OCT and CBI Regulations Information Session

On 27 November 2015, the Ministry of Economic Development and Curaçao Investment and Export Promotion Agency (CINEX) held an information session for local entrepreneurs who are interested in exporting products using the Overseas Countries and Territories (OCT) and Caribbean Basin Initiative (CBI) regulations. This information session was attended by potential entrepreneurs and business owners looking to reach out to international markets.

TEXT TAHNEE BRUIN

The European Union’s OCT regulation, and the American Government’s Caribbean Basin Initiative Regulation, were both implemented for Curaçao at the beginning of 2014. Both are unilateral agreements that give countries likes Curaçao preferential entry to the European or American markets provided that certain conditions are met. This means that products that are made in Curaçao could essentially be free from import tax regulations in these two markets. The core of these regulations is the Rules of Origin that define the nationality (or source) of the product to be exported. The nationality or source of product then determines whether or not the product may be imported free of taxes.

The Information Session consisted of several interesting and informative presentations, including one given by students from the Social Economic Faculty of the University of Curacao (UoC) on the history of Curaçao’s export industries and the conditions necessary in order to make use of the OCT and CBI regulations; one by the Ministry of Economic Development highlighting the possibilities of export to the EU using OCT regulation and the specific regulations regarding origins of work; one by the Acting US Consul General in Curaçao on products exported by other CBI beneficiary countries to the US and export opportunities specific to Curacao’s situation; and finally one by the Ministry of Health, Environment and Nature on requirements for products for human consumption and other international standards that must be taken into account.

After the presentations, four local companies (Curaçao Ecocity, Tatiana’s Dream Natural Product/Integra Natural, The Golden Lady Distributor, and Antillean Soap Company) shared their respective experiences with regards to exporting their products and the existing using the regulations.

New OCT and CBI Regulations can be very profitable for businesses in Curaçao if implemented correctly. It is important that as businesses consider expanding their reach to international markets that they ensure that their products are not only attractive when exporting abroad, but that they take advantages of OCT and CBI regulations, and follow international guidelines. The OCT and CBI Regulations are both very important for Curaçao, especially considering our view to reach more target markets close by and farther away.