DOING BUSINESS BETWEEN MEXICO AND EL SALVADOR: WHAT YOU NEED TO KNOW TO INVEST, SELL AND EXPORT-IMPORT IN BOTH COUNTRIES AND US LATINO MARKET.
DOING BUSINESS BETWEEN
MEXICO AND EL SALVADOR: WHAT YOU NEED TO KNOW TO INVEST, SELL AND EXPORT-IMPORT
IN BOTH COUNTRIES AND US LATINO MARKET ( update needed)
By BERNARDO MENDEZ LUGO
Counselor for Economic
Affairs and Scientific Cooperation, Embassy of Mexico in El Salvador. (Between
August 2009 and August 2012).
Central American Integration
System
The dynamism of trade and
investment between Mexico and El Salvador has been largely improved since the
entry into force in 2001 of the Free Trade Agreement between Mexico and El
Salvador in the framework of the Treaty of Northern Triangle including
Guatemala and Honduras. Investments of Mexican companies are close to 1500
million US dollars according to non
official estimates of January 2010 and Salvadorean business investments in
Mexico grew steadily especially Salvadoran SMEs.
Also to be considered is the
Free Trade in North America (NAFTA) that includes more than 35 million
consumers of Mexican descent living in the USA and nearly 3 million people of
Salvadorean origin settled in the United States. Many of the younger immigrants
were born in the USA.
In total, nearly 54 million
Latinos are living in the United States and the growth of the Latino market in
the U.S is steady. this huge Latino market equals or exceeds the purchasing
power of countries like Mexico and Central America combined.
Many immigrants in the
United States dream of starting a business or build a business of imports and
exports, and both Mexico and El Salvador receive with open arms their hometown
nationals who wish to return and start investing in their homes-countries. In
El Salvador there is a clientele hungry for products from Mexico, there are
potential buyers who appreciate and wish to sell goods imported from
Mexico.
Find guidance in the section
of Economic Affairs of the Embassy of Mexico in San Salvador that is under my
responsability and I will help you to find the addresses and telephone numbers
of Mexican companies that you are interested as well as local firms in El
Salvador.
To begin, visit the
following websites: www.promexico.gob.mx
www.sre.gob.mx
www.economia.gob.mx these are the
websites of Mexican government entities promoting investments in Mexico and
Mexican exports, Promexico, the
Secretary of Foreign Affairs and the Secretary of Economy.
CHAMBER OF COMMERCE AND
INDUSTRY OF EL SALVADOR
How to contact Salvadoran
firms
To start businesses and
strengthen business relationships with Salvadoran companies, the Chamber of
Commerce and Industry of El Salvador offers an effective solution to
entrepreneurs in other countries as well as Salvadoran entrepreneurs seeking to
internalize their business.
Business Opportunities
If you want to promote
products and services for searching representatives or partnerships, the
Chamber will be a key ally. This service optimizes time and maximizes the
resources of the businessmen who seek to establish productive relations in El
Salvador.
EL SALVADOR TRADE AND
INVESTMENT
On this site you will find
advice on Trade and Investment, Trade Opportunities, Economic Indicators,
Statistics of Foreign Trade, Directory of Exporters and Importers, General
Profile of El Salvador.
CENTRAL RESERVE BANK:
www.bcr.gob.sv
It contains economic
information (bulletins, economic indicators and statistics) Financial
Information (legislation, financial data). And procedures with SISEX (read
below).
The SICEX - Integrated
Foreign Trade System, a system that connects through the Internet, exporters,
and government entities, agencies linked to foreign trade and the Center for
Export Procedures, (CENTREX)
Contains a directory of
domain of El Salvador (SV), You can register Web domain, request IP number
....
You can perform the
calculation of import of vehicles, tax information and other services provided
by the Ministry.
Services provided by the
Directorate of Cadastre, Register of Commerce and Intellectual Property
Registration Property & Mortgages Root, National Geographic Institute.
Guide found paperwork
concerning this ministry, law, prices news, business information, Economic and
Social Information ....
DEALERS ASSOCIATION OF EL
SALVADOR
What is ADES?
The Association of
Distributors of El Salvador - ADES, is an entity completely apolitical and
nonprofit, seeking to defend, encourage and promote the interests of its
membership, since they represent 85% of consumer products offered in the
Salvadoran market.
ADES has succeeded in
becoming a union representative for the distributor sector, achieving and
encouraging the growth of domestic trade. Its partners are authorized to
represent dealers in El Salvador to companies, foreign or domestic houses with
different products. Also, explore to become a membership in the National
Association of Private Enterprise –ANEP-, it ensures your relations with
important actors in the national economy of El Salvador.
Mission
To defend the interest of
distributors, to promote union, business opportunities and competitive
development of members, thus obtaining the benefit of its members and their
customers, stimulating the development of the commercial sector and
contributing to the economic and country's social.
Ministry of Agriculture and
Livestock of El Salvador ...
INTERNATIONAL FAIR OF EL SALVADOR:
www.cifco.gob.sv
Institution dedicated to
promoting and facilitating fairs, exhibitions, conventions and other national
and international events ....
Iberoamerican Association of
Chambers of Commerce: www.aico.org
Latin American Organization
that integrates and coordinates to the Chambers of Commerce and Industry and
other sectors of its geographical area ...
BORSICCA (www.sica.int)
BORSICCA is a tool created
to support the exchange of waste through an electronic system that allows
marketing use or reinstatement of these, the different production chains that
are developed in the region ....
As part of a strategy to push the bill in
different countries, on August 26th, 2009, was launched in BORSICCA in El
Salvador, whose local manager and operator will be the Chamber of Agriculture
and Agribusiness in El Salvador (CAMAGRO) and the Foundation National Center
for Cleaner Production (CNP + L). This event was attended by representatives of
furniture manufacturing industries, cement, paper and cardboard, poultry, among
others.
Since the launching of
BORSICCA, it has been conducted in Guatemala by the Guatemalan Center for
Cleaner Production (CGP + L), who presented on July 30 BORSICCA to the business
community of this country and are pending the release of same in Nicaragua.
BORSICCA account since early 2008, funded by the Cooperation Agreement CCAD /
USAID / CAFTA-DR and Regional Cooperation Program for Environment with Central
America in partnership with the Spanish Agency of International Development
Cooperation (AECI) and Spain Fund SICA, coordinated by the Guatemalan Center
for Cleaner Production, and the implementation of various activities by the
Cleaner Production Center of El Salvador, Guatemala, Honduras and
Nicaragua.
Subsequently, in June 2008,
extending the project, with funding from the Biodiversity Foundation of Spain
and Support AECID SICA / CCAD / Support Environment Plan with Central Araucaria
XXI from the Biodiversity Foundation and the AECI. This extension considered
worked on the implementation of additional activities in cleaner production for
the countries of Honduras, Nicaragua and Panama.
www.new.camagro.com CAMAGRO Who are we?
The Chamber of Agriculture
and Agribusiness in El Salvador (CAMAGRO) is a private, apolitical, non-profit.
Its primary objective is to link all natural and legal persons engaged in
activities related to agriculture, forestry, fishing, food processing and other
related activities
Vision:
Being the guild leader and
inclusive conditions conducive to the development of agricultural and
agribusiness sector strong, competitive and successful.
Mission:
To safeguard the interests
of agricultural and agribusiness sector and boost its competitiveness and
integration of productive chains.
Macro strategy:
Creating an agricultural
policy in the medium and long term and lead to strategies for achieving its
adoption by the next government.
CAMAGRO has the goal of
getting to lobby and influence the relevant government bodies for the
implementation of agricultural policy.
If you are a Mexican
investor and you are residing in El Salvador you should join or at least attend
business meetings and workshops organized by the Chamber of Commerce and
Industry of El Salvador (www.camarasal.com), also should establish contact with
the Salvadoran Chamber of Industries (www.asi.org.sv ) and if you are
interested in agricultural and agribusiness sector should establish contact
with www.camagro.com
These chambers will serve you with speed and great kindness,
you can also send an email to their contact information emails in their
official websites. For young entrepreneurs who start a business or are
professionals that in the near future
are thinking to start a business, there is in San Salvador Chamber of Commerce
and Industry of El Salvador (www.camarasal.com) An ideal organization where all
events, conferences and meetings bring together entrepreneurs eager to make new
contacts.
CAMARASAL is a very dynamic
and active organization that helps new entrepreneurs and you can become a
member from a share accessible to the year for those who are entrepreneurs or
prospective annual individual membership, please call Tel 503-2231-3000
To start businesses and
strengthen business relationships with Salvadoran companies, the Chamber of
Commerce and Industry of El Salvador offers an effective solution to
entrepreneurs in other countries as well as Salvadoran entrepreneurs seeking to
internalize their business. If you want to promote products and services for
representatives or partnerships. This service optimizes time and maximizes the
resources of the businessmen who seek to establish productive relations in El
Salvador.
CAMARASAL was the
organization hosting the event business: Name: Business Meeting MEXICO - EL
SALVADOR 2009
Date: 23 to 26 November
Frequency: Annual
Venue: Chamber of Commerce
and Industry of El Salvador
Host Country: El Salvador
No. of Exhibitors: 12
Mexican companies
Organizer: Trade Point
Mexico
Contributors: Embassy of Mexico
in El Salvador, Sria of Finance via the SME Fund and CamaraSal.com
Visitors Profile: Sector:
multisectoral
Event Profile: Business
Meeting
El Salvador, San Salvador,
2009.
If you live in Santa Ana,
San Miguel, Sonsonate and La Union you should join CAMARASAL Regional Office:
San Salvador. Phone: (503)
2231-3000 (503) 2231-3000
Santa Ana Phone: (503) 2440
- 5446 (503) 2440 - 5446
Fax: (503) 2440 - 1338.
Email: camara.sal@camarasal.com
San Miguel. Phone: (503)
2683 - 8800 (503) 2683 - 8800
Sonsonate. Phone: (503) 2451
- 7225 (503) 2451 - 7225
La Union. Phone: (503)
2604-0330 (503) 2604-0330
It is not difficult to
register a company or business, in each municipal or county registration office
there is a business registration desk in each city government and you need to
apply, they will ask the name of the business to start, line of business,
payment of a fee between for registration and a similar share to maintain
current annual registration.
To start or expand a small
business in San Salvador or other cities in El Salvador you should visit the
website of the local city: If you have Internet access (or you can visit any
public library) you should visit the local business chamber and government
websites and visit local banks for information about loans for small firms in
San Salvador.
You may want to visit the
following website to relocate your business in El Salvador: www.proesa.com.sv bellow follows a current PROESA report
WHY TO INVEST IN EL SALVADOR?
Distance Business Services
STREAM, Sykes,
Teleperformance, Transactel, Crowley Shared Services, Wallenius Wilhelmsen
Logistics DIGITEX are some of the world-renowned companies have established
projects in El Salvador and services that provide business services to clients
Distance in the Western Hemisphere - especially those related to Call Center /
Centers Contact Centers and Business Process.
The relocation and / or
outsourcing of business services from abroad have become a good opportunity for
companies to meet high productivity at lower costs.
El Salvador, located in
Central America, allows companies a strategic option in terms of location,
allowing easy access to U.S. and South America.
The quality of its
workforce, adequate infrastructure and continually renewed, and its favorable
investment climate, making El Salvador an ideal destination for business
development and operations of Enterprise Services to establish a Distancia.
Investment Opportunities
In recent years, the contact
center industry has been the most dynamic segment in the services sector in El
Salvador. Contact centers established in the country can be categorized into
three areas:
Customer service, sales and
technical support.
All these companies have
found the Salvadoran labor quality and language skills that enable providing
world class services globally.
El Salvador offers a
business climate and infrastructure ideal for businesses looking to centralize
and expand its operations in the Western Hemisphere. Establish a transaction
relating to Remote Enterprise Services in El Salvador allows significant
reduction in costs through process optimization and resources as well as lower
prices in the acquisition of property, human resources and telecommunications
services.
Some of the business
services currently provided from El Salvador are: Customer Service,
Telemarketing, Technical Support, Software Development, Document Processing,
Sales Specialist, accounting and documentation processes
Why El Salvador?
Competitive and comparative
advantages that El Salvador has in the sector:
* Weather appropriate
business
* Political and economic
stability, ensuring certainty and predictability during the period of presence
in the country;
* Strategic location El
Salvador shares the same time zone with the United States (U.S. Central zone;
GMT - 6:00), which caters to customers from around the world;
* Access to major cities in
the Western Hemisphere within normal travel schedule.
* Telecommunications
infrastructure that lets you communicate with everyone
El Salvador offers access to
advanced communications technologies, which allows us to offer faster and more
reliable service at competitive prices; El Salvador is interconnected through 4
high quality optical fibers which guarantee a 99.9% redundancy, availability of
highly labor productive, educated, creative and young, fast learning and
service-oriented.
About 60% of the population
of El Salvador are people under 36 years of age. This ensures the power access
to manpower young and eager to work.
Labor costs are the lowest
in the region, which is positioned to El Salvador as an ideal source of well
trained human resources at competitive costs.
Cultural affinity with one
of the largest markets in the world: the United States.
Availability of skilled
manpower to serve the U.S. Hispanic market, equivalent to 15% of its total
population and whose economic power as the Research Corporation Hispanic Market
Strategy ("Strategy Research Corporation on Hispanic Market") will
reach U.S. $ 1.2 trillion in 2012.
Higher Education.- El
Salvador has 46 universities and technical institutes, with approximately
114,000 students aspiring to a degree or specialization in one or more races
and / or academic and professional programs.
For more information
contact: Julia Rosa Lima / Advisory Business Services Distance: jlima@proesa.com.sv
In El Salvador the documents
needed for registration of a company are usually the Tax Identification Number
(NIT) for all people without exception, DUI (single identity document if
salvadorean) if you are a foreigner, you will need your residence document or
valid passport from your country of origin, address where you will install the
business, official identification such as driver's license and passport or an
accepted form of identification by authorities in some cases it may be useful
as a reference, to have your business bank account.
You have to investigate the
local market before getting providers that want to import your goods and do
customs clearance investigation to find out if your goods have to pay duties.
Also, you should investigate whether the product you want to bring to your
potential customers, if other retailers are already importing them, and to see
if a product is very competitive and will be offered by other traders.
In a word, exploring and
studying the market to get an idea of the possibility of selling the product we
want to import. The same study be carried out if you think getting goods from
El Salvador to Mexico. There are often established channels with low prices for
certain products and is not feasible to compete as a small merchant. Useful
links: (www.promexico.gob.mx ) (www.shcp.gob.mx)
and (www.nafin.gob.mx).
It is worth exploring the website of Mexico
states, for example, Guanajuato is: (www.guanajuato.gob.mx),
just change the name of the state, for other states. Every state has offices
for migrants and attractive programs to support new investment or business in
Mexico.
For example, the state of
Guanajuato in Mexico has www.cofoce.gob.mx page that has information about
demand for Mexican products in the U.S. and support they can give the
government of Guanajuato to potential exporters in the state.
It is essential to know
whether a product that we bring to El Salvador has no health restrictions,
ecological or the tax rate is high which makes unaffordable imported. For
example, food and beverages must meet certain health standards and still be
packaged, canned or tinned certain regulations must be met by the Ministry of
Health of El Salvador.
In the case of certain
crafts such as clay dinnerware manufactured from palm or vegetable there are
certain rules as zero lead content in paint or clay dishes pest control in
agricultural products. In other words, it is important to have a general idea
of the requirements for importation to the U.S., not only the health standards
for animal products and plant but to know the import regulations (labeling, net
weight and drained, allowed conservatives, etc.) and tax rates approximate.
Visit: www.mspas.gob.sv
ONLINE
SERVICES MANAGEMENT COMPREHENSIVE ENVIRONMENTAL HEALTH (GAIS) MINISTRY OF
HEALTH- EL SALVADOR: www.gaisa-mspas.gob.sv/gaisa/servicios.htm
On this site you will find
information on procedures or services that the Ministry of Public Health offers
in relation to supervising and control of food and beverages.
Select from the list of
procedures or services which you are interested or need, click on it and you'll
see general information about each of these also may be downloaded to your PC
the necessary forms, which, once completed, will be submitted to the Department
of Food Hygiene in the Management of Environmental Health.
* Rates of payment for services (pdf)
* Extension of free sale certificate
* Sanitary registration and / or
renovation of imported food and beverages
* Sanitary registration and / or renewal
of national food and drink
* Authorization to import foods, raw
materials and food additives
* Recognition of the Health Record Members
of the Customs Union
* Authorization of users to produce or
import alcohol
* Technical opinion conditions of handling
and storage of chemicals
* Installation and Operating Permit issued
by Health Health Units
* Application Form for Importation of
Foods and Beverages (pdf)
From the operational point
of view for import-export activities, you will
need to hire a custom broker. For these procedures in Mexico, visit the
wevsite of the Confederation of Customs Brokers of Mexico: www.caaarem.org.mx website where you can get phone numbers and
addresses of custom agents in Mexico. If you have small orders, it is necessary
to evaluate costs, because sometimes can be cheaper to buy certain products to
wholesalers or retail chains already established in your own country.
WHAT IS THE MEXICAN CUSTOMS AGENT .- In
accordance with Article 159 of the Customs Law of Mexico in force is "a
natural person authorized by the Ministry of Finance through a patent, employed
to promote the clearance of goods under the various schemes under this law.
" Customs brokers is not a public official is a member of the private
initiative that contributes to the Treasury Department in controlling the entry
and exit of goods, the proper payment of contributions and countervailing
duties.
100% of cargo entering and
leaving this country, 94%, is carried through customs agents, so we can say
that the customs broker is a major strategic partners of Mexican companies and
the federal treasury because the former is provided as a service "out
sourcing customs" that allows companies to reduce major costs of operation
and control of its operations and the second, helped with the audit and
collection of contributions to foreign trade, as data highlight that the
customs agents collect 44% of the national VAT.
The broker also checks:
• previous import permit
before the Department of Economics.
• Certificates of origin.
• Treaties and trade
agreements that Mexico has signed with other countries.
• Mexican official
standards.
• Authorizations health.
• Permits phytozoosanitary
health.
• Authorizations for
environmental protection.
• Tagged business
information.
• Marked by country of
origin.
In some cases better than the small importing
business to associate with others of the same item to buy in bulk and service group
to pay a broker. Visit: www.aduanas.gob.mx
The equivalent site in El
Salvador is: www.aduana.gob.sv of the
Directorate General of Customs of El Salvador that provides comprehensive
information on customs regulations, tariff system, rules of origin, trade
agreements in force, border customs directory, inland, maritime, air, and more
internal and peripheral information of interest to importers and exporters.
In the case of Mexico, the
customs authority requires the importer or exporter who is registered in the
register of exporters and importers in order to accomplish these tasks, which
involves having a number of taxes in Mexico warrant or fourth. For this reason
and the need to follow the steps to export it from Mexico is important to
contact a broker to do the import motion to El Salvador. In the case of
exporting products from El Salvador to Mexico, Guatemala and Honduras,
salvadorena business people should use the facilities afforded by the free
trade treaty between Mexico and the Northern Triangle (El Salvador, Honduras
and Guatemala) must take advice and service of a customs agent of each of the
countries you want to export.
It is advisable to
investigate the background of good customs agents so that there is full
confidence in the work of loading, certificates of origin, tax collection,
in-depth knowledge of exempted products and discounts on used goods, etc.. In
the case of Salvadorean exports to Mexico is very likely for you to have a
number of foreign taxes as if not a permanent resident or citizen of Mexico.
Remember, your tax number (NIT) will not be useful in Mexico and other
countries.
In the U.S. case, remember
that many Salvadorans and Mexicans who are not U.S. residents successfully
perform business at the U.S., many entrepreneurs Salvadoreans and Mexicans in
the U.S. maintain their permanent residence in El Salvador or Mexico but
participate in fairs and exhibitions in USA, others conduct business in U.S. territory but these kind of business
people do not want or need permanent residency in the United States because
they have their permanent headquarters in Mexico or El Salvador.
If you are starting a
business for sale at retail of imported products, most of the cities of El
Salvador have local ordinances or regulations governing the operation of
business. We recommend visiting the offices of the mayor regarding the opening
of small businesses. Sometimes it is very advisable to be a member of the local
chamber of commerce business since you will have relevant information to
properly register your new business, learn about financing and loans available
to minority businesses or local incentives and programs, departmental and
generally any kind of support that exists in the locality or region where you
operate. If you live in San Salvador will be very useful to visit the website: http://www.ades.org.sv to locate most goods distribution business
and services. For locating government offices of El Salvador visit: http://www.miguiaamarilla.com/Gobierno-Electronico-ElSalvador.html
Nationwide offices can
locate all departments entering www. If you want to export goods should
Salvadorans www.coexpo.com visit to harness the resources of COEXPO-EL SALVADOR
must register at no cost. Complete your information www.proesa.com.sv
If you want to open a small
food business have to meet stricter health standards, some training of workers,
cooks hygiene, food handling refrigerated baths, fire-fighting equipment,
emergency exits, etc.
When your business has paid
employees have to meet standards of safety, accident prevention, verification
of work permits for employees, local ventilation, environmental standards and
other standards. Might suit visiting the website of the Ministry of Labor and
Social Prevision of El Salvador: www.mspas.gob.sv
If you initiate operations
in Mexico or El Salvador and other countries in the region and your business
operates in the space of your home for being a craft workshop, a publishing
company, and so on. You maybe entitled
to deduct tax exemptions or insurance payment or part of it for you and your
wife and children if working in the family business. In Mexico, visit www.shcp.gob.mx and www.stps.gob.mx In El Salvador, visit: www.mh.gob.sv and www.mtps.gob.sv
For these reasons, it is
advisable to pay an accountant you trust that as a small businessman and the
possibility of performing many deductions for rental expenses, gasoline,
purchase of office supplies or raw materials, including discounts on services
such as electricity, gas and mail among others. A good accountant can save many
dollars and the cost of the Tax accountant expert is definitely money well
spent, is actually a wise investment. If you live in Mexico are advised joins
the chamber of commerce or your local industry to industry visit and trade www.canacintra.org.mx visit www.concanaco.org.mx. In El Salvador
visit: www.camarasal.com www.asi.com.sv www.ades.org.sv and www.camagro.com If you live in Mexico, El Salvador or the
United States, join the local chamber immediately to help your local business,
usually the annual membership fee as an individual takes a bit more than
average of $ 100 dollars, you get many benefits and new relationships for your
business.
I wish much success in your
new business, remember that even small, you should keep accounts and budgeting
of costs and profits. If you do not have administrative preparation and
marketing skills, do not worry, look for information in local chambers of
commerce in your area, join as an individual to pay lower fees, if you do not money to join, attend free
workshops, go to social gatherings and do not get tired of asking always, Good
luck in your new business
posted by Bernardo Mendez-Lugo @ 3:11 PM
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