Cuban Line of Credit

Set Sights on Cuba

If you are seeking new export markets, why not consider Cuba?

EXIM Bank has made available a Line of Credit of CAN $12 Million through Banco Nacional de Cuba to facilitate the importation of Jamaican goods into Cuba – up to 100% of the value of the invoice.

Eligibility Requirements

Export Goods Goods must be of Jamaican origin and not merely re-packaged for export. They must be on the list of eligible goods agreed between Jamaica and Cuba and must satisfy the 35% local value added content stipulated by the EXIM Bank and evidenced by a Certificate of Origin (Form A) to be issued by Jamaica Trade & Invest (formerly known as JAMPRO). Alternately, they must meet the criteria for eligibility for the Caricom Market and be certified by Jamaica Trade & Invest.

Steps to Accessing the Line

Once the Cuban importer and the Jamaican exporter agree on the terms of sale, a pro forma invoice is issued to the Cuban importer by the Jamaican exporter. A commercial contract between buyer and seller is then signed in evidence of this arrangement. ALL invoices MUST BE STATED in Canadian Dollars and shipping terms of ClF, FOB, C&F are all acceptable.
The Cuban importer takes the pro forma invoice and the commercial contract to the Banco Nacional de Cuba and requests that the transaction be financed under the Line of Credit made available by the EXIM Bank.
Banco Nacional de Cuba examines the documents, and if satisfied that the goods meet the eligibility, the EXIM Bank is so advised and Banco Nacional will request that a Letter of Credit be opened in favour of the Jamaican exporter.
EXIM Bank thereafter advises the Jamaican exporter of the opening of the Letter of Credit in his favour. All details pertaining to the Letter of Credit will be communicated to the Jamaican exporter, e.g. name of applicant, amount, expiry date and documents to be presented.
Once the Jamaican exporter meets the terms of the Letter of Credit, shipping documents are presented to the EXIM Bank. If all documentation is in order, the EXIM Bank pays the Jamaican exporter at sight according to the instructions. Payments are made in Canadian dollars or its Jamaican equivalent. There is no waiting period for the Jamaican exporter.

EXIM Bank will be repaid by Banco Nacional de Cuba under terms agreed between both institutions and not from individual Cuban importers. The Line of Credit is an institution to institution arrangement.

Required Documents

Commercial Invoice
Bill of Lading/Airway Bill
Certificate/Policy of Insurance
Customs Certificate
Certificate of Origin

Other documents may be agreed between buyer and seller e.g. Packing List.

Costs to the Jamaican Exporter

The cost to the Jamaican exporter is minimal and it is related to the handling of the Letter of Credit e.g. amendment fees, and providing the necessary documentation e.g. Certificate of Origin.

List of Eligible Goods

Ammonium Hydroxide
Animal Feed Ingredients
Animal Feed, Concentrates and Premixes
Animal Breeding and Fattening Stock
Baking Powder, Baking Soda
Building Products
Chemicals
Consumer Durables -Shoes, Boots
Edible Consumer non-durables (Processed food - Brewed products)
Fertilizers
Frozen Broiler Chickens & Chicken Parts
Fresh Broiler Chicken & Parts
Fresh Cuts of Bovine Animals
Frozen Cuts of Bovine Animals
Industrial Paints
Industrial Cleaning Chemicals and compounds
Industrial Glues for Packing and
Labeling
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
Transformers

Adding Products to the List of Eligible Goods

Interested applicants may make a formal request in writing to the EXIM Bank to have products added to the above list of currently eligible goods. The EXIM Bank will in turn seek approval from the relevant Cuban Authorities.

Schedule of fees