Manual exporting to the fcor 14 apr14

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[Year]MANUAL
Funding provided by:
2014

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MANUAL on Exporting to the FCORs // exporTT LIMITED –2014
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How to use this manual
The manual consists of 10 sections. Each section may be extracted or read separately depending on your
specific interest in the FCORs market. The manual is written in a format for easy reading and is
presented under the following headings:
• Section 1 Overview of the FCOR Marketplace
• Section 2 Researching the FCOR Market
• Section 3 Regulatory Characteristics of the FCOR Market: Its Peculiarities and Challenges
• Section 4 Case Study – meeting the FCOR Standards and Regulatory Requirements
• Section 5 Technical Barriers to Trade
• Section 6 Areas of Opportunities
• Section 7 Developing Export Readiness and Export Promotion
• Section 8 Visits to the FCOR Markets, Lessons Learnt, Observations and Recommendations
• Section 9 Getting Ready to Travel to the Export Market
• Section 10 Assisting Exporters in the Marketplace
Manual Prepared by A-Z Information Jamaica Limited

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The FCOR Marketplace Route Map
Section 1
Overview of the
FCOR Marketplace
Section 4
Case Study
Meeting the
FCOR Standards
and Regulatory
Requirements
Section 3
Regulatory
Characteristics of
the FCOR
Market; Its
Peculiarities and
Challenges
Section 2
Researching the
FCOR Market
Section 5
Technical Barriers
to Trade
Section 6
Areas of
Opportunities
Section 9
Getting Ready to
Travel to the
FCOR Market
Section 10
Assisting
Exporters in the
Marketplace Section 8
Visits to the
FCOR Markets –
Lessons Learnt,
Observations and
Recommendations
Section 7
Developing Export
Readiness and
Export Promotion

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Contents
SECTION 1 .................................................................................................................................................1
OVERVIEW OF THE FCOR MARKETPLACE..................................................................................................1
1.1 Market Characteristics........................................................................................................................1
1.2 Economic Characteristics of the FCORs ..............................................................................................2
1.3 Specific Country Characteristics..........................................................................................................4
1.3 1 Martinique .......................................................................................................................................4
1.3.2 Guadeloupe......................................................................................................................................4
1.3.3 French Guyana .................................................................................................................................5
1.4 FCORs – Similarities and Differences ..................................................................................................6
1.5 CARIFORUM Trade with the FCORs ....................................................................................................7
SECTION 2 .................................................................................................................................................9
RESEARCHING THE FCOR MARKET............................................................................................................9
2.1 Market Research.................................................................................................................................9
2.2 Getting a Firsthand “Feel” of the Market .........................................................................................10
2.3 The Chamber of Commerce in the FCOR’s........................................................................................11
2.4 EU / France Regulations Database....................................................................................................11
SECTION 3 ...............................................................................................................................................13
REGULATORY CHARACTERISTICS OF THE FCOR MARKETS; ....................................................................13
PECULIARITIES AND CHALLENGES...........................................................................................................13
3.1 Export Documentation for entry into the EU/FCOR Market.............................................................13
3.2 Label Requirement for entry into the EU/FCOR Market...................................................................14
3.3 The Import Tax Regime of the FCOR’s ..............................................................................................15
3.3.1 General Customs Duty ...................................................................................................................15
3.3.2 The Value Added Tax .....................................................................................................................15
3.3.3 Internal Taxes: The “Octroi de Mer” (O.M) ...................................................................................15
3.3.4 The Quay Tax..................................................................................................................................18
3.4 Samples and Carnets Samples ..........................................................................................................18
SECTION 4 ...............................................................................................................................................19

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CASE STUDY - MEETING THE FCOR STANDARDS AND REGULATORY REQUIREMENTS ..........................19
4.1 Case Study 1: EU Regulations for Packaging Material ......................................................................19
4.2 Case Study 2: EU Regulations for Construction Material..................................................................20
4.3 Case Study 3: EU Regulations for Foods ...........................................................................................22
SECTION 5 ...............................................................................................................................................23
TECHNICAL BARRIERS TO TRADE ............................................................................................................23
5.1 NON TARIFF MEASURES AND TRADE................................................................................................23
SECTION 6 ...............................................................................................................................................24
AREAS OF OPPORTUNITIES .....................................................................................................................24
6.1 Potential Opportunities due to EU-CARIFORUM EPA.......................................................................24
6.2 Opportunities due to commercial arrangements in the FCOR’s.......................................................24
6.3 Opportunities for Business based on Market Characteristics ..........................................................25
6.4 Opportunities Based on Levels of Existing Trade..............................................................................25
6.5 Opportunities in Certain Products ....................................................................................................27
6.6 Opportunities Based on Strategic Alliances and by leveraging comparative /competitive
advantages..............................................................................................................................................27
6.7 Export Preparedness.........................................................................................................................27
6.8 Critical Success Factors .....................................................................................................................28
SECTION 7 ...............................................................................................................................................30
EXPORT PLANNING PROCESS..................................................................................................................30
7.1 Why Export?......................................................................................................................................30
7.2 Export Readiness...............................................................................................................................30
7.2.1 Export Readiness Assessment" tools .............................................................................................30
7.2.2 Being Export Ready........................................................................................................................30
7.3 Export Strategy..................................................................................................................................31
7.4 Steps in Preparation for Exports.......................................................................................................31
7.4.1 Perception and Preparatory Stages ...............................................................................................32
7.4.2 Research Stage...............................................................................................................................32
7.4.2.1 Market Research.........................................................................................................................32
7.4.2.2 Export Audit ................................................................................................................................33
7.4.2.3 Market Assumptions...................................................................................................................34

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7.4.3 Strategy Stage ................................................................................................................................34
7.4.3.1 Market Entry Strategy.................................................................................................................34
7.4.3.2 Global Market Entry Methods ....................................................................................................35
7.4.3.3. Effective Marketing....................................................................................................................35
7.4.3.4 Pricing Strategy...........................................................................................................................35
7.5 Operational Management Stage.......................................................................................................36
7.5.1 Supply Chain Management............................................................................................................36
7.5.1.1 The role of an agent....................................................................................................................36
7.5.1.2 The role of a distributor..............................................................................................................36
7.5.1.3 Exclusivity versus non-exclusivity ...............................................................................................37
7.5.1.4 Choosing an agent or distributor................................................................................................37
7.5.2 Business Financial Instruments......................................................................................................37
SECTION 8 ...............................................................................................................................................39
VISITS TO THE FCOR MARKETS................................................................................................................39
LESSONS LEARNT, OBSERVATIONS AND RECOMMENDATIONS .............................................................39
8.1 Business Conduct in the FCOR Marketplace.....................................................................................39
8.2 Specific Lessons Learnt .....................................................................................................................39
8.2.1 Promotion-Related Issues..............................................................................................................39
8.2.2 Competitive Forces ........................................................................................................................41
8.2.3 Regulatory Forces ..........................................................................................................................42
8.2.4 Political Forces ...............................................................................................................................44
8.2.5 Economic Forces ............................................................................................................................44
SECTION 9 ...............................................................................................................................................46
GETTING READY TO TRAVEL TO THE FCOR MARKETS.............................................................................46
9.1 Planning an Overseas Business Trip..................................................................................................46
9.2 When to visit the Market..................................................................................................................46
9.3 Plan your trip well in advance...........................................................................................................46
9.4 Critical Background Information.......................................................................................................46
9.5 Background Reading .........................................................................................................................47
9.6 Follow-up Tasks after Trade Mission ................................................................................................47
9.7 Summary Checklist – Preparation for Trade Mission........................................................................48

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Section 10................................................................................................................................................49
Assisting Exporters in the Marketplace ..................................................................................................49
10.1 Selecting Businesses for Trade Missions.........................................................................................49
10.2 Providing Assistance to Exporters...................................................................................................49
Appendix 1 ..............................................................................................................................................51

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SECTION 1
OVERVIEW OF THE FCOR MARKETPLACE
--------------------------------------------------------------------------------------------------------------------------
1.1 Market Characteristics
The European Union is the largest economy in the world with a GDP per capita of €25,000 for its 500
million consumers. The EU is also the world's largest trading block and the world’s largest trader of
manufactured goods and services and is itself the biggest export market for around 80 countries.
Together, the European Union's 27 members account for 19% of world imports and exports. Through
the EU/CARIFORUM EPA, Caribbean countries have been afforded added opportunities for increasing
exports of goods and services to the EU.
France is a major market within the EU Block. It has the second largest economy in Europe (behind its
main economic partner Germany) in nominal figures, based on the dynamic industrial structure of the
French economy. The Least Developed parts of the EU are the seven ultra-peripheral regions of the
European Union, including the French Overseas Departments, all referred to as Outermost Regions.
These outermost regions face peculiar challenges which impact their economic development vis a vis
the rest of Europe. In 1997, the Treaty of Amsterdam first introduced the legal basis of the concept of
Outermost Regions. The recognition of their special status in Article 299(2) of the Treaty of Amsterdam
is based on the principles of equality and proportionality which allow differing treatment to take
account of the distinct situation of those regions. Under that status, the European Union adopts
Community measures so that those living in the Outermost Regions can enjoy the same opportunities as
those in the European Union as a whole. This manual concerns the French Caribbean Outermost
Regions of Martinique, Guadeloupe and French Guyana (FCORs).
The French Caribbean Outermost Regions of Martinique, Guadeloupe and French Guyana are effectively
a part of the overall EU market and a microcosm of the market regime that exists for CARIFORUM and
other exporters to the EU. For historical, geographical or political reasons these territories are closely
related to the EU. These territories are also of strategic value to the European metropolis. Their key
characteristics include:
• The FCORs, like the other Outermost Regions have different aspects which make them a
unique part of the European Union requiring special development assistance.
• Their remoteness, insularity and relatively small sized territory with difficult topography and
climate limit their economic development and independence, with the economy reliant on a
small number of products.

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• They have major assets and the potential not only to contribute to their own development,
but also to that of Europe as a whole.
• They are governed by the same ever evolving rules and regulations that govern France and
its regions, in addition to those laws that govern the EU.
• FCORs conduct most of their business with mainland France due to longstanding colonial
ties.
• There is a high preference for French culture and French influence dominates their way of
life.
• Quality and to a lesser extent, price are the two main factors driving sales in these markets.
• Most important requirements for exporting are to meet quality standard requirements and
to offer a price competitive product
1.2 Economic Characteristics of the FCORs
According to Growth Factors in the Outermost Regions (ORs) (European Union, Regional Policy, 2009),
the main handicaps of the FCORs are as follows1
;
A. The FCORs share most of the features of the small economies. Small size of the domestic market,
greater tendency to monopolistic structures in production and trade, scarce domestic natural resources
and labour supply, narrow domestic output as well as little diversification, inability to influence
international prices, small export base and high import ratio to GDP, high degree of structural openness
to trade, higher transport and communication costs of islands or land-locked territories etc. Such
features have implications for the economic performance of small economies, in line with the
endogenous growth theory which identifies key drivers such as private investments, human capital,
sector specialization and competitive advantage, openness to trade, as the necessary conditions for
growth.
B. Remoteness, insularity and small size: The FCORs are far from the main European markets and
scarcely integrated even with their mainland; tourism and agricultural products link the local economy
with mainland EU. Remoteness has a negative impact on most sectors because of the transport costs,
which affect mobility of factors (labour and capital), trade and in general all forms of integration with
the EU. To deal with remoteness however in the past transport infrastructures have been built and a
mildly positive trend in the maritime transport of freight can be observed in the last decade in all FCORs.
C. Air transport and freight Costs: In general, the opening of air transportation routes has helped to
mitigate the isolation of the regions. Accessibility issues affect FCORs not only in their trade and
exchanges with the EU but also within their geographic areas and within the same archipelago.
1
Territorial Scenarios and Visions for Europe (ET2050)

3
D. Small size of the domestic market: The small size of the domestic market is an economic
disadvantage which discourages private investment and produces a tendency to develop monopolistic
structures and higher costs for the consumers for many goods and services, lowering the standard of
living and penalizing the competitiveness of the regions. Remoteness however does not affect Tourism,
a sector for which the FCORs’ environmental and cultural diversity can be a competitive advantage. In
the FCORs, the hosting capacity remains underutilised and the sector has not been able to pull the local
economic growth.
E. Difficult topography and climate: The climate of these FCORs varies from tropical (e.g. Guadeloupe,
Martinique), to equatorial (Guiana). Martinique and Guadeloupe are of volcanic origin and are
characterised by very diverse relief from steep to flat, sometimes within the same region. Most of the
social and economic life is concentrated in the coastal areas which are particularly exposed to extreme
climatic events. Environmental risks are therefore high. Availability of drinkable water and problems
linked to waste disposal are amongst the most important issues. The population density is very high in
all FCORs except Guiana which has a low density of1.6hab/km2). It ranges from 260 inhabitants per
square km in Guadeloupe to 350 in Martinique, while the EU27 average is approximately 114.
E. Economic dependence on a few products: The traditional economic activities in the FCORs are
livestock farming (meat and dairy products), fishing, agricultural products such as sugar cane and rum,
bananas, tomatoes and potatoes, plant and flower cultivation etc. On average agriculture, forestry and
fishing generate less than 5% of gross value added but the traditional economic activities are important
for the regional cultural identity, for the preservation of the landscape and tourist attraction and for
their employment intensity. On average 80% or more of gross value added is generated by the service
sector and over 15% is produced by industry. Within the service sector, the share of public
administration is particularly high in the FCORs. The structure of output and employment indicates a
dependency on food imports and income transfers.
The FCORs have been recognized for their unique features and opportunities which underpin their
prospects for development, while at the same time providing opportunities for EU in terms of certain
cutting-edge initiatives and pilot projects of significant interest for Europe. These include their
exceptional biodiversity and marine ecosystems, good potential for the development of renewable
energies and leading-edge agro environmental research; they can act as laboratories for studying and
mitigating the effects of climate change. Besides these aspects, geopolitical characteristics of the
Outermost Regions enable EU foreign strategy to take advantage of their locations while building
relationships with non-EU member states.
The FCORS benefit from the EU funds as well as from the mainland support; they have a better skilled
workforce, public services, and more advanced know-how than the other small islands or regions of
their geographical area. This works as an opportunity to develop trade but also as a competitive obstacle
since the cost structure is much higher than that of the other islands. The high rate of GDP growth in
these countries over the last decade or more has been fuelled by large public investments and rising
private consumption.

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1.3 Specific Country Characteristics
All efforts have been made to present the latest available data. Thus, data for certain key indicators may
vary from one year to the other.
1.3 1 Martinique
The country’s economy is propelled mainly by household consumption and export of services with
tourism as the leading foreign exchange earner. Agriculture products (bananas, sugarcane and
pineapples) remain important, together with rum, refined petroleum and construction. The economy is
made up of many small companies, many of which are in the services sector. The resident population is
407,000 and is augmented by about 490,000 tourists annually. The HDI rating is recorded as “very high”
and generally people have good purchasing power. The GDP per capita was USD 24, 118 (2010 est.) and
the minimum wage is €8.86/hour.
Trade and commercial services account for about 50% of business; administrative services 33%,
industrial activities 8% and construction 6%. The country has 5 industrial zones; businesses are small and
hire just a few employees; the country has one international airport and a commercial seaport.
1.3.2 Guadeloupe
The economy in Guadeloupe has been impacted by the financial crises that have been impacting the EU.
Thus, the economic performance has been described as lackluster. In 2011, the average net salary in the
local civil service was €1,823 per employee and inflation was 2.1. By 2012, unemployment grew by 8.2%.
Women and young people have been most affected. Nonetheless, the economy can be considered as
lucrative. Since the first quarter of 2011, the average value of merchandise imports has been measured
at €657 million annually. The main industries are agro-products, construction, services (trade, tourism,
public services) and main exports are Agro-products (sugarcane, banana), light industrial products, and
transhipments. The outlook for the economy remains closely tied to measures for stimulating overseas
economies to be implemented by the European Commission. About 80,000 tourists visit the country
annually2
.
Despite the recent lackluster performance, Guadeloupe is listed as one of the five (5) richest islands in
the Caribbean. An estimated 70% of its revenue is credited to Services and Trade 15%. Although the
construction sector is relatively small, one out of five small businesses is construction-related.
Agricultural production has been slowing over the last decade.
2
http://data.un.org/CountryProfile.aspx?crName=French%20Guiana

5
External trade is mostly geared towards France and imports are 30 times the volume of exports. Energy
related products account for nearly 40% of imports, intermediate goods 20%; and car-related goods
10%. Agriculture and food-industry (banana, rum and sugar) account for about 40% of exports,
equipment goods 22%; intermediate goods 15%.
The major industrial plants are located in the industrial zone of Jarry. This area also has the Euro-
Caribbean centre which encompasses the international trade zone, the World Trade Center and the
port. Jarry industrial zone has approximately 900 firms and is ranked among the top 3 major industrial
zones in France and accounting for 80% of jobs on the island. Guadeloupe also has the largest
international airport of the FCORs.
1.3.3 French Guyana
French Guiana is located on the South-American continent and the largest FCOR in terms of land surface
(83,534 km2). About 90% of the country is covered with Amazonian forest and approximately 58% of its
inhabitants live on 6% of the country, mainly on the sea coast and rivers.
French Guiana is least developed of the 3 FCORs and accounts for the lowest GDP per capita (Table 1.1).
Most businesses are small with few employees and only 40 have more than 50 employees.
Gold mining, fishing, rice culture, cattle, lumber, tourism and the aerospace industry are the main
industries in French Guiana. Ocean freight transport is costly, largely because of the shipping routes:
between the European continent–Caribbean-French Guyana-Brazil-Europe; and back haul containers
remain empty thus attracting return freight. Nonetheless, the similarities to Martinique and Guadeloupe
and the proximity to the Caribbean Region present good potential for trade.
French Guiana has also been seeking closer integration with Suriname and Brazil, more specifically
through the PO Amazonia. This initiative entails easier cross-border movement of goods and persons.
The country’s population was recorded at 237,000 in 2011
and Cayenne population was 67,000. International
migrant stock, which is the number of people born in a
country other than that in which they live comprise 46.5%
of the total population3
. About 80,000 tourists visit the
country annually4
.
In 2008, the GDP of French Guiana at market exchange
rates was US$4.72 billion (€3.21 billion), ranking as the
largest economy in the Guianas, and the 11th largest in
3
http://data.un.org/CountryProfile.aspx?crName=French%20Guiana
4
ibid

6
South America.
Tourism, especially eco-tourism, is growing. Unemployment is a major problem, running at about 20% to
30%. A rocket-launching base at Kourou, used by the European Space Agency, is very important to the
economy, accounting for about one-quarter of French Guiana’s GDP.
In 2008, the GDP per capita of French Guiana at market exchange rates, not at PPP, was US$20,904
(€14,204), the highest in South America, but only 47% of Metropolitan France’s average GDP per capita
that year.
Table 1.1: Selected Socioeconomic Indicators of the FCOR’s
(various years based on latest available data)
Socioeconomic Variable Martinique Guadeloupe French Guiana
GDP per capita, current prices US
Dollar, (2010 est)
24, 118 21,780 19,600
Inflation, average consumer prices
(Index, 2000=100) 2007-2008
2.7 2.2 3.3
Population (2011)
5
407,000 463,000
6
237,000
Population density (2011)
7
360.9 per km
2
271.6 per km
2
2.8 per km
2
Population in Capital City (2011)
8
87,000 13,000 67,000
HDI Rating (French Rating) Very High Very High Very High
Main Exports Refined oil, agro-
products (banana,
rum)
Agro-products
(sugarcane,
banana), light
industry,
transhipments
Gold, fishing
(shrimps), rice,
wood.
Main Industries Agro-products,
construction, oil
refinery, services
(trade, tourism,
public)
Agro-products,
construction,
services (trade,
tourism, public)
Agro-products,
construction,
services aerospace
industries
Minimum wage rate : 8.86€ per hour 8.86€ per hour 8.86€ per hour
1.4 FCORs – Similarities and Differences
Martinique has a competitive distribution sector, dominated by five large importers. The retail
network includes a few small and medium sized family-owned firms with close links to the local
wholesale and retail trade. Business relations tend to be monopsonistic; while it is easier to make
large market penetration, the buyers have more power. Nonetheless, Trinidad and Tobago is a lower
cost producer and has the added advantage through proximity in terms of lower freight costs. An
5
http://data.un.org/CountryProfile.aspx?crName=Martinique
6
Includes Saint Barthelmy and Saint Martin (French part)
7
8

7
estimated 90% of products in FCORs originate in France; however return freight cost is added to
imports given the lack of backhaul freight.
The FCORs are seeking to become more Caribbean oriented. Although the shipping services
between Trinidad and Tobago and FCORs are well established, the available loads are minimal at this
time.
Similarities: The geography of the FCOR is similar to Trinidad and Tobago in terms of climate,
features of small island states, beaches and marine resources. The population is relatively small, the
heritage, history and sport are similar: the peoples are of African, European, Indian heritage;
numbered among the populations are world famous sports persons and artistes. There is also the
same vulnerability to natural disasters; a limited range of products for exports and high import
dependence.
Major Differences: Economic – the per capita income, wage rates and technological expertise are
very high when compared with CARICOM. The official language in the FCOR is French and thus, an
interpreter may be needed to facilitate the dialogue between trading partners at least initially. The
culture music and cuisine of the FCORs also reflect the French influence.
1.5 CARIFORUM Trade with the FCORs
CARIFORUM exports to the FCORs, though relatively small in terms of the Group’s overall trade
volume and value is nonetheless important from several perspectives. In particular, it signals the
start of concerted efforts to deepen the private sector cooperation between CARIFORUM and the
FCORs and by extension the economic integration between the two groupings as envisioned under
the EPA.
CARIFORUM exports currently account for a fraction of the total imports of the FCORs, the majority
of which is sourced from France. The trade data for 2008, however indicated that the total
CARIFORUM exports to the FCORS was valued at US$ 238M9
. The data on trade in goods suggest
that many firms in CARIFORUM States have been taking advantage of the market opportunities
available in the outermost regions. Since the signature of the CARIFORUM EU EPA, CARIFORUM
States have collectively maintained a positive trade balance with the FCORs. A look at CARICOM
trade data between 2008 -2011 suggests that while the trade balance has reduced somewhat from
USD 213M to USD 155M over the period, the balance has been consistently in favour of CARICOM
exports10
.
9
Final Report Consultancy on Opportunities for Doing Business between CARIFORUM States And the French Caribbean Outermost Regions
(FCORs) –November 2010
10
CARICOM Export Development Agency

8
In terms of the overall value, CARIFORUM goods exports to all three FCORs is dominated by mineral
based products (petroleum and gas), metals and chemicals that are exported from Trinidad &
Tobago. Minerals exports account for over 90% of the value of all CARIFORUM exports to the
FCORs11
. The data also shows that significant amounts of agro-processed products (fish and sea
food, aerated beverages, vegetables and tubers) labels, steel products, sand and gravel/crushed
stones are exported by CARIFORUM. Market intelligence suggests that there are additional
opportunities for agro-processed products (sauces, spices, condiments, jams, jellies, etc.); food and
beverages (food preparations, mineral waters, beers, aerated waters, etc.); paper and paperboard
products; furniture; cosmetics; household chemicals and other products. It should be noted that the
FCORs import a large portion of the vegetables and fruits that it consumes.
The interest by CARIFORUM States in increasing exports to the FCORs is exemplified by Trinidad and
Tobago which is seeking to expand exports from the non-energy sector. The OECS sub-region has
also been making efforts to increase trade in goods and services to the FCORS.
11
IBID. Note: The available Trade Data for 2011 is incomplete and only reflects some exports from the CARICOM states.

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SECTION 2
RESEARCHING THE FCOR MARKET
------------------------------------------------------------------------------------------------------------------------------------------
2.1 Market Research
The research of the FCOR marketplace can start with a review of the basic socio-economic and
demographic data of the country. Other important data should include import duties, regulations,
distribution channels, market size, economic growth factors, competition, and structure of local
production and trade.
In the case of the FCOR’s, much of the trade-related data is included in that of mainland France.
Gathering this information is therefore not straightforward, but it is still required as it will help you
understand how what is imported (external demand) and exported (produced in the country or re-
exported). The Chambers of Commerce and the Manufacturers Association gather some amount of
information and this may be available at a cost. Alternatively organizations may subscribe to the INSEE
database which is the official source of French trade and economic data.
A good amount of this data as well as insights on the operation of the market may be obtained by
visiting the marketplace and meeting with key players. This provides the inquirer with a first-hand
appreciation of how buyers operate. Through the pertinent concerns and key issues raised at business
meetings, one can gain an understanding of what one’s competitors are doing. The visit will allow for
the identification of any potential obstacles to market entry and any cultural factors that may exist in
business dealings and a feel for the ‘flavour’ of the market environment.
When visiting the market, it is best for prospective exporters to meet with those who have a good
knowledge of their particular market niche. For example, if the product is in the category of building
materials, it would be best to consult with the architects, contractors and hardware managers who can
provide a good overview of market condition, trends and expected standards among other factors.
Meeting with distributors and agents should be done last because they may give misleading information
as they seek to enhance their own pecuniary interests.
Participation in exploratory trade missions as well as market penetration Trade Missions can also
provide a good opportunity for garnering good firsthand information about the market prospects and
allows for an assessment of the competition in the marketplace as well as the innovations required for
adapting products or service to meet the competition.
Business Schools in the FCORs may be able to provide research assistance including translation services.
Alternatively, the prospective exporter may wish to engage a private sector business trade facilitation
expert/agent to gather firsthand data on their behalf. Various online sources for example the USDA Gain
Reports on the food import sector may also provide detailed information on various markets.

10
Each market is different therefore prospective exporters must be prepared to spend some time in order
to understand the diversity in culture and aesthetics and the ways of doing business. They should be
alert to the market dynamics in the various territories and take careful note of the standards required to
enter and retain market share. They should observe the body language when attending meetings to
gauge the true interests of buyers. They should observe economic indicators such as construction and
trucking activities which act as barometers of business potential.
The assessment of the market should not only be based on trade data, but also on the projected
economic activity. Although the market may not require certain bulk goods, there may also be
opportunities for niche products that can be successfully produced and supplied by CARIFORUM
countries.
In essence a good first step to
gathering market data is to gather
basic information ranging from
import regulations to exchange
rates. The Chamber of Commerce,
the National Institute of Statistics
and Economic Studies (INSEE),
Customs and the Manufacturers
Association are also good sources
of information12
.
2.2 Getting a Firsthand “Feel” of the Market
Despite conducting an active search by reviewing the
economic trade data and regulations of a country, it
also remains important to get a “market feel” as earlier
indicated. This entails visiting the market and
interacting with buyers and distributors in order to get a
first-hand appreciation. Such visits will help to
determine the main sellers of the particular goods,
how the buyers operate; the relative power and
influence of particular actors in the marketplace; what
competitors are doing and what are potential obstacles
to market entry.
12
http://www.insee.fr/en/

11
Overall, the market research should ideally encompass
intelligence from observations in the marketplace, the
main drivers of the economy, the relative distribution
of goods the characteristics of goods in the retail
market, the rate of economic activity including the pace
of construction, infrastructural capacity including idle or
underutilized facilities, prospective activities e.g. new
oil exploration projects in French Guyana the
availability of raw materials; the development of the
people and consumption patterns relative to luxury
goods and services vs necessities (e.g. brand name
clothing and transport vehicles). Some of this information can also be obtained from people who are
street-sensitive and can convey the “flavour of the market environment” in a practical fashion.
2.3 The Chamber of Commerce in the FCOR’s
Prospective exporters should avail themselves of the support which the Chambers of Commerce may be
able to provide. The Chambers of Commerce in the FCOR’s are important entities in regulation of
businesses and commerce. Until recently, the Chamber of Commerce managed the country’s ports
(Seaports and Airports). It is compulsory for businesses in the FCOR to be registered with the Chambers
of Commerce therefore the Chambers of Commerce occupy strategic positions in the regulation of
businesses and commerce of the FCOR’s. The Chambers of Commerce know the markets quite well and
can also serve as an agent to assist exporters entering the market.
Notwithstanding, having an Agent (professional marketing personnel) in the FCOR can be a major part of
the export company’s success. One Agent may be able to operate effectively in all FCOR countries. The
Chamber may be able to advise on agents that may be suitable to individual exporters or to a group of
exporters. Alternatively, companies may wish to conduct business through a distributor or a Commercial
Agent. The roles of a commercial agent and distributor are addressed in more detail in Section 7.
2.4 EU / France Regulations Database
While the market prospects for the FCOR looks good for exporters, the greatest challenge is expected to
be that of meeting the regulatory standards. The Europa Export Helpdesk provides information on the
EU tariffs, standard requirements, preferential arrangements, quotas and statistics. A comprehensive
database of EU standards can be found at < http://ec.europa.eu/atoz_en.htm >.

12
The Europa TARIC database is a multilingual database in which are integrated all measures relating to EU
customs tariff, commercial and agricultural legislation. TARIC gives economic operators a clear view of
all measures to be undertaken when importing or exporting goods13
.
13
http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/customs_tariff/index_en.htm

13
SECTION 3
REGULATORY CHARACACTERISTICS OF THE FCOR MARKETS;
PECULIARITIES AND CHALLENGES
------------------------------------------------------------------------------------------------------------------------------------------
The European Union is the world’s largest single market and by far one of the most important trading
partners for developing countries. The wide range of preferential trade agreements that the EU offers its
partners in the developing world allow them to benefit from open access to the EU market. However,
“open access” does not mean free entry since there are stringent quality and regulatory requirements
for entering the market. In this regard, manufacturers interested in entering the EU/FCORs should seek
to get a better understanding of (i) the EU general regulatory framework, (ii) the regulatory policies of
the specific country they wish to enter and (iii) the regulations that relate to their products of interest.
The internal market for goods is one of the EU’s most important and continuing priorities which they
aim to preserve by creating a user-friendly environment for their indigenous businesses and consumers.
In this regard, one of the main objectives of the EU’s Directorate General for Enterprise and Industry is
to contribute to the design, implementation and improvement of that region’s regulatory policy and so,
make the internal market work better by removing existing barriers to trade and avoiding the creation
of new ones.
3.1 Export Documentation for entry into the EU/FCOR Market
Proper documentation is most important to guarantee access into the market. The following documents
are required by French law for all goods being exported into the FCOR’s:
 Commercial Invoice
 Certificate of Origin
 Bill of Lading or Airway bill
 Transit Document (T1 or T2) if the goods passed through a EU country
 EUR 1 circulation certificate
 Phytosanitary certificate where required.

14
3.2 Label Requirement for entry into the EU/FCOR Market
The label regulations in the FCOR’s must comply with those of the EU. The following are
generally required for all categories of products.
Box 1
Labelling and Marking Requirements
Origin: Cite the country of origin and the lot number
Language: Labels must be written in French. This however, does not preclude having a label in
more than one language. In such a case, French authorities must authorise any
foreign words or abbreviations. The writing must be clear and non-promotional.
Designation: The identifying name of the product must be stated clearly on the label. For
example: "olive oil."
Brand Names/
Trademarks
Any name, symbols and marks relating to the product must be found on the exterior
of the packaging, the product label, and the bottle-top or lid, as the case applies. A
manufacturer can only use registered brand names and trademarks.
Composition: All ingredients or materials constituting the product must be listed, ranking them
starting with the one with the highest content.
Qualifiers: For example: "made by hand" on leather goods.
Usage Instructions: Explain how the product is to be used and stored.
Specifications: Labels must inform the consumer of any particular product limitations or special
sales conditions.
Bar Code Price
Labelling
(GENCOD):
Stores are increasingly using this system to speed up the passage of clients at cash
registers. GENCOD -- France's bar code price labelling system, is generally used for
products with a low per-unit value and rapid turnover, as well as for food and non-
food products requiring an individual price marking because of their value, nature,
or presentation.
Quality and
Ecological Labels:
More established quality seals and labels exist in France than in any other European
country.
Though desirable because they offer extra information to the customer, they are
not mandatory.
Quality Labels There are various types of French quality certificates: Public labels certify the quality
of a product that cannot be otherwise observable (credence goods) and recognized
as such by consumers, eg geographical indications used for various types of cheese.
The "Origine France Garantie" label is used to promote products "Made in France".
The Quality labels tell you about product performance, and environmental labels
(ecolabels) tell you that the product has lower impact on nature or man compared
to other products. Where certificates are issued by professional associations, they
must be contacted individually for more information.
 All labels entering the EU require metric units
 Quality labelling can be viewed as a ‘silent salesperson’ that is, it can prove to be
critical in market penetration and participation.

15
3.3 The Import Tax Regime of the FCOR’s
The FCOR’s have four different types of taxes that are applied on imports. These are as follow:
1. Customs Duty (where applicable): Common Customs Tariff, along with the Integrated Tariff
(TARIC), is applied at EU external borders to goods from third party countries. CARIFORUM
exports are excluded from Customs Duty under the EPA.
2. Value Added Tax (VAT): This is applicable in Martinique & Guadeloupe, but not in French
Guiana as yet.
3. The Octroi de Mer: This tax is applied to imports from the EU and the rest of the world.
4. Quay Tax: Each port has a different charge and the formula is calculated based on different
variables such as weight; size of the ship, type of goods and applies both when the ship arrives
and departs. An average cost is €120 for a 40ft container is applied.
These are now described in more detail below.
3.3.1 General Customs Duty
Goods coming from African Caribbean and Pacific (ACP) countries are exempted from General Customs
Tax because Trinidad and Tobago and the rest of CARICOM are fellow ACP countries. Where the goods
do not qualify for exemption, which may be the case of re-exports or Origin issues, the import duties are
calculated on an ad valorem basis, i.e. expressed as a percentage of the value of imported goods. This
dutiable value is the “transaction value” plus freight, insurance, commissions, and all other charges and
expenses incidental to the sale and delivery of goods to the point of entry into the EU customs territory
including the FCOR’s. The invoice price is used as the transaction value providing there is no relationship
between the seller and the buyer.
3.3.2 The Value Added Tax
The FCOR’s (other than French Guiana) apply VAT closely resembling the European Community system
but with certain adaptations (reduced rates). The current rate averages 8.5% for most goods. The VAT is
applied on the “tax excluded price”. VAT must be added to the price of all goods and services sold. The
VAT is reduced to 2.1% on food and medical products.
3.3.3 Internal Taxes: The “Octroi de Mer” (O.M)
The Octroi de Mer is applied to imports from the EU and the rest of the world. It affects all Goods both
locally produced and imported. The Octroi de Mer is also applicable to the local production of goods

16
whether from manufacturing operations, processing, and renovation of tangible assets as well as
agriculture and mining operations.
The basis for the calculation of the tax is the CIF value in the case of imports and for local production, it
is the quarterly statement of turnover. The tax base consists of the following elements:
a) For imported goods, the customs value for the purposes of Community law;
b) For the supply of locally produced goods, the price excluding value added tax and excise off.
The Octroi de Mer is locally set by regional council and not at the EU level. It is specific to the FCORs to
cover costs related to Government Administration in the territory. Thus, imports of Goods originating
from France, other members of the European Union, third countries, Reunion and French Guiana are
liable to Octroi de Mer.
The Octroi de Mer has two components, the OM and the OMR. When both OM & OMR are combined,
the average is 17.5%. It is applicable to all imports and the locally manufactured goods. The OM has a
variable rate and the OMR is fixed.
OM (financing the municipalities) – 0% to 70% (average 15%). Upper levels applicable to
products such as oil, tobacco, liquors e.g. 70% on tobacco
• OMR (financing the Regional Council) – fixed rate of 2.5%
With regard to the application of the Octroi de Mer (OM & OMR) to the local production, the quarterly
statement of turnover is the basis of calculation. In the case of imports, the CIF value is the basis for
calculation.
Exceptions to the Octroi de Mer: Both the OM and the OMR are waived or reduced in the following -
four circumstances.
 Local manufacturers are exempted of this tax if they are below the threshold turnover of
€550,000/year.
 Some local manufacturers whose turnover exceeds €550,000/ year benefit from an exemption or
reduction. This applies only to a list of 218 products out of the 5088 products imported (2008) and
as listed in appendices of EU Decision 2004/162/EC of February 10, 2004 and known as list A, list B
and List C. (maximum authorized differential of max differential 10, 20 and 30 % respectively).
Regarding the other products locally manufactured the normal tariff applies.
 imports under franchises ;
 For some imported products such as raw or intermediate goods, which are used in the local
manufacturing, the Regional Council may authorize an exemption or reduction, irrespective of their
origin.
The following data in Table 1 below indicate the various taxes which may be applicable to products of
interest to CARIFORUM Exporters.

17
Table 1: Application of OM&OMR and other taxes on some products of interest to Trinidad and Tobago
:EPA (EUR1) EPA Regime
OM Octroi de Mer
OMR Octroi de Mer Régional
VAT Value Added Tax
Source: “The Imposition of the Octroi de Mer by the French Caribbean Outermost Regions on Products Originating from CARIFORUM States-
Legal Opinion” –A-Z Information Jamaica Limited- 2014.

18
3.3.4 The Quay Tax
The Quay tax corresponds to a tax for the unloading of goods. Each port has a different charge and the
formula is calculated based on different variables such as weight; size of the ship, type of goods and
applies both when the ship arrives and departs etc. The average cost is €120 for a 40ft container.
3.4 Samples and Carnets Samples
Samples and Carnets that carry no commercial value do not attract duties and taxes. Shipping
documents must specify that such samples are of “No commercial value” when they are being imported
into Guadeloupe.
If they are being sent via the parcel post, the types of samples must be clearly identified. Samples of
commercial value can also enter duty and tax free, however a bond or deposit of the total amount of
duties and taxes must be supplied. This money is refunded if the samples are re-exported within a year.
An ATA Carnet can be used instead of this deposit.
An ATA Carnet is an international customs document which simplifies and streamlines customs entry
procedures for merchandise imported to participating countries for a year. They may be used for
commercial samples, professional equipment, and goods destined for exhibitions and fairs. They are
accepted as a guarantee that all customs duties and excise taxes will be paid if any of the items covered
by the carnet are not re-exported within the time period allowed. Advertising material attracts duties.

19
SECTION 4
CASE STUDY - MEETING THE FCOR STANDARDS AND REGULATORY REQUIREMENTS
-------------------------------------------------------------------------------------------------------------------------------
Exporters are required to meet EU standards and the regulatory requirements for market entry to the
FCORs. There will be a need to identify the gaps in standards so that the Competent Authority (eg
Bureau of Standards) can focus on assisting the companies to achieve the required standard.
While general information on standards can be sourced from websites such as Europa help desk and
Legi-france for example, the assistance of the Bureau of Standards should be enlisted to assist the
companies in extracting the specific requirements for their products as well as to outline the
approaches for attaining those standards.
In many instances, the FCOR importers are not fully aware of the specific EU standards for products
since most of their supplies are from the Metropolis (i.e. mainland France). Some Trinidad and Tobago
companies have enlisted the support of Qualipro– a Service provider from Martinique to assist in this
regard.
Three case studies are presented to demonstrate the use of the EU regulations (Boxes 1 - 3). The
regulations are written in technical language and may at times need further clarification from the
competent authority or qualified consultants/Standards Body. Similarly, exporters of various
commodities will be required to find the regulations and standards that refer to their goods and verify
their extent of compliance. Documentation of the compliance regime is also important for purposes of
traceability. Excerpts of the EU regulation are presented.
4.1 Case Study 1: EU Regulations for Packaging Material
Packaging used for containing various goods for sale within the EU must comply with the general
requirements which aim at protecting the environment, as well as with the specific provisions
designed to prevent any risk to the health of consumers. Hence, these types of products are
affected by:
 General requirements related to packaging and packaging waste
 Specific provisions related to package sizing
 Special rules for materials and articles intended to come into contact with foodstuffs

20
Box 1
EU Regulations – Food Packaging Material
Commodity HS Code Reference Link
Food boxes 4811 Commission Decision 97/129/EC (OJ L-50 20/02/1997) (CELEX 31997D0129)
establishes a Packaging Material Identification System to facilitate identification and
classification of packaging materials.
Regulation (EC) No 1935/2004 of the European Parliament and of the
Council (OJ L-338 13/11/2004) (CELEX 32004R1935) establishes a list of
materials and articles (such us plastics, ceramics, rubbers, paper, glass, etc.)
which may be subject to specific measures related to authorised substances,
special conditions of use, purity standards, etc. Currently specific measures exist
for ceramics, regenerated cellulose and plastics.
This Regulation also lays down that these products will be labelled "for food
contact" or shall bear the symbol with a glass and fork.
Commission Regulation (EC) No 2023/2006 (OJ L-384 29/12/2006) (CELEX
32006R2023) lays down the rules on good manufacturing practice (GMP) for the
groups of materials and articles intended to come into contact with food listed
in Annex I to Regulation (EC) No 1935/2004 of the European Parliament and of
the Council and combinations of those materials and articles or recycled
materials and articles used in their manufacturing process. According to this
Regulation, the application of printing inks to the non-food contact side of a
material or article is subject to specific rules.
Food Labelling,
presentation
and advertising
of foodstuffs
DIRECTIVE 2000/13/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 20 March 2000 on the approximation of the laws of the Member States relating
to the labelling, presentation and advertising of foodstuffs
Food Safety WHITE PAPER ON FOOD SAFETY., Brussels, 12 January 2000., COM (1999) 719 final
Paper board 4802
4819
Verify - Export Help Desk - No specific requirement. Please check also possible sub-
products
All packaging placed on the EU market, including packaging designed for industrial,
commercial and domestic purposes, must comply with the essential requirements
and the heavy metals limits specified in European Parliament and Council Directive
94/62/EC (OJ L-365 31/12/1994) (CELEX 31994L0062) aiming at minimising the
impact of packaging waste on the environment.
Reference Export Help Desk < http://ec.europa.eu/atoz_en.htm >.
4.2 Case Study 2: EU Regulations for Construction Material
In this case study, the excerpts of the EU regulation relating to construction material are presented. The
Regulations incorporate environmental concerns and waste disposal. Exporters to the EU would be
required to meet emission and waste regulations as part of their market entry requirements.

21
Box 2
EU Regulations – Construction Material
Construction Products The Construction Products Regulation (305/2011/EU - CPR) – replacing the Construction
Products Directive (89/106/EEC - CPD) is laying down harmonised conditions for the
marketing of construction products.
Reference http://ec.europa.eu/enterprise/sectors/construction/index_en.htm
The Construction
Products Regulation (CPR)
Construction Products Regulation (the CPR) is to ensure reliable information on construction
products in relation to their performances. This is achieved by providing a “common
technical language", offering uniform assessment methods of the performance of
construction products.
Reference http://ec.europa.eu/enterprise/sectors/construction/legislation/index_en.htm
The CPR has already entered into force. However, the main parts of its substantial Articles
shall apply first from 1 July 2013. Until then, the CPD therefore remains in application. The
already applicable parts of the CPR focus on the notification and designation processes of
the Notified Bodies (NB) and the Technical Assessment Bodies (TAB).
CPR can be sourced at (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:088:0005:0043:EN:PDF)
CERAMICS Ceramics production processes are energy intensive, although with differences in intensity
between the various sub-sectors, the bricks & roof tiles sector being the biggest consumer
accounting for around half of all energy consumed in the ceramics industry. The industry has
every incentive to reduce its energy consumption, which it has halved over the last 25 years
principally as a result of a switch in fuel usage.
The industry falls within the scope of several pieces of legislation, notably the Directives on
emissions trading, IPPC, REACH. Another issue related to environment is dust, which can
arise from the handling or processing of raw materials or finishing. Gaseous emissions arise
during the firing or spray drying of ceramics and may be derived from the raw materials
and/or the fuels used. Among these emissions are carbon oxides, nitrogen oxides, sulphur
oxides, inorganic fluorine and chlorine compounds, as well as organic compounds. Heavy
metals can also be emitted due to the use of substances used in decoration or to the use of
heavy oil as fuel.
Some of the waste arising from the production process can be recycled back to the kiln, and
that which cannot be recycled internally is sent for external recycling (e.g. road construction)
or disposal (e.g. landfill). Some producers are beginning to bring in waste for recycling, but
this is by no means common, as in, for example, the glass industry, and there is no
standardised collection system. Waste water coming from the production process mainly
contains mineral components (insoluble particulate matter, albeit not discharged).
Depending on the production process, it can also contain other inorganic materials, small
quantities of numerous organic materials as well as heavy metals.
A major issue for ceramics is lead and cadmium used in decoration in the table- and
ornamental ware sector. This is regulated by Commission Directive 2005/31/EC which
introduces a requirement for a written declaration by the producer or importer that the
goods placed on the market comply with the lead and cadmium release limits.

22
4.3 Case Study 3: EU Regulations for Foods
The EU also stipulated the Maximum Residue Levels (MRL’s) as well as food additives and colours
regulations for various types of food items. These were developed to protect human and animal
health.
Box 3
EU Regulations – Food for Human Consumption
Maximum Residue Levels
(MRL’S):
Maximum Residue Levels (MRLs) are the upper legal levels of a concentration for
pesticide residues in or on food or feed based on good agricultural practices and to
ensure the lowest possible consumer exposure. More information on food additives
can be found at: <http://www.efsa.europa.eu/en/pesticides/mrls.htm>
Food Additives: Food additives are substances added intentionally to foodstuffs to perform certain
technological functions, for example to colour, to sweeten or to help preserve foods. All
food additives are identified by an E number.
Food additives are always included in the ingredient lists of foods in which they are
used. Some of the additives that you are likely to come across on food labels are
antioxidants (to prevent deterioration caused by oxidation), colours, emulsifiers,
stabilisers, gelling agents and thickeners, preservatives and sweeteners.
When food additives are used in foods in Europe, product labels must identify both the
function of the additive in the finished food (eg colour, preservative etc.) and the
specific substance used either by referring to the appropriate E number (such as E415)
or its name. More information on food additives can be found at:
<http://www.efsa.europa.eu/en/topics/topic/additives.htm>.
Food Colours: Food colours are food additives which are added to foods mainly for the following
reasons:
 to make up for colour losses following exposure to light, air, moisture and
variations in temperature;
 to enhance naturally occurring colours;
 to add colour to foods that would otherwise be colourless or coloured
differently.
Food colours are contained in many foods, including snack foods, margarine, cheese,
jams and jellies, and desserts, drinks, etc. Each food colour authorised for use in the
European Union (EU) is subject to a rigorous scientific safety assessment. More
information on food colours being used as additives can be found at:
<http://www.efsa.europa.eu/en/topics/topic/foodcolours.htm>.
Food topics A-Z (food
colouring, food
preservatives etc):
More information on food colours being used as additives can be found at
< http://www.efsa.europa.eu/en/topics.htm>

23
SECTION 5
TECHNICAL BARRIERS TO TRADE
-------------------------------------------------------------------------------------------------------------------------------
5.1 NON TARIFF MEASURES AND TRADE
Technical barriers to trade (TBTs) are wide ranging measures that countries use to regulate markets,
protect their consumers, or preserve their natural resources among other objectives. They can also be
used to discriminate against imports in order to protect domestic industries. They are essentially a
category of nontariff barriers to trade. TBTs therefore comprise such measures as sanitary and
phytosanitary (SPS) measures and traceability in food products, designed to protect humans, animals,
and plants, from diseases, pests, and other contaminants. Other than SPS measures, TBTs include rules
for product weight, size, or packaging; ingredient or identity standards; mandatory labeling; shelf-life
restrictions; and import testing and certification procedures.
TBTs especially as they relate to technical regulations and product standards may vary from country to
country thereby making it extremely difficult and costly for exporters to penetrate these markets. These
costs arise from the translation of foreign regulations, hiring of technical experts to explain foreign
regulations, and adjustment of production facilities to comply with the requirements. In addition, there
is the need to prove that the exported product meets the foreign regulations
Recent studies commissioned by Caribbean Export have confirmed the existence of a range of
challenges affecting CARIFORUM exports to the FCOR, most of these falling within the meaning of
technical barriers to trade. Some of the most commonly encountered ones include:
 Language differences (English, Dutch, Spanish and French);
 Inadequate transportation – lack of availability and cost of services;
 Challenges in meeting French/EU Standards and technical requirements;
 Lack of knowledge of the French system (tax and market structures);
 Lack of on the ground representation in the French Caribbean and CARIFORUM to assist
Exporters in those markets;
 Overall lack of market information that can guide them in taking meaningful decisions on
Opportunities in the outermost regions;
 The French and hence FCORs invariably apply standards which are somewhat higher than those
of the EU.
Recent experiences have indicated that perhaps the greatest hurdle to increasing exports to the EU
relate to product standards and regulations.
It is anticipated that in time, some of these challenges can be reduced through better representation in
the market place such that the gathering of market intelligence and the interface between exporters,
importers and the regulatory agencies can be facilitated and improved.

24
SECTION 6
AREAS OF OPPORTUNITIES
6.1 Potential Opportunities due to EU-CARIFORUM EPA
The EPA was signed in October 2008 and offers a new deal to the CARIFORUM states in terms of a new
WTO-compatible trading relationship with the EU based on reciprocity. The EPA removes barriers to
most Caribbean exports in goods and services to the EU and includes improved ‘rules of origin’ allowing
for intermediate products from outside the region.
EU products are to become increasingly more accessible to Caribbean consumers with reciprocity,
following a liberalization process over 25 years, specific to each country and industry concerned.
The FCOR’s, as part of the EU are also covered by EPA and are thus “open for business”. Their location in
the Caribbean relative to mainland France is considered as a disadvantage in terms of trade, however,
this provides opportunities for highly competitive Trinidad and Tobago exporters in terms of proximity
and lower costs.
When assessing the market for business opportunities, prospective exporters should first focus on the
needs of consumers, the target population, the attitudes and the likely competition for the product in
the marketplace. One may conduct an “active search” of the market where there are clearly defined
opportunities already indicated and it is simply a case of finding same. Alternatively, opportunities may
come to the attention of an alert entrepreneur- a so called “passive search” of the market. Alternatively,
exporters may seek to create new opportunities through product innovation to satisfy gaps in the
demand for particular products or services. A good example of this will be the lowering of the active
ingredients in household chemicals to meet the price level demanded in discount supermarkets and to
be able to compete on price given lower production cost and other competitive advantages.
6.2 Opportunities due to commercial arrangements in the FCOR’s
The market size of the FCORs is relatively small and is dominated by a few large buyers. The prospective
buyers invariably are interested in multiple product lines being offered by the Trinidad and Tobago
exporters and are looking for competitively priced products that are similar in quality and presentation
to those traditionally sourced from Europe. This means that the approach to the market has to be well
coordinated in all respects. There are clear advantages in having support on the ground via an Agent as
the market requires a persistent and methodological approach to creating business opportunities.
Competitive shipping rates to take advantage of Trinidad and Tobago’s proximity and competitive
advantages are critical. The situation presents a good opportunity for exporters to work together in
sending consolidated shipments to the FCORs. In addition the following features of the market are
worth noting:

25
 Some of the potential buyers/distributors have multiple outlets in all three countries hence the
possibility for increasing the overall volume of trade is relatively good.
 There will be need to continuously monitor developments in the market and to assess
competitiveness as the information is not readily available from the potential buyers.
 The indications are that Trinidad and Tobago will be able to compete in the market given its
competitiveness in terms of cost of production and transportation costs to the market. There
will be a need to make a thorough assessment of shipping costs in order to get the best possible
rates. For some small orders for example labels, competitively priced air cargo rates as well as
frequent flights to deliver small orders on time is deemed important for the development of
that market.
 Entry into the FCOR’s can eventually translate into opportunities in mainland France.
6.3 Opportunities for Business based on Market Characteristics
Entrepreneurs will need to assess the characteristics of the market as well as the consumption trends.
Assessment of each domestic industry will inform the demand for intermediary products or raw
materials. Pertinent market characteristics in this regard include trends in consumption, tastes,
preferences and buying habits. Being Caribbean countries with similar history and origin of the people,
many consumption behaviors are similar (eg clothing, garbage bags, food ingredient, juices and sauces).
6.4 Opportunities Based on Levels of Existing Trade
Many exporters from Trinidad and Tobago and other CARICOM countries are already doing business in
FCOR (Table 6.2). Trade data show that all CARICOM countries export to, and import from the FCOR,
where trade spans all categories of goods. The export opportunities span a broad cross section of goods
(Table 6.3).
Table 6.2: CARICOM Exports to the FCORs (US$) 2009-2011
(Latest data available)
Country / Region 2009 2010 2011
CARICOM 70,565,893 182,656,243 176,203,443
MDCs 59,475,366 176,274,332 170,884,630
Barbados 1,276,692 1,242,340 1,496,766
Guyana 2,420,890 2,923,421 1,931,471
Jamaica 3,851,890 5,177,951 5,846,997
Suriname … … …
Trinidad & Tobago 51,925,895 166,930,620 161,609,396
LDCs 11,090,527 6,381,911 5,318,812
Belize 78,102 30,524 7,892
OECS 11,012,424 6,351,387 5,310,920

26
Country / Region 2009 2010 2011
Antigua 629,649 469,183 868,290
Dominica 5,532,113 3,631,920 2,475,092
Grenada 787,997 803,528 262,894
Montserrat 31,697 … …
St. Kitts / Nevis 184,884 216,146 577,279
St Lucia 3,827,860 1,211,262 1,125,003
St. Vincent 18,224 19,348 2,363
Table 6.3: Export of Goods from CARIFORUM to FCORs by Category in US$ (2006-2008)
(Latest data available)
CATEGORY 2006 2007 2008 AVERAGE
01-05: Animal & Farm Products 4,202,432 4,081,058 3,253,686 3,845,725
06-15: Vegetable Products 4,176,646 2,643,030 4,760,254 3,859,977
16-24: Foodstuffs 4,665,627 5,268,107 8,172,136 6,035,290
25-27: Mineral Products 298,130,188 85,525,074 173,552,153 185,735,805
28-38: Chemicals & Allied
Industries
4,466,250 6,851,266 8,806,572 6,708,029
39-40: Plastics/Rubbers 1,248,742 929,355 2,009,031 1,395,709
41-43: Raw Hides, Skins,
Leather & Furs
8,627 98 5,625 4,783
44-49: Wood & Wood Products 1,497,243 1,580,762 1,836,639 1,638,215
50-63: Textiles 194,754 55,613 466,219 238,862
64-67: Footwear / Headgear 229,225 268,841 302,459 266,842
68-71: Stone / Glass 80,269 99,273 408,559 196,034
72-83: Metals 19,088,364 23,324,991 33,349,087 25,254,147
84-85: Machinery Electrical 489,962 72,176 111,145 224,428
86-89: Transportation 76,897 74,919 101,667 84,494
90-97: Miscellaneous 652,986 360,865 1,010,384 674,745
TOTAL 339,208,213 131,135,427 238,145,616 236,163,085

27
6.5 Opportunities in Certain Products
Results of a fact finding mission has revealed that there are opportunities in several areas of interest to
CARIFORUM Exporters including a number of the targeted items from Trinidad and Tobago:
 Cosmetics  Confectionery
 Detergents  Aggregate products
 Electrical products  Packaging material
 Furniture products  Labels
 Safety products  Garbage bags
 Construction products  Food products including
seafood’s, condiments,
spices, preserves.
6.6 Opportunities Based on Strategic Alliances and by leveraging comparative /competitive
advantages
Strategic alliances including Joint ventures and manufacturing under licence may be considered as these
can yield benefits from technology transfer from France / FCOR and leverage the comparative
advantages of both regions. Manufacturers may also leverage FCOR expertise in meeting standards and
in introducing innovations through the research support from the Metropolis.
Through strategic alliances, exporters can penetrate the FCOR market easier by working with
distributors in the market. If products are in demand, the potential market can eventually extend to
mainland France and the wider EU.
Labour and other costs are lower in Trinidad and Tobago/CARIFORUM. Work weeks are more productive
and there are less vacation breaks, all of which contribute to creating greater scope for production and
increased productivity. Further, the FCORs desire to be more Caribbean and will be more open to do
business with Trinidad and Tobago manufacturers. Thus, strategic alliances that seek to manufacture in
Trinidad and Tobago for export to the FCOR can be explored.
6.7 Export Preparedness
An export readiness assessment should be conducted as part of the company’s export planning process.
This assessment when properly designed and conducted can provide insights on the following
attributes:
 Significant management time and strong management commitment to export development
 Strength in the domestic market

28
 The resources to succeed
 Business and export planning in place
It is therefore important to be ready for exporting. Amongst other things, the prospective exporter will
need to prepare a company profile, ensure that product labels requirements are adhered to, product
standards and Quality requirements are understood and documented and certification processes are
streamlined within the company’s operations. The manufacturing plant should be ready and accessible
for verification visits from EU Regulatory Authorities or Potential Buyers as they may seek to ascertain
the firm’s capabilities.
Company Profile: Develop suitably designed company profiles showing the manufacturing plant,
catalogue of the products being offered with specifications and quality standards as well as price
information shows readiness to do business. Remember, this is also the exporter company’s public
relation pitch, thus it should be professionally done.
Labels: Labels should be in French and the labels should be vetted to ensure that they meet the
stipulated unique standard for each product. Either the Agent in the FCOR or commercial distributor
can assist with the vetting of labels. In the FCOR’s, either 8 or 13 character Bar Codes may be used.
Certification: Exporters must ensure that products are certified according to the EU standards. The local
Bureau of Standards can be approached to assist with certification.
Manufacturing Plant: Exporters should make sure that the processing plant meets the EU standards for
health and safety. In addition to the review of brochures and websites, companies should expect visits
to their production facilities as part of the verification process.
6.8 Critical Success Factors
Demand for products in the FCOR is based on past trends and expectations in the future. The FCOR have
a high income per capita, a good market population and there is acceptance for CARICOM products. In
Trinidad and Tobago, the manufacturers have good production capacity, are capable of meeting the
required quality, and are cost competitive, some exporters understand the regulations and the
opportunities under the EPA. Nonetheless, a number of factors remain critical for doing business in the
FCOR. Satisfying these increases your chances for success.
• Market research – Making the wrong assumptions can be costly. It is advisable to study the
market carefully. It is different from the CARICOM market.

29
• Understand the EU standards and product entry requirements. There is no guarantee that
products currently being exported to the USA, CARICOM and other markets and though meeting
the quality requirements of those markets must automatically be acceptable in the FCOR/EU.
• Joint ventures and partnerships- There are benefits in partnering with select businesses where
interests are compatible, rather than being confined to just a simple commercial relationship. In
this regard there may be potential benefits for local firms through:
• Cutting edge technology and product innovations;
• FCOR expertise in meeting the EU standards;
• Direct FDI ;
• Distributor/promoter/ Marketing and advertisement support on the ground;
• Building Trade links and networks within the FCOR and the rest of mainland France and
the EU;
• Market access through supply of intermediary good and raw materials.

30
SECTION 7
EXPORT PLANNING PROCESS
This section looks at the process of becoming export ready and the process of export Planning and
promotion. In each case, a brief outline of the steps involved is discussed.
7.1 Why Export?
By now, you may have decided that you want to enter the FCOR market given the opportunities that
exist. Nonetheless, the reason for exporting is re-visited here as there may be additional concepts for
consideration.
Very often the domestic market is too small and thus, companies may want to export. They may also
seek to make higher profits, achieve economies of scale, reduced vulnerability by diversifying markets
and exploit the global market if competitive. Companies may also be part of a Global Value Chain where
they may be supplying intermediary products. Exporting reduces dependence on the local market,
exposes the company’s management to new ideas, management practices, marketing techniques, and
ways of competing. Trading beyond the border can lead to increased efficiency and productivity of the
firm. Global brands can be built from small local companies. Despite the positives, exporting has many
challenges such as meeting new labeling requirements, greater levels of commitment, language and
cultural differences, documentation and greater competition.
In order to achieve success, you need to have a plan and remain in control of your business, and not let
the business control you.
7.2 Export Readiness
7.2.1 Export Readiness Assessment Tools
For some firms, becoming export-ready can be a simple task. For others, it may be complicated and
challenging, thereby taking months to ensure that the firm is prepared. There are many “Export
Readiness Assessment" tools online that a potential exporter can use to check his or her readiness.
Some are very detailed and complicated while others are much simpler. It is recommended that you
work with a simple format and begin the process of exporting. Amendments can be made after you are
in business. Box 1 presents a typical Export Readiness Assessment tool.
7.2.2 Being Export Ready
Prospective Export firms should have sufficient internal capacity to handle extra demand, to be able to
respond to customers quickly and have the full support from senior management. The firm should also
be competitive, that is, able to enter the market and retain viability in the targeted export market based
on good research and detailed assessment. The firm’s management should have good expectations
based on clear and achievable export objectives; knows what exporting entails; is open-minded to new
ways of doing business and knows what will be necessary to be profitable in the target market.
Management should also have a reasonably good idea of the competition and what is being offered. It
is necessary to ascertain whether the firm’s products will need modifications/adaptations to meet the
regulations and customer requirements. In addition, the pricing strategy and overall market entry
strategy as well as methodology for transporting the good to the market and the cost it entails, are
important in assessing the market feasibility.
Firms that are weak in any of the areas mentioned will need to focus on addressing the weakness
before tackling the export market.

31
Box 1
EXPORT READINESS ASSESSMENT TOOL
The "Export Readiness Assessment" tools contained herein for both exporters of services and exporters
of goods will provide you with a snapshot of your firm’s status of export readiness. The following
sampling is based on three different areas: Resources, Competitiveness and Expectations:
Resources:
 Does your firm have sufficient internal capacity to handle extra demand?
 Does your firm have internally efficient systems to respond to customers quickly?
 Does your firm have senior and professional staff with excellent marketing skills?
 Does your firm have senior management support for export objectives?
Competitiveness:
 Does your firm have a delivery process that is unique and competitive in the chosen export market?
 Is your firm currently using sophisticated market entry methods?
 Has your firm conducted a detailed market research demonstrating product or service viability in
the targeted export market?
Expectations:
 Does your firm have clear and achievable export objectives?
 Does your firm have a realistic idea of what exporting entails?
 Is your firm open to new ways of providing its services?
 Is your firm realistic about what will be necessary to be profitable in the target market?
Adapted from Foreign Trade Online: <http://www.foreign-trade.com/reference/success2.cfm>
7.3 Export Strategy
The export strategy is an essential component of the business plan. A well-developed export strategy
will help in coordinating the inputs of a range of service providers and positions in the firm in order to
achieve realistic goals. The export strategy must be integrated with the company’s overall business plan.
A sound export strategy will also help the management in dealing with bankers, financial advisers and
government agencies. It will ensure that the company grows within its capability – and not stretch
resources too thin and become inefficient. Firms should ensure that domestic and international
marketing activities are aligned and that their competitive strengths are recognized and weaknesses
addressed. It is advisable to create the export strategy with quantifiable objectives.
7.4 Steps in Preparation for Exports
There are four stages in the export cycle:
 The Perception and Preparation stage
 The Research stage
 The Strategy stage
 The Operational Management stage

32
7.4.1 Perception and Preparatory Stages
The Perception and Preparatory Stages involve the introduction, mission statement and business
principles to develop a “sense of direction”. This is followed by developing the current market position
(the so called “6Ps” (product; place; price; promotion; people; planet)
Developing, producing & improving in accordance with international standards are essential to success
in the international arena. For instance, it may be advisable to embrace the philosophy of Total Quality
Management (TQM) and to embed it in the organization with ISO 9001:2008 certification. This will
launch a process of continuous performance improvement that will help the company to remain the
‘best performer, first choice’ for any buyer.
7.4.2 Research Stage
The research stage of the export planning cycle comprises three aspects (i) the market research and (ii)
the export audit and (iii) market assumptions. These are briefly discussed below.
7.4.2.1 Market Research
Market research should not be an academic exercise of assembled facts and figures. Good market
research entails finding out what actually drives a market – and how to get the best out of it.
Market research involves finding out about relevant details such as import duties, regulations,
distribution channels, market size and growth, competition, demographics and local production –
information with which to assess market opportunities and the costs of capturing them.
The first step is to gather basic market information ranging from import regulations to exchange rates.
This is available from free online sources. The next step is to narrow the focus to the product or service
being targeted and here the process becomes much more specific. The researcher may wish to choose
the countries that have a relevant market size and favourable import growth.
Next, it will be necessary to identify market trends using the 6 Ps namely:
 Product: Look for trends that influence the physical properties of the specific product.
Examples: colour, smell, sensorial properties, health properties, design & customisation, size,
volume, weight, function, capacity, usage, convenience and packaging.
 Price: Prices may trend towards the low end of the market or, reversely, the high end of the
market etc.
 Place: Place trends may include the trend towards a shorter or longer distribution chain, or
towards a different or completely new distribution chain. Place-related trends include the rise
of e-commerce, e-markets.
 Promotion: Note the shifts in communication tools, brands, images, target groups & positioning
can also be influential. There are also shifts from product branding to company branding.
 People: Ageing societies and the trend towards health & nutrition claims are typical people-
related developments; transparent responsibility & accountability, corporate social
responsibility (CSR) and the growing market share of fair trade products.
 Planet: Planet-related trends have to do with issues like natural origins & linkage, energy
efficiency & economy, recyclability, chains of custody. Sponsorships are also worth noting, as
are environmental management and investing. Sustainability and accountability are also key
emerging trends.

33
7.4.2.2 Export Audit
This involves the company audit in relation to market developments and trends and competitor activity
by performing a so-called export audit. The exercise will help the firm’s management to visualize and
analyze the relevant internal elements that will impact on the outcome of the market research findings.
A key characteristic of the company audit is that the elements covered are all controllable by the firm’s
management. To conduct an export audit, one may use the SWOT methodology, in which the Strength
and Weakness analysis covers the company’s environment, while the Opportunities and Threats
analysis covers the market environment.
Strength and Weakness (company
environment): In this stage, the
methodology requires a description of
the Strengths and Weaknesses of the
firm in relation to its expansion strategy.
It involves the identification of the
company’s strengths and weaknesses on
the basis of the 5Ms (see format): Men,
Means (resources), Methods
(management), Machines, and
Measurables (marketing impact,
customer and employee satisfaction, qualitative certifications).
Opportunities and Threats (Market Audit)
The market audit is an external analysis of the Opportunities and Threats in the target market. A key
characteristic of the market audit is that the aspects covered are market conditions which are
uncontrollable by the Firm’s management. In conducting the market audit, one should visualize and
analyze the relevant external elements that will impact on the outcome of all the research findings. The
format for the Opportunities and Threats analysis using the STEEP Methodology are:
Refer to Interactive Research Action Planner (RAP) at <www.cbi.eu> for more information on market
audit.
SWOT conclusions: The opportunities and threats that are identified should be considered drivers for
the company’s adaptation and improvement strategy. It is important to realize that market conditions
cannot be changed and thus will have a strong influence on the market entry strategy of the firm. Once
the SWOT is completed, management should be able to make the final decision on whether or not the
firm should export.
Competitor analysis: The Competitor Analysis follows the SWOT analysis, and the aim is to identify the
main competitors in the target markets. The goal is to determine their strengths and weaknesses and
Strengths Weaknesses
Men
Means
Method
Machines
Measurables
Opportunities Threats
Socio-cultural
Technological
Economic
Environmental
Political

34
the strategic moves that they are likely to make in response to the opportunities and threats presented
by the market.
To identify competitors, one can employ Porter’s competitive forces model, which includes three forces
of ‘horizontal’ competition: the threat of substitute products, the threat of established rivals, and the
threat of new entrants.
7.4.2.3 Market Assumptions
Before formulating SMART objectives and defining a strategy for realizing those objectives, it makes
sense to consider what assumptions lie at the basis of the firm’s strategy. The main assumptions usually
include the following:
 Market prospects: These assumptions show how the market will develop if there are
predictable changes in the present situation, as shown by the market research.
 Market entry: Factors influencing the firm’s prospects of successful market entry include the
level of market growth or saturation, or even market shrinkage, the phase of the product life
cycle, developments in consumer growth and the development of cost prices. All of these
should be considered with the present and future product offer and value proposition in mind.
7.4.3 Strategy Stage
In the strategy stage, the aim is to estimate the amount of effort it will take for the firm to enter the
market and gain and sustain a reasonable position. This depends on medium and longer term
developments in the market structure, the supply/ demand relationship; the intensity of the
competition and the extent and aggressiveness of advertising and sales promotion. There are also
fluctuations in purchasing power; demand, supply and prices, and the amount of funds necessary for
adaptive or even innovative product development. It is therefore advisable to treat all markets
differently as there are economic and cultural differences that should be observed and respected.
7.4.3.1 Market Entry Strategy
Developing the market entry strategy requires a synthesis of the analyses done regarding the firms
capacity, product attributes, export audit and competitor analysis, market selection, market analysis
and trends. The process leads to the design of the “marketing mix” which comprises the ‘toolbox’ or the
instruments and methods for export marketing. This stage involves determining the market (segments)
to be targeted, choosing the most suitable distribution channels, and selecting the right trade partners.
Discreet steps are involved including market
segmentation in which the exporter tries to ‘match’
the product with the market’s needs.
In market segmentation, the exporter seeks to
establish what part or segment of the market in which
to position the product. Here, the goal is to strive for a
balance between competitiveness and profitability.
Hence it will be necessary to identify the relevant
market segments and niches to fit the firm’s products
by applying a number of variables used for
segmentation. These include:
 Geographic variables (e.g. region, country, urban or rural, climate zone);

35
 Demographic variables (e.g. age, gender, family size, income level, education level, nationality,
religion);
 Psychographic variables (e.g. lifestyle, personality);
 Behavioural variables (e.g. benefit sought, product usage, brand loyalty, readiness to buy,
decision-making unit);
 Functional variables (e.g. industrial use, consumer use).
Once a segment has been identified, checks should be made to determine whether all of the following
requirements for the segment are attained:
 entirely homogeneous in itself;
 heterogeneous vis-à-vis other segments;
 clearly identifiable and measurable;
 stable over time;
 accessible and actionable;
 small enough to be controllable and large enough to be profitable
7.4.3.2 Global Market Entry Methods
After choosing the segment of the Market to enter, the firm’s management will next need to determine
how you get the product into the market. Various options are available including direct exporting,
indirect export, joint ventures, franchising, licensing, contracting and manufacturing abroad.
7.4.3.3. Effective Marketing
With more filtering of advertisements, it becomes increasingly more difficult to get specific advertising
message through, thus the exporter will need to develop strategies to make marketing more effective.
This involves the positioning of the products in the market (target market segment; product uniqueness
and product value) and building relationships (one-on-one business meeting, meetings with
professionals and business associations as may be required for construction and industrial products etc).
Lastly, consider the service experience which includes the firm’s emails, invoices and responses over
the phone to make sure that prospective buyers feel comfortable with the Firm. Make the service or
brand experience better.
7.4.3.4 Pricing Strategy
Ensure that the exact costs to take the product into the market are known as well as the competitor
price for similar products. The price offer should take into account cost factors including, cost for
product modifications, product regulations, freight cost, insurance, port charges, dock fees,
documentation, tariffs and internal transport in your calculations.
The firm should determine its market objectives when setting the price of the product. For example, if
the goal is to penetrate a new market, the strategy will be different from one that is looking for long-
term market growth or for an opportunity to sell off factory surpluses. There are several pricing
strategies that may be employed. These include static pricing where the firm charges the same price
to all customers and flexible pricing where the firm adjust prices based on the different types of
customers in the market. There is also penetration pricing where the firm seeks to keep its product
price low, in order to attract more customers, discourage competitors and gain quick market share.
Market skimming refers to a situation in which the firm prices its product high enough to make
optimum profit from the high-end consumers while there is little competition. Firms may also use a
cost-plus approach where the aim is to cover both fixed and variable costs (also referred to as ‘full
cost’). Marginal cost is employed where the firm wishes to cover only the variable costs of production

Manual exporting to the fcor 14 apr14

Manual exporting to the fcor 14 apr14

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