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Country Commercial Guides for FY 2000: The Bahamas Report prepared by U.S. Embassy Nassau, released July 1999 Note*

IV. MARKETING U.S. PRODUCTS AND SERVICES

Distribution and Sales Channels: Bahamian Government policy prohibits foreign investors from opening retail and wholesale outlets, commission agencies engaged in the import/export trade; real estate and domestic property management agencies; domestic newspaper and magazine publication; domestic advertising and public relations firms; nightclubs and restaurants, except specialty, gourmet and ethnic restaurants; restaurants operating in a hotel, resort complex or tourist attraction; security services; domestic distribution of building supplies; construction companies, except for special structures for which international expertise is required; personal cosmetic/beauty supplies; shallow water scale-fish, crustacean, mollusks and sponge-fishing operations; appliance service operations; and public transportation. However, a wide variety of distributorship, joint venture, and franchise opportunities involving Bahamian partners are available. Goods intended for sale to the general public are normally purchased by local wholesalers, several of whom specialize in particular lines. The usual business practice is for wholesalers to make purchases directly from their counterparts in Florida, which is why such a large proportion of third-country products are imported into The Bahamas through the United States. Most wholesalers and some retailers, however, are willing to make direct purchase arrangements. In some cases, Bahamian retail outlets or wholesalers will enter exclusive distributorship arrangements with foreign firms.

Franchising: There are a number of American franchises in The Bahamas. Most franchises are successful because they appeal to both the local community and the three million plus tourists who visit The Bahamas. Although Bahamian Government policy prohibits American foreign retail chains from opening outlets in The Bahamas, various contractual distributorship and franchise arrangements are possible.

Direct Marketing: Many Bahamians use credit cards and can order items by mail or telephone for delivery to The Bahamas if the exporter is willing to ship. However, import duties levied on the sales price and freight of small shipments often make such orders economically unviable. Many Bahamians prefer to shop in person in Florida to benefit from their personal exemptions from customs duties.

Joint Ventures/Licensing: International investors are encouraged to establish joint ventures with Bahamian partners, although the Bahamian partner must have majority ownership. The choice of a Bahamian partner is left to the discretion of the investor. Joint ventures between international investors and Bahamians are eligible to access funding from The Bahamas Development Bank (BDB). However, the equity of the overseas investor may not be borrowed from the BDB or from the domestic capital market. Bahamians may, however, borrow a percentage of their contribution from BDB or the domestic capital market. An established joint venture is not debarred from accessing BDB funds.

Steps in Establishing an Office: Companies seeking to establish a representative office in The Bahamas must first obtain a business license. Licenses are issued following application to and approval by The Bahamas Investment Authority (BIA) in the Office of the Prime Minister. The BIA can be contacted at:

Bahamas Investment Authority
Office of the Prime Minister
P.O. Box CB-10980
Nassau, Bahamas
Tel:(242) 327-5970
Fax:(242) 327-5907

Advertising and Trade Promotion: Advertising for any legal item or service, whether sold in The Bahamas or in the United States, can be purchased freely in any local newspaper or publication. Leading local publications include:

The Nassau Guardian (circ. 15,000, morning daily)
P.O. Box N-3011
Nassau, Bahamas
Tel:(242) 323-5654
Advertising Manager Tel: (242) 325-4259
Fax: (242) 328-6883.

The Tribune (circ. 10,000, morning daily)
P.O. Box N-3207
Nassau, Bahamas
Tel:(242) 322-1986
Advertising Manager Tel:(242) 322-2768
Fax:(242) 328-2398.

The Freeport News (circ. 5,000, morning daily)
P.O. Box F-40007
Freeport, Bahamas
Tel:(242) 352-8321

The Punch (circ. 18,000, twice weekly tabloid)
P.O. Box N-4081
Nassau, Bahamas
Tel:(242) 322-7112
Fax:(242) 323-5268

The Bahama Journal (circ. 5,000, weekly)
P.O. Box N-8610
Nassau, Bahamas
Tel: (242) 325-3082

Radio and television advertising can also be purchased for local radio and television stations. The sole television broadcaster is the state-owned ZNS (Channel 13). This station, and its Nassau radio stations ZNS-1, ZNS-2, and ZNS-FM, can be contacted at:

Broadcasting Corporation of The Bahamas
P.O. Box N-1347
Nassau, Bahamas
Tel:(242) 322-4623 or (242) 322-4480
Advertising Sales Director:(242) 322-8962

There are three independent FM radio stations in Nassau: 100-Jamz (operated by the tribune); Love-97 (operated by the Bahama Journal); and 94-More FM.

100-Jamz
P.O. Box N-3207
Nassau, Bahamas
Tel:(242) 328-4771
Fax:(242) 356-5343

Love-97 FM
P.O. Box N 3909
Nassau, Bahamas
Tel: (242) 356-4960
Fax: (242) 356-7256

94-More FM
P.O. Box N-7030
Nassau, Bahamas
Tel: (242) 361-2447
Fax: (242) 341-2448

Selling to the Government: Businesses intending to market goods or services to The Bahamas Government or businesses seeking to enter the Bahamian commercial market are advised to seek the advice of the American Embassy in Nassau at an early stage. The Government has a generally fair and open procurement process for purchasing supplies, equipment and services, although some Government contracts are not put out to open bid. The Embassy's Commercial office offers a number of services tailored to specific businesses seeking local distributors, including the Commerce Department's "Gold Key Service," for modest fees. Visitors can also speak, by appointment, with a trade specialist in the Embassy's Commercial Section, located in the Embassy in downtown Nassau on Queen Street. The office can be contacted at:

Economic-Commercial section
U.S. Embassy
P.O. Box N-8197
Nassau, Bahamas

Or:

Amembassy Nassau/Econ
Department of State
Washington, DC 20521-3370
Nassau telephone: (242) 322-1181 or 323-7180 and
Fax:(242) 328-3495 or 356-0222
Need for a Local Attorney: As in the U.S., most business transactions may be carried out without an attorney. Persons wishing to consult or retain local counsel, however, are advised to contact the Commercial Section for a list of local attorneys.

Performing Due Diligence/Checking Bona Fides: There is no local equivalent of a Dunn and Bradstreet to check the bona fides of banks, agents or customers. However, the business community is small and local attorneys or other Bahamian contacts may be able to assist. Information may also be obtainable from:

The Bahamas Chamber of Commerce
P.O. Box N-665
Nassau, Bahamas
Tel: (242) 322-2145.

Information on mortgages, security interests in personal property, and corporate document filings may be obtained from:

The Registrar General
P.O. Box N-532
Nassau, Bahamas
(242) 322-3316

The Embassy's Commercial Section is willing to assist in verifying the bona fides of potential business partners and customers.