Guatemala Market Guide - October 2014

Table of Contents

FOREWORD ..................................................................................................................................................................

TRINIDAD AND TOBAGO/GUATEMALA PARTIAL SCOPE TRADE AGREEMENT ...................................

SECTION 1.0: MARKET OVERVIEW ............................................................................................................................... 1

1.1 Introduction ............................................................................................................................................. 1

1.2 Population ................................................................................................................................................ 1

1.3 Demographics.......................................................................................................................................... 1

1.4 Climate ..................................................................................................................................................... 1

1.5 Language .................................................................................................................................................. 2

1.6 Hours of Business ................................................................................................................................... 2

1.7 Public Holidays ....................................................................................................................................... 2

1.8 Travel & Transportation ......................................................................................................................... 2

1.9 Time Zones ............................................................................................................................................... 3

1.10 Currency ................................................................................................................................................... 3

1.11 Communication ....................................................................................................................................... 3

SECTION 2.0: ECONOMIC AND POLITICAL ENVIRONMENT ......................................................................................... 3

2.1 Economic Performance ........................................................................................................................... 3

2.2 Business .................................................................................................................................................... 4

2.3 Labour Force ............................................................................................................................................ 4

2.4 Political Stability and Structure ............................................................................................................. 4

SECTION 3.0: TRADE ENVIRONMENT ........................................................................................................................... 4

3.1 Import Statistics ....................................................................................................................................... 4

3.2 Import Tariffs & Taxes ........................................................................................................................... 6

3.3 Trade Barriers .......................................................................................................................................... 7

3.6 Trade Agreements ................................................................................................................................... 7

SECTION 4.0: MARKET CHALLENGES .......................................................................................................................... 7

SECTION 5.0: TOP MARKET OPPORTUNITIES & PROSPECTS ........................................................................................ 7

5.1 Aerated Beverages .................................................................................................................................. 2

5.2 Household Cleaners ............................................................................................................................... 2

5.3 Paper Products ........................................................................................................................................ 2

5.4 Pasta .......................................................................................................................................................... 2

5.5 Sauces ....................................................................................................................................................... 3

SECTION 6.0: MARKET ENTRY STRATEGIES ................................................................................................................. 3

6.1 Using an Agent/Distributor ................................................................................................................... 3

6.2 Franchising ............................................................................................................................................... 4

6.3 Selling to the Government ..................................................................................................................... 4

6.4 Establishing an Office ............................................................................................................................. 4

SECTION 7.0: SELLING, MARKETING & PROMOTIONS ................................................................................................. 4

7.1 Selling Factors/Techniques .................................................................................................................... 4

7.2 Trade Promotion ..................................................................................................................................... 5

7.3 Advertising .............................................................................................................................................. 5

7.4 Pricing ....................................................................................................................................................... 6

7.5 Payment Terms ........................................................................................................................................ 7

7.6 Shipping Information ............................................................................................................................. 7

7.7 Due Diligence .......................................................................................................................................... 8

SECTION 8.0: REGULATIONS & STANDARDS................................................................................................................ 8

8.1 Sanitary Product Registration ............................................................................................................... 8

8.2 Product Shipment/Samples ................................................................................................................... 8

8.3 Packaging, Labelling and Marking Requirements ............................................................................. 8

8.4 Customs Regulations .............................................................................................................................. 9

SECTION 9.0: TRADE EVENTS ....................................................................................................................................... 9

SECTION 10.0: FINANCING EXPORTS TO GUATEMALA.............................................................................................. 10

SECTION 11.0: USEFUL CONTACTS ............................................................................................................................ 11

Appendices .......................................................................................................................................................................

Appendix I – Public Translators .........................................................................................................................

FOREWORD

This Market Guide is intended to give Trinidad & Tobago exporters relevant and valuable information for

successfully exporting their goods to Guatemala. The information contained therein is based on a

compilation of exporTT’s visits to the market, in-market consultant information, and desk research which

is cited accordingly. Feel free to contact us at 1.868.623.5507 to discuss your exporting needs.

**********

TRINIDAD AND TOBAGO/GUATEMALA PARTIAL SCOPE TRADE AGREEMENT

Trinidad and Tobago is currently negotiating a Partial Scope Trade Agreement with Guatemala.

Market Guide for Exporting Goods from Trinidad and Tobago to Guatemala Page 1 of 21

SECTION 1.0: MARKET OVERVIEW

1.1 Introduction

Guatemala (Capital: Guatemala City), located in Central America, is currently Central America’s

largest economy with the largest population in the Central American Common Market (CACM).

The 1996 Peace Accords marked the end of a 36-year Civil War which the country has and

continues to successfully recover its economy, society and culture. There has also been a recent

thrust to revitalize and reinforce Maya culture and language in Guatemala that boasts a

significant Maya population. The country is comprised of fourteen (14) Departments; Baja

Verapaz, Chimaltenango, Chiquimula, El Progreso, Guatemala, Huehuetenango,

Quetzaltenango, Retalhuleu, Sacatepequez, San Marcos, Santa Rosa, Solola, Suchitepequez and

Totonicapan.

1.2 Population

(Source: CIA World Factbook, 2014)i

1.3 Demographics

Gentilic: Guatemalan

Ethnic Groups: Mestizo (mixed Amerindian-Spanish - in local Spanish called

Ladino) and European 59.4%, K'iche 9.1%, Kaqchikel 8.4%, Mam

7.9%, Q'eqchi 6.3%, other Mayan 8.6%, indigenous non-Mayan

0.2%, other 0.1% (2001 census)

Religions: Roman Catholic, Evangelical Protestantism

(Source: Encyclopædia Britannica 2013ii and CIA World Factbook, 2014)

1.4 Climate

The climate is tropical, hot and humid in lowlands and cooler in the highlands.

Population: 14,647,083 (July 2014 est.)

Population Growth 1.86% (2014 est.)

Median Age Total: 21 years

Male: 20.4 years

Female: 21.7 years (2014 est.)

Life Expectancy 71.74 years


1.5 Language

The official language is Spanish and there are over 20 Mayan languages that are spoken amongst

the many Maya groups across Guatemala. English is spoken in the business community, but it is

advised that all correspondence, brochures and other forms of information or communication be

translated into Spanish. (Source: Encyclopedia Britannica 2013)

1.6 Hours of Business

Banks: Monday – Friday; 8:30 or 9:00 a.m. to 3:30 p.m.

Government Offices & Businesses: Monday – Friday; 8:00 a.m. to 5:00 p.m. Lunch is from 12:00

noon and 1:00 or 2:00 p.m. which includes the traditional Latin American siesta (rest).

Retail Stores: Monday – Saturday; 9:00 a.m. to 6:00 or 7:00 p.m.

1.7 Public Holidays

1.8 Travel & Transportation

1.8.1 Airline Travel

Main Airport: La Aurora International Airport (GUA), Guatemala City

Distance from the centre of Guatemala City: 6.4km

Approximate driving time: 8 minutes

Individual Entry Requirements

1. Valid Passport (should not be expiring in 6 months)

2. Airline Ticket

Copa Airline (Non-Stop): TT to Panama = Approximately 3 hours, 7 minutes; Panama

to Guatemala = Approximately 7 hours

Month Day Observance

January 1 New Year's Day

April Easter Week (Good Friday, Holy Saturday, Easter Sunday,

Easter Monday)

May 1 Labor Day

June 30 Army Day

August 15 Assumption (Regional Observance Only: Guatemala City)

September 15 Independence Day

October 2 Revolution Day

November 1 All Saint's Day

December Christmas Week


American Airline via Miami (Non-Stop): (US Visa required). TT to Miami =

Approximately 3 hours, 55 minutes; Miami Guatemala = Approximately 8 hours and

50 minutes.

Individual Exit Requirements

1. Valid Passport

2. Airline Ticket

3. Departure Tax = US$30 which is included in the airline ticket price.

1.8.2 Ground Transportation

Guatemala has one of the highest rates of crime in Latin America and therefore the public bus

transportation is unsafe and not recommended. Business travelers should take taxis from the

major hotels or dispatch taxis such as Taxis Amarillos (yellow cabs).

1.9 Time Zones

March – October: Mountain Standard Time

November – March: Central Standard Time

Time Difference: 2 hours behind Trinidad & Tobago

1.10 Currency

The national currency is the Quetzal. The plural is quetzales

Symbol: GTQ

The current exchange rate is 1US$ = 7,883 quetzales

Banknotes are available in Q0.50; Q1, Q5, Q10, Q20, Q50, Q100, Q200.

Coins are available in 1; 5; 10; 25; 50; 100

1.11 Communication

Calls from Trinidad and Tobago to Guatemala = 011 – 502 – 8 digit phone number

Calls from Guatemala to Trinidad and Tobago = 00 – 1 – 868 – 7 digit phone number

SECTION 2.0: ECONOMIC AND POLITICAL ENVIRONMENT

2.1 Economic Performance

Indicator Economic Performance

GDP: $53.80 billion (2013 est.)

GDP per Capita: $3,477.89 (2013 est.)

Growth: 3.7% (2013 est.)

GDP by Sector:

Agriculture: 11.31%

Manufacturing: 20.24%

Industry: 29.01%

Services: 59.68% (2013 est.)


Inflation Rate: 4.3% (2013 est.)

Import Commodities:

Mineral Products, machinery and appliances, products of the

chemical or allied industry, textiles and textile articles, transport

equipment

Import Partners (2013) China, Russia, USA, Switzerland, Norway

(Sources: World Bank 2014iii and EU Trade Directorate 2014iv)

2.2 Business

Guatemala ranked 71 in the 2014 Ease of Doing Business report. They ranked 93rd in 2013. The

main areas of concern are protecting minority investors (174), resolving insolvency (154) and

enforcing contracts (141). (World Bank Group 2014). v

2.3 Labour Force

(Source: CIA World Factbook, 2014)

2.4 Political Stability and Structure

Three powers:

Executive: President and Ministers

Legislative: 158 seats

Judiciary

SECTION 3.0: TRADE ENVIRONMENT

3.1 Import Statistics

TOTAL TRADE

Total Imports ($) $17,503,978,000

Imports of goods and services (% of GDP) 38.75%

Labour Force: 4.465 million (2013 est.)

Note: this official estimate (2013 est.)

Labour Force by

occupation:

Agriculture: 38%

Industry: 14%

Services: 48% (2011 est.)

President Otto Fernando PEREZ MOLINA (since 14 January 2012)

Political Party Patriotic Party

Presidential Elections Held every 4 years


TRADE PARTNERS

# Top 10 Import Partners Import Volume

(USD)

1 United States (USA) 6,510,815,000

2 Mexico (MEX) 1,860,241,000

3 China (CHN) 1,438,540,000

4 El Salvador (SLV) 819,984,000

5 Colombia (COL) 767,948,000

6 Panama (PAN) 584,875,000

7 Costa Rica (COR) 519,813,000

8 Korea (KOR) 404,997,000

9 Honduras (HND) 394,757,000

10 Germany (DEU) 283,628,000

HS Code

(2 digit) Top 10 Import Commodities

Import

Volume

(USD)

27 Mineral fuels, oils , distillation products etc. $3,338,498,000

84 Machinery, nuclear reactors, boilers etc. $1,524,258,000

85 Electrical, electronic equipment $1,422,926,000

87 Vehicles other than railway, tramway $1,014,054,000

39 Plastics and articles thereof $977,072,000

48 Paper and paperboard articles of pulp, paper and board $637,016,000

30 Pharmaceutical products $552,975,000

72 Iron and steel $526,591,000

10 Cereals $411,851,000

52 Cotton $346,885,000


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Exports 542 613 3,129 11,157 1,709 4,649 10,204 13,010 18,599 14,424 27,730 22,759

Imports 7,998 2,154 2,108 64,143 14,602 39,055 20,717 16,695 12,448 12,595 21,108 142,464

Balance -7,456 -1,541 1,021 -52,986 -12,893 -34,406 -10,513 -3,685 6,151 1,829 6,622 -119,705

Total

Trade

8,540 2,767 5,237 73,30

0

16,31

1

43,704 30,92

1

29,705 31,047 27,019 48,838 165,223

Foreign trade with Trinidad & Tobago, 2002-2013 (Millions USD)

(*Preliminary data. Source: ITC Trademap)

3.2 Import Tariffs & Taxes

Tariff duties for exports from Trinidad and Tobago to Guatemala may be accessed here:

http://www.macmap.org/Main.aspx

Mineral fuels, oils, distillation products,

etc31%

Machinery, nuclear reactors, boilers, etc

14%Electrical, electronic

equipment13%

Vehicles other than railway, tramway

10%

Plastics and articles thereof

9%

Paper and paperboard, articles of pulp, paper and

board6%

Pharmaceutical products

5%

Iron and steel5%

Cereals4%

Cotton3%

http://www.macmap.org/Main.aspx


3.3 Trade Barriers

At this time, there are no known constraints for exports from Trinidad and Tobago to Guatemala.

Guatemala is under The World Commerce Act and therefore commerce with any country should

be treated with the Equally Treatment clause.

3.4 Prohibited and Restricted Imports

The Guatemalan Ministry of Defense’s Department for the Control of Arms and Munitions

(DECAM) enforces a law which virtually prohibits the import of offensive weapons, as well as a

range of military weapons and hardware, except for use by the Guatemalan government.

3.6 Trade Agreements

1960: Central America

1998: Central America – Dominican Republic

1999: Central America – Chile

2002: Central America – Panama

2004: Central America/Dominican Republic/United States

2005: Guatemala – Taiwan

2007: Northern Triangle – Colombia

2011: Central America – Mexico

2012: Central America – European Union

2011: Partial Scope Agreement: Guatemala – Ecuador

2006: Partial Scope Agreement: Guatemala – Belize

1985: Partial Scope Agreement: Guatemala – Venezuela

2011: Signed but not in force: Guatemala - Peru

SECTION 4.0: MARKET CHALLENGES

Guatemala is plagued by violent crime and their weak judicial institutions pose serious challenges

for Trinidad and Tobago exporters. Other challenges include corruption, impunity, labor rights,

protection of intellectual property, food security, education and deep socio-economic divisions.

(Source: Doing Business in Guatemala (Export.gov)) vi

SECTION 5.0: TOP MARKET OPPORTUNITIES & PROSPECTS

Market opportunities in Guatemala may vary based on the type of product and the level of

competition in that particular market. The markets researched include;

Aerated Beverages

Household Cleaners

Paper Products

Pasta

Sauces


5.1 Aerated Beverages

The market for aerated beverages is very competitive in Guatemala. The multi-national brands

are the undisputed market leaders with other local brands carving out a small portion of the

market due to cheaper prices and variety of flavours.

Trinidad and Tobago products would have a very difficult task in penetrating the market. If the

local manufacturers are able to offer a competitive price, they would be able to find success. An

additional challenge would be shipping rates due to the liquid weights. While the bottles present

an alternative package to what is being offered in the market, the cost of shipping would be

prohibitive.

5.2 Household Cleaners

The population size of Guatemala is approximately 14 million which is considered to be a large

market. The value of imports of household cleaners has been increasing over the last 5 years.

There is high competition in retail of household cleaners in Guatemala because of the existence

of strong local traditional brands. Trinidad and Tobago’s manufacturers should improve

branding and pricing (key) to obtain a space in the market.

5.3 Paper Products

The market for paper products is very competitive in Guatemala due the robust presence of

Kimberly Clark. In addition, other small local brands as well as imports from Mexico make the

market very difficult to penetrate, especially for a firm outside of the region. Buyers expressed

interest in introducing new brands into the market, but the price would be the significant factor.

Factors such as delivery times and costs may compound the issue.

Away From Home products appear to be less competitive and appear to have opportunity in the

market. However, local firms would need to look carefully at their pricing and promotion

strategies as well as carefully plan their logistical arrangements, if they are to take advantage of

market opportunities.

5.4 Pasta

With the high level of domestic production and the steady increase of the Guatemalan Trade

Balance over the last five years, the pasta market doesn’t offer many sales opportunities for

exporters from Trinidad and Tobago, especially given the penetration of the local producers in

the low income and middle market segments.

Owing to the fact that Trinidad and Tobago is negotiating a partial scope agreement with

Guatemala and the high quality of the Trinidad and Tobago product, companies may be able (in

the future) to compete with principal players who currently have “zero” tariffs on their imports.

However, interests were expressed in the market for private label and companies can pursue this

option.


Overall, companies that have the financial wherewithal can pursue the market as the population

is growing and innovation is not very common among pasta brands in Guatemala.

5.5 Sauces

Imports have been increasing which indicates some level of acceptance of foreign products. A

market research team observed that pepper sauce was not common on the supermarket shelves

as well as not being readily available at restaurants and hotels.

Ketchup, mustard and mayonnaise were the more popular condiments. These products attracted

attention in the market however, most distributors admitted that new brands of ketchup and

mayonnaise will be difficult to sell in the market mainly due to the market’s preference to

traditional brands e.g. Kern’s, Heinz, Anabelly (Ketchup), Regia, McCormick & Hellmann’s

(Mustard), Hellmann’s, McCormick, Regia (Mayonnaise.)

The distributors also indicated that the Trinidadian products were aesthetically pleasing,

however, for the products to be competitive in the Guatemalan market, manufacturers should

improve branding and pricing (key) to obtain any space in the market.

Suppliers to the food service industry were very interested in the small sachets of ketchup,

mustard and pepper sauce (used in fast food outlets) as there is widespread demand in

Guatemala and the products are not currently being produced there.

(Source: ITC Trademap 2012)

SECTION 6.0: MARKET ENTRY STRATEGIES

6.1 Using an Agent/Distributor

Choosing an appropriate agent or distributor requires careful attention. Trinidad and Tobago

exporters should consider an agent/distributor who has a good track record and reputation, who

has good product and industry knowledge and who is committed and enthusiastic about the job.

As such, someone who is able to communicate in English should not be the deciding factor.

Please note that most agents/distributors normally request product exclusivity, however, this

should be considered carefully. The new trend is negotiating a non-exclusive agreement with

well-defined, renewable periods of representation.

Additionally, it is recommended that exporters take the lead with the assistance of a Guatemalan

attorney to register intellectual property including trademarks and trade names, and for all other

trade arrangements as well.


6.2 Franchising

Franchising has become popular in Central America, with Guatemala coming second to Costa

Rica for franchises operating in the country. Franchising is guided by the Guatemalan

Commercial Code which regulates five types of franchisors; corporations, limited liability

companies, general partnerships, limited partnerships and special limited partnerships. Foreign

based corporations much provide the following documentation if interested in establishing

permanent operations in Guatemala, but limited to:

1. Proof of existence under laws of country of origin;

2. Certified copy of articles of incorporation (with amendments where available);

3. Purpose of competent authority;

4. Name of representative in Guatemala their qualifications and responsibilities as it relates

to the corporation;

For reading on the additional requirements for franchising in Guatemala, please visit the International

Franchising Association at the following link:

http://www.franchise.org/uploadedFiles/F2015%20Guatemala.pdfvii

6.3 Selling to the Government

In some cases, it is a requirement for a local agent/distributor to be used for sales to the

government. The complete public bidding process can be accessed at www.guatecompras.gob.gt

- Concursos Publicados.

6.4 Establishing an Office

The laws for establishing an office is also outlined in Guatemalan Commercial Code detailed and

referenced in Section 6.2.

SECTION 7.0: SELLING, MARKETING & PROMOTIONS

Doing business in Guatemala as in other Latin American countries depends heavily on personal

relationships. The Guatemalan business community places great importance on personal

contacts with foreign suppliers. New exporters should be prepared to travel to Guatemala

periodically and follow up with customers regularly via telephone, Skype, email and fax. A

patient sales approach is preferred over a “hard sell”.

7.1 Selling Factors/Techniques

Selling factors and techniques are described in the following five steps to master the selling

process.

Steps Description

1. Greeting You need to ‘arrest’ the buyer:

Pay attention to dress, hygiene, grooming, handshake, etc.

http://www.guatecompras.gob.gt/


7.2 Trade Promotion

Locally, exporTT Limited offers trade promotion programmes periodically, including trade

missions, trade shows, trade fairs, matchmaking events, conferences, etc. These programmes are

conducted with a pre-approved budget and with an element of exporTT’s “co-financing” service

for selected exporter’s activities.

7.3 Advertising

Advertising is carried out through the national and regional newspapers by the distributors at

the retail level.

Treat the buyer’s business card with respect and present your

business card in a professional manner.

Speak clearly, paying attention to voice, tone, eye contact, etc.

Use correct titles and surnames.

Have a positive body language.

2. Ask questions to

understand the

prospect

Don’t ask direct questions but ask leading questions in a

conversation type manner to find out the buyer’s need and what

he/she is looking for.

3. Present Benefits Present the benefits of your product/s or service/s in a manner

that aligns them to the need of the buyer.

4. Handle Objections

If the buyer is not interested in your product/s or service/s, don’t

end the meeting in despair, remain calm. Instead, take the

opportunity to find out more about the market and their needs so

that you can possibly make adjustments to your product to suit

their needs.

5. Close

It is very important to know and agree on the next steps which

should include a thank you email which captures the essence of

the conversation and the activities that would follow.

Other Tips

Be prepared

Know your business and your products

Be confident

Be a persuasive negotiator

Confirm appointments at least 24 hours in advance and be on

time.

Prepare your marketing tools e.g. brochures, samples,

PowerPoint presentations, etc. and make them come alive

with images.

Take notes and bring a notetaker.

When using an interpreter, do not speak directly to the

interpreter as if the buyer is absent, however keep the

conversation focused on the buyer and allow the interpreter

to interpret accordingly.


The accepted norm amongst distributors is that manufacturers/exporters share the cost of

advertising and promotion (at a percentage to be negotiated) and in instances where they have

the exclusive sales rights. When they are not given the exclusive rights, they would expect the

exporter to assume or accept the majority, if not the full cost of promotion. In situations where

private labelling is utilised, the distributor in most situations would bear the full cost of

promotion.

When companies engage in advertising efforts, they usually invest in mass media campaigns as

well as in below-the-line media. Companies target adult women, especially mothers, as is the case

for many packaged foods products. In-store promotional activities usually comprise of giveaways

(e.g. product samples). The use of recipe books to give as free promotional materials is also

common for many brands. Additionally, companies use strategies to reach new consumers. For

example, Malher SA sends newlyweds a basket with free products, so that these customers are

aware of the assortment that is available and may go on to choose Malher products when they

shop.

This type of ‘pull-out promotion’ helps the retailer promote the product and ensure that the

customer looks at the product. Therefore, this promotion should be appealing and give the

customer the feeling that they gained something without doing any extra work such as typing or

filling in a document. Additionally, the value of the item that goes together with the product

should be of a certain value, if not the customer may deny their preference for that product.

In contrast, the ‘push-in promotion’ helps the exporter to sell to the channel of trade (dedicated

to the sellers of the Distribution chain). It could be something like a dinner for two every time a

target has been reached.

7.4 Pricing

Prices of products imported into Guatemala are typically based on:

Cost of Product

Transport and Insurance

CIF Price

Import Tax

VAT 12%

Landed Price

Cost to distribute

Cost of promotion

Margin Importer

Margin Retailer

Products must be price competitive. Guatemalans are very price conscious and savvy shoppers.


7.5 Payment Terms

It is advised that exporters utilise cash in advance or an irrevocable letter of credit as it is the most

secure means of payment. Financing for imports are usual done on 60 days (not limited to) lines

of credit which is normally an arrangement between the exporter and importer. exporTT advises

all exporters to enlist the services of a lawyer and a licensed customs broker for this process as

the pursuit of claims in Guatemala for lack of payment is costly and time consuming.

(Source: Doing Business in Guatemala: 2011 Country Commercial Guide for U.S. Companies)viii

7.6 Shipping Information

Guatemala has various communication and transport possibilities, and also has the possibility to

make partial imports of goods. This allows the exporter to deliver the goods at a warehouse and

pay import tax only for the goods being released from the warehouse to the market; thereby

allowing the importer to pay taxes not for the whole quantity of goods that have been imported.

Shipping Routes

1. T&T - Jamaica - Guatemala

2. T&T - Miami - Guatemala

Shipping Documents

1. Bill of lading

2. Commercial invoice

3. Customs import declaration

4. Packing list

5. Terminal handling receipts.

6. Certificate of origin (where applicable)

Average Shipping Costs

From the port of Point Lisas to Santo Tomas de Castilla:

20ft container: US$1,900.00 inclusive of documentation handling

40ft container: US$2,150.00 inclusive of documentation handling

The above rates are for foodstuff and non-hazardous chemicals. It also takes approximately 12

days to arrive from the date of shipment.

(Source: Linescape.com & JOCSailings.com)

Shipments within Central America are usually made by road due to the close proximity of the

other Central American countries namely El Salvador. It is important to note that ground freight

of liquid material is very expensive, more than dry goods as the insurance and handling costs are

significantly higher.


7.7 Due Diligence

Performing due diligence in Guatemala can be time-consuming and difficult, however, before

finalizing any contract whether for sale or representation, Trinidad & Tobago’s exporters should

obtain information about the foreign firms including reliable business and financial references.

Also, the because of the language difference between Trinidad & Tobago and Guatemala, this

presents opportunities for serious miscommunication and misunderstandings which may

sometimes have grave consequences. Therefore, when entering into business with Guatemalan

companies, it is imperative to utilize the services of a competent bi-lingual attorney to avoid

communication failures.

SECTION 8.0: REGULATIONS & STANDARDS

8.1 Sanitary Product Registration

The Ministry of Health is the main authority for product registration of food products legally

imported or manufactured in Guatemala. Therefore, producers, processors, packers, and/or

distributors must have a sanitary license.

8.2 Product Shipment/Samples

For registration purposes, the sample must come with the following documentation:

Certificate of Free Sales

Bill of Lading,

Invoice (with any negligible quantity) specifying it is only a sample

8.3 Packaging, Labelling and Marking Requirements

There are very specific requirements related to standards for labels in Guatemala. They include

the following:

Labels must be written in Spanish

Description of the product

Name of the product, it should be an official name (research must be done on names

and spelling as Macarón in Guatemala doesn’t mean macaroni)

Main Characteristics of the product including the ingredients

Net Volume/weight

List of the ingredients or additives with the % level of each one

Name, address, and phone of the distributor in Guatemala

Registration number at the CONTROL de ALIMENTOS ( Control of Food ) DGSS-

DRCA Licence obtained to be allowed to sale in to the market

Expiry date

Storage temperature e.g. refrigerate if needed

Direction on how to prepare if needed


Products like Pasta are usually presented in plastic or cartons. These presentations are very

vibrant as the consumers have a preference for brightly coloured packaging.

There have not been any significant packaging innovations. Most economy and standard brands

use simple flexible packaging, while most premium options use folding cartons. The launch of

Lucciola by Industria Nacional Alimenticia was in line with this common precept, and its

packaging is a very well finished black and golden folding carton box.

Generally, all packaging must be designed for the preservation of the food and safety of chemical

items.

Regulations and registration procedures and requirements can be consulted on-line at:

http://portal.mspas.gob.gt/indice_de_alimentos.html

8.4 Customs Regulations

The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for

approving all exports emanating from Trinidad and Tobago.

To export commercial goods, the exporter is required to have a customs broker fill out the

required documentation. Commercial and non-commercial exporters must also perform the

following actions:

Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your

broker;

Submit the C82 Form along with other required documents (see below) to a customs officer

at a Customs and Excise office for signature;

Take the signed C82 Form and the goods to be exported to the Import/Export station from

which the goods are to be exported.

The basic documents required for exporting are as follows:

Invoice showing the price paid locally

Export licence (where applicable)

Certificate of origin (where applicable)

Please contact the Customs and Excise Division for further information. See Section 11.0.

SECTION 9.0: TRADE EVENTS

Event Cycle Next Date

FERRETEXPO: Hardware & Construction Materials

Show Once a year November 2014

APPAREL EXPO: Apparel Industry Show Once a year May 2015

FERIA ALIMENTARIA: Food and Restaurant Expo Once a year September 2015

http://portal.mspas.gob.gt/indice_de_alimentos.html

http://www.eventseye.com/fairs/f-ferretexpo-18097-1.html

http://www.eventseye.com/fairs/f-apparel-expo-18098-1.html

http://www.eventseye.com/fairs/f-feria-alimentaria-18096-1.html


SECTION 10.0: FINANCING EXPORTS TO GUATEMALA

exporTT Limited provides a Co-financing Service through which an exporter can be reimbursed

(50% reimbursement) for the following market access activities:

a. Product Registration

b. Trademark Registration

c. Product Testing

d. Translation & Interpretation Services

e. Legal representation for product, brand and trademark registration

f. Booth rental at trade shows

g. Business to business matchmaking services

h. Shipping of samples

i. In-store marketing and promotions

j. Booth design at trade shows

k. Ground transportation for exporTT led groups at trade missions and trade shows

l. Brand registration

m. Label modification

n. Registration at international capacity building forum/workshop

Please contact the following person or any other exporTT representative for more information on

these services:

Mr. Crisen Maharaj

Manager- Capacity Building and Programme Financing

exporTT Limited

151B Charlotte Street

Port of Spain

Tel.: (868) 623-5507 Ext. 362

Fax: (868) 625-8126

Mobile: (868) 796-4276

Email: [email protected]

Website: www.exportt.co.tt

In addition to local banks, to obtain information on financing exports to Guatemala, please

contact:

Mr. Shaun Waldron

Manager, Credit & Business Development

Export Import Bank of Trinidad & Tobago Limited

#30 Queen's Park West,

Port of Spain

Phone: 1-(868)-628-2762 Ext. 288

Fax: 1-(868) -628-9370


Website: www.eximbanktt.com

mailto:[email protected]

http://www.exportt.co.tt/


http://www.eximbanktt.com/


SECTION 11.0: USEFUL CONTACTS

11.1 Trinidad and Tobago

Office Contact Information

exporTT Limited

Shirley Ann Noel (Ms.)

Senior Export Development and

Promotion Officer

exporTT Limited

151 B Charlotte Street

Port of Spain, Trinidad

Phone: 1-868-623-5507 Ext. 356

Fax: 1-868-625-8126

Mobile: 1-868-620-9091


Website: www.exportt.co.tt

Embassy of the Republic

of Guatemala

Embassy of the Republic of Guatemala

Apt. 701, Regents Towers

Westmoorings By The Sea

Westmoorings

Phone: 1-868-632-7629

Fax: 1-868-632-7629


Customs and Excise

Division

Customs and Excise Division

Ministry of Finance

Custom House

Nicholas Court

Cor. Abercromby Street and Independence Square

Port of Spain

Phone: (868) 625-3311-9 Ext 335-8


Web: www.customs.gov.tt

Shipping Agencies

Shipping Association of Trinidad & Tobago

15 Scott Bushe Street, Port of Spain

Phone: (868)625-2388, (868)623-3355

Fax: (868)623-8570


Web: http://shipping.co.tt/member%20search.php?id=1&page=1


http://www.foreign.gov.tt/representatives/foreign/missions_in_tt/



http://www.customs.gov.tt/


http://shipping.co.tt/member%20search.php?id=1&page=1


Translation Services

Commercial documents provided by the exporters or their

representatives are often required in Spanish or, at the very least,

must be accompanied by an official Spanish translation. A list of

official translation and interpreting agencies in Trinidad and Tobago

can be found in Appendix I.

11.2 Guatemala

Office Contact Information

Guatemalan Chamber of

Commerce

Camara de Comercio de Guatemala

E-mail:

[email protected],[email protected]

Web page: http://www.negociosenguatemala.com/

Chamber of Industry

Cámara de Industria de Guatemala

E-mail: [email protected]

Web page: www.industriaguate.com

AMCHAM Guatemala

American Chamber of Commerce of Guatemala (AMCHAM)


Web page: www.amchamguate.com

Guatemalan Franchise

Association

Asociación Guatemalteca de Franquicias –AGF


Website: www.guatefranquicias.com

Business Registration

Office

Registro Mercantil de Guatemala

Address: 7a. Avenida 7-51, Zona 4, 01004 Guatemala

Ph.: [502] 2332-7685

Fax: [502] 2334-1754

Contact: Arturo Herrador Sandoval, Registrador


Website: www.registromercantil.gob.gt

Guatemalan Association

of Advertising Agencies

Union Guatemalteca de Agencias de Publicidad - UGAP

Contact: Pauline Crespo K., Executive Director

E-mail: [email protected] ; [email protected]

Web page: www.ugap.com

Major Newspapers

Prensa Libre


Web page: www.prensalibre.com

Siglo Veintiuno


Web page: www.sigloxxi.com

Nuestro Diario

mailto:[email protected],[email protected]

http://www.negociosenguatemala.com/


http://www.industriaguate.com/


http://www.amchamguate.com/


http://www.guatefranquicias.com/


http://www.registromercantil.gob.gt/



http://www.ugap.com/


http://www.prensalibre.com/


http://www.sigloxxi.com/


Contact: Jorge Springmuhl, General Manager

E-mail [email protected]

Web page: www.nuestrodiario.com

El Periódico


Web page: www.elperiodico.com.gt

La Hora

E-mail [email protected]

Web page: www.lahora.com.gt

Professional Services

Including lawyers, auditors, consultants, custom brokers,

financial, etc. see

http://www.buyusa.gov/guatemala/en/guatemalanserviceprovide

rs.html

http://www.nuestrodiario.com/


http://www.elperiodico.com.gt/


http://www.lahora.com.gt/

http://www.buyusa.gov/guatemala/en/guatemalanserviceproviders.html

http://www.buyusa.gov/guatemala/en/guatemalanserviceproviders.html

Appendices

Appendix I – Public Translators

(Approved by the Ministry of Foreign Affairs, Trinidad & Tobago)

1) Mr. Kelvin Hoskins

#3 O’Connor Street, off Dickson Avenue, Diego Martin

Tel: 352-2238/632-8286

2) Ms. Doris Millan

#42 Saddle Road, Maraval Spanish

Tel: 753-0643/628-8414

3) Mr. Jaime Graells

#28 Old Paddock Road, Blue Range, Diego Martin

Tel: 759-5218/637-7140

4) Mr. Luis Arreaza

# 38 Carlos Street, Woodbrook Spanish, French

Tel: 764-8683

5) Mr. Chantale Leonard-St. Clair

Director (Ag.)

Translation & Interpreting Services Unit

College of Science Technology and Applied Arts

of Trinidad and Tobago (COSTAAT)

Tel: (868) 625 5030 Ext. 5270

Fax: (868) 627 5714

E-mail: [email protected]; [email protected]

6) Mr. David Coutisson

Director

THE ALLIANCE FRANÇAISE French

# 17 Alcazar Street, Port of Spain

Tel: 622-6119/6728

7) Eric Maitrejean

CITB Coordinator

Caribbean Interpretation & Translation Bureau

University of the West Indies Spanish, French, Arabic

St. Augustine Campus, St. Augustine

Tel: 662-0758


Spanish, French, Portuguese, Dutch, German




WORKS CITED

i The Central Intelligence Agency (CIA) Factbook. (2014). Guatemala. Retrieved from

https://www.cia.gov/library/publications/the-world-factbook/geos/vc.html ii Encyclopædia Britannica. (2013). Guatemala. Retrieved from

http://www.britannica.com/EBchecked/topic/701217/Guatemala iii The World Bank. (2014). Guatemala. Retrieved from

http://data.worldbank.org/country/guatemala

iv The European Union (EU) Trade Directorate. (2014). European Union, Trade in goods

with Guatemala. Retrieved from

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113384.pdf v The World Bank Group. (2014). Ease of Doing Business in Guatemala. Retrieved from

http://www.doingbusiness.org/data/exploreeconomies/guatemala/ vi Export.gov. (2013) Doing Business In Guatemala. Retrieved from

http://www.export.gov/guatemala/doingbusinessinguatemala/index.asp vii Zeidman, Philip F. (2015). Franchise in 29 Jurisdictions Worldwide. Law Business

Research Ltd: Lancaster UK. Retrieved from

http://www.franchise.org/uploadedFiles/F2015%20Guatemala.pdf

viii Doing Business in Guatemala: (2014). Country Commercial Guide for U.S. Companies.

Retrieved from http://www.buyusainfo.net/docs/x_6473855.pdf

-000-

https://www.cia.gov/library/publications/the-world-factbook/geos/vc.html

http://data.worldbank.org/country/guatemala

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113384.pdf

http://www.franchise.org/uploadedFiles/F2015%20Guatemala.pdf