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

VI. TRADE REGULATIONS, CUSTOMS AND STANDARDS

TRADE BARRIERS:

ON APRIL 1, 1999, THE GOB REPEALED THE 3-YEAR OLD 15 PERCENT VALUE-ADDED TAX AND REPLACED IT WITH TWO DIFFERENT SALES TAX RATES: 12 PERCENT ON PETROLEUM PRODUCTS, ALCOHOL AND TOBACCO, AND 8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. ALSO, THE GOB IS COMMITTED TO IMPLEMENT THE FOURTH AND FINAL PHASE OF THE COMMON EXTERNAL TARIFF BY APRIL 1, 2000, BRINGING BELIZE'S IMPORT DUTIES ON INDUSTRIAL PRODUCTS TO AN AVERAGE OF 20 PERCENT. THERE IS ALSO A VARIABLE REVENUE REPLACEMENT DUTY RANGING FROM 15 TO 25 PERCENT FOR NON-ESSENTIAL GOODS, SUCH AS BEER, CIGARETTES AND LIQUOR.

IN ORDER TO PROTECT CERTAIN DOMESTIC INDUSTRIES, THE GOVERNMENT MAINTAINS A LIST OF 27 CATEGORIES OF PRODUCTS THAT REQUIRE IMPORT LICENSES. THIS LIST INCLUDES MOSTLY CONSUMER GOODS. LAST JANUARY, THE GOB CONTRACTED A LOCAL PRIVATE FIRM TO CONDUCT POST-IMPORTATION INSPECTION FOR THE BELIZE CUSTOMS DEPARTMENT BY RANDOMLY REVIEWING COMPLETED CUSTOMS DECLARATION FORMS AND LOOKING FOR UNDER-VALUED INVOICES. THE BELIZE BUSINESS BUREAU AND THE BELIZE CHAMBER OF COMMERCE AND INDUSTRY HAVE EXPRESSED CONCERNS ABOUT THE POTENTIAL NEGATIVE IMPACT THE SCHEME COULD HAVE ON LEGITIMATE LOCAL IMPORTERS.

IN ADDITION, THE BELIZE INVESTMENT GUIDE NOTES THAT THE FOLLOWING AREAS ARE NOT NORMALLY OPEN TO PARTICIPATION BY FOREIGN PRIVATE INVESTORS: MERCHANDISING (DISTRIBUTIVE TRADES), COMMERCIAL FISHING (INSIDE THE BARRIER REEF), SUGAR CANE CULTIVATION, INTERNAL TRANSPORTATION, AND RESTAURANTS AND BARS.

CUSTOMS VALUATION:

THE BELIZE CUSTOMS DEPARTMENT GENERALLY USES ORIGINAL COMMERCIAL INVOICES AND PRODUCT CATALOGS TO DETERMINE THE VALUE OF GOODS COMING INTO THE COUNTRY. FOR INSTANCE, THE VALUATION UNIT OF THE BELIZE CUSTOMS DEPARTMENT USES THE U.S. NATIONAL AUTOMOBILE DEALERS ASSOCIATION (N.A.D.A.) PUBLICATION, COMMONLY KNOWN AS THE BLUE BOOK, TO VALUATE USED VEHICLES BEING IMPORTED INTO BELIZE. HOWEVER, THERE ARE OCCASIONAL REPORTS OF HARASSMENT, PILFERAGE, AND REQUESTS FOR BRIBES IN ORDER TO FACILITATE LOWER VALUATIONS.

UNDER THE POST-IMPORTATION INSPECTION SCHEME, DULY AUTHORIZED CUSTOMS AGENTS WILL REVIEW THE CUSTOMS DECLARATION FORMS SUBMITTED BY THE LOCAL IMPORTERS AND VERIFY THAT THE DECLARED PRICES ON THE INVOICES ARE INDEED CORRECT. THIS SCHEME IS INTENDED TO RECOVER THE TREMENDOUS LOSS OF CUSTOMS REVENUE AS A RESULT OF UNDERINVOICING.

IMPORT LICENSES:

A LIST OF 27 CATEGORIES OF PRODUCTS REQUIRE IMPORT LICENSES PRIOR TO IMPORTATION INTO BELIZE. THE LIST INCLUDES PRODUCTS SUCH AS RICE, BEANS, EGGS, SUGAR, CITRUS, FLOUR, MEATS, JAMS/JELLIES, PEPPER SAUCE, MATCHES, PEANUTS, PASTA, SOAP, TOILET PAPER, BEER, AERATED BEVERAGES, FUEL, BROOMS, AND BOATS. THE NEW INDUSTRIAL DEVELOPMENT OFFICE IN THE MINISTRY OF COMMERCE AND INDUSTRY WILL SOON BE SUBMITTING RECOMMENDATIONS TO GOVERNMENT FOR THE GRADUAL REMOVAL OF THESE QUANTITATIVE IMPORT RESTRICTIONS. BELIZEAN IMPORTERS CONTINUE TO COMPLAIN THAT THE PROCESS FOR OBTAINING IMPORT LICENSES IS PRONE TO CORRUPTION AND NEEDLESS RED TAPE.

IN ADDITION, THE MINISTRY OF AGRICULTURE, FISHERIES, AND COOPERATIVES (MAFC) ALSO HAS ITS OWN REQUIREMENTS FOR THE IMPORTATION OF AGRICULTURAL PRODUCTS INTO BELIZE. FOR INSTANCE, THE QUARANTINE DEPARTMENT REQUIRES IMPORTERS OF FRESH PLANT PRODUCTS TO OBTAIN AN IMPORT PERMIT AND TO SUPPLY PHYTOSANITARY CERTIFICATES AND CERTIFICATES OF ORIGIN. IMPORTERS OF LIVE ANIMALS ARE ALSO REQUIRED TO OBTAIN AN IMPORT PERMIT FROM MAFC AND TO SUPPLY A HEALTH CERTIFICATE FROM THE COUNTRY OF ORIGIN, WHILE IMPORTERS OF PESTICIDES MUST GET AN IMPORT PERMIT FROM THE PESTICIDES CONTROL BOARD.

EXPORT CONTROLS:

CERTAIN PRODUCTS ALSO REQUIRE EXPORT LICENSES AND/OR ZOOSANITARY CERTIFICATES PRIOR TO EXPORTATION. THE LIST INCLUDES CATTLE, PIGS, FISH, CRUSTACEANS AND MOLLUSK (EXCLUDING AQUACULTURE SPECIES), LOGS AND LUMBER, SUGAR, HONEY, CITRUS FRUITS, AND BEANS.

IMPORT/EXPORT DOCUMENTATION:

BOTH IMPORTERS AND EXPORTERS MUST OBTAIN THE APPROPRIATE PERMITS PRIOR TO IMPORTING INTO OR EXPORTING FROM BELIZE. IMPORTERS ARE REQUIRED TO SUBMIT ALL ORIGINAL COMMERCIAL INVOICES TO THE CUSTOMS DEPARTMENT. THE EXPORTATION OF ANIMALS (INCLUDING PETS) AND AGRICULTURAL PRODUCTS FROM BELIZE REQUIRE ZOOSANITARY AND PHYTOSANITARY CERTIFICATES ISSUED BY THE MINISTRY OF AGRICULTURE IN ADDITION TO EXPORT PERMITS.

TEMPORARY ENTRY:

THE BELIZE CUSTOMS DEPARTMENT ALLOWS TEMPORARY ENTRY OR TRANSIT OF CERTAIN ITEMS INTO BELIZE. PRODUCTS BROUGHT IN TEMPORARILY OR IN-TRANSIT WOULD GENERALLY ENTER DUTY-FREE, PROVIDING THEY ARE NOT MODIFIED OR TRANSFORMED WHILE IN BELIZE. IF, HOWEVER, THE IMPORTER LATER DECIDES TO MODIFY OR SELL THE PRODUCT LOCALLY, ALL NECESSARY DUTIES MUST BE PAID AT THE BELIZE CUSTOMS DEPARTMENT.

LABELING AND MARKING REQUIREMENTS:

THERE ARE NO COMPREHENSIVE LAWS OR REGULATIONS GOVERNING LABELING OR MARKING REQUIREMENTS FOR PRODUCTS SOLD IN BELIZE. GOVERNMENT OFFICIALS HAVE SAID THAT THEY PLAN TO DRAFT LEGISLATION DEALING WITH LABELING OR MARKING REQUIREMENTS OF LOCALLY PRODUCED OR IMPORTED GOODS. BELIZE, HOWEVER, GENERALLY IMPORTS GOODS THAT HAVE ALREADY SATISFIED THE EXPORTING COUNTRY'S PRODUCT STANDARDS AND REQUIREMENTS.

PROHIBITED IMPORTS:

CERTAIN GOODS ARE GENERALLY NOT ALLOWED INTO BELIZE UNLESS THEY ORIGINATE FROM ANOTHER CARICOM STATE. THE LIST INCLUDES PEANUT BUTTER, JAM, JELLIES, MATCHES, PASTA, BEANS, RICE, WHEAT FLOUR, AND PEPPER SAUCE. BEANS AND RICE, HOWEVER, LIKE MANY OTHER LOCALLY PRODUCED AGRICULTURAL PRODUCTS, MAY NOT BE IMPORTED AT ALL WHENEVER THERE IS A SURPLUS OF THESE PRODUCTS ON THE DOMESTIC MARKET.

STANDARDS:

THE BELIZE BUREAU OF STANDARDS WAS ESTABLISHED IN 1992 TO PROMOTE AND ENCOURAGE THE MAINTENANCE AND USE OF CODES OF PRACTICE, SPECIFICATIONS AND STANDARDS. HOWEVER, IT WAS ONLY AT THE BEGINNING OF 1997 THAT THE BUREAU BECAME RELATIVELY ACTIVE IN DRAFTING STANDARDS REGULATIONS. IN SOME CASES, THE BUREAU HAS INTRODUCED STANDARDS REGULATIONS MODELED OFF THOSE OF OTHER CARICOM MEMBER STATES. IN SUM, BELIZE HAS YET TO FORMULATE ANY DETAILED CODES OF PRACTICE, PRODUCT SPECIFICATIONS, OR STANDARDS.

FREE TRADE ZONES:

THE 1990 EXPORT PROCESSING ZONE (EPZ) ACT OF BELIZE ENABLES COMPANIES TO OPERATE WITHIN SPECIAL OR GENERAL EXPORT PROCESSING ZONES IN THE COUNTRY. SPECIAL EPZS ARE ENCLOSED ONE-FACTORY OPERATIONS AND GENERAL EPZS ARE ENCLOSED MULTI-FACTORY OPERATIONS. BELIZE'S FIRST EPZ, CONSISTING OF 28.5 ACRES AND LOCATED JUST 8 MILES FROM THE MEXICAN BORDER IN THE NORTHERNMOST DISTRICT OF COROZAL, WAS OFFICIALLY OPENED IN JULY 1992.

THE COMMERCIAL FREE ZONE (CFZ) ACT OF 1995 PROVIDES FOR THE ESTABLISHMENT AND OPERATION OF CFZS WITHIN BELIZE TO FOSTER COMMERCIAL TRADE AND INVESTMENT WITH NEIGHBORING COUNTRIES. ONE OF THE OUTSTANDING FEATURES OF THE CFZ ACT IS THAT IT ESTABLISHES AN AUTONOMOUS BODY KNOWN AS THE COMMERCIAL FREE ZONE MANAGEMENT AUTHORITY (CFZMA) WITH FULL SUPERVISION AUTHORITY OF THE CFZS IN THE COUNTRY. BUSINESS ENTERPRISES GENERALLY ENCOURAGED UNDER THE CFZ SCHEME INCLUDE COMMERCIAL OFFICES, WAREHOUSES, MANUFACTURING, INSURANCE SERVICES, AND FINANCIAL SERVICES. HOWEVER, THE MINISTRY OF COMMERCE AND INDUSTRY HAS PROPOSED REPEALING THE 1995 CFZ LEGISLATION AND REPLACING IT WITH A MORE MODERN ONE.

MEMBERSHIP IN FREE TRADE ARRANGEMENTS:

BELIZE, AS A CARICOM MEMBER STATE, HAS FREE TRADE AGREEMENTS WITH THE GOVERNMENTS OF VENEZUELA AND COLUMBIA. BELIZE DOES NOT HAVE A FTA WITH NEITHER THE U.S. NOR WITH ANY EU MEMBER COUNTRIES. NEVERTHELESS, IT ENJOYS PREFERENTIAL TREATMENT FROM THE U.S. UNDER THE CARIBBEAN BASIN INITIATIVE (CBI) AND FROM THE EUROPEAN UNION UNDER THE LOME CONVENTION AS AN AFRICAN, CARIBBEAN, AND PACIFIC (ACP) MEMBER STATE FOR ITS MAJOR AGRICULTURAL EXPORTS.

BELIZEAN GOODS ALSO ENJOY DUTY-FREE ENTRY INTO CANADA BASED ON COMMONWEALTH MEMBERSHIP. IN ADDITION, THERE IS PRESENTLY A DRAFT PROPOSAL FOR A BILATERAL FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF BELIZE AND MEXICO.