DOING BUSINESS WITH HAITI PRESENTATION

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DOING BUSINESS WITH HAITI

Presented By: Vincent RamlochanDate: 22nd September, 2015

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Economic Environment Political Environment Trading Environment

Overall Non-Energy Sector Food and Beverage Cleaning Chemicals Paper Products Personal Care Products Construction Materials

Formal Trade vs Informal Trade Market Entry Strategy Ports and Taxes Challenges Opportunities Tips / General Information Questions

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HAITI’S ECONOMIC OVERVIEW

GDP PER CAPITA (USD) $846 (2014 est.)

POPULATION Total: 10,110,019Port-au-Prince: 2.44 million

GDP BY SECTOR Agriculture: 24.7%Industry: 20%Services: 55.3% (2014 est.)

UNEMPLOYMENT 40.6%

POVERTY 58.5% (2012 est.)

INFLATION 4.6%

LABOUR FORCE 4.81 million

EXCHANGE RATE $1US = 52 HTG

T&T POPULATION1.2 million

T&T PER CAPITA32,100

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POLITICAL (IN)STABILITY

Presidential-style Republic with three main arms the Executive, Legislative and the Judicial branches.

Haiti’s government has changed hands twenty –two times Presently, there has been isolated acts of violence linked to political

campaigns Presidential Elections- 25th October, 2015

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TRADE AGREEMENT

Haiti became a member of CARICOM on July, 2002.

Haiti is NOT member of the CARICOM Single Market and Economy

No preferential treatment/ duty free access into the Haitian Market

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TRADING ENVIRONMENT-OVERVIEW

• In the 2015 Ease of Doing Business Rankings, Haiti ranked 180

• Haiti’s total non-energy imports for 2014 valued US$ 3,783,334,000

• Haiti’s total non-energy imports experienced positive growth of approximately 15% in 2014 when compared to 2010

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FOOD AND BEVERAGE IMPORTS• Total F&B imports in 2014

valued US$463,715,000

• F&B experienced positive growth of 36% in 2014

• Top supplying market is Dominican Republic with 49%

• Local Manufacturers:• CANEX S.A.• BRANA• CARIBBEAN FOOD

MANUFACTURING S.A.• CARIBBEAN MILLING

S.A.• M&R LUMBER• REBO S.A.• TROPICA S.A.

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TOP IMPORTED FOOD AND BEVERAGE PRODUCTS Code Product label Imported value in 2014

'210390Sauces and preparations nes and mixed condiments and mixed seasonings 77389

'170114

Raw cane sugar, not containing added flavouring or colouring matter (excl. 1701 13) 59517

'190531 Sweet biscuits 43557

'210320 Tomato ketchup and other tomato sauces 30953

'160100Sausage&sim prod of meat ,meat offal/blood&food prep based on these prod 25443

'210690 Food preparations nes 23762

'170199Refined cane or beet sugar, solid, without flavouring or colouring matter 14372

'190219Uncooked pasta, not stuffed or otherwise prepared, nes 14364

'190190Malt extract&food prep of Ch 19 <50% cocoa&hd 0401 to 0404 < 10% cocoa 14218

'220840 Rum and tafia 12040

TOTAL US$315,615,000 OR 68%

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CLEANING CHEMICAL IMPORTS• Total cleaning chemical

imports in 2014 valued US$50,427,000

• Cleaning chemical imports experienced positive growth of 37% in 2014

• Top supplying market of cleaning chemicals is the Dominican Republic with 42%

• Local Manufacturers• MIRAGES INDUSTRIES

S.A.• LA PERLE S.A• CARRIBEX• HUHSA(Huilerie

Haitiennes)-

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TOP IMPORTED CLEANING CHEMICAL PRODUCTS

Code Product label Imported value in 2014

'340220Surface-active prep, washing & cleaning prep put up for retail sale 21683

'340111

Toilet soap&prep,shaped;papers&nonwovens impreg with soap toilet use 11322

'340600 Candles, tapers and the like 5289

'340211 Anionic surface-active agents 4409

'340290Surface-active preparations, washing and cleaning preparations, nes 1978

'340119

Soap&orgn surf prep,shapd,nes;papers&nonwovens impreg w soap/prep,nes 1419

'340391Lub/oth prep,not cntg pet oils for treat textiles,leather,furskins etc 942

'340120 Soap nes 628

'340319Lubricating & simil prep containing >/=70% petroleum oils, nes 621

'340213 Non-ionic surface active agents 517TOTAL US$48,808,000 OR 97%

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PAPER PRODUCT IMPORTS• Total paper product

imports in 2014 valued US$72,387,000

• Paper product imports experienced positive growth of 80% in 2014

• Top supplying market of paper product is the Dominican Republic with 60%

• Local Manufacturers• COFI INDUSTRIES S.A.

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TOP IMPORTED PAPER PRODUCTS Code Product label Imported value in 2014

'481910Cartons, boxes and cases, of corrugated paper or paperboard 20866

'481810 Toilet paper 7602

'482110 Paper labels of all kinds, printed 7182

'481920Cartons,boxes and cases,folding,of non-corrugated paper or paperboard 6370

'482020 Exercise books of paper 3421

'481930Sacks and bags, of paper, having a base of a width of 40 cm or more 2246

'480100 Newsprint, in rolls or sheets 2193

'480300Paper,household/sanitary,rolls of a w >36 cm,sheets one side >36 cm 1919

'480269Uncoated paper and paperboard, of a kind used for writing, printing or 1530

'481159Paper and paperboard, surface-coloured, surface-decorated or printed, 1229

TOTAL US$54,558,000 OR 75%

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PERSONAL CARE IMPORTS• Total personal care imports

in 2014 valued US$36,838,000

• Personal care imports experienced positive growth of 42% in 2014

• Top supplying markets of personal care are the USA and China with 23% and 22% respectfully

• Local Manufacturers• MIRAGE INDUSTRIES

S.A.

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TOP IMPORTED PERSONAL CARE PRODUCTSCode Product label Imported value in 2014

'330499Beauty or make-up preparations nes; sunscreen or sun tan preparations 8556

'330610 Dentifrices 8309

'330210Mixtures of odoriferous substances for the food or drink industries 6154

'330590 Hair preparations, nes 4223

'330300 Perfumes and toilet waters 2448

'330720 Personal deodorants & antiperspirants 2149

'330510 Hair shampoos 1436

'330119 Essential oils of citrus fruits, nes 853

'330290Mixtures of odoriferous subst f use as raw materials in industry,nes 756

'330520 Hair waving or straightening preparations 566

TOTAL US$35,450,000 OR 96%

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CONSTRUCTION MATERIAL IMPORTS• Total construction material

imports in 2014 valued US$136,249,000

• Construction material imports experienced positive growth of 37% in 2014

• Top supplying market of construction materials is the Dominican Republic with 53%

• Local Manufacturers• MATPAR S.A.• TOP HAITI S.A.• ACTION WINDOWS S.A.• MATELEC S.A

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TOP IMPORTED CONSTRUCTION MATERIALSCode Product label Imported value in 2014

'850720 Lead-acid electric accumulators nes 12760

'854449Electric conductors, for a voltage not exceeding 80 V, nes 7609

'850710Lead-acid electric accumulators of a kind usd f startg piston engines 7335

'940540 Electric lamps and lighting fittings, nes 5298

'732690 Articles, iron or steel, nes 3011

'731700Nails,staples&sim art,i or s,ex art of head No 8305&art w/copper heads 2981

'854460Electric conductors, for a voltage exceeding 1,000 V, nes 2459

'391740 Fittings, plastic 2284

'392590 Builders' ware nes, of plastics 2022

'854420Co-axial cable and other co-axial electric conductors 1855

TOTAL US$47,614,000 OR 79%

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FORMAL TRADE

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SUPERMARKETS Giant BIG STAR Caribbean Extra Supermarket Delimart Supermarket Megamart

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HARDWARE STORES CK Hardware MSC Plus

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INFORMAL TRADE “TRADE ON THE STREETS”

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MARKET ENTRY STRATEGIES Using a distributor Establishing an office Direct Selling/Private Labelling

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PRIVATE LABELLING

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PORTS AND TAXES

• Value Added Tax (TCA) -10%• Verification Fee- 5%• Contribution to Management Funds for

Territorial Collectives (CFGDCT)- 2%• **Tariff

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SHIPPING DOCUMENTS Original Bill of Lading (Signed) Invoice SGS Verification certificate

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CHALLENGES

Cross Border Trade

Price Sensitivity

Port Fees

Corruption

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OPPORTUNITIES Snacks Pasta Cleaning Chemicals Paper products Beverages Lubricants

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TIPS/ GENERAL INFORMATION Air Travel – No Direct Flights ( Copa and American Airlines) Ground Transportation- Airport/Hotel - $50US No Time Difference with T&T Communication: 011+509 + Local Number Language- French (English widely spoken by businessmen) Hotels: Marriot and Best Western

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THANK YOU