el salvador market guide - october2014
DESCRIPTION
Do you want to export to El Salvador?TRANSCRIPT
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
Page 1 of 27
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.
**********
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.
Page 2 of 27
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, Cuscatlán, La Libertad, La Paz, La Unión, Morazán, 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
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.
Population: 6,125,512 (July 2014 est.)
Population Growth 0.27% (2014 est.)
Median Age Total: 25.6 years
Male: 24.1 years
Female: 27.1 years (2014 est.)
Life Expectancy 74.18 years
Page 3 of 27
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
* 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
MONTH DAY OBSERVANCE
January 1 Año Nuevo (New Year's Day)
April 17 Maundy Thursday)
18 Good Friday
19 Holy Saturday
May 1 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
Page 4 of 27
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
Page 5 of 27
SECTION 2: ECONOMIC AND POLITICAL ENVIRONMENT
2.1 Economic Performance
Indicator Economic Performance
GDP: $47.47 billion (2013 est.)
GDP per Capita: $7,500 (2013 est.)
Growth: 1.6% (2013 est.)
Currency:
The national currency is the US dollar
The current exchange rate is 1US$ = 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
GDP by Sector:
Agriculture: 10.3%
Industry: 29.5%
Services: 60.1% (2013 est.)
Inflation Rate: 0.9% (2013 est.)
Agricultural Products: 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
Page 6 of 27
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
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.
Labour Force: 2.738 million (2013 est.)
Labour Force by
occupation:
Agriculture: 21%
Industry: 20%
Services: 58% (2011 est.)
Page 7 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
Page 8 of 27
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.
Page 9 of 27
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 DESCRIPTION
1. Greeting
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.
2. Ask questions to
understand the
prospect
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
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.
Other Tips
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 10 of 27
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:
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
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.
Producer Importer/ Distributor
Channel
of Trade
End
Customer
Page 11 of 27
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:
NAME STORES MARKET
REACH
Selectos:
http://www.superselectos.com/wfsucursales.aspx
Owns the Brand: De Todo
More than 90 stores Entire country
Walmart:
http://walmartstores.com/AboutUs/9754.aspx
Owns the Brands: Despensa de Don Juan &
Despensa Familiar
2 Hypermarkets
25 Supermarkets
50 Despensa Familiar
Total 77
Selected areas
Hiper Europa 2 Supermarkets 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 1.00$
Transport Cost from Plant to Port 0.03$
Cost of product FOB Puerto España 1.03$
Transport Cost 0.22$
1% of FOB Inssurance 0.01$
CIF 1.26$
15% DAI 0.19$
VAT 0.19$
Cost for discharging and Ware House 0.04$
Landed Cost of product w/o VAT 1.49$
18%-22% Margin for Importer / Distributor 0.33$
Landed cost with Importer margin 1.82$
13% VAT 0.24$
Selling price to trade channel w/o VAT 1.82$
Selling price to channel with VAT 2.06$
22%- 28% Margin of Channel Trade 0.51$
Selling price to consumer w/o VAT 2.33$
Selling price with VAT 2.64$
Page 12 of 27
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.
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.
Transport Cost Port Spain to San Salvador 2,500.00$
Lets assume
20 foot container 2,500.00$
8 pallettes 312.50$
each pallette 70 cartons 4.46$
each carton 20 units 0.22$
Cost per unit 0.22$
Cost of discharging 500.00$
20 foot container 500.00$
8 pallettes 62.50$
each pallette 70 cartons 0.89$
each carton 20 units 0.04$
Cost per unit 0.04$
Cost to transport fro Plant to Port 300.00$
20 foot container 300.00$
8 pallettes 37.50$
each pallette 70 cartons 0.54$
each carton 20 units 0.03$
Cost per unit 0.03$
Page 13 of 27
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 14 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;
Page 15 of 27
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.
Page 16 of 27
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 re-
exported 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 $500 or personal effects, as well as samples with no
commercial value (under certain conditions) can enter El Salvador with an exempt status from
import duties.
6.5 Customs Regulations
The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for
approving all exports emanating from Trinidad and Tobago.
To export commercial goods, the exporter is required to have a customs broker fill out the
required documentation. Commercial and non-commercial exporters must also perform the
following actions:
Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your
broker;
Submit the C82 Form along with other required documents (see below) to a customs officer
at a Customs and Excise office for signature;
Take the signed C82 Form and the goods to be exported to the Import/Export station from
which the goods are to be exported.
The basic documents required for exporting are as follows:
Invoice showing the price paid locally
Export licence (where applicable)
Certificate of origin (where applicable)
Page 17 of 27
SECTION 7: TRADE ENVIRONMENT
7.1 Import and Export Statistics
TOTAL TRADE – EL SALVADOR
Total Exports ($) $5,491,094,000
Total Imports ($) $10,771,953,000
Trade Balance ($) -$5,280,859,000
Exports of goods and services (% of GDP) 11.6%
Imports of goods and services (% of GDP) 22.7%
TRADE PARTNERS
# Top 10 Import Partners
Import
Volume
($)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 18 of 27
Figure 2 - El Salvador’s major exporting partners
TRADE COMMODITIES (at the 2 digit HS Code Level)
HS Code
(2 digit) Top 10 Import Commodities
Import
Volume ($)
'27 Mineral fuels, oils, distillation products, etc. 2030868
'84 Machinery, nuclear reactors, boilers, etc. 690723
'85 Electrical, electronic equipment 669620
'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
# 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
USA
NLD PAN
HKG NIC
GTM
OTHER
HND
CHN
MEX
SLV
Page 19 of 27
Figure 3 – El Salvador's major import commodities
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
33%
11%
11%
11%
7%
6%
6%
5%
5%
5%
Chart Title
'27 Mineral fuels, oils, distillationproducts, etc
'84 Machinery, nuclear reactors,boilers, etc
'85 Electrical, electronic equipment
'39 Plastics and articles thereof
'87 Vehicles other than railway,tramway
'60 Knitted or crocheted fabric
'48 Paper and paperboard, articles ofpulp, paper and board
'52 Cotton
'72 Iron and steel
Page 20 of 27
Figure 4 - El Salvador's major export commodities
Foreign Trade with Trinidad & Tobago, 2002-2013 (000 USD)
2009 2010 2011 2012 2013*
Exports 3,477 2,660 1,879 3,237 3,915
Imports 48,084 15,138 69,235 28,039 56,378
Balance -44,607 -12,478 -67,356 -24,802 -52,463
Total Trade 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.
46%
8%8%
7%
7%
6%
6%
4%4% 4%
Chart Title Articles of apparel, accessories, knit orcrochet
Plastics and articles thereof
Articles of apparel, accessories, notknit or crochet
Sugars and sugar confectionery
Paper and paperboard, articles ofpulp, paper and board
Electrical, electronic equipment
Coffee, tea, mate and spices
Iron and steel
Beverages, spirits and vinegar
Cereal, flour, starch, milk preparationsand products
Page 21 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
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
Free Trade Agreements
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 22 of 27
Central America - Dominican
Republic (Costa Rica, El Salvador,
Guatemala, Honduras and
Nicaragua)
16 April 1998
Partial Preferential
Agreements Venezuela (AAP.A25TM N° 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: [email protected]
Website: www.exportt.co.tt
Page 23 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: [email protected]
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: [email protected]
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: [email protected]
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: [email protected]
Web: www.customs.gov.tt
Page 24 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: [email protected]
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 : [email protected]
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: [email protected]
Email: [email protected]
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: [email protected]
Email: [email protected]
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: [email protected]
Email: [email protected]
URL: http://www.elsalvadortrade.com.sv
Page 25 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 26 of 27
Appendices
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 Ref. no.: 23758790
View Tender Details: View Details
Tender Notice Type: Tender Notice Country : El Salvador
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 Ref. no.: 23758638
View Tender Details: View Details
Tender Notice Type: Tender Notice Country : El Salvador
Tender Category: Energy, Power and Electrical
Description: Consulting Energy Efficiency in Public Buildings
Action Deadline: 09 Sep 2014 Ref. no.: 23740049
View Tender Details: View Details
Tender Notice Type: Prequalification Country : El Salvador
Tender Category: Consultancy - Management, business and administration ,
Roadways , Consultancy - Engineering
Description: Consultancy Service for the Elaboration of Multidisciplinary
Study for Feasibility of Roads
Action Deadline: 17 Sep 2014 Ref. no.: 23738926
View Tender Details: View Details
Tender Notice Type: Tender Notice Country : El Salvador
Tender Category: Technology Hardware and Equipment
Description: Acquisition of computer equipment to strengthen ala
Dirección National Financial Management and Innovation in
the development of new SAFI II GRP
Action Deadline: 26 Sep 2014 Ref. no.: 23738652
View Tender Details: View Details
Tender Notice Type: Tender Notice Country : El Salvador
Tender Category: Services , Marine
Description: Concession process for the multipurpose container terminal
of the port of the union.
Action Deadline: 02 Dec 2014 Ref. no.: 23732925
View Tender Details: View Details
Tender Notice Type: Tender Notice Country : El Salvador
Tender Category: Automobiles and Auto Parts , Healthcare Equipment and
Services
Description: Acquisition Ambulances for Emergency Medical Service
Action Deadline: 14 Oct 2014 Ref. no.: 23717809
View Tender Details: View Details
Tender Notice Type: Project Information Country : El Salvador
Tender Category: Services , Education and Training , Environment and
Pollution
Description: Strengthening the capacities of vulnerable families through
awareness processes, environmental awareness and
education
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. Ref. no.: 23646778
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 home gardens and organic energy forests in the
community Romero, Suchitoto, Cuscatlan Department
Action Deadline: N.A. Ref. no.: 23646776
View Tender Details: View Details
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 Minimum Wage per Month
Textiles and Clothing 6.76 202.80
Hours per week specified: 44
Industry 7.90 237.00
Hours per week specified: 44
Commerce and Services 8.08 242.40
Hours per week specified: 44
Agriculture 3.79 113.70
Hours per week specified: 44
Coffee Harvest Collection 4.13 123.90
Hours per week specified: 44
Sugar Harvest Collection 3.50 105.00
Hours per week specified: 44
Cotton Harvest Collection 3.16 94.80
Hours per week specified: 44
Benefits of Coffee 5.48 164.40
Hours per week specified: 44
Benefits of Cotton and Sugar 3.98 119.40
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 Spanish
Tel: 753-0643/628-8414
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 Spanish, French
Tel: 764-8683
5) Mr. Chantale Leonard-St. Clair
Director (Ag.)
Translation & Interpreting Services Unit
College of Science Technology and Applied Arts
of Trinidad and Tobago (COSTAAT)
Tel: (868) 625 5030 Ext. 5270
Fax: (868) 627 5714
E-mail: [email protected]; [email protected]
6) Mr. David Coutisson
Director
THE ALLIANCE FRANÇAISE French
# 17 Alcazar Street, Port of Spain
Tel: 622-6119/6728
7) Eric Maitrejean
CITB Coordinator
Caribbean Interpretation & Translation Bureau
University of the West Indies Spanish, French, Arabic
St. Augustine Campus, St. Augustine
Tel: 662-0758
Email: [email protected]
Spanish, French, Portuguese,
Dutch, German