Doing Business in Bermuda: 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Country ............................................................................................................................... 4 Market Overview ..................................................................................................................................................... 4 Market Challenges .................................................................................................................................................... 5 Market Opportunities ............................................................................................................................................... 5 Market Entry Strategy .............................................................................................................................................. 6 Political and Economic Environment ............................................................................................................... 6 Political Environment ............................................................................................................................................... 6 Using an Agent to Sell US Products and Services ....................................................................................................... 6 Establishing an Office ............................................................................................................................................... 6 Franchising ............................................................................................................................................................... 7 Direct Marketing ...................................................................................................................................................... 7 Joint Ventures/Licensing .......................................................................................................................................... 7 Selling to the Government ........................................................................................................................................ 8 Distribution & Sales Channels ................................................................................................................................... 8 Express Delivery ....................................................................................................................................................... 8 Selling Factors & Techniques .................................................................................................................................... 9 eCommerce .............................................................................................................................................................. 9 Trade Promotion & Advertising ................................................................................................................................ 9 Pricing .................................................................................................................................................................... 10 Sales Service/Customer Support ............................................................................................................................. 10 Protecting Intellectual Property .............................................................................................................................. 10 Due Diligence ......................................................................................................................................................... 12 Local Professional Services ..................................................................................................................................... 12 Principle Business Associations ............................................................................................................................... 12 Limitations on Selling US Products and Services ...................................................................................................... 13 Web Resources ....................................................................................................................................................... 13 Trade Regulations, Customs, & Standards .................................................................................................... 13 Import Tariffs ......................................................................................................................................................... 13 Trade Barriers ......................................................................................................................................................... 14 Import Requirements & Documentation ................................................................................................................. 14 U.S. Export Controls ............................................................................................................................................... 15 Temporary Entry .................................................................................................................................................... 15 Labeling/Marking Requirements ............................................................................................................................ 15 Prohibited & Restricted Imports ............................................................................................................................. 17 Customs Regulations .............................................................................................................................................. 18 Trade Standards ..................................................................................................................................................... 18 Trade Agreements .................................................................................................................................................. 20 Licensing Requirements for Professional Services ................................................................................................... 20 Web Resources ....................................................................................................................................................... 21 Investment Climate Statement ..................................................................................................................... 21 Executive Summary ................................................................................................................................................ 21 Openness to and Restriction on Foreign Investment ............................................................................................... 23 Conversion and Transfer Policies ................................................................................................................... 26 Expropriation and Compensation ................................................................................................................... 27 Dispute Settlement ............................................................................................................................................. 27 Performance Requirements and Incentives ............................................................................................................ 28 Right to Private Ownership and Establishment ....................................................................................................... 29 Protection of Property Rights ................................................................................................................................. 30 Transparency of Regulatory System ........................................................................................................................ 31 Efficient Capital Markets and Portfolio Investment ................................................................................................. 32 Competition from State Owned Enterprises ........................................................................................................... 34 Corporate Social Responsibility .............................................................................................................................. 34 Political Violence .................................................................................................................................................... 36 Corruption .............................................................................................................................................................. 36 Bilateral Investment Agreements ........................................................................................................................... 41 OPIC and Other Investment Insurance Programs .................................................................................................... 42 Labor ...................................................................................................................................................................... 42 Foreign‐Trade Zones/Free Ports ............................................................................................................................