Caribbean Export OUTLOOK 2016 - 2017

TRADE & EXPORT HOT SPOTS

Quick Reference The state only does business with established companies that have a proven track record and, ideally, some foreignmarket experience. Foreign companies are also expected to establish a substantial trade relationship with Cuba for at least three years before being allowed to set up a presence in the island. Individual entrepreneurs or newly-created companies specifically targeting the Cuban market are not considered. However, approved Cuban entities can be registered as an agent of a foreign company that does not meet that requirement. In this case, a Cuban agent that is authorised as an importer by the Ministerio del Comercio Exterior (Ministry of Foreign Trade) and has registration with the Cámara de Comercio (Chamber of Commerce) would be the consignee of an import shipment. While these agents and intermediaries can handle goods on consignment for importers holding a licence, they cannot import on their own accord and cannot conduct distribution operations. Joint ventures with foreign participation, meantime, will generally obtain their import permits through their Cuban partners.

The cosmetics manufacturing company, established in December 2002 by a group of chemistry professionals in the Spanish-speaking DominicanRepublic, has been exporting haircare and personal care products to Cuba for the past two years. TheDominicanRepublic’s proximity toCuba, the two having similar markets for hair products, and the fact that residents of both countries speak the samelanguage,provedtobeanadvantageforKapril. “The reason for choosing Cuba as a market is that we share similar ethnic groups, being nearby islands and therefore similar characteristics. Also, we share the same climate of the Caribbean region and our products are designedwith a ‘tropicalised’ formula,” says Chief Executive Officer Julia Jimenez, who is also the first Vice-President of the Association of Small andMediumCosmetics Manufacturers of the Dominican Republic (APYMEFAC). But, just like Baron Foods, Kapril had to go through the long processes required to comply with the country’s import rules and regulations,

and they both discovered, having an established product was not enough to break into themarket.

“Food and drug regulations formpart of the rigid enforcements. Our products had to be submitted for testing and evaluation via their laboratories,” the Baron CEO says. Further explaining the process, Ramjattan added: “Firstly, your products must be HACCP certified. Secondly, you have to attend the yearly trade showHavana International Fair (FIHAV). Once your products are accepted, they have to be sent for evaluation at the laboratory. Once the products were approved we had to select one or more government agencies to be the distributor. Finally, selling terms are finalisedwith the distributor.” Similarly, Kapril went through the process of complying with all the necessary regulations. FIHAV was vital to both companies making headway into Cuba. The annual event is Cuba’s largest and most important trade fair. It is attended byseveralkeyCubandecisionmakersandpurchasers who negotiate contracts with foreign suppliers, learn about new technologies and products, meet new exporters and strengthen their relationships

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