Doing Business with Belize

DOING BUSINESS WITH
BELIZE

May 2007

Caribbean Export Development Agency (Caribbean Export)
P. O. Box 34B, Brittons Hill
St. Michael
Barbados
Tel: (246) 436-0578
Fax: (246) 436-9999
E-mail: info@carib-export.com
Website: www.carib-export.com

DOING BUSINESS WITH BELIZE


TABLE OF CONTENTS

1. GENERAL INFORMATION..................................................................................... 3
2. THE ECONOMY........................................................................................................ 5
2.1 Structure of the Economy ................................................................................... 5
2.2 Recent Economic Performance........................................................................... 5
2.3 Balance of payments ........................................................................................... 5
2.4 Overview of Trade .............................................................................................. 5
2.5 Belize Trade with CARICOM ............................................................................ 6
3. GENERAL MARKETING FACTORS...................................................................... 7
3.1 Distribution and Sales Channels ......................................................................... 7
3.2 Use of Agents/Distributors ................................................................................. 7
3.3 Franchising.......................................................................................................... 7
3.4 Promotion............................................................................................................ 7
3.5 Transportation ..................................................................................................... 7
4. MARKET ACCESS CONDITIONS .......................................................................... 9
4.1 Customs Tariffs................................................................................................... 9
4.2 Free Trade Agreements..................................................................................... 10
4.3 Non-Tariff Barriers ........................................................................................... 10
4.4 Import Documentation ..................................................................................... 10
4.5 Labelling and Marking Requirements .............................................................. 11
4.6 Sanitary and Phytosanitary (SPS) Measures..................................................... 11
4.7 Prohibited and Restricted Imports .................................................................... 13
4.8 Standards........................................................................................................... 13
4.9 Product Certification......................................................................................... 13
5. INVESTMENT PROFILE........................................................................................ 14
5.1 Investment Incentives Schemes ........................................................................ 14
5.2 Foreign Investment Regime.............................................................................. 14
5.3 Free Trade Zones .............................................................................................. 15
6.1 Right to Private Ownership............................................................................... 17
6.2 Establishing an Office....................................................................................... 17
6.3 Work Permit Requirements............................................................................... 18
6.4 Intellectual Property Rights .............................................................................. 18
6.5 Conversion and Transfer Policies ..................................................................... 19
7. CULTURAL PRACTICES....................................................................................... 20
7.1 Business Customs ............................................................................................. 20
7.2 Entry/Exit Requirements:.................................................................................. 20

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the north to 200 inches in the south
1. GENERAL annually.
INFORMATION

Official Name: Belize Principal Cities and Population:
(2005 est.)
Capital: Belmopan Belize City 60,800
San Ignacio 16,800
Area: 22,966 sq. km Orange Walk 15,300
Belmopan 13,500
Population: 294,385 (July 2007 est.) Dangriga 10,800

Population growth index: Airports:
3.4% (2006 est.) As of 2005, an estimated 43 airports and
airstrips were in operation. The
Population density: international airport is Philip S. W.
12.82 inhabitants per square kilometer Goldson International Airport in
Ladyville, outside of Belize City.
Official language: English, the Currently, the international airport is
official language, is spoken by virtually served by American, Continental, Delta,
all except the refugees who arrived TACA and US Air, along with local
during the past decade. Spanish is the airlines Maya Island and Tropic. A
native tongue of about 50 percent of the runway expansion program set to be
people and is spoken as a second completed in 2007 may allow larger
language by another 20 percent. The aircraft to land and may encourage new
various Mayan groups still speak their direct or nonstop service from Europe
indigenous languages, and an English and Canada. Also in Belize City is the
Creole dialect similar to the Creole Municipal Airport, on the seafront off
dialects of the English-speaking Princess Margaret Drive. In addition, a
Caribbean Islands is spoken by most. number of local airports and airstrips
provide for flights within Belize. Flights
Currency: Dollar (BZD) are readily available with destination
including Belize City, Corozal,
Exchange rate: Since 1976 Dangriga, Placencia, Sarteneja,
Belizean banks have bought U.S. dollars Savannah and Punta Gorda on the
at the rate of 2.0175 and sold them at mainland. Ambergris Caye and Caye
1.9825, making for an effective fixed Caulker, two small islands off Belize's
rate of Belize $2=U.S. $1 coast, can also be reached by plane.
Local flights are relatively inexpensive,
beginning at about $30 (US). Fares for
Climate: Subtropical; very hot and domestic flights from the municipal
humid; rainy season (May to
November); dry season (February to
May). Rainfall ranges from 60 inches in

3


airport generally are lower than from the coming from well-known ‘high-risk’
international airport.1 areas (parts of South America and
Africa) are required to get the Yellow
Ports: Fever vaccination before entering the
• Belize City country. Visitors may at their discretion
• Big Creek take precaution by receiving medication
• Corozal Town before leaving for their trip.
• Punta Gorda

Holidays:
New Year’s Day Jan 01
Baron Bliss Day Mar 12
Good Friday Apr 06
Holy Saturday Apr 07
Easter Monday Apr 09
Labour Day May 01
Sovereign’s Day May 21
National Day Sep 10
Independence Day Sep 21
Pan American Day Oct15
Garifuna Settlement Day Nov 19
Christmas Day Dec 25
Boxing Day Dec 26

Life Expectancy: Total Population -
67.4 years

Literacy Rate: Total Population -
76.5%

Local Time: UTC-6 (1 hour behind
Washington, DC during Standard Time).
Daylight Saving Time is not observed in
Belize.

Telephone Codes: 501

Health: Belize considers public
health a high priority. Belize has public
hospitals in every major town and a host
of private doctors countrywide. Though
not endemic to Belize, visitors who are

1

http://en.wikipedia.org/wiki/Transport_in_Belize

4


2. THE ECONOMY Unemployment rate:
9.4% (2006)3
2.1 Structure of the Economy
2.3 Balance of payments
In this small, essentially private-
enterprise economy tourism is the While bilateral financing, better-than-
number one foreign exchange earner expected exports, and foreign direct
followed by exports of marine products, investment are helping to close the
citrus, cane sugar, bananas, and foreign financing gap for the current
garments. The government’s year, international reserves remain very
expansionary monetary and fiscal low at less than one month of imports.
policies, initiated in September 1998, led Under current policies, the mission
to sturdy GDP growth averaging nearly estimates on a preliminary basis that in
four percent in 1999-2006. Major 2007 Belize’s net balance of payments
concerns continue to be the sizable trade financing needs will reach about 10
deficit and unsustainable foreign debt. percent of GDP, and remain high
The government in 2006 announced it thereafter at about six percent of GDP
would seek a restructuring of its during 2008-11 and more than 10
sovereign debt and has been negotiating percent during 2012-15. Foreign
with international creditors to find an financing of this magnitude may not be
acceptable formula for doing so. A key forthcoming, given Belize’s high
short-term objective remains the external public debt burden; and, even if
reduction of poverty with the help of it could be obtained, its high cost would
international donors.2 worsen the debt dynamics and leave the
economy vulnerable to adverse shocks.
2.2 Recent Economic Performance At the same time, fully closing such
large financing gaps through further
Belize’s economic performance is highly fiscal and monetary tightening would not
susceptible to external market changes. be feasible without severely disrupting
Although the economy recorded a economic activity.4
growth rate of 4.0 percent in 2006, this
achievement is vulnerable to world 2.4 Overview of Trade
commodity price fluctuations and
continuation of preferential trading Belize continues to rely heavily on
agreements, especially with the United foreign trade, with the United States as
States and the European Union (cane its number-one trading partner. Imports
sugar) and the United Kingdom in 2005 totaled $518.83 million, while
(bananas). total exports were only $212.83 million.

3
GDP - real growth rate: 4.0% (2006)
GDP - per capita (PPP): $8,400 (2006) https://www.cia.gov/library/publications/the-
world-factbook/geos/bh.html
2 4

https://www.cia.gov/library/publications/the- http://www.imf.org/external/np/ms/2006/082906
world-factbook/geos/bh.html .htm

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In 2005, the United States provided 39 (orange, grapefruit, and pineapple),
percent of all Belizean imports and sugar cane, animal feeds and toilet
accounted for 52.2 percent of Belize’s paper. The top imports included chicken
total exports. Other major trading sausages, malt extract, rum and tafia,
partners include the United Kingdom, paints, insecticides, plywood, baby
European Union, Canada, Mexico, and napkins, aluminium doors, plastic
Caribbean Common Market insulated copper conductors, printed
5
(CARICOM) member states. paper and paper boards and personal and
household effects.
2.4.1 Exports

Exports (2005)--US$212.83 million:
cane sugar, clothing, citrus concentrate,
lobster, fish, banana, and farmed shrimp.
Major markets--U.S. (52.2%), U.K.,
CARICOM

2.4.2 Imports

Traditionally, Belize has been a
consumer nation, relying heavily on
imports.

Imports (2005)--US$518.83 million:
food, consumer goods, machinery,
mineral fuels and lubricants. Major
suppliers--U.S. (39%), Mexico, U.K 6

2.5 Belize’s Trade with CARICOM

In 2006, Belize’s imports were in excess
of EC$36 million while exports to
CARICOM were EC$62 million leading
to a trade surplus of EC$26 million.

Belize’s top exports to CARICOM in
2006 included; shrimp, prawns, lobster,
blackeye peas, red kidney beans, juices

5

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

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

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3. GENERAL including Best Western in the hospitality
MARKETING FACTORS industry, Coca-Cola and Pepsi in the soft
drink industry, Mail Boxes Etc. in the
3.1 Distribution and Sales Channels postal service, and Avis, Budget, Hertz
and National in the auto rental business.
8
A typical distribution channel for an
American-made product involves (1) the
local importer, who is generally also the 3.4 Promotion
wholesaler and the distributor, (2) the
retailer, and finally (3) the Belize enacted electronic transactions
buyer/consumer. legislation in 2003, which allows
businesspeople to employ e-commerce
Goods imported from North America, to conduct across-the-border
the Caribbean and Europe enter the transactions.
country through the port in Belize City,
while those imported from neighboring Advertising in Belize is done mainly
Central American countries enter Belize through radio, newspapers, magazines,
through the two main inland borders. and television, and billboards.

3.2 Use of Agents/Distributors 3.5 Transportation

Consistent with U.S. Department of Ports in Belize City, Dangriga, and Big
Commerce guidelines, the Economic and Creek handle regularly scheduled
Commercial section of the United States shipping from the United States and the
Embassy in Belize can assist interested United Kingdom, although draft is
American companies find agents and limited to a maximum of 10 feet in
distributors in the country through the Belize City and 15 feet in southern ports.
International Partner Search (IPS) American Airlines, Continental Airlines,
service7 U.S. Air, Delta Airlines, and TACA
provide international air service to
3.3 Franchising gateways in Dallas, Houston, Miami,
Charlotte, Atlanta, and San Salvador. 9
Although many Belizeans are familiar
with most popular U.S. brand names, Belize has four major asphalt-paved
franchising remains rare, since two-lane roads: the Hummingbird
competition in the local market is more Highway, Southern Highway, Western
often based on price than name Highway, Northern Highway. The
recognition or perceived quality remaining roads are unpaved, rough and
standards. in poor condition. A 9-mile stretch of the
Southern Highway near Big Falls is
Franchising in Belize currently extends
to just a few well-known brand names, 8
Doing Business in Belize: A Country
Commercial Guide for U.S. Companies, 2006.
9
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unpaved as well. Driving is on the right-
hand side of the road, as in the United
States.

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4. MARKET ACCESS
CONDITIONS The rate of duty applicable to Motor
Vehicles is according to the engine
4.1 Customs Tariffs capacity in Motor Cars; according to the
weight for Pickup and Trucks, and
Custom Duties are applicable according according to the seating capacity in Vans
to the rates set out in the Customs Tariff and Busses for Public Transport.
and Trade Classification, Chapter 48
Laws of Belize, First Schedule. The Imports from CARICOM Countries are
Belize Customs Tariff is modeled from exempted from the payment of import
the Harmonized Description and Coding duty provided the importer produces a
System (HS). Certificate of Origin from the country
within the Common Market certifying
The rates are applied based on the that the goods were produced within the
Customs Value (Cost, Insurance, region of the common market. Some
Freight). Applicable rates range from 0 commodities imported from CARICOM
to 45 percent with the majority of pay Revenue Replacement Duty (RRD).
commodities attracting a rate of 20 There are restrictions for certain
percent. commodities imported from CARICOM
that require an Import License from
Goods in Primary Forms, Machinery and Ministry of Trade prior to importation. 10
Parts, Raw Materials, Textile Fabric,
Chemicals, Office Equipment (except There are some items that attract a
Computers and Accessories – 0 percent) Revenue Replacement Duty (RRD)
Hand Tools, attract rates of 0 or 5 ranging from 5 to 40 percent based on
percent based on the customs value. the aggregate of the Customs Value and
the Import Duties.
Customs duties and taxes are collected
based on the value which is derived from Sales Tax is charged at a rate of 9
the value stated on the invoice, receipt or percent based on the aggregate of the
other proof of purchase. The dollar value customs value and any other relative
must be converted from the foreign duty (Import Duty and RRD if
currency stated on the proof of purchase applicable) and 14 percent on Alcoholic
document to Belize (BZCY) currency. Beverages (including Beer), Petroleum,
The Belize currency is tied to the US Tobacco and Tobacco Products, large
dollar at $2.0175 BZCY to $1.00USD. fans, Air Conditioners, Yachts,
Other foreign currency rates are subject Jewellery, Perfumery, Cosmetics,
to change and are updated weekly in Vehicles over four cylinders, Stoves and
conjunction with the Central Bank of refrigerators over 15 Cu. ft.. Some
Belize. commodities are exempted from the
payment of sales tax at the time of
An exchange rate for the conversion of importation.
foreign currency to BZD is published
weekly for the convenience of importers
10
and customs brokers. http://www.customs.gov.bz/duty.html

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4.2 Free Trade Agreements 4.3 Non-Tariff Barriers

Belize has double tax treaties with the
United Kingdom, Sweden, Denmark and The importation of some live animals,
the countries of the Caribbean foodstuff, plant and plant materials, and
Community (CARICOM). veterinary vaccines requires an import
permit from the Ministry of Agriculture
In October, 2003, the Prime Minister of and is subjected to inspection at the time
Belize, Said Musa announced a five year of importation by Quarantine Inspectors.
economic cooperation agreement with Import permits are required for certain
Taiwan that will help develop and foodstuffs, live animals, plant and plant
finance basic public services within the materials, and veterinary vaccines from
Central American jurisdiction. the Belize Agricultural Health Authority
(BAHA) (http://www.baha.bz/) and the
In June 2005, Belize and Guatemala Ministry of Commerce and Industry.
extended talks on a possible Partial
Scope Trade Agreement (PSA). BAHA also requires phyto-sanitary and
Proposals on market access were cited as zoo-sanitary certificates, health risk
the primary reason for the decision to analysis documentation, and certificates
convene a fourth round of talks. These of origin.
negotiations included the lowering
existing tariff and non-tariff barriers, a Importers are required to submit also all
move intended to enhance bilateral trade. original commercial invoices to the
Provisions for the removal of non-tariff Customs Department.
barriers were also included in the
agreement. The trade pact is also In order to protect certain domestic
expected to provide an investment industries, the government maintains a
promotion and protection framework. list of 27 categories of products that
Guatemala has also proposed measures require import licenses. This list includes
concerning financial services and mostly consumer goods, such as flour,
tourism. rice, beans, dry pasta products, aerated
beverages and beer. 12
Belize has preferential market access for
many products to Europe, Canada, USA
and the Caribbean:
4.4 Import Documentation
Europe under LOME IV
CANADA under CARIBCAN
USA under CBI II Information on all shipping documents
Caribbean under CARICOM 11 must be in metric units. For all
shipments the following are required:

11
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Commercial invoice: Five most plants and plant products,
copies are required. Chamber of including wrappings and
commerce certification and packaging used in connection
consular legalization are not with such living plants.
required.

Certificate of origin: Required
for goods claiming CARICOM 4.5 Labelling and Marking
preferential treatment. Five Requirements
copies of the Certificate of
Origin are required. The The Belize Bureau of Standards has
Certificate of Origin must be standard requirements for labeling and
certified by a designated agency marking of locally manufactured and
in the country of exportation. imported products sold in Belize.

Proforma invoice: Not The standard requires that the label
necessarily required. May be affixed to a product shall give detailed
requested by importer when information on the good, such as the
applying for an import licence. ingredients used and nutritional facts.

Bill of lading: This is required, 4.6 Sanitary and Phytosanitary
however, there are no regulations (SPS) Measures
specifying the form or number of
bills of lading required for any The Food Safety Department has a
particular shipment. The airway mandate to monitor, evaluate and take
bill replaces the bill of lading on action on any matters that may have a
air cargo shipments. direct or indirect effect on the safety of
the food supply. This is done not only
Phytosanitary certificate: This for the export market, but for local
certificate is required on all consumption as well. Providing safe,
shipments of fresh fruits and wholesome and nutritious food is also
vegetables, meats and plants and regarded as a requirement under the
planting materials. World Trade Organisation (WTO)
agreement, to which Belize is a
Health certificate: Required for signatory.
imports of live animals. The
certificate must state that the To carry out this increasingly important
animal is free from disease and role, the Food Safety Department is
must provide proof of origin. active in the following areas:

Plant health certificate: Import A team of Food Safety Inspectors
permits or certificates of performs sanitary inspections of the
introduction (to be obtained in various food-processing plants as well as
advance by the importer from the on certain food products imported into
Ministry of Agriculture, Belize Belize. The Inspectors are continuously
City) usually are required for

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trained in the latest inspection and confidence as well as to keep abreast of
sanitary auditing techniques, so as to be international developments in the field.
able to respond to any new methods of
food processing applied by industry, and CIL is offering a wide range of
to the ever changing conditions Laboratory Services at regionally
encountered in food preparation and competitive prices.
processing environment that may have
an impact on food safety. The BAHA Act of 1999 (Chapter 211 of
the Laws of Belize) gave provision for
Investigations into food borne diseases the establishment of the Food Safety
and outbreaks have been very basic in Department to effectively put in place
Belize thus far. The staff of the Food the necessary regulations and controls,
Safety Department has been upgrading allowing BAHA to deal with the issues
its capacity for carrying out such where food affect human health. The
investigations and a structured legislation is being reviewed and revised
programme has been put in place to start (January 2006) to reflect new regulatory
appropriate monitoring, evaluation and developments (such as traceability
response to food borne diseases. requirements) in the global demand for
food safety. Regulations dealing with the
The food safety department applies the import and export of food items are
principles of Risk Analysis when called being implemented by BAHA's
to evaluate the risks arising from hazards programmes, such as Import Permits and
(or potential hazards) in foods to ensure Certification Programmes.
that the various food exporting and
importing establishments comply with The Food Safety Department has been
current internationally accepted rules taking on the role of educator in issues
and regulations for the safe handling of of food safety. This is done not only for
food. In collaboration with the SPS Unit, food processors but also for
companies may request a Risk Analysis policymakers, technical officers and
to be conducted by a BAHA-team in consumers. A public that is educated in
order to be able to import certain food issues surrounding food safety is the key
items into Belize. to the implementation of safe food safety
practices. A BAHA multi-disciplinary
BAHA has accelerated the upgrading of team will always be ready to promote
the Central Investigation Laboratory food safety education in your
(CIL) of the Food Safety Department by establishment: from the basics of food
purchasing state-of-the-art equipment safety to the latest on food safety
and providing high-quality training for technology.
the staff to enable them to use this
equipment competently, professionally Laison/International Collaboration
and with optimum efficiency. The
Laboratory is enrolled in several The food safety department actively
proficiency testing and quality assurance pursues collaborative work and liaisons
programs to ensure testing excellence with its international partners involved
and gain industry and consumer in food safety. By seeking out and
collaborating with those international

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organizations that have a similar focus, access to the market place of goods that
BAHA can dovetail their work are likely to be a danger to the health or
programme to complement what food safety of consumers.
safety programmes or tasks need to be
done in the country with less duplication 4.9 Product Certification
of roles and effect conservation of scarce
financial resources. Many of the food A certification programme, based on the
safety programmes and plan of work implementation of the Hazard Analysis
established by BAHA has been and Critical Control Points (HACCP)
augmented and supported by food safety system was established for
international organizations (e.g. FAO, the fish and fishery products processing
WHO/PAHO, OIRSA, IICA) having the industry in Belize which enabled Belize
same focus and wanting to achieve to export these products freely to both
similar goals. Partnering with these the USA and the European Union (EU).
agencies avoids duplication and The farm to table approach of BAHA’s
strengthens collaborative efforts in food food safety program, provides for food
safety. 13 safety assurances along the entire chain,
from the production site on the farm
4.7 Prohibited and Restricted with the application of Good
Imports Agricultural Practices (GAP), to the
processing plants’ implementation of
Certain goods are generally not allowed Good Manufacturing Practices (GMP),
into Belize unless they originate from Standard Sanitary Operating Procedures
another CARICOM member state. (SSOP) and HACCP systems that is
verified and certified by BAHA’s
The list includes peanut butter, jam, inspectors and sanitary auditors. Other
jellies, matches, pasta, beans, rice, wheat certification programmes, such as one
flour, and pepper sauce. for meat processing plants and one for
fruit and vegetable packing plants are
Beans and rice, however, like many currently being developed in
other locally produced agricultural collaboration with industry and other
products, may not be imported at all regulatory agencies. 14
whenever there is a surplus of these
products on the domestic market.

4.8 Standards

The Belize Bureau of Standards (BBS)
prepares and promotes standards in
relation to goods, services and processes.

As such, the BBS monitors compulsory
standards with the aim of preventing the

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5. INVESTMENT PROFILE FISCAL INCENTIVES ACT 1990
The Fiscal Incentives Act (No.6) offers
5.1 Investment Incentives Schemes tax holidays and duty exemptions.

Belize’s investment policy is codified in Tax holidays are normally offered for 5
the Belize Investment Guide, which sets years, extensible for up to a further 10
out the development priorities for the years; but in the case of agricultural
country. In spite of the establishment of investment may be for up to 25 years.
the Belize Trade and Investment However, there is a provision that the
Development Service (BELTRAIDE) to Minister for Economic Development, on
serve as a one-stop shop for export and application made by the company in a fit
investment assistance, bureaucratic red and proper case, can review the
tape may still be encountered when company’s operations and renew the tax-
seeking government fiscal incentives. holiday period for a further term not
BELTRAIDE continues to encourage exceeding ten years.
investment in the following sectors of
the economy: Duty exemptions are offered to every
company which has been granted an
• Agriculture, agro-industries, food Approved Enterprise Order
processing and livestock. (Development Concession) to import
• Tourism and tourism-related into Belize, free of import duty, and
industries. revenue replacement duty, a wide range
• Aquaculture and horticulture. of industrial machinery, construction
materials and raw materials. Exemption
• Light-manufacturing industries and
is normally given for 15 years, with a
offshore assembly plants, and
10-year extension. 16
• Forestry and forestry-based
industries. 15
5.2 Foreign Investment Regime
Investment incentives are contained in
The Government of Belize lists the
the following legislation:
following criteria according to which it
judges foreign investment:
• Fiscal Incentive Act, No. 6 of 1990;
• International Business and Public
• creates employment opportunities;
Investment Companies (IBC) Act
• makes maximum use of indigenous
1990;
raw materials;
• Mines and Mineral Act 1988;
• earns foreign exchange;
• Export Processing Zone (EPZ) ACt
• results in increased production;
1990;
• introduces state-of-the-art
• Commercial Free Zone (CFZ) Act
technology;
1994.
• enhances local management skills;

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• promotes greater efficiency through Income tax is charged at between 2 and
competition; 8 percent on Free Zone businesses, but
• diversifies the economic base; these rates can be reduced by up to two
• facilitates access to foreign markets; percent through tax credits earned by the
• is environmentally friendly. employment of Belizean workers. 18

Longer term incentives are offered for 5.3.2 Export Processing Zones (EPZ)
the location of industries in the less-
developed rural areas of the country and Three locations have been designated as
for export-oriented projects or projects EPZs under the Export Processing Zone
utilizing technology not previously Act. The San Andres EPZ occupies 28.5
introduced into Belize. The government acres of land in the northern section of
prefers joint venture and partnership the country, only 8 miles away from the
investments, but does permit one Mexican border, right next door to
hundred percent foreign ownership of an NAFTA. The other two Zones are both
enterprise. 17 located approximately 9 miles from
Belize City, the country's commercial
capital. The EPZ adjacent to the Philip
5.3 Free Trade Zones Goldson International Airport covers
four acres, while the Price Barracks EPZ
5.3.1 The Commercial Free Zone covers 14 acres.

The Commercial Free Zone Act 1994 In the EPZ, facilities are provided for
established a Commercial Free Zone at activities in manufacturing, processing,
Corozal to attract foreign investment. packaging, warehousing and the
The Zone provides facilities for various distribution of goods and services. In
activities including manufacturing, fact, amendments made to the legislation
processing, packaging, warehousing and in 1994 provide investors with the added
distribution of goods and services. option of constructing their own
facilities and developing infrastructure
Businesses established in the Free Zone within an EPZ, including independent
are free of foreign exchange restrictions utility installations. This option enables
and receive a range of other benefits an EPZ to enhance its economic
including duty exemptions and tax development, since it does not
holidays. necessarily have to use the electricity or
telephone facilities provided by the two
Goods and supplies entering and leaving local monopolies, The Belize Electricity
the Free Zone for commercial purposes Limited and The Belize
are exempt from import or export duties, Telecommunications Limited
quotas, stamp duties and revenue respectively.
replacement duties.

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While new applications have been
approved for ICT companies, the
government continues to streamline the
EPZ programme. In 2006, only eight
new EPZ companies were approved,
bringing the total number of EPZ
companies operating in Belize at the end
of 2006 to 73. 19
20

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http://www.lowtax.net/lowtax/html/jbz2tax.html

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6. ESTABLISHMENT OF 6.2 Establishing an Office
BUSINESSES
The following is taken from the laws of
6.1 Right to Private Ownership Belize, Chapter 206, Part IX. It applies
to foreign companies wishing to
The Constitution of Belize protects the establish an office in Belize.
right to private property. Chapter II,
Article (3a) guarantees “protection from 1) Overseas companies that establish a
arbitrary deprivation of property.” place of business within Belize shall,
Among other documents, records of within one month of the
companies and real estate mortgages are establishment of the place of
kept in the government’s general registry business, deliver the following to the
office. Registrar for registration:
a) A certified copy of the charter,
Also, foreigners must obtain approval statutes or memorandum and
from the Minister of Natural Resources articles of the company or other
in order to purchase or hold land in instrument constituting or
excess of half an acre for urban areas or defining the constitution of the
in excess of ten acres for rural areas. company, and if the instrument is
not written in the English
There are controls on land ownership by language, a certified translation
foreigners in excess of 0.5 acre in a town thereof;
or 10 acres in the country. The Minister b) A list of the directors and
of Natural Resources issues licenses if a secretary of the company
satisfactory development plan is containing the particulars;
presented or is in existence. If a property c) The names and addresses of
is being sub-divided for sale, a someone or more persons
subdivision permit must be obtained resident in Belize authorized to
from the Minister of Natural Resources. accept on behalf of the company
Land can be leased from the service of process and any
Government of Belize with an option to notices required to be served on
buy if the planned development the company.
indicated at the time of the application is 2) Every overseas company shall, in
carried out. Land in general has a (one every calendar year, file with the
percent) tax on the unimproved value of Registrar such a statement in the
the land. The cost for transfer of title to form of a balance sheet as would, if
real property is 10 percent of value for it were a company incorporated in
Stamp Duty (usually shared between Belize and having a share capital, be
buyer and seller) and a token fee for required to be included in the annual
registration. Attorney fees are additional. summary.
21 3) Every overseas company shall do the
following:
a) In every prospectus inviting
21 subscriptions for its shares or
http://www.lowtax.net/lowtax/html/jbzcfir.html debentures in Belize, state the

17


country in which the company is size pictures endorsed by the applicant
incorporated; must accompany the application.
b) Conspicuously exhibit on every
place where it carries on business In the case of an investor a present
in Belize the name of the passport, three passport size pictures,
company and the country in and substantive proof of ability to
which the company is sustain him/herself without infringing on
incorporated; the country's limited economic
c) Cause the name of the company resources. Bank statements or other
and of the country in which it is proof of financial independence are also
incorporated to be stated in required.
legible characters in all bill heads
and letter paper, and in all The ‘life’ of a work permit ranges from
notices and other official three months to one year and is subject
publications of the company; and to renewal. 23
d) If the liability of the members of
the company is limited, cause 6.4 Intellectual Property Rights
notice of that fact to be stated in
legible characters in every such In 2003, Belize signed up to an
prospectus as aforesaid and in all agreement on intellectual property
bill heads, letter paper, notices development. According to the World
and other official publications of Intellectual Property Organization
the company in Belize, and to be (WIPO): "The agreement establishes the
affixed on every place where it terms of a project that is designed to
carries on business. support a more effective integration of
the region into the global economy by
In addition, foreign companies are fostering technological innovation,
required to pay a registration fee of creativity and competitiveness through
BZ$84 ($42) at the office of the intensive and effective mobilization and
Registrar General in the Supreme Court use of intellectual property."
Building in Belize City. 22
Belize has fulfilled its obligation under
6.3 Work Permit Requirements the World Trade Organization (WTO) to
implement the Agreement on Trade-
The application process takes Related Aspects of Intellectual Property
approximately three weeks. Although (the TRIPS Agreement). The Belize
the Ministry of Labour processes and Intellectual Property Office (BELIPO)
approves the issuing of work permits, was subsequently established to
the permit is issued by the Immigration administer these IPR laws, which
Department - the fee can range anywhere include copyrights, industrial designs,
from $100.00 to $750.00 depending on patents, trademarks, protection of new
the level of skill. Two recent passport plant varieties, and protection of layout –

23
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18


designs (topographies) of integrated Belize to facilitate the repatriation of
circuits. profits, dividends, etc.

Belize is a party to the Paris Convention The Government of Belize allows
for the Protection of Industrial Property companies with proper documentation to
and of Literary and Artistic Works and go directly to the commercial banks to
the Patent Copyright Treaty. However, request foreign exchange. However,
Belize has ratified neither the WIPO much to the aggravation of foreign
Copyright Treaty (WCT) nor the WIPO investors (and local importers alike),
Performances and Phonograms Treaty there are occasional shortages of foreign
(WCCT). exchange in the commercial banks,
which result in some delays in payments
Under Belize’s Copyright and for current international transactions.
Trademarks Laws, the onus to institute
legal action against violators of Transfer or sale of land in excess of 10
intellectual property rights lies upon the acres to or from non-Belizeans requires
holder of the copyright and trademark, the approval of the Minister of Natural
and not upon local law enforcement Resources, but this is usually not an
officials. obstacle. 25

In April 2007, Chief Justice of Belize,
Abdulai Conteh, and the President of the
Central American Court of Justice, Dr
Ricardo Acevedo Peralta, signed a
Cooperation Agreement between the
Supreme Court of Belize and the Central
American Court of Justice. The
government of Belize has said that the
purpose of the Agreement is to
institutionalize inter-jurisdictional
relations, develop juridical integration
processes in the region and foster wider
cooperation. 24

6.5 Conversion and Transfer Policies

According to the Belize Trade and
Investment Development Service
(BELTRAIDE), foreign investors are
required to register any investments
made in Belize with the Central Bank of

24 25

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19


7. CULTURAL obtaining a visa. Belize allows visitors a
PRACTICES maximum of one-month stay in the
country before they require an extension.
27
7.1 Business Customs

There is a favorable business The Philip Goldson International Airport
environment, with few regulatory is 2 hours’ flying time (daily flights)
restrictions and minimum of red tape. from Miami, New Orleans or Houston.
Government hours are from 8 am to 12 There are reliable shipping and air cargo
noon and 1 pm to 5 pm Monday to services to and from Europe, United
Friday. Belize Telecommunications States of America, Central America and
Limited provides telephone the Caribbean. The departure tax at the
communication between Belize and the International Airport has is US$20 per
United States and Canada. Direct dial person. There is a Tourist Departure Tax
service is available worldwide. The of US$10 per person when departing
Belize telephone system is one of the Belize at either of the land border
best in the region, with a modern fibre- crossings.
optics network. Cellular and paging
services are available. International calls Departing the country through land
are expensive. Direct Internet access is borders requires payment of the land
available from Belize border exit fee of US$18.75 per person.
Telecommunications, Ltd.
A portion of the departure tax goes
Mail service is generally reliable. Letters toward the protection and preservation
(US$30 cents for a one-half ounce of the environment. Due to the country's
airmail letter) to the US from Belize City effort to effectively manage their
take about a week, longer from more abundant protected areas, visitors are
remote areas. Belize is a very informal asked to pay a conservation exit fee at
country, with a casual life-style. Formal any of the exit or entry points. The
attire is seldom necessary. 26 proceeds from this fee goes to the
Protected Areas Conservation Trust
(PACT), which is then distributed and
7.2 Entry/Exit Requirements: used to sustain the protected areas in
Belize.
All travelers entering the country must
have a valid passport (valid for up to six There is a standard nine percent hotel tax
months after visit) and a proof of return that is added to your hotel bill (7 percent
to their country. No visas are required until April 1, 2005). In some of the more
for citizens of the United States, United exclusive resorts and hotels, a service
Kingdom and the majority of Caribbean charge of about 10 percent is charged to
Islands. Visitors from other countries your hotel bills (restaurant, bar and
must check for information about room), while in other locations, tipping

26 27

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20


is optional. A nine percent sales tax is
also attached to most goods and services
in the country. 28

28

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21

Doing Business with Belize

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