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

IV. MARKETING U.S. PRODUCTS AND SERVICES

DISTRIBUTION AND SALES CHANNELS:

BECAUSE THE LOCAL ECONOMY IS EXTREMELY SMALL, THE BEST WAY FOR AMERICAN EXPORTERS TO PENETRATE THE BELIZEAN MARKET IS TO SEEK A LOCAL IMPORTER/WHOLESALER WHO WOULD GENERALLY ACT AS THEIR AGENT/DISTRIBUTOR IN BELIZE. A TYPICAL DISTRIBUTION CHANNEL FOR AN AMERICAN-MADE PRODUCT INVOLVES THE U.S. MANUFACTURER OR DISTRIBUTOR, THE LOCAL IMPORTER OR WHOLESALER (WHO ALMOST ALWAYS ACTS ALSO AS THE DISTRIBUTOR), THE RETAILER, AND FINALLY THE BUYER/CONSUMER.

FINDING A PARTNER:

CONSISTENT WITH U.S. DEPARTMENT OF COMMERCE GUIDELINES, THE ECONOMIC AND COMMERCIAL SECTION OF THE U.S. EMBASSY IN BELIZE CAN ASSIST INTERESTED AMERICAN COMPANIES FIND AGENTS AND DISTRIBUTORS IN THE COUNTRY THROUGH THE AGENT/DISTRIBUTOR SERVICE (ADS). THE EMBASSY ALSO PROVIDES THE GOLD KEY SERVICE (GKS), ANOTHER BUSINESS FACILITATION PROGRAM THAT INCLUDES, AMONG SEVERAL OTHER PERSONALIZED SERVICES, INTRODUCTIONS TO POTENTIAL PARTNERS. THE EMBASSY CAN ALSO SUPPLY LISTS OF THE MAJOR LOCAL FIRMS IN A PARTICULAR INDUSTRY TO INTERESTED AMERICAN FIRMS UPON REQUEST. NOMINAL FEES ARE CHARGED FOR THESE SERVICES ON A COST-RECOVERY BASIS. INTERESTED AMERICAN COMPANIES SHOULD CONTACT THE U.S. EMBASSY IN BELIZE OR THE NEAREST U.S. COMMERCE DEPARTMENT EXPORT ASSISTANCE CENTER FOR DETAILED INFORMATION.

FRANCHISING:

ALTHOUGH MANY BELIZEANS ARE FAMILIAR WITH MOST POPULAR U.S. BRAND NAMES, FRANCHISING REMAINS RARE, SINCE COMPETITION IN THE LOCAL MARKET IS MORE OFTEN BASED ON PRICE THAN NAME RECOGNITION OR PERCEIVED QUALITY STANDARDS. FRANCHISING IN BELIZE CURRENTLY EXTENDS TO JUST A FEW WELL-KNOWN BRAND NAMES, INCLUDING BEST WESTERN IN THE HOSPITALITY INDUSTRY, COCA-COLA AND PEPSI IN THE SOFTDRINK INDUSTRY, AND AVIS, BUDGET, HERTZ AND NATIONAL IN THE AUTO RENTAL BUSINESS.

DIRECT MARKETING:

DIRECT MARKETING IN BELIZE BY U.S. COMPANIES IS RARE. NORMALLY, A LOCAL REPRESENTATIVE OF THE AMERICAN FIRM PERFORMS ALL THE LOCAL MARKETING FUNCTIONS.

JOINT VENTURES:

THE GOVERNMENT WELCOMES FOREIGN CAPITAL IN THE DOMESTIC ECONOMY AND SUPPORTS JOINT VENTURE AND PARTNERSHIP INVESTMENTS WHENEVER POSSIBLE AS THE PREFERRED MECHANISM FOR THE EMPLOYMENT OF SUCH CAPITAL.

STEPS TO ESTABLISH AN OFFICE:

THE FOLLOWING IS TAKEN FROM THE LAWS OF BELIZE, CHAPTER 206, PART IX. IT APPLIES TO FOREIGN COMPANIES WISHING TO ESTABLISH AN OFFICE IN BELIZE.

1. OVERSEAS COMPANIES WHICH ESTABLISH A PLACE OF BUSINESS WITHIN BELIZE SHALL, WITHIN ONE MONTH OF THE ESTABLISHMENT OF THE PLACE OF BUSINESS, DELIVER THE FOLLOWING TO THE REGISTRAR FOR REGISTRATION:

- A CERTIFIED COPY OF THE CHARTER, STATUTES OR MEMORANDUM AND ARTICLES OF THE COMPANY OR OTHER INSTRUMENT CONSTITUTING OR DEFINING THE CONSTITUTION OF THE COMPANY, AND IF THE INSTRUMENT IS NOT WRITTEN IN THE ENGLISH LANGUAGE, A CERTIFIED TRANSLATION THEREOF;

- A LIST OF THE DIRECTORS AND SECRETARY OF THE COMPANY CONTAINING THE PARTICULARS:

IN THE CASE OF AN INDIVIDUAL, HIS PRESENT CHRISTIAN NAME AND SURNAME AND ANY FORMER CHRISTIAN NAME AND SURNAME, HIS USUAL RESIDENTIAL ADDRESS, HIS NATIONALITY AND HIS BUSINESS OCCUPATION;

IN THE CASE OF A CORPORATION, ITS CORPORATE NAME AND REGISTERED OR PRINCIPAL OFFICE; AND

WITH RESPECT TO THE SECRETARY, OR, WHERE THERE ARE JOINT SECRETARIES, WITH RESPECT TO EACH OF THEM, HIS PRESENT CHRISTIAN NAME AND SURNAME, ANY FORMER CHRISTIAN NAME AND SURNAME AND HIS USUAL RESIDENTIAL ADDRESS.

- THE NAMES AND ADDRESSES OF SOMEONE OR MORE PERSONS RESIDENT IN BELIZE AUTHORIZED TO ACCEPT ON BEHALF OF THE COMPANY SERVICE OF PROCESS AND ANY NOTICES REQUIRED TO BE SERVED ON THE COMPANY.

2. EVERY OVERSEAS COMPANY SHALL, IN EVERY CALENDAR YEAR, FILE WITH THE REGISTRAR SUCH A STATEMENT IN THE FORM OF A BALANCE SHEET AS WOULD, IF IT WERE A COMPANY INCORPORATED IN BELIZE AND HAVING A SHARE CAPITAL, BE REQUIRED TO BE INCLUDED IN THE ANNUAL SUMMARY.

3. EVERY OVERSEAS COMPANY SHALL DO THE FOLLOWING:

- IN EVERY PROSPECTUS INVITING SUBSCRIPTIONS FOR ITS SHARES OR DEBENTURES IN BELIZE, STATE THE COUNTRY IN WHICH THE COMPANY IS INCORPORATED;

- CONSPICUOUSLY EXHIBIT ON EVERY PLACE WHERE IT CARRIES ON BUSINESS IN BELIZE THE NAME OF THE COMPANY AND THE COUNTRY IN WHICH THE COMPANY IS INCORPORATED;

- CAUSE THE NAME OF THE COMPANY AND OF THE COUNTRY IN WHICH IT IS INCORPORATED TO BE STATED IN LEGIBLE CHARACTERS IN ALL BILL HEADS AND LETTER PAPER, AND IN ALL NOTICES AND OTHER OFFICIAL PUBLICATIONS OF THE COMPANY; AND

- IF THE LIABILITY OF THE MEMBERS OF THE COMPANY IS LIMITED, CAUSE NOTICE OF THAT FACT TO BE STATED IN LEGIBLE CHARACTERS IN EVERY SUCH PROSPECTUS AS AFORESAID AND IN ALL BILL HEADS, LETTER PAPER, NOTICES AND OTHER OFFICIAL PUBLICATIONS OF THE COMPANY IN BELIZE, AND TO BE AFFIXED ON EVERY PLACE WHERE IT CARRIES ON BUSINESS.

IN ADDITION, FOREIGN COMPANIES ARE REQUIRED TO PAY A REGISTRATION FEE OF BZ$84 (US$42) AT THE OFFICE OF THE REGISTRAR GENERAL IN THE SUPREME COURT BUILDING IN BELIZE CITY.

SELLING FACTORS:

MOST MAJOR IMPORTERS AND WHOLESALERS EMPLOY LOCAL COMMISSION AGENTS WHO SELL AND DELIVER THE PRODUCT TO THE RETAILER. MOST MAJOR SUPERMARKETS ALSO DELIVER THE PRODUCT TO THE DOORSTEPS OF THE CUSTOMER. PERSONAL CONTACT WITH THE CLIENTELE, THEREFORE, IS ALWAYS RECOMMENDED.

ADVERTISING AND TRADE PROMOTION:

ADVERTISING IN BELIZE IS DONE MAINLY THROUGH RADIO, NEWSPAPERS, MAGAZINES, AND TELEVISION. THE ECONOMIC AND COMMERCIAL SECTION OF THE U.S. EMBASSY IN BELIZE PUTS OUT A QUARTERLY NEWSLETTER TITLED "COMMERCIAL OPPORTUNITIES." AMERICAN COMPANIES ARE WELCOME TO PLACE ADVERTISEMENTS IN THIS PUBLICATION FREE OF CHARGE. THE U.S. EMBASSY ALSO PARTICIPATES IN TWO NATIONAL TRADE EVENTS: THE NATIONAL AGRICULTURE AND TRADE SHOW, NORMALLY HELD IN MAY, AND EXPO BELIZE, HELD IN SEPTEMBER AS PART OF THE COUNTRY'S INDEPENDENCE DAY CELEBRATION. AMERICAN FIRMS ARE ALSO WELCOME TO JOIN THE U.S. EMBASSY'S PAVILION AT THESE TWO TRADE SHOWS. THE FOLLOWING IS A LIST OF THE MAJOR LOCAL NEWSPAPERS, MAGAZINE, AND TELEVISION STATIONS:

NEWSPAPERS:

AMANDALA PRESS
3304 PARTRIDGE STREET, P.O. BOX 15
BELIZE CITY, BELIZE
TEL: 501-2-24476
FAX: 501-2-24702
WEB SITE: HTTP://WWW.BELIZEMALL.COM
EDITOR-IN-CHIEF: RUSSEL VELLOS

THE BELIZE TIMES PRESS
3 QUEEN STREET, P.O. BOX 506
BELIZE CITY, BELIZE
TEL: 501-2-45757
FAX: 501-2-31940
WEB SITE: HTTP://WWW.BELIZETIMES.COM
EDITOR: MICHAEL RUDON

THE REPORTER
147 ALLENBY AND WEST STREETS, P.O. BOX 707
BELIZE CITY, BELIZE
TEL: 501-2-72503
FAX: 501-2-78278
WEB SITE: HTTP://WWW.BELIZE.COM/REPORTER.HTML
EDITOR-IN-CHIEF: HARRY LAWRENCE

THE GUARDIAN
COR. EBONY STREET AND BEL CHINA BRIDGE, P.O. 1898
BELIZE CITY, BELIZE
TEL: 501-2-75346
FAX: 501-2-75343
EDITOR: AUDREY MATURA-TILLET

SAN PEDRO SUN
9 AVENIDA DEL SOL, P.O. BOX 35
SAN PEDRO, BELIZE
TEL: 501-26-2070 OR 3818
FAX: 501-26-2905
WEB SITE: HTTP://WWW.AMBERGRISCAYE.COM/SANPEDROSUN
EDITORS: BRUCE AND VICTORIA COLLINS

MAGAZINE:

TV TIMES
P.O. BOX 2218
BELIZE CITY, BELIZE
TEL/FAX: 501-92-3559
EDITOR: JOHN ACOTT

TELEVISION STATIONS:

GREAT BELIZE PRODUCTIONS
(CHANNEL FIVE)
17 REGENT STREET
BELIZE CITY, BELIZE
TEL: 501-2-73146 OR 77781
FAX: 501-2-74936
EMAIL: GBTZ@BTL.NET
MANAGER: STUART KROHN

TROPICAL VISION LTD.
(CHANNELS SEVEN AND ELEVEN)
73 ALBERT STREET
BELIZE CITY, BELIZE
TEL: 501-2-73988
FAX: 501-2-75602
EMAIL: TVSEVEN@BTL.NET
MANAGER: NESTOR VASQUEZ

PRICING PRODUCT:

CERTAIN ITEMS, INCLUDING BASIC FOODSTUFFS (RICE, BEANS, SUGAR, BREAD AND FLOUR), BUTANE GAS, AND FUEL, HAVE GOVERNMENT PRICE CONTROLS (1987 SUPPLIES CONTROL REGULATIONS). MOST ITEMS ARE SUBJECT TO TWO SALES TAX RATES: 12 PERCENT ON PETROLEUM PRODUCTS, ALCOHOL AND TOBACCO, AND 8 PERCENT ON ALL OTHER COMMODITIES. STAPLE FOOD ITEMS SUCH AS RICE, BEANS, CORN, FRESH MEAT, FLOUR, SUGAR, EGGS, BREAD AND TORTILLA ARE SALES TAX EXEMPTED.

SALES SERVICE/CUSTOMER SUPPORT:

SALES SERVICE IN BELIZE IS LIMITED TO BUSINESS ESTABLISHMENTS DEALING WITH ELECTRONIC EQUIPMENT, INCLUDING PHOTOCOPIERS, TYPEWRITERS, COMPUTERS, AND AIR CONDITIONERS.

SELLING TO THE GOVERNMENT:

SUPPLIERS OF U.S. PRODUCTS AND SERVICES GENERALLY HAVE LITTLE DIFFICULTY SELLING TO THE GOB. IN MANY CASES, HOWEVER, SUCCESS OF THE SUPPLIERS IN SELLING TO THE GOVERNMENT DEPENDS ON THEIR POLITICAL AFFILIATION OR PERSONAL CONTACTS WITH THE GOVERNING PARTY. LOCAL SUPPLIERS WHO ARE NOT MEMBERS OF THE PARTY OF THE DAY MAY NOT HAVE THE OPPORTUNITY TO SELL TO THE GOVERNMENT, AND WHENEVER THEY DO, THEY MAY EXPERIENCE LATE PAYMENTS. NUMEROUS OPPORTUNITIES EXIST FOR SELLING TO LOCAL PROJECTS THAT ARE FUNDED BY MULTILATERAL FINANCIAL INSTITUTIONS, SUCH AS THE INTER-AMERICAN DEVELOPMENT BANK.

IN ADDITION, THE GENERAL ORDERS, A LIST OF GOVERNMENT RULES AND REGULATIONS PERTAINING TO THE ADMINISTRATION OF THE PUBLIC SERVICE, GOVERN THE CONTRACTUAL AND PURCHASING PRACTICES OF GOVERNMENT DEPARTMENTS AND AGENCIES. UNDER THIS ORDER, GOVERNMENT PURCHASES OF OVER $50,000 MUST BE SUBMITTED FOR PUBLIC BIDDING BY BOTH LOCAL AND FOREIGN COMPANIES. HOWEVER, BIDDERS FOR TENDERS FOR EXTERNALLY-FUNDED PROJECTS MUST COMPLY WITH THE PROCUREMENT RULES AND REGULATIONS OF THE FOREIGN FUNDING ORGANIZATION.

PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT:

WHILE IT IS POSSIBLE TO REGISTER PATENTS AND TRADEMARKS IN BELIZE, OTHER CREATIVE WORKS STILL REMAIN LARGELY UNPROTECTED. BELIZE IS A MEMBER OF THE UNIVERSAL COPYRIGHT CONVENTION, BUT NOT A MEMBER OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO) NOR OF THE BERN CONVENTION ON COPYRIGHTS.

THE SECTION OF BELIZE LAW ADDRESSING COPYRIGHTS APPLIES THE UK COPYRIGHT ACT OF 1956 EXTENDED TO BELIZE UNDER ORDER IN COUNCIL. ALTHOUGH THE UK LAW HAS SINCE BEEN AMENDED AND UPGRADED NUMEROUS TIMES, NO ACTION HAS BEEN TAKEN TO UPGRADE BELIZE LAW. AS A CONSEQUENCE, PIRACY IS RAMPANT, PARTICULARLY OF CABLE BROADCASTS, RECORDED MUSIC, AND COMPUTER SOFTWARE.

THE TRADEMARK REGISTRATION PROCESS IS PEGGED TO THE UK TRADEMARKS ACT OF 1938. TRADEMARK REGISTRATION IS PROTECTED BY THE UK PATENTS AND DESIGNS ACT 1907 TO 1949 AND 1977, AND THE REGISTERED DESIGNS ACT 1949 TO 1961 IS ALSO EXTENDED TO BELIZE UNDER ORDER IN COUNCIL. TRADEMARK REGISTRATION UNDER THESE ACTS CONSTITUTES REGISTRATION WITH THE BRITISH COMMONWEALTH. HOWEVER, BECAUSE THE UK LAWS HAVE SINCE BEEN UPGRADED, THE STATUS OF TRADEMARK PROTECTION UNDER BELIZE LAW IS UNCLEAR. MANY ATTORNEYS IN BELIZE ADVISE CLIENTS TO REGISTER TRADEMARKS AND PATENTS IN THE UK AS WELL AS BELIZE IN ORDER TO RECEIVE MAXIMUM PROTECTION.

AS A MEMBER OF THE WORLD TRADE ORGANIZATION, BELIZE IS OBLIGATED TO BRING ITS INTELLECTUAL PROPERTY RIGHTS (IPR) LAWS UP TO INTERNATIONAL STANDARDS BY THE YEAR 2000. IN FACT, THERE IS ALREADY A COMMITMENT TO DO JUST THAT: DURING AN APRIL 19-20 NATIONAL SEMINAR ON IPR IN BELIZE SPONSORED BY THE WORLD INTELLECTUAL PROPERTY ORGANIZATION AND GOB, THE BELIZEAN ATTORNEY GENERAL SAID THAT THE GOB WILL PASS INTO LAW IPR LEGISLATIONS BEFORE YEAR'S END. SUCH LEGISLATIONS WILL SATISFY BELIZE'S OBLIGATION UNDER THE WTO TO IMPLEMENT THE AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY (TRIPS AGREEMENT) BY JANUARY 1, 2000.

NEED FOR A LOCAL ATTORNEY:

IT IS ADVISABLE TO SEEK LEGAL ASSISTANCE WHEN PLANNING TO DO BUSINESS IN BELIZE. THE U.S. EMBASSY CAN PROVIDE A COMPREHENSIVE LIST OF THE MAJOR LAW FIRMS IN BELIZE ON REQUEST, AS WELL AS A LIST OF LOCAL CERTIFIED PUBLIC ACCOUNTANTS.