These regulations apply both to companies operating under the Foreign
Investment Law and the free trade zone legislation.
Companies operating in the free trade zones can hire foreigners for the technical and top management
positions. However, they must hire permanent residents through the single Cuban employing entity
established for each zone. If a joint venture is entirely foreign owned, an employing agency will be
designated.
LABELLING AND MARKING REQUIREMENTS
The National Standards Office sets regulations for the labelling and packaging of consumer goods. These
standards are similar to those present in other countries. The main difference lies in the fact that
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regulations are enforced at the port of entry rather than at the store shelf. For example, for the
registration of samples at the National Institute of Health and Nutrition, these must comply with
labelling requirements prior to the moment of import. Cuba follows the practices of the major
international standards organisations, including the International Standards Organisation (ISO) and
International Legal Metrology Organisation (ILMO). Pre-packaged food products, for example, are
subject to labelling requirements which are covered by the CODEX Standards. These regulations state
that the label should identify the name of the product, country of origin, commercial brand and the
name and address of the producer, as well as weight, ingredients and additives. The label must also
include production and expiry dates as well as instructions for use and preservation. It is advisable the
labels be in Spanish.
ADVERTISING AND SALES PROMOTION
Forms of advertising are limited in Cuba. Television, radio stations and daily newspapers do not offer
this service (with few exceptions). An option is available in scarce commercial magazines and directories.
Sponsoring of sports or cultural events is the most common form of advertising for companies
established in Cuba. Internet usage is limited but has increased considerably in recent years.
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EXPORT PROCEDURES
EXPORTING FROM TRINIDAD & TOBAGO
Exporting successfully requires a great deal of pre-planning. Before even starting the export process,
companies must assess their export readiness, build an export plan, research and select their target
market and create an export marketing plan. They must also determine the best methods of delivering a
product or service to the target market inclusive of the most relevant entry strategies, in addition to
developing a sound financial plan and understanding the key legal aspects of international trade.
When identifying the goods you wish to export, determine whether they are controlled, prohibited or
regulated and if a permit, licence or certificate to export is required. The goods need to be allowed to be
exported from Trinidad and Tobago and allowed entry into the importing country.
It is also important to identify accurately the country of origin of the goods, ensuring that they comply
with the rules of origin in the trade agreement so that you may access the preferential tariffs.
The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for
approving all exports emanating from Trinidad and Tobago.
To export commercial goods, the exporter must hire a customs broker to fill out the required
documentation. Commercial and non-commercial exporters must also perform the following actions:

Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your broker;

Submit the C82 Form along with other required documents (see below) to a customs officer at a
Customs and Excise office for signature;

Take the signed C82 Form and the goods to be exported to the Import/Export station from
which the goods are to be exported.
The basic documents required for exporting are as follows:

Invoice showing the price paid locally;

Export licence, for those items that are on the Consolidated List of Licensable Exports below;

Certificate of origin.
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The Consolidated List of Licensable Exports
The following items can only be exported with an Export Licence:
1. Coral and other aquatic life found in the country’s marine environment including coral, turtle,
turtle eggs, aquarium fish, fish, molluscs, lobster, shrimp, crabs and other aquatic invertebrates.
2. Works of art, artefacts, and archaeological findings.
3. Clays, crushed limestone, boulders, sand, gravel, plastering sand, porcellanite, argillite, oil sand.
4. All plant species including tissue culture and other propagation material of these that are listed
in the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES).
5. Embryos and artificial insemination material.
6. All animal species listed in the CITES, as well as all endangered species of Trinidad and Tobago,
whether live specimens, their parts, or derivatives, that is mammals, birds, reptiles, amphibians,
fish or invertebrate.
7. Non-Ferrous Metal Scrap and Ores.
8. Human Organs.
9. Explosives, firearms, ammunition and ordnance.
10. Items which are subsidised either directly or indirectly – rice, gasoline, kerosene, liquid
petroleum gas.
11. Electro-medical or medical or medical electronic equipment.
12. Duty-free capital goods e.g. mining, construction and other industrial machinery.
13. Agricultural machinery including imported fishing boats and their engines.
(Source: The Ministry of Finance & the Economy: www.finance.gov.tt)
According to the World Bank’s “Doing Business 2013” series, “Economy Profile: Trinidad and Tobago”,
the average time for exporting a standard shipment of goods from Trinidad and Tobago is 11 days at an
average cost of US$843 per 20-foot container and requires in general five documents. These documents
include a bill of lading, a CARICOM invoice or Certificate of Origin, a commercial invoice, customs export
declaration form (Form C82) and a packing list. Other average costs and times for export procedures are
as follows:

Documents preparation: US$253 over 5 days

Customs clearance and technical control: US$205 over 1 day

Ports and terminal handling: US$160 over 2 days

Inland transportation and handling: US$225 over 3 days
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
The total average time and costs for these procedures is $843 over 11 days.
The report also indicated that Trinidad and Tobago had reduced the time to export by its recent launch
of the AYSCUDA World electronic data interchange system and simplifying the process for obtaining a
certificate of origin.
IMPORT CONTROLS IN CUBA
The Tariff System of the Republic is defined in Decree Law 124 of 1990. Decree Law 162 of 1996 sets out
the functions and operations of the customs system. Decree Law 124 and its regulations define
requirements for import permits, establish import tariffs and set out procedures for customs clearance.
IMPORT PERMITS
Goods can only be imported into Cuba by government entities and joint ventures holding permits for the
goods in question. Agents and intermediaries can handle goods on consignment for importers holding a
licence, but they cannot import on their own account and they cannot conduct distribution operations.
Joint ventures with foreign participation will generally obtain their import permits through their Cuban
partners but, in order to be able to import a given product, this should have been agreed during
negotiations when seeking for approval of the joint venture agreement.
Representative offices of foreign companies are allowed but permits must be issued by the Camara de
Comercio de la Republica de Cuba (Cuban Chamber of Commerce). The application form requires the
status of the foreign company, its technical capabilities and financial stability. Foreign documents must
be legalised in Cuba. If the office will be a subsidiary, the representative must be a foreign citizen.
Applications may be approved or denied within 60 working days. Licences are applicable for five years
and renewable in three-year terms. A licence to operate a representative office does not allow the
company to carry on wholesale of retail distribution. The company may be the consignee of an import
shipment but it cannot take possession directly and it must hire an agent to physically handle the goods.
Registration does permit marketing an after-sales service.
Approved Cuban entities can be registered as an agent of a foreign company without the requirement of
a minimum three-year business relationship. A Cuban agent can be the consignee of an import shipment
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only if it is authorised as an importer, which requires the approval of the Ministerio del Comercio
Exterior (Ministry of Foreign Trade) as well as registration with the Camara (Chamber).
Minimum requirements for registration:

Three years’ experience selling to Cuba of at least US$500,000 annually;

Minimum paid up capital of US$50,000;

A business track record of at least five years.
It must be noted that no wholesale or retail selling is allowed by the company as well as no distribution
of the product.
(Sources: Doing Business Guide: Cuba – UK Trade & Investment, USDA GAIN Report)
REGISTRATION PROCESS
While product registration is required, the cost of this exercise depends on the type of product. In order
to register a product with a Cuban state agency, the company seeking the registration must be
accredited with the Ministry of Health. This process is traditionally undertaken by the import companies.
When registering as a new supplier with a Cuban State Enterprise, the basic documents requested from
foreign suppliers include:

Articles of Association / Bye Laws (Escritura de Constitucion);

Certificate of Incorporation (Certificacion del Registro Mercantil);

Power of Attorney (Poder para obligaciones contratuales);

Bank reference or Guarantee (Aval o Referencia Bancaria).
Nevertheless, each company may have a specific registration form to be filled out by the potential
supplier requiring additional information. During the negotiation process, companies from Trinidad and
Tobago should request the specific requirements from the Cuban entity with which they are attempting
to conduct business. The Trade Facilitation Office in Cuba assists in securing this type of information and
already has a compilation of requirements from several of the major enterprises.
Official translations of the documents highlighted above and any other(s) indicated by the respective
Cuban entity should be secured. For the translation to be valid, it must be prepared by a translator who
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is recognised by the Ministry of Foreign Affairs of Trinidad and Tobago. COSTAATT is the recommended
body to perform this service.
In many instances these documents must be certified by a Notary Public registered with the Supreme
Court before presentation of the documents to the Ministry of Foreign Affairs. The need for notarisation
varies depending on the type of document. The Consular & Information Section at this Ministry should
be contacted to ascertain which documents require certification.
Once translated and certified, the documents should be legalised by the Ministry of Foreign Affairs. The
process is handled by the Consular & Information Section. In the case of Cuba, Letters of Authentication
are being issued instead of the Apostille Stamp.
Once the process at the Ministry is completed, the documents are passed to the Cuban Embassy in
Trinidad and Tobago for legalisation. This concludes the T&T leg of the legalisation process.
It should be noted that this registration process, which serves as a general guide, is compulsory for
conducting business with Cuban State Enterprises. Since the overall process could be time consuming,
many companies find it prudent to commence the process in tandem with their negotiations with the
Cuban Enterprises. The advantage of this approach is that once an order is obtained or a contract
signed, the transaction is not delayed due to lack of having the required documents. Moreover,
registration as a supplier is a prerequisite for foreign companies to be incorporated into the Cuban
Enterprise’s Circulation List for Tender Opportunities.
Product registration cost is determined by the type of product and whether it is considered low,
medium or high risk, as follows, in CUC currency:

Milk and milk products and meat and meat products range from $30 - $80;

Fruits and vegetables: $30;

Cereals and grains: $30 - $80;

Beverages, including non-alcoholic, wines, beers: $30 - $80;

Oils and fats: $80;

Cocoa and chocolate products: $50 - $70;

Coffee and derivatives: $30 - $50;
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
Other foodstuffs (pizzas, condiments, sauces, mayonnaise, etc.): $30 - $70;

Cosmetics: $30 - $50;

Games / toys: $30 - $50
For all products, renewal fees cost 50% of the original cost and modification fees cost 25%.
(Source: Trade Facilitation Office in Cuba: [email protected])
CUSTOMS PROCEDURES
Approved customs brokers must handle all customs formalities. Larger importers can arrange for their
staff to be trained and certified and pay a monthly fee to operate internal agencies. Some overseas
logistics companies have co-operative agreements with Cuban customs brokers. This means that
documents can be prepared overseas and then validated by the Cuban broker.
Precise documentation and full compliance with all regulations is essential when exporting products to
Cuba. Seemingly minor discrepancies can lead to confiscation of improperly imported goods. Although
compliance with these regulations is the responsibility of the importer or agent handling consignment
shipments, careful documentation on the part of the shipper will reduce errors and delays. Moreover,
since labelling, sanitary, phytosanitary and product safety standards regulations are enforced at the port
of entry, as a practical matter, the burden of compliance rests with the overseas exporter.
DOCUMENTATION - SHIPPING MARKS AND EXPORT DOCUMENTS
Each order from the State should give a list of the necessary shipping marks and documents. The
following list is given for guidance but should not be taken as definitive.

All weights, net, gross and legal, should be clearly marked on cases and should be in the metric
system;

There is special legislation concerning the marking of bottle labels, medicines, foodstuffs, etc.,
and exporters of such goods should preferably consult the buyer on this point.
Documents normally required are:

A complete sets of bills of lading, clean on board. Those affecting livestock require legalisation
by the Cuban Consulate;

Commercial invoices, three (3) copies in Spanish, values in pound sterling with the original legalised
by the Cuban Consul at point of origin;
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
Certificate of quality or purity;

Certificate of origin made out by the seller;

Packing list.
All documents should be made out in the name of the buying agency concerned and bear its shipping
mark. Exporters should exercise the requisite care when completing transactions. Letters of Credit
issued by credible international banks should be used at all times.
Exporters/importers should take note of prohibited or highly restricted imports, which include:

Pornographic or obscene material;

Lottery or raffle tickets;

Counterfeit money, bank notes or Cuban currency;

Condensed milk;

Food products not conforming to food laws;

Products made in prisons or by forced labour;

Artificial or altered wine that is not medicinal;

Unregistered pharmaceutical products and medicines;

Heroin-derived drugs and narcotics

Anaesthetics;

“Preservalina” and similar products used as a food preservative

Any products considered harmful to the general wellbeing of the nation.
To summarise the import procedures:

The customs clearance process commences with the submission of a customs merchandise
declaration. This declaration must be accompanied by at least the following documents
translated into Spanish:
o
Shipping documents;
o
Commercial invoice;
o
Packing list (original)
o
Certificate of origin;
o
Phytosanitary and fumigation certificates in the case of wood.
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In some cases, importers are allowed to submit Customs declarations in advance of shipment arrivals
and make temporary or incomplete declarations when all information necessary for clearance is not
readily available. However, a commitment to submit a complete declaration and all the remaining
documentation is required.
Shipments are inspected and cleared at three different levels. At the first level, merchandise goes
through any one of three channels: green, orange or red. In the green channel, neither documentation
nor merchandise is inspected. In the orange channel, the documents are reviewed to determine if a
physical inspection is required. In the red channel, clearance is granted only after the merchandise has
been physically inspected. In the second clearance level, the documentation is reviewed again to
determine whether any errors in classification, valuation or duty assessment may exist. The third and
final level of clearance involves post clearance inspections, which may take place up to five years after
the merchandise is imported into the country.
Customs clearance time may vary depending on the volume of cargo entering Cuba at any given time
and the number of documents required for specific merchandise. The entire process may take one to
three weeks depending on the effectiveness of the customs broker. Inaccurate information in the bill of
lading and pertaining to the consignee may delay the clearance process.
Decisions by Customs officials to reject merchandise may be appealed. Depending on the grounds for
rejection, the head of the Customs Department or the Minister of Health will have the final say on
whether or not the merchandise can be imported into the country.
(Sources: Doing Business Guide: Cuba – UK Trade & Investment, USDA GAIN Report)
TRANSLATION SERVICES
Commercial documents provided by the exporters or their representatives are often required in Spanish
or, at the very least, must be accompanied by an official Spanish translation. One of the official
translation and interpreting agencies for the Government is COSTAAT (College of Science, Technology &
Applied Arts of Trinidad and Tobago).
When translating documents from English to Spanish, the cost for general correspondence is TT$150 +
VAT per page while the cost of technical correspondence (e.g. invoices, commercial documents, reports,
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product descriptions, etc.) is normally TT$175 + VAT per page. One page is generally considered to
contain a maximum of 200 words. Should exporters wish to obtain soft copies of documents, an
additional 10% fee on the total cost will apply.
(Source: Translation & Interpreting Services, COSTAATT)
SHIPPING INFORMATION
Goods from Trinidad and Tobago can be shipped from Port of Spain to La Habana, Cuba via Kingston,
Jamaica within 10 days and to Santiago de Cuba in 21 days. Using the Point Lisas port, goods can be
shipped to La Habana within 12 – 15 days via Kingston, Jamaica.
(Sources: Linescape.com and JOCSailings.com)
It should be noted that schedules are subject to change and the cost of shipping often fluctuates
alongside the price of oil.
EXPORTERS’ RESOURCE: THE TRADE FACILITATION OFFICE
Exporters interested in exploring business and trade opportunities in Cuba should contact the Trade
Facilitation Office (TFO) whose aim is to promote trade and investment between Trinidad and Tobago
and Cuba. It is designed to function as a conduit between the manufacturers and service providers of
Trinidad and Tobago and Cuban state companies authorised to import and trade on the Cuban market.
The TFO assists by identifying opportunities for exporters in the Cuban market, in particular advising our
exporters of the products which can be exported to Cuba and establishing critical links with the relevant
state companies. It also conducts market intelligence including import and export requirements and
standards; showcases our products in the Cuban market and provides critical business support services
with a view to resolving problems expeditiously.
The TFO is based at the Miramar Trade Centre in Havana, Cuba. Its office telephone number is (537) 204
4242 and email contact: [email protected] .
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