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

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

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

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.

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

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

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

TRADE AGREEMENTS

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 EXONERATION OF TARIFF LINES FROM CUSTOMS DUTIES Canada European Union Switzerland New Zealand Australia Norway Japan 98.6% 98.3% 100% 100% 100% 99.9% 97.8% THE EXCEPTIONS REPRESENT 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

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

Opportunities

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 investment projects in coffee plantations; in multi-million dollar industrial production of sorghum for replacement of imported malt (Heineken project) for production of non-alcoholic Malta H

Housing

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.

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

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

Tourism up

20.2%

in 2013

STATISTICS

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

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 guarantee s 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