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Centre for Facilitation of Investments Established in November 2005 Under the auspices of the Ministry of Commerce and Industry Mission To promote investment.

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Presentation on theme: "Centre for Facilitation of Investments Established in November 2005 Under the auspices of the Ministry of Commerce and Industry Mission To promote investment."— Presentation transcript:

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2 Centre for Facilitation of Investments Established in November 2005 Under the auspices of the Ministry of Commerce and Industry Mission To promote investment opportunities and facilitate their implementation

3 INVESTMENT CODE OF HAITI Sectors eligible for investment under the code: EXPORT AND RE-EXPORT AGRICULTURE CRAFTS NATIONAL INDUSTRY TOURISM AND RELATED SERVICES FREE ECONOMIC ZONES OTHER - special sectors identified by the government of Haiti, such as housing

4 CORE TAX INCENTIVES - ALL INVESTMENT SECTORS Total exemption of income tax and municipal taxes for up to 15 years + 5 years digressive rate (15%, 30%, 40%, 60%, 80%) Accelerated depreciation Exemption, up to 20 years, from customs duties on raw materials Exoneration of payroll taxes and other direct internal taxes for up to 15 years Exoneration of sales taxes on exports Temporary admission for inward processing of raw materials and packaging materials Free transfer abroad of dividends, profits and other revenues earned in Haiti

5 ECONOMIC FREE ZONES Promoter and/or Operator of Free Zones Application through Direction of Free Zones Concession for 25 years, renewable Exemption of income taxes for physical and moral persons for up to 15 years Exemption from customs duty and taxation of goods and materials needed for operation Exemption from all local taxes for up to 15 years Local sale of up to 30% of production with payment of duties and taxes. Sub-Free Zone – concession for 10 years renewable Free sale of goods produced, within and between Free Zones, to exporting industries. Also valid for services.

6 ECONOMIC FREE ZONES Investor in Free Zones Free transfer abroad of dividends, profits and other revenues earned in Haiti Exemption from income taxes 10 years Foreign promoters, operators, investors, employees are exempt from Work Permits or Residence Permits For the Employee working within Free Zones, free transfer abroad of revenues earned in Haiti

7 HOPE II & HELP ACTS Haiti Hemispheric Opportunity through Partnership Encouragement Haiti Economic Lift Program HOPE II (2018) & HELP (2020) Extends HOPE II to September 30th, 2020 Expands the Wholly Assembled List Expansion to 200 Million SMEs Expansion to 200 Million SMEs for knit and 200 Million SMEs for woven Opportunities Knit- balance of quota128 MSME (25% use) Woven - 29% of 70 MSME (trigger for 200MSME) BETTER WORK Program

8 HOPE II & HELP ACTS OPPORTUNITIES Under Current Apparel Preferences Bottoms Higher value tops Sleepwear Women’s Undergarments Hats Knit – 75% of 200 MSME Woven – 20% of trigger of 70 MSME to 200 MSME Under Current Non-Apparel Preferences Home Goods (towels, bedspreads, quilts) Luggage Wire Harness Automotive Components

9 TRADE AGREEMENTS THE EXCEPTIONS REPRESENT Ratified CARICOM and CARIFORUM Finalizing position on the EPA with the European Union Scheduled to enter into the CSME Ratified the Caribbean Basin Trade Partnership Act (CBTPA) in 2000 HOPE II & HELP – ADIH/GOH have started the extension process-2030 1873 tariff lines for which Haiti is the only country in the world not affected by the quasi-totality of the American tariff lines To this we can add the flexible rules of origin for product included in HOPE & HELP laws EXONERATION OF TARIFF LINES FROM CUSTOMS DUTIES Canada 98.6% European Union 98.3% Switzerland100% New Zealand100% Australia100% Norway99.9% Japan97.8%

10 TRADE OPPORTUNITIES U.S. and CANADA The U.S. is our main trading partner Export: 2013 USD 847M vs. USD 775M in 2012 (Source USTR) – +9.3% 87% of Haitian Exports 80% apparel 7% agricultural, agro-industrial, alcoholic beverages Bali Accord (2013) on access to LDC countries - U.S. has liberalized 82.6% of tariff lines (not including HOPE & HELP for Haiti) Products exempted: milk, meat, textile, watch-making Rules of Origin differ by product - Awaiting reply from USTR Canada Export: 2013 USD 31.5M vs USD 30.2M +3% 3,1% of Haitian Exports General Preferential Tariff & LDC Tariff Rules of Origin Regulations Haiti has DFQF access – Exceptions: milk, eggs, poultry

11 PPP – Energy, Infrastructure Tourism – Hotels and associated services (Southern and Northern Coasts of Haiti) Local industrial production – substitution of imports; Agriculture/Agro-Industry – Interesting tendencies: 900 hectare organic agricultural development in the North, of which 100 hectares under greenhouses; export to U.S./Canada 1,500 hectare development for the growth of organic bananas, slated for the European market; coffee roasters now getting involved in multi-million dollar investment projects in coffee plantations; industrial production of sorghum for replacement of imported malt (Heineken project) for production of non-alcoholic Malta H Housing Opportunities

12 INTERNATIONAL AGREEMENTS Multi-Lateral Investment Guarantee Agency (MIGA) Guarantees investments against non-commercial risks which help investors obtain access to funding sources with improved financial terms and conditions in a wide variety of sectors. United States Overseas Private Investment Corporation (OPIC) In 2013 the GOH signed an Investment Incentive Agreement with OPIC which provides investors with access to political risk insurance. It also offers loans, loan guarantees and supports private investment funds. International Center for Settlement to Investment Disputes (ICSID) An autonomous international institution (Washington Convention) whose primary purpose is to facilitate conciliation and arbitration of international investment disputes. Haiti ratified its membership in 2009.

13 INNOVATIVE INDUSTRIES SURTAB Tablet Manufacturing Surtab is an electronic manufacturing-December 2013. The mission of the company is to re-establish Haiti as a natural “near-shore” high-tech manufacturing destination. Surtab serves international markets with affordable, high-quality Tablet PC’s Training 4-6 weeks and achieves very rigid quality requirements

14 INNOVATIVE INDUSTRIES TOMS SHOES Merging manufacturing and art TOMS. One for One®. TOMS has given over 15 million pairs of shoes to children in need Haiti Artist Collective Hand-painted shoes in partnership with Haitian company, Caribbean Craft, ~ 70 designs over 6 seasons. In January 2014 TOMS began manufacturing

15 STATISTICS Tourism up 20.2% in 2013 Low regional homicide rate at 8.3 per 100,000 Increase in agricultural production 4.5% (rice 18%) 80% primary schooling attendance in 2014 as opposed to 46% in 2006 GDP projected increase 2015 3.5% Haiti has surpassed China as the second largest supplier to the US of men’s and boys’ cotton-knit shirts Increase of 96% agro-industrial investments Increase of 60% tourism sector and associated services investments

16 WHY HAITI ? Unexploited business opportunities Strategic location A fully liberalized economy / free repatriation of dividends/income Pro-business government Access to 600 million consumers through free trade agreements and preferential access Situated at the crossroads of maritime trade routes A young population Ratification of international conventions for investment guarantees and protection: ICSID and MIGA conventions We have a national arbitration chamber Signing of bilateral reciprocal protection of investments with France, United States, Germany, United Kingdom, Spain and the Bahamas Guarantee of property rights

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