VI. TRADE REGULATIONS AND STANDARDS 1. Regulatory Agencies Governmental agencies responsible for regulating business activities include: Taxation Direction General des Impots de la Ministere de l'Economie et de la Finance (The Tax Department of the Ministry of Economy and Finance) Monetary Transactions Direction des Finances Exterieurs et du Credit de la Ministere de l'Economie et de la Finance (The International Finance and Credit Department of the Ministry of Economy and Finance) Labor Issues Office National de la Main d'Oeuvre de C te d'Ivoire (The Labor Department) Copyrights Bureau Ivorian des Droits d'Auteur (BURIDA) (Ivorian Bureau of Author's Rights) Import/Export Licenses: Direction des Commerce Exterieurs de la Ministere de Commerce et de l'Industrie (Department of External Trade of the Ministry of Commerce and Industry) 2. Tariffs and Import Taxes C te d'Ivoire's tariff is a two colum system based on the CCN nomenclature; it is anticipated that the Harmonized System will be adopted in compliance with its adherence to the Uruguay Round of trade negotiations. The tariff is commposed of two basic customs charges: a fiscal duty and a customs duty. Together the maximum rate is 35 percent. There are also import taxes of 0.6 percent paid to the Centre Ivorian du Commerce Exterieur and the Conseil Ivorien des Chargeurs, a value added tax (VAT) of 16.67 percent, a statistical tax of 2 percent and specific excise taxes on tobacco products and alcoholic beverages. Most of the duties are based on ad valorem rates which are imposed on the wholesale market value of products in the country of origin, plus any shipping expenses incurred. (c.i.f.) 3. Customs Valuation C te d'Ivoire subscribes to the pre-inspection service of the Swiss company, Societe General de Surveillance (SGS). All goods entering the C te d'Ivoire that are worth more than USD 50,000 (CFA 28 million) must be inspected by SGS at the point of origin and upon arrival to ensure that invoice valuation is consistent with the goods actually shipped. An SGS-approved invoice is then used as the basis for customs valuation. SGS' U.S. office is: SGS Government Programs, Inc. 42 Broadway, New York, NY 10004. Tel: 212-482-8700; fax: 212-363-3316. 4. Import Licenses and Quotas Quotas The C te d'Ivoire regulates foreign trade, especially imports, by imposing a system of quotas. Quotas are imposed on goods manufactured locally even when local production falls short of demand. A new importer must apply for a quota to the Ministry of Commerce before applying for an import license. Import Licenses and Intents to Import Importers are required to obtain either an Import License or an Intent to Import from the Ministry of Commerce and Industry, prior to importing non-prohibited goods. An import license is required for transactions of USD 45 (CFA 25,000) or more of goods. For imports valued at USD 180 (CFA 100,000) f.o.b. or more, an Intent to Import is required. Goods shipped within the West African Economic Community (ECOWAS) are exempt from these requirements. Import licenses and Intents to Import are valid for six months. They may be extended only once for six months, or renewed once or twice depending on the need. Licenses are prepared in quadruplicate; Intents are required in quintuplicate and must be submitted with pro-forma invoices in triplicate. Livestock and animal products, including hides and skins, are subject to prior authorization from the Ministry of Agriculture. The import of deluxe rice, defined as less than 4% brokens and in packages of 5 kg. or less, requires an import license. The import of brown (decorticated) rice is strictly controlled by the Ministry of Agriculture, which sets a level of imports each year and then provides import licenses up to that amount. Ordinary rice, 20 to 35% brokens, is imported solely by the Caisse General de Perequation, Ministry of Commerce, through licensed agencies. Selection of these agencies is based on open tenders, but the process is not transparent. There are no private imports of this product. Wheat imports are strictly controlled through licensing arrangements between the Ivorian government and the flour mill. Wheat flour imports are tightly controlled to the point of practically being banned. Requirements Neither an import license or an intent to import is required for the following goods: a) Wreckages or goods abandoned at or seized by Customs. This includes: Goods in bonds or not collected from the warehouse within the period allowed and returned goods. b) Pets travelling with their owners c) Fuel in imported cars d) Reimported cars, motorcycles, boats registered in the C te d'Ivoire e) Red Cross property f) Industrial drawings and plans f) Samples as defined in customs regulations g) Personal effects h) Port and airmail packets, not offered for sale i) Developed film j) Used furniture, agricultural equipment imported due to change of domicile or acquired by inheritance k) Original works of art, imported by their creators l) Pasturage m) Goods imported by civil aircraft crews within the limits allowed by Customs n) Spare parts supplied free of charge by foreign manufacturers to replace defective parts. o) Diplomat's effects p) Border properties q) Wedding trousseaux, wedding presents and clothing for foreign students r) Vehicles of any category, imported temporarily into C te d'Ivoire. Errors/Voiding of a License or Intent An Intent to Import must be corrected if it is found that any of the following errors have occurred, after the Intent was issued: 1) the difference between the f.o.b. value on the final invoice and that quoted on the Intent exceeds the prescribed limits; 2) the country of origin or country of shipment is incorrect; 3) the customs classification is incorrect. A license must be corrected if the quantity actually imported exceeds that declared or if the f.o.b. value differs, provided that the quote is not exceeded. An Import License or Intent to Import becomes void if the importation does not take place, there is an error in the category, the supplier is changed, the customs classification is incorrect (in the case of a license), or an inspection by SGS is requested, but for some exceptional reason, was not performed. 5. Import Documentation Documents for most goods shipped into C te d'Ivoire include: Commercial Invoice: Two copies in French are required. Although there is no required form to be used, all invoices must contain the names of the exporter and consignee, the number and types of packages, the marks and numbers on the packages, the net and gross weights, the c.i.f. value, the terms of sale, and a thorough description of the merchandise. Certificate of Origin: Two copies in French are required. They must be certified by a Chamber of Commerce. Packing List: Packing lists are not legally required but such lists are usually considered essential in accelerating the time required for customs clearance. This is particularly true for shipments containing a number of small items. Bill of Lading (or air waybill): As in the case of commercial invoices, there are no regulations specifying content of a bill of lading. Importers should include clear marks of identification and the name and address of the consignee of the goods. It is important to assure that shipping marks and numbers on bills of lading, invoices, and on the goods should correspond exactly. Pro-forma Invoice: Persons wishing to import goods are required to attach six copies of this invoice to the application for an import license and/or the intent to import. A pro-forma invoice may also be required when presenting an application to Ivorian authorities to ship bonded goods through the country. SGS Inspection Certificate: Provided by SGS after inspection at the point of origin. 6. Export Controls Export licenses are required for any goods for which export is restricted. They are valid for six months and are prepared in quadruplicate. Except for coffee and cocoa whose licenses are prepared by the national marketing board (the Caisse de Stabilization et Soutien des Prix de Produits Agricoles, or CAISTAB), all export licenses are issued by the Ministry of Commerce. 7. Labeling, Marking Requirements In addition to the requirements described under import/export documentation, all packages containing U.S. produced merchandise must be clearly labeled "MADE IN THE U.S.A." or they will not be allowed to enter the country. For high-tech equipment such as telecommunications equipment, photocopiers, computer hardware and software, French-language key boards, symbols, instruction manuals, operating systems and applications software are critical to the success of a product. Do not assume the user is a native English speaker. The equipment must be adapted to run as specified by European electrical and metric standards. Consumer product labels, generally, must be in French for a product to be of interest to importers and consumers. Manufactured food products must be labeled in French and must have an expiry date. Health officials will often interpret the date of manufacture as an expiry date, if one does not appear on the label, and deny entry to the product. Therefore, it is best to include both dates. 8. Prohibited Imports Goods not eligible for import, or subject to import restrictions into C te d'Ivoire include: live animals, arms or munitions, plastic bags, distilling equipment, pornography, saccharin, narcotics, explosives and living plants and seeds and illicit drugs. Imports of poultry products have been banned since 1988 in an attempt to protect the domestic industry. Occasionally, this ban is relaxed when local shortages occur. There is the possibility that the ban will be lifted as part of the Ivorian government's negotiations with the World Bank/IMF. 9. Standards C te d'Ivoire uses 220 v 50 cycles for electricity and the metric system of measurement. Operating standards usually follow the French or European norm. 10. Free Trade Zones/Warehouses C te d'Ivoire operates a transit zone facility in Abidjan for goods being shipped to Burkina Faso, Mali and Niger. 11. Special Import Provisions A new or a temporary business may apply to the Ministry of Commerce and Industry for Admision Temporaire, or temporary entry, of their goods. New investments may also apply for a priority agreement. Both are granted on a case-by-case basis. 12. Membership in Free Trade and Monetary Agreements C te d'Ivoire is a signatory of the Lome Convention, a trade and aid agreement between the European Union (EU) and 46 African, Carribbean and Pacific States (ACP). It guarantees duty free entry to the EU for some commodities produced by ACP states. C te d'Ivoire is a member of the Franc Zone which governs the credit, exchange and monetary relations between France, its former colonies in Africa and Equatorial Guinea. It also governs economic relations between France and its overseas departments and territories and Monaco. Within the Franc Zone, there are two monetary cooperation agreements that comprise the central African countries and the west African countries, the BEAC and UMOA respectively. The central bank for the BEAC is located in Cameroon while its counterpart is located in Dakar. To ensure the convertibility of the CFA, the Banque de France guarantees the money issued by the regional central banks, which are required to maintain a minimum of 65% of their reserves in French francs with the French treasury. This unlimited convertibility lasted until August, 1993, when CFA franc banknotes could only be exchanged in their respective regions. This restriction does not apply to commercial transactions or profit remittances, however. C te d'Ivoire was one of the original members of ECOWAS, the Economic Community of West African States. The principal goals of the organization are a customs union and eventually a full common market to promote the free movement of people and goods within West Africa. Companies which are at least 25% owned by citizens of ECOWAS member states are exempt from all tariffs, as are goods which are at least 40% manufactured within ECOWAS.