SET SIGHTS IN CUBA
IF YOU ARE SEEKING NEW EXPORT MARKETS, WHY NOT CONSIDER CUBA? IT’S A LARGE AND RELATIVELY UNTAPPED MARKET IN CLOSE PROXIMITY TO JAMAICA. AND NOW WITH EXIM BANK’S CUBAN LINE OF CREDIT, A FINANCIAL PRODUCT SPECIFICALLY DESIGNED TO FACILITATE TRADE BETWEEN JAMAICAN EXPORTERS AND CUBAN BUSINESSES, YOU CAN BE SURE THAT YOUR WILL GET PAID ON-TIME. THE CUBAN LINE OF CREDIT IS FACILITATED BY AND EXCLUSIVE INSTITUTIONAL AGREEMENT BETWEEN BANCO NACIONAL DE CUBA AND EXIM BANK.
Who is eligible
If you are a Jamaican exporter to Cuba and your good are of Jamaican origin and not simply re-packaged for export, then you may qualify to access the Line of Credit. EXIM Banks’s Cuban Line of Credit facilitates transactions up to $12 million Canadian Dollars.
Good exported to Cuba:
• Must be included on the list of approved goods agreed between Jamaica and Cuba
• Satisfy the 35% local value-added content stipulated by the EXIM Bank* or meet the eligibility criteria for the Caricom Market, certified by the Jamaica Trade Board.
*Note: Exporters must present a Certificate of Origin (Form A) issued by the Jamaica Trade Board.
How does it work?
Once you have a firm contract with a Cuban buyer, that buyer will approach Banco Nacional de Cuba to establish a letter of credit in your favour through EXIM Bank.
EXIM Bank will pay you 100% of your invoice value upon receipt of the pertinent shipping documents, provided that you have met all the requirements stipulated under the Letter of Credit. Banco Nacional de Cuba then repays the EXIM Bank under terms agreed between both institutions. Be sure to carefully vet the Letter of Credit to prevent unnecessary delays.
Accessing the facility
If you are thinking about exporting to Cuba, we encourage your to visit EXIM Bank to learn more about our Cuban Line of Credit. Until then however, here some simple steps to guide you through the process.
1. You negotiate terms of sale with the Cuban importer.
2. You then supply the Cuban importer with a pro-forma invoice, under their agreed terms of sale. All invoices must be stated in Canadian Dollars. Shipping terms of CIF, FOB and C&F are all acceptable.
3. You and the Cuban importer both sign a commercial Contract, in evidence of this agreement.
4. The Cuban importer submits both the pro-forma invoice and the commercial Contract to Banco Nacional de Cuba, and formal requests that the transaction be financed through the EXIM Bank Line of Credit.
5. Upon the successful completion of its due diligence, Banco Nacional de Cuba requests EXIM Bank to open a letter of Credit in your favour. The letter of Credit will finance 100% of the invoice value.
6. EXIM Bank advises the you of the opening of the Letter of Credit.
7. You must meet all the terms of the Letter of Credit and present shipping documents* to EXIM Bank.
8. If documents are in order, EXIM Bank will pay you at sight, according to instructions
*Note: Standard documents required under a Letter of Credit include among others Commercial Invoice Bill of Lading/Airway Bill; Certificate of Insurance; Customs Certificate; Certificate of Origin and any other documents that may be agreed between buyer and seller – e.g. packing list
List of Eligible Goods
• Ammonium Hydroxide
• Animal Feed Ingredients, Concentrates and Premixes
• Animal Breeding and Fattening Stock
• Baking Powder, Baking Soda
• Building Products
• Carbonated Soft Drinks and Bottled Water in PETE Plastic Bottles
• Consumer Durables -Shoes, Boots
• Disposable Plastic Products (e.g bags, cups, plates, forks, spoons, foam plates)
• Edible Consumer non-durables (Processed food – Brewed products)
• Fresh and Frozen Broiler Chickens and Chicken Parts
• Fresh and Frozen Cuts of Bovine Animals
• Industrial Paints
• Industrial Cleaning Chemicals and Compounds
• Industrial Glues for Packing and Labelling
• Liquid Detergents
• Leather Goods
• Leisure Wear
• Lights, Spotlights, Starter Sockets, Lamps, Acrylic Screens, Other parts and accessories for lighting
• Paper Products
• Pharmaceuticals including Disinfectants, Sanitizers and Pesticides
• Poultry Equipment inclusive of Replacement parts
• Scrap Metal
• Sleep Products
• Water Boots (PVC)
Not on the list of Eligible Goods?
If your goods do not currently appear on the approved list, simply send your request in writing to EXIM Bank to have it included and we will seek approval from the Cuban authorities on your behalf.