Exporting to Cuba

About this guide

The Canadian Trade Commissioner Service (TCS) in Cuba helps hundreds of Canadian companies each year in navigating the Cuban market. Drawing on our extensive in market experience, we have developed this guide to help new exporters. We recommend that you use this guide as part of the necessary research to determine if the Cuban market is the right target for your company.

About the Cuban market

Cuba is an important export market for Canada and over the past decade has remained one of our top sixty export markets. The country imports the vast majority of its needs, with over 80% of goods being imported. Cuba is a price sensitive market, however given limited financing options the decision to import is not necessarily based solely on price.

Cuba is a complex market and not recommended for first-time exporters. Long timelines, bureaucratic processes, and securing payments can all be significant challenges. Additionally, a chronic liquidity crisis makes doing business in Cuba difficult and risky. Companies seeking quick sales may be disappointed. The three "P"s to doing business in Cuba are: patience, perseverance, and partnership. A strong diversification strategy and long-term objectives are essential for achieving success.

Step-by-step guide to exporting to Cuba

1. Research the market

Cuba is a unique export destinations and thorough research is essential prior to pursuing the market. As a strongly centralized economy based on socialist principles, there are significant differences that set the market apart, even as new opportunities open up for the private sector.

Historically dominated by state-owned companies, whose role continues to be paramount in the country's economy, Cuba began to undertake some market liberalization in 2011, fostering private sector development. Since 2021, the Cuban government has allowed small- and medium-sized enterprises (SMEs) to import through state-owned importers. Compared to state-owned companies, these private businesses have greater autonomy over what products and from which suppliers they source.

Canada and Cuba have a long history of commercial relations. Cuban buyers often prioritize Canadian suppliers, and though decisions are influenced by price, availability of financing, and the strength of the relationship are also important considerations.

2. Talk to a trade commissioner

If you are relatively new to exporting, you may wish to speak with a Trade Commissioner based in one of our regional offices across Canada. They can help you prepare to export and find the right market for your business.

If you feel you are ready to pursue opportunities in the Cuban market, the TCS in Havana can advise on specific market conditions, challenges and opportunities, and identify key potential buyers. They can also give you a feel for the competition active in Cuba.

3. Talk to your bank about Cuba

In Cuba, expect payment terms of 360 to 720 days on unconfirmed letters of credit. Export Development Canada (EDC) in Cuba is active in the market, however their mechanisms to support Canadian exporters in Cuba are limited. You should consult EDC as well to your bank about your financial needs.

Without bank or EDC involvement, Canadian exporters to Cuba must be prepared to assume significant payment risk. Accurately assess if, when, and how you will be paid for your goods or services. If your company cannot assume this risk, reconsider pursuing this market.

4. Understand export controls

Do I need an export permit?

The Government of Canada and Canadian exporters share a collective responsibility to ensure that exports of controlled goods and technology are conducted lawfully and, in a manner, consistent with Canada's national interests and international obligations.

Export permits can be issued to any resident of Canada to export goods and technology included on the Export Control List (ECL).

Please review Canada's Export and brokering controls handbook to learn more.

Canada's export controls on U.S.-origin goods and technology

Export controls are generally defined with respect to technical characteristics, irrespective of the country of manufacture of an item. However, Canada's ECL Item 5400 controls exports of the following: All goods and technology of U.S.-origin, unless they are included elsewhere in the ECL, whether in bond or cleared by Canada Border Services Agency, other than goods or technology that have been further processed or manufactured outside the U.S. so as to result in a substantial change in value, form or use of the goods or technology or in the production of new goods or technology.

Exports of ECL Item 5400 goods and technology to Cuba require individual export permits. Please note that any items that are controlled under ITAR will also require U.S. re-export authorization as part of their supporting documentation.

For the purpose of ECL item 5400, the clause "all goods and technology of U.S.-origin" means items that are manufactured/created in the U.S. "Origin" does not mean the country from which the items were last exported to Canada.

Exporters are advised to apply for an export permit if there is any doubt about the application of Item 5400 to their exports. Exporters will be notified in writing if their items are or are not subject to export controls.

Details on Canadian export controls on U.S.-origin goods and technology can be found in section D4 of the Export and brokering controls handbook.

Understand U.S. export controls requirements

The U.S. Government imposes re-transfer conditions on certain U.S.-origin goods and technology even after they have been exported from the U.S. Under U.S. law, U.S. export controls may apply extra-territorially, which means that they apply even after the goods or technology in question are outside the U.S. and out of the possession of U.S. persons or entities.

The U.S. has two main export controls systems:

As a condition of authorizing exports of certain goods or technology to a Canadian company, the U.S. Government may require the Canadian company to obtain explicit re-export authorization before exporting the items from Canada to a third destination.

When certain goods or technology are exported from the U.S., invoices and shipping documents should contain a destination control statement which forbids, for example, further transfers to any country other than the specified destination "without the prior written approval of the U.S. Department of State" [ITAR Section 123.9(b)] or which prohibits "diversion contrary to U.S. law" (EAR Section 358.6).

The de minimis rule excepts anything with less than 10% US content by value. If your product or service contains more than 10% U.S. content, Canadian exporters are advised to contact their U.S. suppliers or the U.S. Government for more information about any required re-export authorizations.

5. Talk to potential buyers

Once you have determined that there is a market for your products or services and you are comfortable with the risk associated with the Cuban market, the next step is to reach out to potential buyers. The TCS in Havana can help you connect with potential buyers.

The business language in Cuba is Spanish. Therefore, your first contact with a potential buyer should be in Spanish, as messages in other languages frequently go unanswered. Assume that your potential buyers do not speak English or French. Some purchasing agents do speak English, but it is uncommon to find a French speaker.

6. Visit the market

To meet with Cuban government officials or state-owned company representatives, it is necessary to secure a business visa in advance from a Cuban Embassy or Consulate, which can take up to 3 weeks to process. Officials are not authorized to meet with foreigners on a tourist visa.

Cuba is a popular tourist destination, especially in winter, so book your transportation and hotel well in advance. If you do not speak Spanish, consider hiring an interpreter to ensure efficient communication.

Personal contact is an essential part of the Cuban business relationship. Business decisions rely on personal trust built through face-to-face meetings, not just price and financing terms.

At least one visit is necessary to start developing business, and as this process usually takes over a year, plan for multiple visits. Once established, plan for at least one visit per year to maintain ties. The Havana International Fair (FIHAV), held annually in early November, is an excellent venue for establishing and maintaining business relationships in Cuba.

7. Register as an approved vendor

Once you have clear indication of interest from a Cuban importer or buyer, the next step is to register your company as an authorized supplier. A Cuban purchasing agency cannot formally request or accept quotes until your company is registered.

The registration process is time-consuming but straightforward. You will be invited to register by the purchasing agency and asked to complete an application form with general company information and background documents. These documents, which vary by agency, typically include:

• your business license
• a letter of good standing from your bank
• a CV of your designated business development lead for Cuba
• financial statements
• the company's shareholder agreement

It is mandatory to have these documents translated to Spanish and get them inspected and stamped by the Embassy of Cuba. You may also be asked to have the documents legalized or notarized by a public notary in Cuba or Canada. There is no fee to register, but you will incur costs for translation and stamping fees.

Once all the required documents are submitted, it typically takes between 3-4 months to complete the registration process but can vary depending on the importer's urgency. The documentation is first analysed by the relevant purchasing agency and finally transmitted to the Cuban Ministry of Foreign Trade and Foreign Investment (MINCEX) which is responsible for issuing the "Approved Vendor" registration number. Registering with additional purchasing agencies in the future is simpler once you have a registration number.

If you have not had business activity for a period of two years your registration expires, and the process must begin from zero.

8. Receive request for quotes

Congratulations! You are now a registered vendor and can receive formal requests for quotes. Cuban purchasing agencies only issue requests for quotes on an invitation basis, as public tendering is rare.

Proposals must be complete and meet all essential requirements, as incomplete bids are typically eliminated automatically. Since requests for quotes are by invitation only to registered vendors, you are on a shortlist of competing companies, making it crucial to avoid elimination at this stage over technicalities.

9. Negotiate and win contracts

Negotiating is a fluid process. Be prepared to show flexibility in some areas but to be firm in areas that are essential to your business. Remember that business development in Cuba is lengthy and complex and once in contract negotiations you are likely up against a very small pool of competitors.

10. Receive payment

A sale is only successful once payment is received. While Cuba has a history of honoring payments, significant issues with late payments have arisen over the last decade, often leading to requests to renegotiate payment dates.

Be prepared for possible payment delays. Avoid putting your company in a difficult position by delivering goods or services that could cause financial distress if payments are late or not received.

11. Tell us about your success

Your success is our success. If we have been assisting you, we greatly appreciate hearing about your sales. We treat all interactions as commercially confidential. Let us celebrate your accomplishments with you!

The Trade Commissioner Service in Havana

For more information on doing business in Cuba, please contact:

Embassy of Canada
Calle 30 No.518 esq. 7ma
Miramar, La Habana

havantd@international.gc.ca
+53-7-204-2516 extension 3893386