ZED Mariel: Open to the World Contents Cuba ZED Mariel
zed www.zedmariel.com mariel zona especial de desarrollo mariel open to the world
november 2014 ZED Mariel: Open to the World contents Cuba ZED Mariel
1 Why Cuba? 13 ZED Mariel: The facts
2 The future Hub to the Americas 14 Artemisa province
3 Respected globally 15 Zoning: Sector A
4 Foreign trade figures 16 Priority sectors of interest
5 Foreign direct investment 17 TC Mariel: A regional logistics hub 6 Economic changes 18 The legal framework 7 Infrastructure 19 Fiscal rules 8 Social indicators 20 Administrative procedures 9 Havana This presentation has been prepared by Caribbean 21 FAQs Professional Services Ltd in cooperation with the Oficina de la Zona Especial de Desarrollo Mariel. Its purpose is 10 Biotechnology & pharmaceutical purely informative and is intended to provide a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional 11 Tourism advice. We advise that the investors and, in general, the readers who make use of the document consult their own legal advisors and professional consultants regarding investment in Cuba. Caribbean Professional Services Ltd 12 Time for a change to the US accepts no responsibility for any loss arising from any blockade against Cuba action taken or not taken by anyone using this material. All photos are subject to copyright © ZED Mariel: Open to the World 1 ‘Everyone dreamed of Cuba’ A strategic location in the heart of the Over 25 years working with foreign Miguel Barnet Caribbean, ideally located to become investors since 1989. The new Foreign the Hub to the Americas. Investment Law (118/2014) has reaffirmed Cuba’s interest in increasing foreign participation within the Good political, economic and trading economy. 1. relationships within the region and globally. Developed infrastructure in transportation, communication and Why A stable economic and political energy. Ongoing investment programs Cuba? framework. in each area. In 2013 Transparency International A highly educated and skilled th ranked Cuba 5 within Latin America workforce. World-class universities and & the Caribbean for good governance research institutions. (low corruption) and 63rd out of 177 countries worldwide. A strong social fabric of society and social cohesion. In 2013 the UNDP ranked Cuba 5th within Latin America and 59th out of 187 nations on its Human A level of culture, history, architecture Development Index (HDI) that and sites of natural beauty unrivalled measures life expectancy, educational within the region. attainment and adjusted real income.
Havana’s historic Morro Castle keeps guard over the bay as the sun goes down ZED Mariel: Open to the World 2
On May 9-10, 2014 Havana hosted the opening competition of the Red Bull Cliff Diving World Series, 2014. The event, won by Brit Blake Aldridge, served to highlight Havana’s ability and appeal in hosting global sporting events ZED Mariel: Open to the World 3
TC Mariel, (the newly opened Havana, a UNESCO World Heritage container terminal), is well positioned Site, excels in the region for its 2. on several major shipping routes to unrivalled quality of life, enhanced by develop as a regional logistics hub the richness of its culture, its colonial over the next five years. architecture and its booming social The Hub life, free from the social problems, In the longer term, following the lifting pollution and heavy traffic of other to the of the Torricelli Act, TC Mariel is ideally neighboring countries. situated to develop as major transshipment location especially Cuba has developed a world-class Americas? between China and the Eastern Coast/ marina in Varadero with berths for Gulf Coast, US. over 1,000 boats. Several other marina projects are under development. The ‘Cuba has a strategic Some European airlines already use Gulf Stream, which passes close to location in the heart Havana’s airport as a cargo hub for Cuba’s northern coast, sees a massive of the Caribbean Latin America. boating traffic each year. – ideally located to become the hub to Cuba has a much larger domestic Cuba is developing various cruise ship terminals including Havana and the Americas’ market than other countries within the Caribbean region—this makes it Cienfuegos. attractive for companies to use the island as a platform for exports within Cuba attracts nearly three million the area. In 2013 Cuba imported tourists each year arriving at one of merchandise goods of US$ 14.7 billion its 10 international airports. Over 20 and exported goods of US$ 5.3 billion. major international airlines fly into Cuba from more than 25 countries offering a range of options for business and vacation travelers. Havana’s historic Fortaleza de la Cabaña is the site of a nightly closing of the gates ceremony at 9pm ZED Mariel: Open to the World 4
Cuba as seen from an orbiting satellite 35,000 km above Earth. The Florida keys appear at the top showing their proximity to Cuba ZED Mariel: Open to the World 5
Cuba has won widespread plaudits for Cuba held the Presidency of the its leading role in responding to global Community of Latin American and 3. health crises and natural disasters Caribbean States (CELAC) in 2013 and including West Africa (2014), Haiti in January 2014, successfully hosted (2010) and Pakistan (2005). CELAC’s 2nd Summit in Havana, Respected attended by 31 out of 33 regional On October 28, 2014 there were 188 heads of state. votes for the non-binding resolution globally entitled ‘Necessity of ending the Pope Benedict XVI visited Cuba from economic, commercial and financial March 27-29, 2012 reaffirming the embargo imposed by the United excellent and uninterrupted relations States of America against Cuba’ in the between the Holy See and Cuba. 193-nation General Assembly. One hundred and eighty-six countries On October 24, 2014 the Financial maintain embassies and consulates in Action Task Force (FATF) decided Cuba—the largest number within the to remove Cuba from its monitoring region. mechanisms, acknowledging the work carried out by the country to prevent Cuba has been a member of WTO money laundering and the financing of since 1995 and a member of GATT terrorism. since 1948. Preferential trade agreements signed with most of In July, 2014 Russian and Chinese the countries in Latin America & the Presidents Vladimir Putin and Xi Jinping Caribbean through ALADI, Cuba- (L) visited Cuba in short sucession CARICOM and Cuba-MERCOSUR. signing numerous agreements Agreements for the avoidance of Cuba chaired for the first time, the double taxation and the Reciprocal 67th World Health Assembly, which Promotion and Protection of took place from May 19-24, 2014, in Investments (ARPPI) with 12 and 63 Geneva. countries respectively.
Participant with International Court of Arbitration in Paris.
ZED Mariel: Open to the World 6
In 2013, the British warship Wave Knight called into Havana harbor highlighting the cooperation between Cuba and other countries with an active presence within the Caribbean on subjects such as the interception of drug and people trafficking Respected globally ZED Mariel: Open to the World 7
‘Cuba has made significant progress to improve its AML/CFT regime. Cuba has substantially addressed its action plan, including by: becoming a member of GAFISUD; adequately criminalising money laundering and terrorist financing; establishing procedures to identify and freeze terrorist assets; establishing adequate customer due diligence requirements; ensuring a fully operational and effectively functioning financial intelligence unit and enhancing suspicious transaction reporting requirements.’ FATF: June 27, 2014 ‘The FATF welcomes Cuba’s significant progress in improving its AML/CFT regime and notes that Cuba has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2013. Cuba is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Cuba will work with GAFISUD to further strengthen its AML/CFT regime.’ FATF: Oct 24, 2014 Respected globally ZED Mariel: Open to the World 8
Double taxation agreement Preferential Trade Agreement for Reciprocal entered into force Agreement Promotion & Protection of Investments (ARPPI) The Republic of Cuba Barbados 17 March 2000 Yes Yes has agreements with Brazil - Yes Yes China 17 October 2003 - Yes * Details shown here are for a France - - Yes selection of Cuba’s most significant trading partners only (Cuba also has Germany - - Yes agreements with other countries not listed here) Italy - - Yes Mexico - Yes Yes Panama - Yes Yes Portugal 5 July 2003 - Yes The Republic of Cuba Russia 15 November 2010 - Yes Spain 31 December 2000 - Yes is a member of: Venezuela 6 May 2005 Yes Yes * Selected highlights Vietnam 26 June 2003 - Yes UK - - Yes
- African, Caribbean, and Pacific Group - International Civil Aviation - International Organization for - United Nations Industrial of States (ACP) Organization (ICAO) Standardization (ISO) Development Organization (UNIDO) - Community of Latin American and - International Criminal Police - Nonaligned Movement (NAM) - United Nations Institute for Training Caribbean States (CELAC) Organization (Interpol) - Organization for the Prohibition of and Research (UNITAR) - Financial Action Task Force on - International Federation of Red Cross Chemical Weapons (OPCW) - World Customs Organization (WCO) Money Laundering in South America and Red Crescent Societies (IFRCS) - Permanent Court of Arbitration (PCA) - World Federation of Trade Unions (GAFISUD) - International Labour Organization - United Nations (UN) (WFTU) - Food and Agriculture Organization (ILO) - UNICEF - World Health Organization (WHO) (FAO) - International Maritime Organization - United Nations Conference on Trade - World Intellectual Property - Group of 77 (G77) (IMO) and Development (UNCTAD) Organization (WIPO) - International Atomic Energy Agency - International Mobile Satellite - United Nations Development - World Tourism Organization (UNWTO) (IAEA) Organization (IMSO) Program (UNDP) - World Trade Organization (WTO) - International Chamber of Commerce - International Olympic Committee - United Nations Educational, Scientific, (national committee (ICC)) (IOC) and Cultural Organization (UNESCO) ZED Mariel: Open to the World 9
2010 2011 2012 2013 Sugar 257 361 456 432 4. Other agricultural products 99 121 114 117 Rum (primarily) 83 93 92 154 foreign E Tobacco 202 223 224 245 X Total agricultural 641 798 887 948 trade P Other 2,665 3,188 2,879 2,670 O Nickel (primarily) 1,207 1,480 1,082 796 Pharmaceuticals (primarily) 538 583 620 681 figures R Transportation equipment 111 136 105 101 T Iron & steel 71 94 83 72 Cuba’s merchandise S Cement 34 35 40 27 trade by product Other metalic products 18 16 22 13 2010-2013 Manufactured products 44 46 40 33
All figures in USD Million TOTAL exports 4,550 5,870 5,577 5,283 Oil related (+ other) 4,531 6,372 6,477 6,346 I Food products 1,467 1,863 1,645 1,848 M Drinks & tobacco 43 37 28 50 Non-refined food 149 197 239 238 P Vegetable oils 124 147 165 120 O Chemical products 966 1,254 1,225 1,300 R Manufactured goods 1,100 1,396 1,415 1,503 Machinery & equipment 1,669 1,954 1,940 2,525 Source: ONE T Various manufactured goods 595 732 667 776 Comprehensive statistics about all aspects of Cuba´s economy may be downloaded at the Oficina S Sub-total 6,114 7,581 7,324 8,360 Nacional de Estadísticas web site, www.one.cu TOTAL IMPORTS 10,644 13,952 13,801 14,707
trade BALANCE (6,095) (8,082) (8,224) (9,423) foreign trade figures ZED Mariel: Open to the World 10
Exports from Cuba to country of Imports to Cuba from country of origin destination (USD m) (USD m)
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Venezuela 414 528 1,717 2,273 2,484 2,266 Venezuela 4,473 2,608 4,302 5,902 6,079 4,802 Canada 757 431 604 719 551 462 China 1,481 1,171 1,223 1,281 1,237 1,534 Netherlands 289 238 353 655 698 457 Dutch Antilles 1 0 39 150 30 1,241 China 677 516 681 778 459 344 Spain 1,232 752 785 1,020 1,006 1,227 Spain 195 154 161 165 150 171 Brazil 600 508 444 644 648 614 Panama 51 19 12 7 112 120 Mexico 369 323 360 450 487 508 Belgium 11 8 30 37 40 118 Italy 488 324 292 388 381 460 Dutch Antilles 65 59 3 29 60 108 Canada 656 310 331 479 387 451 UK 7 7 19 37 22 101 France 227 140 190 344 360 412 UAE 8 12 3 5 3 81 USA 963 598 406 434 509 402 Germany 27 29 28 40 43 81 Argentina 125 120 129 149 120 371 Brazil 42 63 58 82 108 81 Germany 378 280 269 286 311 344 Italy 64 29 38 51 33 56 Algeria 244 169 213 309 331 308 Dom Rep 46 21 23 29 84 46 Vietnam 514 276 266 309 190 188 France 46 45 107 23 28 43 Russia 269 195 227 224 252 183 Singapore 118 35 186 27 32 35 Ukraine 59 17 13 44 37 167 Switzerland 15 15 14 14 17 34 Panama 95 64 60 87 75 101 Portugal 48 21 17 7 31 31 South Korea 430 112 94 129 110 98 Cyprus 28 44 29 39 33 29 Holland 98 68 61 73 94 87 Vietnam 2 3 3 5 8 26 Belgium 59 36 45 62 66 79 Colombia 17 7 9 26 15 24 Japan 153 89 78 79 54 71 Mexico 14 14 18 25 24 22 India 62 51 53 64 62 67 Honduras 19 7 9 16 15 22 UK 49 32 50 80 61 67 Russia 56 88 57 56 90 20 Sweden 62 32 32 42 40 58 Other 649 469 371 725 438 504 Other 1,147 630 680 926 873 870 TOTAL 3,664 2,863 4,550 5,870 5,577 5,283 TOTAL 14,234 8,906 10,644 13,952 13,801 14,707
Source: ONE ZED Mariel: Open to the World 11
Cuba opened up to foreign investment Pernod Ricard and Tabacalera (now in the 1990s following the collapse owned by Imperial Tobacco) have of the Soviet Union. Since then over helped develop Havana Club and 400 joint ventures and International Habanos S.A., respectively, into world 5. Economic Associations have been leading brands. signed. Foreign Sherritt International has developed Cuba imported US$ 14.7 billion of extensive mining, oil & gas, and merchandise goods in 2013. Of this energy interests in Cuba since the direct US$ 8.4 billion was non-oil-related. early 1990s. Several other major This makes Cuba one of the largest oil companies have performed markets within the region and an exploratory work both on-shore and investment important export market within certain off-shore including Repsol, ONGC, targeted sectors. Petronas, PDVSA, Sonangol and Zarubezhneft. The Cuban government has announced that it is looking to In-Bev, Souza Cruz, Unilever and attract US$ 3 billion in foreign direct Nestle have all developed products investment annually. (predominantly) for the Cuban market. ‘Since 1989 Cuba has Law 118/2014 established a more Many of Cuba’s hotels are managed by received billions of dollars attractive framework for foreign one of the more than 18 foreign hotel in FDI and has signed over investment and replaces Law 77/1995 groups. The largest, the Meliá Group, which was the former primary manages 27 properties in Cuba. 400 joint ventures and investment law. International Economic Brazilian Odebrecht and other leading Associations’ Since this law came into effect, the international construction firms have progress of several pipeline projects been involved in the construction and developed by foreign groups has been renovation of many recent projects, accelerated. including TC Mariel, Havana airport and major new hotel developments.
Nickel mine in Moa operated by Moa Nickel S.A. Foreign direct investment ZED Mariel: Open to the World 12
Another hard day at the office The Jardines del Rey (the King’s Gardens) archipelago encompasses many keys (cayos) where picturesque and in Cayo Guillermo beautiful white sand beaches shelve into a coruscating lagoon with a coral reef beyond. Linked to the mainland by two causeways, these keys have seen significant development over recent years with some of Cuba’s most luxurious hotels located here. Most are managed by leading international hotel chains Foreign direct investment ZED Mariel: Open to the World 13
The annual Habanos Festival in Havana is the most prestigious event of its kind internationally for cigar lovers
Habanos S.A. Hecho en Cuba
The area around Vuelta Abajo is the most prized tobacco growing area in the world for its unique growing conditions
Over the past 15 years, Habanos S.A. has built a global marketing platform, which has built on the historic appeal and unique production process associated with Cuban tobacco. This has consolidated the global brand and market power of Cuban cigars ZED Mariel: Open to the World 14
Feb. Plans are announced to change Sep. Decree law passed expanding self- 2008 salary levels. Wages related to 2011 employment permits to 181 types. 6. production are implemented on Decreto-Ley No. 284, modificativo selected sectors. del Decreto-Ley No. 278 economic Jul. Decree law passed decentralizing Sep. Law passed allowing Cubans to 2008 the agricultural sector. Decreto- 2011 buy and sell post-1959 privately Ley No. 259: Sobre la entrega de owned motor vehicles. Decreto changes tierras ociosas en usufructo No. 292 del Consejo de Ministros
Apr. The VI Congress of the Cuban Nov. Decree law passed liberalizing real [2008-2014] 2009 Communist Party takes place. New 2011 estate markets, allowing Cubans to social and economic guidelines are buy and sell private property. approved. Decreto-Ley No. 288, modificativo de la Ley No. 65 del 23 de Aug. The Cuban Contraloría (state diciembre de 1988: Ley general de 2009 auditing body) is created to la vivienda fight corruption. Ley No. 107 de la Contraloría General de la Dec. Relaxing restrictions on small República de Cuba 2011 businesses and issuing new licenses for service sector jobs. July Amendment of Civil Code allows Decreto No. 292 del Consejo 2010 the granting of surface rights for de Ministros. Resolución 409 del 99 years and in perpetuity to joint MFP y Resolución 46/2011 del venture companies in real estate Ministerio de Trabajo y Seguridad projects. Decreto-Ley No. 273 de Social 19 de julio de 2010 del Consejo de Estado Jan. The requirement for an exit permit 2012 to leave the country is lifted. Decreto-Ley No. 302, modificativo de la Ley No. 1312: Ley de migración
Farmer tending a field in Artemisa Economic changes ZED Mariel: Open to the World 15
Nov. New tax code established for Cuba Mar. Rules relaxed on cellphone data 2012 in Law 113. Ley No. 113/2012 del 2014 services for Cuban nationals. Sistema Tributario Resolución 8 de 2014 del Ministerio de Comunicaciones Nov. New legislation passed related 2012 to experimental non-agricultural Mar. Salary for doctors and dentists cooperatives. More than 400 2014 raised by 100% and 70% approved so far. Decretos-Ley No. respectively. Resolución No. 305 y 306 del Consejo de Estado. 11/2013 del Ministerio de Trabajo y Seguridad Social May ETECSA implements a system 2013 for internet connection on 118 Mar. Foreign Investment Legislation commercial offices around the 2014 published to establish a new legal country. Resolución No. 197/2013 framework for foreign investment in del Ministerio de Comunicaciones Cuba. Ley No. 118 de la Inversión Extranjera; Decreto No. 325/2014: Sep. The Council of State adopted Reglamento de la Ley de la 2013 Decree Law 313 of the “Mariel Inversión Extranjera Special Development Zone”. July The Council of Ministers Jan. Cuban State entities begin the sale 2014 approved new, higher salaries for 2014 of cars to the general public. sportspeople, trainers and other Decreto No. 320 del Consejo de sports professionals. Resolución Ministros 22/14 del INDER
July Two Cuban baseball players 2014 officially hired by the Japanese Mayor League. Salaries in millions of US dollars.
El Cocinero Havana’s dining scene has benefited from a wave of new private restaurants, which have opened since 2012 ZED Mariel: Open to the World 16
While Cuba’s boxers reign supreme at the Olympics, they stayed away from professional bouts until 2013 when ‘Los Domadores’ entered the semi- professional World Series of Boxing. The Cuban participants were paid for each bout and went on to dominate and win the tournament
Photo of Marcos Forestal as he came out in the Cuba vs Russia bout at Ciudad Deportiva, December 2013 ZED Mariel: Open to the World 17
Cuba has an extensive network of over ETECSA, the national telecoms 10 airports able to receive international monopoly, has embarked on a major 7. aircraft. Cuba’s principal airport five-year investment program that will (José Martí International) is currently enable the company to continue to undergoing a major renovation. improve data and mobile services at infra- more competitive prices. Both areas have experienced significant recent Cuba’s road network connects all areas growth. structure of the country. Several investment initiatives are ongoing to ensure that these are adequately maintained. Unión Eléctrica (UNE), the national utility provider, has an ambitious plan to provide 25% of the energy needs The rail spur linking Mariel to the of Cuba from renewable energy by A strong underlying national rail network now enables 2030. This will include developing new infrastructural basis individuals to commute easily by capacity of 755 MW biomass, 700 MW in transportation, train from Havana to Mariel as well as of solar photovoltaic and 633 MW of communications and energy providing an efficient alternative to wind power. road transportation for containers.
Existing thermo-electric power stations Significant investments have been mostly burn Cuban domestic crude oil made over recent years to upgrade that is extracted from (mostly) on-shore the water network within the country; or shallow water platforms. Cuba has many aquifers including five within the ZED Mariel zone.
The Boca de Jaruco power plant ZED Mariel: Open to the World 18
During 2012-2013, the rail network around Mariel was refurbished and new lines were laid down, which has connected TC Mariel with the national rail network ZED Mariel: Open to the World 19
Universal education. The World Bank Cuba has universal health care free at and UNDP consistently classify Cuba the point of delivery that has produced alongside First World countries in First World health indicators. terms of educational indicators. There are low levels of crime and A high percentage of the workforce violence, which provides a safe and (71%) has advanced educational secure environment. 8. qualifications. Cuba is the most progressive country Within the Greater Havana area are in the region on social issues including Social the University of Havana, Instituto same-sex and gender equality. Superior Politécnico José Antonio indicators Echevarría (CUJAE), Instituto Superior Cuban international teams have de Tecnologías y Ciencias Aplicadas, an incredible track record at the Instituto Superior de Ciencias Médicas Olympics and other international de La Habana, Universidad Agraria de competitions (especially in boxing and La Habana, Universidad de las Ciencias baseball). Cuba has encouraged mass Informáticas (UCI), Universidad de participation domestically. Artemisa and Escuela Latinoamericana de Medicina. Cubans have strong family Cuba ranks alongside or relationships and ties. better than most developed There is a high participation of women countries on a range of in the workforce. Cuba has a strong sense of national social indicators including identity and limited ethnic, religious or education, health care and The Biotechnology cluster (pole) racial cleavages. gender equality in Western Havana contains several world-renowned research institutions that have developed many groundbreaking medical treatments. Kids at Saturday morning soccer practice, Ciudad Deportiva ZED Mariel: Open to the World 20
Even in remote rural areas, you will see Kids walking home from school in Cuban kids with their school uniforms kept Baracoa, Guantánamo province immaculately and worn with pride ZED Mariel: Open to the World 21
Can you repeat the question please?
Graduation day at Havana University, 2013
Marathon for The Cuban Five, Sep. 2013 Cuba has invested heavily in its health care sector
Graduation day at Havana University ZED Mariel: Open to the World ZED Mariel: Open to the World 22
‘Sensual, surreal, and seductive, Havana is simply sensational. To call the city “unique” is no cliché. Arguably Latin America’s best-preserved capital city, Havana is one of the oldest, grandest and most seductive cities in the Americas. It glories in historic import. At the heart of the city is enchanting Habana Vieja (Old Havana), a UNESCO World Heritage Site containing perhaps the finest collection of Spanish colonial buildings in all the Americas. Baroque churches, convents and castles 9. dating back to the 17th century reign majestically over cobbled streets and squares embraced by the former palaces and mansions of ruling gentry. Now in its third havana decade of renovation, this “lived-in museum” teems with quintessential Havana street life. (Population 2,141,913) Museums span the spectrum from quirky to high-brow. The city is bursting with first-rate art galleries. Sizzling salsa saturates the streets day and night, plus, there are dozens of venues to choose from. No restaurant or bar is without trovadores playing boleros and son. Havana even has a smokin’ hot jazz scene. Classical music is world class. No other city internationally can compete with Havana’s sensational cabarets, with star billing (as back in the day) given to the Tropicana. The dance scene is top rate from Alicia Alonso’s Ballet Nacional to the latest contemporary show from Danza Contemporánea.’
Christopher Baker, Author of the Moon Guide to Cuba ZED Mariel: Open to the World 23
Rush hour traffic in Havana Although traffic has increased somewhat in the capital over the past two years, it is still very rare to ever actually get stuck in a traffic jam. Public buses are reliable and inexpensive ZED Mariel: Open to the World 24 music cinema
Bjoice y Djoy de Cuba
performance Prado Avenue, 2013 dance Inauguration of the Huella de España, 2013 ZED Mariel: Open to the World 25
The Biotechnological and Pharmaceutical BioCubaFarma offers comprehensive Industries Group, (BioCubaFarma), is a health programs that include drugs and Cuban entity that executes strategies and equipment designed to achieve a high develops technologies and products to social impact. These include: help in the prevention, early diagnostics - Disease prevention programs with and timely treatment, of several disorders; prophylactic vaccines; from pre-conception to those of the - Programs for early diagnosis and elderly. treatment of different cancer pathologies (including therapeutic BioCubaFarma has 16 large enterprises vaccines) ; that maintain 78 manufacturing facilities - Monitoring and treatment programs that employ more than 21,000 people. for diabetes and its complications, 10. The group produces and exports such as diabetic foot ulcers; 1,099 products, including generics - Diagnostic and monitoring programs and innovatives. It has more than 800 of different diseases (cardiology, Biotech- marketing approvals abroad and exports neurology, etc.) with novel medical to more than 50 countries all over the equipment; world. nology & - Programs for the detection of malformations and metabolic Within the biotechnology sector, several hereditary diseases. entities are developing 91 projects to pharma- target infectious, oncology, diabetes and BioCubaFarma uses various business cardiovascular diseases. The Intellectual models including License Agreements, Property Rights of other products Representation and Supply Agreements, ceutical developed by BioCubaFarma have and Technology Transfer Agreements. been recognized in the more than 1,700 patents granted abroad. Cuba’s biotech industry The group is open to foreign investment “is the best established BioCubaFarma has developed a network in Cuba and is looking to expand its manufacturing capacities through the compared to all developing of partnerships internationally and has incorporated joint venture companies development of joint ventures to be nations.” in several countries including China and located within ZED Mariel. U.S. journal Nature, 2011 Singapore. ZED Mariel: Open to the World 26 Cuba attracted 2.8 million visitors in At present, Cuba has 60,552 hotel 2013 generating approximately US$ rooms. Tourism Minister Manuel “If I get lost look 2.6 billion in revenues. Marrero Cruz has projected that this number will increase to 85,500 by for me in Cuba” The largest sources of tourists are from 2020. Federico García Lorca (1) Canada, (2) Britain, (3) Germany, (4) France, (5) Italy, (6) Argentina, Areas that are being targeted for (7) Mexico, (8) Spain and (9) Russia. foreign investment include Cayo Cruz Recent years have seen strong growth (Camagüey), Paredón Grande (Ciego from Latin America and Russia. de Ávila), the Peninsula del Ramón (Holguín), Playa Ancón (Sancti Spíritus) In a recent edition, the Guía de El and around Pasacaballos/Rancho Luna 11. Viajero, published by El País, called (Cienfuegos). Havana “the safest city in Latin Tourism America and the Caribbean.” Several new luxury boutique projects are being developed in Havana by the In 2013, the Barbados-based Cuban State including the Manzana de Caribbean Tourism Organization Gómez, Packard Hotel and Prado and ranked Cuba second in overall value in Malecón. the region. At least 15 major golf course, marina In the 1950s, 85% of tourists to Cuba and real estate development projects came from the US. Various studies are under discussion of which four have estimated that, once Americans have reached an advanced stage. can visit Cuba without restriction, the island could expect to see demand for Meliá opened the 731-room, more than ten million tourists annually. 1,000-berth Marina Varadero in 2013. This type of luxury world-class project Cuba has the capacity in terms of highlights the development of other geographic size, miles of coastline and higher end market niches by the population to meet this demand. Cuban tourism industry. El Nicho nature reserve outside Cienfuegos ZED Mariel: Open to the World 27
Don’t look down! The adventurous have been jumping out of a plane from Varadero’s Centro Internacional de Paracaidismo de Varadero at 10,000 feet since the 1990s. The 30-second free fall may just feel the longest of your life. Cuba’s legendary Varadero peninsula can be seen below
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Cuba´s nature reserves and protected areas, 2013 Cayo Mono-Galindo Ecological reserve Cayo Leguas Playas del Este Migratory birds Sierra del Rosario Las Picúas-Cayo Cristo Mountain rainforest. Galindo hills Wildlife sanctuary Viñales National Park Biosphere Endemic flora Cultural and natural reserve Bibanasí hills landscapes, endemics. Wildlife sanctuary Mil Cumbres Las Cayamas Jumagua High diversity Migratory birds Ecological reserve endemic Cubanacán Los Pretiles CIÉNAGA DE ZAPATA Ecological reserve Endemic Pico San Juan Cayos de San Felipe Ecological reserve Endemic Cabo de Las Salinas Playa Girón San Antonio Cabo Corrientes Agabama Guanahacabibes Peninsula Cayos Los Indios Cayo Largo Ciénaga de Zapata National Park Well preserved forests The largest wetland in the Endemics. Caribbean (1.7 million acres). Cabo Cantiles Includes a special protection Isle of Youth southern plain zone at Playa Girón shoreline, Well preserved original Las Salinas wildlife sanctuary coastal forests and swamps. Los Canarreos Archipielago and parts of the ocean shelf. Invasive exotic animals Coral reefs, sand islands, (hogs, cows, deer, alligators) original vegetation. Includes have turned into pests. Cantiles National Park and several natural sanctuaries.
Reserve (natural, ecological) Protected landscape
Wildlife sanctuary Area managed for conservation National park Protected natural landmark Map compiled by Caribbean Professional Services Ltd from various public sources. It is indicative only. ZED Mariel: Open to the World 29
Reserve (natural, ecological) Protected landscape
Wildlife sanctuary Area managed for conservation Lanzanillo-Cayo Fragoso Wildlife sanctuary National park Protected natural landmark Cayo Francés Natural reserve Cayo Coco Natural reserve
Cayo Cruz Wildlife sanctuary Caguanes National Park Forests, caves, aboriginal paintings
Banao Loma de Cunagua Río Máximo Ecological reserve Wildlife sanctuary Wildlife sanctuary Tunas de Maternillos Zaza Ecological reserve Sierra Maraguán Bahía Nuevas Wildlife sanctuary Nuevitas Ecological reserve Cayo Ana María Wildlife sanctuary Caletones Wildlife sanctuary and mangrove belt Endemics
Cerro Galano El Guaso Jardines de la Reina Natural reserve Rainforests Alejandro de Humboldt National Park National Park Sierra Cristal Mountain rainforests, Coral reefs, sand islands, wildlife, Established in 1930 hundreds of endemics. Delta del Cauto original vegetation. Wildlife sanctuary, La Mensura Maisí wetlands. Marine terraces, xeromorphic forest Buena Esperanza Protected landmark: coral reef in muddy waters. Turquino National Park Baconao-Gran Piedra Endemics, forests, Desembarco del Granma Rainforest, endemics. landscapes diversity. Southeastern coast National Park Natural reserves, Marine terraces, forests. protected landscapes, terraces, forest, wildlife. ZED Mariel: Open to the World 30 12. Time for a change to the US blockade against Cuba ZED Mariel: Open to the World 31
A visionary greenfield project ZED Mariel (ZEDM) encompasses an Other parts of ZED Mariel are available anchored by a modern area of 465.4 km² partially covering six for hotel, resort and golf course container terminal. municipalities within the province of development, as well as other forms of Open to the World Artemisa. Mariel is 45 km from Cuba’s real estate. capital, connected by newly renovated road and rail links. Baracoa airport is within ZED Mariel. Playa Baracoa Although Sector A is the priority at (located on the Eastern boundary present, projects located in other parts 13. of ZED Mariel) is only 20 km from of the zone may also be developed. Havana—the most dynamic, historic ZED Mariel: and attractive city in the region. TC Mariel, a modern container terminal, anchors ZEDM. It is currently the facts An initial area of 4,581 hectares (Sector operated by Singapore-based PSA. A) has been identified around the port, With the capacity to receive Post- which will be developed initially under Panamax shipping, this port is being a master plan being developed by a developed into an important regional leading international firm. logistics hub with opportunities for transshipment viewed going forward.
This area has been divided into eleven zones and will include a high tech International companies will benefit park, manufacturing area, agricultural from an attractive regulatory and fiscal processing center, oil service center, regime while still being considered logistics zone, an area for port-related as operating within Cuban national activities and one for agricultural territory. development and processing, as well as nature reserves and other areas. ZED Mariel: Open to the World 32
New/renovated railway ZED Mariel New 4-lane Mariel connecting highway Area for development
45 Km HAVANA
Total area available for development as part of ZED Mariel Canto de Santa Fe
ZONES A1-A11 Playa Playa Baracoa El Salado TC MARIEL Punta Baracoa Brava Bahía de Cabañas La Boca RICANA Airport A PANAME TER CARRE Embalse JOSÉ MARTÍ El Mosquito Cabañas Bauta INTERNATIONAL Mariel La Molina AIRPORT Presa La Coronela Caimito
Guanajay Embalse Escuela Internacional Pinillo de Cine y TV Bejucal
Embalse SIERRA DEL San Francisco
ROSARIO Cayajabos SAN ANTONIO DE LOS BAÑOS RIO EL
D MAYABEQUE Las Terrazas AR PIN San Antonio A N A de los Baños Airport AB H ARTEMISA TA Alquízar IS L Quivicán P A O R T T U N A E C A R Guira de Melena E T E R R A ARTEMISA San Cristobal Candelaria C ZED Mariel: Open to the World 33
In addition to the areas currently being Ernest Hemingway and Cuban poet developed around the port, there is a Nicolás Guillén were attracted to large area further afield available for spend time in the town of Artemisa 14. development, much of which is located that boomed on coffee and sugar in in areas of natural beauty and situated the C19. It maintains a country charm close to the small towns that constitute today. artemisa the Province of Artemisa. Located in the UNESCO Biosphere province There is a large catchment area for Reserve Sierra del Rosario, Las Terrazas workers including Mariel (Pop: 14,000), is one of Cuba’s premier destinations (Pop: 502,392) Artemisa (Pop: 82,917), Guanajay (Pop: for eco-tourism. Stunningly beautiful 28,750) and San Antonio de los Baños and often twinned with the lovely (Pop: 49,942). Soroa, this is a place to appreciate nature and escape from city life. The University of Artemisa opened in October 2012 and now has 3,000 Artemisa is known as Villa Roja (Red undergraduate and graduate students Town) or the Jardín de Cuba (Garden in 18 schools. of Cuba) for the famous fertility of its soil, which still yields a rich annual San Antonio de los Baños hosts the harvest of sugarcane, tobacco and world-renowned Escuela Internacional bananas. de Cine y TV founded in 1986 with the help of the late Gabriel García Playa El Salado and Playa Baracoa Márquez. offer attractive beaches and over 15 dive sites offshore. Only 23 km West The respected Latin American School from Havana, El Salado has great of Medicine (ELAM) graduates potential for tourism development and thousands of medical students from one of Cuba’s best go-karting tracks. the Americas and other parts of the Go-karters go through their paces at Playa El Salado karting track reaching speeds you would be proud of on a German autobahn world each year. ZED Mariel: Open to the World 34
Presa La Coronela in Artemisa ZED Mariel: Open to the World 35 Escuela Internacional de Cine y TV in San Antonio de los Baños
Artemisa has a long coastline from Playa Baracoa to Cabañas. There are many creeks and rivers to the sea that meander through mangroves providing beautiful natural habitats From Extras series Hentai-bomba by Nicholas Ordoñez (2011)
View of Mariel town (cement factory in foreground) Playa El Salado ZED Mariel: Open to the World 36 15. Zoning: Sector A
BAHÍA DE MARIEL
A4 241.6 (ha) A3 Oil Activities Zone 459.5 (ha) A1 High Technology 607 (ha) Ensenada Industrial Area de Laza Reserve Zone
A7 262.8 (ha) A5 Port Zone A2 386.6 (ha) 299.7(ha) Logistics Zone Ensenada Western de Angosta Ecopark A8 239.8 (ha) MARIEL Food and Agriculture Processing A9 Zone 1040.0 (ha) Agricultural A11 Development 478.6 (ha) Zone A6 Mangrove Area
A10 313.8 (ha) 250.2 (ha) TECHNOPARK Transporation Activities Zone ZED Mariel: Open to the World 37 ZED Mariel: Open to the World 38
Agricultural processing Biotechnology & Artemisa is known as the Jardín de pharmaceuticals Cuba (Garden of Cuba) for the famous Projects may be negotiated with 16. fertility of its soil. BioCubaFarma. Packaging & bottles Renewable energy Priority Cuba imports huge numbers of cans, Cuba has an ambitious target of bottles and other packaging to meet 25% renewable power by 2030. The current domestic needs. area of ZED Mariel is attractive for sectors photovoltaic solar projects. Construction materials Cuba has an enormous need for all Telecommunications & of interest types of construction materials to informatics meet the current demand and large ETECSA is planning a major investment programs in infrastructure investment program over the next five and hotels. years, which will meet the increased Projects should meet the demand for its services. following general objectives: Manufacturing & assembly Cuba imports approximately US$ 4.8 Tourism & real estate Generate exports/promote import billion of manufactured goods. Some Opportunities exist for the substitution; of this could be efficiently assembled development of real estate and tourist Use modern, environmentally-friendly and/or made in Cuba. centered developments including technology; golf courses and other leisure-related High tech industry projects. The area includes many sites Provide employment; Cuba’s high level of qualified workforce of natural beauty. and the excellent universities offer a Develop links with the wider Cuban large talent pool of staff to develop Services economy outside ZED Mariel. high tech industries. Construction & engineering firms, banking, consultancy and logistics providers are all areas foreseen to play a role within ZED Mariel. ZED Mariel: Open to the World 39 Artemisa is known as the Jardín de Cuba for Investment in photovoltaic solar is being sought in ZED the famous fertility of its soil Mariel. There is a lot of sunshine!
It´s a beautiful morning in Quiebra Hacha BiofarmaCuba is open to partnerships with foreign investors in ZED Mariel ZED Mariel: Open to the World 40
TC Mariel is a modern container Mariel TC facilities terminal operated by Singapore-based A 702-meter jetty covering an area of 17. PSA. 27.7 hectares. Four state-of-the-art container cranes with a capacity of 824,000 twenty-foot equivalent units TC Mariel: There are opportunities for TC Mariel (TEUs) annually. to establish itself as regional logistics A regional center for companies operating within the region. This may also include The entrance channel has a depth transshipment to Central American and of over fifteen meters, enabling the logistics Caribbean destinations over the short/ operation of Post-Panamax vessels, medium term and to the US in the which are capable of carrying as many longer term. as 12,500 TEUs (compared to the hub current maximum of 3,500 TEUs). With a population of 11.2 million, Cuba is the largest country in the An administrative center is already in Caribbean. Given a large and growing place. Warehousing and distribution tourism market, this implies a large centers are being developed to meet domestic market relative to other the current ongoing needs generated countries in the region that gives from the container traffic that is Cuba an advantage over other smaller entering the port. islands within the Caribbean.
A future expansion to meet transshipment demand in a post US blockade scenario could see the jetty increased to 2,400 meters over an area of 128 hectares, which would increase the potential annual capacity to 3 million TEUs. ZED Mariel: Open to the World 41
Brazilian President Dilma Rousseff inaugurated TC Mariel in January 2014. Currently TC Mariel operates all the container traffic that the old Havana container terminal used to handle, (aprox 250,000 TEUs) ZED Mariel: Open to the World 42 Welcome to TC Mariel New warehousing is being built within the logistics zone
A ship unloads its cargo at night The rail link now connects TC Mariel fully with the national rail network ZED Mariel: Open to the World 43
Jacksonville BAHAMAS Special development zones Freeport FTZ within the greater Caribbean Houston New Orleans region, 2013*
MEXICO Mérida IP Miami Port DOMINICAN REPUBLIC Saltillo-Monterrey Industrial Corridor Everglades ITABO-Latin American FZ Investment Tijuana-Mexicali Area Santiago Puebla-Tlaxcala Area ZED MARIEL Zona Franca Exportación La América San Pedro de Macoris Altamira San Jerónimo IT park Guadalajara Area Parque Industrial de Pisa Multimodal Causedo Progreso Puerto Cybernetics Park Merida HONDURAS Plata Veracruz Villanueva IP Omoa, Choloma, San Juan Tela, La Ceiba, Yabucoa Amapala Area Guamaya Puerto Barrios Salina Cruz JAMAICA CAUCEDO Santo Tomás Puerto Cortés PUERTO RICO Kingston Free Trade Company KFZ San Juan Foreign Trade Zone Montego Bay Free Zone MBFZ FTZ#163 Ponce Garmex Free Zone Acajutla FTZ#7 Puerto Rico Foreign trade Zone Puerto Quetzal Hayes Free Zone Cazoumar Free Zone Bridgetown EL SALVADOR Puerto Cutuco Zona Franca Miramar Corinto Santa Marta Zona Franca Santa Ana Maracaibo Puerto La Guaira NICARAGUA Puntarena Cabello Maín COLÓN CCT Port-of-Spain Las Mercedes Puerto Caldera CARTAGENA Puerto Limón Zona Franca Internacional Managua S.A MANZANILLO Cristóbal COSTA RICA MIT Almacenes Atalanta BALBOA PIZF Atalanta San José Zona Franca Alajuela Zona Franca Punta Arenas PANAMA * A selection of the most important zones Caldera FTZ Zona Libre de Colón ZLC Panamá Pacífico have been detailed on this map. This does San José de Alajuela not include all special development zones in La Aurora, Heredia PanExport Zone each country. Especially in the case of Mexico Ultrapark L.A.G., Heredia Fort Davis only a small number have been highlighted which we consider most pertinent. ZED Mariel: Open to the World 44
U.S.A. Jacksonville Container traffic throughput 451 1,950 926 in the region (000´s TEUs), 2013 Houston New Orleans 928 Port Everglades 1,500 BAHAMAS Miami 901 Freeport FTZ
DOMINICAN REPUBLIC MEXICO *TC MARIEL 597 Altamira
866 1,083 Veracruz HONDURAS 1,423 1,703 307 San Juan Río Haina Santo Tomás Kingston Caucedo 389571 PUERTO RICO 499 Puerto Cortés GUATEMALA Puerto Barrios JAMAICA
EL SALVADOR
NICARAGUA 1,987 502 Planned Puerto 766 La Guaira 381 Nicaraguan 1,053 Cabello Port-of-Spain Cartagena Canal Puerto Limón 3,356 Colón COSTA RICA Panama 3,187 Balboa VENEZUELA Canal
COLOMBIA * Total gateway traffic to TCH (the old PANAMA container terminal in Havana) was approx. 250,000 TEUs in 2013. TC Mariel is likely to see some increase in throughput going forward as it develops as a regional hub. Its current capacity is 824,000 TEUs. ZED Mariel: Open to the World 45
U.S.A. Jacksonville cuba, hub to the americas (future opportunities)
Houston New Orleans
Port Everglades BAHAMAS Miami A & CARIBBEAN Freeport FTZ T + CENTRAL AMERIC GULF COAS E TO US EUROP TC MARIEL
MEXICO DOMINICAN REPUBLIC Altamira
Veracruz San Juan Río Haina Santo Tomás HONDURAS Kingston Caucedo PUERTO RICO JAMAICA
Puerto Cortés N
GUATEMALA Puerto Barrios A E
B ECSA TO ECN B A + US I GULF CO
R AS T + C EL SALVADOR A ENTR C AL A ME & R IC A A La Guaira & NICARAGUA CA C R Planned I IBB Nicaraguan R Port-of-Spain EA E Cartagena N Canal Puerto Limón Puerto M
A Cabello Colón
L
COSTA RICA A
R
T VENEZUELA
N Balboa E
C
+
A N COLOMBIA PANAMA C E
O T
A I S A ZED Mariel: Open to the World 46
Benchmarking cuba within the region
Dominican Reference Cuba Costa Rica Republic Jamaica Mexico Panama
Population – million 11.2 million 4.7 million 9.8 million 2.71 million 116.2 million 3.8 million
GDP – US$ Bn Figures based on US$ 65,8 bn US$ 49.6 bn US$ 61,1 bn US$ 14.4 bn US$ 1,260 bn US$ 40.6 bn 2013. Based on GDP per person – US$ US$ 5,880 IMF and World US$ 10,550 US$ 6,230 US$ 5,310 US$ 10,840 US$ 10,680 PPP per person – US$ Bank figures * US$ 18,796 US$ 14,343 US$ 12,163 US$ 8,486 US$ 17,389 US$ 19,080 except for Cuba GDP growth - % which are based 2.7% 3.5% 4.6% 0.2% 1.3% 8.4% on ONE statistics Debt as a % of GDP for 2013 unless **21.7% 36% 45.6% 131.6% 38% 38.6% stated Merchandise imports - US$ Bn US$ 14.8 bn US$ 17.1 bn US$ 16.81 bn US$ 5.7 bn US$ 381.6 bn US$ 24.3 bn
Merchandise exports - US$ Bn US$ 5.6 bn US$ 11.5 bn US$ 9.5 bn US$ 1.6 bn US$ 380.7 bn US$ 17.5 bn
UNDP Human Development Ranking out of 44 68 102 96 71 65 Index (HDI) 187 countries UDP Ranking out of 66 63 105 88 73 107 Gender Inequality Index (GII) 149 countries Transparency International Ranking out of 63 49 123 83 106 102 Corruption Index 177 countries
* Based on World Bank figures for 2011 ** Based on ONE figures for 2011 ZED Mariel: Open to the World 47 18. Legal Framework Taxation Act Law 113/2012 Special development Cuban Foreign Investment of Mariel Decree Law Law 118/2014 Details the general tax rules for all 313/2013 economic activities in Cuba, including Sets out the principal legal structures for Cuban/non-Cuban nationals and Establishes a special regime for for the implementation of investment Cuban/international companies. investment in the area of 465.4 km² projects in Cuba including investment This continues to apply (and provide within the province of Artemisa, which protection and the general rules the details to various tax rules) to pertains to ZED Mariel. relevant to foreign investors. international companies that have The Council of State adopted Law Supersedes and repeals previous Law invested in Cuba to the extent that 313 of 2013, dated September 23, 77/1995. Law 313/2013 or Law 118/2014 does 2013 (the “Special Development of The National Assembly (Parliament) not contradict it. Mariel”). In addition, the following adopted Law 118 of 2014 on Foreign The National Assembly (Parliament) complementary regulations were Investment dated March 29, 2014. In adopted Law 113 of 2012 on the adopted: addition, the following complementary Taxation System dated July 23, 2012 • Council of Ministers Decree No 316/2013 regulations were adopted: (the “Taxation Act”). In addition, the • Banco Central de Cuba Resolution No • Council of Ministers Decree 325/2014 following complementary regulations 82/2013 (“Decree s25”) dealing with procedural were adopted: • General Customs of the Republic of Cuba rules Resolution No 278/2013 • Central Bank of Cuba Resolutions 46/2014 • Council of Ministers Decree No 308/2012 • Ministry of Science, Technology and the and 47/2014 on General Rules and Tax Procedures Environment Resolution No. 150/2013 • Ministry of Foreign Trade and Foreign • Ministry of Finances and Prices Resolution Investment Resolutions 128/214 and No. 384/2013 and 149/2014 129/2014 • Ministry of the Interior Resolution No. • Ministry of Labor of Social Security 14/2013 Resolution 16/2014 dealing with labor • Ministry of Labor and Social Security matters Resolution No. 49/2013
For more information see www.gacetaoficial.cu ZED Mariel: Open to the World 48
* In Cuba outside of ZED Mariel ZED Mariel 19. Law 118/2014 Law 313/2013 / Decree 316 Corporate Exempt for first 8 years then payable at Exempt for first 10 years then taxable at tax 15%. 12% Fiscal May be increased by 50% when involving Exemption may be extended depending natural resources (oil/minerals). on particular project. rules Profits reinvested are tax exempted Profits reinvested are tax exempted Social 14% 14% security * 100% foreign owned companies outside of ZED Customs Not payable during development period. Not payable on capital equipment Mariel do not benefit from the duties Following development period, customs imported for investment. special tax regime detailed in duties are payable in accordance with the For other inputs (raw materials) customs Law 118/2014. In ZED Mariel they will enjoy the special established tariffs duties are payable in accordance with the regime as set out in Law established tariffs 313/2013 Services tax Exemption during first year of operations. Exemption during first year of operations. Payable at 50% of the rate (10%) 1% flat rate established established by law
Wholesale Exemption during first year of operations. Exemption during first year of operations. goods tax Payable at 50% of the rate (2%) established 1% flat rate established by law
Territorial Exempted during investment recovery None contribution period
Personal 15% (Non-permanent residents) 15% (Non-permanent residents) Income Tax ZED Mariel: Open to the World 49
Legal status of users/concessionaires 20. - ZED Mariel is open to international companies and foreign individuals as well as Cuban state-owned entities and joint ventures. Administrative - Companies and non-Cuban nationals may act either as a concessionaire or as a user of the zone. procedures - Concessionaires will need to obtain approval from the Council of Ministers, which will grant an administrative concession for the temporary management of a public service, execution of public works or exploitation of government property, for up to 50 years, which may be extended.
Administration of ZED Mariel The Mariel Special Development Zone Office is an entity attached to the Council of Ministers and commissioned to administer the Zone, control its activities, prepare and conduct the Development and Business Program, process all applications, licences, permits and authorizations carried out or needed by concessionaires and users of the Zone or by those interested in becoming established in it, by means of a one-stop shop system, with effectiveness and efficiency.
Investor Guarantees - Cuba has signed Agreements for the Reciprocal Promotion and Protection of Investments (ARPPI) with over 63 countries. - Cuba is a member of the International Court of Arbitration with headquarters in Paris. - The Foreign Investment Law 118/2014 provides for protection against expropriation and ensures the free transfer abroad of dividends, profits or other income associated with the exploitation of the investment. - Foreign investments in ZED Mariel enjoy the same level of protection as foreign investments elsewhere in Cuba as regulated by Law 118/2004. Regulations & approval framework ZED Mariel: Open to the World 50
Application & The Mariel Special Development Zone Office is able to provide all of the approval process necessary approvals for a new project including all licensing, permits and authorizations from other Cuban State entities. From an investor perspective, there is only one point of contact and the process functions as a One-Stop- Shop.
Initial contact made by the investor A preliminary assessment is made of 5 days with the Mariel Special Development the project to clarify whether it fits Zone Office. within the overall eligibility criteria for ZED Mariel.
The Investor is required to prepare a Once the Mariel Special Development 30-60 days feasibility study in accordance with Zone Office has received the feasibility appropriate Cuban norms for ZED study, a response will be given on the Mariel. project’s approval within 60 days.
[This feasibility study has been simplified and streamlined from the model of feasibility study required outside of ZED Mariel in Cuba].
The feasibility study may be performed internally by the company or contracted out to a Cuban state or international consulting firm. In either case, it must conform to the template laid out by ZED Mariel (which may be downloaded at www. zedmariel.com ZED Mariel: Open to the World 51
21. Q1: Is ZED Mariel a Free Trade Zone? No. The area covered by ZED Mariel is part of the Cuban territory and subjected to the national customs jurisdiction. Frequently Users and concessionaires will pay for raw materials imported to be processed in ZED Mariel, the same customs duties as other companies outside the zone. asked Users and concessionaires will be able to buy and sell goods and services from/ to any part of the national territory, without quota restrictions for the domestic or questions export markets. Q2: Are there any restrictions on the number of non-Cuban nationals who work in a company based in ZED Mariel? No. There are no legal restrictions determining the number of non-Cuban nationals who work for a user/concessionaire. Directors and/or company representatives are determined by the user/ concessionaire themselves. For other employees of the company, priority will be given to the employment of Cuban nationals when they have the appropriate skills needed by the user or concessionaire of ZED Mariel.
Q3: What facilities and infrastructure will be provided for a company in ZED Mariel? The standard size for each parcel of land is 4 hectares. Each parcel that is allocated to a user of the zone will have available connections to the principal utilities and support services including electricity, water, sewage, gas and communications. Common administrative and other facilities will also be available nearby. The user will have to arrange only for the final part of the connection of the particular utility to their installation.
ZED Mariel: Open to the World 52 Laying of new tracks during the period of renovation of the rail network
Q4: What is the contribution to the Zone’s Development Fund? The contribution to the Zone’s Development Fund is the way in which concession holders and users contribute a percentage of their income, and in the absence of income a fixed fee, to the formation of a fund for the maintenance of the ZED Mariel Office and the Zone’s common areas. This contribution is established in Article 44 of Decree Law No. 313 and is implemented through Resolution No. 384/2013 of the Ministry of Finance and Prices. This non-tax contribution is made through quarterly payments of 0.5% of the gross income earned in each quarter in the concession holders’ and users’ operational currency. If concession holders and users do not earn any income during a fiscal year, they will make an annual contribution to the Fund in the amount of 600 Cuban Convertible Pesos (CUC), or 600 Cuban Pesos (CUP) if they operate only in the latter currency.
Q5: If I am interested in developing a project in ZED Mariel, what should I do next? Come and discuss your idea with us. We are a one-stop shop working to minimize the procedures that you will need to take to establish a business within the zone. Please visit our web site at www.zedmariel.com, where you will find more information including all of the documentary requirements that you will need to complete as part of your application. ZED Mariel: Open to the World
Commuting to work on the newly connected rail network to Mariel ZED Mariel: Open to the World 53
Oficina de la Zona Especial de Desarrollo Mariel Desamparados No. 166 entre Habana y Compostela, Oficina 303 Habana Vieja, La Habana, Cuba THANK YOU FOR +537 8644240 to 47 [email protected] YOUr INTEREST www.zedmariel.com
- COME TAKE A LOOK fOR YOURSELF - www.zedmariel.com
View of Mariel from TC Mariel