Table of Contents FOREWORD ................................................................................................................................................................ 1 TRINIDAD AND TOBAGO/EL SALVADOR TRADE AGREEMENT ............................................................... 1 SECTION 1: MARKET OVERVIEW ..................................................................................................................................2 1.1
Introduction ...............................................................................................................................................2
1.2
Population ..................................................................................................................................................2
1.3
Demographics ............................................................................................................................................2
1.4
Climate ........................................................................................................................................................2
1.5
Language ....................................................................................................................................................2
1.6
Hours of Business ......................................................................................................................................3
1.7
Public Holidays .........................................................................................................................................3
1.8
Travel & Transportation ...........................................................................................................................3
1.9
Time Zone ..................................................................................................................................................4
1.10
Communication.....................................................................................................................................4
SECTION 2: ECONOMIC AND POLITICAL ENVIRONMENT ............................................................................................ 5 2.1
Economic Performance ............................................................................................................................. 5
2.2
Business ......................................................................................................................................................6
2.3
Labour Force ..............................................................................................................................................6
2.4
Political Stability and Structure ...............................................................................................................6
SECTION 3: TOP MARKET OPPORTUNITIES & PROSPECTS ...........................................................................................6 3.1
Aerated Beverages Products ....................................................................................................................6
3.2
Jams and Jellies Products .........................................................................................................................7
3.3
Juices ...........................................................................................................................................................7
SECTION 4: MARKET ENTRY STRATEGIES ....................................................................................................................8 4.1
Using an Agent/Distributor .....................................................................................................................8
4.2
Joint Ventures/Licensing ..........................................................................................................................8
4.3
Franchising .................................................................................................................................................8
4.4
Selling to the Government .......................................................................................................................8
4.5
Employing Staff in the Market ................................................................................................................9
SECTION 5: SELLING, MARKETING & PROMOTIONS....................................................................................................9 5.1
Selling Factors/Techniques.......................................................................................................................9
5.2
Trade Promotion ..................................................................................................................................... 10
5.3
Advertising .............................................................................................................................................. 10
5.4
Direct Marketing ..................................................................................................................................... 10
5.5
Distribution and Sales Channels ........................................................................................................... 10
5.6
Pricing ....................................................................................................................................................... 11
5.7
Payment Terms ........................................................................................................................................ 12
5.8
Protecting Your Intellectual Property................................................................................................... 13
5.9
Due Diligence........................................................................................................................................... 13
SECTION 6: REGULATIONS & STANDARDS................................................................................................................. 14 6.1
Sanitary Product Registration................................................................................................................ 14
6.2
Product Shipment/Samples .................................................................................................................... 15
6.3
Packaging, Labelling and Marking Requirements ............................................................................. 15
6.4
Temporary Entry ..................................................................................................................................... 16
6.5
Customs Regulations .............................................................................................................................. 16
SECTION 7: TRADE ENVIRONMENT ............................................................................................................................ 17 7.1
Import and Export Statistics .................................................................................................................. 17
7.2
Import Tariffs & Taxes ............................................................................................................................ 20
7.3
Trade Barriers .......................................................................................................................................... 20
7.4
Prohibited and Restricted Imports ........................................................................................................ 21
7.5
Shipping Information ............................................................................................................................. 21
7.6
Trade Agreements ................................................................................................................................... 21
SECTION 8: FINANCING EXPORTS TO COSTA RICA.................................................................................................... 22 SECTION 9: USEFUL CONTACTS ................................................................................................................................. 23 Customs and Excise Division .......................................................................................................................... 23 Government of the Republic of Trinidad and Tobago ................................................................................ 23 Custom House (Port-of-Spain)........................................................................................................................ 23 Appendices................................................................................................................................................................... 26 Appendix I – Government Tenders from El Salvador ................................................................................. 27 Appendix II – Minimum Wages ..................................................................................................................... 30 Appendix III – Public Translators .................................................................................................................. 31
FOREWORD This Market Guide is intended to give Trinidad & Tobago exporters relevant, accurate and valuable information for successfully exporting their goods to El Salvador. The information contained therein is based on exporTT’s visits to the market, in-market consultant information, and desk research. Feel free to contact us at 1.868.623.5507 to discuss your exporting needs.
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TRINIDAD AND TOBAGO/EL SALVADOR TRADE AGREEMENT On October 10, 2014, after four rounds of negotiations, El Salvador and Trinidad and Tobago successfully concluded the Partial Scope Trade Agreement (PSTA) that will strengthen the trade and cooperation ties between the parties. The legal instrument includes Market Access, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies and Dispute Settlement Disciplines.
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SECTION 1: MARKET OVERVIEW 1.1 Introduction The smallest country in Central America geographically, El Salvador has the third largest economy in the region. The country has a population of some 6.1 million people, 37% of whom live below the poverty line. El Salvador is described as having a large divide between the upper and lower classes with a small middle class, which accounts for about 7% of the population. It borders the North Pacific Ocean, between Guatemala and Honduras. There are 14 departments: Ahuachapan, Cabanas, Chalatenango, Cuscatlรกn, La Libertad, La Paz, La Uniรณn, Morazรกn, San Miguel, San Salvador, San Vicente, Santa Ana, Sonsonate, and Usulutan. The capital is San Salvador and the country gained independence from Spain on September 15, 1821.
1.2
Population
Population: Population Growth Median Age
Life Expectancy
6,125,512 (July 2014 est.) 0.27% (2014 est.) Total: 25.6 years Male: 24.1 years Female: 27.1 years (2014 est.) 74.18 years
Source: CIA World Fact book
1.3
Demographics
Gentilic:
Salvadoran Salvadorian Salvadorean
Ethnic Groups:
Mestizo 86.3%, White 12.7%, Amerindian 1% (2007 census)
Religions:
Roman Catholic 57.1%, Protestant 21.2%, Jehovah's Witnesses 1.9%, Mormon 0.7%, other religions 2.3%, none 16.8% (2003 est.)
Source: CIA World Fact book
1.4 Climate The weather is tropical on the coast and temperate in the uplands. The rainy season runs from May to October and the dry season runs from November to April. 1.5 Language The official language is Spanish, however Nahua is the language among some Amerindians.
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1.6 Hours of Business Commercial hours usually run from 8:00 a.m. to noon and from 2:00 p.m. to 4:00 p.m. or 5:00 p.m. The traditional siesta, from around noon to 2:00 p.m., is still popular there. Breakfast meetings are common and usually begin as early as 7:00 - 7:30 a.m. Dinner meetings could begin around 9:00 - 9:30 p.m. Lunch meetings are also frequently scheduled. 1.7
Public Holidays
MONTH January April
DAY
OBSERVANCE
1 17
Año Nuevo (New Year's Day) Maundy Thursday)
18
Good Friday
May
19 1
Holy Saturday Labor Day
August
4
Celebrations of San Salvador
August
5
Celebrations of San Salvador
6
Celebrations of San Salvador
September
15
Independence Day
November
2
All Soul's Day
December
25
Christmas Day
* Salvadoran government offices remain closed for an entire week during Holy Week, Feast of San Salvador Holidays (early August), and between Christmas and New Year’s Eve. Many offices are closed during the period from December 15 to the end of the first week in January. Exporters should not visit the country for business purposes during these periods. 1.8
Travel & Transportation
1.8.1 Airline Travel The Monseñor Óscar Arnulfo Romero International Airport (Aeropuerto Internacional Monseñor Óscar Arnulfo Romero) is located about 50 km from the capital San Salvador. Individual Entry Requirements 1. Valid Passport (should not be expiring in 6 months) 2. No visa required for less than 30 days stay 3. Airline Ticket Copa Airline (Non-Stop): TT to Panama = 3 hours, 7 minutes; Panama to El Salvador = 2 hour, 5 minutes American Airline via Miami (Non-Stop): (US Visa required). TT to Miami = 3 hours, 55 minutes; Miami to San Pedro Sula = 2 hours 55 minutes; San Pedro Sula to El
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Salvador = 50 minutes. Total flight is a minimum of 6 hours, 28 minutes and it is dependent on the number of stops Individual Exit Requirements Valid Passport Airline Ticket Departure Tax = $34.86 which is included in the airline ticket price. 1.8.2 Ground Transportation Taxicab services are normally provided within the perimeter of reputable hotels and are reliable. However, the public transit bus service is not recommended. 1.9 Time Zone Central Standard Time UTC/GMT –6 hours Time Difference: 2 hours behind Trinidad & Tobago 1.10 Communication Calls from Trinidad to El Salvador = 011 – 503 – 8 digit phone number Calls from El Salvador to Trinidad = 00 – 1 – 868 – 7 digit phone number
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SECTION 2: ECONOMIC AND POLITICAL ENVIRONMENT 2.1
Economic Performance
Indicator GDP:
Economic Performance $47.47 billion (2013 est.)
GDP per Capita:
$7,500 (2013 est.)
Growth:
1.6% (2013 est.)
Currency:
GDP by Sector: Inflation Rate: Agricultural Products:
The national currency is the US dollar The current exchange rate is 1US$ = 1US$ Banknotes are available in $= 1; 2; 5; 10; 20; 50; 100; 500;1,000; 5,000; 10,000; 100,000 Coins are available in cents =1; 5; 10; 25; 50; 100 Agriculture: 10.3% Industry: 29.5% Services: 60.1% (2013 est.) 0.9% (2013 est.) Coffee, Sugar, Corn, Rice, Beans, Oilseed, Cotton, Sorghum; Beef, Dairy Products
Source: CIA World Fact book
Despite being the smallest country geographically in Central America, El Salvador has the third largest economy in the region. The economy took a hit from the global recession and real GDP contracted by 3.5% in 2009. The economy began a slow recovery in 2010 on the back of improved export and remittances figures. Remittances accounted for 16% of GDP in 2009, and about a third of all households receive these transfers. In 2006 El Salvador was the first country to ratify the Dominican Republic-Central American Free Trade Agreement (CAFTA-DR), which has bolstered the export of processed foods, sugar, and ethanol, and supported investment in the apparel sector amid increased Asian competition and the expiration of the Multi-Fiber Agreement in 2005. El Salvador has promoted an open trade and investment environment, and has embarked on a wave of privatizations extending to telecom, electricity distribution, banking, and pension funds. In late 2006, the government and the Millennium Challenge Corporation signed a five-year, $461 million compact to stimulate economic growth and reduce poverty in the country's northern region, the primary conflict zone during the civil war, through investments in education, public services, enterprise development, and transportation infrastructure. With the adoption of the US dollar as its currency in 2001, El Salvador lost control over monetary policy. Any counter-cyclical policy response to the downturn must be through fiscal policy, which is constrained by legislative requirements for a two-thirds majority to approve any international financing, and by already high levels of debt. Source: CIA world fact Book
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2.2 Business El Salvador ranked 118 in the 2014 Ease of Doing Business report. The main areas of concern are protecting investors (170), paying taxes (165) and enforcing contracts (68). 2.3
Labour Force
Labour Force:
2.738 million (2013 est.)
Labour Force by occupation:
Agriculture: 21% Industry: 20% Services: 58% (2011 est.)
2.4 Political Stability and Structure Three powers: Executive: President and Ministers Legislative: 84 elected representatives Judiciary President: SANCHEZ CEREN (since 1 June 2014) Political Party: ARENA Presidential elections: Held every 5 years
SECTION 3: TOP MARKET OPPORTUNITIES & PROSPECTS 3.1 Aerated Beverages Products El Salvador is a net importer of aerated beverages where the imported value of aerated beverages each year exceeds the value being exported. There were minimal increases in the values of imported drinks from 2007 to 2011; however the exported values of the beverages almost doubled over the five years. In the year 2007, El Salvador imported almost three times as much drinks as they exported but by the year 2011 imports exceeded exports by less than 40%. Six countries were responsible for all of El Salvador’s imports of aerated/soft drinks during 2011. Guatemala was the principal supplier of the imported soft drinks to El Salvador during 2011. The market is very concentrated as Guatemala alone supplied over 95% of the imports. The products are usually transported via road across the border from Guatemala to El Salvador. Of the top exporting countries only Mexico, Spain and USA pay between 10-15% tariffs, while the remaining countries which have free trade agreement with El Salvador pay no tariffs. A total number of seventy-four aerated beverages were observed in the market and 35% of the drinks were imported from Embotelladora La Mariposa which is in Guatemala. Page 6 of 27
The most promising sub-sectors for Aerated Beverages are: Non-alcoholic beverages (excl. water, fruit or vegetable juices) Waters including mineral & aerated, containing sugar or sweeting matter or flavored 3.2 Jams and Jellies Products El Salvador is a net importer of jams/jellies. Even though the value imported has steadily declined from 2007 to 2011 with the value being almost 50% less in 2011 as compared to 2007; the imported value of the products each year still exceeds the value being exported. Imports increased slightly from 2010 to 2011. The value of items exported has increased over the five years and by the year 2011 had almost doubled the value exported in 2007. Three countries were responsible for 100% of the imports of jams/jellies into El Salvador in the year 2011; Costa Rica, Mexico and Guatemala. The market is therefore very concentrated. None of the countries pay any tariffs when exporting jam/jellies into El Salvador as they all have free trade agreements with El Salvador. The most promising sub-sectors for Jams and Jellies are: Jams, fruit jellies & marmalades Jams, jellies, marmalades, purees or pastes of fruit or nut pastes, obtained by cooking, even with added sugar or other sweetening homogenized preparations 3.3 Juices Statistics reveal that El Salvador has an active trade market for juices and research has shown that El Salvador is a net exporter of juices. However, the country imports large quantities of juices from Guatemala and Honduras. The most promising sub-sectors for Juices are: Other orange juices Other mixtures, fruit juices, guava
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SECTION 4: MARKET ENTRY STRATEGIES 4.1 Using an Agent/Distributor Retaining a local agent or distributor is strongly recommended in El Salvador. As with all countries, care should be taken when appointing an agent as it can be costly to terminate the relationship prematurely and difficult to establish definitive reasons for doing so. It should be noted that redress for commercial disputes can prove difficult as a result of the damage suffered by the Salvadoran legal institutions during the war. It may be prudent to hire a local attorney when preparing contracts or when considering opening a business in El Salvador. El Salvador has approximately 300 distributors of various sizes along with a distributors association. The association has about 40 members and their membership accounts for the distribution of 85% of the consumer products in El Salvador. Information on their members can be obtained through the Distributors Association’s website www.ades.org.sv . Exporters wishing to trade with El Salvadorian importers should verify the importers’ information by viewing their information on the Distributors Association’s website (if they are a member) or by contacting the country’s Chamber of Industry and Commerce. Agency Legislation Protection of the agent/principal relationship is enshrined in the Salvadoran Commercial Code (Sections B and C of chapters III, Title III). The code stipulates conditions under which an agency agreement can be terminated by the principal and also the terms of compensation that an agent can claim if the principal ends a relationship contrary to the provisions in the Code. 4.2 Joint Ventures/Licensing A joint venture is a contractual agreement in which "a merchant is bound to share, with one or more persons contributing goods or services, the profits or losses arising from one or more of his/her enterprise's operations or its turnover". Joint Ventures and the use of licenses of Trinidad & Tobago exporters must be legally established in a contract signed by both parties. Both types of relationships are regulated by the Salvadoran Commercial Code. 4.3 Franchising As the economy has grown and investor confidence has increased, inquiries about franchises are more common. With a continued rise in consumer spending, opportunities in this sector are expected to increase. 4.4 Selling to the Government Government tenders, domestic tenders, global tenders, tender notices, procurement news, project information, business opportunities, international competitive bids, request for proposal (RFPs), expression of interest (EOI) can be obtained for El Salvador. See Appendix I.
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4.5 Employing Staff in the Market There is no single national minimum wage, but it varies depending on the sector of the economy. The base salary is lower in the agriculture sector, while the highest is in the trade and services sector. See Appendix II.
SECTION 5: SELLING, MARKETING & PROMOTIONS 5.1 Selling Factors/Techniques Selling factors and techniques are described in the following five steps to master the selling process. STEPS
1. Greeting
2. Ask questions to understand the prospect
DESCRIPTION You need to ‘arrest’ the buyer: Pay attention to dress, hygiene, grooming, handshake, etc. Treat the buyer’s business card with respect and present your business card in a professional manner. Speak clearly, paying attention to voice, tone, eye contact, etc. Use correct titles and surnames. Have a positive body language. Don’t ask direct questions but ask leading questions in a conversation type manner to find out the buyer’s need and what he/she is looking for.
3. Present Benefits
Present the benefits of your product/s or service/s in a manner that aligns them to the need of the buyer.
4. Handle Objections
If the buyer is not interested in your product/s or service/s, don’t end the meeting in despair, remain calm. Instead, take the opportunity to find out more about the market and their needs so that you can possibly make adjustments to your product to suit their needs.
5. Close
Other Tips
It is very important to know and agree on the next steps which should include a thank you email which captures the essence of the conversation and the activities that would follow. Be prepared Know your business and your products Be confident Be a persuasive negotiator Confirm appointments at least 24 hours in advance and be on time. Prepare your marketing tools e.g. brochures, samples, PowerPoint presentations, etc. and make them come alive with images. Take notes and bring a note taker. Page 9 of 27
When using an interpreter, do not speak directly to the interpreter as if the buyer is absent, however keep the conversation focused on the buyer and allow the interpreter to interpret accordingly. 5.2 Trade Promotion Locally, exporTT offers trade promotion programmes periodically, including trade missions, trade shows, trade fairs, matchmaking events, conferences, etc. These programmes are conducted with a pre-approved budget and with an element of co-financing with the exporter for some activities. 5.3 Advertising El Salvador newspapers are among the best ways to promote sales of products and services. Depending on the target market, advertising is also effective in magazines. Sales catalogues and brochures should be translated into Spanish. Some retailers use various sales promotion strategies such as in-store promotions, advertising on their websites as well as daily specials in the newspapers. However, it is often expected that the distributor will share the cost of the advertisement. 5.4 Direct Marketing Limited communications and mail delivery capacity in El Salvador are obstacles to direct marketing. However, with privatisation, telecommunications are improving and the government is making efforts to upgrade its mail system. Door to door sales and direct-from-television sales are increasing. 5.5 Distribution and Sales Channels As in any market, El Salvador has the usual structure for a distribution pattern as follows:
Producer
Importer/ Distributor
Channel of Trade
End Customer
The import channels are by way of an importer/distributor, and some of the larger supermarkets import the item directly. Some of the wholesalers called “Mayoristas” also import items, but they mainly purchase items from distributors and sell them to their customers as wholesale items. Many items are sold through the “mayoristas” as they are numerous throughout the country and their clients purchase the items to sell in their villages. One owner of a Mayorista explained that they attach a 7% mark-up on their items. There are some other variants to find the end customer, whereby the same channel of trade makes an import without the intervention of an importer/distributor. Nevertheless this type of operation is not preferable to key players like Selectos or Walmart due to the fact that the importing process
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demands a lot of focus and therefore they have another enterprise making the imports and distributions for them. The following table provides information on each of the major supermarkets; Selectos, Walmart and Hiper Europa: STORES
MARKET REACH
More than 90 stores
Entire country
NAME
Selectos: http://www.superselectos.com/wfsucursales.aspx Owns the Brand: De Todo Walmart: http://walmartstores.com/AboutUs/9754.aspx Owns the Brands: Despensa de Don Juan & Despensa Familiar Hiper Europa
2 Hypermarkets 25 Supermarkets 50 Despensa Familiar Total 77 2 Supermarkets
Selected areas San Salvador
During our visit to the market, we were able to visit and asses some distributors or importers. Some were willing to share information about their needs and were also interested in the offer of Trinidad Tobago. Even though the Salvadorian market is a very competitive one, there exists room to for products from Trinidad Tobago. Buyers are generally interested to hear about a new offer, and if the economics are sufficient then a market entry should be considered. 5.6 Pricing The main factors that will determine the end price for products include the channel trade margins plus the import Taxes or DAI. Also, VAT is 13% to all products and there are special taxes to be considered when importing alcohol beverages or liquors, cigarettes. Example of Price Structure: Cost Build up Ex work cost Transport Cost from Plant to Port Cost of product FOB Puerto Espa単a Transport Cost 1% of FOB Inssurance CIF 15% DAI VAT Cost for discharging and Ware House Landed Cost of product w/o VAT 18%-22% Margin for Importer / Distributor Landed cost with Importer margin 13% VAT Selling price to trade channel w/o VAT Selling price to channel with VAT 22%- 28% Margin of Channel Trade Selling price to consumer w/o VAT Selling price with VAT
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
1.00 0.03 1.03 0.22 0.01 1.26 0.19 0.19 0.04 1.49 0.33 1.82 0.24 1.82 2.06 0.51 2.33 2.64
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We have assumed any exports from Trinidad & Tobago will start with a 20 foot container and will be handled as a consolidated transport, which means that various producer will use the same logistics in order to make more feasible and efficient.
Transport Cost Port Spain to San Salvador Lets assume 20 foot container 8 pallettes each pallette 70 cartons each carton 20 units Cost per unit
$ 2,500.00 $ 2,500.00 $ 312.50 $ 4.46 $ 0.22 $ 0.22
Cost of discharging
$
500.00
20 foot container 8 pallettes each pallette 70 cartons each carton 20 units Cost per unit
$ $ $ $ $
500.00 62.50 0.89 0.04 0.04
Cost to transport fro Plant to Port
$
300.00
20 foot container 8 pallettes each pallette 70 cartons each carton 20 units Cost per unit
$ $ $ $ $
300.00 37.50 0.54 0.03 0.03
5.7 Payment Terms Imports are subject to incoterms, which both parties can freely negotiate among themselves; however, Cost, Insurance and Freight (CIF) is often the preferred option, while several others still prefer to use Free on Board (FOB). While the method of payment can also be freely negotiated between both parties, many importers have indicated a preference to obtain at least 30 days credit. Once the business transaction has been defined, both parties should determine the means and method of payment, opting to have a bank account with banks that have branches or relationships with other banks. In terms of the payment currency, the United States dollar is the preferred currency for trade documents but other currencies are used when necessary.
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5.8 Protecting Your Intellectual Property Protection against patent infringement can be implemented by executing administrative and judicial actions. Administrative Actions These are based on the rights granted by the Intellectual Property Law, which provides that the owner of a patent can stop its unauthorised use by a third party. If the patent was granted for a procedure, use of such patent comprises manufacturing, sales, imports, storage and transit through the country, plus prohibition to use the procedure. The limits to the right of ownership are those mentioned in article 5 of the Paris Convention: private use, scientific investigation, and commercialisation of the patent once its term of protection has lapsed. The Intellectual Property Law provides an opposition procedure enabling the filing of observations to the patentability requirements of a new invention, within two months after publication of the patent extract notice in the Official Gazette. The applicant is granted the right to reply to any observations made by third parties and after analysing both, the Patent Examiner resolves whether or not the patent application moves to the examination phase. Judicial Actions These may be taken against patent infringement based on the Intellectual Property Law and the Mercantile Code or based on the Criminal Code. Intellectual Property Law and Mercantile Code-based actions must be filed before the Mercantile Courts in the Judicial District of San Salvador or in a court with mercantile jurisdiction in other districts. Criminal actions must be filed before the General Attorney's Office and their prosecution is made before a criminal court. The registration of a patent can be cancelled by filing a complaint before a Mercantile Court in the Judicial District of San Salvador or in a court with mercantile jurisdiction in other districts. Said cancellation action proceeds when it has been granted to a person other than the legitimate owner of the patented invention. The Intellectual Property Law also grants the legitimate owner of a patent, legal actions to re-vindicate it, if registered by an unauthorised third party. 5.9 Due Diligence Before finalizing any contract whether for sale or representation, Trinidad & Tobago exporters should obtain information on the bona fides of the foreign firms including reliable business and financial references. Also, the because of the language difference between Trinidad & Tobago and El Salvador, this presents opportunities for serious miscommunication and misunderstandings and sometimes with grave consequences. Therefore when entering into business with companies from El Salvador, it is imperative to utilize the services of a competent bi-lingual attorney to avoid communication failures. Page 13 of 27
SECTION 6: REGULATIONS & STANDARDS 6.1 Sanitary Product Registration El Salvador is a standards taker and not a standards maker. As such, EL Salvador does not have specific food legislation for imported foodstuffs. Instead, the Health Code is the most widely used tool to enforce local food safety. The Ministry of Public Health and Social Assistance is responsible for all registrations and authorisations to import, manufacture and sell foodstuffs and beverages as well as any raw materials used in the production process. Food imports must be authorised by a certificate of free sale that is certified by the Environment Safety Department. Fresh produce and products of animal origin are regulated by the Plant and Animal Health Division of the Ministry of Agriculture. The certificate of free sale is valid for one year. Most food products are inspected for safety at the port of entry. However, the Ministry carries out random testing at the retail and wholesale level to make sure that foodstuffs comply with all the required health and quality standards. In order for an exporter to register such products, an application must be filed at the Environmental Health Department with the following information: Petitioner’s name and address; Product description; Name, address and telephone number of the establishment or factory where the product is manufactured; Product use; Name, address and telephone of the supplier in El Salvador; Type of packaging material; Net content; Commercial brand name. * If there are different flavours of the drink, each flavour of the drink must be registered. This application must be filed with the following documents: Power of attorney granted in favour of the El Salvadoran attorneys or the company representative in the country, duly notarised at the nearest El Salvadoran consulate or by notary public; An original certificate of free sale of the product issued by Trinidad and Tobago health authorities and Apostille. The certificate must be translated to Spanish and duly notarised by an El Salvadoran lawyer; Functioning licence of the local warehouse where the product will be stored, usually obtained by the local distributor;
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Label of the product in Spanish (in various sizes if necessary), which will specify the product name, list of ingredients, name of manufacturer, importer and/or distributor and the expiration date, usage instructions if necessary; Product samples: See specifications in 6.2 below.
Usually when clearing a product through customs, a customs inspector, a customs police officer and a Health Ministry inspector are involved in the process. English is the commercial language used for import documents. On average, it takes approximately 3-5 days to clear a product. Most importers use a customs agent to expedite the clearing procedures. Just to note, the Ministry of Hacienda has implemented a system called “Teledespacho” designed to expedite the customs procedures. This system uses satellite technology to allow importers and exporters to send their commercial invoices. (Source: USDA GAIN Report)
6.2 Product Shipment/Samples Solid Products: 3 samples of the product weighing 200 grams each Liquid Products: 3 samples of the product weighing 200 mls each Alcoholic Beverages: 2 samples of 200mls each Bottled Water: 1 sample of 3.785 litres for the physical-chemical analysis and 1 sample of 3.785 litres for the microbiological analysis 6.3 Packaging, Labelling and Marking Requirements The following are the labelling requirements for products being imported into El Salvador: Retailers must have the price of the product either on the packaging or in a visible place. Products that are sold by weight or volume or any other measure must have the weight, volume, or an exact measure of the contents on the label. Labels on frozen and canned foods must include an expiration date. Labelling must be in Spanish language. In those cases that the original label is not in Spanish, a complementary Spanish label must be annexed to the product and should comply with all the existing labeling requirements. Nutrition facts must be stated on the back using the standards set by the USA. Name and contact information plus phone number of the company responsible for the importing and distribution. The registration number of the company and also of the product being imported. When the product is marketed in several presentations, there should be a label for each presentation. It was observed in the market that the soft drinks labels are similar to those in the Trinidad and Tobago market, however most bottles are slimmer and longer than those supplied in this country.
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6.4 Temporary Entry Customs may authorize temporary entry of foreign merchandise with temporary or partial suspension of duties for specific purposes under the condition that the merchandise is reexported within the time authorized and without any modification. A bond must be presented as the guarantee that the temporarily imported goods will be re-exported within the time authorized. The temporary entry of merchandise to be exhibited in fairs and trade shows is allowed provided that it will be exported in the same condition in which it arrived. Under the "Ley de Equipajes de Viajeros Precedents del Exterior" (Law on Incoming Travellers’ Luggage), small noncommercial imports not exceeding $500 or personal effects, as well as samples with no commercial value (under certain conditions) can enter El Salvador with an exempt status from import duties. 6.5 Customs Regulations The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for approving all exports emanating from Trinidad and Tobago. To export commercial goods, the exporter is required to have a customs broker fill out the required documentation. Commercial and non-commercial exporters must also perform the following actions: Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your broker; Submit the C82 Form along with other required documents (see below) to a customs officer at a Customs and Excise office for signature; Take the signed C82 Form and the goods to be exported to the Import/Export station from which the goods are to be exported. The basic documents required for exporting are as follows: Invoice showing the price paid locally Export licence (where applicable) Certificate of origin (where applicable)
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SECTION 7: TRADE ENVIRONMENT 7.1
Import and Export Statistics
TOTAL TRADE – EL SALVADOR Total Exports ($)
$5,491,094,000
Total Imports ($)
$10,771,953,000
Trade Balance ($)
-$5,280,859,000
Exports of goods and services (% of GDP)
11.6%
Imports of goods and services (% of GDP)
22.7%
TRADE PARTNERS
#
Top 10 Import Partners
Import Volume ($)000
1
United States of America
4190622
2
Guatemala
935413
3
Mexico
746015
4
China
702958
5
Honduras
560501
6
Venezuela
286801
7
Costa Rica
282889
8
Nicaragua
202785
9
Korea, Republic of
202456
10
Netherland Antilles
198572
Figure 1 - El Salvador’s major import partners
Page 17 of 27
#
Top 10 Export Partners
Export Volume $ 000
1
United States of America
2517514
2
Honduras
793301
3
Guatemala
721808
4
Nicaragua
323762
5
Costa Rica
229245
6
Panama
121742
7
Mexico
81895
8
Spain
79313
9
Canada
76685
10
Dominican Republic
74786
Figure 2 - El Salvador’s major exporting partners
TRADE COMMODITIES (at the 2 digit HS Code Level) OTHER
HS Code (2 digit) '27
Import USA Volume ($)
Top 10 Import Commodities Mineral fuels, oils, distillation products, etc.
'84
Machinery, nuclear reactors, boilers, etc.
'85
Electrical, electronic equipment
SLV
2030868
MEX
690723
CHN HND
GTM NIC
669620 NLD HKG
PAN
'39
Plastics and articles thereof
654612
'87
Vehicles other than railway, tramway
401286
'60
Knitted or crocheted fabric
393610
'48
Paper and paperboard, articles of pulp, paper and board
344306
'52
Cotton
327255
'72
Iron and steel
311563
'30
Pharmaceutical products
300866
Page 18 of 27
Figure 3 – El Salvador's major import commodities
Chart Title 5%
'27 Mineral fuels, oils, distillation products, etc
5%
'84 Machinery, nuclear reactors, boilers, etc
5% 33%
6%
'85 Electrical, electronic equipment '39 Plastics and articles thereof
6%
'87 Vehicles other than railway, tramway '60 Knitted or crocheted fabric
7%
'48 Paper and paperboard, articles of pulp, paper and board '52 Cotton 11%
11%
'72 Iron and steel 11%
HS Code (2 digit)
Top 10 Export Commodities
Export Volume ($)
'61
Articles of apparel, accessories, knit or crochet
1779837
'39
Plastics and articles thereof
317981
'62
Articles of apparel, accessories, not knit or crochet
285412
'17
Sugars and sugar confectionery
279055
'48
Paper and paperboard, articles of pulp, paper and board
269302
'85
Electrical, electronic equipment
237742
'09
Coffee, tea, mate and spices
234885
'72
Iron and steel
168370
'22
Beverages, spirits and vinegar
156974
'19
Cereal, flour, starch, milk preparations and products
136752 Page 19 of 27
Figure 4 - El Salvador's major export commodities
Chart Title
Articles of apparel, accessories, knit or crochet Plastics and articles thereof Articles of apparel, accessories, not knit or crochet
4%
Sugars and sugar confectionery
4% 4%
6%
Paper and paperboard, articles of pulp, paper and board
6%
46%
Electrical, electronic equipment
7% Coffee, tea, mate and spices
7% 8%
Iron and steel
8%
Beverages, spirits and vinegar Cereal, flour, starch, milk preparations and products
Foreign Trade with Trinidad & Tobago, 2002-2013 (000 USD) 2009 Exports Imports Balance Total Trade
2010
2011
2012
3,477 48,084 -44,607
2,660 15,138 -12,478
1,879 69,235 -67,356
3,237 28,039 -24,802
2013* 3,915 56,378 -52,463
51,561
17,798
71,114
31,276
51,561
7.2 Import Tariffs & Taxes In December 2008, the Customs Authority in El Salvador added to their website a section entitled “Tariff Online Query� where companies can learn: the import tariff under a Free Trade Agreement, if import permits are required, if there are import restrictions for a product, and specifically which government agency is responsible for permit issuance. The Tariff Online Query can be found at: http://appm.aduana.gob.sv/sacelectronico/ 7.3 Trade Barriers There are few trade barriers that affect the import of manufactured goods, however the barriers may depend on the various product tariffs.
Page 20 of 27
7.4 Prohibited and Restricted Imports Prohibited items include: certain firearms; articles (items), publications, movies, etc. which are immoral or obscene or pose a threat to the political, social, or economic order; opium with less than 9% morphine, scraps and opium ash, and any material used for smoking those products; non-stamped paper for cigarettes; counterfeit coins or bills, or machines for making these; certain silver coins; tokens that can be used as substitutes for legal coins; coffee trees; coffee seeds for planting; certain used vehicles; pet food and animal feed containing ruminant origin proteins. 7.5 Shipping Information Shipping goods from Port of Spain may take as little as 5 days to San Salvador, El Salvador. However, from Point Lisas to Acajutla, El Salvador, it may take 27 days. (Source: Linescape.com & JOCSailings.com)
It should be noted that schedules are subject to change and the cost of shipping often fluctuates alongside the price of oil. 7.6
Trade Agreements
Multilateral Agreements
Free Trade Agreements
Agreement/Partner(s)
Date of Signature
WTO members
07 May 1995 (Contracting Party to GATT 1947 as of 22 May 1991)
CACM members
13 December 1960
Central America - European Union (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama)
29 June 2012
Central America - Mexico (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua )
22 November 2011
Northern Triangle -Colombia (El Salvador, Guatemala and Honduras)
9 August 2007
Taiwan (Republic of China) Honduras, El Salvador
7 May 2007
DR-CAFTA (Central America Dominican Republic - United States)
5 August 2004
Central America - Panama (Costa Rica, Guatemala, El Salvador, Honduras and Nicaragua)
6 March 2002
Central America - Chile (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua)
18 October 1999
Page 21 of 27
Partial Preferential Agreements
Central America - Dominican Republic (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua)
16 April 1998
Venezuela (AAP.A25TM N째 27)
10 March 1986
SECTION 8: FINANCING EXPORTS TO COSTA RICA exporTT Limited provides co-financing options (50% reimbursement) for the following market access activities: a. Product Registration b. Trademark Registration c. Product Testing d. Translation & Interpretation Services e. Legal representation for product, brand and trademark registration f. Booth rental at trade shows g. Business to business matchmaking services h. Shipping of samples i. In-store marketing and promotions j. Booth design at trade shows k. Ground transportation for exporTT led groups at trade missions and trade shows l. Brand registration m. Label modification n. Registration at international capacity building forum/workshop Please contact the following person or any other exporTT representative for more information on these services: Mr. Crisen Maharaj Manager- Capacity Building and Programme Financing exporTT Limited 151B Charlotte Street Port of Spain Tel.: (868) 623-5507 Ext. 362 Fax: (868) 625-8126 Mobile: (868) 796-4276 Email: cmaharaj@exportt.co.tt Website: www.exportt.co.tt
Page 22 of 27
In addition to local banks, to obtain information on financing exports to El Salvador, please contact: Mr. Shaun Waldron Manager, Credit & Business Development Export Import Bank of Trinidad & Tobago Limited #30 Queen's Park West, Port of Spain Phone: 1-(868)-628-2762 Ext. 288 Fax: 1-(868) -628-9370 Email: swaldron@eximbanktt.com Website: www.eximbanktt.com
SECTION 9: USEFUL CONTACTS 9.1
Trinidad and Tobago
Ms. Roann David Export Officer
exporTT Limited 151 B Charlotte Street Port of Spain Trinidad W.I. Tel: 1-868-623-5507 Ext. 226 Mobile: 1-868-477-8031 Fax: 1-868-624-3919/625-8126 Email: rdavid@exportt.co.tt Website: www.exportt.co.tt
El Salvadoran Embassy in Port-of-Spain, Trinidad and Tobago 29 Long Circular Road St. James Port-of-Spain Trinidad and Tobago Telephone: 1-868-628-4454 Telephone/Fax: 1 868-622-8314 Email: cpineda@rree.gob.sv Head of Mission: Mr Raymundo Ernesto Rodriguez Diaz, Ambassador
Customs and Excise Division Government of the Republic of Trinidad and Tobago Custom House (Port-of-Spain) Abercromby Street, Port of Spain Phone: 1-(868)-625-3311 Email: policyunit@customs.gov.tt Web: www.customs.gov.tt
Page 23 of 27
Shipping Agencies Shipping Association of Trinidad & Tobago 15 Scott Bushe Street, Port of Spain Phone: (868)625-2388, (868)623-3355 Fax: (868)623-8570 Email: om@shipping.co.tt Web: http://shipping.co.tt/member%20search.php?id=1&page=1
Translation Services A list of official translation and interpreting agencies approved by the Ministry of Foreign Affairs, Trinidad and Tobago can be found in Appendix III. 9.2
El Salvador
Cámara de Comercio e Industria de El Salvador (Chamber of Commerce & Industry) 9na. Avda. Norte y 5ta. Calle Poniente Apartado Postal 1640 01118 SAN SALVADOR El Salvador Tel: (00503) 2712055/(00503) 2816622 Fax: (00503) 2226593/(00503) 2714461 Email : camara@camarasal.com Web: http://www.camarasal.com
Trade Point El Salvador Res. Santa Elena-Bd Orden de Malta Edificio D´Cora La Libertad SAN SALVADOR CA El Salvador Tel : (00503) 2782204 Fax : (00503) 2782216 Email: tradepointelsalv@minec.gob.sv Email: tpes@minec.gob.sv Web: http://www.tradepointelsalv.com
Corporación de Exportadores de El Salvador (COEXPORT) (Association of Exporters) Gerencia de Programas Col. Jardines de Guadalupe Condominios del Mediterraneo 2 05235 SAN SALVADOR El Salvador Tel: (00503) 2433110/(00503) 2431328-29 Fax: (00503) 2433159 Email: service@coexport.com Email: info@coexport.com Web: http://www.coexport.com
Banco Central de Reserva de el Salvador Centro de Trámites de Exp.(CENTREX) (National Trade Promotion Centre) Alameda Juan Pablo II y entre 15 y 17 Avenida Norte 06106 SAN SALVADOR Tel : (00503) 2818088-90 Fax : (00503) 2818086 Email: info@elsalvadortrade.com.sv Email: comunicaciones@bcr.gob.sv URL: http://www.elsalvadortrade.com.sv
Page 24 of 27
Ministry of Public Health and Social Assistance Calle Arce No. 827 San Salvador, El Salvador Web: http://www.salud.gob.sv/ Regional Customs Integration, Central America Economic Integration System (SIECA): http://www.sieca.int National Science and Technology Council (CONACYT): http://www.conacyt.gob.sv Standards Inquiry Point: http://www.infoq.org.sv Ministry of Economy: http://www.minec.gob.sv Customs Authority: http://www.mh.gob.sv/portal/page/portal/PMH/Institucion/Aduana El Salvador Official Journal: http://www.imprentanacional.gob.sv Distributors Association: www.ades.org.sv
Page 25 of 27
Appendices
Page 26 of 27
Appendix I – Government Tenders from El Salvador Government Tenders, domestic tenders, global tenders, tender notices, procurement news, project information, business opportunities, international competitive bids, request for proposal (RFPs), expression of interest (EOI) from El Salvador. Government Tenders, Global Tenders, Procurement News, Project Information 279 Record Matches Your Request Showing 1 - 10 Records Tender Notice Type:
Prequalification
Country :
El Salvador
Tender Category:
Marine , Infrastructure and construction
Description:
Project To Dredge The Access Channel And Basin Of La Union Port
Action Deadline:
13 Oct 2014
View Tender Details:
View Details
Tender Notice Type:
Tender Notice
Tender Category:
Banking, Finance, Insurance and Securities (BFIS) , Services
Description:
Consulting services to develop hiring strategy to promote investment and action plan for niche auto parts
Action Deadline:
15 Sep 2014
View Tender Details:
View Details
Tender Notice Type:
Tender Notice
Tender Category:
Energy, Power and Electrical
Description:
Consulting Energy Efficiency in Public Buildings
Action Deadline:
09 Sep 2014
View Tender Details:
View Details
Tender Notice Type:
Prequalification
Tender Category:
Consultancy - Management, business and administration , Roadways , Consultancy - Engineering
Ref. no.:
23758790
Country :
El Salvador
Ref. no.:
23758638
Country :
El Salvador
Ref. no.:
23740049
Country :
El Salvador
Description:
Consultancy Service for the Elaboration of Multidisciplinary Study for Feasibility of Roads
Action Deadline:
17 Sep 2014
View Tender Details:
View Details
Tender Notice Type:
Tender Notice
Tender Category:
Technology Hardware and Equipment
Description:
Acquisition of computer equipment to strengthen ala Direcci贸n National Financial Management and Innovation in the development of new SAFI II GRP
Action Deadline:
26 Sep 2014
View Tender Details:
View Details
Tender Notice Type:
Tender Notice
Tender Category:
Services , Marine
Description:
Concession process for the multipurpose container terminal of the port of the union.
Action Deadline:
02 Dec 2014
View Tender Details:
View Details
Tender Notice Type:
Tender Notice
Tender Category:
Automobiles and Auto Parts , Healthcare Equipment and Services
Description:
Acquisition Ambulances for Emergency Medical Service
Action Deadline:
14 Oct 2014
View Tender Details:
View Details
Tender Notice Type:
Project Information
Tender Category:
Services , Education and Training , Environment and Pollution
Description:
Strengthening the capacities of vulnerable families through awareness processes, environmental awareness and education
Ref. no.:
23738926
Country :
El Salvador
Ref. no.:
23738652
Country :
El Salvador
Ref. no.:
23732925
Country :
El Salvador
Ref. no.:
23717809
Country :
El Salvador
Action Deadline:
N.A.
Ref. no.:
23699815
View Tender Details:
View Details
Tender Notice Type:
Project Information
Country :
El Salvador
Tender Category:
Agriculture, Food and Beverages , Services
Description:
Generate sustainable livelihoods, through the establishment of organic home gardens in the community Las Moras, Jiquilisco Township Department of Usulutan
Action Deadline:
N.A.
View Tender Details:
View Details
Tender Notice Type:
Project Information
Tender Category:
Agriculture, Food and Beverages , Services
Description:
Generate sustainable livelihoods, through the establishment of home gardens and organic energy forests in the community Romero, Suchitoto, Cuscatlan Department
Action Deadline:
N.A.
View Tender Details:
View Details
Ref. no.:
23646778
Country :
El Salvador
Ref. no.:
23646776
Appendix II – Minimum Wages With effect from 01-01-2014 to 31-12-2014 Approved revision date: 01-01-2015 Information last updated on this page: 06-03-2014 The minimum wage rates in the table are in $ (US Dollar) Industry
Minimum Wage per Day
Textiles and Clothing
6.76
Industry
7.90
Commerce and Services
8.08
Agriculture
3.79
Coffee Harvest Collection
4.13
Sugar Harvest Collection
3.50
Cotton Harvest Collection
3.16
Benefits of Coffee
5.48
Benefits of Cotton and Sugar
3.98
Minimum Wage per Month 202.80 Hours per week specified: 44 237.00 Hours per week specified: 44 242.40 Hours per week specified: 44 113.70 Hours per week specified: 44 123.90 Hours per week specified: 44 105.00 Hours per week specified: 44 94.80 Hours per week specified: 44 164.40 Hours per week specified: 44 119.40 Hours per week specified: 44
Source; Decretos 103, 104, 105 y 106. Diario Official N° 119 tomo 400 Del 01/07/13
Notes/Footnote 1. There is no single national minimum wage, but that is different depending on the sector of the economy. The base salary is lower in the agriculture sector, while the highest is in the trade and services sector. 2. In late June 2013, the National Minimum Wage (MNHA) approved a 12% increase in the legal minimum wage for all sectors to be implemented in three tranches, over a period of 18 months. 3. The agreement, signed by order of the President, determines an increase of 4% from 1 July 2013, on 1 January 2014 another 4%, and the remaining 4% on 1 January 2015. 4. Work hours per week is 44 hours.
Appendix III – Public Translators (Approved by the Ministry of Foreign Affairs, Trinidad and Tobago) 1)
Mr. Kelvin Hoskins #3 O’Connor Street, off Dickson Avenue, Diego Martin Tel: 352-2238/632-8286
2)
Ms. Doris Millan #42 Saddle Road, Maraval Tel: 753-0643/628-8414
Spanish
3)
Mr. Jaime Graells #28 Old Paddock Road, Blue Range, Diego Martin Tel: 759-5218/637-7140
4)
Mr. Luis Arreaza # 38 Carlos Street, Woodbrook Tel: 764-8683
Spanish, French
5)
Mr. Chantale Leonard-St. Clair Director (Ag.) Translation & Interpreting Services Unit Spanish, French, Portuguese, College of Science Technology and Applied Arts Dutch, German of Trinidad and Tobago (COSTAAT) Tel: (868) 625 5030 Ext. 5270 Fax: (868) 627 5714 E-mail: cstclair@costaatt.edu.tt; pwilliams@costaatt.edu.tt
6)
Mr. David Coutisson Director THE ALLIANCE FRANÇAISE # 17 Alcazar Street, Port of Spain Tel: 622-6119/6728
7)
French
Eric Maitrejean CITB Coordinator Caribbean Interpretation & Translation Bureau University of the West Indies St. Augustine Campus, St. Augustine Tel: 662-0758 Email: CITB@sta.uwi.edu
Spanish, French, Arabic