Doing Business with Mongolia Guide by Doing Business Guides

www.Mongolia.DoingBusinessGuide.co.uk

Doing Business with Mongolia

View of Ulaanbaatar from Zaisan Memorial

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CONTENTS 8 Mongolia overview 9

Welcome from Lesley Batchelor OBE, FIEx (Grad) â&#x20AC;&#x201C; Director General, Institute of Export & International Trade 12

Foreword from Philip Malone, Her Majestyâ&#x20AC;&#x2122;s Ambassador to Mongolia 14

Introduction from John Grogan, Chairman of the Mongolian British Chamber of Commerce

Why Mongolia?

16 About the Department for International Trade (DIT) 18 About UK Export Finance (UKEF) 22 About this Guide

Help available for you

24 Why Mongolia? 25 26 27 28 30

• • • • •

Summary Geography Political situation Economic overview UK and Mongolia trade

34 Help available for you 36

• Support from the Mongolian British Chamber of Commerce (MBCC) • Support from the UK Department for International Trade (DIT) • Support from the Institute of Export & International Trade (IOE&IT)

42 Getting here and advice about your stay 43 45 46 47

• • • • •

Entry requirements Money Local laws and customs Safety and security Health

52 Sector–speciﬁc opportunities 54 55 56

• • • • • •

Research Government tenders Agriculture sector Consumer goods sector Education sector Legal and financial services sector • Mining sector

CONTENTS 42 58 Preparing to export 59 60 62

• Consultation and bespoke research • Start-up considerations • Direct exports and sales • Financial considerations

66 How to do business with Mongolia 68 69 70 75

• Legal considerations • Taxation • Customs and documentation • Shipping your goods

78 Business etiquette, language & culture 79

• Language • Meeting and greeting

86 What are the challenges? 87

• Challenges and risks when doing business with Mongolia • Business risk

www.Mongolia.DoingBusinessGuide.co.uk

CONTENTS Resources

92 93

Supporting organisations contact details

Resources

What does membership of the Institute of Export & International Trade mean?

102 Market experts contact details

Focusing on qualifications. Lesley Batchelor OBE, FIEx (Grad) â&#x20AC;&#x201C; Director General, Institute of Export & International Trade The British Embassy Ulaanbaatar

106 Trade shows 107 Useful links 113 Map of Mongolia 118 Quick facts

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www.mongolianbusinessdatabase.com

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Mongolia overview

Stretching over 2,390 km from west to east and 1,260 km from north to south, Mongolia is a landlocked country situated in east-central Asia between China and Russia, and is more than six times the size of the UK â&#x20AC;&#x201C; about the combined size of west and central Europe. Since 1991, Mongolia has transformed into a vibrant parliamentary democracy, with rule of law and a free, lively media, three times the level of GDP per capita and vast agricultural and mineral resources including major deposits of coal, gold, copper, iron ore and uranium.

With increasing school enrolments, dramatic declines in maternal and child mortality and an increasingly educated population, the World Bank predicts double-digit growth figures for some years. The Mongolian Government is keen to develop its industry, and there are opportunities for UK companies in many areas.

Mongolia's GDP growth rate increased from 1.2% in 2016 to 5.3% in 2017 and 6.9% in 2018. This growth has been supported by steady commodity exports (such as copper and coal) and a recovery in FDI, as well as the Mongolian Governmentâ&#x20AC;&#x2122;s effective implementation of an economic adjustment programme. The outlook remains positive in 2019, supported by robust growth in private consumption as well as private investment in mining and manufacturing. MARKET EXPERTS

Thank you to our Market Experts

Welcome from Lesley Batchelor OBE, FIEx (Grad) – Director General, Institute of Export & International Trade

The ‘Doing Business with Mongolia Guide’ looks at a country that is more than six times the size of the UK, but with a population of just 3.1 million, making it the most sparsely populated nation in the world. Nearly half of its population lives in the capital of Ulaanbaatar, though its vast quantities of untapped mineral wealth have made it a significant market for foreign investors, injecting significant economic growth in recent years.

The landlocked giant is bordered by Russia and China, spanning both east and central Asia. A member of the Asia-Pacific Trade Agreement, Mongolia is the 96th largest economy in the world according to the OECD, is currently ranked 74th in the World Bank’s Ease of Doing Business rankings and has a GDP of US $11.4 billion. In 2017, Mongolia exported US $6.88 billion and imported US $4.5 billion, leaving it with a trade surplus of US $2.39 billion. Its main exports include coal briquettes, copper ore, gold, crude petroleum and iron ore, while it is a large importer of refined petroleum, cars, delivery trucks and electricity. Unsurprisingly, China is its largest export destination, followed by the UK, Switzerland, Russia and Italy; China and Russia also head its top import origins. In terms of UK-Mongolia trade, the US $633 million value of Mongolian exports to the UK far outweighs the US $31.7 million of imports going the other way, according to OECD figures. Cars are by far the largest UK export to Mongolia, representing 20% of the UK’s total export value; they are followed by aircraft parts (7%), polymer ion-exchanges (6%), large construction vehicles (5.9%), hard liquor (4.9%) and broadcasting equipment (4.6%). However, there are several opportunities for UK businesses – particularly in relation to the Mongolian Government’s keenness to maximise its abundant mineral resources.

The UK’s Department for International Trade states that there are opportunities for UK businesses in the mining and oil and gas industries, as well as in the supply of equipment and expertise, financing, and other professional, legal and consulting services. There are several UK businesses already operating in Mongolia, including PwC and KPMG.

Mongolia has a rising number of English speakers among its younger generations and a freely convertible currency. As well as this, Mongolia’s population is well educated with a 97.4% adult literacy rate and the country also boasts the lowest utilities costs in the region. As with any market, there are challenges, of course. As a landlocked country, the logistics of exporting to Mongolia can be costly. There are also frequent changes within its regulatory framework that businesses need to keep abreast of and in older generations English is less widely spoken.

In terms of business culture, Mongolians like to do business with people they know well. Family names were only reintroduced around a decade ago, so people tend to only use their first names. Gifts are exchanged as part of the business, though, as with any emerging market, you should ensure that you are complying with the UK’s anti-bribery laws when dealing with business partners in the market. Mongolia is a fascinating market and a rapidly growing one too. We at the Institute are, of course, more than happy to help you with your exports to Mongolia through our training, qualifications and technical helpline services – just get in touch! Lesley Batchelor OBE, FIEx (Grad) Director General – Institute of Export & International Trade www.export.org.uk

Foreword from Mr. Philip Malone LVO, Her Majesty’s Ambassador to Mongolia,

Welcome to this very first edition of the “Doing Business with Mongolia Guide”, published by the Institute of Export and International Trade, a major supporter of the ‘Exporting is GREAT’ campaign.

Mongolia is a fascinating and in many ways, unique, country. It has come a long way in the last 30 years and has evolved from being an authoritarian and centrallyplanned state into a vibrant democracy with a free market economy. Despite having a land mass roughly equivalent to the whole of Western Europe, it has a population of only 3 million, almost half of whom live in the capital, Ulaanbaatar. The legacy of Genghis Khan’s Great Mongol Empire can still be found throughout Eurasia.

As a lower middle-income and developing country, Mongolia is still a frontier market, though the economy has grown considerably since the early 2000s. The severe downturn of 2014-16 has passed, with growth in 2019 expected to be a healthy 7%. Mining remains the most significant part of the economy and represents around 90% of exports and 30% of GDP. Indeed, mining is the most prominent area for UK business engagement, with the most prominent being the $2 billion Rio Tinto investment in the Oyu Tolgoi copper/gold mine and the related supply chain for goods and services. Other UK investors are also active in Mongolia’s hugely valuable mineral resource sector.

It is not all about mining though. Mongolia is seeking to strengthen the agriculture and tourism sectors and, as in other parts of Asia, with increasing prosperity there are growing opportunities for example in retail, education, healthcare, and food and beverage. The UK is well represented in the financial sector with the big accounting firms all having a presence in Ulaanbaatar and a growing partnership between the London and Mongolian Stock Exchanges. Coupled with considerable goodwill towards the UK as the first Western country to establish diplomatic relations with Mongolia in the 1960s, there is great potential for UK trade and investment as we expand our horizons post-Brexit.

At the British Embassy Ulaanbaatar, we work hard to promote these interests and, with a four-strong DIT team, provide in-depth local expertise and support. So please get in touch as you explore the opportunities in the ‘Land of Eternal Blue Sky’!

Mr. Philip Malone LVO Her Majesty’s Ambassador to Mongolia https://www.gov.uk/world/organisations/british-embassy-ulaanbaatar 12

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Introduction from John Grogan – Chairman of the Mongolian British Chamber of Commerce

A British diplomat visiting Ulaanbaatar in the 1960s remarked that the people of Mongolia had a love of freedom and a capacity to make friendships. It was a remarkable statement about a nation that had been under communist influence for decades but perhaps provided a clue as to why, in the 1990s, democracy was established quite quickly unlike many countries in Central Asia. The fact that the United Kingdom was the first Western country to recognise Mongolia in 1963 is still often remarked upon. British soft power is important in providing starting points for conversations. A former Mayor of Ulaanbaatar remarked a few years ago: “That [British rock] music motivated me to participate in democratic change and revolution. When I was 18, Mongolia was a socialist regime and the government then did not let us listen to Western music and I wondered why we were not allowed to do it.” A statue of the Beatles stands outside the central department store and there are thousands of members of supporters of the major English football clubs.

Ever since the conquests of Chinggis Khan, Mongolia has always had one eye on Europe and many young people are fluent in English. At a diplomatic level Mongolian foreign policy is defined by the long standing ‘third neighbour policy‘. This is designed to allow Ulaanbaatar to boost bilateral and multilateral diplomatic relations with countries around the world. Landlocked between two politically, economically, and militarily powerful nations – Russia and China – the policy intends to use a Mongolian soft power approach to international relations as a modus operandi to tackle developing vital sectors such as education, science and technology, mining, and energy infrastructure. Britain is in fact a long standing trading partner with Mongolia, initially based on cashmere supplied particularly to companies in the North of England and the borders of Scotland. Over the last 20 years British investment in the mining sector and exports of equipment to the sector has become important. A whole range of UK entrepreneurs are now active in a range of service industries including architecture, legal services and education. The Department for International Trade is active in organising trade missions to Mongolia. The Mongolian British Chamber of Commerce, founded in 2010, organises a programme of seminars in London on the theme of ‘Doing Business with Mongolia‘ and a Burns Supper in Ulaanbaatar in January of each year. The British Business Group in Mongolia provides a focus for networking. Mongolia has a long term commitment to both democracy and the market economy. With growth rates now trending above 6%, now might be the time to take a look.

John Grogan Chairman, Mongolian British Chamber of Commerce John.grogan@mongolianbritishcc.org.uk | https://mongolianbritishcc.org.uk/

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UK Export Finance is the UK's export credit agency 2XU PLVVLRQ LV WR HQVXUH WKDW QR YLDEOH 8. H[SRUW IDLOV IRU ODFN RI ILQDQFH RU LQVXUDQFH IURP WKH SULYDWH VHFWRU ZKLOH RSHUDWLQJ DW QR QHW FRVW WR WKH WD[SD\HU :H KHOS 8. FRPSDQLHV RI DOO VL]HV DQG LQ DOO VHFWRUV ZLQ IXOILO DQG JHW SDLG IRU H[SRUW FRQWUDFWV :H SURYLGH LQVXUDQFH WR H[SRUWHUV DQG JXDUDQWHHV WR EDQNV WR VKDUH WKH ULVNV RI SURYLGLQJ H[SRUW ILQDQFH ,Q DGGLWLRQ ZH FDQ PDNH ORDQV WR RYHUVHDV EX\HUV RI JRRGV DQG VHUYLFHV IURP WKH 8. $V WKH ZRUOG V ILUVW H[SRUW FUHGLW DJHQF\ HVWDEOLVKHG LQ ZH YH EHHQ LQQRYDWLQJ VLQFH GD\ RQH /DVW \HDU ZH SURYLGHG Å&#x203A; ELOOLRQ RI VXSSRUW IRU 8. H[SRUWV KHOSLQJ FRPSDQLHV VHOO WR PDUNHWV DURXQG WKH ZRUOG DQG VXSSRUWLQJ DQ HVWLPDWHG 8. IXOO WLPH HTXLYDOHQW MREV RI DOO FRPSDQLHV VXSSRUWHG ZLWK ILQDQFH DQG LQVXUDQFH ZHUH VPDOO WR PHGLXP VL]HG EXVLQHVVHV.

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ABOUT THIS GUIDE

This guide aims to provide a route map of the way ahead, together with signposts to other sources of help.

The main objective of this Doing Business with Mongolia Guide is to provide you with basic knowledge about Mongolia; an overview of its economy, business culture, potential opportunities and to identify the main issues associated with initial research, market entry, risk management and cultural and language issues.

We do not pretend to provide all the answers in the guide, but novice exporters in particular will find it a useful starting point. Further assistance is available from the Department for International Trade (DIT) team in Mongolia. Full contact details are available in this guide.

To help your business succeed in Mongolia we have carefully selected a variety of essential service providers as ‘Market Experts’. The guide is available in 4 formats: •

• •

•

the website: www.Mongolia.DoingBusinessGuide.co.uk

this full colour hard-copy brochure

a ‘free’ downloadable 'mobile device-friendly’ app – available from the Apple App Store and Google Play Store

PDF download/e-flipbook (available to download from the guide website)

Doing Business with Mongolia Guide Team: Project Director:

Craig Smith

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James Clowes

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Creative Managers:

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The Genghis Khan Statue on horseback, at Tsonjin Boldog east of the Mongolian capital Ulaanbaatar

MOnGOLIA

WHY MOnGOLIA?

Why Mongolia?

Summary Area: 1,564,116 km2

GDP per capita: US $4,026.3

Population: 3.2 million

Annual inﬂation rate: 7.7%

Urban population: 68.4%

Unemployment rate: 10%

Population density: 2 people per km2

Fiscal balance: -3.4% of GDP

Population growth rate: 1.9% change

Current account balance: -US $1.9 billion/-14.6% of GDP

Capital city: Ulaanbaatar

Exports of goods to UK: £1 million

Oﬃcial language: Khalkha Mongolian

Exports of services to UK: £4 million

Currency: Mongolian Tughrik (Tögrög) (MNT)

Imports of goods from UK: £17 million

nominal GDP: US $13 billion

Imports of services from UK: £19 million

Real annual GDP growth: 6.9% [Source – FCO Economics Unit (May 2019), World Bank, gov.uk]

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Since 1991, Mongolia has transformed into a vibrant parliamentary democracy, with rule of law and a free, lively media, three times the level of GDP per capita and vast agricultural and mineral resources including major deposits of coal, gold, copper, iron ore and uranium. With increasing school enrolments, dramatic declines in maternal and child mortality and an increasingly educated population, the World Bank predicts double-digit growth ﬁgures for some years. The Mongolian Government is keen to develop its industry, and there are opportunities for UK companies in many areas. Contact a DIT Export Adviser at: https:// www.great.gov.uk/contact/triage/location/ for a free consultation if you are interested in exporting to Mongolia. Contact UK Export Finance (UKEF) about trade ﬁnance and insurance cover for UK companies. You can also check the current UKEF cover position for Mongolia. See: https://www.gov.uk/guidance/country-coverpolicy-and-indicators#mongolia. [Source – World Bank, DIT Trade and Investment guide: Mongolia, UKEF, gov.uk]

Geography Stretching over 2,390 km from west to east and 1,260 km from north to south, Mongolia is a landlocked country situated in east-central Asia between China and Russia, and is more than six times the size of the UK – about the combined size of west and central Europe. However, with a population of only 3.2 million, it is the most sparsely populated independent

nation in the world, with approximately half living in its capital, Ulaanbaatar. The land consists mostly of upland steppes, semi-deserts and deserts, although there are some forested, high mountain ranges in the far north and west. Over 75% of the land is pasturelands, which support large herds of grazing livestock, and about a further 10%-20% is desert. The Altai mountain range to the north and west of the country, towards the border with Russia, stretches 400 km southeastward along the Chinese border, and a further 750 km inland, and includes Mongolia’s highest mountain, Khüiten Peak, at 4,374 m above sea level. The Gobi Altai Mountains stretch eastwards from this range into the Gobi Desert. Lesser mountain ranges exist in the centre of the country (the Khangai mountains), with gentle slopes and pastureland, in the north (the Eastern Sayan mountains) and in the northeast along the Russian border and into Siberia (the Khentii Range). To the south and east is an enormous upland plateau belt towards the border with China. Between these are the basin areas which include the capital city of Ulaanbaatar. Mongolia has a continental climate, with long, very cold winters and short, cool to hot summers, with temperatures ranging from +35°C in summer to -40°C in winter. The entire country is prone to seismic movements and some severe earthquakes, although generally the eﬀect of these is limited by the very low population density. [Source – https://www.britannica.com/place/ Mongolia, DIT Trade and Investment guide: Mongolia, gov.uk]

Political situation After decades of single party Soviet-style communist rule, Mongolia’s new constitution came into eﬀect in 1992, creating a multi-party democracy whereby power is divided among independent legislative, executive, and judicial branches, with human rights guaranteed by law. Capital punishment was suspended by the President in 2010, pending abolition. The private ownership of land (excluding pastures) is now permitted by the state. However, it still retains control over water, forest, fauna, and underground resources. The Mongolian Great Khural (MGK), the unicameral national legislature under the constitution, is made up of members elected for four-year terms. The constitution provides for a directly elected President (the Head of State) who nominates the Prime Minister (the Head of Government) following advice from the majority party leader in the MGK. The government is formed by the Prime Minister in consultation with the President and the approval of the MGK. The President can veto or initiate legislation, but a Presidential veto can be overridden with a two-thirds vote by the MGK. Amendments to the constitution need to be supported by 75% of the MGK’s members, with observance of the constitution supervised by a Constitutional Commission of nine members, each serving for a six-year term. [Source – https://www.britannica.com/place/ Mongolia]

Gender inequality Mongolia ranks 92nd out of 189 countries in the 2018 United Nations Development Programme (UNDP) Gender Inequality Index (GII). For further information visit: http:// hdr.undp.org/en/countries/proﬁles/MNG. [Source – United Nations]

Mongolia’s imports and exports being traded directly with China. Although Mongolia has sought to increase trade with other countries, this has been hampered by a lack of direct access to the sea, as well as the need to use Russian and Chinese ports and transport systems, the long distances involved and consequent high transport costs.

Economic overview The Mongolian economy suﬀered a sharp slowdown between 2014 and 2016, driven by a fall in commodity prices and declining FDI. However, it has since strongly recovered, with its GDP growth rate increasing from 1.2% in 2016 to 5.3% in 2017 and 6.9% in 2018. This growth has been supported by steady commodity exports (such as copper and coal) and a recovery in FDI, as well as the Mongolian Government’s eﬀective implementation of an economic adjustment programme. The outlook remains positive in 2019, supported by robust growth in private consumption as well as private investment in mining and manufacturing, although short and medium-term risks include political uncertainty, commodity shocks, border delays, and poor handling of money laundering issues. There are also concerns that over 20% of GDP remains reliant on the mining sector. [Source – World Bank]

Economic growth Mongolia is a ‘lower middle income’ country with a GDP of US $13 billion. Its economy is highly dependent on trade with China and world commodity prices, with over 80% of

Therefore, by 2017 the Mongolian economy had stagnated, primarily due to: •

a fall in commodity prices

•

the slowing down of the Chinese economy

The resulting liquidity crisis needed help from the International Monetary Fund (IMF) to resolve, and Mongolia entered the IMF’s Extended Fund Facility programme on 24th May 2017. See: https://www.imf.org/en/ Publications/CR/Issues/2017/12/21/Mongolia -First-and-Second-Reviews-Under-theExtended-Fund-Facility-Press-Release-Staﬀ45505. According to its latest World Economic Outlook report, the IMF has now raised its projections for Mongolian economic growth for 2019 from 1.5% to 1.8%. See: https:// www.imf.org/en/Countries/MNG#ataglance. According to this report: “The economy continues its recovery, with growth exceeding 6 percent in 2018, amid supportive external conditions and sharply rising domestic demand. Both the strong growth and the authorities’ commitment to discipline on public spending have resulted in large over-performance on ﬁscal targets under the program.”

“To tackle signs of overheating pressures that are a headwind on further international reserve accumulation, the Bank of Mongolia has raised the policy interest rate and introduced macro-prudential measures to rein in excessive credit growth. The authorities stand ready to tighten further if necessary.”

Top goods and services imports into Mongolia UN Comtrade ranked Mongolia’s top imports of goods from the rest of the world during 2017-18 as: 1.

mineral fuels, oils, distillation products

vehicles (other than railway or tramway vehicles)

nuclear reactors, boilers and other machinery

“The rehabilitation of the banking system is a core part of the program.” [Source – IMF Country Report/OECD Economic Forecast Summary, https://www.britannica.com/ place/Mongolia, DIT Trade and Investment guide: Mongolia, gov.uk]

4. electrical and electronic equipment

Gateway to other markets China provides a ready market for much of Mongolia’s mineral exports as there are no duties, and with no taxes on exports, Mongolia can serve as a gateway to nearby markets provided you have a Mongolian partner, or are part of a joint venture.

iron and steel products

[Source – DIT Trade and Investment guide: Mongolia, gov.uk]

9. iron and steel

6. plastics and plastic products 7.

pharmaceuticals

8. rubber and rubber products

10. miscellaneous edible preparations Trade agreements Mongolia and Japan have signed an Economic Partnership Agreement which exempts 9,300 products from duties exported from Mongolia to Japan. See Japan’s Ministry of Foreign Aﬀairs website at: https://www.mofa.go.jp/a_o/c_m2/mn/page 3e_000298.html for further details. Mongolia has observer status in the Shanghai Cooperation Organisation, and is currently being considered for membership of the Asia-Paciﬁc Economic Cooperation (APEC) organisation.

See: https://comtrade.un.org/labs/dit-tradevis/?reporter=496&type=C&year=2017&ﬂow= 2&commodity for further information. UN Comtrade ranked Mongolia’s top services imports from the rest of the world during 2016-17 as: 1.

other business services

travel

transportation

www.Mongolia.DoingBusinessGuide.co.uk

4. ﬁnancial services 5.

construction services

Contact a DIT Export Adviser at: https://www.great.gov.uk/contact/triage/ location/ for a free consultation if you are interested in exporting to Mongolia.

6. communications services

9. government services

Contact UK Export Finance (UKEF) about trade ﬁnance and insurance cover for UK companies. You can also check the current UKEF cover position for Mongolia. See: https://www.gov.uk/guidance/country-coverpolicy-and-indicators#mongolia.

10. insurance services

[Source – DIT, UKEF, gov.uk]

computer and information services

8. royalties and licence fees

See: https://comtrade.un.org/labs/dit-tradevis/?reporter=496&type=S&year=2016&ﬂow= 2&commodity for further information. [Source – United Nations, DIT Trade and Investment guide: Mongolia, gov.uk]

World rankings In addition: •

•

In Transparency International's latest 2018 Corruption Perceptions Index (announced January 2019), Mongolia is ranked 93rd out of 180 countries (the UK ranks 11th): https://www.transparency.org/ country/MNG Mongolia is ranked 74th out of 190 countries in the World Bank’s 2019 Ease of Doing Business Index (the UK ranks 9th): http://www.doingbusiness.org/ en/data/exploreeconomies/mongolia The World Economic Forum’s Global Competitiveness Report 2018-19 ranks Mongolia 99th out of 140 (from 95th out of 135 in 2017-18): http://reports.weforum.org /global-competitiveness-report-2018/ country-economy-proﬁles/#economy =MNG

UK and Mongolia trade UK exports to Mongolia amounted to £36 million in 2018. The largest value UK exports are machinery and mechanical appliances, which make up approximately 20% of all UK goods exported to Mongolia. In addition, UK education, consultancy and financial services are also significant in Mongolia. Although they do not show in official trade statistics, there are many third country transactions for UK-originated equipment sold into Asia, for instance equipment sales to Singapore, which are then sold on to Mongolia. Major UK organisations operating in Mongolia include Rio Tinto, PwC, KPMG, Standard Chartered Bank, The London Stock Exchange, Cambridge University, Glasgow University and many others.

www.export.org.uk

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Benefits for British businesses Beneﬁts for British businesses exporting to Mongolia include: •

a younger generation with an increasing number of English language speakers

•

Mongolia is expected to be one of the world’s fastest-growing economies in the next few decades

•

the country has a freely convertible currency

Strengths of the Mongolian market Strengths of the Mongolian market include: •

a well-educated population with a 97.4% adult literacy rate

•

72% of the population is under 40, and is open to new products, services, and ideas

•

ﬂexible regulations for foreign ownership are possible

•

lowest utilities costs in the region

[Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Government Palace in Ulaanbaatar

MOnGOLIA

Taking part in overseas exhibitions is an effective way for you to test markets, attract customers, appoint agents or distributors and make sales.

HELP AVAILABLE FOR YOU

Help available for you

of all types, i.e. to carry out market research in relevant areas and to collect, publish, circulate or make known statistics, opinions and information relating to its members’ interest

Support from the Mongolian British Chamber of Commerce (MBCC) The MBCC is a not-for-proﬁt membership organisation established in 2009 to foster strong business links between Mongolia and the UK. It aims to provide a professional and social environment for business people who wish to be introduced to, and become part of, the British-Mongolian business culture and community. As such, it operates as a business networking hub for the community and for British companies with interests in Mongolia. The MBCC’s objectives include: •

The Mongolian British Chamber of Commerce now has nearly 50 corporate members and partners ranging in size from the biggest companies to sole traders. For more information about their activities in Mongolia, see: https://mongolianbritishcc.org.uk/ members/. If you would like to join the MBCC please visit their website at: https://mongolianbritishcc. org.uk/become-a-member/. [Source – The Mongolian British Chamber of Commerce (MBCC)]

to promote investment, joint ventures, training, research and development opportunities between companies in Mongolia and the United Kingdom

•

to liaise and maintain close ties with companies and relevant Government authorities in both Mongolia and the United Kingdom

•

to promote, organise and hold seminars and trade related fairs and to assist in the promotion, organisation and holding of such events for the purpose of exchanging personnel, information, expertise, business opportunities and methodology

•

to present, express and give eﬀect to the views and opinions of its members on matters aﬀecting their interests at international, national, regional and local government level

•

to contribute towards trade publications

Support from the UK Department for International Trade (DIT) The UK Department for International Trade (DIT) provides tailored support packages for companies who are: •

ﬁrst time exporters (FTEs)

•

small and medium-sized enterprises (SMEs)

•

medium-sized businesses (MSBs)

Business opportunities If you are a UK-registered company you can beneﬁt from a unique programme, ‘Exporting is GREAT’, presenting real-time export opportunities that you can apply for online. This is part of the drive to signiﬁcantly increase the number of UK companies exporting.

‘Exporting is GREAT’ is part of the UK Government’s GREAT campaign, and presents live export opportunities to UK businesses across a range of media outlets and digital channels. Hundreds of these export opportunities, with a potential total value of more than £300 million, are hosted on: https://www.great.gov.uk/. Selling online overseas Use this service to help choose a suitable online marketplace to sell your products overseas.

The programme enables you to: •

arrange a free meeting through your local DIT oﬃce to get expert international trade advice and support, and access to DIT’s global network of contacts. See: https://www.great.gov.uk/contact/triage/ location/

•

meet a Digital Trade Adviser where relevant, to help you develop and implement an international online strategy

•

set up on e-marketplaces quickly and also identify new e-marketplaces around the world

•

access better-than-commercial rates to list on some e-marketplaces, including lower commission fees and ‘try for free’ periods. See: https://www.gov.uk/ guidance/e-exporting#preferentialrates

•

access the ‘E-Expertise Bank’, a community of over 175 B2B/B2C service providers oﬀering free advice. See: https://www. gov.uk/guidance/e-exporting#eexpertise

•

join DIT’s mailing list for opportunities to hear from industry experts, network with like-minded individuals and ﬁnd out about e-commerce trends

You can: •

ﬁnd major online marketplaces in other countries

•

see whether these online marketplaces are suitable to sell your products

•

discover how to list your products on an online marketplace

•

get information about costs of listing on the marketplace and how logistics are fulﬁlled

•

access special terms negotiated by the UK Government

DIT E-Exporting Programme DIT’s E-Exporting Programme aims to help you get your brand to millions of global consumers and grow your business through online exports. DIT’s E-Exporting Programme helps you if you are a UK company: •

new to selling online

•

already selling online, but need help with speciﬁc issues

•

experienced in online sales, but are looking to sell on multiple platforms globally

Find-a-buyer service This is the place to let international buyers know all about your business, to highlight the vital facts about your company and give buyers conﬁdence to get in touch; show oﬀ your company's experience and outstanding projects to give potential buyers more insight; get emails from international buyers straight to your sales or business development teams and see relevant government-supported export development events where overseas buyers will be attending.

www.Mongolia.DoingBusinessGuide.co.uk

Events and missions Taking part in overseas exhibitions is an eﬀective way for you to test markets, attract customers, appoint agents or distributors and make sales. DIT's Tradeshow Access Programme (TAP) provides grant support for eligible SMEs to attend trade shows overseas. Participation is usually as part of a group – a great advantage for inexperienced businesses – and is usually led by one of DIT's Accredited Trade Associations (ATOs). ATOs work with DIT to raise the proﬁle of UK groups and sectors at key exhibitions. The DIT calendar of events has some 400 core events and missions, and 1,000 opportunities across the Trade Access Programme and the English national regions.

These events allow you to interact with the experts in speciﬁc sectors and countries and allow you to ask questions to enhance your knowledge. To see upcoming DIT webinars, please visit: https://www.events.great.gov.uk/ehome/index. php?eventid=200183029& and search for webinars. Other DIT services DIT assists new and experienced exporters with information, help and advice on entering overseas markets such as Mongolia. These services include: •

an Export Health Check to assess your company’s readiness for exporting and help develop a plan of action

DIT Events Portal The DIT Events Portal provides a single calendar view of all DIT events and missions, and has been developed to provide you with more detailed information on each event in order to help you decide on the most appropriate event to attend. The calendar can be ﬁltered and searched by sector and/or market.

•

training in the requirements for trading overseas

•

access to an experienced local International Trade Adviser

•

help to grow your business through online exports

There are also detailed events websites which include more information about each event, and also allow you to register for an event. The DIT Events Portal is your central hub for business and networking opportunities. Search for future events and missions, register online and network with fellow delegates. See: https://www.events.great.gov.uk/ehome/ index.php?eventid=200183029&.

•

specialist help with tackling cultural issues when communicating with Mongolian customers and partners

•

advice on how to go about market research and the possibility of a grant towards approved market research projects

•

ongoing support to help you continue to develop overseas trade, and look at dealing with more sophisticated activities or markets

•

information, contacts, advice, mentoring and support from DIT staﬀ in the UK and their network of staﬀ in Mongolia

DIT webinars The DIT webinar service runs hundreds of free hour-long internet events covering topics, sectors and countries around the world, helping you shape your export plan.

•

support to participate in trade fairs in Mongolia

•

opportunities to participate in sectorbased trade missions and seminars

•

access to major buyers, local government and supply chains in Mongolia

•

advice on forming international joint ventures and partnerships

•

exploratory visits to Mongolia

•

alerts to the latest and best business opportunities

To ﬁnd out more about commissioning any of these services contact a DIT Export Adviser at: https://www.great.gov.uk/contact/triage/ location/ for a free consultation, or see further details at: https://www.gov.uk/ government/organisations/department-forinternational-trade/about-our-services. In-market support If you already export, and have decided Mongolia is part of your business strategy, you are advised to contact DIT at the British Embassy Ulaanbaatar prior to your visit to discuss your objectives and what help you may need. See: https://www.gov.uk/world/ organisations/department-for-internationaltrade-mongolia#contact-us. They can provide a range of Mongolia-speciﬁc services for you, including the provision of market information, validated lists of agents /potential partners, key market players or potential customers; establishing interest from such contacts; and arranging in-market appointments. In addition, they can also organise events for you to meet contacts in Mongolia, or to promote your company and your products/services.

For further information about DIT services, see: https://www.gov.uk/government/ organisations/department-for-internationaltrade/about-our-services.

employers and employees with the necessary international business practice linked to satisfying career planning and development. See: https://www.export. org.uk/page/qualiﬁcations

[Source – DIT/gov.uk]

•

A range of short courses giving you the skills and expertise you need to gain a competitive advantage in the challenging and complex world of export, import and international trade. See: https://www. export.org.uk/page/TrainingCourses

•

An extensive events programme to help you share information and connect at every level in the international trade community, whether it is sector-speciﬁc or regional. See: https://www.export.org. uk/events/event_list.asp

•

Inclusion in surveys to research the attitudes and changes to world trade

Support from the Institute of Export & International Trade (IOE&IT) Raising the profile of international trade qualifications and experienced members is only part of how IOE&IT membership is essential for any individual or business involved with global trade. Importantly, the IOE&IT also offer access to a unique range of benefits and services specific to international trade: •

•

Help with any export issues you come across. Our team of experts can help with questions on documentation, export controls, the UK Bribery Act, customs and VAT procedures, regulatory and compliance issues, insurance issues, payment terms, transport and logistics. Members get free access to our experts via a technical helpline. See: https://www. export.org.uk/page/Export_Helpline A voice for your ideas and concerns. We represent your point of view and feed back to government, HMRC and other influencing bodies on issues that impact you, plus participate in Institute responses to central government with regard to proposed legislative changes A complete range of international trade qualifications – for those that have no experience, up to those who wish to qualify themselves to take a business degree. The Institute's qualifications are widely recognised as providing both

For more information on how the IOE&IT can help you, or on becoming a member, contact the IOE&IT at: https://www.export. org.uk/page/about. Open to Export Open to Export is the IOE&IT’s free online advice service for UK companies looking to grow internationally. It oﬀers free information and support on anything to do with exporting and hosts online discussions via its forum, webinars and social media, where businesses can ask any export question and learn from each other. Open to Export can be accessed at: http://opentoexport.com/. [Source – Institute of Export & International Trade]

Transsiberian Railway with locomotive and steam crossing through Mongolia on a sunny summer day (near Ulaanbaatar, Mongolia, Asia)

MOnGOLIA

The Mongolian currency is the Tughrik (Tรถgrรถg), abbreviated to MNT. Mongolia is still a cash-based society, although you can use credit cards in some hotels, shops and restaurants in Ulaanbaatar.

GETTInG HERE AND ADVICE ABOUT YOUR STAY

Getting here and advice about your stay

Entry requirements Passport validity Your passport should be valid for a minimum period of six months from the date of entry into Mongolia. Visas You need a visa to visit Mongolia. A Mongolian visit visa is usually valid for a stay of up to 30 days within six months from the date of issue, and you can extend your visa up to 30 further days once within six months. Full details can be found at the Mongolia Immigration Agency. See: https://immigration.gov.mn/index.php. The Mongolia Immigration Agency may ask you to pay for the correct visa if you arrive in Mongolia with the wrong one, or they may even deny you entry. Contact the Mongolian Embassy in London before you travel to conﬁrm the appropriate visa requirements for your visit. See: http://embassyofmongolia.co. uk/?lang=en. On arrival the Mongolian Border Agency will collect biometric data (scanned ﬁngerprints) from you. Registration If you intend to remain in Mongolia for more than 30 days, or if you do not have an entry/exit visa, you will need to register your stay with the Mongolia Immigration Agency in Ulaanbaatar within a week of arriving. See: http://www.immigration.gov.mn/index. Once registered, you will be issued with a residence permit including your date of birth, passport number, address, photograph and

fingerprints, which you should carry with you at all times when in Mongolia. Onward travel to China or Russia If you are planning to travel to China or Russia from Mongolia, seek advice from the Chinese Embassy in London (http://www.chineseembassy.org.uk/eng/visa/) and the Russian Embassy in London (http://ru.vfsglobal.co.uk/ contact_us.html#1) for the latest visa requirements before you travel to Mongolia as it can be difficult to obtain visas for China and Russia once in Mongolia. Foreigners who are not residents of Mongolia have not always been able to get Chinese visas from the Chinese Embassy in Ulaanbaatar, so if you plan to travel to Mongolia and then onward to China, you should obtain your Chinese visa before the start of your trip. Departure from Mongolia Visitors who have been in Mongolia for more than 90 days must obtain an exit visa to leave the country. The exit visa is obtained from the Mongolia Immigration Agency office and usually takes ten days to process. Visitors to Mongolia for less than 90 days do not need an exit permit. However, requests to exit Mongolia can be denied for reasons such as civil disputes, pending criminal investigations or immigration violations. Emergency Travel Documents (ETDs) You can only use a UK Emergency Travel Document (ETD) to enter Mongolia if you are a permanent resident, or for airside transit. ETDs can be used to exit Mongolia. If your ETD has been issued in Mongolia and you are a permanent resident in Mongolia, you will need an exit visa from the Immigration Authority.

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If you do not have a residence permit you do not need an exit permit to exit Mongolia on an ETD. Border crossings The Mongolian authorities can regard zones of up to 100 km inside the oﬃcial border as a border area. Foreign nationals are not routinely permitted access to these border areas, but if you need to travel in these areas you must get permission from the State Frontier Guard Authority. There are currently only eight border crossings open to British passport holders: •

Chinggis Khaan International Airport in Ulaanbaatar

•

the road/train crossing to China at Zamin Uud

•

the road crossing to China at Bulgan in the west

•

the road crossing to China at Bichigt in the southeast

•

the road crossing to Russia at Tsagaannuur in the far west

•

the train crossing to Russia at Sukhbaatar

•

the road crossing to Russia at Altanbulag

•

the road crossing to Russia at Ereen-Tsav

inform the tax authorities and border troops in advance. If you are travelling by train across the China/Mongolia border you are likely to have a delay of a few hours as the railways use diﬀerent gauges. If entering Mongolia by train from Russia you may encounter problems with Russian border or customs oﬃcials as they scrutinise documentation (in particular customs declarations) very carefully. If you are crossing overland to or from Russia you should therefore pay scrupulous attention when completing the necessary paperwork. Entering Mongolia by car If you bring a car into Mongolia you may have to pay a small fee, and if you do not leave with the same car you may also have to pay an import tax either on departure, or at a later date after you have returned to the UK. If you are entering Mongolia by car you should therefore familiarise yourself with Mongolian Customs Law at: http://www. customs.gov.mn/en/2012-03-14-03-2137/2012-03-14-03-22-33/278-regardingthe-regulations-and-procedures-to-crossmotor-vehicles-through-the-mongolianborder.

Other border points are either seasonal or are open only to Mongolians, Chinese or Russians.

You can also visit the FCO Foreign travel advice for Mongolia pages at: https:// www.gov.uk/foreign -travel-advice/ mongolia/entry-requirements to check the latest customs requirements for taking a private car into Mongolia as they are quite detailed and may change at short notice.

If you plan to bring a vehicle into Mongolia at any of the border crossings you will need to

[Source – FCO Foreign travel advice: Mongolia, gov.uk]

Money The Mongolian currency is the Tughrik (Tögrög), abbreviated to MNT. Mongolia is still a cash-based society, although you can use credit cards in some hotels, shops and restaurants in Ulaanbaatar. ATMs are widely available in Ulaanbaatar and are becoming more common in other towns. Some international debit cards can be used to withdraw Mongolian Tögrögs, but travellers’ checks are no longer accepted. Money can be transferred to Mongolia using commercial organisations such as Western Union (https://www.westernunion.com/gb/en/home .html) or MoneyGram (https://secure.money gram.com/mgo/us/en/). [Source – FCO Foreign travel advice: Mongolia, gov.uk]

Local laws and customs Show appropriate respect in Buddhist monasteries and other religious buildings at all times, and be aware of your actions to ensure that they do not oﬀend. Always ask permission before taking photographs, and avoid touching any sacred images or objects. Although many Mongolians are used to seeing foreign visitors, try to research and respect local traditions and customs, particularly if calling on a Mongolian family or visiting remote areas – customs such as wearing short sleeves or stepping on a door threshold can cause oﬀence. Relationships Mongolia is a conservative society, particularly outside major conurbations such as Ulaanbaatar. Some Mongolian men are not happy to see a Mongolian woman in a

relationship with a foreign man – it is advisable to be discreet to avoid causing offence. Although homosexuality is not illegal, it is generally not socially accepted. See the UK Government’s information and advice for the LGBT community at: https://www.gov.uk/ guidance/lesbian-gay-bisexual-andtransgender-foreign-travel-advice before you travel. Identity documents If you are a resident in Mongolia you should carry your Registration Card at all times, as police sometimes carry out checks of identity documents. Alternatively, if you are just visiting Mongolia you must carry your passport at all times (a photocopy is not sufficient), as failure to show your identity documents may lead to a fine. You are advised to leave a photocopy of the details page and the page with your border immigration stamp separately in a safe place. Legal disputes In Mongolia the possession and use of drugs is illegal, and if found guilty you could face a very long prison sentence. Never photograph the police, police escorts, or the military. These are all considered criminal offences in Mongolia. As a signatory to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), it is illegal in Mongolia to buy, sell, kill or capture any protected wild animal or trade its parts without a licence, and if you are found to be purchasing or trafficking illegal goods you will be prosecuted and receive a prison sentence and fine.

www.Mongolia.DoingBusinessGuide.co.uk

You could become subject to a travel ban and prevented from leaving Mongolia if you become involved in a commercial dispute or a criminal investigation, until the issue is fully resolved. If so, you should contact the Consular section of the British Embassy Ulaanbaatar. See: https://www.gov.uk/world/ organisations/british-embassy-ulaanbaatar. [Source – FCO Foreign travel advice: Mongolia, gov.uk]

Safety and security Crime Around 6,000 British nationals visit Mongolia annually, and most visits are trouble free. Although most crime in Mongolia is nonviolent, violent incidents do occur. Petty crime is common, particularly in Ulaanbaatar. Be aware of pickpockets, particularly in markets or other crowded public places, and of large groups of people, including children and teenagers, who sometimes harass pedestrians for money. You should keep your mobile phone secure as these are often targeted by thieves in the streets. Look after your passport at all times, especially in major transport hubs and busy areas in airports, and do not display signs of wealth such as jewellery, etc. Be especially careful when walking at night and while using public transport and unlicensed taxis. Take extra safety precautions during festive months too – New Year, Tsagaan Sar (December to February) and also Naadam (July), as violent incidents increase during these times. Thefts should be reported to the nearest district police station, which can provide a letter for insurance purposes. In an emergency call the police on 102 (or +976 102 from an

international mobile phone), where there should be someone available who can speak to you in English. Road travel You will need an International Driving Permit (IDP) if you intend on driving in Mongolia. See: https://www.theaa.com/driving-advice/ driving-abroad/idp for details of where to apply. You should also try to familiarise yourself with local driving law. See: http:// www.traffic-institute.mn/ for further details. Due to the dramatic growth in the number of vehicles in Ulaanbaatar, driving standards are highly variable. Driving is hazardous because of the heavy congestion, and there is minimal signposting and a high number of accidents. Often vehicle maintenance can be poor, and this is even true for rental vehicles. Always wear seat belts where they exist, and avoid driving at night. If at all possible use an experienced, professional driver familiar with local driving conditions. Travelling outside the cities can be difficult too, and is potentially dangerous as Mongolia does not have an extensive road network. Distances are great between settlements, and there may be just tracks in the dust, mud or sand and little or no other traffic to follow. Bear in mind that Mongolia can experience extremes of weather, ranging from +35°C in summer to -40°C in winter, and because of the altitude, weather conditions can change at short notice without warning. Even in summer, evenings can be cold. There are areas of the country without mobile phone coverage and Global Positioning Systems do not always work. You are therefore advised to take back-up communications with you, such as a satellite phone, plus plenty of water, food and warm blankets. You should always ensure someone knows your route and times of arrival and departure.

Communications Most UK phone networks are not widely available in remote areas, but work in cities, and WiFi is available in many bars and restaurants, particularly in Ulaanbaatar. Local SIM cards and mobile phones are readily available and can be bought at reasonable prices. Air travel When making travel plans, you should bear in mind that ﬂights can be disrupted due to severe weather conditions and maintenance issues, and domestic services (including helicopter services) in Mongolia may not always comply with international safety standards. Rail travel As Trans-Mongolian express trains (Beijing to Moscow via Ulaanbaatar) are known to be used for smuggling, you are advised to search your compartment, and secure the cabin door before departure. Political situation There have been occasional instances of civil and political unrest resulting in demonstrations and in some cases violence. It is advisable to avoid large gatherings and demonstrations. Terrorism There is no recent history of terrorism in Mongolia. However, there is a heightened threat of terrorist attacks globally against UK interests and British nationals. You should remain vigilant as indiscriminate attacks, particularly in public places (including those frequented by foreign travellers and expatriates), cannot be ruled out. Visit: https://www.gov.uk/guidance/reduceyour-risk-from-terrorism-while-abroad to ﬁnd out how to minimise your risk and what to do in the event of a terrorist attack.

[Source – FCO Foreign travel advice: Mongolia, gov.uk]

Health Check the Mongolia-specific pages of the TravelHealthPro website at: https://travel healthpro.org.uk/country/151/mongolia at least eight weeks prior to travelling, to assess any health risks specific to you. This will allow time for any necessary vaccinations. You can also receive useful information, advice and guidance from NHS (Scotland) via the FitForTravel website at: https://www.fitfor travel.nhs.uk/destinations and the NHS Choices website at: https://www.nhs.uk/ using-the-nhs/healthcare-abroad/. General information on travel vaccinations and a travel health checklist are also available here. You may then wish to contact your health adviser or pharmacy to help manage any pre-existing medical conditions while you are abroad. The legal status and regulations of some medicines from the UK may be different in Mongolia so it would be advisable to seek advice or check with the Mongolian Embassy before travelling. You should take a copy of your prescription or a letter from your doctor to confirm that you are required to take the medication you are carrying. It is worthwhile to take surplus medication with you, as some medicines may not be readily available in Mongolia, or may be counterfeit if they are. You are only allowed to bring medicines for personal use into Mongolia, including those for urgent aid for up to seven days, or for the treatment of diabetes, cancer, mental illness or HIV/AIDS, for which you must have a doctor’s prescription. You should carry all medicines in your checked baggage if you are arriving by plane.

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Guidance is available from NaTHNaC at: https://travelhealthpro.org.uk/factsheet/43/ medicines-abroad on the best practice for travelling with medicines. For further information on the legal status of a speciﬁc medicine you should contact the Embassy of Mongolia in the UK at: http:// embassyofmongolia.co.uk/?lang=en. If you need emergency healthcare when in Mongolia dial 103 and ask for an ambulance, and contact your insurance company promptly if you are referred to a medical facility for treatment. The standard of healthcare is variable, particularly outside Ulaanbaatar – and, even there, only basic healthcare is the norm. You may need to pay cash to doctors and hospitals in advance of treatment.

FCO foreign travel advice If you are travelling to Mongolia for business, the Foreign & Commonwealth Oﬃce (FCO) website has travel advice to help you prepare for your visit overseas and to stay safe and secure while you are there. For up-to-the-minute advice please visit the foreign travel pages on the gov.uk website: https://www.gov.uk/foreign-travel-advice/ mongolia. Travel insurance You should ensure you have comprehensive travel and medical insurance before you travel.

Medical bills in Mongolia can be very substantial, so make sure you have adequate travel health insurance plus accessible funds to cover any medical treatment while in Mongolia, as well as repatriation if necessary. You should be aware that because of coal-powered heating there can be very high levels of air pollution in Ulaanbaatar, particularly in winter, which can aggravate bronchial, sinus and asthma conditions. [Source – Foreign travel advice: Mongolia, gov.uk]

The panoramic view of the entire city of Ulaanbaatar, Mongolia

MOnGOLIA

Mongolians value education and have made it their priority to educate their children. Many are prepared to pay premium price for the best quality education.

SECTORâ&#x20AC;&#x201C;SPECIFIC OPPORTUnITIES

Sector-specific opportunities

Research Before exporting to Mongolia, you should carry out extensive planning and market research. Ideally you should use both desk research and market visits as you will need to determine whether there is even a market for your product or service, and if your pricing is competitive. Contact the Department for International Trade (DIT) trade specialists to ﬁnd local representatives for your products via: https://www.gov.uk/overseas-customersexport-opportunities. From its worldwide network, DIT can provide international export sales leads. Find export opportunities in Mongolia at: https://www. great.gov.uk/export-opportunities/. For more information about opportunities and advice on doing business with Mongolia contact DIT at: https://www.gov.uk/world/organisations /department-for-international-trademongolia#contact-us. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Do not forget to check that your goods meet legal requirements for export at the UK Export Control Joint Unit (ECJU) (formerly known as the Export Control Organisation) at: https://www.gov.uk/government/ organisations/export-control-organisation.

Government tenders Many countries have specific rules in place to regulate public procurement. However, in some instances these can include limitations which favour nationals of the host nation, although such procurement agreements do guarantee some transparency in procedures too. However, corruption is a very high risk in the public procurement sector in Mongolia, and bribes and irregular payments are common in the awarding of both public contracts and licenses, with approximately 25% of companies expecting to give gifts to secure a government contract. Although Public Procurement Law mandates all government purchases of goods and services be conducted through a tender process, it is not unusual for the successful applicants to be politically well connected. See the GAN Business Anti-Corruption Portal page for Mongolia at: https://www.ganintegrity. com/portal/country-profiles/mongolia/ for further details. Including Mongolian goods and services as part of your company's bid, or partnering with a Mongolian firm, may improve your chance of success. Check with DIT in Ulaanbaatar at: https://www.gov.uk/world/organisations/ department-for-international-trade-mongolia #contact-us for assistance and information about third party advisers if you decide to have your tender bids submitted by a domestic company or consultant. [Source – GAN Business Anti-Corruption Portal, DIT Trade and Investment guide: Mongolia, gov.uk]

Opportunities for UK businesses The Mongolian Government is keen to develop its industry, and there are opportunities for UK companies in many areas, including: •

mining

•

oil and gas exploration and extraction

•

supply of equipment and expertise

•

infrastructure, such as rail and power plants

•

ﬁnancing of mining projects

•

other ﬁnancial, professional, legal and consulting services

Contact: commercial.mongolia@fco.gov.uk for more information on opportunities in Mongolia’s agriculture sector. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Consumer goods sector

The Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities in Mongolia at: https://www. great.gov.uk/export-opportunities/. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Disposable incomes of many Mongolians have risen dramatically due to the growing economy. This has brought with it opportunities for manufacturers of consumer goods and retailers. Quality branded goods are making strong inroads on the high street. Opportunities for UK companies include: •

fashion retail

•

food and drink

Contact: commercial.mongolia@fco.gov.uk for more information on opportunities in Mongolia’s consumer goods sector. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Agriculture sector Mongolia has vast herds of sheep, goats and cattle. There is considerable demand from Russia, China, Korea, and Japan for these products. However, quotas and restrictive health regulations inhibit the meat trade among Mongolia and its neighbours. This oﬀers an opportunity for British companies with expertise in meat processing and marketing technologies. Existing Mongolian processing facilities require upgrading to increase production capacity, quality, and sanitation.

Education sector Mongolians value education and have made it their priority to educate their children. Many are prepared to pay premium price for the best quality education. International curricula are being designed and implemented into the Mongolian education system, but it will take years yet to be embedded. Technical, Vocational Education and Training (TVET) style courses are popular.

www.Mongolia.DoingBusinessGuide.co.uk

Skills are recognised as important to developing a diversiﬁed economy and increasing employment opportunities. British education is considered as high quality, so opportunities exist for British schools and standards.

[Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Opportunities for UK educational organisations and companies include:

Mongolia is estimated to hold $1.3 trillion in mineral deposits, but only 25% of the country has been geologically surveyed. Major exports include:

•

partnering for transnational education

•

student recruitment in all areas, especially in science, technology, business, ﬁnance and English language

Mining sector

•

copper

•

gold

Contact: commercial.mongolia@fco.gov.uk for more information on opportunities in Mongolia’s education sector.

•

molybdenum

•

coal

[Source – DIT Trade and Investment guide: Mongolia, gov.uk]

•

ﬂuorspar concentrates

Legal and financial services sector

China provides a ready market for Mongolia’s mineral wealth. As with all industrial sectors in Mongolia, the aging infrastructure is a major concern.

Demand has risen for legal and ﬁnancial services as foreign investors have entered the market, seeking high return investment opportunities in Mongolia.

•

mining exploration, extraction and production

A number of UK ﬁrms have representative oﬃces in Mongolia.

•

supply of mining equipment and technologies

•

engineering consultancy services

•

training services

Opportunities for UK companies include:

Opportunities for UK companies include: •

consultancy (legal and ﬁnancial)

•

investment

•

training services

Contact: commercial.mongolia@fco.gov.uk for more information on opportunities in Mongolia’s legal and ﬁnancial services sector.

Contact: commercial.mongolia@fco.gov.uk for more information on opportunities in Mongolia’s mining sector. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Truck in south Mongolia

MOnGOLIA

A minimum of US $100,000 per investor of â&#x20AC;&#x2DC;charter capitalâ&#x20AC;&#x2122; is required to create a foreign business entity, which has to be paid into a Mongolian bank account prior to registration.

PREPARInG TO EXPORT

Preparing to export

Your aims: •

Do you wish to buy from Mongolia, sell to Mongolia or both?

•

Do you wish to establish your own company presence in Mongolia (for example a Limited Liability Company (LLC), a Joint Stock Company (JSC), a representative or branch oﬃce, a partnership or Direct Exports using an agent, distributer or wholesaler)?

•

Do you need to be involved in Mongolia at all?

•

Do you see Mongolia as part of a wider plan including e.g. other East Asian markets, now or in the future?

Consultation and bespoke research There is a range of online information for exporters including advice and guidance on how to thoroughly research overseas markets. Visit: https://www.great.gov.uk/ for more information. Researching the Mongolian market Ideally you should make regular visits to Mongolia as well as making contact with others in your industry/sector. This will enable you to access the most up-to-date advice and information, and may lead to new insights, or at the very least form the foundation for further research. Visit: https://www.great.gov.uk for information and guidance on how to develop your marketing strategy, competitor and SWOT analyses and customer/market segmentation. The IOE&IT can also oﬀer help with this. Visit: https://www.export.org.uk/. You will need to determine whether there is a market for your product or service, if your pricing is competitive, and whether to adapt your business model. The questions listed here should help to focus your thoughts. Your answers to them will highlight areas for further research and also suggest a way forward that is right for your company. You may then want to use this as a basis for developing a formal Mongolia strategy, although this may not be necessary or appropriate for all companies:

Your company: •

Can you carry out a detailed SWOT analysis of your company?

•

Are your competitors already in Mongolia? If so, what are they doing?

•

Can you carry out a detailed SWOT analysis of your competitors?

•

What are the Unique Selling Points (USPs) of your product or service?

•

Do you know if there is a market for your product or service in Mongolia?

•

Do you know if you can be competitive in Mongolia?

•

Do you have the time and resources to handle e.g. the demands of communication, travel, product delivery and after-sales service?

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Your knowledge: •

Do you know how to secure payment for your products or service?

•

Do you know where in Mongolia you should start?

•

Do you know how to locate and screen potential partners, agents or distributors?

•

Have you carried out any Mongolia-speciﬁc customer segmentation, and do you know how to best reach potential customers in-market?

It is unlikely that you will have the answers to all these questions at the outset and these ‘knowledge gaps’ could form the basis for further research and investigation. Some of these questions will require quantitative research in your sector, while others involve more contextual and cultural considerations. Talking to other people in your industry and regularly visiting Mongolia will give you access to the most current advice and such experience can often lead to new insights and form the basis for further research. Guidance on developing an export plan, including marketing strategy, customer segmentation, competitor and SWOT analyses, etc. is available on the: https:// www.great.gov.uk/ site, and also on the Open to Export site at: https://opentoexport.com/ info/export-action-plan/. One option to test how viable your product or service could be in the Mongolian market would be to attend trade shows, which are generally held in Mongolia each year. The Department for International Trade (DIT) provides funding for eligible businesses in the

form of grants to enable them to attend trade shows overseas via the Tradeshow Access Programme. Visit: https://www.gov.uk/ guidance/tradeshow-access-programme for more information. The funding helps your business to gather market knowledge, gain experience in attending and getting the most from overseas trade shows, and to receive advice and support from trade experts. To discover future events and trade missions in Mongolia, visit the DIT events portal at: https://www.events.great.gov.uk/ehome/ index.php?eventid=200183029&. For company launches and events held at British Embassy and Consulate locations, contact the Department for International Trade (DIT) in Mongolia at: https://www.gov.uk /world/organisations/department-forinternational-trade-mongolia#contact-us. [Source – DIT, gov.uk]

Start-up considerations Getting started in the Mongolian market Theoretically it takes 14 days to set up a business in Mongolia. A minimum of US $100,000 per investor of ‘charter capital’ is required to create a foreign business entity, which has to be paid into a Mongolian bank account prior to registration (but can be withdrawn after registration). If a foreign investor holds 25% or more interest, their business entity is regarded as ‘foreign-invested’, and if their projects meet certain requirements they may qualify for favourable tax treatment for up to 27 years.

Business entities Four types of business entity are permissible for foreign investors: •

Limited Liability Company (LLC), which can have up to 50 shareholders, or one owner

•

Joint Stock Company (JSC), which must have MNT10 million of capital to list on the Mongolian Stock Exchange, and one third of its board as non-shareholders

•

representative and branch oﬃces, which cannot conduct commercial activities

•

partnerships, which can conduct commercial activities

All companies need to register with the General Authority for State Registration (GASR) at: http://burtgel.gov.mn/eng/. By setting up a foreign invested company, you get legal protection and can obtain a year-long multi-entry Investor’s Visa to Mongolia. You can also enter the Mongolian market by ﬁnding a local partner and granting them distributorship rights. You can avoid costly mistakes by seeking help and advice from a local lawyer, as the tax and legal obligations of each business structure can diﬀer. A list of local lawyers in Mongolia is available at: https://www.gov.uk/government /publications/mongolia-list-of-lawyers or you can contact the Department for International Trade (DIT) in Ulaanbaatar at: http://www. gov.uk/world/organisations/department-forinternational-trade-mongolia#contact-us for help. Once you have chosen your route of entry into the Mongolian market, due diligence checks are essential. If you wish to develop and establish a business relationship which

will go beyond exporting you will need to carry out further research. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Direct exports and sales Direct export means supplying your products /services directly to the customer and involves you taking care of the logistics of marketing, selling, sending overseas and getting paid. It is possible to carry out direct exports with Mongolia. However, due to cultural aspects, it is recommended that you use local representation, for example by using an agent, distributor or wholesaler who is physically present in the market, and to visit the market frequently. Distributorship agreement You should research a number of potential agents or distributors before choosing one, looking, for example, at their local reputation, marketing ability and resources. Beware of agents who are promoting products or services which are the same or similar to yours. Contact a specialist trade adviser at the Department for International Trade (DIT) at: https://www.gov.uk/overseas-customersexport-opportunities or the DIT team in Ulaanbaatar at: http://www.gov.uk/world/ organisations/department-for-internationaltrade-mongolia#contact-us for help locating and meeting potential Mongolian agents and distributors. Online selling The Department for International Trade (DIT) can help you export your goods to Mongolia through the E-Exporting Programme. Find out more at: https://www.gov.uk/guidance/ e-exporting.

DIT has also negotiated listings at betterthan-commercial rates. See online marketplaces in Mongolia at: https://www. great.gov.uk/selling-online-overseas/. Franchising For information on franchising visit the international section of the British Franchise Association website at: http://www.thebfa. org/international. [Source – DIT Trade and Investment guide: Mongolia, British Franchise Association, gov.uk]

Financial considerations Getting finance to fulfil an export contract Globally, Mongolia ranks 22nd out of 190 economies in the World Bank’s ‘Doing Business – Ease of Getting Credit’ report 2019. See: http://www.doingbusiness.org/ en/data/exploreeconomies/mongolia. There are schemes available to simplify the growth of your business and to fulﬁl an export contract for UK companies that wish to sell products and services to Mongolia. Contact your bank or ﬁnancial adviser for more information on any current schemes. Product liability insurance Product liability insurance covers the cost of compensation for anyone injured by a faulty product. If you design, manufacture or supply a physical product you should therefore consider taking out product liability insurance. See the Association of British Insurers (ABI) website at: https://www.abi.org.uk/productsand-issues/choosing-the-right-insurance/ business-insurance/liability-insurance/product -liability-insurance/ for further information, or alternatively contact the DIT team in

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Ulaanbaatar at: http://www.gov.uk/world/ organisations/department-for-internationaltrade-mongolia#contact-us for contacts of local insurers or specialist brokers. Professional indemnity insurance You may require professional indemnity insurance if you provide a service and need to protect yourself against negligence claims from clients or third parties in Mongolia.

Currency risks when exporting In order to fix your price, it is essential to fix your exchange rate. Before signing any contract you need to consider whether the best option for you is to agree terms in Pounds Sterling (GBP) or Mongolian Tughrik (MNT). It may also be advisable to seek expert financial advice on exchange rates (FX). [Source – Association of British Insurers, DIT Trade and Investment guide: Mongolia, UKEF, gov.uk]

See the Association of British Insurers (ABI) website at: https://www.abi.org.uk/productsand-issues/choosing-the-right-insurance/ business-insurance/liability-insurance/ professional-indemnity-insurance/ for further information, or alternatively contact the DIT team in Ulaanbaatar at: http://www.gov.uk/ world/organisations/department-forinternational-trade-mongolia#contact-us for further advice, and for contacts of local insurers or specialist brokers if appropriate. Payment risks UKEF helps UK companies to get paid by insuring against buyer default. You may have difficulty accessing foreign exchange. Be confident you will get paid for your export contract. Speak to one of UKEF’s export finance advisers at: https://www.gov. uk/government/publications/find-an-exportfinance-manager for free and impartial advice on your insurance options, or contact one of UKEF’s approved export insurance brokers at: https://www.gov.uk/government/publications /uk-export-finance-insurance-list-of-approved -brokers/export-insurance-approved-brokers.

Stack of Mongolian ToĚ&#x2C6;groĚ&#x2C6;g banknotes

MOnGOLIA

Mongolia has been a member of the World Trade Organization (WTO) since 1997, and Mongolian legislation recognises the primacy of international treaties in cases of conflict with domestic legislation.

HOW TO DO BUSInESS WITH MONGOLIA

How to do business with Mongolia

Legal considerations Mongolia has been a member of the World Trade Organization (WTO) since 1997, and Mongolian legislation recognises the primacy of international treaties in cases of conflict with domestic legislation. Unfortunately, many Mongolian laws are worded vaguely and are subject to frequent corrections and amendments, causing them to be open to interpretation. However, if law articles conflict then the more detailed one should prevail. Generally, parties can select international arbitration as the method for dispute resolution when drafting contracts in Mongolia. However, you should be aware that if a claim or complaint is filed, and subsequently upheld, against a foreign citizen for violation of rights, freedoms or lawful interests, they could be banned from exiting Mongolia. You are therefore advised to undertake professional legal advice before entering into any contractual agreements in Mongolia. A list of local lawyers in Mongolia can be found at: https://www.gov.uk/government/ publications/mongolia-list-of-lawyers, and the DIT team in Ulaanbaatar at: http://www.gov.uk/world/organisations/ department-for-international-trademongolia#contact-us can provide advice. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Marketing and selling Good after-sales service is not common in Mongolia. However, if you are selling to consumers (rather than businesses) you must check if there are any Mongolian consumer protection requirements you will need to comply with. Contact the Department for International Trade (DIT) team in Ulaanbaatar at: http://www.gov.uk/world/organisations/ department-for-international-trade-mongolia #contact-us for information and advice on marketing in Mongolia. Standards and technical regulations It is important to check if your product requires any certiﬁcation before being sold in Mongolia. Suppliers and manufacturers have an obligation to make sure products are safe. Products must meet relevant safety standards, have clear instructions for proper use and include warnings against possible misuse. The Mongolian Agency for Standardization and Metrology (MASM) has responsibility for standards. See: https://masm.gov.mn/masmj /#, and their webstore at: https://masm. isolutions.iso.org/sites/masm-nws/home.html for full details. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Labelling your products It is acceptable for goods to be labelled in English or Russian, but you must include instructions in Mongolian for medicines. Packaging and labelling requirements for Mongolia vary signiﬁcantly for both food and non-food items. You should check the requirements prior to shipment. 68

Only an oﬃcially registered legal body of Mongolia is permitted to import food, so you will need to work with a Mongolian importer employing quality management and standards for agriculture, food, and health. Contact the Mongolian General Agency of Specialised Inspection (GASI) at: http://home.inspection. gov.mn/ for more detailed information. You can also contact the Department for International Trade (DIT) team in Ulaanbaatar at: http://www.gov.uk/world/organisations/ department-for-international-trademongolia#contact-us for further advice. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Taxation The Mongolia Tax Agency (MTA) has responsibility for taxation. See: http://en.mta.mn/ for further details. You should hire qualiﬁed ﬁnance specialists to ensure you comply with regulations, meeting both International Accounting Standards (IAS) as well as any Mongolian accounting standards. Double taxation agreement The UK and Mongolia have signed a double taxation agreement, which allows some taxes paid in one country to be deducted in the other. See: www.gov.uk/government/ publications/mongolia-tax-treaties. Provided you get and keep evidence of your export, and comply with all other laws, you can zero-rate the sale of your goods to Mongolia. You will need to ensure the goods are exported, and provide evidence within three months from the time of sale.

Value added tax (VAT) VAT is imposed at the rate of 10% on goods and services, and on imports into Mongolia. If your company turnover exceeds MNT10 million (approximately £3,000), you will need to register with the Mongolian Tax Oﬃce and obtain the status of a VAT payer. You can voluntarily register when your company’s taxable turnover reaches MNT8 million, or alternatively if you invest over US $2 million in Mongolia. Further information on VAT in non-EU markets and zero-rating conditions is available at: https://www.gov.uk/guidance/ vat-exports-dispatches-and-supplyinggoods-abroad. Company and corporate tax For companies with an annual income of up to MNT3 billion (about £100,000), Mongolian corporate income tax is 10%. For those with an income of more than MNT3 billion it is 25%. Tax exemptions The Mongolian Government sometimes grants tax exemptions, including import duties and VAT for: •

imports of essential fuel and staple food products

•

imports in some sectors speciﬁcally targeted for growth, such as the agriculture sector

A 10% tax credit may be granted on a case-by-case basis to investments in important sectors such as mining, agriculture, and infrastructure.

www.Mongolia.DoingBusinessGuide.co.uk

Excise duty You will need to pay excise duty on any alcohol, alcoholic drinks, energy products, electricity or tobacco products you send to Mongolia. The Department for International Trade (DIT) in Ulaanbaatar can help you ﬁnd tax and legal advisers before entering into agreements. For more information visit: http://www.gov.uk/ world/organisations/department-forinternational-trade-mongolia#contact-us. More information on GST in non-EU markets can be found at: https://www.gov.uk/guidance /vat-exports-dispatches-and-supplyinggoods-abroad. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Customs and documentation Customs You can calculate duty by the percentage of customs value of goods imported, at the rates from 0% to 25%, with most goods subject to 5%. Customs value is normally calculated on the cost, insurance and freight (CIF) value. You should also be aware that the import of certain goods will require a licence. The Customs Office of Mongolia provides more information on customs procedures. See: http://www.customs.gov.mn/en/. You can find out about import tariffs and trade barriers at the European Commission’s Market Access Database (MADB). See: http://madb.europa.eu/madb/indexPubli.htm. [Source – European Commission, DIT Trade and Investment guide: Mongolia, gov.uk]

Complying with HMRC regulations to export To export your goods to Mongolia you must make export declarations to HMRC through the National Export System (NES). Visit: https://www.gov.uk/guidance/exportdeclarations-and-the-national-export-system -export-procedures for further details. You can find out how to declare your exports to Mongolia through the NES at: https://www .gov.uk/guidance/export-declarations-andthe-national-export-system-exportprocedures. You must classify your goods as part of the declaration, including a commodity code and a customs procedure code (CPC). Commodity codes and other details applying to exports in the UK Trade Tariff can be found at: https://www.gov.uk/trade-tariff. Contact the HMRC Tariff Classification Service at: https://www.gov.uk/guidance/findingcommodity-codes-for-imports-or-exports# list-of-useful-contacts for more help. You must declare any goods that you take with you in your luggage to sell outside the EU. See: https://www.gov.uk/take-goods-sellabroad for further information. Temporary export of goods You can use an ATA (Admission Temporaire /Temporary Admission) Carnet to simplify the customs procedures needed to temporarily take goods into Mongolia. Visit: https://www. gov.uk/taking-goods-out-uk-temporarily for further information. To apply for a temporary export licence, you will need to use the SPIRE system at: https://www.spire.trade.gov.uk/spire/fox/ espire/LOGIN/login. [Source – gov.uk]

/ŶƚĞƌǀŝĞǁ ǁŝƚŚ ŚƌŝƐ ,ƵƌĚ͕ WĂƌƚŶĞƌ Ăƚ / Zh / ŽŶƐƵůƟŶŐ͕ ŽŶ ŐĞƫŶŐ ƐƚĂƌƚĞĚ ŝŶ DŽŶŐŽůŝĂ͘ tŚĂƚ ǁŽƵůĚ ǇŽƵ ƐĂǇ ƚŽ ƉĞŽƉůĞ ǁŚŽ ĂƌĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ĞǆƉůŽƌŝŶŐ ƚŚĞ DŽŶŐŽůŝĂŶ ŵĂƌŬĞƚƉůĂĐĞ͍ / ǁŽƵůĚ ǁĂƌŵůǇ ĞŶĐŽƵƌĂŐĞ ƚŚĞŵ ƚŽ ĚŽ ƐŽ͕ ĂŶĚ ŶŽƚ ũƵƐƚ ƚŚĞ ŵĂƌŬĞƚƉůĂĐĞ͕ ďƵƚ ĂůƐŽ ƚŚĞ ĨĂƐĐŝŶĂƟŶŐ ĐŽƵŶƚƌǇ ďĞŚŝŶĚ ŝƚ͘ DŽŶŐŽůŝĂ ƌĞƚĂŝŶƐ ŝƚƐ ĂŶĐŝĞŶƚ ĐƵůƚƵƌĞ ǁŝƚŚ Ă ƐƚƌŽŶŐ͕ ŝŶĚĞƉĞŶĚĞŶƚ ƉĞŽƉůĞ ĂŶĚ Ă ƌĞŵĂƌŬĂďůĞ ŚŝƐƚŽƌǇ͕ ďŽƚŚ ƐŚĂƉĞĚ ďǇ ŝƚƐ ĞǆƚƌĂŽƌĚŝŶĂƌǇ ůĂŶĚƐĐĂƉĞ ĂŶĚ ĐůŝŵĂƚĞ͘ dŽ ĚŽ ďƵƐŝŶĞƐƐ ŚĞƌĞ ŝƐ ƚŽ ĞǆƉĞƌŝĞŶĐĞ ůŝĨĞ ŝŶ Ă ĐŽƵŶƚƌǇ ƚŚĂƚ ŝƐ ůŝŬĞ ŶŽ ŽƚŚĞƌ͕ ĂŶĚ ŝƐ ŝŵŵĞŶƐĞůǇ ƌĞĨƌĞƐŚŝŶŐ͊ ŶĚ ŝŶ ƚĞƌŵƐ ŽĨ ƚŚĞ ƉƌĂĐƟĐĂůŝƟĞƐ ŽĨ ŐĞƫŶŐ ƐƚĂƌƚĞĚ͕ ǁŚĂƚ ĂĚǀŝĐĞ ǁŽƵůĚ ǇŽƵ ŚĂǀĞ͍ Ɛ ǁŝƚŚ Ăůů ĞŶƚƌŝĞƐ ŝŶƚŽ Ă ŶĞǁ ŵĂƌŬĞƚ͕ ƚŚĞ ŝŶŝƟĂů ŝĚĞĂ ǁŝůů ĐŽŵĞ ĨƌŽŵ ƐŽŵĞǁŚĞƌĞ͘ WĞƌŚĂƉƐ ĂŶ ĞǆŝƐƟŶŐ ĐƵƐƚŽŵĞƌ ŚĂƐ ĞǆƉĂŶĚĞĚ ŚĞƌĞ ĂŶĚ ŶĞĞĚƐ ƐĞƌǀŝĐĞƐ Žƌ ĚĞƐŬƚŽƉ ƌĞƐĞĂƌĐŚ ŚĂƐ ŝĚĞŶƟĮĞĚ Ă ŐĂƉ ŝŶ ƚŚĞ ŵĂƌŬĞƚ͘ ŝƚŚĞƌ ǁĂǇ͕ ǀŝƐŝƟŶŐ ĂŶĚ ŝŶƚĞƌĂĐƟŶŐ ǁŝƚŚ ůŽĐĂů ƐƚĂŬĞŚŽůĚĞƌƐ͕ ďĞ ƚŚĞǇ ƉŽƚĞŶƟĂů ƐƚĂī͕ ƐƵƉƉůŝĞƌƐ͕ ŐŽǀĞƌŶŵĞŶƚ Žƌ ĐƵƐƚŽŵĞƌƐ͕ ŝƐ ǁŽƌƚŚǁŚŝůĞ͘ EŽƚŚŝŶŐ ĐĂŶ ƌĞƉůĂĐĞ ŵĞĞƟŶŐ ƉĞŽƉůĞ ĨĂĐĞ ƚŽ ĨĂĐĞ ĂŶĚ ƐĞĞŝŶŐ ŚŽǁ ŝƚ ŝƐ ŽŶ ƚŚĞ ŐƌŽƵŶĚ ĨŽƌ ŽŶĞƐĞůĨ͘ ƐŝĚĞ ĨƌŽŵ ǀŝƐŝƟŶŐ͕ ƉůĂŶŶŝŶŐ ŝƐ ĐƌƵĐŝĂů ĂŶĚ ƟŵĞ ƐƉĞŶƚ ǁŽƌŬŝŶŐ ŽƵƚ ďƵĚŐĞƚƐ͕ ƟŵĞůŝŶĞƐ͕ ǀŝƐĂ ĂŶĚ ĐŽŵƉůŝĂŶĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ĞĂƌůǇ ŽŶ ǁŝůů ŶŽƚ ďĞ ǁĂƐƚĞĚ͘

ŽƵůĚ ǇŽƵ ĚĞƐĐƌŝďĞ ƚŚĞ ƉƌŽĐĞƐƐ ŽĨ ŝŶĐŽƌƉŽƌĂƟŶŐ Ă ĐŽŵƉĂŶǇ ŝŶ DŽŶŐŽůŝĂ͍ /Ŷ ƚĞƌŵƐ ŽĨ ĞŶƟƟĞƐ͕ ƚŚĞƌĞ ĂƌĞ ĨŽƵƌ ŽƉƟŽŶƐ ƚŽ ĐŚŽƐĞ ĨƌŽŵ͕ >ŝŵŝƚĞĚ >ŝĂďŝůŝƚǇ ŽŵƉĂŶŝĞƐ ;>> Ϳ͕ :ŽŝŶƚ ^ƚŽĐŬ ŽŵƉĂŶŝĞƐ ;:^ Ϳ͕ ZĞƉƌĞƐĞŶƚĂƟǀĞ KĸĐĞƐ ĂŶĚ WĂƌƚŶĞƌƐŚŝƉƐ͘ &ŽĐƵƐŝŶŐ ŽŶ >> Ɛ͕ ǁŚŝĐŚ ĂƌĞ ďǇ ĨĂƌ ƚŚĞ ŵŽƐƚ ĐŽŵŵŽŶ͕ ƚŚĞ ƉƌŽĐĞƐƐ ƚŽ ŝŶĐŽƌƉŽƌĂƚĞ ƚĂŬĞƐ ĂďŽƵƚ Ă ŵŽŶƚŚ ǁŝƚŚ ĞĸĐŝĞŶƚ ĚŽĐƵŵĞŶƚ ƉƌĞƉĂƌĂƟŽŶ͘ dŚĞ ŬĞǇ ƌĞƋƵŝƌĞŵĞŶƚƐ ĂƌĞ ƚŽ ŝĚĞŶƟĨǇ ƚŚĞ ŽǁŶĞƌƐŚŝƉ ƐƚƌƵĐƚƵƌĞ͕ ƚŽ ƐĞůĞĐƚ Ă ďĂŶŬ ĂŶĚ ƚŽ ŝŶũĞĐƚ ĞƋƵŝƚǇ ĐĂƉŝƚĂů͕ ǁŚŝĐŚ ŝƐ ƵƐƵĂůůǇ h^ ϭϬϬ͕ϬϬϬ ĨŽƌ ĨŽƌĞŝŐŶ ŽǁŶĞĚ ĞŶƟƟĞƐ͘ ŶƟƟĞƐ ŶĞĞĚ ƚŽ ŵĂŬĞ ƐƵƌĞ ƚŚĞǇ ĐŽŵƉůǇ ǁŝƚŚ ƚŚĞ ĂĐĐŽƵŶƟŶŐ ĂŶĚ ƚĂǆ ƌĞŐŝŵĞ͕ ǁŚŝĐŚ ŵĞĂŶƐ ŝŵŵĞĚŝĂƚĞ ƌĞŐŝƐƚƌĂƟŽŶ ĂŶĚ ƉƌŽĐĞƐƐĞƐ ƐĞƚ ƵƉ ƚŽ ĞŶƐƵƌĞ ĮůŝŶŐ ĚĂƚĞƐ ĂƌĞ ŶŽƚ ŵŝƐƐĞĚ͘ dŚĞ ĚĞĂĚůŝŶĞƐ ĂƌĞ ƌŝŐŝĚ ĂŶĚ ĮŶĞƐ ŵĂǇ ďĞ ůĞǀŝĞĚ ůĂƚĞƌ ĨŽƌ ŶŽŶ ĐŽŵƉůŝĂŶĐĞ͘ ƌĞ ƚŚĞƌĞ ĂŶǇ ĐĂƉŝƚĂů ƌĞƐƚƌŝĐƟŽŶƐ ŽŶĐĞ ƚŚĞ ĞŶƟƚǇ ŝƐ ƐĞƚ ƵƉ͍ EŽ͕ ŽŶĐĞ ƚŚĞ ĞŶƟƚǇ ŝƐ ƐĞƚ ƵƉ͕ ƚŚĞ ĞƋƵŝƚǇ ĐĂƉŝƚĂů ĐĂŶ ĞŝƚŚĞƌ ďĞ ƌĞƉĂƚƌŝĂƚĞĚ ;ĂƐ Ă ůŽĂŶ ĨƌŽŵ ƚŚĞ ŶĞǁ ƐƵďƐŝĚŝĂƌǇͿ Žƌ ƵƐĞĚ ĨŽƌ ƉƵƌĐŚĂƐĞƐ Žƌ ĂƐ ǁŽƌŬŝŶŐ ĐĂƉŝƚĂů͘ &ƵƚƵƌĞ ĐĂƉŝƚĂů ƚƌĂŶƐĨĞƌƐ ŝŶ Žƌ ŽƵƚ ĂƌĞ ŶŽƚ ĐƵƌƌĞŶƚůǇ ƌĞƐƚƌŝĐƚĞĚ͕ ĂůƚŚŽƵŐŚ ďĂŶŬƐ ŐĞŶĞƌĂůůǇ ŝŵƉŽƐĞ ĚĂŝůǇ ůŝŵŝƚƐ ĨŽƌ ŽŶůŝŶĞ ƚƌĂŶƐĨĞƌƐ͘

ĐĐŽƵŶƟŶŐ ͮ dĂǆ ͮ WĂǇƌŽůů ͮ /ŶĐŽƌƉŽƌĂƟŽŶ ͮ sŝƐĂƐ ͮ ŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ͮ DĂƌŬĞƚ ĞŶƚƌǇ

ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

ŶĚ ƚŚĞ ƚĂǆ ƌĞŐŝŵĞ͍ ŽƌƉŽƌĂƚĞ /ŶĐŽŵĞ dĂǆ ; /dͿ ŝƐ ĐŚĂƌŐĞĚ Ăƚ ϭϬй ƵƉ ƚŽ Ă ƉƌŽĮƚ ŽĨ DEd ϯďŶ ;ĂƉƉƌŽǆ͘ ' W ϵϬϬŬͿ ĂŶĚ Ϯϱй ƚŚĞƌĞĂŌĞƌ͘ WĞƌƐŽŶĂů /ŶĐŽŵĞ dĂǆ ;W/dͿ ŝƐ ϭϬй ĨŽƌ ƌĞƐŝĚĞŶƚƐ ĂŶĚ ϮϬй ĨŽƌ ŶŽŶ-ƌĞƐŝĚĞŶƚƐ͘ s d ŝƐ ϭϬй ĂŶĚ ĐƵƐƚŽŵƐ ƚĂǆĞƐ ǀĂƌǇ ďĞƚǁĞĞŶ ϱй ĂŶĚ ϭϱй͘ ^ŽĐŝĂů ĂŶĚ ,ĞĂůƚŚ /ŶƐƵƌĂŶĐĞ ;^,/Ϳ ƉƌĞŵŝƵŵƐ ĂƌĞ ƉĂǇĂďůĞ ŽŶ ƐĂůĂƌŝĞƐ͕ ǁŝƚŚ ĐĂƉƉĞĚ /ŶǀĞƐƚŽƌƐ ĂƌĞ ŽŌĞŶ ƐƵƌƉƌŝƐĞĚ Ăƚ ƚŚĞ ŝŶƚĞƌĞƐƚ ĞŵƉůŽǇĞĞ ĂŶĚ ƵŶĐĂƉƉĞĚ ĞŵƉůŽǇĞƌ ƌĂƚĞƐ ŽīĞƌĞĚ͕ ǁŝƚŚ ƵƉ ƚŽ ϭϰй ĂŶĚ ϱй ƉŽƌƟŽŶƐ͘ ĂǀĂŝůĂďůĞ ŽŶ ůŽĐĂů ĐƵƌƌĞŶĐǇ ĂŶĚ h^ ĚĞƉŽƐŝƚƐ ƌĞƐƉĞĐƟǀĞůǇ͘ KĨ ĐŽƵƌƐĞ͕ ƚŚĞƐĞ ƌŽƐƐ ďŽƌĚĞƌ ǁŝƚŚŚŽůĚŝŶŐ ƚĂǆĞƐ ;t,dͿ͕ ƌĂƚĞƐ ƌĞŇĞĐƚ ƌŝƐŬ͕ ĂŶĚ ĂŶ ŽŶŐŽŝŶŐ ĞƐƉĞĐŝĂůůǇ ƚŚŽƐĞ ǁŝƚŚ ĞŶƟƟĞƐ ŝŶ ĐŽƵŶƚƌŝĞƐ ĂƐƐĞƐƐŵĞŶƚ ƐŚŽƵůĚ ďĞ ĐĂƌƌŝĞĚ ŽƵƚ ŝĨ ƚŚĂƚ ĚŽ ŶŽƚ ŚĂǀĞ Ă ĚŽƵďůĞ ƚĂǆ ƚƌĞĂƚǇ͕ ĐĂŶ ƚƌĞĂƐƵƌǇ ƚƌĂŶƐĂĐƟŽŶƐ ĂƌĞ ĐŽŶƐŝĚĞƌĞĚ͘ ŚĂǀĞ Ă ƐĞƌŝŽƵƐ ŝŵƉĂĐƚ͘ dŚĞ h< ŚĂƐ Ă ŐŽŽĚ ƚƌĞĂƚǇ ĂŶĚ ƐŚŽƵůĚ ďĞ ƌĞǀŝĞǁĞĚ ŝŶ ĚĞƚĂŝů ĂƐ ŽƵůĚ ǇŽƵ ŐŝǀĞ ƵƐ ĂŶ ŽǀĞƌǀŝĞǁ ŽĨ ƚŚĞ ƉĂƌƚ ŽĨ ďƵƐŝŶĞƐƐ ƉůĂŶŶŝŶŐ͘ ĂĐĐŽƵŶƟŶŐ ĂŶĚ ƚĂǆ ƌĞŐŝŵĞ ŝŶ DŽŶŐŽůŝĂ͍ ZĞǀĞƌƐĞ ŚĂƌŐĞ s d ;Z s dͿ͕ ůĞǀŝĞĚ Ăƚ ϭϬй DŽŶŐŽůŝĂ ŚĂƐ ĂĚŽƉƚĞĚ /&Z^ ďƵƚ ƐƟůů ŽŶ ƐĞƌǀŝĐĞ ŝŶǀŽŝĐĞƐ ĨƌŽŵ ŶŽŶ-ƌĞƐŝĚĞŶƚ ƌĞƋƵŝƌĞƐ ƚŚĞ ĐŽŵƉůĞƟŽŶ ŽĨ ůŽĐĂů ĮŶĂŶĐŝĂů ŽǀĞƌƐĞĂƐ ĐŽŵƉĂŶŝĞƐ͕ ŝƐ ŽŶĞ ŽĨ ƚŚĞ ƌĞƉŽƌƟŶŐ ƚĞŵƉůĂƚĞƐ ǁŚŝĐŚ ůŝŶŬ ǁŝƚŚ ƚŚĞ ƚĂǆ ĂŶŽŵĂůŝĞƐ ŽĨ ƚŚĞ ƚĂǆ ƐǇƐƚĞŵ ĂŶĚ ĐĂŶ ŚĂǀĞ Ă ƐǇƐƚĞŵ͘ 'ĞŶĞƌĂůůǇ ƐƉĞĂŬŝŶŐ ŚŽǁĞǀĞƌ͕ ƐŝŐŶŝĮĐĂŶƚ ŝŵƉĂĐƚ ŽŶ ƐŽŵĞ ďƵƐŝŶĞƐƐ ĂĐĐŽƵŶƟŶŐ ĐŽŵƉůŝĂŶĐĞ ŝƐ ƐŝŵŝůĂƌ ƚŽ ŵŽĚĞůƐ͘ ĞůƐĞǁŚĞƌĞ ŝŶ ƚŚĞ ǁŽƌůĚ͘ tŚĂƚ ĂďŽƵƚ ƚŚĞ ďĂŶŬŝŶŐ ƐĞĐƚŽƌ͍ KǀĞƌƐĞĂƐ ƌĞƚĂŝů ďĂŶŬƐ ĐĂŶŶŽƚ ĐƵƌƌĞŶƚůǇ ŽƉĞƌĂƚĞ ŝŶ DŽŶŐŽůŝĂ͕ ĂŶĚ ƚŚĞ ƐĞĐƚŽƌ ŝƐ ŚŽŵĞŐƌŽǁŶ ǁŝƚŚ ĮǀĞ ďĂŶŬƐ ĚŽŵŝŶĂƟŶŐ͘ dŚĞƐĞ ƉƌŽǀŝĚĞ ƌĞůŝĂďůĞ ŽŶůŝŶĞ ďĂŶŬŝŶŐ ƐĞƌǀŝĐĞƐ ĂŶĚ ĂůƚŚŽƵŐŚ ĐƵƐƚŽŵĞƌ ƐĞƌǀŝĐĞ ǀĂƌŝĞƐ͕ ŵŽƐƚ ĂƌĞ ǁŽƌŬĂďůĞ͘

KŶĞ ŝƚĞŵ ƚŽ ƉŽŝŶƚ ŽƵƚ ŝƐ ƚŚĂƚ ĂĐĐŽƵŶƟŶŐ ƌĞĐŽƌĚƐ ĂƌĞ ůĞŐĂůůǇ ƌĞƋƵŝƌĞĚ ƚŽ ďĞ ŵĂŝŶƚĂŝŶĞĚ ŝŶ DŽŶŐŽůŝĂŶ ĂŶĚ ŝŶ DŽŶŐŽůŝĂ ĨŽƌ ƚĂǆ ĂƵƚŚŽƌŝƚǇ ŝŶƐƉĞĐƟŽŶ͘ dŚĞǇ ŚĂǀĞ ƚŚĞ ƌŝŐŚƚ ƚŽ ĚŽ ƐŽ ǁŝƚŚ ϭϬ ĚĂǇƐ ŶŽƟĐĞ͕ ǁŚŝĐŚ ŝŶ ĂŶǇ ĐĂƐĞ ŝƐ ŶŽƚ ůŽŶŐ ĞŶŽƵŐŚ ĨŽƌ ƐŚŝƉƉŝŶŐ Žƌ ƚƌĂŶƐůĂƟŽŶƐ ŝĨ ƚŚĞ ĚĂƚĂ ŝƐ ŬĞƉƚ ŽǀĞƌƐĞĂƐ͘

/Ŷ ƚĞƌŵƐ ŽĨ ƉĂǇŵĞŶƚ ĐǇĐůĞƐ͕ s d͕ W/d ĂŶĚ ^,/ ĂƌĞ ĐĂůĐƵůĂƚĞĚ ĂŶĚ ƉĂŝĚ ŵŽŶƚŚůǇ ĂŶĚ /d ŝƐ ƋƵĂƌƚĞƌůǇ͘ t,d ĂŶĚ Z s d ĂƌĞ ƉĂŝĚ ǁŚĞŶ ŝŶĐƵƌƌĞĚ͘ ZĞƉŽƌƟŶŐ ĐǇĐůĞƐ ĂƌĞ ŵŽŶƚŚůǇ ĨŽƌ s d ĂŶĚ ^,/ ĂŶĚ ƋƵĂƌƚĞƌůǇ ĨŽƌ ƚŚĞ ƌĞƐƚ ǁŝƚŚ ĂŶ Ɛƚ ĂŶŶƵĂů ƚƌƵĞ ƵƉ Ăƚ ϯϭ ĞĐĞŵďĞƌ͘

ĐĐŽƵŶƟŶŐ ͮ dĂǆ ͮ WĂǇƌŽůů ͮ /ŶĐŽƌƉŽƌĂƟŽŶ ͮ sŝƐĂƐ ͮ ŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ͮ DĂƌŬĞƚ ĞŶƚƌǇ

ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

ƉĂƌƚ ĨƌŽŵ ƉĂǇŝŶŐ Ă ŚŝŐŚĞƌ ƌĂƚĞ ŽĨ ƚĂǆ͕ ǁŚĂƚ ŽƚŚĞƌ ĨĂĐƚŽƌƐ ĂƌĞ ƚŚĞƌĞ ƚŽ ĐŽŶƐŝĚĞƌ ĨŽƌ ĨŽƌĞŝŐŶĞƌƐ ƚŽ ǁŽƌŬ ŝŶ DŽŶŐŽůŝĂ͍ :ƵƐƚ ƚŽ ĐůĂƌŝĨǇ͕ ŶŽŶ-ƌĞƐŝĚĞŶƚƐ ƐŚŽƵůĚ ƉĂǇ ϮϬй ďƵƚ ƌĞƐŝĚĞŶƚ ĨŽƌĞŝŐŶ ǁŽƌŬĞƌƐ ŝŶ DŽŶŐŽůŝĂ ƉĂǇ ƚŚĞ ƐƚĂŶĚĂƌĚ ƌĂƚĞ ŽĨ ϭϬй ƚĂǆ͘ ZĞƐŝĚĞŶĐǇ ŝƐ ĚĞĮŶĞĚ ĂƐ ďĞŝŶŐ ŝŶ DŽŶŐŽůŝĂ ĨŽƌ ŽǀĞƌ ϭϴϯ ĚĂǇƐ ƉĞƌ ǇĞĂƌ͕ ǁŚŝĐŚ ƌĞƋƵŝƌĞƐ ĐĂƌĞĨƵů ƚƌĂĐŬŝŶŐ͘ ůƐŽ͕ ƚŚĞƌĞ ŝƐ Ă ƌĞƐƚƌŝĐƟǀĞ ǀŝƐĂ ƌĞŐŝŵĞ ǁŝƚŚ ƚŚƌĞĞ ŵĂŝŶ ĐĂƚĞŐŽƌŝĞƐ͘ ƵƐŝŶĞƐƐ ; Ϳ ǀŝƐĂƐ ĂƌĞ ĚĞƐŝŐŶĞĚ ĨŽƌ ďƵƐŝŶĞƐƐ ĚĞǀĞůŽƉŵĞŶƚ Žƌ ƚƌĂŝŶŝŶŐ ǀŝƐŝƚƐ ŽĨ ƵƉ ƚŽ Ă ŵŽŶƚŚ͘ /ŶǀĞƐƚŽƌ ;dͿ ǀŝƐĂƐ ĂƌĞ ůŽŶŐ ƚĞƌŵ ǀŝƐĂƐ ĂůůŽĐĂƚĞĚ ƚŽ Ă ůŝŵŝƚĞĚ ŶƵŵďĞƌ ŽĨ ƐŚĂƌĞŚŽůĚĞƌƐ Žƌ ƚŚĞŝƌ ƌĞƉƌĞƐĞŶƚĂƟǀĞƐ͘ ŵƉůŽǇŵĞŶƚ ;,'Ϳ ǀŝƐĂƐ ĂƌĞ ůŽŶŐ ƚĞƌŵ ǀŝƐĂƐ ĨŽƌ ƐƚĂī͘ ,' ǀŝƐĂƐ ĂƌĞ ĂůůŽǁĂďůĞ ǁŝƚŚŝŶ ĐĞƌƚĂŝŶ ƋƵŽƚĂƐ ƚŚĂƚ ĂƌĞ ďĂƐĞĚ ŽŶ ƚŚĞ ƐĞĐƚŽƌ͕ ŝŶǀĞƐƚŵĞŶƚ ĂŶĚ ŶƵŵďĞƌ ŽĨ ůŽĐĂů ƐƚĂī͕ ƐƚĂƌƟŶŐ Ăƚ ũƵƐƚ ϱй ŽĨ ƚŽƚĂů ǁŽƌŬĨŽƌĐĞ͘ /ƚ ĐĂŶ ƚĂŬĞ ƐŽŵĞ ƉůĂŶŶŝŶŐ ƚŽ ŐĞƚ ƌŝŐŚƚ͘ tŚĂƚ ŝƐ ůŝĨĞ ŝŶ hůĂĂŶďĂĂƚĂƌ ůŝŬĞ͍ >ŝǀŝŶŐ ŝŶ DŽŶŐŽůŝĂ ŚĂƐ ďĞĞŶ Ă ŐƌĞĂƚ ĞǆƉĞƌŝĞŶĐĞ ĨŽƌ ŵĞ ĂŶĚ / ŵŝƐƐ ŝƚ ǁŚĞŶ / Ăŵ ŶŽƚ ƚŚĞƌĞ͘ 'ĞƫŶŐ ƵƐĞĚ ƚŽ ƚŚĞ ĐůŝŵĂƚĞ ŝŶ ƚŚĞ ǁŝŶƚĞƌ ŝƐ Ă ĐŚĂůůĞŶŐĞ ĨŽƌ ĂŶǇŽŶĞ ďƵƚ ŵŽƐƚ ŽĨ ƚŚĞ ǇĞĂƌ ŝƐ ǀĞƌǇ ƉůĞĂƐĂŶƚ͘

dŚĞ ƉŽůŝƟĐĂů ƐǇƐƚĞŵ ŝƐ ƋƵŝƚĞ ƵŶƐƚĂďůĞ͕ ůĞĂĚŝŶŐ ƚŽ ƌĞŐƵůĂƌ ĐŚĂŶŐĞƐ ƚŽ ůĞŐŝƐůĂƟŽŶ͕ ǁŚŝĐŚ ŬĞĞƉƐ ǇŽƵ ŽŶ ǇŽƵƌ ƚŽĞƐ ŝĨ ǇŽƵ ĂƌĞ ŝŶ ƚŚĞ ďƵƐŝŶĞƐƐ ŽĨ ĐŽŵƉůŝĂŶĐĞ͘ DŽŶŐŽůŝĂŶ ƉĞŽƉůĞ ĂƌĞ ƚǇƉŝĐĂůůǇ ƉƌĂĐƟĐĂů͕ ĞĸĐŝĞŶƚ ĂŶĚ ĨƵŶ ůŽǀŝŶŐ ƐŽ Ăůů ŝŶ Ăůů ŝƚ ŝƐ ŐĞŶĞƌĂůůǇ Ă ǀĞƌǇ ĚǇŶĂŵŝĐ ƉůĂĐĞ ƚŽ ďĞ͊ ŶǇ ĮŶĂů ǁŽƌĚƐ͍ /͛Ě ůŝŬĞ ƚŽ ŝŶǀŝƚĞ ĂŶǇŽŶĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ŐĞƫŶŐ ƐƚĂƌƚĞĚ ŝŶ DŽŶŐŽůŝĂ ƚŽ ŐĞƚ ŝŶ ƚŽƵĐŚ͘ / Zh / ŽŶƐƵůƟŶŐ ŝƐ ďĂƐĞĚ ŝŶ hůĂĂŶďĂĂƚĂƌ ďƵƚ ĐĂŶ ĂůƐŽ ƉƌŽǀŝĚĞ ĐŽŶƐƵůƟŶŐ ŝŶ ƚŚĞ h< ŝĨ ƚŚĂƚ ǁŽƌŬƐ ďĞƩĞƌ͘ tŚĞƚŚĞƌ ǁĞ ĞŶĚ ƵƉ ĨŽƌŵĂůůǇ ŚĞůƉŝŶŐ Žƌ ŶŽƚ͕ ǁĞ ĂƌĞ ĂůǁĂǇƐ ŚĂƉƉǇ ƚŽ ƐŚĂƌĞ ŽƵƌ ŬŶŽǁůĞĚŐĞ ĂŶĚ ĂƌĞ ŬĞĞŶ ƚŽ ŚĞĂƌ ĂďŽƵƚ ŝŶƚĞƌĞƐƚ ŝŶ DŽŶŐŽůŝĂ͘ ůƐŽ͕ ƚŚĞ Įƌŵ ŝƐ Ă ƉƌŽƵĚ ƐƉŽŶƐŽƌ ŽĨ ƚŚĞ DŽŶŐŽůŝĂŶ ƌŝĐŬĞƚ ƐƐŽĐŝĂƟŽŶ͕ ǁŚŝĐŚ ďƵŝůƚ ƚŚĞ ĐŽƵŶƚƌǇ͛Ɛ ĮƌƐƚ ĐƌŝĐŬĞƚ ŐƌŽƵŶĚ ŝŶ hůĂĂŶďĂĂƚĂƌ ŝŶ ϮϬϭϲ ĂŶĚ ŶŽǁ ƉƌŽǀŝĚĞƐ ĨƌĞĞ ǇĞĂƌ ƌŽƵŶĚ ĐŽĂĐŚŝŶŐ ƚŽ ƐĐŚŽŽůƐ ĂŶĚ ŽƌƉŚĂŶĂŐĞƐ͘ dŚĞ ŬŝĚƐ ĂƌĞ ŵĂŝŶůǇ ĨƌŽŵ ĚŝƐĂĚǀĂŶƚĂŐĞĚ ĂƌĞĂƐ ĂŶĚ ƚŚĞ ĂƐƐŽĐŝĂƟŽŶ ŝƐ ůŽŽŬŝŶŐ ĨŽƌ ůŽŶŐ ƚĞƌŵ ƐƉŽŶƐŽƌƐ͘ tĞ ǁŽƵůĚ ůŝŬĞ ƚŽ ƉƌŽŵŽƚĞ ƚŚŝƐ ĐĂƵƐĞ ƚŽ ĂŶǇŽŶĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ĚĞǀĞůŽƉŝŶŐ ĐƌŝĐŬĞƚ ŽŶ ŝƚƐ ŵŽƐƚ ĞǆĐŝƟŶŐ ĨƌŽŶƟĞƌ͊ Dƌ ŚƌŝƐ ,ƵƌĚ͕ ƚŚĂŶŬ ǇŽƵ ĨŽƌ ǇŽƵƌ ƟŵĞ͊

ĐĐŽƵŶƟŶŐ ͮ dĂǆ ͮ WĂǇƌŽůů ͮ /ŶĐŽƌƉŽƌĂƟŽŶ ͮ sŝƐĂƐ ͮ ŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ͮ DĂƌŬĞƚ ĞŶƚƌǇ

ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

ĐĐŽƵŶƟŶŐ ͮ dĂǆ ͮ WĂǇƌŽůů ͮ /ŶĐŽƌƉŽƌĂƟŽŶ ͮ sŝƐĂƐ ͮ ŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ͮ DĂƌŬĞƚ ĞŶƚƌǇ

WƌŽƵĚ ƐƉŽŶƐŽƌƐ ŽĨ ƌŝĐŬĞƚ DŽŶŐŽůŝĂ ǁǁǁ͘ĐƌŝĐŬĞƚŵŽŶŐŽůŝĂ͘ŵŶ

ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

Import requirements/documentation Documents required for customs clearance include: •

the contract, which should include product description, purchase frequency, start and ﬁnish dates and Incoterms conditions

•

receipts

•

invoice

•

packing list

•

relevant insurance documents

•

certiﬁcate of origin

•

other relevant documents, such as UK inspection authority certiﬁcates required for any food products

You may choose to work with a Mongolian customs agent, as requirements can change. Contact the DIT team in Ulaanbaatar at: https://www.gov.uk/world/organisations/ department-for-international-trade-mongolia #contact-us for further advice and lists of local agents. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Shipping your goods You can use a freight forwarder to move your goods if you are not knowledgeable about international shipping procedures. A freight forwarder will have vast expertise and familiarity with local documentation requirements, regulations, transportation costs and banking practices in Mongolia.

The British International Freight Association (BIFA) at: http://www.bifa.org/home and the Freight Transport Association (FTA) at: http://www.fta.co.uk/ can assist in locating freight forwarders to transport your goods to Mongolia.

•

who handles customs procedures

•

who is responsible for insuring the goods, and who pays for insurance

•

who pays any duties and taxes

Posting goods For information about sending goods by post to Mongolia visit Royal Mail at: http://www. royalmail.com/mongolia for further details. [Source – Royal Mail]

Incoterms do not apply to the delivery of services. Contracts for the international delivery of services should include a Service Level Agreement (SLA), focusing on desired outcomes such as what the service should achieve.

Shipping restricted, banned and dangerous goods Certain goods are classed as restricted or dangerous. If you wish to import any of these goods into Mongolia they are subject to special rules. For more information visit: https://www.gov.uk/shipping-dangerousgoods/what-are-dangerous-goods.

The International Chamber of Commerce (ICC) publishes Incoterm rules at: https:// iccwbo.org/resources-for-business/incoterms -rules, and the UK Government has further general advice and details about Incoterms at: https://www.gov.uk/guidance/internationaltrade-paperwork-the-basics#internationaltrade-contracts-and-incoterms.

You should seek advice on the latest import licensing requirements, or even consider employing a local agent who will have this knowledge. For information and assistance contact the Department for International Trade (DIT) team in Ulaanbaatar at: https://www.gov.uk/world/organisations/ department-for-international-trademongolia#contact-us.

[Source – ICC, gov.uk]

Terms of delivery You should have a clear written contract in all international commercial transactions to minimise any risk of misunderstanding. Incoterms are a series of widely used commercial terms for international trade in goods, which clarify, for example: •

where the goods will be delivered

•

who arranges transport

UK Export Finance The UK Government can provide finance or credit insurance specifically to support UK exports through UK Export Finance (UKEF) – the UK’s export credit agency. See: https://www.gov.uk/government/ organisations/uk-export-finance. For up-to-date country-specific information on the support available see UKEF’s cover policy and indicators for Mongolia at: https://www.gov.uk/guidance/countrycover-policy-and-indicators#mongolia. [Source – UKEF, gov.uk]

View of modern Ulaanbaatar, Mongolia

MONGOLIA

The official language of Mongolia is Khalkha Mongolian, spoken by about 90% of the population. Some may also be able to speak some Russian too. A small number of Mongolian companies, such as those with an international outlook, may have English speakers on their staff.

BUSINESS ETIQUETTE, LANGUAGE & CULTURE

Business etiquette, language & culture

Initial written approaches to Mongolian companies should always be in Mongolian, and your literature should be translated too.

Language The oﬃcial language of Mongolia is Khalkha Mongolian, spoken by about 90% of the population. Some may also be able to speak some Russian too. A small number of Mongolian companies, such as those with an international outlook, may have English speakers on their staﬀ. Some of the younger generation – particularly in Ulaanbaatar – can speak some English, but few do in rural areas. When setting up an appointment, you should always ask if your contact speaks English or if they would feel more comfortable with an interpreter. Interpreters Your interpreter is one of your key assets, so needs to be chosen carefully. We recommend you use a professional interpreter for negotiations and avoid using electronic translation for your correspondence.

Lists of potential interpreters and translators can be found at: https://www.gov.uk/ government/publications/mongolia-list-oflawyers.

Meeting and greeting Establishing personal relationships is essential in conducting business with Mongolia. You should invest time and effort into creating a rapport with your business partners, and be aware that, as Mongolia is a conservative, hierarchical society, it is considered important to create a good impression by dressing smartly. Mongolians use their first name and sometimes their father’s or mother’s name as a last name too. However, family names were only re-introduced fairly recently, so in practice most Mongolians will use only their first name.

When meeting and greeting, a handshake is usually the norm, together with the word “hatagtai” (meaning Madam) for women, or “noyen” (meaning Sir) for men, although just a nod of the head is not uncommon. When men greet women in a business situation a handshake is acceptable, or even just a verbal greeting. Business cards (translated into Mongolian on one side) should be offered and received with both hands. Exchange of gifts is not expected but can be part of the business process, although gifts should only ever be just small tokens of respect or appreciation – ideally representative of the UK – and not so expensive as to appear as a bribe. Meetings When arranging meeting schedules and dealing with government officials you should always send a hard copy letter ideally around two weeks before arrival, and check receipt is acknowledged, and confirm closer to the visit, reconfirming the day prior to the scheduled time. It is an idea to provide them with, not just the subject of the meeting, but with all provisional support materials (in Mongolian) beforehand too.

Be aware that meetings may not start on time as Mongolians are relaxed about punctuality and consider the relationship to be more important. It is courteous to be punctual and well-presented yourself, though, as this is expected of a Western visitor and will create a good impression. Meeting introductions should start with the most senior attendees ﬁrst, followed by informal small-talk (avoiding discussion of bad things such as accidents or sickness as this is taken as a bad omen). The person responsible for arranging the meeting will normally be expected to chair it too. Mongolians like to do business with people they know well, and it is not unusual for business deals to be closed during lunch, and especially over dinner, with shots of vodka or other spirits. However, be aware that 22 is the minimum legal drinking age in Mongolia, and loud drunken behaviour is considered rude – your hosts will understand if you choose not to drink too much. [Source – DIT Trade and Investment guides, gov.uk]

> Clear, consistent content is vital to making your business understood overseas. So don't leave it to chance.

> Well-known companies we already work with include: Serco, Experian, Intertek, IKEA and Caterpillar > For a structured approach to translation, please read the article that follows

T: 0115 9705633 | E: office@astls.co.uk | www.astlanguage.com

If you're reading this guide, the chances are you're either a seasoned exporter, or you're committed to investigating new export opportunities for your business. Whichever category you fall into, you'll have a good idea of the huge investment in time, effort and resources which is required for export success.

Your priority will be to get your product or service to market, and it's a fact of life that procurement of peripheral resources such as translation is often left to the last minute. In this article we'd like to demonstrate to you how building translation into the early planning stages of your export campaigns can pay dividends.

The internet, mobile connectivity and social media mean that now more than ever before customers, be they B2B or B2C, are buying goods and services within the context of a connected world of instant communication. Buying decisions carried out in isolation of wider and constantly changing sector, economic or social contexts are a thing of the past. This means that increasingly any product or service has to be supported with professional technical, marketing or other contextual content.

As examples of this, exporters need their technical documentation to be easily assimilated, their marketing content to be compelling, and their website to be informative and memorable. Human resources departments on the other hand need sensitive localisation of policies & procedures in line with local legislation, corporate guidelines and house style. After all an international expansion strategy or company restructuring could easily be undermined by insensitive internal communication.

In non English-speaking markets, all of the above can be achieved by working with a reliable and professional translation partner. So how can really good translation help build your export success: •

•

clear and accurate foreignlanguage branding and content will motivate foreign customers to buy from you

consistent and harmonised messaging helps to convey and reinforce your company's values and ethos corporate and operational risk through poor quality communication and misunderstanding is eliminated overall brand integrity and reputation are enhanced

The following components are key to a successful translation project, and show how AST can make the process of internationalising outward-facing and internal communications simpler, more professional and more costeffective: Rigorous selection of translators

AST’s ISO9001 certified and ISO17100 compliant processes mean that the company has approved sector-specialist translators whatever the language and deadline requirements, with experienced proofreaders to give the text precision and professionalism to really focus the reader’s attention. Translation memory technology

Client-facing documents produced periodically often contain sections which stay the same and sections which need updating. Similarly company websites and technical data or manuals can contain identical paragraphs and sections. Translation Memory technology is used in this situation to identify duplicate and legacy text. The duplicates are logged and reused – leading to reduced turnaround times and resulting

cost savings – with company wordings for products, processes, titles and descriptions translated consistently. Terminology management

The key words used to describe your company’s products, services and processes support your brand and identity. This is equally true in your foreign language communications. Unfortunately, once translated it is often easy to lose control of key terms, leading to uncertainty as to whether the translations are having the desired impact. AST’s terminology management prevents this. Glossaries are maintained in multiple languages and client terminology is checked in each language by industry sector experts. As the glossary grows it can be reused with each new project, so client content is always on-message and brand integrity consistent.

So there’s really no need for you to leave the “softer” aspects of your export campaign to chance. Using a professional translation company like AST provides a guarantee that your international content will be clear, consistent and effective. Whatever the language.

> YOU NEED YOUR SALES, TECHNICAL AND WEBSITE CONTENT TO BE TRANSLATED BY EXPERTS!

> We’re recognised as a UK leader for translating high profile, client-facing documents

> All our translators are rigorously selected so your text will be translated by the best people in the business

> We ensure you get premium quality translations every time, on time and within budget

No matter how urgent your assignment we can translate it.

T: 0115 9705633 | E: office@astls.co.uk | www.astlanguage.com

Mongolia Ulaanbaatar capital

MOnGOLIA

As Mongolia is a landlocked country, one of the main challenges can be costly logistics.

WHAT ARE THE CHALLEnGES?

What are the challenges?

Challenges and risks when doing business with Mongolia As Mongolia is a landlocked country, one of the main challenges can be costly logistics. However, other challenges include: •

bureaucracy

•

frequent corrections and amendments to laws and regulations

•

inconsistent application of established laws and regulations

•

language barriers

•

very poor air quality in Ulaanbaatar due to coal-powered heating in winter

•

corruption

In Transparency International's latest 2018 Corruption Perceptions Index (announced January 2019), Mongolia is ranked 93rd out of 180 countries: https://www.transparency.org/ country/MNG. [Source – DIT Trade and Investment guide: Mongolia, gov.uk]

Business risk Bribery and corruption Bribery is illegal. It is an oﬀence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere

in the world. In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national, nor resident in the UK, nor a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the oﬀence take place in the UK or elsewhere. Businesses operating in Mongolia need to be aware that corruption is endemic, and is a major concern. Corruption is a very high risk in the public procurement sector in Mongolia, and bribes and irregular payments are common in the awarding of both public contracts and licenses, with approximately 25% of companies expecting to give gifts to secure a government contract. Transparency International's latest 2018 Corruption Perceptions Index (announced January 2019) ranks Mongolia 93rd out of 180 countries (the UK ranks 11th). See: https:// www.transparency.org/country/MNG. Visit the GAN Business Anti-Corruption portal at: https://www.ganintegrity.com/portal/ country-proﬁles/mongolia/ for procedures you can establish to protect your company from corruption risks. [Source – GAN Business Anti-Corruption portal, DIT Trade and Investment guides, gov.uk]

Protecting your Intellectual Property (IP) IP rights are territorial, which means that they only give protection within the countries where they are registered. You should therefore consider registering your IP rights

Visit the Website and download the free Mobile App

(if necessary) in Mongolia before entering the market. If you do not possess sufficient IP protection it may become very hard to trade in Mongolia and you could swiftly lose your place within the market. It is also crucial to have competent trademark registration and patent protection in place. As a signatory to major international treaties on Intellectual Property rights – Mongolia has joined the World Intellectual Property Organization (WIPO) and has signed and ratified most treaties and conventions – its legal provisions are mainly in line with international standards. See the WIPO site: https://www.wipo.int/ portal/en/index.html and the Intellectual Property Office of Mongolia pages at: https://www.wipo.int/export/sites/www/pct/ guide/en/gdvol2/annexes/mn.pdf for more information.

A list of potential lawyers in Mongolia can be found at: https://www.gov.uk/government/ publications/mongolia-list-of-lawyers. Information is provided on the UK Government’s Intellectual Property page at: https://www.gov.uk/intellectual-property-anoverview, and at the Intellectual Property Office (IPO) – the UK Government agency providing free and impartial advice on protecting and registering your IP in the UK and abroad. See: https://www.gov.uk/ government/organisations/intellectualproperty-office. Protective security advice The UK Government has advice on crime and fraud prevention in international trade at: https://www.gov.uk/guidance/crime-andfraud-prevention-for-businesses-ininternational-trade. [Source – DIT Trade and Investment guide: Mongolia, WIPO, Intellectual Property Office, gov.uk]

The Intellectual Property Oﬃce of Mongolia, Mongolian Customs Authority and the Mongolian National Police have an obligation to protect Intellectual Property rights. However, infringements can be left unchallenged. You should get advice to ensure that your IP rights are protected by contacting a local lawyer in Mongolia who is specialised in Intellectual Property. It is easier and more cost-eﬀective to prevent any issues by preparing correctly rather than dealing with problems and legal issues that could arise later from a dispute.

ĐĐŽƵŶƟŶŐ ͮ dĂǆ ͮ WĂǇƌŽůů ͮ /ŶĐŽƌƉŽƌĂƟŽŶ / Zh / ŽŶƐƵůƟŶŐ ŚĂƐ ďĞĞŶ ƉƌŽǀŝĚŝŶŐ ĂĐĐŽƵŶƟŶŐ͕ ǀŝƐĂ Θ ĐŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ƐĞƌǀŝĐĞƐ ŽŶ ĂŶ ŽƵƚƐŽƵƌĐĞĚ ďĂƐŝƐ ƚŽ ĐŽŵͲ ƉĂŶŝĞƐ ŝŶ DŽŶŐŽůŝĂ ƐŝŶĐĞ ϮϬϭϭ͘ tĞ ŚĂǀĞ Ă ƐŽůŝĚ ƌĞƉƵƚĂƟŽŶ ĨŽƌ ŚĞůƉŝŶŐ ĨŽƌĞŝŐŶ ŝŶǀĞƐƚŽƌƐ ĞŶƚĞƌ ƚŚĞ ŵĂƌŬĞƚ ĂŶĚ ŽƉĞƌĂƚĞ ǁŝƚŚ ĞŶŚĂŶĐĞĚ ƉĞĂĐĞ ŽĨ ŵŝŶĚ ĨƌŽŵ ĚĂǇ ŽŶĞ͘

KƵƌ Ăŝŵ ŝƐ ƚŽ ƌĞĚƵĐĞ ǇŽƵƌ ůŽĐĂů ĂĚŵŝŶŝƐƚƌĂƟǀĞ ďƵƌĚĞŶ͕ ĨƌĞĞŝŶŐ ƵƉ ƟŵĞ ĨŽƌ ǇŽƵ ƚŽ ďƌŝŶŐ ǇŽƵƌ ƉƌŽĚƵĐƚ Žƌ ƐĞƌǀŝĐĞ ƚŽ DŽŶŐŽůŝĂ͘ /ƚ ŝƐ ŽƵƌ ƚƌĂĐŬ ƌĞĐŽƌĚ ŽĨ ŶŽƚ ůĞƫŶŐ ƉĞŽƉůĞ ĚŽǁŶ ĂŶĚ ŽƵƌ ƌĂŶŐĞ ŽĨ ƐĞƌǀŝĐĞƐ ƚŚĂƚ ĚŝīĞƌĞŶƟĂƚĞƐ ƵƐ ĨƌŽŵ ŽƚŚĞƌ ƉƌŽǀŝĚĞƌƐ ŝŶ hůĂĂŶďĂĂƚĂƌ͘ ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

sŝƐĂƐ ͮ ŽŵƉĂŶǇ ƐĞĐƌĞƚĂƌŝĂů ͮ DĂƌŬĞƚ ĞŶƚƌǇ tŚĞƚŚĞƌ ǇŽƵ ĂƌĞ ĐŽŶƐŝĚĞƌŝŶŐ ŵĂƌŬĞƚ ĞŶƚƌǇ ĂŶĚ ĂƐƐĞƐƐŝŶŐ ǇŽƵƌ ŽƉƟŽŶƐ͕ Žƌ ĂůƌĞĂĚǇ ŽƉĞƌĂƚĞ ŝŶ DŽŶŐŽůŝĂ ĂŶĚ ĂƌĞ ůŽŽŬŝŶŐ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞ ƉĞƌĨŽƌŵĂŶĐĞ ŽĨ ǇŽƵƌ ďĂĐŬ ŽĸĐĞ͕ ŽƵƌ ƚĞĂŵ ŽĨ h< ĂŶĚ DŽŶŐŽůŝĂŶ ĐŚĂƌƚĞƌĞĚ ƐƉĞĐŝĂůŝƐƚƐ ǁŝůů ďĞ ǀĞƌǇ ŚĂƉƉǇ ƚŽ ŚĞůƉ ǇŽƵ͘ ŽŶƚĂĐƚ ƵƐ Ăƚ͗ / Zh / ŽŶƐƵůƟŶŐ ϭϬϬϱ DŽŶŐŽů ds dŽǁĞƌ͕ ŚŝŶŐŐŝƐ ǀĞŶƵĞ͕ hůĂĂŶďĂĂƚĂƌ͘ DŽŶŐŽůŝĂ нϵϳϲ ϳϬϭϮ ϳϬϳϳ h< нϰϰ ϳϰϰϰϰ ϵϭϬϯϬ WƌŽƵĚ ƐƉŽŶƐŽƌƐ ŽĨ ƌŝĐŬĞƚ DŽŶŐŽůŝĂ ǁǁǁ͘ĐƌŝĐŬĞƚŵŽŶŐŽůŝĂ͘ŵŶ

ǁǁǁ͘ŝĂƌƵĚŝĐŽŶƐƵůƟŶŐ͘ĐŽŵ

MOnGOLIA

Ideally you should make regular visits to Mongolia as well as making contact with others in your industry/sector.

RESOURCES

What does membership of the Institute of Export & International Trade mean?

To most the Institute of Export & International Trade simply plods away providing much needed qualifications to professionalise the industry however, did you realise that our helpline is one of the busiest and best in the industry? It’s all part of membership and, if you need more than a phone call, we can put together a project to fulfil your needs. 2015 saw the launch of our Technical Help for Exporters that recognises the volume of legislation and regulation that covers our industry and gives you the comfort of knowing that if you don’t know, you know someone who does!

Innovation is key to the success of the Institute and new ideas include our New Exporter package. This allows a business to enter a new market secure in the knowledge that they have an understanding of how they will operate and comply with any specific regulations and standards. Practical help and assistance is always available from the Institute so any additional training can be tailored to the business and the team that needs the knowledge. The work of the IOE&IT also extends to representing membership views. Knowledge gained from our members’ feedback, those who get involved with

the forums and Special Interest Groups, and those who attend our training courses or study with us, enables us to represent the industry at government levels in both the process and delivery of policy for international trade. These views also help us to ensure that the training programmes are effective and pertinent to the industry needs. Our Diploma in World Customs Compliance and Regulation is testament to the way we listen to our members’ needs. This was driven by Nissan, Adidas, John Lewis and many others and will neatly dovetail into any AEO work ensuring that quality standards are met at manager and junior staffing levels.

www.export.org.uk

Starting in 1935, the Institute committed itself to building competence and growing confidence for businesses trading in goods and services, which at the time, was a far reaching remit. Over the years this remit has seen us develop from simply providing training in short course format over a day, or perhaps two, into a fully-fledged Ofqual Awarding Organisation that operates specifically to deliver international trade education.

our young people at an earlier stage. We need to engage the next generation in thinking about how world trade works and how it will be great for British businesses. They need to know how items arrive in the shops which, in turn, will begin to spark ideas. As these young people join companies they will bring a fresh outlook that all things are possible especially if you operate globally.

This status allows our individual members and corporates alike to be sure that they are part of a quality organisation with plans for growth integrated with a sustainable future for the global prosperity of UKPlc.

Why not call us and get involved? It has never been more important that we act as an industry to help â&#x20AC;&#x201C; we need experts and commitment to professionalising international trade from businesses large and small â&#x20AC;&#x201C; help your institute to stay ahead of the curve.

Part of our work includes mapping existing qualifications to roles and producing training needs analyses to ensure staffing progression and continuity. The need to upskill our workforce to match those of our competitors is a key element vital for growth. Our focus is on recognising that International trade needs specific knowledge, coupled with a strong belief that we must start to talk to

Institute of Export & International Trade Export House Minerva Business Park, Lynch Wood, Peterborough, Cambridgeshire, PE2 6FT, UK Telephone: +44(0)1733 - 404400 Fax: +44(0)1733 - 404444

Lesley Batchelor OBE, FIEx (Grad) – Director General, Institute of Export & International Trade

Focusing on qualifications. A focus on qualifications – but why do we need them?

I’d like to tell you about my story, it’s ok it won’t take too long but I think it’s similar to a lot of people that work in international trade.

I left school with no ambition to do anything other than help my mum make ends meet. I wanted to be a seamstress but we couldn’t afford the material for the interview so I went into an accounts department at a large pharmaceutical company. Luckily for me they recognised a hard worker and asked me to work in various departments. After a year they asked me which one I like the best and without even thinking I said “international”, and that was my career set out for me. Working in international trade I found that I needed to understand so many different things – from how trade agreements impacted a sale to the legal aspects of trade and how different systems worked in terms of contract and disputes. Getting paid brought about a whole new set of issues and this really made me learn and think about the implications of offering credit and how it can be used to your advantage. Things I learnt about logistics and the paperwork that was needed to support a trade were empirical and slowly I became sure of my knowledge. The problem was, that when I wanted to move on to the next company, I had nothing to show I had that knowledge. It was frustrating to find that the knowledge that I had accumulated over 11 years wasn’t evidenced in any way and that no-one knew exactly what I knew. I was lucky enough to get my next job with a well-known Japanese computer company but it made me realise that if I wanted a career, I needed to get qualified.

So I spent the next two years, two nights a week at night school honing my skills and building a knowledge and understanding of all aspects of the trade I had entered “by the back door”. Finally, exhausted but with a full understanding of how planning and control worked, I passed and became a Graduate Member of the Institute of Export & International Trade, suffix MIEx (Grad) in 1991.

Well, many things have changed since then, as after many years of working in international trade, I took over at the helm, steering the qualifications and the Institute towards a better place. We have now gained Ofqual Awarding Organisation status for the qualifications and have worked hard on ensuring we are ready for the next 80 years of representing the industry and standing as guardian of professional standards in international trade.

OFQUAL* awarding status is hard earned and we are proud to be the only professional body operating in this international trade environment.

IOE&IT Qualifications in brief www.export.org.uk/page/qualifications Level 1 Level 2 Level 3

Level 4 Level 5

Level 7

Young International Trader (Available electronically) International Trade Logistic Operations* Certificate of International Trade Level 3 Customs Practitioner Award Certificate in Customs Legislation and Procedures (Delivered by KGH Customs) Certificate in Customs Duty Calculation (Delivered by KGH Customs) Diploma in International Trade Customs Practitioner Award Diploma in International Trade Diploma in World Customs Compliance and Regulations Foundation Degree jointly delivered with the University of Plymouth MSc International Trade, Strategy and Operations with Warwick University

Specialist Courses •

• • •

Award in International Transport and Documentation International Marketing Specialist Finance of International Trade Specialist Selling Services, Software and Skills Overseas

Apprenticeships Working in conjunction with employers and Universities, the Institute has access to qualifications which are available now and funded through the apprenticeship levy, these apply for professional and degree qualifications, including Bachelors and Masters Degrees. • • •

International Freight Forwarding Specialist Apprenticeship (Level 3) Chartered Manager Degree Apprenticeship (BSc Professional Management Practice) with the University of Plymouth Supply Chain Leadership Degree Apprenticeship (BSc Professional Practice in Supply Chain Leadership) with CP Training Services

Using our 4 Pillars of Learning, the IOE&IT qualifications offer students the opportunity to apply their learning to their current employer, or a business that they know well:

Learning Pillar 1: World Business Environment Learning Pillar 2: Market Research & marketing / selling in a different culture Learning Pillar 3: Finance of international trade, getting paid and how foreign exchange works Learning Pillar 4: Compliance, regulations and logistics OR Selling services overseas

As part of IOE&IT qualifications, students will plan, research and implement a work-based project that will act as a useful strategic management tool in each of the main topics they study. Each paper will produce a useful piece of work based on the company’s own product or offering which allows the student to gain new knowledge to be useful in the business. This style of work-based projects ensures that all study is relevant to the student’s business context. Working on these projects using the organisation’s structure provides excellent opportunities for the student to apply theoretical ideas in real world contexts.

The employee will essentially become a practitioner-researcher to undertake each project, producing pieces of work with the potential to yield tangible benefits for the sponsor business – a benefit for both the student who qualifies and the employer who has a set of reports specifically about exporting and their own business.

*International Trade Logistic Operations is delivered through our approved centres

The British Embassy Ulaanbaatar maintains and develops relations between the UK and Mongolia. In 1963 Britain became the first Western country to establish diplomatic relations with Mongolia. The British Embassy Ulaanbaatar actively promotes British policies, values and investment opportunities for both British and Mongolian companies in the UK and Mongolia respectively. To achieve this, they work closely with the Mongolian Government and private contacts from a wide range of sectors, including construction, mining, education and green growth industries.

The British Embassy Ulaanbaatar reports to the British Government on political developments in Mongolia and helps to arrange high-level meetings between the UK and Mongolia. They also provide consular services and assistance for British citizens, unrepresented Commonwealth citizens and some EU nationals.

Find out more on their UK and Mongolia news page, see: www.gov.uk/world/mongolia /news. The British Embassy Ulaanbaatar provides services to British nationals living in and visiting Mongolia. You can access UK Government services while in Mongolia, here: www.gov.uk/world/mongolia.

Urgent assistance If you are in Mongolia and you need urgent help (for example, you have been attacked, arrested or someone has died), call 97611458133. If you are in the UK and worried about a British national in Mongolia, call 020 7008 1500. Get an emergency travel document You can apply for an emergency travel document if you are abroad and your passport has been lost or stolen, damaged or expired, and you cannot get a new or replacement passport in time to travel, here: 97

www.gov.uk/emergency-travel-document.

Apply online for an emergency travel document, here: www.gov.uk/ emergency-travel-document.

If the person needing the emergency travel document is under 16, a parent or guardian should apply on their behalf.

If you are travelling in more than 3 weeks, check if you can get a new or replacement passport in time to travel, here: www.gov.uk/renew-adult-passport.

If you are not a British citizen or have not had a British passport before If you are not sure, check if you are a British citizen at: www.gov.uk/checkbritish-citizenship.

If you are not a British citizen but think you may be eligible, contact the British Embassy Ulaanbaatar to apply for an emergency travel document, here: www.gov.uk/world/organisations/britishembassy-ulaanbaatar#contact-us.

Once you have contacted them, you will be advised to make an appointment to apply for an emergency travel document at the British Embassy Ulaanbaatar, here: www.consularappointments.service.gov.uk/fco/#!/ british-embassy-ulaanbaatar/issuing-anemergency-travel-document/slot_picker. Other consular services

Contact details British Embassy Ulaanbaatar Peace Avenue 30, Bayanzurkh District Ulaanbaatar ZIP 13381 Ulaanbaatar Mongolia Email: Enquiries.Mongolia@fco.gov.uk Telephone: +976 11 458 133 Fax: +976 11 458036

Opening hours (local time): Monday to Thursday, 8:30am to 1:00pm / 2:00pm to 5:00pm Friday, 8:30am to 1:30pm Consular services Peace Avenue 30, Bayanzurkh District Ulaanbaatar ZIP 13381 Mongolia

notarial and documentary services See the full list of notarial and documentary services the British Embassy Ulaanbaatar provides in Mongolia, here: www.gov.uk/guidance/notarial-anddocumentary-services-guide-for-mongolia.

Contact form: www.contact-embassy.service.gov. uk/?country=Mongolia&post=British% 20Embassy%20Ulaanbaatar

Consular fees They accept payment by cash in the local currency on the day of the appointment. For the cost of all their services please visit their fees page, here: www.gov.uk/government/publications /mongolia-consular-fees.

Consular opening *(local time): Tuesday and Thursday 2:00pm to 4:00pm *Please note except in emergencies bookings must be made in advance

Consular Contact: +976(11) 458133

SUPPORTInG ORGANISATIONS

The Institute of Export & International Trade

The Institute of Export & International Trade Export House Minerva Business Park Lynch Wood Peterborough PE2 6FT, UK T: +44 (0) 1733 404400 www.export.org.uk

Department for International Trade (DIT)

Department for International Trade (DIT) If you have a specific enquiry about the Mongolian market which is not addressed by the information in this guide, you may contact: E: enquiries@trade.gsi.gov.uk T: +44 (0)20 7215 5000

Otherwise contact DIT at the British Embassy Ulaanbaatar directly, for more information and advice on opportunities for doing business in Mongolia: UK Department for International Trade Ulaanbaatar British Embassy Peace Avenue 30 Bayanzurkh District Ulaanbaatar 13381, Mongolia

E: commercial.mongolia@fco.gov.uk T: +976 11 458 133

Visit the Website and download the free Mobile App

UK Export Finance is the UK’s export credit agency. UKEF’s mission is to ensure that no viable UK export fails for lack of finance or insurance from the private sector, while operating at no net cost to the taxpayer.

We help UK companies of all sizes and in all sectors win, fulfil and get paid for export contracts. We provide insurance to exporters and guarantees to banks to share the risks of providing export finance. In addition, we can make loans to overseas buyers of goods and services from the UK.

SUPPORTInG ORGANISATIONS

UK Export Finance

As the world's first export credit agency, established in 1919, we've been innovating since day one. •

• •

Last year, we provided £2.5 billion of support for UK exports, helping 191 companies sell to 75 markets around the world. 77% of all companies we supported were small to medium-sized businesses.

We also lent £666 million directly to overseas buyers to help them buy from the UK more than double the amount for 2016 to 2017.

New business enquiries: To check your eligibility for trade finance and insurance: Visit: www.great.gov.uk/get-finance T: +44 (0) 20 7271 8010 E: customer.service@ukexport finance.gov.uk

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SUPPORTInG ORGANISATIONS

Mongolian British Chamber of Commerce (MBCC)

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Mongolian British Chamber of Commerce (MBCC) 14 Old Queen Street London SW1H 9HP

John.grogan@mongolianbritishcc.org.uk T: +44 (0)1943 862 092

British Expertise

British Expertise 23 Grafton Street London W1S 4EY

T: +44 (0) 20 7824 1920 F: +44 (0) 20 7824 1929

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www.britishexpertise.org

International Market Advisor

International Market Advisor IMA Ltd 2nd Floor 32 Park Green Macclesfield SK11 7NA Email: info@ima.uk.com

General enquiries switchboard T: +44 (0) 1298 79562

www.DoingBusinessGuides.com Media enquiries Newsdesk & out of hours T: +44 (0) 1298 79562

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Visit the Website and download the free Mobile App

AST Language Services Ltd Unit 8, Ayr Street, Nottingham NG7 4FX United Kingdom T: +44 (0) 115 970 5633 F: +44 (0) 845 051 8780 E: office@astls.co.uk

MARKET EXPERTS

Language Services

www.astlanguage.com

Company Formation/Joint Venture Services

4u Mongolian Company Formation LLC Dermot: T: +976 80117575 Ulziimaa: T: +976 80101155 OKO: T: +976 70117575

E: infomcf4u@yahoo.com www.mcf4u.com

Joint Venture/Partner Services

Cashmere Holdings Mongolia EVSEG LARGEST FACTORY STORE Southwest to the Bogd khanâ&#x20AC;&#x2122;s winter palace museum T: 11-342598, 9995-3027

E: export@cashmereholding.com www.evsegcashmere.mn

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MARKET EXPERTS

Accountants/Professional Business Services

IARUDI Financial Consultancy TMZ LLC T: (Mongolia): +976 7012 7077 T: (UK): +44 74444 91030 E: enquiries@iarudi.com www.iarudiconsulting.com

Contact name: Chris Hurd CA

Business Group

Mongolian Business Database /B2B Mongolia International Commercial Center 13th floor Jamyan Gun Street Ulaanbaatar Mongolia

www.mongolianbusinessdatabase.com www.b2bmongolia.com E: contact@mongolianbusiness database.com T: 976 99066062

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Visit the Website and download the free Mobile App

THE EnGLISH SCHOOL OF MOnGOLIA InTERnATIOnAL SCHOOL Tokyo Street-89, 1st Khoroo Bayanzurkh District Ulaanbaatar -49 Mongolia-13380 P.O.Box â&#x20AC;&#x201C; 654

MARKET EXPERTS

School

T: 976-70154015; 976-11-451265 E: info@esm.edu.mn www.esm.edu.mn Facebook: https://www.facebook.com/englishschoolofmongolia/

Banking/Financial Services

Trade and Development Bank of Mongolia 14210 Peace avenue 19 Sukhbaatar district 1st khoroo Ulaanbaatar Mongolia T: (976) 1900-1977

E: info@tdbm.mn www.tdbm.mn

Contact name: Bayarsaikhan Otgonbayar Senior Account Manager International and Corporate Relations Department

T: (976) 11 319943 | 1461-( int ) M: (976) 8808-0473 F: (976) 11 312418

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Trade shows

A trade show is a method of promoting a business through the exhibition of goods and services, an organised exhibition of products, based on a central theme, where manufacturers meet to show their products to potential buyers.

Taking part in overseas exhibitions is an effective way for you to test markets, attract customers, appoint agents or distributors and make sales. DIT's Tradeshow Access Programme (TAP) provides grant support for eligible SME firms to attend trade shows overseas. Participation is usually as part of a group, a great advantage for inexperienced businesses, and is usually led by one of DIT's Accredited Trade Associations (ATOs). ATOs work with DIT to raise the profile of UK groups and sectors at key exhibitions. For more information visit: https://www.gov.uk/guidance/tradeshow-access-programme.

IOE&ITâ&#x20AC;&#x2122;s events: www.export.org.uk/events/event _list.asp 10 Times (formerly BizTradeShows.com): www.10times.com/mongolia British Expertise Events: https://www.britishexpertise.org/ events/ EventsEye.com online database: www.eventseye.com DIT online events search facility: https://www.events.great.gov.uk/ ehome/index.php?eventid=20018 3029& www.Mongolia.DoingBusinessGuide.co.uk

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Useful Links Country information:

Export ďŹ nance & insurance:

BBC website: http://news.bbc.co.uk/1/hi/country_ profiles/default.stm

British Insurance Brokers Association (BIBA): www.biba.org.uk

FCO Country Profile: https://www.gov.uk/foreign-traveladvice/mongolia

UK Export Finance (formerly ECGD): www.gov.uk/government/organisations /uk-export-finance

Culture & communications: ICC â&#x20AC;&#x201C; The international language association: http://www.icc-languages.eu/ Customs & regulations: HM Revenue & Customs: https://www.gov.uk/government/ organisations/hm-revenue-customs

Intellectual Property: Intellectual Property Office: https://www.gov.uk/government/ organisations/intellectual-property-office World Intellectual Property Organization (WIPO): http://www.wipo.int/treaties/en/text.jsp? file_id=288514 Standards & technical regulations:

Economic information: The Economist: https://www.economist.com/topics Trading Economics: www.tradingeconomics.com Export control: Export Control Joint Unit: https://www.gov.uk/guidance/ beginners-guide-to-export-controls

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British Standards Institution (BSI): https://www.bsigroup.com/en-GB/ industries-and-sectors/import-export/ Export Control Joint Unit (ECJU): https://www.gov.uk/government/ organisations/export-control-organisation Intellectual Property Office: https://www.gov.uk/government/ organisations/intellectual-property-office National Physical Laboratory: http://www.npl.co.uk/

Visit the Website and download the free Mobile App

Trade statistics: HM Revenue and Customs (HMRC): https://www.uktradeinfo.com/statistics/ buildyourowntables/pages/table.aspx National Statistics Information: https://www.gov.uk/search/researchand-statistics?content_store_document _type=upcoming_statistics Office for National Statistics: http://www.ons.gov.uk/

TravelHealthPro: https://travelhealthpro.org.uk/countries NHS (Scotland): http://www.fitfortravel.nhs.uk/ destinations.aspx NHS Choices: https://www.nhs.uk/using-the-nhs/health care-abroad/ International trade: British Chambers of Commerce (BCC): www.britishchambers.org.uk

Trade shows: British Expertise Events: https://www.britishexpertise.org/events/

British Council: www.britishcouncil.org

EventsEye.com online database: www.eventseye.com

British Expertise: www.britishexpertise.org

DIT Events Portal: https://www.events.great.gov.uk/ehome /index.php?eventid=200183029&

British Franchise Association: http://www.thebfa.org/international

Travel advice: FCO Travel: www.gov.uk/browse/abroad FCO Foreign Travel Insurance: https://www.gov.uk/guidance/foreigntravel-insurance Healthcare abroad: Travel Health: www.travelhealth.co.uk

Centre for the Protection of National Infrastructure (CPNI): http://www.cpni.gov.uk/ Confederation of British Industry (CBI): www.cbi.org.uk Department for Business, Energy & Industrial Strategy (BEIS): https://www.gov.uk/government/ organisations/department-for-businessenergy-and-industrial-strategy

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Department for International Trade (DIT): https://www.gov.uk/government/ organisations/department-for-international -trade

Organisation for Economic Co-operation and Development (OECD): http://www.oecd.org/

DIT E-Exporting Programme: https://www.gov.uk/guidance/e-exporting

Overseas Business Risk: https://www.gov.uk/government/ collections/overseas-business-risk

Exporting is GREAT: https://www.great.gov.uk/

Transparency International: http://www.transparency.org/

Foreign & Commonwealth Office (FCO): www.gov.uk/government/organisations /foreign-commonwealth-office

UK Trade Tariff: https://www.gov.uk/trade-tariff

Heritage Foundation Index of Economic Freedom: https://www.heritage.org/index/ranking Institute of Directors (IoD): www.iod.com Institute of Export & International Trade (IOE&IT): www.export.org.uk International Monetary Fund (IMF): http://www.imf.org/external/index.htm Market Access Database: http://madb.europa.eu/madb/index Publi.htm Open to Export: http://opentoexport.com/

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UK Visas: https://www.gov.uk/government/ organisations/uk-visas-and-immigration World Bank Group economy rankings: http://www.doingbusiness.org/en/rankings World Economic Forum Global Competitiveness Report: http://reports.weforum.org/globalcompetitiveness-report-2018/ Mongolian websites: Central Bank of Mongolia: https://www.mongolbank.mn/eng/ Embassy of Mongolia in the United Kingdom: http://embassyofmongolia.co.uk/?lang= en

Visit the Website and download the free Mobile App

General Authority for State Registration (GASR): http://burtgel.gov.mn/eng/ Ministries of Justice and Internal Affairs: https://www.zasag.mn/en/m/ministry-ofjustice Ministry of Construction and Urban Development (MCUD): https://zasag.mn/en/m/mcud

Ministry of Road and Transport (MRT): https://www.zasag.mn/en/m/mrt Mongolia Immigration Agency: http://www.immigration.gov.mn/index Mongolian Agency for Standardization and Metrology (MASM): https://masm.gov.mn/masmj/# Mongolian Agency for Standardization and Metrology (MASM) webstore: https://masm.isolutions.iso.org/sites/ masm-nws/home.html

Ministry of Education, Culture and Science (MES): https://www.zasag.mn/en/m/mes Ministry of Energy: https://www.zasag.mn/en/m/ministry-ofenergy Ministry of Environment and Tourism: https://www.zasag.mn/en/m/megd

Mongolia Consular Department: http://consul.mn/eng/02visae.php Mongolian Customs Office: http://www.customs.gov.mn/en/ Mongolian General Department of Taxation (MTA): http://en.mta.mn/

Ministry of Finance (MOF): https://www.mof.gov.mn/en/ Ministry of Food, Agriculture, Light Industry: https://www.zasag.mn/en/m/mia

Mongolian Traffic Research Institute: http://www.traffic-institute.mn/

Ministry of Foreign Affairs of Mongolia (MFA): http://www.mfa.gov.mn/?lang=en Ministry of Health: https://zasag.mn/en/m/ministry-of-health

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ABOUT US Launched in 2007, Start Up Overseas has become the deﬁnitive online resource for companies who are looking to expand internationally, export products or set up overseas operations. We have all the information you will need to trade in 60 countries.

LOOKING FOR HELP DOING BUSINESS IN MONGOLIA? You are not alone. In January 2017, 29,064 companies used Start Up Overseas to ﬁnd up to date information – and to ﬁnd service providers who could help.

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CONTACTUS To contact the sales team: simon@startupoverseas.co.uk To contact the editorial team: caroline@startupoverseas.co.uk If you have any general questions email using the above details or call us on: +44 (0)117 907 3520. See more at: www.startupoverseas.co.uk/aboutus

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Enter the Open to Export Action Plan Competition for the chance to win £3,000 cash and further support towards your plans for international growth. Complete your plan using our online planning tool.

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Disclaimer Whereas every effort has been made to ensure that the information given in this Guide is accurate, neither International Market Advisor (IMA), the Institute of Export & International Trade (IOE&IT), the British Embassy Ulaanbaatar, the Mongolian-British Chamber of Commerce (MBCC), UK Export Finance (UKEF), Department for International Trade (DIT), or the Foreign & Commonwealth Office (FCO), accept liability for any errors, omissions or misleading statements and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. The purpose of the Doing Business Guides, prepared by International Market Advisor (IMA) is to provide information to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The report's contents were believed (at the time that the report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by IMA, the IOE&IT, the British Embassy Ulaanbaatar, the Mongolian-British Chamber of Commerce (MBCC), UKEF, DIT or the Foreign and Commonwealth Office (FCO) as to the accuracy of the report, its completeness or its suitability for any purpose.

In particular, none of the report's contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by IMA, IOE&IT, the British Embassy Ulaanbaatar, the Mongolian-British Chamber of Commerce (MBCC), UKEF, DIT, or the FCO for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the report. No warranty is given, or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

Contains public sector information licensed under the Open Government Licence v3.0.

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Quick facts Location: Northern Asia, between China and Russia Area: 1,564,116 km2 Population: 3.2 million Urban population: 68.4% Capital city: Ulaanbaatar GDP per capita: US $4,026.3 Languages: Mongolian 90% (official) (Khalkha dialect is predominant), Turkic, Russian (1999) Government: semi-presidential republic Legal system: civil law system influenced by Soviet and Romano-Germanic legal systems; constitution ambiguous on judicial review of legislative acts Currency: Mongolian Tughrik (Tögrög) (MNT) Climate: desert; continental (large daily and seasonal temperature ranges) Natural resources: oil, coal, copper, molybdenum, tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver, iron Natural hazards: dust storms; grassland and forest fires; drought; "zud," which is harsh winter conditions Time difference: UTC+8 Internet country code: .mn National holidays: Naadam (games) holiday (commemorates independence from China in the 1921 Revolution), 11th-15th July Constitution Day (marks the date that the Mongolian People's Republic was created under a new constitution), 26th November (1924) National symbols: soyombo emblem; national colours: red, blue, yellow

[Source – FCO Economics Unit, CIA World Factbook (August 2019)]

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