Caribbean Export OUTLOOK 2016

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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