Belize Country Profile

Country Profile – Belize

2011

Table of Contents

1. GENERAL INFORMATION

2. SOCIAL INDICATORS

3. REACHING CONSUMERS

4. ECONOMIC OUTLOOK

5. TRADE OVERVIEW

6. MARKET ACCESS

7. BILATERAL RELATIONSHIP

8. BUSINESS ENVIRONMENT

9. USEFUL CONTACTS

This profile contains the following information:

General Information as it pertains to the: geography, climate, national and environmental hazards, natural resources, language, population, currency and government and politics of Dominican Republic; Social Indicators of the level of human development including statistics on health, education, inequality, gender inequality, environmental sustainability and overall human development ranking; An Economic Outlook which comprises an economic overview of the economy and lists a number of economic indicators such as statistics on: the Gross Domestic Product (GDP), the labour force, unemployment, poverty and inflation rates; Trade Overview provides a visual display of the major imports/ exports and provides the Dominican Republic’s trade balance with Barbados and with CARICOM; Market Access includes an overview of: Infrastructure for Trade Facilitation which contains information on ports and terminals, airports, telecommunications, media and roads; -Trade Agreements Entered into Force - this category lists multilateral agreements, customs unions, free trade agreements and partial preferential agreements of which the Dominican Republic is a party; -Bilateral Investment Treaties - includes partners, date of signature and date of entry into force if applicable; Trade Policy and Measure Affecting Trade - consists of measures which have negative or positive impacts on exports and imports; Bilateral Relations- shows data on trade flows between Barbados and St. Lucia and provides a brief synopsis on tourism.

Business Environment- information on the steps to starting a business, the grant of construction permits, applicable taxes, procedures and documentation needed to facilitate trade across borders; Distribution Channels; and Useful contacts.

1. GENERAL INFORMATION

Geography Belize is found in Central America. It is situated between Mexico and Guatemala, and borders the Caribbean Sea. Belize encompasses 22,966 sq. km. (8,867 sq. miles)1. The size of Belize is 23,000 sq km. The northern half of the mainland of Belize is a plain with thin soil that supports scrub vegetation and dense hardwood tropical forest. The coastal area is neither land nor sea, but a sodden, swampy transition between the two. The central part of the country consists of sandy soil that supports large savannas, with a mountainous region southwest of Belize City. The southern part of Belize, with an annual rainfall of some 170 inches, has a true tropical rain forest that is rich with ferns, palms, lianas, and tropical hardwoods. 2

Belize is rectangular in shape and extends about 280 kilometers north-south and about 100 kilometers east-west, with a total land boundary length of 516 kilometers. The undulating courses of two rivers, the Hondo and the Sarstoon, define much of the course of the country's northern and southern boundaries. The western border follows no natural features and runs north- south through lowland forest and highland plateau. The Belizean coast line is flat and swampy with low mountains situated on the interior. 3

Main Cities Belize City, San Ignacio, Orange Walk, Belmopan, Dangriga, Corozal, San Pedro, Benque Viejo del Carmen, Punta Gorda, Valley of Peace

1 Information received from CIA world fact book: http://www. state. gov/r/pa/ei/bgn/1955. htm 2 http://www.lowtax.net/lowtax/html/jbzcfir.html 3 http://countrystudies.us/belize/16.htm

Climate Belize has a tropical climate with distinct wet and dry seasons, although there are significant variations in weather patterns by region. Temperatures vary according to elevation, proximity to the coast, and the moderating effects of the northeast trade winds off the Caribbean. 4

Natural and Environmental Hazards Belize is prone to frequent, devastating hurricanes during the months June to November) and coastal flooding which occurs mainly in the south of the country.

Natural Resources Arable land potential, timber, fish, hydropower 5.

Population The population was estimated at 321,115 in July 2011, with a growth rate of 2.056% annually. Most Belizeans are of multiracial descent. The ethnic make-up is: mestizo 48.7%, Creole 24.9%, Maya 10.6%, Garifuna 6.1%, other 9.7%. Due to racial harmony and religious tolerance, the many different racial elements in Belize have mixed and blended successfully, and Belize has gained a widespread reputation for its friendly people. Age Group Group’s % of Male Female Population 0-14 36.8 60,327 57,933 15-64 59.6 96,886 94,605 65 years and over 3.5 5,404 5,960 Source: www.mundi.com (2011 est)

4 http://countrystudies.us/belize/16.htm ;5 CIA Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/bh.html

Religion About 50% of the population is Roman Catholic; the Anglican Church and other Protestant Christian groups account for most of the remaining 50%. Mennonite settlers number about 8,500.6

Language English (official), Creole, Spanish, Garifuna, Mayan. 7 English, the official language, is spoken by virtually all except the refugees who arrived during the past decades. Spanish is the native tongue of about 50% of the people and is spoken as a second language by another 20%. The various Mayan groups still speak their indigenous languages, and an English-Creole dialect similar to the Creole dialects of the English-speaking Caribbean Islands is spoken by most. The rate of functional literacy is 76%.

Time

6 hrs behind GMT (GMT-6)

Government & Politics Type : Parliamentary democracy. Independence : September 21, 1981. Constitution : September 21, 1981. Political parties : United Democratic Party (UDP), People's United Party (PUP), National Alliance for Belizean Rights (NABR), National Reform Party (NRP), Vision Inspired By the

6 http://www. state. gov/r/pa/ei/bgn/1955. htm 7 http://www. state. gov/r/pa/ei/bgn/1955. htm

People (VIP), People's National Party (PNP), We the People Reform Movement (WTP). Suffrage : Universal adult.

Belize has a democratic, bi-cameral legislature based on the Westminster system. Queen Elizabeth II of Great Britain is the titular Head of State, represented by Governor General Sir Colville Young since 1993.

The 29-member House of Representatives is elected by direct popular vote to serve a 5-year term. The Governor-General appoints the member of the House of Representatives who is leader of the majority party to be prime minister. The Governor-General appoints the 12-member Senate from six members on the advice of the prime minister, three on the advice of the leader of the opposition, and one each on the advice of the Belize Council of Churches and Evangelical Association of Churches, the Belize Chamber of Commerce and Industry and the Belize Better Business Bureau, and the National Trade Union Congress and the Civil Society Steering Committee. The two main political parties are the People's United Party or PUP and the United Democratic Party or UDP (leader Dean Barrow). Elections were last held on 6 February, 2008, and gave 21 seats to UDP with 6 seats to PUP. Dean Barrow is Prime Minister.

Belize has a legal system based on common law. There is a Supreme Court, and the chief justice is appointed by the Governor-General on the advice of the prime minister. The Caribbean Court of Justice (CCJ) has replaced the Judicial Committee of the Privy Council as the court of last instance for members of the Caribbean Community (Caricom) and also serves as an appeal court in both civil and criminal cases from common law courts in these member states. 8

8 http://www.lowtax.net/lowtax/html/jbzcfir.html

Relations with neighbouring countries Belize traditionally maintains a deep interest in the environment and sustainable development. A longstanding territorial dispute with Guatemala continues, although cooperation between the two countries has increased in recent years across a wide spectrum of common interests, including trade and environment. Seeing itself as a bridge, Belize is actively involved with the Caribbean nations of CARICOM, works with its Central American neighbors as a member of SICA (Central American Integration System), and participates in the Organization of American States.9

9Information received from CIA factbook : http://www. state. gov/r/pa/ei/bgn/1955. htm

2. SOCIAL INDICATORS

Health

Indicators Expenditure on health, public (% of GDP) 2.6

Under-five morality (per 1,000 live births) 18

Life expectancy at birth (years) 76.1

Education

Indicators Public expenditure on education (% GDP) 5.7

Expected years of schooling (of children 12.4 under 7 years)

Mean years of schooling (of adults over 8 years)

Adult literacy rate, both sexes (% aged 15 n.a and above)

Combined gross enrolment ratio in 75.1 education (both sexes) % education index (expected and mean years 0.663 of schooling)

Inequality Indicators Inequality-adjusted education index n.a

Inequality-adjusted income index n.a Gender inequality index value

Indicators Population with at least secondary 1.073 education, female/male ratio

Adolescent fertility rate (women aged 15- 78.7 19 years) (births per 1,000 women aged 15- 19 years)

Shares in parliament, female-male ratio 0.125

Labour force participation rate (ratio of 0.588 female to male shares) Sustainability Adjusted net savings Indicators Endangered species (% of all species) 6

Ecological footprint of consumption n.a (global hectares per capita)

Greenhouse gases per capita n.a

Natural resource depletion (% of GNI)

Carbon dioxide per capita emissions 0.9 (growth 1970-2008) (%)

Forest area (thousand ha) 1,412

Change in forest area (%) -11

Impact of natural disasters: number of 13 deaths (average per year per million)

Impact of natural disasters: population 28,239 affected (average per year per million)

Environmental Performance Index 69.9

Forest area (% of total land area) 61.9

Carbon Dioxide Emissions per capita 1.4 (tonnes) Human Development Index Rank 93 (High human development)

3. REACHING CONSUMERS: TRANSPORTATION AND COMMUNICATION

Transportation

There is substantial private-sector participation in both air and maritime transport: Belize's airport is managed by a private company and three of Belize's ports, including its main port, are owned and managed by private companies. Private companies are also active in the provision of cabotage transport between ports, mainly of passengers. Only domestically registered airlines may undertake cabotage within Belize, but there are no restrictions on foreign investment in domestic airlines.10

Air services agreements

Belize has bilateral air services agreements (ASAs) with Austria, the United Kingdom, and the United States. It is a signatory to two regional agreements: the CARICOM Multilateral Air Services Agreement (CARICOM-MASA), and the Air Transport Agreement among the member states.11 However, in practice, the only agreement, that governs passenger transport is the ASA with the United States, which is a Bermuda II-type agreement. Belize has direct air links with a number of U.S. cities (Charlotte, Dallas, Miami, Houston, Newark, and Atlanta). There are also direct scheduled air passenger flights with El Salvador (San Salvador), Honduras (San Pedro Sula), Mexico (Cancún), and Guatemala (Flores and Guatemala City). These services do not take place under any formal ASAs but through licences issued by the Belize Department of Civil Aviation (alongside equivalent licences issued by the respective civil aviation authorities in the third countries).

10 Information gathered from the WTO Trade Policy Review for Belize from: http://www. wto. org/english/tratop_e/tpr_e/tp338_e. htm 11 For a summary of the provisions of the CARICOM-MASA see WTO document WT/TPR/S/218, 10 August 2009, Chapter IV(5)(iv).

Airports and domestic airlines

The Philip SW Goldson International Airport is Belize's only international airport. The airport is owned by the Government of Belize. Belize has two domestic airports (the Belize Municipal Airport and the San Pedro airport on Ambergris Caye), which are owned by the Government and managed by the BAA. In addition there are 14 airstrips, which were transferred from the Government to the Belize Airports Authority in 2004.

Belize has two domestically owned and registered airlines, Tropic Air and Maya Island Air, which provide scheduled internal and regional (see below). There are three other charter companies in existence. All airlines are privately owned. The authorities noted that there are no legal restrictions on foreign investment in airlines registered in Belize.

Maritime transport services

Maritime transport is governed by: the Harbours and Merchant Shipping Act; the Belize Port Authority Act; the Registration of Merchant Ships Act (under IMARBE); the Wrecks and Salvage Act; and the Abandoned Wreck Act. Belize is not party to any bilateral or multilateral maritime agreements that provide for preferential treatment.

Foreign shipping companies are allowed to undertake cabotage operations, and do so in practice. Cabotage services consist mainly of passenger transport between Belize City and the islands as well as between Independence and Placencia.

The Minister responsible for ports, (the Minister of Public Utilities, NEMO, Transport and Communication) has the authority to appoint and delineate harbours and ports in Belize. 12 The Belize Port Authority is responsible for regulating all ports (including regulation of pilotage, ISPS compliance and approval of port fees). However, ports may be privately owned and operated.

12 This authority is derived from Article 3 of the Harbours and Merchant Shipping Act and from Article 20 of the Port Authority Act.

Transport Data Airports 45

Airports with paved runways 4

Airports with unpaved runways 41

Roadways 3,007km

Ports & Terminals Belize City, Big Creek Source: www.indexmundi.com

Telecommunication

Data produced by the International Telecommunications Union (ITU) suggests that the cost of telecommunications in Belize is relatively high, compared with the rest of Central America and the Caribbean. The Public Utilities Commission acts on behalf of the Government in monitoring and regulating all telecommunication services within Belize, including the assignment of frequencies. 13

There are two licensed entities in Belize that provide full telecommunications services: Belize Telemedia (formerly Belize Telecommunications Ltd.), and Speednet. The sector was opened up to competition in 2002.

Belize Telemedia is the only provider of fixed-line services and provides mobile services as well as fixed-line and wireless internet access. The majority of shares in Belize Telecommunications Ltd. were acquired by the Government in August 2009, for public interest reasons relating to: "the stabilisation and improvement of the telecommunications industry and

13 Government of Belize. Received from: http://www. belize. gov. bz/ct. asp?xItem=618&CtNode=533&mp=27

the provision of reliable telecommunications services to the public at affordable prices in a harmonious and non-contentious environment".14 Speednet offers mobile services as well as wireless internet access.

The Belize telephone system is one of the best in the region, with a modern fibre-optics network. However, international calls are expensive.

The press Television Radio Amandala Channel 5 - commercial Love FM - commercial, music and news

The Belize Times Channel 7- commercial Estereo Amor - private, Spanish-language The Reporter • Krem FM The San Pedro Sun • Wave Radio

The Guardian • Vibes Radio

http://news.bbc.co.uk/2/hi/americas/country_profiles/1211472.stm

14 Telemedia was nationalized under the Belize Telecommunications (Assumption of Control Over Belize Telemedia Limited) Order, Statutory Instrument No. 104 of 2009.

Belize : Telecommunications Statistics Telephone System: Above average; trunk network depends primarily on microwave radio relay Telephone Fixed Lines: 31,200 (2009)

Mobile Phones: 161,800 (2009)

Country code 501

TV Networks 8 privately owned TV stataions

Broadcast media

Radio Broadcast stations AM:1 ; FM:16 (2006)

Television Broadcast stations 7 (2008)

Internet Code .bz

Internet Hosts 2,880 (2010)

Internet Users 36,000

Mobile Subscribers 194, 201

Personal Computers 15.28 per 100 inhabitants

Telephone Lines 9.72 per 100 inhabitants Source: United Nations Statistics Division; accessed at www.indexmundi.com

4. ECONOMIC OUTLOOK

Tourism is the number one foreign exchange earner in this small economy, followed by exports of marine products, citrus, cane sugar, bananas, and garments. The government's expansionary monetary and fiscal policies, initiated in September 1998, led to GDP growth averaging nearly 4% in 1999-2007. Oil discoveries in 2006 bolstered this growth. Growth slipped to 0% in 2009 and 1.5% in 2010 as a result of the global slowdown and natural disasters. With weak economic growth and a large public debt burden, fiscal spending is likely to be tight into the foreseeable future.

Although Belize has the second highest per capita income in Central America, the average income figure masks a huge income disparity between rich and poor. The 2010 Poverty Assessment shows that more than 4 out of 10 people live in poverty.15

Banking and insurance in Belize maintain a significant foreign presence as well as a distinct separation between domestic and offshore activities. In terms of the value of deposits, the banking sector is dominated by foreign-owned commercial banks. The cost of borrowing from commercial banks is relatively high. Money laundering legislation has been introduced, and Belize has signed tax-information-exchange agreements with several third countries. 16

The domestic banking sector comprises 5 commercial banks, (mostly foreign-owned), and 14 credit unions. The insurance industry includes 13 insurance companies and one association of underwriters. With respect to the offshore sector, there are 8 international banks and 14 international insurance companies.

15 www.indexmundi.com 16 Information gathered from the WTO Trade Policy Review for Belize from: http://www. wto. org/english/tratop_e/tpr_e/tp338_e. htm

Currency

1 BBD= 0. 95733 BZD 1 USD= 1. 95050 BZD 1 Euro = 2. 68092 BZD

Table Showing GDP and Economic Information Central bank Central Bank of Belize International Reserves US$ 214 million (Source: World Bank; Data updated: November 2009) Gross Domestic Product - US$ 1. 468 billion (2009 estimate) GDP GDP per capita - PPP $7,983 International Dollars (2008 estimate)

GDP (Purchasing Power 2. 74 billion of International dollars (2009 estimate) Parity) GDP - composition by agriculture: 29% sector industry: 16. 9% services: 54. 1% (2008 estimate) Basic Economic Indicators 2006 2007 2008 2009 2010 2011 Real GDP growth NA NA -3. 8% 0% 2% 2. 3%*

Unemployment rate NA NA 10. 8% 12. 7% 12. 9% 12. 9%*

Inflation NA NA 6. 4% 2. 0% 0. 5% 2. 9%*

Public debt NA 84. 8% 78. 2% 80. 3% 81. 7% 79. 7%* (General government gross debt as a % of GDP) Public deficit (General NA -0. 7% 0. 4% -1. 6% -2. 5% -2. 8%* government net lending/ borrowing as a % of GDP) Government Bond Ratings Standard & Poor's : B/Stable/B Moody's rating: B3 Moody's outlook: STA

(*Estimate **Forecast) Source Global Finance http://www.gfmag.com

5. TRADE OVERVIEW

Belize relies heavily on foreign trade. Trade with the United States and the European Union has had a significant impact on Belize's economic performance. The United States continues to be Belize's number-one trading partner. Other major trading partners include Mexico, the United Kingdom, the European Union, Central America, and the CARICOM Member States. Belize aims to stimulate the growth of commercial agriculture through CARICOM.

Agricultural products make up just over 13% of imports, with spirits, durum wheat, and food preparations being the main items. The main sources of imports are other countries in the region. Almost half of all imports come from other countries in Central America and the Caribbean: nearly 12% of all imports come from Netherlands Antilles (almost entirely fuels and lubricants). The United States is the single biggest source for imports, accounting for just over a third of imports followed by (apart from Central America and the Caribbean) China, with 8% of imports. 17

The Directorate of Trade in the Ministry of Foreign Affairs and Foreign Trade is responsible for, and has the leading role in, developing trade policy in Belize. The Directorate advises other Ministries and coordinates official positions on trade for Belize's participation in the WTO, and in other trade negotiations.

While the Ministry of Foreign Affairs and Foreign Trade has the lead role in developing trade policy, other government agencies are responsible for specific products and/or aspects of trade:

− Given that the main exports are agriculture products, the Ministry of Agriculture and Fisheries and the Belize Agriculture Health Authority have important roles in the development of trade policy;

− The Ministry of Economic Development, Commerce and Industry, and Consumer Protection is responsible for import licences for non-agriculture goods and, along with the Ministry of Agriculture and Fisheries, for agricultural goods;

− The Ministry of Finance and the Customs and Excise Department are responsible for setting and collecting taxes, including import duties and the revenue replacement duty; and

− The Central Bank advises on balance-of-payment issues and is involved in legislation on offshore banking, export processing zones, and other fiscal incentives.

The authorities noted that there was extensive agreement on the main challenges facing trade, such as the erosion of preferences for traditional exports, the impact of the CARIFORUM EPA with the EU, and the need to diversify the country's export base. 18

18 15 Information gathered from the WTO Trade Policy Review for Belize from: http://www. wto. org/english/tratop_e/tpr_e/tp338_e. htm

List of markets engaged in trade with Belize Imported value in Exported Imported value Exported value 2010 value in 2010 Import Partners in 2010 (BZ $ Exporters in 2010 (US Dollars (US 1000) (BZ $ 1000) 1000) Dollars 1000) United States 335,412 647,285 United States 138,542 267,361

Mexico 70,199 135,471 United Kingdom 73,646 142,124

China 67,931 131,095 Costa Rica 12,602 24,319.6 Guatemala 55,982 108,035 Netherlands 10,269 19,817.3 Panama 37,738 72,827.5 Japan 8,216 15,855.4 Honduras 12,124 23,297.1 Mexico 7,928 15,299.6 United Kingdom 11,182 21,579.2 Trinidad & Tobago 7,564 14,597.2

Netherlands 10,821 20,882.6 Jamaica 7,253 13,997.0

El Salvador 10,221 19,724.7 Guatemala 4,404 8,498.93 Hong Kong, China 9,504 18,341.0 Spain 3,464 6,684.9

List of services exported by Belize 9USD 1000)

Exported Exported Exported Exported Exported Code Service label Value in 2006 Value in 2007 Value in 2008 Value in 2009 Value in 2010 '200 Total services 362,878 398,076 386,479 344,373 329,276 '236 Travel 260,076 288,636 278,481 256,240 264,700 '205 Transportation 28,543 29,921 25,010 16,829 19,899 Communications '245 9,103 12,598 11,685 16,034 services '249 Construction services 3,625 '253 Insurance services 129 125 143 105 '260 Financial services 709 678 2,195 5,245 '268 Other business services 36,867 36,970 37,966 23,044 Government services, '291 23,824 29,149 30,999 26,876 n.i.e. REM Personal remittances 63,810 73,120 76,490 78,790

Below is a list of services imported by Belize (USD 1000):

Imported Imported Imported Imported Imported Code Service label Value in Value in Value in Value in Value in 2006 2007 2008 2009 2010

'200 Total services 152,160 168,156 169,615 161,747 149,996

'205 Transportation 54,564 56,899 69,441 55,000 56,700

'236 Travel 41,064 42,749 40,781 40,709 41,599 '245 Communications services 1,963 2,496 3,175 6,145

'249 Construction services 274

'253 Insurance services 24,058 32,931 21,856 23,927

'260 Financial services 2,077 8,608 3,565 2,123

Computer and information '262 399 813 1,076 2,288 services '266 Royalties and license fees 382 863 743 1,100 '268 Other business services 18,505 13,210 19,728 21,781 Personal, cultural and '287 292 431 547 198 recreational services '291 Government services, n.i.e. 8,856 9,157 8,702 8,203 REM Personal remittances 20,600 21,460 27,980 22,480

Belize: Top Merchandise Exports to World 2010

Description Value in 2010 (US $ Thousands) Mineral fuels, oils, distillation products, etc 101964 Edible fruit, nuts, peel of citrus fruit, melons 54124 Vegetable, fruit, nut, etc food preparations 43642 Sugars and sugar confectionery 32459 Fish, crustaceans, molluscs, aquatic invertebrates nes 31213

Edible vegetables and certain roots and t ubers 6092 Wood and articles of wood, wood charcoal 3944 Cereals 2241 Essential oils, perfumes, cosmetics, toileteries 2203 Paper & paperboard, articles of pulp, paper and board 1173

Belize: Top Merchandise Imports 2010

Description Value in 2010 Mineral fuels, oils, distillation products, etc 115506 Machinery, nuclear reactors, boilers, etc 51925 Electrical, electronic equipment 40531 Articles of apparel, accessories, not knit or crochet 36244 Commodities not elsewhere specified 32777 Footwe ar, gaiters and the like, parts thereof 27661 Vehicles other than railway, tramway 25887 Paper & paperboard, articles of pulp, paper and board 23223

Plastics and articles thereof 20566 Articles of iron or steel 18438 Articles of apparel, accessories, knit or crochet 16717

Belize: Top 10 Exports tototo the United States of America in 2010 Description Value in 2010 (US $ Thousands) Mineral fuels, oils, distillation products, etc 87926 Fish, crustaceans, molluscs, aquatic invertebrates nes 16818

Vegetab le, fruit, nut, etc food preparations 15343 Edible fruit, nuts, peel of citrus fruit, melons 12629 Wood and articles of wood, wood charcoal 1849 Essential oils, perfumes, cosmetics, toileteries 1837 Paper & paperboard, articles of pulp, paper and board 960

Miscellaneous edible preparations 343 Commodities not elsewhere specified 244 Oil seed, oleagic fruits, grain, seed, fruit, etc, nes 106

Belize: Top 10 Imports from the United States of America in 2010 Description Value in 2010 (US $ Thousands) Mineral fuels, oils, distillation products, etc 94481 Machinery, nuclear reactors, boilers, etc 35171 Electrical, electronic equipment 28560 Vehicles other than railway, tramway 16814 Commodities not elsewhere specified 12843 Articles of iron or ste el 9985 Beverages, spirits and vinegar 9610 Cereals 8043 Residues, wastes of food industry, animal fodder 8028 Plastics and articles thereof 7303

Belize: Top 10 Exports to African, Caribbean and Pacific GroupGroup of States (2010) Description Value in 2 010 (US $ Thousands) Salt, sulphur, earth, stone, plaster, lime and cement 2889 Paper & paperboard, articles of pulp, paper and board 1994

Tanning, dyeing extracts, tannins, derivs,pigments etc 1759

Beverages, spirits and vinegar 1431 Electrical, elec tronic equipment 1372 Miscellaneous edible preparations 513 Miscellaneous chemical products 495 Furniture, lighting, signs, prefabricated buildings 463 Aluminium and articles thereof 389 Cereal, flour, starch, milk preparations and products 388

BeliBeliBelize:Beli ze: Top 10 Imports from African, Caribbean and Pacific Group ooff States (2010) Description Value in 2010 (US $ Thousands) Salt, sulphur, earth, stone, plaster, lime and cement 2889 Paper & paperboard, articles of pulp, paper and board 1994

Tanning, dyei ng extracts, tannins, derivs,pigments etc 1759

Beverages, spirits and vinegar 1431 Electrical, electronic equipment 1372 Miscellaneous edible preparations 513 Miscellaneous chemical products 495 Furniture, lighting, signs, prefabricated buildings 463 Aluminium and articles thereof 389 Cereal, flour, starch, milk preparations and products 388

Belize: Top 10 exports to the Caribbean Community (CARICOM) 2010 Description Value in 2010 (US $ Thousands) Vegetable, fruit, nut, etc food preparations 830 3 Edible vegetables and certain roots and tubers 4650 Fish, crustaceans, molluscs, aquatic invertebrates nes 2930

Milling products, malt, starches, inulin, wheat gluten 780 Paper & paperboard, articles of pulp, paper and board 214

Miscellaneous edible preparations 106 Wood and articles of wood, wood charcoal 52 Edible fruit, nuts, peel of citrus fruit, melons 38 Commodities not elsewhere specified 21 Essential oils, perfumes, cosmetics, toileteries 13

Belize: Top 10 imports from the Caribbean ComCommunitymunity (CARICOM) 2010 Description Value in 2010 (US $ Thousands) Salt, sulphur, earth, stone, plaster, lime and cement 2889 Paper & paperboard, articles of pulp, paper and board 1994

Tanning, dyeing extracts, tannins, derivs,pigments etc 1754

Beverages , spirits and vinegar 1431 Electrical, electronic equipment 1366 Miscellaneous edible preparations 501 Miscellaneous chemical products 495 Furniture, lighting, signs, prefabricated buildings 463 Aluminium and articles thereof 389 Cereal, flour, starc h, milk preparations and products 388

6. BILATERAL RELATIONS

Belize: Top exports to Barbados 2010 Description Value in 2010 US $ Thousands Vegetable, fruit, nut, etc food preparations 1351 Paper & paperboard, articles of pulp, paper an d board 44

Edible vegetables and certain roots and tubers 6 Beverages, spirits and vinegar 1

Belize: Top imports from Barbados 2010 Description Value in 2010 (US$ Thousands) Aluminium and articles thereof 368 Miscellaneous chemical products 164 Pla stics and articles thereof 134 Paper & paperboard, articles of pulp, paper and board 101 Cereal, flour, starch, milk preparations and products 68 Vehicles other than railway, tramway 68 Pharmaceutical products 52 Beverages, spirits and vinegar 39 Veg etable, fruit, nut, etc food preparations 35 Printed books, newspapers, pictures etc 30

Trade between Barbados and Belize

Year Exports to Belize Imports from Belize Trade Deficit 2006 1,906 1,571 235 2007 2,214 2,583 -369 2008 2,231 2,058 173 20 09 1,458 1,477 -19 2010 1,805 1,380 425

Entry and Residence in Belize

Visitors are permitted to stay in Belize for a period not to exceed thirty (30) days. Extensions may be granted upon application to the Immigration Office, Corner Pickstock and North Front Streets, Belize City, at a cost of BZD25.00. Travelers should show that they have sufficient funds for their visit (USD50.00 per person per day), as well as a ticket to their onward destination. Any individual can apply for permanent residence after one year of legal residence in Belize on a continuous basis. The permanent residence fee is BZD100.00 and a deposit is needed which can range from BZD100.00 to BZD1, 200. 00, depending on the nationality of the applicant. This deposit may be refunded three (3) years after residency is granted. The application form is to be accompanied by two passport photographs of each member of the family wishing to travel to Belize, and the back of a photograph should be endorsed with his or her name and signed by a Justice of the Peace. Applicants should also attach to the petition personal bank statements and current Medical and Police Records.

To acquire nationality status an applicant should have permanent residence or have resided legally in Belize for at least 5 years. 19

19 http://www.lowtax.net/lowtax/html/jbzcfir.html

Arrivals for Belize 2008 - 2011 Month Total Arrivals 2008 2009 2010 2011 Jan 50 36 39 67 Feb 41 37 31 40 Mar 57 43 48 56 Apr 46 39 40 40 May 37 35 37 52 Jun 58 49 51 42 Jul 35 38 44 55 Aug 40 37 36 45 Sep 57 62 72 68 Oct 67 52 50 48 Nov 55 44 36 32 Dec 31 30 24 NA Total (yr) 574 502 484 545 AB Change - -72 -18 61 % Change - -12.5 -1.2 12.6

7. MARKET ACCESS

Trade and Investment

Both the EU- CARIFORUM EPA and the Belize-Guatemala agreement contain sections on investment. The Partial Scope Agreement requires each party to treat investment from the other on the same terms and conditions it applies to any third country.

The investment provisions in the EPA are part of Title II on Investment, Trade in Services and E- commerce. As for trade in services, Annex IV F of the agreement lists limitations to investment, while Article 73 states that the EU and the CARIFORUM states must ensure that investment is not encouraged through any lowering or relaxing of environmental, labour, occupational health and safety legislation, core labour standards or laws aimed at protecting and promoting cultural diversity.

Belize offers a range of incentives to encourage investment in the form of tax breaks and exemptions, in particular through the Export Processing Zone Act and the Commercial Free Zone Act. In general, the incentives are for manufacturing and processing of goods and services for export.

Longer term incentives are offered for the location of industries in the less-developed rural areas of the country and for export-oriented projects or projects utilizing technology not previously introduced into Belize. The government prefers joint venture and partnership investments, but does permit one hundred percent foreign ownership of an enterprise.

Investment incentives are contained in the following legislation:

• Fiscal Incentive Act, No. 6 of 1990; • International Business and Public Investment Companies (IBC) Act 1990; • Mines and Mineral Act 1988;

• Export Processing Zone (EPZ) ACt 1990; • Commercial Free Zone (CFZ) Act 1994. • Fiscal Incentives Act 1990

The Fiscal Incentives Act (No.6) offers tax holidays and duty exemptions. Tax holidays are normally offered for 5 years, extensible for up to a further 10 years; but in the case of agricultural investment may be for up to 25 years. However, there is a provision that the Minister for Economic Development, on application made by the company in a fit and proper case, can review the company's operations and renew the tax-holiday period for a further term not exceeding ten years.

Duty exemptions are offered to every company which has been granted an Approved Enterprise Order (Development Concession) to import into Belize, free of import duty, and revenue replacement duty, a wide range of industrial machinery, construction materials and raw materials. Exemption is normally given for 15 years, with a 10-year extension.

The terms of incentives are decided at Cabinet level. Companies applying under the Act need to be incorporated in Belize. Application fees depend on the level of proposed investment, and at the time of writing, are as follows:

• Investment between USD250,000 and USD500,000, fee USD5,000.00; • Investment between USD500,000 and USD750,000, fee USD6,000.00; • Investment over USD750,000, fee USD7,000.00 20

20 http://www.lowtax.net/lowtax/html/jbzcfir.html

Trade facilitation

The cost of doing business in Belize is considered to be consistent with the regional average, but it is significantly more costly and takes more time to export from Belize than from the Dominican Republic, for example, and costs significantly more to export than from Suriname. 21 This is due to higher costs in Belize in areas such as telecommunications, energy, and shipping. There is a need for assistance to confront regulatory bottlenecks, especially in customs and border procedures. Belize has identified the modernization of Customs and the implementation of more automated systems as key to addressing these problems and facilitating trade. 22

21 World Bank (2010a). 22 15 Information gathered from the WTO Trade Policy Review for Belize from: http://www. wto. org/english/tratop_e/tpr_e/tp338e. htm

Belize Trade & Investment Agreements Multilateral Agreements Agreement/ Partner(s) Date of Signature World Trade Organization 01 January 1995 Customs Union CARICOM members 4 July 1973 (Revised 5 Jul 2001) Economic Association Agreements CARIFORUM- European Community 15 October 2008

Partial Preferential Agreements CARICOM-Colombia 24 July 1994 CARICOM-Venezuela 13 October 1992 Trade Agreements Signed but not in Force CARICOM-Costa Rica 9 March 2004 CARICOM-Dominican Republic 22 August 1998 Guatemala 26 June 2006 Bilateral Investment Treaties Austria 17 July 2001 China 16 January 1999 El Salvador 16 January 1990 Italy 23 November 2005 Netherlands 20 September 2002 United Kingdom 30 April 1982

Agreements and Arrangements

Multilateral agreements

World Trade Organization

Belize is an original Member of the WTO and had been a contracting party to the GATT since 1983. As it does not have a representative in Geneva, its Embassy in Brussels is responsible for WTO affairs. Thus, its participation in WTO meetings is necessarily limited. It shares many concerns with other members of CARICOM and the ACP group, which are both active in Geneva.

CARICOM

Belize has been a member of CARICOM since it was established by the Treaty of Chaguaramas, which entered into effect in May 1974.23 Within CARICOM, Belize is a less developed country, which entitles it to protect vulnerable domestic industries and to receive technical assistance to address development needs. Goods from other CARICOM members enter Belize free of duty, with some exceptions.

CARICOM, has trade agreements with Colombia (signed July 1994) 24 , Venezuela (signed October 1992) 25 , Dominican Republic (signed August 1998) 26 , and Costa Rica (signed March 2004) 27 , and a trade and economic cooperation agreement with Cuba (December 2000).28 As a

23 The revised Treaty of Chaguaramas is included in WT/REG155/1 of 8 July 2003. 24 SICE online information. Viewed at: http://www.sice.oas.org/Trade/caricome.asp [June 2010]. 25 SICE online information. Viewed at: http://www.sice.oas.org/Trade/carivex.asp [June 2010]. 26 SICE online information. Viewed at: http://www.sice.oas.org/trade/ccdr/Ccdrin.asp [June 2010]. 27 CARICOM online information. Viewedat: http://www.caricom.org/jsp/secretariat/legalinstruments/agreement_caricom_costa rica. pdf [June 2010].

less developed country member of CARICOM, Belize is not required to provide preferential treatment to goods imported from these countries.

EPA

In October 2008, Belize signed the Economic Partnership Agreement (EPA) between the European Union and CARIFORUM. 29 Under the EPA, the CARIFORUM countries are to remove tariffs until about 87% of EU exports to the region are duty free. 30 For some products, the implementation period can be up to 25 years. As a less developed member of CARIFORUM, Belize is entitled to raise tariffs for an indefinite period, subject to approval by the Joint Development Committee. Like other CARIFORUM members and the EU, Belize may apply safeguards in the event that imports cause or threaten to cause: serious injury to the domestic industry; disturbances in a sector of the economy; or disturbances in an agriculture market. Safeguard action may also be taken by a CARIFORUM State, in the event that compliance with the EPA leads to problems with the availability of or access to foodstuffs.

Under the EPA, the EU now provides duty- and quota-free access for all products. The only exceptions for the EU were for rice and sugar, which were initially subject to tariff quotas. The quotas were removed by end 2009 although the EU retains the right to apply safeguards to imports of sugar until 2015. In addition to trade in goods, the EPA covers: trade in services; investment; intellectual property; transparency in public procurement; competition; and development support. Several sectors, such as processing of nuclear material, trade in arms, audiovisual services, national maritime cabotage, and air traffic rights are excluded. 31

28 CARICOM online information. Viewed at: http://www.caricom.org/jsp/secretariat/legalinstruments/agreement_caricom_cuba_ 2000.pdf [June 2010]. 29 WTO notifications WT/REG255/N/1/Rev. 1 and S/C/N/469/Rev. 1, 24 October 2008. 30 The CARIFORUM countries are: Antigua and Barbuda; Bahamas; Barbados; Belize; Dominica; Grenada; Guyana; Jamaica; Dominican Republic; Saint Kitts and Nevis; Saint Vincent and the Grenadines; Saint Lucia; Suriname; and Trinidad and Tobago. 31 WTO document. See Belize TPR 2007

At the level of CEO in government ministries, the EPA Implementation Committee oversees policy-related issues associated with the implementation of the EPA and other trade agreements while the EPA Technical Committee is responsible for practical and technical matters related to these agreements.

North America

Exports from Belize to the United States also qualify for preferential treatment under the

Caribbean Basin Initiative, and exports to Canada qualify under CARIBCAN. They also qualify for GSP treatment from several other countries, but practically all exports go to the United States or the EU.

Bilateral agreements

In June 2006, Belize and Guatemala signed a Partial Scope Agreement that entered into force in early 2010. 32 Under the agreement, each party grants preferential access to a limited range of products from the other. The margin of preference is between 50% and 100% and is implemented either immediately or in equal annual instalments over 3 or 5 years. For exports from Belize to Guatemala, the agreement covers 72 tariff lines at the HS 8-digit level, all of which were entitled to enter free of duty from the start of implementation, but two products (yellow maize and black beans) were subject to tariff quotas. For exports from Guatemala to Belize, the Agreement covers 79 tariff lines at the HS 8-digit level, of which 16 have a preferential margin of 50% and 14 have an implementation period of 3 or 5 years.

32 SICE online information. Viewed at: http://www.sice.oas.org/trade/blz_gtm/index_e.asp [June 2010].

Trade Policy Measures

° Measures affecting Exports

I. Documentation/ Procedures

Export documents • Bill of Lading • Certificate of origin • Commercial invoice • Customs Export Declaration • Packing list • Terminal Handling Receipts

Indicators Belize Documents to Export (number) 6

Time to Export (days) 21 Cost to export ($US per container) 1505

Nature of Export Procedures Duration Cost (days) US$ Documents preparation 9 305 Customs clearance and technical 4 350 control Ports and Terminal Handling 5 450 Inland transportation and 3 400 handling Totals 21 1505 Source: The World Bank from www.doingbusiness.org

II. Tariffs Belize's a pplied tariff is based on the CARICOM Common External Tariff (CET), with some exceptions.

-The average applied tariff on agricultural goods is just over 20% and for non- agriculture it is just under 10%. The average MFN tariff is 11.6%, while the bound average is 58.5%. Belize's import licensing regime applies to 123 tariff lines, mainly agricultural products and processed foods. Almost all licences are non- automatic. The system lacks transparency: no detailed information is currently available on licences applied for and granted. Belize does not have any trade remedy (anti-dumping, countervailing and safeguard) legislation: access to these measures is not feasible given the costs and time that would be involved for a small administration.

Belize applies export taxes only on scrap metal, in order to prevent the theft of copper wire in telephone lines. The General Sales Tax (GST) was introduced in 2005. It is applied at a rate of 12.5% on all transactions in the production and delivery chain. This replaced the single-stage Sales Tax. A large number of items (both domestically produced and imported) are zero-rated under the GST, or exempt. However, milk, fruits, and vegetables are zero-rated for local production only, and sweet bread and buns are exempt for local production only. The purpose of these tax breaks is to ensure the affordability of basic necessities. For the same reason, a number of these products, as well as others, are subject to maximum price controls.

In addition to the GST, a Revenue Replacement Duty (RRD) is levied on 219 tariff lines. It is applied to domestically produced and imported products with the exception of locally produced goods that are already subject to excise duties. In several cases the rates applied to CARICOM countries are lower than for non- CARICOM countries. An environmental tax of 2% is levied on all imports, with a few exceptions, but is not applied to goods produced locally. 33

III. Intellectual Property Rights The Belize Intellectual Property Office - BELIPO administers the IPR laws, which include copyrights, industrial designs, patents, trademarks. Details of applications for intellectual property protection for trademarks, patents, and industrial designs can be found in BELIPO's Intellectual Property Journal, which is published every two weeks, and is available on-line 34

IV. Export Processing Zones

Three locations have been designated as EPZs under the Export Processing Zone Act. The San Andres EPZ occupies 28.5 acres of land in the northern section of the country, only 8 miles away from the Mexican border, right next door to NAFTA. The other two Zones are both located approximately 9 miles from Belize City, the country's commercial capital. The EPZ adjacent to the Philip Goldson International Airport covers 4 acres, while the Price Barracks EPZ covers 14 acres.

33 WTO document. See TPR for Belize 34 http://web.ita.doc.gov/tacgi/OverSeasNew.nsf/alldata/Belize

In the EPZ, facilities are provided for activities in manufacturing, processing, packaging, warehousing and the distribution of goods and services. In fact, amendments made to the legislation in 1994 provide investors with the added option of constructing their own facilities and developing infrastructure within an EPZ, including independent utility installations. This option enables an EPZ to enhance its economic development, since it does not necessarily have to use the electricity or telephone facilities provided by the two local monopolies, The Belize Electricity Limited and The Belize Telecommunications Limited (now known as Belize Telemedia Limited, or BTL) respectively.

An EPZ business in Belize receives a guaranteed tax holiday of 20 years, being exempt from income tax, withholding tax, capital gains tax or any new corporate tax. Other benefits include:

• an option to extend the tax holiday period; • losses incurred during the tax holiday period may be carried forward and deducted against any future profits; • any dividend paid by an EPZ business is exempted from tax in perpetuity; • exemption from currency export taxes or foreign exchange taxes on all purchases or sales of foreign currency; • exemption from customs duties, value-added taxes, sales taxes, excise taxes, trade turnover taxes, tonnage taxes, consumption taxes or other taxes for all imports and exports of an EPZ business; • exemption from capital gains tax on the sale of stock or other partial or complete ownership interest in an EPZ business; and

• exemption from property or land tax and property transfer tax. The Land Tax Act does not apply to EPZ property. 35

° Measures Affecting Imports

I. Documentation& Procedures

I. Box III.1: Import procedures: main steps

II. 1. Lodging of document: importer to lodge Single Administrative Document (SAD) with required documentation attached in the Entry Box at the Invoice Section at Customs.

III. 2. Vetting process: the SAD is vetted by customs officers to ensure it is complete. If errors are found the SAD is resubmitted to the importer or his/her agent. In the event of a valuation query, the SAD is forwarded to the valuation section where the valuation officer may ask for additional proof of value. If this cannot be provided by the importer then value adjustment is effected using the six sequential methods of Article VII of the GATT. Thereafter the SAD is returned to the customs officer to complete the vetting process.

IV. 3. ASYCUDA Data entry: data entry clerks input the SAD into ASYCUDA (Version 2.7). If there are no errors, the SAD is presented to the Validating Officer.

V. 4. Validation: the validating officer stamps the registration number on all SAD copies and supporting documents and forwards the SAD to the customs officer in charge of the so-called "Long Room".

VI. 5. Forwarding of documents: customs officer (Long Room) scrutinizes all declarations and attached documents to ensure criteria are met, then forwards the stamped SADs to relevant persons, including: the invoice collector, duty free officer and export officer, for further approval and verification processes. Thereafter the SAD is returned to the customs officer (Long Room).

VII. 6. Final verification of documents: customs officer passes the SAD to the invoice inspector who verifies the documents. If no errors are found, documents are sent back to the customs officer who undertakes a final check of all documentation. All assessed declarations that attract taxes are written in a control ledger and forwarded to the customs cashier. Assessed SADs that do not attract taxes are entered in a control ledger and placed in the free box.

VIII. 7. Importer/agent: when there is no duty to be paid, the importer/agent signs the free box ledger to confirm receipt of declaration. Where duties are to be paid the importer must pay the customs cashier, who captures the payment in ASYCUDA and, where relevant, forwards copies of the document to Beltraide and the Ministry of Finance.

35 http://www.lowtax.net/lowtax/html/jbzcfir.html

IX. Source: Information provided by the authorities

Import Documents • Bill of Lading • Certificate of Origin • Commerical Invoice • Customs Import Declaration • Packing List • Terminal Handling Receipts

Indicators Belize Documents to import (number) 6

Time to import (days) 21

Cost to export ($US per container) 1650

Nature of Import Duration Cost Procedures (Days) US$ Documents preparation 10 350 Customs clearance and 4 350 technical control Ports and terminal handling 4 550

Inland transportation and 3 400

handling

Totals 21 1650

Source: The World Bank

The documentation needed for importing food and agricultural products into Belize are: - An import from BAHA, - Phytosanitary or sanitary certificate and certificate of origin, - Commercial invoice laden, and - Most plant products will also need a certificate of treatment and inspection by quarantine officials. 36

I. Customs Valuation

Rates are applied based on the Customs Value (Cost, Insurance, Freight - CIF). Customs duties and taxes are collected based on the value which is derived from the value stated on the invoice, receipt or other proof of purchase. .37 Belize uses the transaction value as primary basis for determining customs value in all cases. If it is not possible to apply the transaction value, the other methods set out in the WTO Customs Valuation Agreement are applied sequentially. The authorities claim that in 2009, the transaction value was used in around 95% of cases. The Central Bank provides the Comptroller of Customs a weekly exchange rate for foreign currencies against the U.S. dollar, which is used for customs valuation purposes.

The authorities noted that customs valuation poses a particular problem with respect to second- hand vehicles and gifts for which invoices are not available. In cases where the transaction value is questioned and additional proof in relation to the value cannot be furnished, Customs determines the value, in consultation with the importer, through internet research. 38

36 http://www.belizeinvest.org.bz/trade_info-infopromp.html 37 Customs and Excise Duties Act Cap. 48. Viewed at: http://www.customs.gov.bz/download/ customsexcise_duties.pdf. 38 WTO document. See TPR Belize 2009

II. Rules of Origin

Belize applies no non-preferential rules of origin. Preferential rules of origin are applied within the context of Belize's participation in CARICOM, through the EU-CARIFORUM European Partnership Agreement, and through the Partial Scope Agreement with Guatemala. 39

Taxes

° Sales Tax is charged at a rate of 9% based on the aggregate of the customs value and any other relative duty (Import Duty and RRD if applicable). A rate of 14% on Alcoholic Beverages (including Beer), Petroleum, Tobacco and Tobacco Products, large fans, Air Conditioners, Yachts, Jewellery, Perfumery, Cosmetics, Vehicles over 4 cyl., Stoves and refrigerators over 15 Cu. ft.. ° Some commodities are exempted from the payment of sales tax at the time of importation. ° Imports from CARICOM Countries are exempted from the payment of import duty provided the importer produces a Certificate of Origin from the country within the Common Market certifying that the goods were produced within the region of the common market. Some commodities imported from Caricom pay Revenue Replacement Duty (RRD). There are restriction for certain commodities imported from Caricom and requires an Import License from Ministry of Trade prior to importation. 40

39 WTO document. See TPR Belize 2009 40 http://www.customs.gov.bz

III. Standards - Belize

The Belize Bureau of Standards - BBS prepares and promotes standards in relation to goods, services, and processes. The bureau is mandated to establish and monitor standard requirements for labeling, packaging, metrology, and consumer protection. The BBS publishes notifications on new requirements for product standards in the Belize Official Gazette and other media. Belize also adheres to a regional body ; CARICOM Regional Organisation of Standards and Quality(CROSQ) 41 .

Labeling - In general, labels must be in English and include: product name, description, manufacturer’s name and address, country of origin, storage instructions, net weight/volume, quantity, list of contents, nutritional information, date of production, expiration date, and identification lot. The Belize Bureau of Standards - BBS is responsible for monitoring and enforcing labeling requirements. 42

IV. Phytosanitary Measures Belize's only import prohibitions relate to SPS and TBT considerations or to prevent counterfeit or protect public morals. Technical regulations and sanitary and phytosanitary standards are, overall, based on international norms. There have been no changes to the SPS requirements placed on imports.

V. Incentives Government assistance to business largely takes the form of tax incentives: in 2008, customs duty remissions were extended to support the tourism and farming sector.

Free Zones

The Commercial Free Zone Act 1994 established a Commercial Free Zone at Corozal to attract foreign investment. The Zone provides facilities for various activities including manufacturing, processing, packaging, warehousing and distribution of goods and services.

Businesses established in the Free Zone are free of foreign exchange restrictions and receive a range of other benefits including duty exemptions and tax holidays.

Goods and supplies entering and leaving the Free Zone for commercial purposes are exempt from import or export duties, quotas, stamp duties and revenue replacement duties.

Income tax is charged at between 2% and 8% on Free Zone businesses, but these rates can be reduced by up to 2% through tax credits earned by the employment of Belizean workers.

Three programmes involving tax concessions for exports are still maintained, and Belize has applied for and received an extension of the transition period for the elimination of export subsidies under these programmes. 43

43 http://www.lowtax.net/lowtax/html/jbzcfir.html

VI. Samples/Temporary Entry

The Belize Customs Department allows temporary entry or in-transit entry of certain items into Belize. This can be achieved via a “bond process,” whereby the importer deposits a percentage of the value of the imported goods and is allowed a specified time frame to either re-export the goods or pay applicable duties on the goods. Products brought in temporarily or in-transit generally enter duty-free, providing the products 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 Customs Department. 44

44 -34 http://web.ita.doc.gov/tacgi/OverSeasNew.nsf/alldata/Belize

8. BUSINESS ENVIRONMENT

There is a favorable business environment, with few regulatory restrictions and minimum of red tape. Government hours are from 8 am to 12 noon and 1 pm to 5 pm Monday to Friday.

Mail service is generally reliable. Letters to the US from Belize City take about a week, longer from more remote areas. Belize is a very informal country, with a casual life-style. Formal attire is seldom necessary.

There are controls on land ownership by foreigners in excess of 0.5 acre in a town or 10 acres in the country. The Minister of Natural Resources issues licenses if a satisfactory development plan is presented or is in existence. If a property is being sub-divided for sale, a subdivision permit must be obtained from the Minister of Natural Resources. Land can be leased from the Government of Belize with an option to buy if the planned development indicated at the time of the application is carried out. Land in general has a (1%) tax on the unimproved value of the land. The cost for transfer of title to real property is 10% of value for Stamp Duty (usually shared between buyer and seller) and a token fee for registration. Attorney fees are additional.

Belize has preferential market access for many products to Europe, Canada, USA and the Caribbean:

• Europe under LOME IV • CANADA under CARIBCAN • USA under CBI II • Caribbean under CARICOM

In August 2004, the government announced plans to establish a new organisation that will be dedicated to facilitating the country’s participation in the Caricom Single Market and Economy (CSME), known as the National Accreditation Council of Belize.

The bill gives effect to Belize's obligations under the Caribbean Community Act to facilitate the movement of skills in the Caricom Single Market and Economy (CSME), with particular reference to the certification of professional qualifications. The bill was passed in 2005, but six years on the National Accreditation Council has not been set up.

The professional infrastructure is reasonably good. Belize ranks high in terms of efficiency, low cost and lack of legal mumbo-jumbo. The jurisdiction still lags behind the most sophisticated venues, such as the Cayman Islands, in terms of the availability of offshore financial products and in-country support professionals. However, that is rapidly changing.

Although most of the electricity is provided by diesel/generator sets, power is a stable 110 Volts A.C., as in the United States. 45 Belize is ranked 93 rd out of 183 countries (2012) concerning the ease of doing business. The table below displays the number of days and the required number of procedures when conducting business in the Dominican Republic.

45 http://www.lowtax.net/lowtax/html/jbzcfir.html

Number of Amt of Days Procedures Starting a business 44 9

Dealing with Construction Permits 91 8

Obtaining Electricity 66 5

Registering Property 60 8

Source: IFC http://www.doingbusiness.org/data/exploreeconomies/dominican- republic#paying-taxes

Tax or Mandatory Statutory Tax Tax Base Total Tax Rate Payments Contribution Rate (%Profit)

Corporate Income 1.75% or 25% Turnover profits 24.7 12 (Business) Tax

Social Security Various rates Gross Salaries 7 1

Business License 25% Rental value of 0.8 1 business premises

Property tax 10 % Rental value of 0.5 1 property Vehicle Tax - - - 1

Fuel Tax 13% Value added - 1

VAT/ GST - - - 12

Op Cit

Agents and Distributors

Goods entering Belize are received by local importers who also act as wholesalers/ distributors. The goods are then received by the retailer after which they may be purchased by the consumer. Merchandise imported to Belize from North America, Europe or the Caribbean enters at the port in Belize City. Goods that are imported from other Central American destinations enter Belize through two main inland borders.

Agents Phone Fax E-mail Contact Person Belize City

Caribbean Shipping Agencies 227-3015 227-7681 [email protected] Stanley Longsworth Sr. Ltd.

Marine & Services Ltd. 227-2112 227-5404 [email protected] Alvaro Zetina

Belize Shipping Agents Ltd. 223-0530 223-0529 [email protected] Jose Gallego

Eurocaribe Shipping Services 227-2541 223-1657 [email protected] Mike Williams Ltd.

Belize Ship Handlers 222-4075 222-4724 [email protected] Ellison Flowers

Belize Estate and Company 223-1783 223-1367 [email protected] Lenard Lockwood Ltd.

S. J. Turton Agencies 223-4831 223-4831 [email protected] Carolyn/Elizabeth Turton 223-5875

Banana Enterprises Ltd. 523-2003 523-2201 [email protected] Gustavo Carrillo

Dan Shipping Services 622-6587 manager@danshipping Dwight Dougal 670-6587 belize.com

Belize Logistics Services 227-2710 227-3754 jose@belizetransportati Jose Gomez on.com bobstevens@belizetran Bob Stevens sportation.com

Source: Belize Port Authority http://www.portauthority.bz/index.php?section=6

9. USEFUL CONTACTS

The Immigration and Nationality Department Belmopan, Cayo District Belize Phone: 011-501-822-2423 Fax: 011-501-822-2662

Permanent Secretary Ministry of Economic Development Belmopan, BELIZE C.A. Tel. No.: (501)-8-22526 Fax No.: (501)-8-23111

Corozal Free Zone Management Agency Santa Elena, Corozal, Belize Tel.No: (501)-4-23643 Fax.No: (501)-4-22341

The Belize Port Authority tel: 501-223-0752 fax: 501-223-0710