a guide to investing in trinidad and tob ago -...

A GUIDE TO INVESTING IN TRINIDAD AND TOBAGO - 2003

This Investment Guide to Trinidad and Tobago is written and updated by The Tourism

and Industrial Development Company of Trinidad and Tobago Limited (TIDCO) and

PricewaterhouseCoopers on behalf of TIDCO.

The Guide is revised annually. It is intended to provide investors and potential investors

with basic information on doing business in Trinidad and Tobago and the investment and

tax climate that exists.

While every effort has been taken to make the Guide as complete and accurate as

possible, it is not intended to be a comprehensive statement of the law or a substitute for

appropriate professional advice. Neither TIDCO nor PricewaterhouseCoopers can take

responsibility or liability for any errors of fact or opinion herein.

TIDCO and PricewaterhouseCoopers welcome any comments you may have to make the

Guide more useful to users in the future.

August 2003

Guide to Investing in Trinidad & Tobago

ii ii

TABLE INDEX IX

ABBREVIATIONS X

I. TRINIDAD & TOBAGO IN BRIEF 11

1.1. Capital 11

1.2. Land and Climate 11

1.3. History and Culture 11 1.3.1. History 11 1.3.2. Language 3 1.3.3. Ethnic Composition 3 1.3.4. Religion 4

II. TRADE INFORMATION 5

2.1. Exports and Imports 5 2.1.1. Exports 5 2.1.2. Imports 6 2.1.3. Main Trading Partners 6

2.2. International Associations and Trade Agreements 6 2.2.1 CARICOM 6 2.2.2 International Organizations 8 2.2.3. Caribbean Basin Initiative (CBI) 9 2.2.4 Cotonou Agreement 10 2.2.5. Caribcan 10 2.2.6 CARICOM/Republic of Venezuela Agreement 10 2.2.7. CARICOM/Republic of Colombia Agreement 11 2.2.8. Cuba/Trinidad and Tobago Agreement 12

2.3. Caribbean Market Facts 12

2.4. Transport Logistics 13 2.4.1. Commercial and Industrial Areas 13 2.4.2. Ports 14 2.4.3. Airports & Routes 14 2.4.4. Cargo Flights 15 2.4.5. Sea Ports 16 2.4.7. Roads 17 2.4.8. Media 17

III. BUSINESS ENVIRONMENT 19


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3.1. Economic Trends 19

3.2 Key Economic Indicators 21 3.2.2. Unemployment 23 3.2.3. Inflation 23 3.2.4. Balance of Payments 24 3.2.5. Exchange Rate Stability 26

3.3. Government’s Priorities, Role and Objectives 26

3.4. Energy Sector 28 3.4.1 Investing in the Petroleum Industry 29 3.4.2 Investing in the Petrochemical Industry 31 3.4.3 Investing in the Energy Sector in Trinidad and Tobago 32 3.4.4 The National Gas Company of Trinidad and Tobago Limited (NGC) 34 3.4.5. Investing in Petroleum Retail Marketing 36

3.5 Agriculture Sector 36

3.6. Tourism Sector 37

3.7. Investment Opportunities in Trinidad and Tobago 37 3.7.1 Food & Beverage Industry 37 3.7.2 Metals Processing Industry 38 3.7.3 Printing and Packaging 38 3.7.4 Chemicals, Pharmaceuticals and Plastics 39 3.7.5 Marine Industries 39 3.7.6 Tourism 41 3.7.7 Film and Entertainment Sector 42 3.7.8 Information Communication Technology / Electronics 43

3.8. Support Services 43 3.8.1. Network of Support Services 43 3.8.2. TIDCO 44

3.9. Environmental Issues 45

IV. THE FINANCIAL SYSTEM 46

4.1. Interest Rates 46

4.2. Foreign Currency Accounts 47

4.3. Access to Long-Term Finance 47

4.4. Venture Capital Incentive Programme 47

4.5 The Capital Market - Bonds, Mutual Funds and Stock Market 48 4.5.1. Bonds 48 4.5.2. Mutual Funds 50 4.5.3. Stock Market 50


iivv

V. POLITICAL SYSTEM 52

5.1. Parliament, House of Representatives and the Senate 52

5.2. Role of the President and the Prime Minister 52

VI. LABOUR 53

6.1. Labour Force 53

6.2. Minimum Wages 54 6.2.1. Normal Working Hours 54 6.2.2 Overtime Remuneration 54

6.3. Retrenchment and Severance Benefits Act 55

6.4 Holidays 55

6.5 Trade Unions 55

6.6 Social Security 56

6.7 Occupational Safety and Health 56

6.8 Labour Exchange 56

VII. ESTABLISHING A BUSINESS 57

7.1. Principal Forms of Business 57 7.1.1. Public and Non-Public Limited Liability Companies 57 7.1.2. External Companies 57

7.2. Share Capital 58

7.3. Procedures for Incorporating a Company in Trinidad and Tobago 58 7.3.1. Registration Fees 59 7.3.2. Incorporation Procedures 59 7.3.3. Name Search / Name Reservation 60 7.3.4. Articles of Incorporation 60 7.3.5. By- Laws 60

7.4. Other Requirements 60 7.4.1 Comparative Financial Statements 60 7.4.2. Corporate Records 61

7.5. Management 61

7.6. Audit Requirement 61

7.7. Dividends 61


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7.8. Accounting Principles 62

7.9. Registering for Value Added Tax (VAT) 62

7.10. National Insurance, Income Tax and Health Surcharge 63

VIII. TRADE AND INVESTMENT APPROVALS AND PROCEDURES 66

8.1. Investing in Trinidad and Tobago 66 8.1.1. Circumstances Under Which Licences Are Required 66 8.1.2. Applications for Incentives 66

8.2. Import and Export Procedures 67 8.2.1. Importing 67 8.2.2. Exporting 68

8.3. Obtaining Commercial Property 71 8.3.1. Office Space 71 8.3.2. Constructing Properties 71 8.3.4. Buying an Existing Property 74

8.4. Work Permits, Resident Status, Visas and Passports 74 8.4.1. Work Permits 74 8.4.2. Resident Status 76 8.4.3. Visas 76 8.4.4. Passports 79

8.5. Intellectual Property 79 8.5.1. Intellectual Property 79 8.5.2. Trade Marks 80 8.5.3. Patents 81 8.5.4. Industrial Designs 81 8.5.5. Copyright 82 8.5.6. Geographical Indications 83 8.5.7. Layout Designs 83 8.5.8. Unfair Competition 83 8.5.9. New Plant Varieties 83

IX. INVESTMENT INCENTIVES 85

9.1. Regulation 85

9.2. Import Duty Concessions 85

9.3. Tax Holiday - Fiscal Incentives Act 85

9.4. Tax Holiday – Tourism Development Act 86

9.5. Investment Incentives - Free Zones Act 87 9.5.1. Free Zones Company 88

9.6. Construction Incentives 88


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9.6.1. Approved Property Development Company 88 9.6.2. Housing Act Exemptions 88 9.6.3. Other Construction Tax Incentives 88

9.7. Special Classes of Company 89

9.8. Loss Relief 89

9.9. Special Tax Allowances for Exporters 89

9.10. Venture Capital Act 90

9.11. Non-Tax Incentives 90

9.12 Agricultural Incentives 90

X. THE TAX SYSTEM 92

10.1. The Tax System 92 10.1.1. Principal Taxes 92

10.1.2. Basic Legislation 92

10.1.2. Basic Legislation 93 10.1.3. Powers of The Board of Inland Revenue 93 10.1.4. Administration 93 10.1.5. Tax Year 93 10.1.6. Tax Returns 94 10.1.7. Assessment and Audit 94 10.1.8. Disputes and Appeals 94 10.1.9. Penalties and Interest 95

10.2. Corporate Taxes 95 10.2.1. Resident Companies 95 10.2.2. Non-resident Companies 95 10.2.3. Close Companies 96 10.2.4. Tax Treatment of Partnerships 96 10.2.5. Joint Ventures 96 10.2.6. Taxable Income and Allowable Deductions 96 10.2.7. Tax Treatment of Losses 103 10.2.8. Groups of Companies 104 10.2.9. Taxation of Branches of Foreign Companies 104 10.2.10. Corporate Tax Rates 104 10.2.11 Business Levy 105 10.2.12 The Green Fund Levy 105 10.2.13. Reorganizations 106 10.2.14. Payment of tax 107

10.3. Withholding Taxes 107 10.3.1. Dividends 107 10.3.2. Branch Profits 107 10.3.3. Interest 107


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10.3.4. Other Payments 108 10.3.5. Salaries and Wages 111 10.3.6. Collection of Tax and Penalties 111

10.4. Double Taxation Relief and Tax Treaties 111 10.4.1. Unilateral Relief 111 10.4.2. Tax Treaties 112

10.5. Tax Treatment Of Specific Industries 112 10.5.1. Petroleum Operations 112 10.5.2. Tourism Industry 113 10.5.3. Yachting Services 113

10.6. Taxes On Individuals 113 10.6.1. Basic Principles 113 10.6.2. Taxable Income 114 10.6.3. Employment Income 114 10.6.4. Dividends 114 10.6.5. Capital Gains 114 10.6.6. Loss Relief 115 10.6.7. Allowable Deductions 115 10.6.8. Personal Allowances 115 10.6.9. Personal Tax Rates 116 10.6.10. Special Tax Treatment of Foreign Nationals 116 10.6.11. Tax Payments, Returns and Appeals 116

10.7. Other Taxes 116 10.7.1. Customs and Excise Duties 116 10.7.2. Social Security Contributions 116 10.7.3. Value Added Tax (VAT) 116 10.7.4. Stamp Duty on Conveyance of Real Estate 117 10.7.5. Real Estate Taxes 117 10.7.6. Road Traffic Licence and Vehicle Transfer Tax 117 10.7.7. Betting, Gaming and Lotteries 117 10.7.8. Insurance Premium Tax 118 10.7.9. Hotel Room Tax 118

XI. EXPATRIATE LIVING, CULTURE AND TOURISM 119

11.1. Housing 119

11.2. Medical Facilities 119

11.3. Schools 119 11.3.1. The Educational System 119 11.3.2. Access to Schools 120 11.3.3. International Schools 120

11.4. Cost of Living 121

11.5. Importing a Car into Trinidad and Tobago 122


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11.6 . Obtaining a Driver’s Permit 123

11.7. Animal Quarantine 124

11.8. Tourism and Leisure 124

11.9. Cultural Events 125

11.10. Transport 125

11.11. Commercial Practices, Cultural Norms and Safety Tips 126 11.11.1. Business Hours 126 11.11.2. Business Attire 126 11.11.3. Walking 126 11.11.4. Sightseeing 126

XII. UTILITY RATES AND RAW MATERIAL CAPACITY 127

12.1. Electricity Rates 127

12.2. Water Rates 127

12.3. Natural Gas Prices 128

12.4. Raw Material Resources 128

12.5. Telephone and Telecommunication Services 129

12.6 Internet Access 130

12.7. Satellite Communications 130

12.8. Postal Services 131

APPENDICES 132

INDEX 151

Guide To Investing In Trinidad & Tobago

iixx

TABBLLEE IINNDDEEXX

SECTION TABLE / CHART NAME AND NO. I. TRINIDAD AND TOBAGO IN

BRIEF 1.3.3.1. Ethnic Groups 1.3.4.1. Religions 1.4. Map of Trinidad and Tobago

II. TRADE INFORMATION 2.1.1.1. Major Exports

2.1.2.1. Major Imports 2.1.3.1. Main Trading Partners 2.3.1. Regional Markets 2.4.3.1. Country/Airline(s) Serving with Direct Flights 2.4.4.1. Airport Facts and Figures

III. BUSINESS ENVIRONMENT 3.1.1.1. Real GDP Growth (%)

3.1.1.2. Growth in GDP by Sector 3.1.2.1. Unemployment Rate (%) 3.1.3.1. Inflation Rate (%) 3.1.4.1. Balance of Payments 3.1.5.1. (a) Average Exchange Rate (Annual, 1998-2003) 3.1.5.1. (b) Weighted Average Exchange Rate (Quarterly, 1998-2003) 3.2.1.1. Typical Gas Composition

IV. THE FINANCIAL SYSTEM 4.1.1. Interest Rates (At First Quarter of 2003, Local Currency)

4.1.2. Interest Rates (At First Quarter of 2003, Foreign Currency) VI. LABOUR 6.1.1. Students Enrolled In Government And Assisted Schools

6.1.2. Labour Force Statistics 6.2.2.1. Average Wage Rates in Construction/Building Services Sector 6.2.2.2. Average Wage Rates in Furniture Manufacturing Sector 6.2.2.3. Average Wage Rates in Restaurant & Hotel Sector 6.2.2.4. Average Wage Rates in Construction, Electricity, Water & Sewerage Services Sector 6.2.2.5. Average Wage Rates in Construction, Electrical & Plumbing Services 6.2.2.6. Labour Rates for Selected Industries (US$) 6.5.1. Holidays

VIII. TRADE AND INVESTMENT

APPROVALS AND PROCEDURES 8.2.2.1. Export Licences, Certificates and Procedures 8.3.3.1. Constructing A Building 8.4.3.1. Countries Having Visa Abolition Agreements with Trinidad &

Tobago

X THE TAX SYSTEM 10.3.4.1.Withholding Tax Rates

XI. EXPATRIATE LIVING, CULTURE AND TOURISM

11.4.1. Sample of Prices in Trinidad and Tobago 11.5.1. Motor Vehicle Tax

XII. MISCELLANEOUS

INFORMATION

12.1.1. Electricity Rates 12.2.1. Water Rates 12.3.1. Natural Gas Prices 12.4.1 Raw Material Resources 12.5.1. Overseas Rates per Minute (in TT$) for Direct Dialling


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AABBBBRREEVVIIAATTIIOONNSS

Abbreviation Explanation Abbreviation Explanation ACP African, Caribbean & Pacific J$ Jamaican Dollars ACS Association of Caribbean States LDCs Less Developed Countries ATV Annual Taxable Value NAFTA North American Free Trade Agreement B$ Barbados Dollars NAR National Alliance for Reconstruction BIR Board of Inland Revenue NIB National Insurance Board BWIA BWIA International Airways Limited NIHERST National Institute of Higher Education

(Research Science and Technology) CIF Cost Insurance Freight NIS National Insurance System CARIBCAN Caribbean-Canadian Trade Agreement NZPIL New Zealand Post International Limited CARICOM Caribbean Community OAS Organization of American States CARIRI Caribbean Industrial Research Institute PATT Port Authority of Trinidad and Tobago CBI Caribbean Basin Initiative PAYE Pay-as-you-earn CDB Caribbean Development Bank PIDCOTT Property and Industrial Development

Company of Trinidad and Tobago Ltd. COSTAATT College of Science Technology &

Applied Arts of Trinidad and Tobago PLIPDECO Point Lisas Industrial Port Development

Company CSO Central Statistical Office PNM People’s National Movement CXC Caribbean Examinations Council SAS Specialized Airline Services DMA Delegated Management Agreement BDC Business Development Company EC$ Eastern Caribbean Dollars TIDCO Tourism and Industrial Development

Company of Trinidad & Tobago Limited ECLAC United Nations Economic Commission

for Latin America and the Caribbean TRIPS Trade Related Aspects of Intellectual

Property Rights Agreement EMA Environmental Management Authority TSTT Telecommunications Services of Trinidad

and Tobago Limited FAO United Nations Food & Agricultural

Organization TT$ Trinidad & Tobago Dollars

FOB Free on Board TTBS Trinidad and Tobago Bureau of Standards G$ Guyanese Dollars T&TEC Trinidad & Tobago Electricity

Commission GATT General Agreement on Tariffs and Trade TTMA Trinidad & Tobago Manufacturers

Association GCE General Certificate of Education UK United Kingdom GDP Gross Domestic Product UN United Nations GSTP Global System of Trade Preferences UNC United National Congress IICA Inter American Institute For Cooperation

in Agriculture UNDP United Nations Development Programme

IDB Inter American Development Bank UNESCO United Nations Education Scientific & Cultural Organization

IFC International Finance Corporation UTC Unit Trust Corporation ILO United Nations International Labour

Organization VAT Value Added Tax

IMF International Monetary Fund WASA Water & Sewerage Authority ISPS International School of Port of Spain WHO World Health Organization WIPO World Intellectual Property Organization


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II.. TTRRIINNIIDDAADD && TTOOBBAAGGOO IINN BBRRIIEEFF

Trinidad and Tobago is one nation state comprised of two islands, situated at the southernmost end of the Caribbean chain, with Trinidad being only 7 miles (10 kilometres) off the coast of Venezuela. A former British colony and now a Republic, English is the official language spoken among its population estimated at mid-year 2002 to be 1,275,705. Trinidad is rich in many natural resources from oil and natural gas to a wide variety of flora and fauna. Trinidad was once part of the South American mainland hence the richness of its vegetation, and the distinct resemblance of its flora and fauna to that of the continent. Tobago has white sandy beaches and clear turquoise waters due to the presence of coral around the island.

11 ..11 .. CCaappii ttaall

The capital of Trinidad and Tobago and the main centre of government is Port of Spain, which is situated in the northwest of the island of Trinidad. San Fernando, the second largest city in the country, situated in south Trinidad, is considered “the industrial capital” of the country. The principal administrative centre of Tobago is Scarborough.

11 ..22 .. LLaanndd aanndd CCll iimmaattee

Land The island of Trinidad, the larger of the two, has an area of 4,828 square kilometres (1,864 square miles) and is situated at 10.5 degrees north of the equator. Trinidad has a mountain range running along the north coast of the island with the highest peak rising to 940 metres (3,085 feet) and rolling hills in the south of the island. Much of the north coast is densely forested and is home to a number of wild species. Many of the island’s more popular beaches are located on the north coast. There is a flat central plain where sugar cane is grown and much of the island’s wet-lands can be found. Tobago is 300 square kilometres (116 square miles) in area and is situated just 32 kilometres (20 miles) off the northeast coast of Trinidad, 11 degrees north of the equator. Tobago has a central hilly range with a flat area in the south and west of the island where much of the island’s tourism has developed. Climate The islands are warm year-round, with a mean air temperature ranging between 32 degrees Celsius (90 degrees Fahrenheit) at the maximum and 23 degrees Celsius (73 degrees Fahrenheit) at the minimum. There are only two seasons, a ‘dry’ that lasts from about January to May and a ‘wet’ that lasts from June to December. The annual rainfall is approximately 2,000 mm and the average number of hours of daylight is approximately 11 hours per day.

11 ..33 .. HHiiss ttoorryy aanndd CCuull ttuurree

11 ..33 ..11 .. HHiiss ttoorryy

Before the arrival of Christopher Columbus in 1498 the islands were inhabited by

TTrriinn iiddaadd aanndd TToobbaaggoo iinn BBrriieeff


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Amerindian tribes mainly the Caribs and the Arawaks. The indigenous people were no match for the bold Europeans but many aspects of Amerindian culture were preserved and many towns, rivers and boroughs are named with Amerindian words Trinidad remained in the hands of the Spanish from the 15th century until it was captured by the British in 1797. During the Spanish rule, very few Europeans settled in Trinidad until the 1780’s, when Spain, through the Cedula Act, invited Roman Catholics to settle in Trinidad with their slaves in exchange for grants of land. This was during the time of the French revolution, and many French accepted the offer made by the Spanish to colonise Trinidad.

French planters from the French islands of Martinique and Guadeloupe also settled in Trinidad during this time. The plantation owners cultivated sugarcane, coffee and cocoa, and brought with them African slaves to cultivate the land. The Cedula changed the face of Trinidad dramatically in a few short years. When the British arrived, they met a country ruled by the Spanish but inhabited by French speaking citizens. Tobago’s history is very different from that of Trinidad. The island changed hands many more times and was ruled at one time or another, by the Spanish, Dutch, French or British. As a result of several hundred years of wars, pirate attacks, invasions and captures, most bays in Tobago are overlooked by Forts. Many of these are preserved as historic monuments, each with a story that closely relates the island’s history.

Trinidad became a British colony in 1802 and Tobago in 1814. They were enjoined administratively by the British in 1889 and then politically linked as a joint colony in 1890.

With the abolition of slavery in 1834 planters found themselves without the traditional cheap labour to cultivate their agricultural plantations. This shortfall in labour was met by Indian indentured labourers who began to arrive in Trinidad in 1845. They emigrated from Bengal, Bombay, Madras, Punjab and other provinces, and were comprised of both Muslims and Hindus. Chinese and Portuguese from the island of Madeira, also came as indentured labourers. Many Syrian and Lebanese also came to Trinidad and played an important role in commerce, particularly in the textile and retail industries. The history of Trinidad and Tobago is largely one of immigration and changing economies. Each group of immigrants brought with them their cultural practices, religions, languages and dress. Some festivals that make up Trinidad and Tobago’s unique culture also owe their origin to the people who came; these include Carnival, Divali and Hosay.

Before the 19th century the islands, like most colonies, developed as primary producers, supplying sugar and cocoa to be traded on the international market. Traders from England, Scotland, Germany, France and the United States, came to Trinidad as salesmen, entrepreneurs and bankers. Compared to the other islands, Trinidad was considered a wealthy, cosmopolitan country.

The direction of the Trinidad and Tobago economy began to change in the 1850s with the discovery of oil in Trinidad and the commercialisation of the petroleum industry during the early 20th century. The first oil deposits were discovered in 1866 and crude oil production had begun by 1908. In 1912, the first oil refinery in Trinidad was established. In 1954, marine drilling began off the west coast of the island. In 1959, commercialisation of natural gas began with the establishment of the first ammonia plant. By 1986, the first commercial oil and gas discoveries were made off the east coast.



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During the 1970’s with the oil boom, Trinidad and Tobago was well poised to use the revenue generated from the increased production in the energy sector, to diversify its economy. Today, petrochemical products represent the major source of foreign exchange earnings for the country.

11 ..33 ..22 .. LLaanngguuaaggee

English is the official language used in Trinidad and Tobago.

Spanish and French are taught at many of the nation’s schools. There are also institutions in Trinidad, which offer opportunities to study Spanish, French, Hindi, Japanese, Portuguese and German. Translation and interpretation services in German, Spanish and French are available. For information on these services, persons may contact the relevant foreign missions or:

The School of Languages

College of Science Technology and Applied Arts of Trinidad and Tobago

6 Alcazar Street Port of Spain TRINIDAD

TEL:- 1-868-628-4600 Fax: 1-868-628-8088

11 ..33 ..33 .. EEtthhnniicc CCoommppooss ii ttiioonn

Trinidad and Tobago prides itself on being a cosmopolitan nation, where people of all races and religions live and work in harmony.

Table 1.3.3.1 Ethnic Groups

Ethnic Group Percentage of Population (1990 census)

East Indian Descent 40.3

African Descent 39.6 Mixed 18.4 Caucasian 0.6 Chinese 0.4 Other 0.2

Not Stated

0.4

Source: Central Statistical Office * Based on sample survey and ext rapolation, figures do not add up due to rounding.



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11 ..33 ..44 .. RReell iigg iioonn

Several religions are practised in Trinidad and Tobago. Roman Catholicism is predominant according to official statistics.

Table 1.3.4.1 Religions

Religion Percentage of Population (1990 census)

Roman Catholic 29.4 Other Christian 25.7 Hindu 23.8 Anglican 10.9 Presbyterian 3.4 Islam 5.8 Not Stated 1.0 Total 100.0

Source: Central Statistical Office

IIII.. TTrraaddee IInn ffoorrmmaatt iioonn


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IIII.. TTRRAADDEE IINNFFOORRMMAATTIIOONN

Trinidad and Tobago is well poised to become a hub for transhipment and trading with South, Central and North America as well as the Caribbean. This is due to its strategic location, air and sea links, its well-developed human resource base and the existing, as well as new, trade agreements with countries in these regions. In particular, the Government is moving fast to establish trading relationships with its South American neighbours.

22 ..11 .. EExxppoorrttss aanndd IImmppoorrttss

22 ..11 ..11 .. EExxppoorrttss

Exports from Trinidad and Tobago can be divided into 4 major areas:

§ Energy based including crude oil and refined petroleum products, methanol, urea, anhydrous

ammonia, iron and steel products; § Traditional agricultural exports including sugar, cocoa, coffee and citrus; § Non-traditional agricultural exports such as processed fish, shrimp, vegetables and fruit, as

well as cut flowers; § Manufactured goods of a wide variety from foodstuffs, alcoholic and non-alcoholic beverages,

to air-conditioning units and motor vehicle batteries.

The Energy sector has been the most significant contributor to foreign exchange earnings of the country. Crude oil and refined products account for around 45% of total export earnings while petrochemical exports account for around 30% of export earnings.

The country’s top exports in terms of value are provided in table 2.1.1.1.

Table 2.1.1.1 Major Exports

Exported Products 2002 Values (F.O.B.) TT$000

Exported Products 2002 Values (F.O.B.) TT$000

Beverages 412,687.6 Misc. Food preparations 73,723.0

Cereal, Cereal Preparations 172,474.0 Coffee, Tea, Cocoa, Spices 44,243.6

Fertilizers, Manufactured 250,693.0 Misc. manufactured articles 152,665.2

Gas natural & manufactured 3,112,105.8 Sugar, sugar preps. & Honey 181,975.3

Ind. Mach. Equip & Parts NES 116,107,2 Feeding Stuff for Animals 69,590.3

Inorganic Chemicals 1,634,381.6 Tobacco and Manufactures 53,108.6

Iron and steel 1,624,267.0 Perfume Material 125,507.7

Organic Chemicals 950,611.5 Manufactures of metals N.E.S. 95,892.2

Paper Manufactures 266,774.3 Fish, fish Preparations 53,903.0

Petroleum and Products 7,943,331.9 Chemical Products N.E.S 30,154.9

Feeding Stuff for Animals 69,590.3

Source: Trade Bulletin, Central Statistical Office, January - September 2002



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22 ..11 ..22 .. IImmppoorrttss

The country’s top imports in terms of value are provided in table 2.12.1.

Table 2.1.2.1 Major Imports

Imports 2002 Values (F.O.B.) TT$000

Imports 2002 Values (FO.B.) TT$000

Petroleum Products 4,858,958.0 Manufactures of Metal N.E.S. 347,027.2

Ind. Mach. Equipment & Parts NES 1,629,727.0 Off. Mach. & Data. Pro. Equipment 259,815.8 Other Transport Equipment 1,443,880.7 Chemical Products N.E.S. 325,926.7

Road Vehicles 714,255.5 Power Gen. Mach. and Equip. 283,097.5

Iron and Steel 776,568.8 Textile Yarn, Fabrics etc 242,799.6

Mach. for Particular Ind. 460,467.8 Scientific Apparatus N.E.S. 236,781.1

Telecom Apparatus & Equip. 446,602.5 Cereal, Cereal Preparations 233,688.5

Paper Manufactures 377,250.9 Vegetables and Fruits 225,217.4

Misc. Manufactured Articles 370,346.5 Non-metal Mineral Manufactures 204,374.9

Source: Trade Bulletin, Central Statistical Office, January - September 2002

22 ..11 ..33 .. MMaaiinn TTrraaddiinngg PPaarrttnneerrss

Table 2.1.3.1 Direction of Trade Exports 1998- September 2002 (%)

Countries 1998 1999 2000 2001 2002United States 36.5 38.9 43.1 43.4 46.8United Kingdom 2.0 2.3 1.7 1.6 1.5Caricom 29.0 25.8 22.6 24.1 20.5ECM 4.2 3.4 4.3 3.2 3.4Latin America 9.6 9.4 8.0 7.5 7.6Other Countries 18.7 20.1 20.4 20.2 20.2


22 ..22 .. IInntteerrnnaattiioonnaall AAss ss oocciiaattiioonnss aanndd TTrraaddee AAggrreeeemmeennttss

22 ..22 ..11 CCAARRIICCOOMM

Caribbean integration began in the form of a political union with the establishment of the West Indies Federation in 1958. After the end of the Federation in 1962, a limited free trade agreement was conceptualised in the form of the Caribbean Free Trade Association (CARIFTA) in May 1968. It was superseded by CARICOM when Barbados, Guyana, Jamaica and Trinidad and Tobago signed the Treaty of Chaguaramas on July 4, 1973 to create the Caribbean Community. The CARICOM Treaty is twofold, in that:



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• Firstly it is a Common Market which acts as a single country, with common barriers

against imports from outside through the instrument of a Common External Tariff (CET)

• Secondly, it is also a Community which a harmonised foreign policy and functional co-operation in areas such as education, health and transport. This Community has a host of associate institutions for carrying out its functions.

It includes 15 members comprised as follows:-

• 13 English-speaking member countries – Barbados, Guyana, Jamaica and Trinidad and Tobago (the More Developed Countries – MDCs), along with Antigua and Barbuda, Belize, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines (referred to as the Less Developed Countries – (LDCs). The Bahamas became the 13th member state in July 1983 but did not join the Common Market

• Suriname became the 14th member, and first non-English speaking partner in February of 1995.

• The 15th member is Haiti, however, it is not yet part of the Common Market and Community, as it has not yet ratified to the Treaty.

Goods manufactured in CARICOM member countries are allowed duty free access into any of the fifteen (15) member countries except the Bahamas and is subject only country-specific taxes such as the Value Added Tax (VAT). CARICOM has also put in place a system to harmonize the classification system and custom rates applied to imported goods from outside the CARICOM region. This is referred to as the Common External Tariff (CET). Under the CET, goods imported from outside the region into any CARICOM member country are classified in the same way and are subject to same rate of duty in all member countries. Since July 1st 1998, CARICOM tariff levels have been reduced to the targeted range of 0 to 20 percent.

In 1989, the Heads of Government of CARICOM decided in the Grande Anse Declaration to work towards the establishment of the Caribbean Single Market and Economy (CSME). The CSME is a regional plan, which seeks to unite the markets and economies of all participating countries through common arrangement and facilities. This was a desirable objective, given the momentum of globalisation and the greater demands on co-ordination and collaboration among small states. Basically, the CSME provides for the free movement of goods, persons, services and capital.

Agreements CARICOM – Dominican Republic

The Protocol implementing the Agreement establishing the Free Trade Area between the Caribbean Community and the Dominican Republic was signed in April 2000. With the entry into force of the Agreement (no date has been determined) more the 85% of the trade between CARICOM and the Dominican Republic would be free of duty and quantitative restrictions Negotiations for the liberalization of trade in services will begin in the near future.



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CARICOM – CUBA The Trade and Economic Co-operation Agreement between the Caribbean Community (CARICOM) and the Government of the Republic of Cuba was signed in July 2000.

22 ..22 ..22 IInntteerrnnaattiioonnaall OOrrggaanniizzaattiioonnss

Trinidad and Tobago is a member of the Organization of American States and the United Nations and many of its specialised agencies, including the World Intellectual Property Organization (WIPO), as well as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (World Bank), the World Trade Organization (WTO), the International Development Association, the International Finance Corporation (IFC), the Inter-American Development Bank (IDB) and the International Labour Organization (ILO).

This country is also a member of the regional Caribbean Development Bank (CDB) and the Andean Development Bank, whose aim is to contribute to the economic growth of, and co-operation among member states. As a signatory to the World Trade Organization, Trinidad and Tobago benefits from the main substantive agreements which fall within the purview of this multilateral trading system, specifically the General Agreement on Tariffs and Trade (GATT), the General Agreement on Trade in Services (GATS) and the Agreement on Related aspects of Intellectual Property Rights (TRIPS). Trinidad and Tobago benefits from a number of trade agreements with traditional trading partners including the Lomé Conventions between the European Community and developing countries of Africa, the Caribbean and the Pacific (ACP), US Caribbean Basin Initiative (CBI) and the Caribbean-Canadian Trade Agreement (CARIBCAN). The Government of Trinidad and Tobago is currently engaged in negotiations for the Free Trade Area of the Americas (FTAA). This agreement is expected to come into effect by 2005 and will eliminate trade and investment barriers on virtually all goods and services traded by 34 member countries of the FTAA. Trinidad and Tobago has also entered into Bilateral Investment Treaties with the Governments of Canada, France, the United Kingdom, the United States, Cuba, Spain, China and South Korea. Association of Caribbean States (ACS) The Association of Caribbean States is a regional organization, which governs consultation, cooperation and concerted action in the areas of trade, transport, sustainable tourism and natural disasters. The Convention establishing the ACS was signed on 24 July 1994, in Cartagena de Indias, Colombia. Trinidad and Tobago officially headquarters this regional grouping comprising 25 member states and 3 associate member states. Eight other non-independent Caribbean countries are eligible for associate membership.



99

The ACS members include: Antigua and Barbuda, Bahamas, Belize, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, El Salvadore, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, St. Lucia, St. Lucia, St. Kitts,and Nevis, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago and Venezuela. Its Associate Members include Aruba, France (on behalf of French Guiana, Guadeloupe and Martinique) and the Netherlands Antilles.

22 ..22 ..33 .. CCaarriibbbbeeaann BBaass iinn IInnii ttiiaattiivvee ((CCBBII))

Trinidad and Tobago is a Caribbean Basin Initiative (CBI) beneficiary country. The CBI is a broad programme to promote economic development through private sector initiative in the Central American and Caribbean countries. Its major goal being to expand foreign and domestic investment in non-traditional sectors, thereby diversifying CBI countries’ economies and expanding their exports. The Caribbean Basin Economic Recovery Act of 1983 (amended in 1990) provides customs duty-free entry to the United States on a permanent basis for a broad range of products from CBI beneficiary countries. The Beneficiary Countries of the CBI include: Antigua and Barbuda, the Bahamas, Barbados, Belie, the British Virgin Islands, Costa Rica, Dominica, the Dominican Republic, El Salvadore, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Monserrat, the Netherlands Antilles, Nicaragua, Panama, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago. Please note that four additional countries – Anguilla, the Cayman Islands, Suriname and the Turks and Caicos- are eligible but have not formally requested designation. Puerto Rico and the US Virgin Islands are treated as beneficiaries for the purpose of duty-free treatment. The major elements of the CBI programme available to all CBI beneficiary countries are: § Duty-free entry to the United States for a wide range of products grown and

manufactured in CBI countries in order to stimulate investment and expanded export production.

Eligible Products: ⇒ Electronic and electro-mechanical assembly ⇒ Handicraft, giftware and decorative accessories ⇒ Wood products, including furniture and building materials ⇒ Recreational items, such as sporting goods and toys ⇒ Fresh and frozen seafood ⇒ Tropical fruit products and winter vegetables ⇒ Ethnic and speciality foods, such as sauces, spices, liqueurs, etc. ⇒ Ornamental horticulture ⇒ Medical and surgical supplies

⇒ ⇒ However, the CBI law excludes the following articles from duty-free entry status:

⇒ Most textiles and apparel1 ⇒ Canned tuna ⇒ Petroleum and petroleum products ⇒ Footwear, except disposable items and footwear parts such as uppers ⇒ Certain leather, rubber and plastic gloves ⇒ Luggage, handbags, and flat goods

11 UUnnddeerr CCBBII,, tteexxttiillee pprroodduuccttss mmaaddee ooff ssiillkk bblleennddss oorr ooff vveeggeettaabbllee ffiibbrreess ootthheerr tthhaann ccoottttoonn mmaayy eenntteerr dduuttyy--ffrreeee;; bbiillaatteerraall aaggrreeeemmeennttss mmaayy bbee nneeggoottiiaatteedd ttoo ppeerrmmiitt dduuttyy--ffrreeee eennttrryy ooff cceerrttaaiinn ttrraaddiitt iioonnaall hhaanndd--lloooommeedd,, hhaanndd--sseewwnn aarrttiicclleess..



1100

⇒ Certain leather apparel ⇒ Watches and parts, except any component originated in a communist country

§ CBI Textile programme: A special access programme (Guaranteed Access Levels) for

textiles and apparel that guarantees markets for apparel assembled from U.S. -formed and cut material.

§ CBI Government Procurement: National treatment for producers in CBI countries in

bidding for certain types of U.S. Government procurement opportunities.

§ Exemption for CBI exports to the US from US Import Merchandise Processing Fees.

§ A wide range of US government, state government, and private sector business development programmes, including trade and investment financing, business missions, and technical assistance programmes, partially supported through US foreign economic assistance.

22 ..22 ..44 CCoottoonnoouu AAggrreeeemmeenntt

The European Community and its Member states signed a new Partnership Agreement with the African, Caribbean and Pacific (ACP) states in Cotonou, Benin on June 23, 2000. This agreement replaces the Lome convention, which had provided the structure for trade and cooperation between the EU and the ACP since 1975.

The Cotonou Agreement extends preferential treatment to many products from African, Caribbean and Pacific nations allowing them to enter the European Community duty-free and without quota restrictions. Only products originating in the ACP nations qualify for this preferential status.

22 ..22 ..55 .. CCaarriibbccaann

Caribcan is the Canadian Government’s programme that provides duty-free access to the Canadian market for most Commonwealth Caribbean exports.

Products, with the exception of textiles and apparel, footwear, luggage and handbags, leather garments, lubricating oils and methanol, are eligible for duty-free status if they are certified as being grown or manufactured in the Commonwealth Caribbean, defined as having a minimum input of 60 percent of the ex-factory price of the goods (including overhead and reasonable profits) originating in any of the Commonwealth Caribbean countries or in Canada.

22 ..22 ..66 CCAARRIICCOOMM//RReeppuubbll iicc ooff VVeenneezzuueellaa AAggrreeeemmeenntt

The Agreement on Trade and Investment between the Caribbean Community (CARICOM) and the Republic of Venezuela was signed on October 13, 1992 and entered into force on January 01, 1993.

The fundamental objective of this agreement is to strengthen the economic and trade



1111

relations between CARICOM and Venezuela (hereafter referred to as “the Parties”) through:

A) The promotion and expansion of the sale of goods originating in CARICOM through,

inter alia, one-way duty-free access to the Venezuelan market; B) The stimulation of investments aimed at taking advantage of the markets of the

Parties and strengthening their competitiveness in world trade; C) The facilitation of the creation and operation of regional joint ventures; and D) The encouragement of mechanisms for the promotion and protection of investments

by nationals of the Parties.

As such, Venezuela has agreed to grant products originating in Member States of the CARICOM, free access to its markets by means of the implementation of programmes of tariff reduction and the elimination of non-tariff barriers according to detailed schedules laid out in the agreement, with the exception of certain items including but not limited to, beef, certain milk products, coffee & cocoa beans, vegetable oils & fats, orange juices, oxygen, carbon dioxide, nitrous oxides, anhydrous ammonia, aluminium sulphate, other carboxylic acids, medicaments constituted by a mixture of products prepared for therapeutic or prophylactic use, urea, paints and varnishes based on modified synthetic or natural polymers, dissolved in an aqueous or non-aqueous medium, insecticides, disinfectants and a variety of iron & steel products. In 2001, the Venezuelans requested a revision of the Agreement so as to effect reciprocal preferential treatment for its exports into the Caricom market. Two Joint Council Meetings between Venezuela and Caricom were subsequently held in October and December of 2002. Further negotiating rounds are to be scheduled to address the issue. When the revised Agreement is finalis ed, qualifying goods imported into Caricom from Venezuela will be accorded duty-free exemption.

22 ..22 ..77 .. CCAARRIICCOOMM//RReeppuubbll iicc ooff CCoolloommbbiiaa AAggrreeeemmeenntt

The fundamental objective of this agreement is to strengthen the economic and trade relations and technical cooperation between CARICOM and Colombia (hereafter referred to as “the Parties”) through: A) The promotion and expansion of the sale of goods originating in CARICOM and

Colombia with particular emphasis on exports from CARICOM states in the early stages of the implementation of this Agreement;

B) The promotion and protection of investments aimed at taking advantage of the opportunities offered by the markets of the Parties and strengthening their competitiveness in the international market;

C) The facilitation of the creation and operation of regional joint ventures; D) The development of technical and scientific cooperation activities which may be

agreed upon between the Parties; E) The promotion of private sector activities, including business exchanges between the

Parties.

The Parties have agreed to promote a programme of trade liberalization taking into account the difference in the levels of development between Colombia and CARICOM generally, and, in particular, those countries designated the Less Developed Countries (LDCs) of CARICOM.



1122

As such, Colombia has agreed to grant products originating in Member States of the CARICOM, free access to its markets by means of the implementation of programmes for the elimination of tariff and non-tariff barriers according to detailed schedules laid out in the agreement. In 2001, the Venezuelans requested a revision of the Agreement so as to effect reciprocal preferential treatment for its exports into the Caricom market. Two Joint Council Meetings between Venezuela and Caricom were subsequently held in October and December of 2002. Further negotiating rounds are to be scheduled to address the issue. When the revised Agreement is finalised, qualifying goods imported into Caricom from Venezuela will be accorded duty-free exemption

22 ..22 ..88 .. CCuubbaa//TTrriinniiddaadd aanndd TToobbaaggoo AAggrreeeemmeenntt

This agreement seeks to promote economic and social development in both countries through specific projects of mutual interest. The economic and technical cooperation consist primarily of: • Promotion of trade and investment between the two countries; • Exchange of technical information; • Joint programmes for cooperation and technical development; • Exchange of experts and specialized delegations; • Exchange of economic and technical surveys and published research; • Award of scholarships and training courses for different fields and programmes as

requested by the Governments of both countries; • Other forms of economic and technical cooperation as agreed by the countries.

22 ..33 .. CCaarriibbbbeeaann MMaarrkk eett FFaaccttss

Trinidad and Tobago’s strategic position at the cross-roads between the Caribbean and North and South America, offers investors and exporters an ideal base from which to penetrate markets throughout the region. In particular, many companies in Trinidad and Tobago have long developed access to markets throughout the Caribbean region, through direct investment, joint ventures or agency relationships, and are aggressively expanding their markets in the Latin American region. In addition, Trinidad and Tobago’s Free Zone Act supports companies set up as regional distributorships. Other advantages offered to investors and exporters include the ease of access from Trinidad to all these countries through the air and sea links, the potential for break bulk business and the financial and management capability in Trinidad and Tobago.



1133

Table 2.3.1.

Regional Markets Country Population 2002a

(millions) GDP Growth Cumulative

Average Rates 1997-2001

GDP Growth Annual Rates 2002

(Preliminary Figures)

GDP Growth Annual Rates

2003 (Projected Figures)

Barbados 0.269 2.1 -0.4 1.5

Belize 0.236 5.5 N/A N/A

Chile 15.589 3.3 2.1 3.5

Colombia 28.447 0.8 1.6 2.0

Cuba 11.273 3.8 N/A N/A

Dominican Republic 8.677 6.7 4.2 2.5

Ecuador 13.112 1.1 3.4 2.0

Guyana 0.756 1.9 2.0 1.5

Haiti 8.668 2.0 N/A N/A

Jamaica 2.621 0.2 2.0 2.0

Saint Lucia 0.151 0.2 1.0 1.8

Trinidad & Tobago 1.306 5.1 2.7 4.0

Venezuela 25.093 1.8 -8.8 -10.0

Source: United Nations Statistical Yearbook for Latin America and the Caribbean, 2002 Edition

a Figures based on projections using the average fertility hypothesis

22 ..44 .. TTrraannss ppoorrtt LLooggiiss ttiiccss

22 ..44 ..11 .. CCoommmmeerrcciiaall aanndd IInndduuss ttrriiaall AArreeaass

Major industrial and commercial areas in Trinidad and Tobago are as follows:

Area Activity In Trinidad

Port of Spain

San Fernando

Commercial centre in the North; Main centre for Government; location of seaport.

Commercial and Government centre in the South, approximately 50 kilometres (31 miles) from Port of Spain.

In Tobago



1144

Scarborough

Crown Point

Main commercial and Government centre in Tobago; Downtown Scarborough is within close proximity to tourist resorts on the west coast. Crown Point is the location of the international airport and is within close proximity (5 minutes) to many tourist resorts.

22 ..44 ..22 .. PPoorrttss

The islands of Trinidad and Tobago are situated in an unrivalled geographic location, enabling it to be transformed into an international centre for trade and transport. According to leading economists, the North American Free Trade Agreement (NAFTA) will promote a four-fold increase in cross-border trade between the USA and the Latin American/Caribbean region - trade that will flow right past Trinidad and Tobago. Furthermore, the country is perfectly situated to capture a share of the rapid trade growth that is forecasted to occur between South America and Pacific Rim countries, acting as a relay point for businesses in either region wishing to trade with Europe, redirecting cargo through the Panama Canal. The Government and the management of Trinidad and Tobago’s major ports - the Airports Authority, Point Lis as Industrial Port Development Company (PLIPDECO) and the Port Authority of Trinidad and Tobago (PATT), are determined to transform their facilities into world-class, self-financing transport hubs.

Please refer to the Official website of Port Authority of Trinidad and Tobago, http://www.patnt.com/ , for further information.

22 ..44 ..33 .. AAiirrppoorrttss && RRoouutteess

There are two international airports: Piarco International Airport which is located in Trinidad, about thirty-five minutes (25 km) from Trinidad’s capital Port of Spain, and Crown Point Airport which is located in Tobago, about fifteen minutes (11 km) from the capital, Scarborough.

Departure Tax

There is a departure tax of TT$100.00. Payment must be made in local currency only (approximately US$16.00 in total).

Direct Flights

There are a number of direct flights into and out of Trinidad and Tobago. These include flights to and from countries in the Caribbean, South America, North America and Europe. The domestic airlines are BWIA and Caribbean Star, flies between the two islands several times a day.

http://www.patnt.com/



1155

Table 2.4.3.1.

Country/Airline(s) Serving with Direct Flights Major Country/State Airline

Caribbean Antigua BWIA, LIAT; Caribbean Star Anguilla LIAT; Caribbean Star Barbados BWIA, LIAT, Caribbean Star Cuba BWIA Curaçao Dutch Caribbean Airlines (DCA) Dominica LIAT; Caribbean Star Dominican Republic BWIA Fort-de-France, Martinique LIAT; Air France Grenada BWIA, LIAT; Caribbean Star Kingston, Jamaica BWIA San Juan, Puerto Rico LIAT, American Airlines; American Eagle St. Lucia BWIA, LIAT, Caribbean Star St. Maarten BWIA, LIAT St. Vincent LIAT; Caribbean Star Tobago BWIA, LIAT, JMC, Condor, British Airways,

Monarch; Caribbean Star, Virgin Atlantic Tortola LIAT; Caribbean Star South / Central America Caracas, Venezuela BWIA, Aeropostal, Georgetown, Guyana BWIA, Surinam Airways; Universal Airlines Margarita Aeropostal; Avoir Surinam Surinam Airways; BWIA Costa Rica BWIA North America

Miami, Washington, New York BWIA, American Airlines; Pace Airlines; Universal Airlines; Continental Airlines

Toronto, Canada Air Canada, BWIA; Skyservice; Air Transat Europe London, Manchester ,England BWIA, British Airways (from Tobago)

22 ..44 ..44 .. CCaarrggoo FFll iigghhttss

There are various cargo airlines servicing Trinidad, including Fine Air, and Amerijet. Their schedules depend on demand. In addition, BWIA offers cargo services on their scheduled flights, and courier services, such as DHL and FEDEX use Trinidad as a consolidation point.



1166

Table 2.4.4.1. Airport Facts and Figures

Characteristics Piarco Crown Point Location Long. 61 deg. 20’ West;

Lat. 10 deg. 35’ North Long. 60 deg. 50’ West; Lat. 11 deg. 8’ North

Elevation 17.4m above sea level 13m above sea level

Runway Capability Length: 3200m; Width: 45.7m Load Classification: 2,961-3,600 KN

Length: 2744m; Width: 46m Load Classification: 2,585.2 KN

For information on airport fees and handling services contact: The General Manager Airports Authority of Trinidad & Tobago Airports Administration Centre Piarco International Airport Golden Grove Road Piarco P.O. Box 1273 Port of Spain TRINIDAD TEL: 1-868- 669-8047-9 FAX: 1-868-669-2319.

22 ..44 ..55 .. SS eeaa PPoorrttss

There are three major seaports in Trinidad & Tobago: the Port of Port of Spain, Trinidad, the Port of Scarborough, Tobago, and the Point Lisas port, Trinidad. The Ports in Trinidad are situated on the Western side of the island where bad weather rarely interrupts operations.

The Ports of Port of Spain and Scarborough are managed by the Port Authority of Trinidad and Tobago, while the port of Point Lisas, is managed by PLIPDECO, which also manages an Industrial Estate and Free Zone Area. The Port of Spain port is located near downtown Port of Spain. It covers 63.5ha and is capable of handling all major dry cargoes, containers, general cargo, break-bulk, and passenger traffic.

General Information - Port of Spain ∗ 11 Berths ∗ Total length of quay wall: 2,000m ∗ Container Terminal Berth Length: 410m ∗ Depth of Harbour: 10m ∗ Open Storage: 5ha ∗ Container Terminal Storage Area (including reefer storage): 10ha ∗ Stacking Capacity (containers): 120,000TEUs. ∗ Covered Storage (Shed): 4.2ha



1177

The Port in Scarborough is used mainly for inter-island cargo and cruise ships.

General Information - Scarborough ∗ Total length of quay wall: 468m ∗ Depth of Harbour: 9m

The Point Lisas Industrial Estate comprises 1000ha and about 44 sites. PLIPDECO’s port was originally developed as a specialised bulk port to serve the Estate’s growing number of industrial clients. The port has specialised installations for loading anhydrous ammonia, methanol and urea in bulk, loading Direct Reduced Iron and discharging of bulk iron ore. The port has since diversified with notable success, into handling containers and general cargoes.

General Information - Point Lisas ∗ 4 berths (30m, 90m, 105m and 110m for general cargo, Ro-Ro, Lo-Lo not

including specialised handling terminals) ∗ Depth of Harbour: 6.6m, 2.5m, 7m, 7.8m respectively ∗ Open Container Storage: 1,000m TEUs, ∗ Ro-Ro trailers container storage: about 4,000 m2, 164 TEUs ∗ Empty Ro-Ro containers: 4,000 m2, 204 TEUs ∗ Full Lo-Lo containers: 10,000 m2, 119 TEUs ∗ Covered Warehousing at Port: 2,624 m2 ∗ Covered Warehousing at Estate: 1,730 m2

Security is a top priority on the waterfront, especially in view of the rise in drug trafficking and vessel hijacking, internationally. Strict surveillance procedures have been implemented to ensure the safety of cargo and passengers, whilst not hampering the speed of operations.

22 ..44 ..77 .. RRooaaddss

Trinidad and Tobago has an extensive road network connecting all regions of the country. A six-lane highway as well as the two-lane Eastern Main Road connects the city of Port of Spain with the Piarco International Airport. A similar network of roads exists between the Crown Point Airport and the town of Scarborough in Tobago.

There are approximately 6,800 km of main roads and 2,000 km of agricultural access roads that are maintained by the relevant Government agencies in Trinidad and Tobago.

There is also an efficient road network connecting all Industrial Estates.

22 ..44 ..88 .. MMeeddiiaa

Newspapers

There are three English-language daily newspapers: the “Daily Express”, “Trinidad Guardian” and “Newsday.” There are also a host of weeklies including “Tobago News”.



1188

Radio

There are 15 national radio stations in operation in Trinidad and Tobago. Of these, 13 are Frequency Modulation (FM) and 2, Amplitude Modulation (AM) stations. Television

There are 3 local Television stations, 2 of which are fully commercial and one other that is an information channel. Cable Television There is one cable network that provides over 60 channels. Direct Television Direct TV is the first high-powered direct-to-home satellite service to Trinidad and Tobago and the Caribbean. Services being provided by the operator include: an interactive on screen guide that lets users scan and select programming choices with their remote controls, 56 television channels, 29 pay-per-view channels, 54 music-audio channels and 5 Spanish channels.

IIIIII.. BBuussiinneessss EEnnvviirroonnmmeenntt


1199

IIIIII.. BBUUSS IINNEESS SS EENNVVIIRROONNMMEENNTT

33 ..11 .. EEccoonnoommiicc TTrreennddss

Trinidad and Tobago is a major supplier on the world market for methanol, urea and anhydrous ammonia. In the 1970’s, Trinidad and Tobago’s economy was characterized by rapid economic growth largely as a result of the increase in international oil prices and the subsequent increase in domestic crude oil production and oil exports. Diversification strategies during this period focused largely on the development of petrochemical industries and the establishment of energy-based companies that would benefit from the plentiful supply of natural gas in Trinidad. .

During the mid 1980’s, with the decline in international oil prices and an economy that was still heavily dependent on the income generated from this sector, the economy experienced a significant decline in its export earnings and government revenue. To address this decline, a programme of structural adjustment was implemented.

In the 1990s, attention was placed on increasing private sector investment and in particular, stimulating activity in the Non-Petroleum economy. Key measures implemented since this period included:

⇒ Macroeconomic policy and management aimed at achieving a more balanced government

budget, price, interest and foreign exchange rate stability, a sound financial system and prudent debt servicing;

⇒ A tax reform programme aimed at removing the disincentives to private sector investment.

This included:

- Reduction of Corporation Tax and Personal Tax; implementation of Value Added Tax (VAT) and the development of a range of incentives under the Fiscal Incentives Act, 1979 and Income Tax (In Aid of Industry) Act, and establishment of free zone incentives in 1995;

⇒ Restructuring, divestment and liquidation of a number of state-owned enterprises.

Divestment was done through the sale of some companies directly to foreign investors, such as in the case of the Telephone Company of Trinidad and Tobago [now Telecommunications Services of Trinidad and Tobago (TSTT)], Fertilizers of Trinidad and Tobago (now PCS Nitrogen), and Trinidad and Tobago Urea Company, as well as through the issue of shares on the stock market such as in the case of Trinidad Cement Limited, the Point Lisas Industrial Port Development Company and more recently, National Flour Mills with National Enterprises Limited in 2002.

⇒ Policies to promote “openness” of the economy which included:

- Removal of foreign exchange controls and changing from a system of fixed exchange rates to a system of a managed float, April 1993;

- Liberalisation of the trade regime through removal of the licensing system and

negative list for almost all imported goods;

- Reduction of tariff levels to a targeted range of 0 to 20% in line with the CARICOM



2200

Common External Tariff (CET) agreement and GATT;

- Removal of customs duties on raw materials for approved industries;

- Removal of duty or a maximum of 2.5% duty on plant and machinery;

⇒ Improvement in the legislative, regulatory and incentive framework for investment including:

- Implementation of a new Companies Act in 1995 based on the Canadian Business

Corporations Act, intended to ease commercial transactions; - Establishment of a one-stop-shop service at TIDCO for the application for incentives

and work permits and other approvals for new investors, geared towards minimising “red-tape” and to providing an easy system for navigating State bureaucracy;

- The development, passing and enforcement of intellectual property legislation;

- Introduction of the Freedom of Information Act of 1999 in support of Transparency,

Accountability, Equality of Access and Empowerment and increased participation of Governance.

⇒ Development and rehabilitation of the country’s physical infrastructure;

These reforms were implemented almost simultaneously with a world-wide move towards trade liberalisation and a global economy. For the new millennium, focus will continue to be on the energy sector as the catalyst for further economic growth and diversification. In particular, an increase in the production of natural gas is expected to promote further downstream industries, such as, ethylene-based industries. In the non-energy sector, focus is being placed on international competitiveness, both in terms of the ability to attract investment and the competitiveness of our products and services in the global market. Policy measures to address competitiveness will promote skills/knowledge development, technology enhancement and market access. Specific proposals include: -

⇒ Continued infrastructural development;

⇒ Continued expansion of energy based industries;

⇒ Development of La Brea Industrial Estate;

⇒ Energy Committee to address: -

• Sale of natural gas directly to selected downstream industries; • Supply of gas to Caricom • New fiscal regime for gas to increase GOTT’s tax revenues.

⇒ Initiatives for manufacturing sector in the form of investment promotion and export

development;



2211

33 ..22 KKeeyy EEccoonnoommiicc IInnddiiccaattoorrss

In 1994, the Trinidad and Tobago’s economy began its recovery and has continued on a growth path in both the petroleum and non-petroleum sectors since that time. In 2002, the economy showed significant growth. Real output grew by 2.7%. Projected data for the year 2002-2004 indicates that the economy will continue to grow at an average of 5.9% in real GDP growth.

With per capita income of US $6,921 in 2001, Trinidad and Tobago is classified as a middle-income developing country. Although the country has made considerable strides in the last two decades to become one of the more wealthy and progressive countries in the Caribbean, much work has to be done to achieve the developed nation status by the year 2020.

3.2.1 GDP Growth (%)

Growth in GDP at Constant (1985) Factor Cost by Sector 1998-2002

-20.0

-10.0

0.0

10.0

20.0

30.0

1998 1999 2000 2001 2002

Gro

wth

(%

)

Petrochemicals

Agriculture

Manufacturing

Source: Central Bank of Trinidad and Tobago Economic Reports



2222

Table 3.2.1.2.

Growth in GDP by Sector

Growth in GDP at Constant (1985) Factor Cost by Sector 1998-2002

Sector 1998 1999 2000 2001 2002

Energy 5.4 8.1 1.1 0.7 10.7

Petrochemicals 23.2 17.5 3.1 11.3 6.9

Other Petroleum (Oil, etc.) 2.3 6.1 0.6 -1.8 11.7

Non- Energy 4.4 5.1 7.2 4.9 1.0

Agriculture -10.7 12.0 9.5 -2.8 2.5

Manufacturing 4.1 3.4 6.7 4.7 -2.9

Electricity and Water 5.3 -0.6 9.6 4.0 10.8

Construction 13.9 7.9 8.0 4.9 5.0

Transportation, Storage and Communication 4.3 10.5 7.0 0.9 -4.0

Distribution 13.6 9.8 21.5 6.8 11.2

Finance, Insurance & Real Estate1 2.5 2.2 2.4 2.8 2.1

Government 3.2 -0.7 4.0 11.7 -1.1

Other Services 2 3.3 1.8 3.4 6.5 -0.6

GDP at Factor Cost 4.6 5.8 5.7 4.0 3.2

Memo Item:

Goods-Producing3 4.5 7.1 4.8 1.9 6.5

Non-goods Producing 4.5 4.4 6.6 5.9 0.1

Source: Annual Economic Survey 2002, Central Bank of Trinidad and Tobago

1 Includes Correction for Imputed Service Charge

2 Includes Hotels and Guest Houses, Education and Community Services and Personal Services

3 The goods-producing sectors as classified here are Petroleum, Agriculture, Manufacturing,

Electricity and Water and Construction.



2233

33 ..22 ..22 .. UUnneemmppllooyymmeenntt

Chart 3.2.2.1.

Unemployment Rate (%)

Unemployment (%)

0.0

5.0

10.0

15.0

20.0

Une

mpl

oym

ent (

%)

Unemployment(%)

17.2 16.2 15 14.2 11.7 12 10.8 10.4

1995 1996 1997 1998 1999 2000 2001 2002

SS oouurrccee:: CCeennttrraall SS ttaattii ss ttiiccaall OOffffiiccee

33 ..22 ..33 .. IInnffllaattiioonn

The inflation rate in 2002 measured 4.2 percent compared with 5.5 percent in 2001.

Chart 3.2.3.1. Inflation Rate (%)

Inflation Rate (%)

0.0%

2.0%

4.0%

6.0%

Inflation Rate (%) 5.3% 3.3% 3.6% 5.6% 3.4% 3.6% 5.5% 4.2%

1995 1996 1997 1998 1999 2000 2001 2002




2244

33 ..22 ..44 .. BBaallaannccee ooff PPaayymmeennttss

Notwithstanding, the volatility of the world economy and the relative volatility of commodity prices, for the six-month period ending March 2002, Trinidad and Tobago’s external position weakened, with a balance of payments deficit of US $3.5 million from a surplus of US $1.8 million in the previous year. The country’s reserve position at the end of August 2002, remained at a healthy US $2,759.2 million.



2255

Table 3.2.4.1.

BALANCE OF PAYMENTS, 1998 - 2002 (US - $Million)

Item 1998 1999 2000 2001r 2002 p

(1) Merchandise (Net) -743.0 63.6 968.8 718.0 420.7

Exports 2,264.6 2,815.8 4,290.3 4,304.1 4,033.6

Imports 3,007.6 2,752.2 3,321.5 3,586.0 3,612.9

(2) Services (Net ) 417.6 329.1 166.1 227.2 185.0

Transportation 78.2 80.9 34.4 90.7 32.2

Travel 134.0 126.8 65.7 59.8 52.0

Communication 91.9 102.8 30.8 24.2 24.4

Insurance 30.1 23.9 45.7 70.4 99.6

Other Government 77.5 -10.2 -13.9 -20.2 -16.7

Other Services 5.9 4.9 3.4 2.4 -6.6

(3) Income -342.3 -399.9 -628.5 -475.7 -506.8

Investment Income -342.3 -399.9 -628.5 -475.7 -506.8

(4) Unrequited Transfers (Net) 22.3 37.8 37.9 33.3 46.8

(5) Current Account (1+2+3+4) -645.3 30.6 544.3 502.8 145.7

(6) Net Capital Movement (Net) 694.4 217.9 264.7 484.7 276.1 Portfolio Investment -0.4 -170.0 -146.3 -58.0 -3.2

Direct Investment 731.9 379.2 654.3 684.9 636.5

Other Private1 117.6 -174.9 -211.1 -292.3 -221.5

Commercial Banks2 -49.7 73.7 -86.1 199.5 -80.1

Official Borrowing -105.7 124.4 114.9 -34.7 -51.0

Official Loans 0.0 0.0 0.0 0.0 0.0

State Enterprises Borrowing -5.7 -14.5 -61.0 -14.7 -4.6

Other Assets 6.0 0.0 0.0 0.0 0.0

(7) Net Errors & Omissions 31.5 -86.3 -368.0 -516.9 -372.9

(8) Overall Surplus or Deficit 80.6 162.2 441.0 470.6 48.9

(9) Official Financing -80.6 -162.2 -441.0 -470.6 -48.9 Government -0.3 0.0 3.5 0.0 -0.0

Central Bank (Net)3 -80.3 -162.2 -444.5 -470.6 -48.9

(10) Exceptional Financing 0.0 0.0 0.0 0.0 0.0

Of which:

Debt Rescheduling 0.0 0.0 0.0 0.0 0.0

Memoranda Items

Current Account/GDP (per cent) -10.2 0.4 6.7 5.5 1.6

Gross International Reserves (US$Mn)

1,184.5 1,389.9 1,909.7 2,455.2 2,594.4

(in months of imports) 4.4 4.5 5.8 7.4 7.9

Debt Service Ratio 9.9 8.0 7.9 3.7 4.3

SOURCE: Central Bank of Trinidad and Tobago 11 RReepprreesseennttss eessttiimmaatteedd sshhoorrtt--tteerrmm ffoorreeiiggnn ccaappiittaall..

22 AAss aa rreessuulltt ooff tthhee cchhaannggee iinn tthhee eexxcchhaannggee rraattee rreeggiimmee iinn 11999933,, ccoommmmeerrcciiaall bbaannkkss aarree ccllaassssiiffiieedd aass ppaarrtt ooff pprriivvaattee sseeccttoorr ccaappiittaall..

33 IInncclluuddeess CCeennttrraall BBaannkk hhoollddiinnggss,, IIMMFF RReesseerrvvee TTrraanncchhee aanndd SSDDRR hhoollddiinnggss,, aanndd uussee ooff FFuunndd ((IIMMFF)) CCrreeddiitt ..



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rr rreevviisseedd pp pprroovviissiioonnaall

33 ..22 ..55 .. EExxcchhaannggee RRaattee SS ttaabbii ll ii ttyy

The Government of Trinidad and Tobago took a decision to float the TT dollar with effect in 1993. Removal of official foreign exchange controls was also announced simultaneously with the floating of the currency. The country’s rate is now determined by the demand and supply for foreign currency at the commercial banks. Some degree of influence is exerted, however, by the Central Bank through its monetary policy on bank reserves and interest rates, as well as by the commercial banks, through their discretion in the sales of foreign exchange. Such measures make the system tantamount to a managed float.

Prior to 1993, the TT dollar was pegged to the US dollar. Shortfalls in the supply of foreign exchange in the commercial banking system were met by drawing down from the Central Bank’s foreign reserves.

The Central Bank’s intervention in the foreign exchange market for the fiscal year ended September 2002 was minimal given the strength of the T&T dollar. Since March 2002, the T&T dollar has steadily appreciated and stood at TT $6.16 at the end of August 2002. The pound sterling and the Canadian dollar on average stood at TT $9.17 and TT $4.02 respectively. The exchange rate now stands at approximately US$1.00 = TT$6.30. In the case of Jamaica, exchange rates stood at J$0.12724 to US$1.00 in 2003. The Government recognizes that in order to maintain the stability of the Trinidad and Tobago currency, the inflation rate would have to be contained as close as possible to the country’s main trading partner, the United States. The Government has also recognized that avoiding persistent fiscal deficits as well as having a sound macro-economic policy framework, are means to curbing the pressure on the exchange rates of this country.

33 ..33 .. GGoovveerrnnmmeenntt’’ss PPrriioorrii ttiieess ,, RRoollee aanndd OObbjjeeccttiivveess

The Government’s vision for Trinidad and Tobago is to achieve developed country status by 2020. Policies will be implemented to maintain a knowledge-based society with a globally competitive technologically driven diversified economy, especially in the non-oil sector that will sustain full employment, equal opportunity, growing prosperity, a secure life and the highest standard of living for all its citizens. Accordingly, Government’s major policy goals and objectives for the three-year period, 2002-2004, will include:

§ Fostering an environment of steady economic growth while containing inflation; § Establishing a comprehensive social development framework that promotes human

development; § Generating increased permanent employment opportunities; § Enhancing the well-being of all citizens; and § Strengthening the protection and preservation of the country’s natural environment.



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Attainment of these goals and objectives will be facilitated by Government’s continued focus on sound and prudent management of the Trinidad and Tobago economy. A summary of specific policy objectives follows: Savings and Investment – The main focus will be the strengthening of the regulatory and supervisory framework within the financial sector, with the objective of promoting active capital market development; Fiscal Policy – This will focus on more efficient allocation of expenditure, improvement in taxation administration, implementation of measures aimed at strengthening the performance of the public sector enterprises in order to reduce reliance on transfers and increase dividends to Government, policies aimed at achieving diversified growth, greater employment opportunities, low inflation, a stable exchange rate, adequate foreign exchange reserves; Monetary Policy – The focus will be on maintaining price and exchange rate stability and protection of the external account balance; Debt and Debt Management – Strategic management of the public debt portfolio in a manner that will relieve tax payers from onerous interest payments on public debt. In order to ensure a more effective monitoring and management of the country’s debt obligations, the Ministry of Finance will establish a new Debt Management Unit. This Unit will be charged with the responsibility of monitoring the growth of new debt and maintaining our debt levels within sustainable levels. Foreign Policy – Emphasis on investment and tourism promotion, avenues for technical co-operation, more effective global presence through negotiations for trade and cultural agreements, investment protection and promotion agreements, double taxation treaties, scientific and technical agreements, abolition agreements; trade and investment missions; appointment of more Honorary Consuls; continued commitment to CARICOM; enhanced trade and technical co-operation with Cuba and the Dominican Republic;

Trade and Industrial Policy – Focus on trade liberalisation process and the expansion of markets for non-oil exports. Strategies include: enforcement of Anti-dumping legislation; Approval of Investment Promotion Bill; development of Competition policy; co-ordination and facilitation of investment and industrial promotion activities; pursuit of membership in the Free Trade Area of Americas; creation of the Single Market and Economy; expansion of free zone activities including two additional multi-user facilities in Caroni and Trincity; expansion of port facilities at Point Lisas.

Small Business Development – Acceleration of the development of small business through implementation of the recommendations of the Cabinet appointed Task Force;

Infrastructure – The Public Sector Investment Programme (PSIP) will be the major instrument for providing the infrastructural framework; private sector participation is envisioned to become increasingly important in future infrastructural development, given the resource constraints of the public sector. PSIP programme will aim at regeneration, enhancement and expansion of the country’s health, education and housing sectors; Government will continue to support the productive activities of the private sector through the expansion and enhancement of the country’s infrastructure including – rural access roads and bridges;



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State-Owned Enterprises – Continued divestment of state enterprises will be pursued; Government will retain or acquire equity in state enterprises only where such ownership is critical to the achievement of policy objectives;

Public Utilities – Focus on the financial self-sufficiency and viability of the sector;

Water and Waste Water – Priority will be given to the commencement and completion of pipeline laying projects to strengthen and expand water distribution to all.

The Desalination project will improve the delivery of service to the entire country

Electrical Power – Focus on the provision of facilitatory mechanisms and the removal of constraints to investment in the transmission and distribution sub-sectors; new legislation.

Telecommunications – In order to exploit technology as a business and social facilitator, Government will continue to invest, build and facilitate the development of information technologies, telecommunications and internet infrastructures with the aim to make Trinidad and Tobago an intelligent nation. Key strategies include: establishment of a Technology Park and Innovation Park, the Liberalization of the telecommunications sector, the expansion of internet connectivity and the implementation of the E-Commerce Action Plan.

The project will create a facility that will attract foreign investors searching for the right location to establish “near shore operations and industries.

Postal Service – Emphasis on improving the quality service and operating on commercial principles;

Transport – Government’s policies for the development of the transportation network therefore covers both mass passenger transit and commercial transportation.

Over the period 2002 to 2004, therefore, the Government will undertake a Mass Transit Investment Project. The project will seek to develop a 20-year Transportation Plan for Trinidad and Tobago.

§ Air transport policies include: Aviation Policy; Strategic Upgrading of the New Piarco International Airport; refurbishment works at Crown Point International Airport with the aim is to develop the International Airports of Trinidad and Tobago into the principle gateway between North and South America.

Accordingly, over the three-year period, which commenced in 2002, Government will develop a policy framework for an efficient and effective air-bridge between the two islands.

§ Sea transport – maximise trans-shipment business, review of alternative options for inter-island transport;

§ Land transport – extend provision to rural communities.

33 ..44 .. EEnneerrggyy SS eeccttoorr

As in previous years the energy sector continues to be critical to the revenue generation of Trinidad and Tobago; it continues to be the main engine of growth. The sector is undergoing profound changes as a result of which Trinidad and Tobago is transforming from an oil-based to a gas based economy.



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Trinidad and Tobago’s energy sector comprises onshore and offshore petroleum exploration and production, refining, petroleum service companies, the petrochemical producers and liquefied natural gas. Other high consumers of natural gas such as the utilit ies and iron and steel producers are included in discussions about the energy sector. With approximately 594 million barrels of proven reserves of crude oil and proven gas reserves estimated at 19.7 trillion cubic feet (tcf) and at 32.6 tcf, if probable and possible reserves are included, the energy sector will continue to play a major role in the development of the economy. For the fiscal year ended September 2002, annual production of crude oil was 43.4 million barrels, 5.6% higher than the previous corresponding period. Recent discoveries and the potential for further significant finds also significantly enhanced the country’s oil and gas reserves. Natural gas production was 16,743 million cubic meters, an increase of 2.5% over the previous period. This increased production is mainly attributable to the commissioning of the Caribbean Nitrogen Company 1 plant (CNC1) in July 2002 and an increased throughput from Atlantic LNG’s Train 1, following a de-bottlenecking exercise in the earlier part of 2002. As a result of planned developments in the downstream gas-based petrochemical sector, Natural Gas production and utilisation is expected to increase by 20% per year over the next three years. Contributing to the increased production is Atlantic LNG’s Train II and III as well as Phoenix Park Gas Processors Plant. Production is expected to increase by approximately fifty percent by the end of the year 2005, following the construction of Train IV, which will be the largest single Train to be constructed in Trinidad and Tobago. There also exists the possibility of the construction of a fifth LNG train, which will fuel further exploration and development in the sector. Policies designed to ensure continued growth and development of the domestic energy sector include: promotion of private sector investment in particular in exploration, development of heavy crude oil reserves, plans for utilisation of idle storage capacity of the domestic refining industry and to make Trinidad and Tobago an international terminal centre for crude oil; acceleration of the process of de-monopolisation of the retail – marketing sector; exploration of the feasibility of further expansion of LNG, ammonia, methanol, aluminium; consideration will be given to the development of an ethylene complex, aluminium smelter and the introduction of gas to liquid conversion technology to the country.

33 ..44 ..11 IInnvveess ttiinngg iinn tthhee PPeettrroolleeuumm IInndduuss ttrryy

Investing in the exploration and production activities is through a competitive bidding process whereby exploration blocks are awarded. Investors wishing to engage in these operations are required to make applications for contracts and licences to the Ministry of Energy and Energy Industries as follows:

The Permanent Secretary Ministry of Energy and Energy Industries Riverside Plaza Besson Street P.O. Box 96 PORT OF SPAIN TEL: 1-868-623-6708 FAX: 1-868-623-2726.



3300

Contracts and licences are advertised on the Ministry’s website http/www/energy.gov.tt, in international publications and at international geological and petroleum conferences.



3311

There are generally three types of contracts and licences:

§ An Exploration Licence which grants the licensee the non-exclusive right to carry out the petroleum operations as stated in the licence,

§ An Exploration and Production Licence which grants the licensee the exclusive right to explore for,

produce and dispose of petroleum in accordance with the terms of the licence, and § A Production Sharing Contract for the conduct of petroleum operations relating to the exploration,

production and disposition of petroleum within a prescribed contract area.

Several international petroleum companies have operations in Trinidad both in exploration and production, independently or in joint ventures. These include:

Oil / Gas Companies in Trinidad and Tobago

Atlantic LNG PETROTRIN BHP Petroleum Trinidad Talisman Trinidad Holdings BP Trinidad and Tobago Venture Production (Trinidad) Limited British Gas Trinidad Limited Repsol Exploration Conoco Inc. Texaco Trinidad Ltd. Deminex Trinidad and Petroleum GMBH Premera Oil & Gas

ELF Exploration Trinidad Trinmar Ltd.

EOG Resources Union Texas Trinidad Ltd.

Exxon Exploration and Production Agip Trinidad and Tobago Limited Moraven T’dad Exploration & Development New Horizon Exploration Trinidad and Tobago Petrobras International S.A. The National Gas Company of Trinidad and Tobago

Shell Exploration

Vermilion Resources

33 ..44 ..22 IInnvveess ttiinngg iinn tthhee PPeettrroocchheemmiiccaall IInndduuss ttrryy

Trinidad and Tobago is now a major producer and leading exporter in the world of methanol and anhydrous ammonia. International companies such as PCS Nitrogen Inc. (formerly Arcadian), Ferrostaal and Methanex have established successful petrochemical plants in Trinidad and Tobago.

Preferred investment into this industry is in the second derivatives of methane and a more diversified portfolio of products. Potential projects include: § Methanol downstream - formaldehyde, dimethyl ether, DMT, methylamines, MMA,

formaldehyde resins § Ammonia downstream - nitric acid, ammonium sulphate, UAN § Propane/propylene based - acrylonitrile, cumene, acrylates, iso-propyl alcohol, oxo -alcohols § Butanes/butylene based - butadiene, MTBE § Associated industries - sulphuric acid.



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Strategies and measures identified in the social and economic framework are as follows: -

§ Promote expansion in the Northern Basin onshore, in deeper waters off the coast and in acreage off the west cost through negotiation of production sharing contracts with oil companies;

§ Institute programs aimed at increasing oil production from existing onshore and offshore wells through new capital and technology and through the launch of well activation programmes;

§ Implementation of Cross Border Field Development Plan between Trinidad & Tobago and Venezuela through the establishment of bilateral treaties between both countries;

§ Open the market to multi nationals, removal of price controls and subsidies and granting of licences to new entrants;

§ Improve competitiveness of the domestic refinery through further upgrade and establishment of foreign strategic partner;

§ Review the fiscal incentives and pricing regime for the sale of natural gas through rationalisation of incentives and transparent gas price regime;

§ Continue projects aimed at encouraging a switch from crude oil and refinery based fuels to gas based fuels;

§ Strengthen the down stream gas-based sector by facilitating the developments of projects such as an ethane based petrochemical project, additional methanol and ammonia plants, a gas to liquids plant and an aluminium smelter plant;

§ Improve health, safety and environmental standards.

33 ..44 ..33 IInnvveess ttiinngg iinn tthhee EEnneerrggyy SS eeccttoorr iinn TTrriinniiddaadd aanndd TToobbaaggoo

Petrochemicals – Ammonia, methanol and urea

Trinidad and Tobago is now a major producer of methanol, anhydrous ammonia and urea. International companies such as PCS Nitrogen, Point Lisas Nitrogen Limited (formerly Farmland MissChem Limited) and Methanex have established very successful petrochemical process plants at the Point Lisas Industrial Estate in Central Trinidad.

Ethylene Petrochemical Complex

This is predicated on several potential downstream benefits envisaged for the country in addition to the opportunity to upgrade locally-derived Natural Liquid Gases (NLGs) prior to export. NGC is determined to implement the core elements of such a Petrochemicals complex by 2005-2006. Current strategy targets, within the time frame, the production of one or more ethylene derivatives and possible derivatives of propylene of butylene as the major output. This would be achieved by attracting a suitable significant player in the industry who would be interested in serving as major investor/offtaker. It is envisaged that this investor would actively assist in further development of the associated domestic downstream business sector.



3333

Iron and Steel

For the eight-month period October 2001 to May 2002, iron and steel production increased by 19.4% over the previous corresponding period. This increase was largely fuelled by the reintroduction of ISPAT’s Direct Reduced Operation Module. In contrast, production of billets declined by 19% primarily due to the non-operation of the company’s caster Module. The production of wire rods declined by 4% for 438.5 to 423 thousand tonnes.

For the same period export of Direct Reduced Iron (DRI) increased by 36% from 738.6 to 1,003 thousand tonnes and was supported by ISPAT’s trading arrangement with the Canadian Corporation ISPAT SIDBEC. The exports of wire rods declined by 6% as a result of the United States imposition of Section 201 duties on the import of general steel articles inclusive of wire rods. This action by the United States resulted in a cumulative 13 % increase in the duties payable on imports of this product into the United States. There were no exports of billets for the review period as world demand declined.

The average international prices of DRI increased from US$93.8 to US$95.53, reflecting consistent world demand as sales of DRI competed successfully with sales of scrap iron. The average price of wire rods increased from US$231.6 to US$249.1 per metric tonne in response to the imposition of the new United States duties.

Aluminium

Efforts continue to attract investment for the development of an aluminium sector in Trinidad and Tobago. Discussions continue with major players in the global industry.

Prospective investments include an aluminium smelter plant as investment continues to be sought to grow the metals sector not only in the production of primary products, but downstream derivatives as well.

Gas-to-Liquids (GTL) Complex

A GTL plant has the attraction of providing potential benefits for the country: ⇒ Conversion of it natural gas to a higher value added product for export. ⇒ Production of cleaner fuels for today’s increasing greener focus. ⇒ Utilizing existing oil infrastructure for an export product rather than

expensive new gas infrastructure and market arrangements. ⇒ Much higher scope than gas or petrochemicals. ⇒ Potentially more attractive option to LNG due to downstream benefits.

NGC is interested in attracting a suitable investor who would be willing to implement a 34000 bbl /d plant by 2006-2007. New gas-based technologies

NGC has a stake in the timely implementation of viable market opportunities in areas of emerging technology, such as fuel cells, methanol to olefins, dimethyl ether (DMF) etc. In this regard, NGC is keenly interested in exploring relevant initiatives, inclusive of possible active participation in technology/commercial developments with eligible interested parties.



3344

Downstream of existing industries and NGLs

The country is committed to a strategy of continually seeking avenues to upgrade its gas-derived resources to the highest extent possible, prior to exporting a saleable product. Accordingly, NGC seek opportunities for possible synergies with existing local gas and petrochemical sector. This includes the fostering of partnerships and alliances with suitable global industry participants who would have mutual interests in promoting and developing viable downstream opportunities. These prospects involve projects downstream of methanol, ammonia, NGLs and associated industries.

33 ..44 ..44 TThhee NNaattiioonnaall GGaass CCoommppaannyy ooff TTrriinniiddaadd aanndd TToobbaaggoo LLiimmiitteedd ((NNGGCC))

Increased Natural Gas production is attributed to the commissioning of the Caribbean Nitrogen Company 1 plant (CNC!) in July 2002 and an increased throughput from Atlantic LNG’s Train 1.

Moreover, as a result of the planned developments in the downstream gas-based petrochemical sector, natural gas production and utilisation is expected to increase by 20% per year over the next three years. Contributing to the increased production is Atlantic LNG’s Train II which was commissioned ahead of schedule in August 2002 and Train III, which was also commissioned ahead of schedule in 2003 as well as Phoenix Park Gas Processors Plant (PPGPL), which was expanded by 12 thousand barrels per day (bpd) of fractionation capacity and 250 thousand barrels of additional product storage and ancillary facilities.

A gas to liquids plant and an aluminium smelter plant are also being considered as possible investment options in an attempt to further diversify the natural gas portfolio. The feasibility of establishing a port in Tobago for LNG exports in to the Caribbean is also under consideration.

The NGC has the responsibility for natural gas-based industrial development. This function involves:

§ Promoting Trinidad and Tobago both locally and abroad as a prime location for

investment in gas-based industries and seeking to attract such investments into the country;

§ Monitoring and guiding major natural gas-based projects in the energy into the

implementation phase;

§ Advising the Government on an appropriate regime of incentives to stimulate the development of natural gas-based downstream industries.

§ Evaluating proposals for natural gas-based projects in the energy sector and in which the

government envisages holding a participatory interest;

§ Applying any regime of incentives as decided by Government with respect to the encouragement and development of downstream industries in the gas-based and petrochemical sub-sectors.



3355

Marketing and Transmission of Natural Gas

NGC is the sole marketer and transporter of natural gas to consumers (this excludes gas sold to Atlantic LNG). The natural gas purchased by NGC is produced offshore by three international oil and gas companies and from NGC’s offshore compression facilities before being distributed and sold to various consumers by NGC. In 2002, NGC has 117 customers, 98 of who are in the light industrial / commercial sector. NGC owns and operates an extensive transmission and distribution network of over 620–KM of pipelines. It is projected that there will be an adequate supply of natural gas for additional gas-based projects in the future.

Marine, Port and Land Infrastructure Development Through it subsidiary NEC, NGC owns and manages the harbour and specialized port and marine facilities at Port Point Lisas, which handles all the import and export needs of the large gas-based plants located on the estate. NGC is also involved in site development for large gas-based industries willing to establish their operation in Trinidad and Tobago. Natural Gas Pricing Pricing for natural gas is done on a case-by-case basis and each contract is negotiated between NGC and the proposed user. Payment is made in US dollars. Customers are billed monthly through measurements and invoices prepared by NGC. Table 3.4.1.1. shows the typical composition of natural gas sold to consumers in Trinidad and Tobago. A calorific value of 1,33 btu per cubic foot can be used for any preliminary analysis that needs to be done. Natural gas is supplied to consumers at a pressure not less than 250 psi.

Table 3.4.4.1.

Typical Gas Composition

COMPONENT MOLE PERCENT

Methane (C1) 96.2 Ethane (C2) 3.3 Propane (C3) 0.1 Carbon Dioxide (CO2) 0.4 Nitrogen (N2) 0.0 Total 100.0

Source: National Gas Company of Trinidad and Tobago



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Potential gas-based projects can be discussed with:

Manager, Market Development Business Group The National Gas Company Trinidad and Tobago Limited

Orinoco Drive Point Lisas

COUVA TEL: 1-868-636-4662,4680 Ext: 373

FAX: 1-868-679-2384 E-Mail: [email protected] Website: www.ngc.co.tt

Mailing Address: P.O. Box 1127 PORT OF SPAIN

33 ..44 ..55 .. IInnvveess ttiinngg iinn PPeettrroolleeuumm RReettaaii ll MMaarrkk eettiinngg

In 1997 cabinet accepted the report of the Petroleum Retail Committee that was formed in 1996 to conduct a comprehensive study of the operations of the local Petroleum retail sector. A key condition of the report was the phased liberalisation of the retail sector, as follows: Phase I – De-monopolisation, with local competitors being allowed entry (1997-1998)

Phase II - Foreign competitors allowed entry (1999-2000)

Phase III -Deregulation (2002)

Phases I to III would also be accompanied by the gradual removal of subsidies and complementary adjustments in prices and taxes.

33 ..55 AAggrriiccuull ttuurree SS eeccttoorr

Domestic agriculture grew by 1.8% for the six-month period ending March 2002. Critical goals for the sector will be the achievement of food and nutrition security, employment creation, poverty alleviation, sustainable natural resource management and enhancement of contribution of agriculture to gross domestic output and foreign exchange earnings. Strategies include – increasing access to credit; reforms in land use policy and administration, agri-business development, modernisation and restructuring of Caroni (1975) Limited, the country’s largest agri-business and producer of sugar cane. A strong agricultural sector is important and the vision for 2020 will focus on enhancing the physical infrastructure namely marketing facilities, water management, flood control, irrigation and agricultural access roads and land settlement.



3377

33 ..66 .. TToouurriiss mm SS eeccttoorr

Trinidad and Tobago is situated at the crossroads of North and South America and Europe. The island nation has proven to be a natural harbour for a multiplicity of persons – a richness of races – which has served to create one of the most cosmopolitan societies in the world. That characteristic, more than any other, gives Trinidad and Tobago the potential to become world class tourism destination – a destination where people, places and activities inspire the imagination and fuel the desire for the exploration of new things experiences and ideas that enrich the human life. It has been said that Trinidad is the “un-Caribbean Caribbean”. The destination is vibrant and urban yet cool and serene and possesses an amazing wealth of natural resources. Trinidad’s rich natural resource base is the key to the country’s diversified economy. State of the art communications and technologies are rapidly being implemented to keep the island at the cutting edge of the global development. These attributes, coupled with good infrastructure and a highly literate labour force, provide a solid foundation upon which a thriving Tourism industry may be fashioned.

33 ..77 .. IInnvveess ttmmeenntt OOppppoorrttuunnii ttiieess iinn TTrriinniiddaadd aanndd TToobbaaggoo

Based on Government’s policy objectives over the medium term, the changes made in the legal and regulatory framework in several key industries outside the petroleum sector, and the trends in the economic and business environment, a number of specific investment opportunities exist in Trinidad and Tobago in the following industries:

33 ..77 ..11 FFoooodd && BBeevveerraaggee IInndduuss ttrryy

The food and beverage industry is a very diverse. It includes meat processors, poultry, milk and milk products, citrus processors, fruit and vegetables processors, flour and animal feeds, bakeries, confectioneries, snack foods, ice cream, and alcoholic drinks etc. From employment viewpoint, this sector is very important as some 13,000 people are employed in almost 500 establishments, many of which were very small.

The type of ownership by the local business community in the food-processing sector is either sole proprietorships, or limited liability companies. There are four multinationals, namely Nestlé Trinidad Ltd., Lever Brothers West Indies, Caribbean Bottlers Ltd. (Coca-Cola) and Nabisco Royal Inc. In the early era of the industry, there were other multinationals that established joint ventures in Trinidad and were subsequently bought out by local investors or by Government-owned concerns.

For established exporters, the production process tends to be semi-automated with a few fully automated lines in the larger plants. Technology in the medium sized plants is considered is considered fairly sophisticated and up to date by international standards. A study undertaken by CESCO International Services in 1998 for the TTMA, and supported by TIDCO, found that food-processing operations visited by the consultants were typically up to the standards of similar (smaller) Canadian plants. Product formulations are based on international standards and, in most cases, the end product is homogenous with some variations in sizes and flavour.



3388

Whilst the food and beverage sector uses sugar as one of its key ingredients, experience in supply of indigenous inputs has not been dependable. There are often occasions when sugar, cocoa, coffee, fruits and herbs are not available in commercial quantities. Exporters are then required to supplement the local supply with imported inputs in order to maintain a standardised formulation and product consistency.

The UNIDO report stated that conditions in the agricultural sector have constrained a successful domestic supply response, with most raw materials used by the sector still being imported.

Agro-Industry

Vac packed fruit Prepared meals/ frozen foods with low fat content Exotic and ethnic foods, herbs, spices and condiments 100% squeezed fruit juices in all varieties Low alcohol flavoured soft drinks Carbonated fruit flavoured soft drinks Chocolate and confectionery Soft drinks Processed fish products

33 ..77 ..22 MMeettaallss PPrroocceess ss iinngg IInndduuss ttrryy

The metal processing sector in Trinidad and Tobago evolved around the developments in the oil fields and later in the petrochemicals sector. The industry developed a downstream potential with linkages to SMEs in the wider metal processing and fabricating sector through the initial investment by the state in a direct reduced iron (DRI) plant and an integrated steel mill which supplied the basic raw materials DRI and wire rods, to the downstream processing industries. The plant was later divested to a foreign investor, the Ispatt Group, which is ranked in the top five steel companies in the world.

Investment Opportunities • Iron and steel production -ordinary and special hot finished products, tin plate and thin cold

rolled steel • Tube manufacture • Metal products-structural steel, tanks, forgings, tools, fasteners, stainless steel, etc • Agriculture implements, construction materials, shelving, cabinets, consumer products • Machinery • Mechanical engineering services

33 ..77 ..33 PPrriinnttiinngg aanndd PPaacckk aaggiinngg

The printing and packaging industry is generally considered to be at the mature stage in Trinidad and the market is well supplied with competing enterprises, from relatively large scale firms to cottage scale operations. Since 1989, the industry has experienced a level of consolidation with smaller companies either closing or being taken over by larger concerns. The process consolidation and rationalization is a feature of the industry world-wide, and is continuing in Trinidad as smaller



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firms are unable to afford the large capital investment in state of the art computerized automated technology, and advanced technical skills, which are necessary to produce the quality product that the market demands.

The printing and packaging industry began in the era of protection and licensing measures. In 1985, the printing sub-sector was brought under the Trinidad and Tobago Institute of Printing and Publishing sponsored by United Nations Conference on Trade and Development (UNCTAD) and Government of Trinidad & Tobago. The objective was to put in place a developmental policy to address this fragmented sector. The institute currently conducts training courses in various disciplines.

Investment Opportunities • Packaging (Containers) and labels • Flexible packaging -laminates, foils • Commercial printing-continuous business forms, magazines • Graphics and niche paper grades • Electronic publishing

33 ..77 ..44 CChheemmiiccaallss ,, PPhhaarrmmaacceeuuttiiccaallss aanndd PPllaass ttiiccss

Petrochemicals used as inputs for the production of other chemicals e.g. ethylene, benzene propylene. These chemicals are little produced in Trinidad; A joint effort is being made to expand the Plastics, Printing and Packaging Sector. A PPP Task Force has been established to facilitate growth and promotion of an integrated sector. In the short term, this would involve the construction of various resin terminals to provide lower prices for imported resins. In the longer term, the proposed ethylene cracker / polyethylene complex will provide sufficient resin for any expansion of specific polyethylene industries. Other plastic industries targeted for development and investment opportunit ies include polycarbonates, nylon and HDPE.

Investment Opportunities • Pharmaceuticals -prescription drugs, OTC or self-medication products, veterinary products • Perfumes and toiletries • Specialty chemicals e.g. intermediate inputs for paints and cosmetics • Downstream petrochemicals e.g. hydrogen peroxide, petrolatum • Fertilisers • Plastics for the packaging, building, automotive and electrical industries

.

33 ..77 ..55 MMaarriinnee IInndduuss ttrriieess

Yacht-Service and Yacht-Tourism industries in Trinidad and Tobago have registered significant growth since 1990. In 1990, the annual arrival of yachts to this country was 637. By the end of 1997, yacht traffic had increased to 2,590 and in 1998, yacht traffic was 2,894, 2000 the figure reached 3249. Drops were recorded in 2001-2002 – 2,735-2301 Boaters of all types, have been gradually discovering the benefits of visiting Trinidad and Tobago, both for pleasure and business reasons. The results for the country have been a marked increase



4400

both in business and jobs. In the case of the latter, it is now estimated (as of December 2002) that 1475 people are now employed in the Yacht-Service industry alone. Trinidad offers a number of advantages over other Caribbean islands for the yachting industry. These include:

• Located south of the 120 parallel, outside the active hurricane belt. Resulting in reasonable insurance premiums throughout the year, significantly lower than other Caribbean locations.

• A large pool of highly skilled labour for out-haul, repair and maintenance services. • Ready availability of high quality teak, ideally suited for outfitting pleasure craft. • Duty-free concession for importation of yacht in-transit parts and goods. • Excellent support services to cater to the needs of the yacht visitor, available in one

location. Ninety percent of the services that a yachting visitor may require can be found in Chaguaramas

• Facilities’ capabilities of up to 200 ton-lifts.

Investment Opportunities

Ship's chandlery Boat servicing, storage and building

Commercial Ship Repairs: ⇒ Supply and operation of a 450 metric tonne capacity dry dock. Marine Infrastructure: ⇒ Marina construction on the Gulf Coast and areas of Tobago; ⇒ Construction of sea walls, boardwalks, jetties and piers. Upgrading of piling hammers and other heavy duty Marine Construction Machinery. Yacht Service: ⇒ Supply of Hot Dip galvanising equipment. ⇒ Supply of large marine hoists (up to 500 tonnes) including upgrading of welding

equipment, sandblasting equipment and gel-coat stripper. ⇒ Eco-friendly products and technology. Boat Construction: ⇒ Supply of custom-made machinery to mould small fibre glass parts for mass export

particularly to the US market. Trinidad & Tobago has a logistical advantage compared with Far East suppliers.



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The Yacht Services Association of Trinidad and Tobago (YSATT) is a non-profit organisation established since 1994 by the boat yards and marinas within the Western Peninsular of Trinidad. YSATT is dedicated to the continued growth and well being of the industry, as well as promoting the interests of the yacht service industry, enhancing facilities, advancing the education of those engaged in the yacht service industry and improving industry conditions. For more information, please contact:

Yacht Services Association of Trinidad and Tobago

P. O. Box 3168 Carenage

Trinidad, West Indies TEL: - 1-868-634-4938 FAX: - 1-868-634-2160

E-Mail: - [email protected]

.

33 ..77 ..66 TToouurriiss mm♣♣

Trinidad and Tobago is situated at the crossroads of North and South America and Europe. The island nation has proven to be a natural harbour for a multiplicity of persons – a richness of races – which has served to create one of the most cosmopolitan societies in the world. That characteristic, more than any other, gives Trinidad and Tobago the potential to become world class tourism destination – a destination where people, places and activities inspire the imagination and fuel the desire for the exploration of new things experiences and ideas that enrich the human life. It has been said that Trinidad is the “un-Caribbean Caribbean”. The destination is vibrant and urban yet cool and serene and possesses an amazing wealth of natural resources. Trinidad’s rich natural resource base is the key to the country’s diversified economy. State of the art communications and technologies are rapidly being implemented to keep the island at the cutting edge of the global development. These attributes, coupled with good infrastructure and a highly literate labour force, provide a solid foundation upon which a thriving Tourism industry may be fashioned.

Trinidad and Tobago is well located, meeting industry’s six hour criterion for short-haul travel and with successful penetration already into the long-haul travel market of Europe. This is a tremendous complement to the long-established and profitable North American market. The country is also located next to a market in South America, which is expected to produce substantial travel as their economies prosper. The country’s product is well matched to emerging market trends and offers substantially more diversity than most Caribbean destinations: resort experiences; eco-tourism, business travel and meetings, and cultural and event tourism. All hold high potential for the country’s tourism product. In addition, specialty markets already have established niches demonstrating competitiveness: diving in Tobago and yachting, the latter a real success story with outstanding growth in the last decade.

Trinidad and Tobago has many strengths, which enable the country to successfully pursue the new tourism. It has: • Diversified economy; • A relatively large population base; • A thriving export sector; • A cosmopolitan city with exciting cultural and entertainment activities; • Sun, sea and sand resources in Tobago;

♣♣ SSoouurrccee –– TTrriinniiddaadd aanndd TToobbaaggoo TToouurriissmm MMaasstteerrppllaann



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• Extensive natural areas and internationally significant eco-tourism resources; • A vibrant business and industrial sector.

Investment Opportunities • Business Hotel and Conference Center (Port of Spain - Trinidad) • Business Hotels (Trincity, Wallerfield, Woodbrook- Trinidad) • Integrated Resort (Chupara Point - Trinidad) • Coastal Resorts (Las Cuevas, Mayaro– Trinidad; Courland – Tobago) • Business and Resort Hotel(Guayaguayare) • Residential Resort (Rockly Bay - Tobago) • 2 Resort Hotels (Bacolet - Tobago) • Integrated Resorts (Bon Accord, Buccoo - Tobago) • Integrated Eco-Tourism Community(Englishman’s Bay – Tobago) • 2 Marinas (Tobago & Trinidad) Cruise Shipping and Home Porting In seeking to expand this sector, several opportunities for investment have been identified:

⇒ water front development to provide cruise terminal linkage to urban amenities, ⇒ development of local cultural/historic/ecological attractions, ⇒ facilitation of duty-free shopping, ⇒ technical assistance for exploring further potential in the home porting business, ⇒ technical assistance for the upgrading of cruise terminal facilities.

33 ..77 ..77 FFii llmm aanndd EEnntteerrttaaiinnmmeenntt SS eeccttoorr

The critical goal for the film and entertainment sector is the positioning of Trinidad and Tobago as a unique Caribbean location for the production and promotion of film and entertainment products. The Film and Entertainment Unit of TIDCO invites investment in the sector for the production of film and television products. To this end a 5 year Film Master Plan has been drafted. The Plan addresses issues of legislation, infrastructure and product development and provides a framework for the granting of fiscal and other incentives to potential investors. An Entertainment Master Plan for the development of the music industry is also being drafted.

Investors may be attracted to the following areas:

⇒ ⇒ Promotion of live performers and entertainers ⇒ International marketing of Trinidad and Tobago music: calypso, steelband, soca, among

others, including possible joint ventures with local recording studios, ⇒ Video production of Caribbean music, ⇒ Establishment of theme parks, ⇒ Venues/facilities for the performing arts, and/or ⇒ Training centres, ⇒ Entertainment Complex,



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33 ..77 ..88 IInnffoorrmmaattiioonn CCoommmmuunniiccaattiioonn TTeecchhnnoollooggyy // EElleeccttrroonniiccss

A survey conducted in Trinidad and Tobago and reported in March 2002 by TIDCO identified approximately 350 companies in this sector, employing approximately 2,000. The sectors in which the firms were situated were IT/Telecom Services (31%), financial Services (16%) the public Service (19%), oil/energy-based industries(9%) manufacturing (9%) and others (19%)

Investment Opportunities • Computers and office equipment • Electronic components • Telecommunications equipment and services • Consumer electronics • Electrical machinery and apparatus • Data processing • Software development, networking systems, data base management, internet development-

commerce applications • Multimedia • Telemarketing/ teleservicing, call centres and shared services.

Investment Opportunities in Tobago The Tobago House of Assembly has identified the following business areas in which joint venture/foreign interest will be encouraged, the proposed sum of investment should be no less than US $500,000 in total assets: ⇒ Tertiary educational facilities ⇒ Recycling technology, ⇒ Information technology, ⇒ Boat building and deep-sea fishing. ⇒ Telemarketing,

33 ..88 .. SS uuppppoorrtt SS eerrvviicceess

33 ..88 ..11 .. NNeettwwoorrkk ooff SS uuppppoorrtt SS eerrvviicceess

Trinidad and Tobago has an existing network of agencies both in the private and public sector that provide business support services to investors and all businessmen. Support services include the provision of market, economic and trade information, testing and calibration services, support in project development and financing, export promotion, and investment facilitation. Some key agencies include:

Investment Facilitation

§ The Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO); the Business Development Company Limited (BDC) for information, advice and loan guarantee plan.

§ Trinidad and Tobago Chamber of Industry and Commerce, North and South



4444

Chapters; American Chamber of Commerce of Trinidad and Tobago; Trinidad and Tobago Manufacturers Association (TTMA) and the Couva Point Lisas Chamber of Commerce.

Information Services

§ Central Statistical Office (CSO); the Central Bank of Trinidad and Tobago Research Department for business and economic information; Trade Division- TIDCO for trade information.

Technical Support § Trinidad and Tobago Bureau of Standards (TTBS) and Caribbean Industrial Research

Institute (CARIRI), for engineering support. Financial Services § Trinidad and Tobago Export Credit Insurance Co. Ltd. (EXCICO) for export credit

insurance and export financing; Development Finance Limited for corporate finance, risk capital and strategic management advisory services.

33 ..88 ..22 .. TTIIDDCCOO

The Tourism and Industrial Development Company of Trinidad and Tobago Ltd. (TIDCO), was established by an Act of Parliament in May 1995 as the national promotional agency of Trinidad and Tobago. TIDCO’s mandate is to assist in the development of a diversified Trinidad and Tobago economy, through the functioning of an efficient and effective single state agency. In effect its mission is to market and promote “Brand TnT”. The Trade and Investment Unit of TIDCO promotes Trinidad and Tobago as a highly desirable location for investment especially in export competitive industries in the non-oil and non-energy sectors of the economy. These sectors include: Agri-Business, Banking and Financial Services, Entertainment, Information Processing, Light Manufacturing and Marine Services. The Unit also promotes and facilitates the export activities of the local manufacturers and producers. It provides trade information on the criteria, rules and regulations for entering foreign markets as well as conducting sectoral studies. Included in the work programme is the analysis of the trade agreements, the formalities of the export process and their cumulative effect on Trinidad and Tobago’s export sector. This Unit is also involved in trade negotiations and the creation of an infrastructure for market development. The Certification Department of TIDCO is the certifying body for the various trade agreements to which Trinidad and Tobago is a signatory, namely CARICOM, CARIBCAN, CARICOM/Venezuela and CARICOM/Colombia, Trinidad and Tobago/Venezuela. Exporters require this certification for receiving the concessions under these trade agreements. This Department also assists in the administration of export incentives and is involved in the registration of exporters.



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The Tourism Unit facilitates the development of the Tourism industry. Its functions are to market and manage Trinidad and Tobago as an International Tourism Destination. The Division encourages private sector participation to ensure the sustainable development of the sector, thereby optimising Tourism’s contribution to the economy of Trinidad and Tobago.

33 ..99 .. EEnnvviirroonnmmeennttaall IIss ss uueess

Trinidad and Tobago has a rich and unique terrestrial and marine biodiversity. The islands are endowed with an abundance of marine and coastal resources and a wide variety of flora and fauna. Like small island countries, the natural resource base of Trinidad and Tobago is fragile; this allows less room for error in its utilization and management. Environmental functions are administered by various governmental and non-governmental organizations. Specifically, the Institute of Marine Affairs addresses environmental concerns. Non-marine related concerns are largely addressed by the Ministry of Integrated Planning and Development. In March 1995, The Environmental Management Authority was established by an Act of Parliament. The main functions of this organization are:

§ To formulate a National Environmental Policy and specific sectoral policies, § To establish environmental standards and criteria, § To monitor compliance with these standards, and § To coordinate the activities of the Government and Non-Government Organizations with

environmental functions.

In the international arena, Trinidad and Tobago has participated in numerous fora and has made significant contributions to global policy in many areas related to the environment.

§ Trinidad and Tobago was an active participant in the United Nations Conference on the

Human Environment held in Stockholm in 1972. § It was a member of the implementation committee of the Montreal Protocol. § It was instrumental in the establishment of the Alliance of Small Island States (AOSIS), a

group established to bring the perspective of small island states to the international community in relation to the effects of climate change.

§ It participated in the signing of the final act of the Protocol concerning Specially Protected Areas and Wild Life in the wider Caribbean Area.

§ It participated in the 1992 Earth Summit.

Trinidad and Tobago is very aware that the environment is integral to the overall process of development. Depending on the project, investors are required to complete Environmental Impact Assessments for Industrial and Tourism Development activities. This is necessary to identify measures and interpret the significance of the impact of the implementation of these projects on the environment. In 2001 a green fund levy (0.10% of gross receipts) was introduced to enable grants to be made to community groups and organisations primarily engaged in activities related to the remediation, reforestation and conservation of the environment

IIVV TThhee FFiinnaanncciiaa ll SSyysstteemm


4466

IIVV.. TTHHEE FFIINNAANNCCIIAALL SS YYSS TTEEMM

Trinidad and Tobago has a well-developed financial system comprising:

• Commercial Banks • Credit Unions • Development Finance Institutions • Life and General Insurance Companies • Mortgage Finance Companies • Other Non-Bank Financial Institutions • The Stock Exchange • Trust and Pension Fund Managers • Unit Trusts and Mutual Funds • Venture Capital Companies Key legislation governing the above institutions in Trinidad and Tobago are the Central Bank Act, the Financial Institutions Act, Financial Institutions (Non-Banking) Act, the Insurance Act, the Money Lender’s Act, the Trustee Ordinance, the Co-operative Societies Act, the Securities Industry Act, the Companies Act and the Venture Capital Act. In 2003 a proposal was made to introduce legislation that would integrate the supervision of insurance companies and pension funds with that of the banking system under the authority of the Central Bank. A move intended to help us deal more effectively with the reality of Universal banking. The financial system in Trinidad and Tobago is dominated by commercial banks with an extensive network of 123 branches. In the last decade there has been considerable growth in the use of ATM’s for the provision of banking services, currently there are 2544 ATM’s in operation (average of 1 ATM per 5,000 persons). Recently banks have also been providing telephone and Internet banking services.

44 ..11 .. IInntteerreess tt RRaatteess

Table 4.1.1 Commercial Banks Interest Rates (At June 2002, Local Currency) Percentage per Annum

LOANS %

Commercial Banks Basic Prime Rate Term Demand Overdraft

12.00 13.63 12.50 13.00

Trust and Mortgage Finance Companies Residential Commercial

13.00 13.00

DEPOSITS Commercial Banks Ordinary Savings Special Savings Term Deposits 3 months 3- 6 months 6 – 12 Months

2.25 3.13 3.38 3.63 4.25



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Trust and Mortgage Finance Company 1-3 year deposits

9.8

Source: Review of the Economy 2002 Table 4.1.2 Interest Rates

(Foreign Currency) LOANS %

Commercial Banks Weighted average rate on foreign currency loans

10.40

Weighted average rate on foreign currency deposits

5.55

Source: Economic Bulletin, Central Bank of Trinidad and Tobago, August 2002

44 ..22 .. FFoorreeiiggnn CCuurrrreennccyy AAccccoouunnttss

There are no foreign exchange controls in force in Trinidad and Tobago. Individuals and companies can hold foreign currency deposit and chequing accounts in Trinidad and Tobago, and financial institutions are now allowed to give foreign currency loans. Interest rates vary according to the currency and institution.

44 ..33 .. AAcccceess ss ttoo LLoonngg--TTeerrmm FFiinnaannccee

Long-term financing is available through mortgage companies, trust companies, merchant banks, the Development Finance Limited and the Agricultural Development Bank, and through the issue of bonds.

44 ..44 .. VVeennttuurree CCaappii ttaall IInncceennttiivvee PPrrooggrraammmmee

In January 2001 the VCIP launched its Venture Capital Focus magazine, designed to provide news, information and insights to industry practitioners, entrepreneurs, business and financial advisors and policy makers. The Venture Capital Incentive Programme (VCIP) is a Government initiative aimed at mobilising equity financing for small and medium sized enterprises in the non-traditional sectors of the economy. The Venture Capital Act 1994 and the Venture Capital Regulations of 1996 govern the Programme, which was officially launched on October 1996. The cornerstone of the VCIP is an incentive in the form of a tax credit of 30% of the amount invested by each investor in a Venture Capital Company. Investors may be either individuals or corporations. A Venture Capital Company or “VCC” must be a newly registered company, with the words “venture capital” in its name. The VCC is formed specifically for the purpose of making equity investments in qualifying investee companies or “QICs”. Individuals and companies interested in establishing a VCC must become incorporated under the Companies Act and have at least $50,000 in paid up equity capital and an authorized capital of not less than $5 million and not more than $20 million. The VCC must also raise at least $500,000 in paid up capital and begin making equity investments within 12 months of its registration. By the end of its second year, the VCC must have invested at least 80% of its equity in one or more QICs.



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Once the VCC has been registered, the Office of the Administrator will issue tax certificates to each shareholder, within 45 days. These tax credits will amount to the highest marginal tax rate prevailing at the time of the investment in the VCC, currently 30%. Tax credits must be applied to taxes payable in the immediate year of income, however, in the event that the tax credits granted are in excess of the outstanding tax liability, then the additional tax credits may be carried forward and set-off against tax assessed for succeeding years of income. A company desirous of becoming a QIC must regis ter with the VCIP and meet certain basic criteria as set out in the Act. A QIC may be either a start up or existing company and must be incorporated under the Companies Act 1995 or be designated a CARICOM Enterprise under the CARICOM Enterprises Act. The potential QIC must also have fully paid-up capital of less than $3 million and employ no more than 75 employees. Funds received by a QIC from a VCC may be used for both capital expenditure and working capital. However, such funds cannot be used for lending, purchasing securities, acquiring land, entering into non-arms length transactions or for investments outside of Trinidad and Tobago except where the investment is directly in support of the activities of the QIC. A VCC is expected to hold investment it makes with a QIC for a period of at least five years but for no more than 10 years. Exit mechanisms available to the VCC include: • Sale of shares back to the business owner • Sale of shares to third parties • Initial Public Offering At present, there are three venture capital firms operating under the purview of the VCIP. These firms have provided investment capital to eight investee firms between 1998 to 2002 operating in tourism, media, marketing, entertainment and manufacturing. It is widely believed that venture capital funds should produce above average returns, given the high risk associated with the investment. However, since the investment under the VCIP began only in 1998 and given the five-year minimum investment period, it is still to early to say whether VCC’s will achieve a return on investment commensurate with the risk inherent in their investments For more information contact:

The Office of the Administrator Venture Capital Incentive Programme 23 Chacon Street Port of Spain TRINIDAD TEL: 1 868-624-3068 FAX: 1-868-624-5693

44 ..55 TThhee CCaappii ttaall MMaarrkk eett -- BBoonnddss ,, MMuuttuuaall FFuunnddss aanndd SS ttoocckk MMaarrkk eett

44 ..55 ..11 .. BBoonnddss

In Trinidad and Tobago, bonds have been used very successfully to raise funds by the Central Government, state owned enterprises and some of the larger, private companies, both in the local market as well as in foreign markets. In general, bonds issued on the local market are administered through private placement with a merchant bank or trust company. The experience in Trinidad and Tobago has been one in which bonds have been fully subscribed and quite often, over subscribed.



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Secondary market bond activity decreased for the period under review. Stock Exchange information indicates that bond market turnover was limited for the period ending June 2002, with a total of two Trinidad and Tobago dollar transactions valued at $613.5 thousand. There were nine United States dollar transactions, with traded market value of US$5 million, 32% less than its nominal value.

44 ..55 ..22 .. MMuuttuuaall FFuunnddss

At the end of 2002, there were four major entrants into the local mutual funds market, the Unit Trust Corporation (UTC) which was established in 1981, the Royal Bank of Trinidad and Tobago Limited which established its fund, the Roytrin Mutual Income and Growth Fund in March 1994, First Citizens Bank and the Republic Bank Limited which established its fund, the Republic Global Equity Fund, in July 1995. There are also institutions in Trinidad and Tobago that allow for participation in mutual funds invested abroad. The Praetorian Property Mutual Fund, which operates similar to a Real Estate Investment Trust (REIT) in the United States was launched in December 2002.

The Trinidad and Tobago Unit Trust Corporation was established by an Act of Parliament in 1981. It is regulated by the Unit Trust Corporation of Trinidad and Tobago Act 83:03. It is planned to restructure the Trinidad and Tobago Unit Trust Corporation into a public liability company by passing in Parliament the Trinidad and Tobago Unit Trust Corporation (Vesting) Bill 2002. This will allow for an initial public offering by the newly restructured Unit Trust Corporation. Other institutions licensed to conduct the business of a mutual fund nature, at present operate under the Financial Institutions Act. It is expected that new legislation to regulate the mutual fund market will be developed. Among the four Institutions operating in Trinidad and Tobago, there are Balanced (Growth and Income) Funds, Money Market Funds and Capital Appreciation Funds. A series of investment plans have also been structured to facilitate participation in the funds. These funds are invested in company and debt securities, certificates of deposits and mortgages and are invested both locally and overseas. Profits accruing to a Trust operated by a Financial Institution, licensed under the Financial Institutions Act, in respect of its unit trust business are exempt from corporation tax.

44 ..55 ..33 .. SS ttoocckk MMaarrkk eett

At December 31, 2002, there were 30 companies being traded on the stock market in Trinidad and Tobago, with a total market capitalisation of TT$48,099.25 million (approximately US$7,634.80 million). The total volume of shares traded was 97.49 million with a total value of TT$1,070,43 million (approximately US$169.91.million).

In 2002 the stock market had a 21.41% decrease in volume from 2001’s traded volume of 124.05 million shares. The market’s value however increased by 1.14 %over the previous year’s value of TT$1,058.33 million The Trinidad and Tobago Stock Exchange indices and volumes include five companies also listed in Jamaica and Barbados with their primary operations in those countries. The Stock Exchanges of Trinidad and Tobago, Jamaica, Barbados, Dominican Republic and the Bahamas have entered into an agreement for the harmonization of the regional capital markets. The project, funded by the Inter-American Development Bank, will examine and seek to improve the regulation, trading and clearance and settlement procedures in the region.



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The domestic scene at the beginning of 2003 is much more certain than the corresponding period in 2002. For 2003 we believe the market would increase, albeit not as strongly as in 2002. That is so because stock market prices have already factored in some of the positives to be delivered from the expanding economy as well as the reduction in tax rates which took effect in 2003.

For more information contact:

The Trinidad & Tobago Stock Exchange Limited 1 Ajax Street Wrightson Road Port of Spain TRINIDAD TEL: 1 868-625-5107/9 FAX: 1-868-623-0089 E-Mail: [email protected] Website: http://Stockex.co.tt

http://Stockex.co.tt

VV.. PPooll ii tt iiccaa ll SSyysstteemm


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VV.. PPOOLLIITTIICCAALL SS YYSS TTEEMM

Trinidad and Tobago is an independent Republic that has inherited and preserves the British tradition of parliamentary democracy upon which the constitution is based.

55 ..11 .. PPaarrll iiaammeenntt,, HHoouuss ee ooff RReepprreess eennttaattiivveess aanndd tthhee SS eennaattee

Following the Westminster model, Trinidad and Tobago is governed by a parliament consisting of 2 houses.

The lower house or House of Representatives is made up of the elected representatives of the 36 electoral constituencies and the Speaker of the House. General elections are held at least every five years. The upper house or Senate is comprised of 31 appointed members, which include independent members appointed by the President.

There are 3 major parties in Trinidad and Tobago: The United National Congress (UNC), the National Alliance for Reconstruction (NAR) and the People’s National Movement (PNM). The PNM currently forms the ruling group and the UNC is the Opposition. Tobago has a House of Assembly which deals with matters relating to the administration of the island of Tobago and implements policies relating to the island, that are referred by Parliament.

55 ..22 .. RRoollee ooff tthhee PPrreess iiddeenntt aanndd tthhee PPrriimmee MMiinniiss tteerr

The President is elected for a five-year renewable term by the Electoral College, which consists of all members of the House of Representatives and the Senate. The President of the Republic, His Excellency, George Maxwell Phillips, was sworn into office in March 2003. The Prime Minister has traditionally been the leader of the ruling party, elected by party members. The Prime Minister of the country is Mr. Patrick Manning, leader of the PNM party.

VVII.. LLaabboouurr


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VVII.. LLAABBOOUURR

66 ..11 .. LLaabboouurr FFoorrccee

Human Resource Base Trinidad and Tobago has a well-developed human resource base. Education has been a prime focus of the development strategy since its independence. The work force in Trinidad and Tobago is characterized by a high percentage of university graduates including those with postgraduate qualifications.

Legal, administrative, information technology and general management skills are widely available, as well as scientific, technical and engineering skills specific to industries such as agricultural, construction, petroleum and petrochemicals.

Table 6.1.1

Students Enrolled in Government and Assisted Schools Students Enrolled in

Government and Assisted Schools:

1998/99 1999/00 2000/01p

Primary 169,540 163,206 147,878 Government Secondary 18,244 17,811 23,341

Assisted Secondary 20,860 21,074 22,251 Junior Secondary 33,126 33,063 32,174

Senior Comprehensive 25,363 24,918 24,652 Composite Schools 8,401 8,676 9,363

Technical And Vocational 4,111 3,923 3,849 University of The West Indies

(St. Augustine T&T Students)*

5,609

6,818

6,924

Source: Central Statistical Office *Students Registration in First Degree and Higher Degrees (Full Time and Part-Time)

p- Provisional It should be noted that there are a large number of nationals attending Universities outside of Trinidad and Tobago, but no official statistics exist on the number. Apart from the other campuses of the University of the West Indies, in Barbados, Jamaica and the Bahamas, popular destinations for study include the United States, Canada, and the United Kingdom.

Labour Force

During the period October 2001 to March 2002 the number of persons in the labour force increased by 0.9% from 580,700 to 585,800. Notwithstanding the marginal increase in the labour force, there was significant reallocation of the labour force between the various sectors. Increases in the labour force were recorded in the following sectors: Electricity and Water (14.1%), Real Estate and Business Services (12.2%), Sugar (22.9%), Other Manufacturing (3.3%) and Construction (5.7%). These increases were mitigated by decreases in Agriculture, Forestry, Hunting, Fishing and Community (3.4%) Restaurants and

VVII.. LLaabboouurr


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Hotels (6.5%) and other Mining and Quarrying (7.1%), Social and Personal Services (2.1%).

Table 6.1.2 Labour Force Statistics

(Thousands) Population 1999 2000 2001 2002 Population (third quarter estimates)

1,285.7 1,262.4 1,266.8 1,275.7

Non-Institutional Population 15 Years and Over

926.0 936.6 947.3 961.0

Labour Force 563.4 572.9 572.3 584.1 Persons With Jobs 489.4 503.3 512.2 523.6 Persons Without Jobs 74.0 69.6 60.1 60.5 Participation Rate (%)3 60.8 61.2 60.4 60.8 Unemployment Rate (%) 13.1 12.2 10.5 10.3


1. Labour force as a percentage of non-institutional population 15 years and over. 2. Persons without jobs as a percentage of the labour force.

66 ..22 .. MMiinniimmuumm WWaaggeess

Minimum wages legislation is specified in the Minimum Wages Act, Chapter 88:04:No. 2. The national minimum wage for workers in Trinidad and Tobago is eight dollars per hour effective February 2003. There are also minimum wages orders for the following:

• Catering Industry • Shop Assistants • Household Assistants • Gas Station Assistants • Security Industry Employees

66 ..22 ..11 .. NNoorrmmaall WWoorrkk iinngg HHoouurrss

The normal working day for non-shift workers consists of 8 hours and a normal working week, 40 hours. These are inclusive of a meal break and rest period. Beyond the normal working day, a worker working continuously is entitled to a meal break and a rest period for each additional four hours.

66 ..22 ..22 OOvveerrttiimmee RReemmuunneerraattiioonn

The Minimum Wages orders set out the rules for overtime remuneration which pertain to:

− Time worked beyond eight hours (generally) − Time worked on days off − Time worked on Sundays − Time worked on public holidays.

Overtime remuneration is:

VVII.. LLaabboouurr


5555

• On normal working days: - one and one-half times hourly pay for time normally worked in excess of 4 hours, - two times hourly pay for additional extra 4 hours of work and, - three times hourly rate thereafter. • On Sundays, days off and Public Holidays: - twice hourly pay for time worked the first eight hours and, - three times hourly pay for time worked in excess of 8 hours.

66 ..33 .. RReettrreenncchhmmeenntt aanndd SS eevveerraannccee BBeenneeffii ttss AAcctt

The Retrenchment and Severance Benefits Act of 1985 lays down minimum severance pay which is payable in the event of redundancy. Union agreements will usually provide for three (3) to four (4) weeks severance for each year of service. In the event of the winding up of the “employer company” or the appointment of a receiver, severance benefits provided for under the act enjoy the same priority as wages or salaries under the winding up provisions of the Companies Act.

66 ..44 HHooll iiddaayyss

There are fourteen (14) statutory holidays and two (2) unofficial ones for Carnival.

Table 6.5.1 Holidays

Name Date Name Date New Year’s Day 1st January Corpus Christi 19th June Eid-ul-Fitr (As decreed) Emancipation Day 1st August Carnival Days Not Official Independence Day 31st August Spiritual Baptist Liberation Shouter Day

30th March Republic Day 24th September

Good Friday 18 April Divali (As decreed) Easter Monday 21 April Christmas Day 25th December Indian Arrival Day 30th May Boxing Day 26th December Labour Day 19th June

66 ..55 TTrraaddee UUnniioonnss

Employees may choose to join a union. The majority of workers including industrial, civil servants, teachers, members of the police force and fire services are represented by trade unions. Via the Industrial Relations Act, under which the Industrial Court is established, power is given to that court to settle trade disputes, prevent inappropriate industrial action and register collective agreements. Services deemed ‘essential’ such as electricity, water, health, fire, communications, and sanitation are prohibited from undertaking industrial actions such as strikes and lockouts.

VVII.. LLaabboouurr


5566

66 ..66 SS oocciiaall SS eeccuurrii ttyy

All employees between the ages of sixteen (16) and sixty (60) are covered by the National Insurance System, on an earnings-based system of benefits and contributions. Contributions are made, two-thirds by employer and one-third by employee. The employer is responsible for submitting payment of the full amount to the National Insurance Board after deducting the employees’ share from their wages. This contribution is also required of foreign employees.

Employees must also pay a health surcharge deducted by their employer on a weekly or monthly basis, or if self-employed, must remit the health surcharge on a quarterly basis. (See Section 10.7.2)

66 ..77 OOccccuuppaattiioonnaall SS aaffeettyy aanndd HHeeaall tthh

New legislation governing occupational safety and health has been drafted and is at present, in the form of a Bill. The new Act when proclaimed, will replace the Factories Ordinance, 1948 and the Employment of Women Act.

66 ..88 LLaabboouurr EExxcchhaannggee

The National Employment Service of the Manpower Unit of the Ministry of Labour, Manpower and Industrial Relations screens, registers, interviews and counsels nationals seeking employment. A skills bank of managerial, clerical, secretarial, technical, manipulative and unskilled categories of workers, is maintained and supports the placement of individuals in companies requesting assistance in recruiting staff. The service is provided free of charge.

VVIIII.. EEssttaabb ll ii sshh iinngg aa BBuussiinneessss


5577

VVIIII.. EESS TTAABBLLIISS HHIINNGG AA BBUUSS IINNEESS SS

As of April 1997, companies in Trinidad and Tobago as well external companies that have established a place of business in Trinidad and Tobago are governed by the Companies Act, 1995 (as amended by the Companies Amendment Act, 1997). This Act is based on the Canadian Business Corporations Act. Under the Companies Act, one or more persons may incorporate a local company. Companies have all the rights and powers of a natural person. External companies are registered under specific prescribed procedures under the Companies Act.

77 ..11 .. PPrriinncciippaall FFoorrmmss ooff BBuuss iinneess ss

The principal forms of business entities are:

⇒ Public and non-public limited liability profit companies ⇒ Non-profit companies ⇒ External companies ⇒ Partnerships ⇒ Sole proprietorships

77 ..11 ..11 .. PPuubbll iicc aanndd NNoonn--PPuubbll iicc LLiimmiitteedd LLiiaabbii ll ii ttyy CCoommppaanniieess

The non-public limited liability company intended for profit is the most common form of business. Non-public companies are required to have at least two directors but a public company is required to have no fewer than three directors, at least two of whom are not officers or employees of the company or any of its affiliates. Public companies are required to deliver a copy of their financial statements to the Registrar not less than 21 days before each annual meeting of the shareholders. Public companies are also required to have an audit committee unless they have been granted authorisation by the appropriate office to dispense with an audit committee. The audit committee is to be comprised of not less than three directors of the company, the majority of whom should not be officers or employees of the company or any of its affiliates.

77 ..11 ..22 .. EExxtteerrnnaall CCoommppaanniieess

External companies that establish a place of business in Trinidad and Tobago are required to register within fourteen days of their establishment. An external company is registered in Trinidad and Tobago by filing the following documents with the Registrar: • Application for Registration of an External Company (Form 20) • Affidavit or solemn declaration of an officer of the external company • A notarially certified copy of the corporate documents of the company • Statutory declaration of an attorney-at-law (Form 32) • Power of attorney (Form 22). The registration fee is TT$2,000 (approximately US$320) plus TT$40 (approximately US$6.35) for each of the above five documents.



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77 ..22 .. SS hhaarree CCaappii ttaall

Shares are issued without nominal or par value based on the principle that the shareholders are entitled between them to the net assets of the company. Companies may have different classes of shares. The distinction among classes of shares in terms of rights, privileges, restrictions or conditions is to be stated in the Articles of Incorporation of the company. At least one class of share must have each of the following basic rights of shareholders: • the right to vote at general meetings • the right to receive any dividend declared, and • the right to receive the net assets on liquidation. Companies must now establish a Stated Capital Account (SCA) for each class of shares or series of shares. This account would represent what has been invested and what must remain in the company. The SCA cannot be reduced if the company is insolvent, except in cases where it is being reduced by an amount that is not represented by realisable assets.

77 ..33 .. PPrroocceedduurreess ffoorr IInnccoorrppoorraattiinngg aa CCoommppaannyy iinn TTrriinniiddaadd aanndd TToobbaaggoo

Incorporation of Companies falls under the authority of the Registrar General who reports to the Attorney General and the Minister of Legal Affairs. The Registrar General is the Registrar of Companies. Incorporation of companies is administered by the:

Registrar of Companies, 72-74 South Quay, Port of Spain, TRINIDAD AND TOBAGO. TEL: 1-868-625-9971 FAX: 1-868-625-6530.



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77 ..33 ..11 .. RReeggiiss ttrraattiioonn FFeeeess

Under present legislation, all fees payable to the registry are paid in cash or certified cheque.

77 ..33 ..22 .. IInnccoorrppoorraattiioonn PPrroocceedduurreess

The process of incorporation comprises the following three major steps:

STEP 1

APPLICATION FOR NAME SEARCH AND NAME RESERVATION (FORM 25)

• If approved, response is collected within 2

working weeks

STEP 2

FILING OF ARTICLES OF INCORPORATION (FORM 1)

These are filed with:

• Declaration of Compliance (FORM 31)

• Notice of Directors (FORM 8)

• Notice of Address of Registered Office

(FORM 4) • A Certificate of Incorporation is issued

within 2 working weeks of filing documents

STEP 3

MAKING OF BY-LAWS

The By-Laws govern the conduct of the affairs of the company. There is no need to file the document at the office of the Registrar of Companies.



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77 ..33 ..33 .. NNaammee SS eeaarrcchh // NNaammee RReess eerrvvaattiioonn

The process requires completing the compulsory, simple form (Form 25), “Application for Name Search and Name Reservation.” This is submitted in duplicate with the prescribed fees of TT$25.00 (approximately US$4.00) to the office of the Registrar. There are a number of restrictions on what is considered a proper name of a company. These are described in Section 493 of the Act.

77 ..33 ..44 .. AArrttiicclleess ooff IInnccoorrppoorraattiioonn

Among the matters to be included in the Articles of Incorporation are: • the approved name of company • type of liability of its members • class of shares • restrictions if any, on share transfers or share ownership • any variations of pre-emptive rights • any restrictions on powers of directors • minimum and maximum number of directors • restrictions, if any, on the business of the company.

77 ..33 ..55 .. BByy-- LLaawwss

After the issue of a Certificate of Incorporation, directors meet to develop by-laws for the company. The by-laws that can be amended or repealed by resolution, are made for the regulation of the business or affairs of the company. By-laws, amendments or repeals must be submitted to the shareholders following their making, amendment or repeal, for confirmation.

77 ..44 .. OOtthheerr RReeqquuiirreemmeennttss

77 ..44 ..11 CCoommppaarraattiivvee FFiinnaanncciiaall SS ttaatteemmeennttss

Directors are required to present to shareholders at every annual meeting of shareholders, the: • comparative financial statements of the preceding financial year • the report of the auditor; if any, and • any further information regarding the financial position of the company



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77 ..44 ..22 .. CCoorrppoorraattee RReeccoorrddss

Companies are required to keep at its registered office, Articles of Incorporation and by-laws, any unanimous shareholder agreement, minutes of meetings and resolutions of shareholders and notices of changes in directors. Companies are also required to prepare and maintain a register of members, directors, secretaries, director’s holdings, (for public companies) and debentures, if any.

There are also certain statutory filing requirements, including an Annual Return and changes in: - Directors - Secretary

- Registered Office

77 ..55 .. MMaannaaggeemmeenntt

Directors of a company may direct the management of the business and affairs of the company or do so through its employees. Powers of directors may be restricted in the Articles of Incorporation or through the by-laws. Directors of a company who vote for or consent to certain resolutions contrary to the Act and which involve monetary distributions may be liable to restore to the company any amounts so distributed or paid and not otherwise recovered by the company. Reference is made specifically to directors’ possible liability in respect to: i. issue of a share other than for money; ii. purchase, redemption or other acquisition of shares; iii. payment of dividend; iv. financial assistance; v. payment of an indemnity.

77 ..66 .. AAuuddii tt RReeqquuiirreemmeenntt

All companies incorporated under local law are required to appoint auditors every year unless all shareholders at the general meeting agree not to do so. Auditors are required by the Companies Act to examine the financial statements and report to the shareholders.

Audit firms may also provide tax and consultancy services in Trinidad and Tobago.

Public companies are also required to have an audit committee unless they have been granted authorisation to dispense with an audit committee. The audit committee is to be comprised of not less than three directors of the company, the majority of whom should not be officers or employees of the company or any of its affiliates.

77 ..77 .. DDiivviiddeennddss

The Companies Act states that a company may pay a dividend in money, in property, or by issuing fully paid shares of the company.



6622

The company cannot pay a dividend in money or in property out of unrealized profits.

The Act also states that a dividend cannot be declared or paid if there are reasonable grounds for believing that: a) the company is unable, or would, after the payment, be unable to pay its liabilities as they

become due; or b) the realizable value of the company’s assets would be less than the aggregate of its liabilities

and stated capital of all classes.

77 ..88 .. AAccccoouunnttiinngg PPrriinncciipplleess

The financial statements must be prepared in accordance with International Accounting Standards.

77 ..99 .. RReeggiiss tteerriinngg ffoorr VVaalluuee AAddddeedd TTaaxx ((VVAATT))

VAT is essentially a consumption tax that was introduced in Trinidad and Tobago on January 1, 1990, at a standard rate of 15%. VAT Administration falls within the responsibility of the Board of Inland Revenue -VAT Administration Centre. Collection of VAT on imports is the responsibility of the Customs and Excise Division of the Ministry of Finance. Under the Value Added Tax Act, 1989, most businesses are required to:

⇒ Register with the VAT Administration Centre of the Board of Inland Revenue ⇒ Collect Tax at 15% on nearly all the goods and prescribed services they supply, unless

zero-rated or exempt ⇒ File a VAT Return and remit the net VAT collected to the VAT Administration Centre,

usually every 2 months on or before the 25th day of the month following the collection/return period.

Who Registers? Any sole proprietor, company, partnership, joint venture and other unincorporated body who conducts a business activity and, who makes commercial supplies within Trinidad and Tobago with a gross value in excess of $200,000 in any 12 month period is required to apply for registration for VAT. Under certain circumstances a supplier who is not resident in Trinidad and Tobago has the option to decide whether the supply of goods and services is made in Trinidad and Tobago. If the supply is made within Trinidad and Tobago the supplier could apply to register for VAT. This would be advantageous since it would allow the non-resident to claim the applicable input VAT paid on goods and services received in Trinidad and Tobago. It is important also for the resident that receives the goods or services, since the resident will be allowed to claim for the input VAT paid to the non-resident.

Some items are either exempt or zero-rated from VAT. Activities that are exempt include:

⇒ Medical, dental, hospital, optical and paramedical services other than veterinary services



6633

(see below) ⇒ Training and education in a public school or a private school registered under the

Education Act ⇒ Certain bus and taxi services ⇒ Financial Services ⇒ Real estate brokerage ⇒ Public postal services ⇒ Rental of residential property ⇒ Betting, gambling and lotteries ⇒ Services provided by non-resident person to an approved free zone company carrying on

an approved activity in a free zone.

Zero-rated supplies or services include:

⇒ Basic foodstuff (cheddar cheese, corned beef, curry, fresh butter, macaroni, peanut butter, salt, salted butter, sardines, smoked herring, toilet paper, yeast, baking powder, rice, flour, bread, milk, unprocessed foods)

⇒ Prescription drugs ⇒ Exports ⇒ Books ⇒ Agricultural equipment and animal feeds. ⇒ Repairs to yachts, aeroplanes and ships ⇒ International freight and ancillary charges ⇒ Domestic travel between Trinidad and Tobago ⇒ Range of healthcare items such as artificial joints, limbs and hearing aids ⇒ Computer hardware, software and accessories ⇒ Goods supplied to an approved free zone destination ⇒ Veterinary services.

How to Register for VAT The application forms (VAT 1 and VAT 2) supplied by the VAT Administration Centre have to be completed. VAT 1 requests the Board of Inland Revenue (B.I.R.) number as well as information related to the commercial supplies of the business. VAT 2 requests names, addresses and signatures of the directors, partners or members. Accompanying documents are as follows: Original Certificate of Incorporation or Original Certificate of Registration; all Original Incorporation and related Documents e.g. List of Directors. The VAT Administration Centre also requests a cash flow projection for a period of 12 months, which must be signed by a director and will also want to ascertain the date of commencement of the business and requires proof (e.g. invoices, contracts) that business has actually commenced. Upon registering, a Certificate of Registration is issued. The certificate must be displayed in public view at the place of business. The certificate bears a registration number that must be stated on all VAT invoices issued.

77 ..1100 .. NNaattiioonnaall IInnss uurraannccee,, IInnccoommee TTaaxx aanndd HHeeaall tthh SS uurrcchhaarrggee

National Insurance Under the National Insurance Act, Chapter 32:01, all employers and their employees, with a few



6644

exceptions3, must register with the National Insurance Board. To register as an employer, an Employer Registration Form (N.I. 1) must be completed in triplicate. After the application for registration is received, the company’s premises will be visited by an Authorised Officer of the Board, who would need to check the business records. When this investigation is complete, a National Insurance Certificate of Registration (N.I. 2 or 2A), will be issued containing the employer’s registration number.

Having registered the company, applications must be made to the Local District Office for registration of all employed persons and unpaid apprentices working for the company. Anyone who is employed and earns more than TT$-80.00 per week must be registered. Exemptions include a non-citizen who is exempt from Social Security Legalisation by virtue of International Conventions governing Diplomatic and Consular Relations, and anyone employed by an international or regional organization of which Trinidad and Tobago is a member and who is covered by a Social Security System operated by that organization.

Where the employer is a company, every employee must be registered, including one who may also be a major shareholder. Employers are required by Law to pay contributions on behalf of all employed persons and unpaid apprentices. An employee pays one-third and the employer pays two-thirds of each contribution, except in a few special cases. The company’s share of the contribution is considered an operating expense and is tax deductible in its entirety. The employee claims 70% of his share of the contributions as a tax relief. Effective May 3, 1999 there were significant restructuring of the National Insurance Contribution bands. National Insurance – Table of Contribution Payments

Earnings Class

Weekly

Earnings

Monthly Earnings

Employee’s

Contribution

Employer’s

Contribution

Total

Weekly

Class Z Weekly

I

$80.00 - $129.99

$347.00 - $562.99

$2.93

$5.86

$8.79

$0.60

II

$130.00 - $179.99

$563.00 - $779.99

$4.33

$8.66

$12.99

$0.88

III

$180.00 - $229.99

$780.00 - $996.99

$5.75

$11.50

$17.25

$1.17

IV

$230.00 - $289.99

$997.00 - $1256.99

$7.28

$14.56

$21.84

$1.48

V

$290.00 - $359.99

$1257.00 - $1559.99

$9.10

$18.20

$27.30

$1.85

VI

$360.00 - $429.99

$1560.00 - $1862.99

$11.07

$22.14

$33.21

$2.25

VII

$430.00 - $499.99

$1863.00 - $2166.99

$13.02

$26.04

$39.06

$2.65

33 EExxcceeppttiioonnss aarree tthhoossee wwhhoo eemmppllooyy oonnllyy ddoommeessttiicc oorr ccaassuuaall aaggrriiccuullttuurraall wwoorrkkeerrss oorr bbootthh..



6655

Earnings Class

Weekly

Earnings

Monthly Earnings

Employee’s

Contribution

Employer’s

Contribution

Total

Weekly

Class Z Weekly

VIII

$500.00 - $569.99

$2167.00 - $2469.99

$14.98

$29.96

$44.94

$3.05

IX

$570.00 - $649.99

$2470.00 - $2816.99

$17.08

$34.16

$51.24

$3.48

X

$650.00 - $729.99

$2817.00 - $3162.99

$19.32

$38.64

$57.96

$3.93

XI

$730.00 - $809.99

$3163.00 - $3509.99

$21.57

$43.14

$64.71

$4.39

XII

$810.00 & OVER

$3510.00 & OVER

$22.68

$45.36

$68.04

$4.62

Income Tax & Health Surcharge

Obtaining an Income Tax File number, is done through The Board of Inland Revenue, which falls under the Ministry of Finance. This number is used to submit income tax payments, as well as health surcharge payments. The process entails the completion of an I.T. Form P-11/74. The completed P-11/74 must be accompanied by a listing of individual directors’ names, addresses and personal Board of Inland Revenue (B.I.R.) income tax numbers, and the original (plus a copy) Certificate of Incorporation for the said company. All employees of the company must submit health surcharge payments. The numbers used for such payments are their income tax file numbers.

VVIIIIII.. TTrraaddee aanndd IInnvveessttmmeenntt AApppprroovvaa llss aanndd PPrroocceedduurreess


6666

VVIIIIII.. TTRRAADDEE AANNDD IINNVVEESS TTMMEENNTT AAPPPPRROOVVAALLSS AANNDD PPRROOCCEEDDUURREESS

88 ..11 .. IInnvveess ttiinngg iinn TTrriinniiddaadd aanndd TToobbaaggoo

Trinidad and Tobago is currently in the process of developing an Investment Promotion Act Legislation in respect of incentives and licences are expected to fall within this Act when passed and proclaimed.

88 ..11 ..11 .. CCiirrccuummss ttaanncceess UUnnddeerr WWhhiicchh LLiicceenncceess AArree RReeqquuiirreedd

There is no approval or licence required for foreign investors in Trinidad and Tobago, except:

⇒ to hold interest in land in excess of 5 acres for commercial purposes; ⇒ to hold interest in land in excess of 1 acre for residential purposes; ⇒ where the shareholding results in 30% or more of the total cumulative shareholding in

local public companies, being owned by foreign investors; ⇒ where a licence is required by anyone, whether national or non-national. (In such a

case, an application would have to be approved by the Ministry or authority responsible for that activity, for example, drilling or mining activities, the Ministry of Energy and Energy Industries; certain commercial activities, the Ministry of Trade and industry; financial institutions, the Central Bank).

Where investors wish to obtain fiscal incentives offered by the government, an application and approval is required.

88 ..11 ..22 .. AAppppll iiccaattiioonnss ffoorr IInncceennttiivveess

Applications for incentives are made through TIDCO the body that recommends to the various Ministries, whether a project should be approved for incentives. Final approval lies with the Ministries.

For the purpose of obtaining the incentives, Government is interested in factors such as:

• Environmental impact of the project • Proposed value of the investment • Employment potential of the proposed project, for nationals • Net foreign exchange cash flow • Local value added • Potential export sales • Value of imports of raw materials and other goods • Potential income arising from taxes and duties imposed

A number of applications are processed by TIDCO then passed to the relevant Government Ministry for approval. These include applications for:

• Import duties concessions under Customs Act Sec. 56 for raw materials for approved

activities • Fiscal relief’s under the Fiscal Incentives Act for Approved Industries



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• Tourism development incentives under the Tourism Development Act • Incentives for tourism projects • Incentives under the Finance Act 1988 • Tax exemptions on rental income for commercial/industrial property gains or profits

under the Income Tax Amendment Act 1992 • Foreign investment licence to hold commercial land in excess of 5 acres • Foreign investment licence where 30% or more of the total cumulative shareholding in

a local public company will be held by foreign investors • Work Permits.

FOR FURTHER INFORMATION PLEASE CONTACT THE TOURISM AND INDUSTRIAL DEVELOPMENT COMPANY

OF TRINIDAD AND TOBAGO LIMITED (TIDCO) 10-14 PHILIPPS STREET, P.O. BOX 222, PORT OF SPAIN, TRINIDAD, W.I., TEL: (868) 623-6022/3; FAX: (868) 625-0837; 800 SERVICES: 1 (800) 595 1TNT

CARIBBEAN EXPRESS, BOX #TTN316, 8425 NW 29th Street, MIAMI, FL 33122, USA

88 ..22 .. IImmppoorrtt aanndd EExxppoorrtt PPrroocceedduurreess

88 ..22 ..11 .. IImmppoorrttiinngg

Licences There are few items that require an import licence in order to enter Trinidad and Tobago. Importers wishing to import goods that require a licence, are required to apply for a licence from the Ministry of Trade and Industry. It is advisable to do so prior to arranging for the goods to be shipped, in the event that an application for a licence is denied. The list of items requiring an import licence is continuously reviewed, therefore, persons requiring information on whether the item they wish to import requires a licence, should contact the Licensing Section, Trade and Commerce Division of the Ministry of Trade and Industry.

Customs

A customs declaration form (Form C-82) is prepared by a customs broker on behalf of the importer. This form, accompanied by supporting documents, such as an invoice from the supplier, bill of lading, licence, if a licence was required, health certificates4 among others, has to be lodged with Customs, once the goods have arrived in Trinidad. The documents are scanned into the ASYCUDA system, for verification and extracting of statistical information and the duties determined accordingly.

Once the documents have been stamped by Customs and the duties paid, an inspection is carried out at the port of entry, before the goods are cleared.

44 TThheerree aarree ssoommee iitteemmss,, ssuucchh aass ffooooddss,, ddrruuggss,, ppllaannttss aanndd lliivvee aanniimmaallss,, wwhheerree aa hheeaalltthh cceerrttiiffiiccaattee iiss rreeqquuiirreedd ffoorr tthheeiirr iimmppoorrttaattiioonn ttoo TTrriinniiddaadd aanndd TToobbaaggoo.. CCuussttoommss rreeffeerrss tthhee ddooccuummeennttss ffoorr ssuucchh iitteemmss ttoo tthhee rreelleevvaanntt aauutthhoorriitt iieess,, wwhhiicchh iinncclluuddee tthhee FFoooodd aanndd DDrruuggss IInnssppeeccttoorraattee,, PPllaanntt QQuuaarraannttiinnee aanndd tthhee MMiinniissttrryy ooff AAggrriiccuullttuurree,, LLaanndd aanndd MMaarriinnee RReessoouurrcceess,, ffoorr tthheeiirr aapppprroovvaall.. WWhheerree tthheerree iiss aa qquueerryy,, ssaammpplleess ooff tthhee iitteemmss mmaayy bbee rreeqquuiirreedd ttoo uunnddeerrggoo tteessttiinngg bbeeffoorree ssuucchh iitteemmss aarree aalllloowweedd ttoo bbee ppuutt oonn ssaallee iinn tthhee llooccaall mmaarrkkeett..



6688

Duties and Concessions Raw Materials

Raw materials for approved industries are generally free of customs duties. Refer also to the Customs Act. Plant and Machinery The majority of capital plant and machinery is free of duty or subject to a 2.5% rate of duty. CARICOM Goods

Under the Caribbean Common Market (CARICOM) trade agreement, no duty is paid on goods coming from CARICOM member countries. For goods whose origin is outside of CARICOM, a Common External Tariff (C.E.T.) exists. Effective July 1, 1998, duties ranged from 0% to 20%.

Other Duty Free Goods

Under the various incentive programmes for approved projects, imports may be free of duty.

88 ..22 ..22 .. EExxppoorrttiinngg

Exporters are required to make a declaration to Customs on the goods to be exported prior to their export, and to have them examined before shipping. There is a system of priority for exports to ensure that the minimum time is spent in the declaration and verification process. The purpose of the declaration and verification is to prevent smuggling and ensure that restricted goods, such as some mining and fish products, are accompanied by their appropriate licences or certificates. Customs also performs agency duties in respect of the VAT Administration office. Here they verify that goods on which no VAT has been paid for the purpose of re-export, are being exported. Items being sent abroad for repairs are also subject to a verification check, since the duties charged on their return would be only on the cost of the repairs.

Exporting goods out of Trinidad and Tobago may involve contact with a number of organizations:



6699

Table 8.2.2.1 Export Licences, Certificates and Procedures Organization Name of the Procedure Comment

LICENCES

Ministry of Trade and Industry Export Licence Exporters are required to apply for licences from the Ministry of Trade and Industry for the export of goods on the negative list. Goods on the export negative list include some marine species for the protection of local heritage, live animals, works of art, artifacts and archaeological findings, minerals, plants, subsidized items and firearms. A prior recommendation in the form of a stamp, is also required from the organization responsible for safeguarding and monitoring the supply of the goods. These may include: Fisheries Division or Plant Quarantine of the Ministry of Food and Marine Resources, The Commissioner of Police for export of firearms and explosives or the Ministry of Energy and Energy Industries for Minerals.

HEALTH CERTIFICATES

Ministry of Agriculture, Land and Marine Resources

Export Health Certificate for Live Animals

The Ministry of Food Production and Marine Resources also issues export health certificates for the export of live animals, through the government veterinary office of the Wild Life, Forestry Division.

Plant Quarantine of the Ministry of Agriculture, Land and Marine

Resources

Phytosanitary Certificate This certificate may be required by the receiving country, for the export of plants, such as cut flowers.

Food & Drugs Inspectorate and Chemistry Divisions

of the Minist ry of Health

Health Certificate

This certificate may be required by the receiving country, for the export of fresh and processed foods, and drugs. The foods include fish, cooked meats, among others.

Analysis Chemistry Food & Drugs Division also undertakes the various analyses of the contents in foods, which may be required for labelling and/or packaging, or as a requirement of the importing country.

CERTIFICATES OF ORIGIN, FOR INCENTIVES OFFERED BY IMPORTING COUNTRY

TIDCO

Certificate of Origin for CARIBCAN, CARICOM/Venezuela and Colombian trade agreements.

Required for receiving the concessions under the Canadian/Caribbean agreement, the CARICOM/ Venezuela trade agreements and the bilateral agreement with Colombia.

Customs & Excise Division of the Ministry of Finance

Certificate of Origin for exports to the United States (General System of Preference (G.S.P.) certificate) and to Europe and the United Kingdom (Eur 1 certificate).

Required for receiving the concessions under the Caribbean Basin Initiative (C.B.I.) and under the Lomé Convention trade agreements, respectively. The forms are stamped by Customs.

Trinidad and Tobago Chamber of Industry & Commerce

Certificate of Origin Some countries specifically ask for a stamp from a body designated to issue Certificates of Origin. The Chamber of Industry and Commerce issues certificates for those countries where there is no trade agreement with Trinidad and Tobago.



7700

Ministry of Trade and Industry Authentication of signatories and / or Documents

Some countries specifically ask for a stamp from the Ministry of Enterprise Development, Foreign Affairs and Tourism, authenticating signatories and / or documents.



7711

CUSTOMS DECLARATION AND INSPECTION


Customs Declaration and Inspection Exporters are required to make a declaration to Customs on the goods to be exported, prior to their export. Documents are lodged at the Customs & Excise Division office in Port of Spain, San Fernando and Tobago. There is a system of priority for exports to ensure that the minimum time is lost in the declaration process.


Customs Inspection

Goods are subject to an examination before shipping, at the port of exit, for the purpose of preventing smuggling. Customs also performs agency duties in respect of the VAT Administration office, where they verify that goods on which no VAT has been paid, for the purpose of re-export, are being exported. Items being sent abroad for repairs, are also subject to a verification check, since the duties charged on their return would be only on the cost of the repairs.

88 ..33 .. OObbttaaiinniinngg CCoommmmeerrcciiaall PPrrooppeerrttyy

88 ..33 ..11 .. OOffffiiccee SS ppaaccee

A wide range of office space is available for rent, both within the central business district of Port of Spain, as well as in areas located around the city. There are several real estate agencies with commercial divisions that can assist a foreign investor in locating office space. Within the central business district of Port of Spain, rental of office space costs between TT$5.00 -TT$10.00 per square foot per month (approximately US$0.79 - US$1.58), inclusive of air-conditioning, carpeting and parking facilities in most cases. Executive Office Space (US$1.00). Outside the main city, rental costs may be as low as TT$1.80 approximately US$0.28 per square foot, to a high of TT$8.00 (approximately US$1.26 per square foot.

88 ..33 ..22 .. CCoonnss ttrruuccttiinngg PPrrooppeerrttiieess

The development approval process for buildings involves a number of steps. It should be noted however, that the current legislation under which these procedures are designed is being revised and to be established in a new Planning and Development Act is expected. This will aim at streamlining the process to make it easier for investors. The current process can be found in table 8.3.2.1



7722

Table 8.3.2.1 Constructing a Building Organizations with which Interfaces

ORGANIZATION/STEPS COMMENTS

DDeess iiggnn aanndd DDrraaffttiinngg ooff PPllaannss ..

Plans usually consist of the site plans, elevation, floor, and structural designs, plans for water distribution and sewerage disposal and may also contain an electrical wiring plan.

TToowwnn aanndd CCoouunnttrryy PPllaannnniinngg DDiivviiss iioonn ooff tthhee MMiinniiss ttrryy ooff IInnffrraass ttrruuccttuurree

DDeevveellooppmmeenntt aanndd LLooccaall GGoovveerrnnmmeenntt

For further guidance in the development process, applicants are advised to refer to

the document entitled “Guide to Developers and Applicants for Planning Permission” which was prepared by the Town and Country Planning Division.

The developer has two alternative optional routes to obtain planning permission to erect buildings: Option 1: a two-stage process of obtaining Outline Planning Permission by submitting an application in outline which must be followed by Approval of Reserved Matters before any works can commence on the site. Option 2: A single-stage process whereby a detailed application is submitted at first instance for Full Planning Permission. Outline Planning Permission requires submission of a site plan, Form TCP3 in duplicate along with a written description of the conceptual proposal. Outline Planning Permission grants permission for the broad land use, size and scale of the development and provides the site development standards and conditions of planning permission. The details of matters reserved in the Outline Planning Permission for subsequent approval must be submitted within one year of the date of the Outline Planning Permission failing which the permission expires and is of no effect. Approval of Reserved Matters is the stage of approval of the details reserved in the Outline Planning Permission and usually refers to design, ext ernal appearance, sitting, parking, access, etc. The details submitted must be consistent with the standards and conditions set out in the Outline Planning Permission. Plans, drawings and a completed Form TCP1 must be submitted in quadruplicate. Full Planning Permission requires submission of a detailed application at first instance providing all details, plans and specifications of the building, including its sitting, floor plans, elevations, design, external appearance, access, parking etc. This application is made on form TCP1 accompanied by required plans and drawings, all in quadruplicate.

A Certificate of Environmental Clearance (CEC) may also be requested in cases where the type of development is likely to cause an adverse impact on the environment or where the site is located in an environmentally sensitive area. A CEC may be requested upon the submission of an application for Outline Planning Permission, or upon submission of an application for Full Planning Permission.



7733

LLooccaall HHeeaall tthh AAuutthhoorrii ttiieess

Upon receiving either Approval of Reserved Matters or Full Planning Permission from the Town and Country Planning Division, plans are forwarded to the relevant local health authority, which ensures that the proposed development satisfies public health requirements, such as having sufficient ventilation, water and sewerage disposal arrangements, and for the issue of a building permit in respect of the structural integrity of the building.

Chief Designs Engineer Ministry of Works and Transport

Where the local authority does not have an in-house engineer, the Chief Designs Engineer of the Ministry of Works and Transport scrutinizes plans for their structural integrity.

WWaatteerr aanndd SS eewweerraaggee AAuutthhoorrii ttyy ((WWAASS AA))

They would be concerned with water distribution and sewerage disposal for major developments.

FFiirree SS eerrvviicceess

Required for buildings to which the public has access. This approval is required before Full Planning Permission.

FFaaccttoorryy IInnss ppeeccttoorraattee DDiivviiss iioonn

Required for developments that involve erection of factory buildings. This approval is a condition of Full Planning Permission.

HHiigghhwwaayyss DDiivviiss iioonn ooff tthhee MMiinniiss ttrryy ooff WWoorrkk ss aanndd TTrraannss ppoorrtt

Required if the development is to have direct access to a highway.

DDrraaiinnaaggee DDiivviiss iioonn -- MMiinniiss ttrryy ooff WWoorrkk ss aanndd TTrraannss ppoorrtt..

Required if a building is sited in an area susceptible to drainage problems and if effluent flows from the building.

CCoommmmiiss ss iioonneerr ooff SS ttaattee LLaannddss –– DDiirreeccttoorr ooff SS uurrvveeyyss

Buildings on leased State lands require approval of the Director of Surveys prior to submission of an application to the Town and Country Planning Division.

Water Connections from Water and Sewerage Authority (WASA)

Upon approval of plans for water distribution and sewerage disposal, a temporary water connection may be requested for the construction phase. For final connection, an inspection is carried out by WASA and a certificate is issued if the water and sewerage layout has been approved.

Electrical Connection from Trinidad and Tobago Electricity Commission (T&TEC)

An inspection must be carried out during the construction phase at a particular point in the installation of the wiring and, at the end, before approval and connection are made.



7744

Completion Certificate The Local Health Authority carries out an inspection during the

course of the construction and at the end. A completion certificate may be granted on completion up to a certain phase of the construction.

Quantity Surveyor’s Report If the project is to be financed by a financial institution, they will request a report from a designated Quantity Surveyor, who reports on the estimated cost of the building, based on the approved plans.

Valuation of the Property If the project is to be financed by a financial institution, they will

request a report from a designated Valuator, prior to construction based on the approved plans, and upon completion of the building. The Valuator report on the market value of the property based on several factors and recommends the amount of insurance coverage.

Commissioner of Lands and Surveys An assessment is carried out for the purpose of determining land and building tax rates. The assessment is then passed to the Water and Sewerage Authority for determining water rates.

88 ..33 ..44 .. BBuuyyiinngg aann EExxiiss ttiinngg PPrrooppeerrttyy

Apart from the legislation under the Foreign Investment Act of 1990 for the purchase of land by a foreign investor, there are no approvals required for buying a property, providing the use of the property remains the same. If it is going to be used for a purpose other than the intended use when it was constructed, the investor will have to obtain approval from the Town and Country Planning Division. If finance has to be sought from a financial institution, a valuation of the property would have to be obtained. In addition, the conveyance of the property would have to be undertaken by an Attorney, as well as a search conducted to ensure that title is clear.

88 ..44 .. WWoorrkk PPeerrmmiittss ,, RReess iiddeenntt SS ttaattuuss ,, VViiss aass aanndd PPaass ss ppoorrttss

88 ..44 ..11 .. WWoorrkk PPeerrmmiittss

Who requires a Work Permit? Under the Immigration Act Chapter 18:01 of Trinidad and Tobago, no person other than a citizen or resident is allowed to engage in any profession, trade or occupation whether for gain or not, or be employed, unless a valid work permit is in force in relation to that person.

Also included under the Immigration Act, is the allowance for a person other than a citizen or resident to be employed in Trinidad and Tobago for a maximum of up to 30 days at any one time in a 12-month period. This means that this person will be allowed to enter the country to work without a work permit only under the condition that he/she will be in the country for a period not exceeding 30 days and will not be re-entering the country within a 12 month period.



7755

How to apply for a Work Permit?

Applications for work permits are made through the Work Permit Secretariat, of the Ministry of National Security. Investors may also make the application through TIDCO. An individual cannot apply for a work permit on his own behalf. The application must be proposed by the Company with whom the individual will be employed in Trinidad and Tobago, the Joint Venture Partner, or by an Attorney.

Documents Required:

1. A completed application form plus 11 copies. 2. A covering letter from the Company, the Joint Venture Partner or the Attorneys

applying on behalf of the individual, explaining the thrust of the operations to be conducted and the reason for the work permit.

3. In the case of a foreign investor, the letter should also include the venture capital to be put into the business operations in Trinidad and Tobago. The letter should be addressed to:

TThhee PPeerrmmaanneenn tt SSeeccrreettaarryy ,, MMiinn iiss tt rryy ooff NNaatt iioonnaall SSeeccuurriittyy ,, 3311--3333 AAbbeerrccrroommbbyy SStt rreeeett ,,

PPOORRTT OOFF SS PPAAIINN.. TTEELL:: 11--886688--662233--22444411--88

FFAAXX:: 11--886688--662277--88004444 ..

4. Three photographs of the individual for whom the work permit is required, one of

which is attached to the original application form. 5. Two Character References, 1 of which must be from the last employer. 6. A police certificate of good character from the country where the individual has been

living over the last 5 years.

OOtthheerr RReeqquuiirreemmeennttss ffoorr EEmmppllooyyeeeess

7. The individual on whose behalf the work permit is required, must possess some

qualification that is unique and that a local resident does not possess. Proof of the qualifications must also be presented with the application.

8. An advertisement stating what the job entails, must have run for at least 1 to 2 weeks in 2 daily newspapers.

9. A copy of the advertisement must also be presented with the application. Cost of the Work Permit

There is an application fee of TT$600.00 (approximately US$95), which is non-refundable, and a fee for the duration of the work permit, at TT$450.00 (approximately US$71) per month. The full amount for the duration is payable upon approval of the permit and the duration.

Spouses and Children

Residence Visas are issued to the spouse and children of someone holding a work permit. If the spouse wishes to work, the same application procedure for work permits is undertaken.



7766

88 ..44 ..22 .. RReess iiddeenntt SS ttaattuuss

Persons qualifying to apply for the status of residency are from the following categories:-

(i) spouses of citizens or residents, (ii) parents of citizens/residents, and (iii) persons who have been working in the country for a

cumulative continuous period of five (5) years.

Such persons by reason of their education, occupational qualifications, employment record, training skills, or other special qualifications, must be established or are likely to establish themselves successfully in Trinidad and Tobago in a profession, trade, self operating business or agricultural enterprise, and have sufficient means of support to maintain themselves and their immediate family in Trinidad and Tobago.

In determining the suitability of an applicant for residency, the Minister shall be satisfied that the applicant: -

(i) had entered the country legally, (ii) is not in a prohibited class, and (iii) is of good character as evidenced by a Police Certificate of Character.

Should someone be granted residency he/she automatically has the right to work. An application accompanied by 3 photographs is submitted in duplicate to:

TThhee PPeerrmmaanneenn tt SSeeccrreettaarryy ,, MMiinn iiss tt rryy ooff NNaatt iioonnaall SSeeccuurriittyy ,, 3311--3333 AAbbeerrccrroommbbyy SStt rreeeett ,,

PPOORRTT OOFF SS PPAAIINN.. TTEELL:: 11--886688--662233--22444411--88

FAX: 1-868-627-8044.

Applicants may be required to show the marriage certificate and spouse’s or parent’s birth certificate or passport in the case of applicants whose spouses or parents are citizens or residents. Where the applicant is a person who has been working in the country for a cumulative continuous period of 5 years, they present the work permit. The applicant is also interviewed by the Immigration Department.

88 ..44 ..33 .. VViiss aass

All persons require visas to enter Trinidad and Tobago. However, due to historical ties and bilateral agreements, citizens of several countries are not required to have visas for entry as stated hereunder:



7777

(i) Commonwealth Countries except:

Australia India New Zealand Cameroon Fiji Nigeria Papua New Sri Lanka Uganda Guinea Tanzania Canada

(ii) EU Countries:

England Greece Ireland Spain France Portugal Italy Germany Belgium Netherlands Denmark Luxembourg

(iii) Countries having visa abolition agreements with Trinidad and Tobago

Table 8.4.3.1. Countries Having Visa Abolition Agreements With Trinidad and Tobago

The Government of Trinidad and Tobago has entered into reciprocal Visa Agreements with Brazil, Costa Rica, Colombia, Uruguay and South Korea.

Country For Holidays For Employment For Residence

Turkey No Visa Required Visa Required No Visa Required Sweden No Visa Required

(3 months or less) No Visa Required (3 months or less)

Visa Required

Norway No Visa Required No Visa Required Visa Required Iceland No Visa Required No Visa Required Visa Required Switzerland & Liechtenstein

No Visa Required

Visa Required

No Visa Required

Finland No Visa Required No Visa Required (3 months or less)

Visa Required

Israel No Visa Required Visa Required Visa Required Brazil No Visa Required Visa Required Visa Required Colombia No Visa Required Visa Required Visa Required Austria No Visa Required Visa Required Visa Required

(iv) Citizens of USA on Vacation for three (3) months or less

(v) Citizens of Venezuela arriving from Venezuela on vacation for fourteen (14) days or

less. Holders of Venezuelan Official and Diplomatic Passports accredited to Trinidad and Tobago are exempted from the Visa requirements for the period of their assignment. Holders of Venezuelan Official and Diplomatic passports not accredited to Trinidad and Tobago on Official Missions are exempted from visa requirements for one (1) month or less.

(vi) Citizens of Surinam, Martinique, Guadeloupe, French Guyana, Netherlands Antilles

(Curacao, Aruba, Bonaire, St. Eustatius, St. Maarten and Saba)

(vii) All holders of OAS passports do not require visas for entry into Trinidad and Tobago.



7788

(viii) Holders of UN passports require visas (if necessary as a result of their nationality). If on arrival at the Port of Entry, the person has no visas, the passport may be lifted and forwarded to the Chief Immigration Officer for a visa exemption to be requested. If there is not enough time, the passport may be held, a receipt given and returned to the holder on departure. Enough time could be seven (7) days.

(ix) Holders of Diplomatic Passports are not automatically exempted from visas.

(x) Citizens of South Africa are allowed entry into Trinidad and Tobago for religious,

cultural, sporting, educational activities with visas issued without reference. For any other purpose applications for visas must be referred.

(xi) Visa Waivers may be issued to persons not listed in the Second Schedule.

However, persons from the Far East or Middle East would only be given this facility after consultation.

Original list of Second Schedule Countries:

Albania North Korea South Vietnam Bulgaria Cuba

People’s Republic of China

North Vietnam USSR

Czechoslovakia Poland Hungary Romania Yugoslavia

Countries added to Second Schedule: Dominican Republic Kuwait Saudi Arabia Haiti Lebanon Sri Lanka India Libya Syria Iraq Nigeria Tanzania Jordan Papua New Guinea Uganda The former U.S.S.R., Czechoslovakia and Yugoslavia have been divided into the following:- U.S.S.R. Armenia, Azerbaizhan, Belarus, Estonia, Georgia, Kazakhstan, Kirghizia, Latvia, Lithuania, Moldavia, Russia, Tadzhikistan, Turkmenia, Ukraine, Uzbekistan. YUGOSLAVIA Bosnia-Herzegovina, Croatia, Montenegro, Serbia, Slovenia, the Former Yugoslav Republic of Macedonia. CZECHOSLOVAKIA The Czech Republic, the Slovak Republic.



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88 ..44 ..44 .. PPaass ss ppoorrttss

Passports valid for the length of stay are required for all arrivals.

88 ..55 .. IInntteell lleeccttuuaall PPrrooppeerrttyy

88 ..55 ..11 .. IInntteell lleeccttuuaall PPrrooppeerrttyy

In 1994, Trinidad and Tobago signed the Uruguay Round Final Act containing the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as well as a bilateral intellectual property rights agreement with the United States. In order to honour these two agreements, as well as several other intellectual property conventions and treaties, this country enacted several pieces of intellectual property legislation, which are as follows:

• Patents Act and Rules, 1996 • Copyright Act, 1997 and Copyright (Customs) Regulations, 2000 • Industrial Designs Act and Rules, 1996 • Geographical Indications Act, 1996 • Layout Designs (Topographies) of Integrated Circuits Act and Rules, 1996 • Protection Against Unfair Competition Act, 1996 • Protection of New Plant Varieties Act, 1997 and Regulations 2000 • Patents (Validation of International Applications filed under PCT) Act 1999 • Patents (Amendment) Act, 2000 • Intellectual Property (Miscellaneous Amendments) Act, 2000

Radical changes have also been made to this country’s trademark law by the Trade Marks (Amendment) Acts of 1996 and 1997. With the entry into force of the Patents Act, 1996 on December 1, 1997, the new Intellectual Property Office was created, headed by a Controller, who is responsible for administering all intellectual property laws in Trinidad and Tobago. Applications are made to:

The Controller Intellectual Property Office

72-74 South Quay Port of Spain Trinidad and Tobago TEL: 1 868 625 9972 FAX: 1 868 624 1221



8800

88 ..55 ..22 .. TTrraaddee MMaarrkk ss

The Trade Marks Act, Chapter 82:81, the Trade Marks (Amendment) Act, No. 17 of 1994 and the Trade Marks (Amendment) Rules 1994 Legal Notice No. 198, provide for the registration of both goods and service marks. The international classification of goods and services has been utilized since 20 October 1994, replacing the former national classification (the old United Kingdom Schedule III). Trademarks are being renewed in this old classification, but applications filed after 20 October 1994 follow the international classification.

Registration of trademarks may be submitted either in person or through an agent. Where the applicant is not resident or carrying on business in Trinidad and Tobago, the Registry’s practice is to require the appointment of an agent, usually an attorney-at-law, whose address is used as the address for service. If an agent is used, a formal, written notification must be given to the Registry, indicating that an agent has been appointed and that the agent has been given the authority to act on the applicant’s behalf. The key steps for registering a trademark are as follows:

1. An application must be made in the prescribed format and completed with a

representation of the trademark, either a device or word. Six prints of the mark must accompany the application. If the mark is filed in black and white, it is deemed registrable for all colours. Multiclass applications can now be filed.

2. Once the mark meets the requirements for registration, it is advertised in a periodical,

such as a daily newspaper. Once there are no objections within three months of the application, a certificate is issued.

3. The official fees for filing are TT$315 (US$50.00), advertisement charges of

approximately US$50.00 depending on the size of the advertisement and a Certificate fee of TT$157 (US$25.00). For each additional class filed in one application is TT$107 (approximately US$17.00). Once registered the term of a mark is valid for ten (10) years from the filing date.

The Trade Marks (Amendment) Act, 1996, which took effect on August 16, 1996, extended the scope of protection granted to registered marks, as well as introduced protection for well-known marks. The former fourteen (14) year term of protection was reduced to ten (10) years and criminal prosecution can now be brought in cases of unauthorized use of registered marks, including use of well-known marks. The Trade Marks (Amendment) Act, 1997 and Rules came into force on September 5, 1997 and introduced customs procedures with regard to border measures. Customs authorities will have the right to seize goods coming into Trinidad and Tobago, in order to prevent goods bearing infringing marks from being released into the channels of commerce.



8811

88 ..55 ..33 .. PPaatteennttss

The Patent Act, 1996 entered into force on December 1, 1997 and introduced a full search an examination system. In order to register a patent, the following documents are required:

- An Authorisation of Agent - Three (3) copies of the specification claims and drawings - A statement justifying the applicant’s right to the invention

(if the applicant is not the inventor)

The official fees for filing a patent application is US$335.00 and for requesting examination is TT$1575.00 (US$250.00). Annual maintenance fees are required to maintain the patent or patent application. Patents can also be filed under the Patent Co-operation Treaty. The time limits for entry into the national phase in Trinidad and Tobago are thirty months from the date of first filing under PCT Article 22 (Chapter 1) and thirty-one months under PCT Article 39 (Chapter II).

The term of a patent is twenty years from filing.. Applicants residing outside of Trinidad and Tobago must be represented by an attorney-at-law, registered, residing and having a place of business in Trinidad and Tobago.

88 ..55 ..44 .. IInndduuss ttrriiaall DDeess iiggnnss

The Industrial Designs Act, 1996 also entered into force on December 1, 1997 and continues the simple registration system of the former law. Protection is provided for industrial designs that are new and not contrary to public order or morality. The term of protection will be five years from the filing date. Registration can be renewed for two further consecutive five-year periods. In order to file an application, the following documents are required: - An Authorisation of Agent - Four (4) graphic representations (drawings or tracings) for 2-dimensional designs - Four (4) graphic representations (drawings or tracings) of each of the different sides

of the design for 3-dimensional designs - A statement justifying the applicant’s right to the registration of the design (if the

applicant is not the creator of the design)



8822

88 ..55 ..55 .. CCooppyyrriigghhtt

The Copyright Act, 1997 entered in force on October 1, 1997 and has taken into account this country’s multilateral and bilateral copyright obligations. Some of the changes introduced are the following: - the introduction of periods of protection for collective works (other than works of

applied art and audio –visual works), in which copyright vests in non-human authors such as publishing houses.

- the protection of works irrespective of its mode or form of expression (this means that aural works are protected, albeit, they have not been expressed in material form).

- neighbouring rights in a broadcast made by foreign performers and foreign producers will be protected.

- copyright in audio-visual productions made by foreign performers and foreign producers will be protected.

- civil and criminal proceedings can be brought against any person who or organization which manufactures or imports for sale or rental, any device (or means) which is specifically designed to decode or circumvent another device (or means) intended to prevent or restrict reproduction of a work or production.

- border measures



8833

88 ..55 ..66 .. GGeeooggrraapphhiiccaall IInnddiiccaattiioonnss

The Geographical Indications Act, 1996 which came into force on December 1, 1997 introduced protection for geographical indications in Trinidad and Tobago for the first time and a simple registration system. The subject matter of protection goes beyond appellations of origin and includes protection for indications, where the reputation or other characteristic of the goods is attributable to its geographical origin. Protection is available irrespective of registration, but registration raises a presumption that the indication registered is a geographical indication within the meaning of the legislation. Criminal sanctions may be imposed upon persons who deliberately and wrongfully use geographical indications.

88 ..55 ..77 .. LLaayyoouutt DDeess iiggnnss

The Layout Designs (Topographies) of Integrated Circuits Act, 1996 entered into force on December 1, 1997 and introduced protection for the first time in Trinidad and Tobago for layout designs of integrated circuits, which fulfil the meaning of originality as defined in the Act. A simple registration system is envisaged and the term of protection is ten (10) years, either from the date of first commercial exploitation or, if not yet commercially exploited, from the filing date.

88 ..55 ..88 .. UUnnffaaiirr CCoommppeettii ttiioonn

The Protection Against Unfair Competition Act, 1996 introduced legislation for the first time in Trinidad and Tobago to protect against unfair competition. The law provides, inter alia, for protection in the course of industrial or commercial activities, against the following:

- damaging another’s goodwill or reputation - causing confusion with respect to another’s enterprise - misleading the public - discrediting another’s enterprise or activities - disclosure, acquisition or use of secret information (trade secrets) including use

of secret test or other data submitted to a competent authority for marketing approval of pharmaceutical or agricultural chemical products utilizing new chemical entities.

In addition, any act or practice in the course of industrial or commercial activities that is contrary to honest practices, shall constitute an act of unfair competition

88 ..55 ..99 .. NNeeww PPllaanntt VVaarriieettiieess

The Protection of New Plant Varieties Act, 1997 came into force on December 1, 1997 introduced protection for plant breeder’s rights in respect of plant varieties of the genera and species listed in a special national list. Once the application fulfills the conditions of registration, namely, novelty, distinctiveness, homogeneity, stability and a variety denomination acceptable for registration, a breeder’s right is granted by the Intellectual Property Office. Applications may be filed by nationals or residents of Trinidad and



8844

Tobago, of States or Intergovernmental Organisations which are party to the International Convention for the Protection of New Plant Varieties (UPOV) of 1978 and of 1991 and States which, without being party to UPOV, grant reciprocity of treatment to Trinidad and Tobago. The new law is consistent with the UPOV Convention of 1978. The term of protection is either 15 or 18 years, depending on the genera or species to which the variety belongs. Renewal fees are payable annually.

Trinidad and Tobago is party to the following Conventions/Agreements on Intellectual Property:

1. Paris Convention for the Protection of Industrial Property of 20th March, 1883 (The

Stockholm Act (1967) as amended on October 2, 1979) 2. Berne Convention for the Protection of Literary and Artistic Works (1886) was

amended in 1979 3. Geneva Convention for the Protection of Producers of Phonograms Against

Unauthorized Duplication of Their Phonograms 4. Patent Co-operation Treaty 5. Trade Mark Law Treaty 6. Final Act Embodying the Results of the Uruguay Round of Multilateral Trade

Negotiations 7. Memorandum of Understanding Between the Government of Trinidad and Tobago

and the Government of the United States of America Concerning Protection of Intellectual Property

8. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks (1957)

9. Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks (1973)

Source: Brien Anthony de Gannes, J. D. Sellier and Company (SECTION 8.5 INTELLECTUAL PROPERTY) February, 2001

IIXX.. IInnvveessttmmeenntt IInncceenn tt iivveess


8855

IIXX.. IINNVVEESS TTMMEENNTT IINNCCEENNTTIIVVEESS

99 ..11 .. RReegguullaattiioonn

Investment incentives are co-ordinated through the Trade and Investment Unit of the Tourism and Industrial Development Company of Trinidad & Tobago Limited (TIDCO). TIDCO will assist investors in applying for approval of investment incentives.

There are many different investment incentives:

• Concessions from import duty on raw materials, machinery, and equipment for approved

industrial projects. • Exemption from corporation tax on profits, and from tax on dividends (under the Fiscal

Incentives Act and Tourism Development Act). • Loss write-off provisions. • Training subsidies for developing new skills. • Provision of industrial sites and developed industrial accommodation. • Export promotion and assistance. • Export credit insurance. • Double taxation relief. • Exemption from Value Added Tax on inputs for companies exporting 80% of production. • Free Zones under Act 19 of 1988. • Venture Capital Companies under Act 22 of 1994. • Incentives in some cases are available only to locally incorporated companies or locally

owned companies.

99 ..22 .. IImmppoorrtt DDuuttyy CCoonncceess ss iioonnss

The Customs Act Sec.56 allows for concessions to be granted to approved enterprises for approved industrial projects. The applications for approval are made to the Ministry of Trade and Industry via TIDCO and are granted to a wide range of manufacturing companies that provide increased employment and use local materials to add value.

99 ..33 .. TTaaxx HHooll iiddaayy -- FFiiss ccaall IInncceennttiivveess AAcctt



8866

The Fiscal Incentives Act allows for the granting of a tax holiday (or partial holiday) for periods up to ten years for the manufacture of approved products by approved enterprises. Approved enterprises fall into separate classifications including:

• Highly capital intensive enterprises investing in excess of TT$50 million (US$8.3million)

• Export enclaves, where products are manufactured exclusively for export.

• Enterprises using a significant portion of local inputs.

These concessions are discretionary and require applications to the Ministry of Trade and Industry via TIDCO. Recent precedents include the grant of five-year tax holidays to major petrochemical plants in Point Lisas. An approved enterprise will also be granted exemption from customs duties and VAT on the construction of the approved project. These projects have usually been large-scale manufacturing within one of the three classifications, and are available only to locally incorporated companies. The tax exemption can be extended to dividends that may be tax exempt and free of non-resident withholding tax on any taxes in excess of the investor’s tax rate on the dividend in his country of residence. Recent precedents include the grant of five year tax holidays to major petrochemical plants in Point Lisas and a reduction in the rate of corporation tax by 15% for seven years.

99 ..44 .. TTaaxx HHooll iiddaayy –– TToouurriiss mm DDeevveellooppmmeenntt AAcctt

Under the Tourism Development Act the owner an/or operator of the approved hotel is eligible for a tax exemption on profits for a period of up to seven (7) years in respect of newly constructed and renovated hotels. In addition, the following Tax Concessions are granted for an approved hotel project: a) import duty exemption on building materials and hotel equipment used in the construction or

equipping the project. Although value added tax remains applicable; b) business levy exemption; c) income tax exemption on dividends accruing to the owner/or operator; where a dividend is

paid to a non-resident the exemption is limited to the extent that the tax payable in Trinidad and Tobago exceeds the tax payable in his country of residence;

d) tax exemption to financial institutions on interest on approved loans for a period of 10 years or for the duration of the loan if less;

e) a person who makes an investment in a year of income in the equity capital of an approved hotel or tourism project is allowed a deduction in ascertaining his chargeable income such investment up to a maximum of twenty five percent of the investment. The deduction is spread equally over three years including the year in which the investment is made.

Tax concessions are granted on a discretionary basis by the Ministry of Culture and Tourism based on the size of the hotel and the capital expenditures involved.



8877

99 ..55 .. IInnvveess ttmmeenntt IInncceennttiivveess -- FFrreeee ZZoonneess AAcctt

The Free Zone Act 19 of 1988 allows for duties and tax exemptions over an indefinite period for manufacturing, international trading and service projects that are dedicated to export. Enterprises are approved by the Free Zones Company to operate in areas designated as free zones. The criteria for approval includes: - a company incorporated or registered in Trinidad and Tobago - job creation - new investment - development of skills - access to overseas markets Free Zone Enterprises are not subject to: - import and export licensing - customs duties and taxes - corporation or withholding taxes on profits or sales - land and building taxes - work permit fees Approved Enterprises can obtain approval to sell up to 20% of total exports into the domestic market, subject to applicable duties and taxes. Primary petroleum and natural gas projects or production activities in which petroleum, natural gas or petrochemicals are a major input and projects involving investment in excess of US$50 million would not qualify for free zone approval.

The prescribed activities that may be carried on in a free zone include:

- Warehousing and storing - Manufacturing - Transhipment - Loading and unloading - Exporting - Importing - Service operations including banking, insurance and professional services

- Packaging and shipping - Processing, refining, purifying and mixing - Constructing, altering, reconstructing, extending or repairing infrastructure or

premises and equipping of premises in a free zone. - Sale, lease, rental and management of free zone land, infrastructure, premises,

plant, equipment, facilitating and services. - Merchandising, including international trading in products

Banking and insurance activities carried on in a free zone are subject to the Financial Institutions and Insurance Acts respectively.



8888

99 ..55 ..11 .. FFrreeee ZZoonneess CCoommppaannyy

. The Trinidad and Tobago Free Zones Company Limited approves and regulates companies in free zones and makes recommendations to the Ministry responsible for Industry for designation of new free zones areas. For more information contact:

The Trinidad and Tobago Free Zones Company Limited Albion Court #61 Dundonald Street PORT OF SPAIN TEL.: 1-868-623-8363 or 1 868 625 4749

FAX: 1-868-625-4755.

99 ..66 .. CCoonnss ttrruuccttiioonn IInncceennttiivveess

Local construction is provided with a range of tax incentives some of which are discretionary and some of which are performance based.

99 ..66 ..11 .. AApppprroovveedd PPrrooppeerrttyy DDeevveellooppmmeenntt CCoommppaannyy

Companies engaged in both urban and rural property development may apply to the Board of Inland Revenue to be “approved” as an urban and rural property development company. To be approved, companies must be locally owned and undertake construction in both rural and urban areas. Once approved they are entitled to an allowance against their taxable income of 15% of construction costs for commercial properties completed in the year of income.

99 ..66 ..22 .. HHoouuss iinngg AAcctt EExxeemmppttiioonnss

The Housing Act allows for the approval of the profits from construction of certain dwelling houses to be tax exempt. To be exempt the houses must have construction costs of less than TT$250,000.

An approved housing company will also be allowed to distribute tax-exempt profits by way of tax-free dividends.

Any houses constructed by an approved housing company may then be exempted from income tax on rentals for a period of ten years from the construction date.

99 ..66 ..33 .. OOtthheerr CCoonnss ttrruuccttiioonn TTaaxx IInncceennttiivveess

The Income Tax Act also provides for construction incentives that are performance based. Any taxpayer may now obtain a wear and tear allowance on a newly constructed commercial property at the rate of 10% per annum on the declining balance.



8899

99 ..77 .. SS ppeecciiaall CCllaass ss eess ooff CCoommppaannyy

The Income Tax Act provides for several special classes of company that are entitled to a tax credit of 25% of their chargeable income for seven years. This reduces their effective tax rate to 15% from the statutory rate of 30%.

These special classes of company include:

• approved small companies

• approved companies trading in a regional development area

• an approved activity company. These special companies must be locally incorporated and owned and are subject to a rigorous approval process to ensure criteria defined in the Income Tax Act are complied with. The approval process is via TIDCO except for approved small companies which is via the Business Development Company Limited.

99 ..88 .. LLooss ss RReell iieeff

The Income Tax Act and Corporation Tax Act provide for the carry-forward of tax losses without limitations. Tax losses may be lost if a company’s ownership changes with a view to transferring the losses. Group relief is available for 100% owned subsidiaries and parents but the company benefiting from surrendered tax losses must pay at least 75% of the taxes that would otherwise have been due.

99 ..99 .. SS ppeecciiaall TTaaxx AAll lloowwaanncceess ffoorr EExxppoorrtteerrss

Performance based incentives exist to encourage exports, in particular: -

• Promotional Expenses

Promotional expenses wholly and exclusively incurred in order to create or promote the expansion of foreign markets (outside CARICOM) for the export of goods or construction industry services are allowed to be grossed up to 150% of the expenses incurred.



9900

99 ..1100 .. VVeennttuurree CCaappii ttaall AAcctt

The Venture Capital Act established a venture capital investment programme to approve venture capital companies. A tax credit is allowed at the marginal rate for investment in registered venture capital companies that are approved and monitored by a government appointed administrator. Dividends from a venture capital company are tax-exempt. For more information contact:

The Office of the Administrator

Venture Capital Incentive Programme 23 Chacon Street Port of Spain

Trinidad W.I. TEL: 1-868-624-3068 FAX: 1-868-624-5693

99 ..1111 .. NNoonn--TTaaxx IInncceennttiivveess

Several non-tax incentives exist to assist increased production and Extra-Caricom exports. These are administered by TIDCO.

99 ..1122 AAggrriiccuull ttuurraall IInncceennttiivveess

The Ministry of Agriculture, Land and Marine Resources has designed a new package of agricultural incentives including:

• fiscal incentives, mainly in the form of duty-relief for a range of items such as : - wheel tractors, - agricultural inputs (e.g. insecticides, herbicides, fungicides, etc.), - hand tools, - small machinery, - vitamin/drug preparations for livestock/poultry, - vehicles (VAT relief), - stamp duty exemption on a range of agricultural inputs, marine accessories, boat

equipment.

• guaranteed prices for the following commodities : - sugar - rice - coconut - citrus - cocoa - coffee - milk

• Other direct support measures such as : - input subsidies : planting material, breeding stock, fuel, etc. - subsidised services : soil conservation, veterinaries services - subsidies for pasture establishment/rehabilitation, water pumps and other specific

investments.



9911

This incentive programme is expected, among others, to attract higher levels of investment capital and technology, foster linkages between primary producing and agro-processing sectors and enhance the foreign exchange earning capacity of both traditional and non-traditional sectors.

This set of incentives is only available for registered farmers. Farmers who wish to be registered would have to address their request to one of the regional offices of the Ministry of Agriculture, Land and Marine Resources according to their place of residence.

XX.. TThhee TTaaxx SSyysstteemm


9922

XX.. TTHHEE TTAAXX SS YYSS TTEEMM

1100 ..11 .. TThhee TTaaxx SS yyss tteemm

1100 ..11 ..11 .. PPrriinncciippaall TTaaxxeess

The principles in Trinidad and Tobago are income tax, including withholding tax, corporation tax, business levy, green fund levy, various petroleum taxes, value added tax (VAT) and customs and excise duties. Other taxes include stamp duties, road traffic licence fees, road improvement tax, local real estate taxes and betting and gambling taxes. No inheritance or gift taxes are levied and there are no death duties.

The Tax System at a Glance

OOTTHHEERR TTAAXXEESS:: SSTTAAMMPP DDUUTTYY ((IINNCCLLUUDDIINNGG CCOONNVVEEYYAANNCCEE OOFF RREEAALL EESSTTAATTEE));; RREEAALL EESSTTAATTEE TTAAXXEESS;; HHOOTTEELL

RROOOOMM TTAAXXEESS IINNSSUURRAANNCCEE PPRREEMMIIUUMM TTAAXXEESS;; RROOAADD TTRRAAFFFFIICC LLIICCEENNCCEE AANNDD VVEEHHIICCLLEE TTRRAANNSSFFEERR TTAAXX;; BBEETTTTIINNGG,, GGAAMMIINNGG AANNDD LLOOTTTTEERRIIEESS;; RROOAADD IIMMPPRROOVVEEMMEENNTT TTAAXX

5500%% PPeett rroo lleeuumm PPrrooffiitt ss TTaaxx 55%% UUnneemmppllooyymmeenntt LLeevvyy

INCOME TAX

CCUUSSTTOOMMSS AANNDD EEXXCCIISSEE DDUUTTYY

30% highest rate

mmaaxxiimmuumm 1155%% oonn dd iivv iiddeennddss mmaaxxiimmuumm 2200%% oonn oo tthheerr ppaayymmeennttss

BUSINESS LEVY

VVAALLUUEE AADDDDEEDD TTAAXX ((VVAATT))

CORPORATION TAX

30% on chargeable profits.

SSuupppplleemmeennttaall PPeett rroo lleeuumm TTaaxx ((SSPPTT)) 1155%% LLaanndd OOppeerraatt iioonnss aanndd 5555%% ffoorr MMaarriinnee OOppeerraatt iioonnss

CCoommmmoonn EExxtteerrnnaall TTaarriiffff

WW IITTHHHHOOLLDDIINNGG TTAAXX

1155%% oonn cchhaarrggeeaabb llee ss uupppplliieess

PPEETTRROOLLEEUUMM TTAAXXEESS

GGRREEEENN FFUUNNDD LLEEVVYY

00..1100%% oonn ggrrooss ss ss aalleess aanndd rreecceeiipp ttss

2% on gross sales

35% on chargeable profit s of petrochemical, LNG and petroleum marketing companies



9933

1100 ..11 ..22 .. BBaass iicc LLeeggiiss llaattiioonn

There is a wide range of tax and incentive legislation including:

- Income Tax Act

- Corporation Tax Act - Value Added Tax Act - Petroleum Taxes Act - Income Tax (In Aid of Industry) Act - Unemployment Levy Act - Income Tax (Employment) Regulations

- Double Tax Treaties - Tourism Development Act - Fiscal Incentives Act.

Amendments to the tax laws are made each year with the passing of the National Budget and Finance Act. Generally, the legislation requires voluntary compliance.

1100 ..11 ..33 .. PPoowweerrss ooff TThhee BBooaarrdd ooff IInnllaanndd RReevveennuuee

The Board of Inland Revenue has wide statutory powers including:

° To request all such information as is required in order to be satisfied that the

taxpayer has fully complied with the law.

° To enter the taxpayer's premises and carry out searches.

° To require that books and records are kept for at least 6 years.

° To garnishee any amounts which are outstanding after due notice has been given to the taxpayer.

° To undertake civil or criminal legal action for any wilful offence or neglect by a

taxpayer.

1100 ..11 ..44 .. AAddmmiinniiss ttrraattiioonn

Tax laws are administered by the Board of Inland Revenue which is headed by a Chairperson and comprises four commissioners, each dealing with different areas. The Board is also responsible for the administration of VAT.

The Board of Inland Revenue does not usually give advance rulings on taxation matters.

1100 ..11 ..55 .. TTaaxx YYeeaarr

The tax year is the calendar year. The tax year for a business usually corresponds to the twelve months ending with its accounting year. Special rules operate on the commencement and cessation of business and when a company changes its accounting year-end.



9944

1100 ..11 ..66 .. TTaaxx RReettuurrnnss

From income year 2001, individuals who are in receipt of emolument income only, need not file income tax returns. However, for all other persons a tax return must be submitted, on a form issued by the Board of Inland Revenue, by 30 April of the year following that in which the business accounting year ends. There is no statutory requirement for the financial statements accompanying the return to be audited. They must, however, be prepared on an accruals basis. Any other basis would require the approval of the Board of Inland Revenue. Books and records must be kept in English, maintained in Trinidad and Tobago, in Trinidad and Tobago currency.

1100 ..11 ..77 .. AAss ss eess ss mmeenntt aanndd AAuuddii tt

Upon receipt of a tax return, the Board of Inland Revenue is required by the tax legislation to raise an assessment as soon as possible thereafter. The Board is not bound by a return or information supplied by the taxpayer in making an assessment. In practice the Board of Inland Revenue takes between 12 to 24 months to make an assessment. Frequently, as a matter of practice, the Board selects returns for audit after the assessment notice has been issued. Where as a result of the audit or otherwise, at any time within 6 years of the end of a particular year of income or 3 years from the date on which the return was filed whichever is the later, it appears, to the Board that the taxpayer has not been properly assessed, the Board may make an additional assessment to reflect the amount which in the judgement of the Board ought to have been charged. Where a taxpayer fails to submit a return the, Board is empowered to make an assessment based on any information in its possession on a best estimate basis.

1100 ..11 ..88 .. DDiiss ppuutteess aanndd AAppppeeaallss

If an assessment is disputed, a company may object in writing within 15 days of the service of the notice of assessment. The Board of Inland Revenue has two years in which to determine the objection, otherwise it is deemed to be determined in the taxpayer’s favour. When an objection is disallowed, the company may, within 28 days of being notified of this decision by the Board of Inland Revenue, lodge an appeal with the Registrar of the Appeal Board. The Appeal Board is a superior court of record, and accountants may not represent their clients before it. Appeals are heard in camera, and the burden of proof rests with the appellant. Decisions of the Appeal Board are final on questions of fact, but an appeal can be made to the Court of Appeal and, thereafter, to the Privy Council on questions of law. Any tax which becomes payable following the determination of an appeal must be paid within 30 days of the Appeal Board's decision. There are no special commissioners to act as a buffer between the Board of Inland Revenue, the taxpayer, and the Appeal Court, and litigation is expensive. The amount of tax in dispute is therefore relevant when deciding what action to take in any disagreement with the Board of Inland Revenue.



9955

1100 ..11 ..99 .. PPeennaall ttiieess aanndd IInntteerreess tt

When any taxes are not paid by the due date through the taxpayer’s default, interest is charged on the overdue amounts, at 20 percent per annum. Interest on overdue tax is not a deductible expense in arriving at taxable income.

1100 ..22 .. CCoorrppoorraattee TTaaxxeess

1100 ..22 ..11 .. RReess iiddeenntt CCoommppaanniieess

A resident company is liable to taxation on its worldwide income (including short-term capital gains). A company in this context is any corporate body or unincorporated association but does not include a partnership. A company is considered to be resident in Trinidad and Tobago if its "central management and control" is ordinarily situated there. Whether this test is satisfied is determined by the facts in each case. The place of incorporation is irrelevant.

1100 ..22 ..22 .. NNoonn--rreess iiddeenntt CCoommppaanniieess

A non-resident company is liable to tax only on income arising in or derived from Trinidad and Tobago, including the continental shelf and the exclusive economic zone. The question of where income arises or is derived from sometimes poses a problem as source of income is not defined.

If the company carries on a trade or business in Trinidad and Tobago, the tax applying to its Trinidad and Tobago-source income (whether or not directly connected with the business) is corporation tax or business levy whichever is higher. Companies in the first 3 years following commencement of business are exempt from business levy. A company is automatically deemed to be carrying on a trade or business in Trinidad and Tobago if it has an office, place of business, branch, or agency there. Branch profits (after deducting corporation tax) are subject also to a withholding tax, unless reinvested to the satisfaction of the Board of Inland Revenue otherwise than in the replacement of fixed assets. Dividends paid to a non-resident company are subject to a final (definitive) withholding tax.

If the company does not carry on a trade or business in Trinidad and Tobago, its tax liability on local-source income is settled by final withholding taxes (see Withholding Taxes). Corporation tax does not apply.

The rules described above may be modified by double taxation agreements (tax treaties).



9966

1100 ..22 ..33 .. CCllooss ee CCoommppaanniieess

Special rules exist for close companies, which may be broadly defined as companies under the control of their directors or under the control of five or fewer persons. In principle, the Board of Inland Revenue may direct a close company to distribute as dividends any profits that are not required for the current needs and future development of the business and that may be distributed without detriment to the company's existing business. In practice, since the marginal rate of income tax and the rate of corporation tax are the same, the Board of Inland Revenue rarely invokes the provision of the Act relating to Close Companies’ distributions. In addition, various types of payments made by a close company to its directors and shareholders may be regarded as distributions of profit rather than as deductible expenses (see Distributions).

1100 ..22 ..44 .. TTaaxx TTrreeaattmmeenntt ooff PPaarrttnneerrss hhiippss

A partnership is not a chargeable entity for income tax purposes, although a partnership return must be filed showing the allocation of the partnership profit or loss among the partners. Each partner is liable for income tax on his own share of the profit.

1100 ..22 ..55 .. JJooiinntt VVeennttuurreess

A joint venture is treated in the same way as a partnership for tax purposes. Companies wishing to cooperate in some joint activity must use a joint venture as they are not permitted by law to enter into partnerships.

1100 ..22 ..66 .. TTaaxxaabbllee IInnccoommee aanndd AAll lloowwaabbllee DDeedduuccttiioonnss

The taxable income of a resident company is all its income (including short-term capital gains) wherever arising and whether or not remitted to Trinidad and Tobago, after deducting exempt income and allowable expenses and outgoings.

Dividends Dividends received from a resident company, other than preference dividends on shares issued before 31 January 1966, are exempt from corporation tax.

Dividends received by a resident company from a non-resident company are included in income subject to corporation tax gross of any foreign withholding tax that may have been deducted. A credit for the withholding tax and, in some circumstances, foreign tax on the profits out of which the dividend was paid may be available against corporation tax payable on the dividend (see Double Taxation Relief and Tax Treaties).

Capital Gains

Profits from the disposal of fixed assets are subject to corporation tax only to the extent that they represent a recovery of tax depreciation allowances previously deducted or where the profit is a short-term capital gain.



9977

A short-term capital gain is a gain, broadly computed as the excess of proceeds over cost, on the disposal of an asset within 12 months of its acquisition or the reacquisition within 12 months of disposal. Only short-term capital gains (e.g. from the disposal of real estate) are taxable. A short-term capital loss may be set off only against short-term capital gains arising in the same year or in subsequent years. It may not be set off against other income, and other losses may not be set off against short-term capital gains. Capital gains (including short-term gains) on securities are exempt, and capital gains on assets held more than one year are also exempt.

Inventory Valuation

Inventories are generally valued at the lower of cost, on the first-in, first-out basis, and net realisable value. The “last-in, first-out” method is not acceptable. However, any method of inventory valuation that accords with generally accepted accounting principles and that is consistently applied will be acceptable.

Exempt Income

Apart from dividends received from resident companies and exempt capital gains, exempt income also includes income exempted under tax incentive legislation such as the Fiscal Incentives Act 1979 (described earlier under Tax Incentives) and income exempted under tax treaties. Exchange Fluctuations The accounting treatment of exchange gains and losses is normally in accordance with that recommended by International Accounting Standard 21. Gains or losses on long-term assets and liabilities are usually treated as capital items, neither allowed as a deduction nor taxable in the current tax computation. Allowable Deductions Expenses and outgoings must be wholly and exclusively incurred in the production of the company's income in order to be deductible.

Depreciation

Depreciation charged in the annual financial statements is not deductible for taxation purposes. It is replaced in the computation of taxable income by initial and annual wear and tear allowances. The rates of annual wear and tear allowances are set out in the seventh schedule of the income tax act. Broadly, they are intended to recover the cost of the over its useful life.

Wear and tear allowances must be calculated on the reducing balance basis on actual cost, except for private motor vehicles, the cost of which is limited to TT$100,000. Indexation for inflation is not permitted.

Machinery and Equipment

This category includes not only manufacturing machinery and equipment but also such items as office equipment, furniture, fixtures and fittings, vehicles and ships.

Manufacturing companies are, under the Income Tax (In Aid of Industry) Act, entitled to an initial allowance of 60 percent of cost for machinery and equipment in the year of acquisition. For companies engaged in the production of petroleum, petrochemicals, or sugar the rate of allowance is 20 percent. All companies carrying on a trade, business, or profession are entitled to annual wear and tear allowances on their machinery and equipment, calculated according to the declining-balance method. In the first year, the initial and annual allowances are calculated on cost. Thereafter, annual allowances are



9988

calculated on the balance of cost after deducting the allowances previously granted. With effect from 1st January, 1995 additions to fixed assets will be pooled in various categories. The rates of annual wear and tear allowances are set out in the legislation from January 1, 1995 on the reducing balance basis:-

Class Rate

A 10% B 25% C 33.3% D 40%

The seventh schedule to the Income Tax Act details the assets that fall into each class.

Very broadly the classes are:- A - Furniture B - Plant and machinery C - Heavy equipment and computers D - Aircraft Industrial Buildings

Manufacturing Companies, under the provisions of the Income Tax (In Aid of Industry) Act are entitled to a 10 percent initial allowance and a 2 percent annual wear and tear allowance for expenditure on new industrial buildings and structures. In the case of petroleum operations, the rate of the annual allowance is 5 percent. The annual allowance is calculated on the basis of cost before deducting the initial allowance, using the straight-line method. Industrial buildings include factories, warehouses, and housing for workers as well as other buildings provided for their welfare, such as sports pavilions. The purchaser of a second-hand industrial building cannot claim an initial allowance. A straight-line annual allowance is given instead, for the remaining assumed life of the building, on its price to the purchaser or an amount equal to the original cost when new, if this is less.

If the business carried on by a company is not that of manufacturing, only buildings that are used exclusively for housing machinery and equipment used in the company's business qualify for wear and tear allowance. An annual allowance is granted in this case of 2 percent, using the straight-line method, or 5 percent, using the declining balance method. No initial allowance is available.

With effect from January 1, 1995 newly constructed buildings used in the production of income (i.e. industrial and commercial and rental properties) will receive a 10% wear and tear allowance using the declining balance method.



9999

Land The cost of land is not depreciable for tax purposes.

Intangibles Expenditure on acquiring patent rights, trademarks, and goodwill must be capitalised. Only manufacturing companies subject to the provisions of the Income Tax (In Aid of Industry) Act may depreciate such expenditure for tax purposes. Research and development expenditure is deductible in the year in which it is incurred, whatever the type of business, although very substantial expenditures may be written off over a longer period.

Balancing Allowance or Charge

If an asset that has qualified for tax wear and tear allowances is sold at a price less than its tax written-down value, a balancing allowance is deductible equal to the deficiency. Tax written-down value is the initial cost of the asset less tax wear and tear allowances, but not investment allowances, previously deducted. Conversely, if disposal proceeds exceed the tax written-down value, the excess (called a balancing charge), up to the amount of the tax depreciation allowances previously deducted, is taxed as part of the profit for the year. Where machinery and equipment is replaced, a balancing charge arising on the sale of the original assets may be deducted from the tax-depreciable cost of the replacement assets instead of being taxed in the year in which it arises. No balancing charge may be deemed to arise on the disposal of an industrial building if it has been used for more than 50 years.

When an asset is transferred between affiliated companies, balancing allowances and charges may be avoided if both companies make an appropriate election (see Groups of Companies).

With effect from January 1, 1995 assets are pooled (see machinery and equipment) into categories. Proceeds on sale of or money received by way of insurance or compensation for pooled assets are deducted from the tax written-down value of the pool. A balancing allowance or charge is made only when the pooled assets are fully written-down.

Revaluation of Assets

A revaluation of fixed assets has no tax consequences. The surplus on revaluation is not taxable, and tax wear and tear allowances continue to be calculated on the basis of original cost, not enhanced asset values.

Taxes

Rates (real estate tax) are deductible. Corporation tax, business levy and green fund levy are not deductible, nor are foreign income taxes except to the extent that they exceed the limit for credit relief under the unilateral provisions of a tax treaty.

Formation and Start-up costs These costs are not tax deductible.

Interest

There is no general definition of interest in Trinidad and Tobago’s tax legislation. The meaning assigned the meaning assigned to the term is that applied under English common law. In general interest income received by resident individuals and corporate bodies from whatever source, local or foreign is taxable. In the case of non-residents, only income received in or remitted to Trinidad and Tobago is subject to tax.



110000

Interest paid on funds borrowed and used in the production of income is not deductible for tax purposes unless the resident is chargeable to tax in Trinidad and Tobago or is exempt under the Income Tax Act or other written law. Interest received by a resident individual on all classes of saving or other accounts with banks, financial institutions or other forms or deposit-taking institutions is subject to tax deducted at source at a rate of 5%. No further tax is payable thereafter. Exemption from tax is granted to individuals aged 60 years and over. Interest paid from Trinidad and Tobago sources to a non-resident is subject to withholding tax at a rate of 20%, unless a lower rate is applicable under double taxation agreement Where withholding tax taxes apply, such income is not charged to income and corporation taxes. Exemptions from tax available to residents in respect of interest income are as follows: 1) interest on bonds issued by the Industrial Development Corporation for the purpose

of financing a business restoration facility; 2) interest on bonds issued by the Development Finance Limited; 3) interest on bank accounts and bonds payable to resident individuals who have

attained the age of sixty years; 4) interest on TTDFC Industrial Bonds issued by the Trinidad and Tobago

Development Finance Co Ltd; 5) fifty percent of the interest earned by a financial institution on loans to an approved

small company; 6) fifty percent of the interest earned by a financial institution in respect of certain loans

to a who caries commercial farming.

Royalties Royalties in Trinidad and Tobago may be defined as “amo unts paid as a consideration for the use of or the right to use” intellectual property rights or mineral rights. Intellectual property includes “copyrights, works of artistic or scientific expression, patents, design, plans, secret processes or formulae, trade marks, motion picture films or tapes for radio or television broadcasting” or other similar properties; or, information concerning industrial, commercial or scientific knowledge experience or skill”. Mineral rights are those in relation to exploration and exploitation of natural resources and the operation of mines and quarries. Royalty income derived by a resident individual or corporate body is assessable to income or corporation tax, as the case may be. Royalties paid to non-resident individuals and companies are subject to withholding tax at the standard rate of 20% unless a lower rate is applicable under a double taxation relief treaty.

Management Charges

In the case of management charges paid to a non-resident company or person, the deductible amount is normally restricted to the amount of those charges or 1 percent of the paying company's total outgoings and expenses (excluding the management charges and tax wear and tear allowances), whichever is less. The withholding tax due on such


Guide To Investing In T

management charges must also have been paid to obtain any deduction.

There are no specific limitations on intercompany management charges when both companies are resident, although the Board of Inland Revenue has power to disregard what it considers to be artificial transactions.

Bad and Doubtful Debts

Bad debts actually written off and specific provisions against doubtful debts are deductible provided that the debts concerned arise from the company's trade. Subsequent recoveries are taxed as income in the year of receipt. Loans are not generally regarded as debts arising from a company's trade except in the case of financial institutions such as banks.

General provisions, as a percentage of accounts receivable or in any other form, are not deductible.

Tax-free Reserves

Reserves arising from the revaluation of fixed assets are tax free, as indicated earlier under Depreciation, but are not readily distributable. Otherwise, transfers to tax-free reserves are not generally permitted, with a few exceptions for particular industries such as the hotel industry. Repairs and Maintenance Provisions for expenditure on the maintenance of buildings, machinery, and equipment are not deductible. Such expenditure is deductible when incurred.

Employees' Remuneration There are no statutory limits on the amount of remuneration that may be paid to employees. Payments to an employees' profit-sharing plan approved by the Board of Inland Revenue are deductible. The Board may not approve such plans unless they meet a number of specific requirements. Employers' contributions to an approved pension fund for employees and the state social security scheme are deductible.

From January 1, 1997 Companies will be allowed a special employment allowance of 200% of wages actually paid to each additional worker employed at a rate not exceeding $4000 per month. From January 2001 companies will be allowed an apprenticeship allowance of 200% of the amount paid to an apprentice under an approved apprenticeship scheme. Arts / Culture / Sports / Media Generally companies will be allowed 150% of expenses incurred up to $450,000 in promoting arts, culture and sport or for the sponsorship of audio, visual or video productions.

LLeeggaall EExxppeennsseess

Legal expenses relating to operating matters, such as the recovery of debts and wage disputes, are fully deductible. Expenses relating to matters of a capital nature, such as company formation, issues of share capital, and transfers of real estate, are not tax

rinidad & Tobago 110011



110033

Charitable Donations Donations are deductible only if made under binding Deeds of Covenant. Qualifying donations are deductible in aggregate up to a limit equal to 15 percent of the company's annual income. Charitable covenants are not allowed from January 1, 1997 as a deduction for individual’s income tax.

Business Rents These are deductible.

Entertainment

Expenses for entertainment and business meals are 75 percent deductible. Transactions with Related Parties

When business transactions between a non-resident company and a resident company over which it exercises substantial control have been so arranged that the resident company earns no profit from the transactions concerned or less than it might normally be expected to earn, the Board of Inland Revenue may disregard the transaction and may tax the parties according to its best judgement. The tax is collected from the resident company as if it were an agent of the non-resident company.

The Board also has a general power to disregard any artificial or fictitious transactions that reduce the amount of tax payable by any person and to assess the parties involved accordingly.

Distributions

In general, distributions are never deductible in computing taxable income. Dividends payable or paid are the main example of distributions. Exceptionally, preference dividends paid on shares issued before 31 January 1966 are deductible. Other examples of distributions include interest paid on securities issued to a non-resident parent or fellow subsidiary company (subject to double taxation agreement provisions) and interest paid on securities at more than a reasonable commercial rate or at a rate varying according to the company's results. A parent company in this context is one owning directly or indirectly at least half of the paying company's share capital or voting power.

In the case of a close company (as defined earlier under Basic Principles), interest paid to a shareholder who is also a director is treated as a distribution unless he is a full-time executive director and his shareholding is 5 percent or less. Directors' remuneration in the form of fees is treated as a distribution to the extent it exceeds prescribed limits. Directors' remuneration, whether paid as fees or executive salary, is treated similarly if it exceeds an amount considered fair and reasonable by the Board of Inland Revenue.

1100 ..22 ..77 .. TTaaxx TTrreeaattmmeenntt ooff LLooss ss eess

For corporation tax purposes, a company's ordinary trading losses may be carried forward and set off against the first available future profits (excluding short-term capital gains), without time limit. Losses may not be carried back.

Special rules apply to short-term capital losses as explained earlier under Capital Gains.



110044

Unrelieved losses of one company may not be transferred to, and carried forward by, another company in the case of a corporate reorganization. There are rules, however, as in some countries, preventing a company from carrying forward its own losses after ownership of the majority of its shares changes hands, unless approved by the Board of Inland Revenue as not being for the purpose of avoiding tax.

1100 ..22 ..88 .. GGrroouuppss ooff CCoommppaanniieess

From January 1, 1997 a limited form of group relief has been introduced allowing 100% subsidiaries within a group to surrender losses to the parent or fellow subsidiary. However the company receiving group relief must still pay 75% of the taxes it would have paid without group relief.

For tax purposes, when fixed assets are transferred between affiliated companies, generally they will be deemed to be sold at their open market value if this differs from the actual sale price. However, in order to eliminate a potential balancing charge, a transfer between affiliated companies may be deemed to take place at the tax written-down value, provided the transferor and transferee company jointly elect for this treatment in writing to the Board of Inland Revenue. This election does not affect the computation of short-term capital gains.

1100 ..22 ..99 .. TTaaxxaattiioonn ooff BBrraanncchheess ooff FFoorreeiiggnn CCoommppaanniieess

The taxable profits of a branch of a foreign company in Trinidad and Tobago are computed in generally the same manner as those of a locally incorporated company. However, charges from a head office abroad to its branch for interest, royalties, and the like will not be deductible unless the charges are for payments actually made to third parties that can be related to the branch.

Some tax incentives, such as the tax holiday for approved enterprises under the Fiscal Incentives Act 1979, are available only to a locally incorporated company and not to a branch. The profits of a branch are automatically subject to withholding tax unless reinvested to the satisfaction of the Board of Inland Revenue, whereas those of a locally incorporated company are subject to withholding tax only if actually remitted abroad as dividends.

1100 ..22 ..1100 .. CCoorrppoorraattee TTaaxx RRaatteess

The standard rate of corporation tax is 30% percent. Certain companies engaged in the liquefaction of natural gas, manufacture of petrochemicals and petroleum marketing are chargeable to tax at 35%. The rate of tax is 55 % for oil companies for production and refining business (not marketing), comprising petroleum profits tax at 50% and unemployment levy at 5%.

Investment income derived by an insurance company from investments of the statutory fund required for long-term insurance business is subject to corporation tax at 15 percent. Profits transferred to the shareholders' account after an actuarial valuation are taxed at the standard rate.



110055

1100 ..22 ..1111 BBuuss iinneess ss LLeevvyy

The business levy is payable at the rate of 0.2% on gross sales or receipts for the calendar year of a company or business. The business levy is calculated quarterly on the actual sales of each quarter, any adjustment is taken up in the succeeding quarter. The following are exempt from the business levy:- (a) companies during the first three years following their commencement of

business; (b) companies or statutory corporations exempt from corporation tax under any Act;

(c) the gross sales or receipts of a company which give rise to profits exempt from

corporation tax under an Act;

(d) the Deposit Insurance Corporation, the Agricultural Development Bank, the Public Transport Service Corporation and public utilities under the jurisdiction of the Public Utilities Commission or exempted by order of the President;

(e) companies that are subject to tax under the Petroleum Taxes Act;

(f) the gross sales or receipts of a company whose gross sales or receipts in the

preceding year of income do not exceed the sum of two hundred thousand dollars, unless there are reasonable grounds to believe that the gross sales or receipts of the company in the particular year will exceed that sum.

A company is entitled to tax credit against its business levy liability for a year of income of any payment made in respect of its corporation tax liability for that year of income up to a maximum of its business levy liability. The effect of this provision is that in the majority of cases businesses will be exposed only to making payments of Corporation Tax. No deductions are allowed for business levy purposes in respect of prior year losses, or wear and tear allowances, the levy is, as stated above, calculated on the gross sales or receipts of a business. The business levy also applies to individuals where similar provisions apply in respect of Income Tax.

1100 ..22 ..1122 TThhee GGrreeeenn FFuunndd LLeevvyy

The Green Fund Levy is payable at the rate of 0.1% of the actual gross sales and receipts generated for the calendar year. It is calculated and must be remitted to the BIR on a quarterly basis. It applies to all companies including petroleum companies and to unincorporated associations and partnerships. There are no exclusions from the meaning of gross sales and receipts and there are no exemptions from this levy. Its scope appears to be much wider that the business levy as it includes all receipts including capital receipts.

The Green Fund Levy is not allowable as a deduction or tax credit.



110066

1100 ..22 ..1133 .. RReeoorrggaanniizzaattiioonnss

No provisions exist that permit assets to be transferred tax free between companies in the course of a corporate reorganization or losses to be transferred between the companies involved. Relief from stamp duty is available when not less than 90 percent of the issued share capital of one company is being acquired and the consideration is not less than 90 percent of the shares of the other company. Apart from companies listed on the Trinidad and Tobago Stock Exchange current law with one exception does not provide guidance on the subject of mergers and acquisitions. The Companies Act contains provisions facilitating amalgamation of companies. Dissenting shareholders have a right of recourse to the Court to protect their rights.

The listing agreement of the Trinidad and Tobago Stock Exchange provides those companies which are listed on the Exchange are bound by the terms of its Takeover and Merger Code. Under the Code, controlling interest is deemed a holding, or aggregate holdings, of shares carrying 30% or more of the voting rights of a company. Where an acquisition of shares in a listed company results in a person (corporate or individual), or a person together with others in concert, holding an aggregate of 30% or more of the voting rights, then such a person or persons have an obligation to extend an offer to purchase the remaining shareholding.

Offers made under this Code are conditional upon the offeror having received acceptances in respect of shares that, together with shares acquired or agreed to be acquired before or during the offer, will result in the offeror holding shares carrying in excess of 50% of the voting rights. An offer is unconditional where the offeror and the persons acting in concert with him together with him already hold in excess of 50% of the shareholding.

Where a “take-over” bid is accepted by 90% of the shareholding within four months of the offer, the offeror may, at any time within the following two months, acquire any of the shares not already held. A dissenting shareholder has the right to file an objection in the Court within one month of notification by the offeror of his intention to acquire his shareholding.

Any offer must be initially be open for at least 28 days after publication of the notice of offer, and if revised, must be kept open for at least 14 days from the date of notification of the revision to shareholders.

Under the Foreign Investment Act 1990, the total aggregate shareholding in a public company which may be held in by foreign investors is 30%. Any acquisition of the shares by a foreign investor, which will take such a shareholding over the 10% limit will first require the issue of a license to do so. A foreign investor who wishes to acquire shares in a private company or to incorporate a private company, shall prior to doing so supply the Minister of Finance with certain prescribed information which inter alia include the investors name, address and nationally and particulars of the consideration.

The Stock Exchange Take Over Code provides that the persons privy to confidential price-sensitive information concerning an offer or contemplated offer should not engage in dealings during the period when an offer is contemplated and prior to the announcement of the actual offer. Other than this restriction, parties are free to deal on the Stock Exchange subject to daily disclosure requirements.



110077

1100 ..22 ..1144 .. PPaayymmeenntt ooff ttaaxx

Corporation tax is payable quarterly in advance during each tax year based on the taxes payable for the previous year. Business Levy is payable on the gross sales or receipts of each quarter. The balance of tax due, if any, must be paid by 30 April of the year following the tax year, that is, by the same due date for filing the return. A company must ensure that at least the prior year plus 80% of any increase is settled by quarterly instalments to avoid interest.

Underpaid instalments and late payments are subject to interest at 20% per annum which is not tax deductible.

1100 ..33 .. WWiitthhhhoollddiinngg TTaaxxeess

1100 ..33 ..11 .. DDiivviiddeennddss

A final (definitive) withholding tax is levied on dividends paid to non-residents, whether individuals or companies. Generally the rate is 10-20%, but dividends paid to a company owning 50 percent or more of the voting power of the company paying the dividends are subject to withholding tax at 10%.

Under the CARICOM double taxation relief treaty, no withholding tax is levied on dividends paid to companies and individuals resident in specified Caribbean countries, subject to various conditions. Tax treaties also reduce or eliminate the withholding tax on dividends paid to non-residents.

Dividends paid to resident individuals by resident companies who have been subject to Corporation tax are exempt from income tax in the hands of the resident individual.

1100 ..33 ..22 .. BBrraanncchh PPrrooffii ttss

Branch profits are liable to both corporation and withholding taxes. Withholding tax is payable on the taxable profits of the branch whether or not remitted to the head office, a deduction being allowed in respect of corporation tax paid and any profits reinvested in additional fixed assets in Trinidad and Tobago. Branch profits remitted or deemed to be remitted to the head office are subject generally to corporation tax and 10% withholding tax at the prescribed rates. A branch in Trinidad and Tobago of a non-resident company mu st withhold tax at 10 percent from profits remitted or deemed to be remitted abroad unless a lower rate is prescribed by a tax treaty. All profits of a branch (after deducting corporation tax) are deemed to be remitted unless reinvested to the satisfaction of the Board of Inland Revenue otherwise than in the replacement of fixed assets.

1100 ..33 ..33 .. IInntteerreess tt

Interest paid to non-residents not carrying on a trade or business in Trinidad and Tobago is subject to a final withholding tax of 20 percent when paid to a company or when paid to an individual. Tax treaties usually reduce these rates. If interest is treated as a distribution of profits, as described earlier under Distributions, the withholding rates for dividends apply.



110088

There is no withholding tax on interest paid to resident companies. A 5% withholding tax is deducted by banks from interest to individuals who will then be exempt from further tax. The tax does not apply to persons who are aged 60 years or over.

1100 ..33 ..44 .. OOtthheerr PPaayymmeennttss

Several other types of payment made to non-residents not carrying on a trade or business in Trinidad and Tobago are subject to a withholding tax of between 10 percent – 20 percent when paid to a company or when paid to an individual. Tax treaties may reduce or eliminate the tax. The payments concerned include: ° Royalties. ° Management charges (including charges for the provision of personal

services and technical and managerial skills). ° Rentals for real estate and other property. ° Annuities.

° Premiums (other than those paid to insurance companies), commissions, fees and licences.

° Discounts ° And any other payments as may be prescribed No withholding tax is levied on such payments when they are made to residents.


Guide to Investing in Trinidad & Tobago 110099

Table 10.3.4.1 Withholding Tax Rates

Types of Payments/ Non Caricom Canada Denmark France Germany India Italy Norway Sweden Switzerland United USA Venezuela Distributions Treaty Kingdom

Effective Date of Entry 1994 1996 1969 1987 1976 1999 1971 1969 1984 1973 1983 1971 1997

Dividends 0% 10% 10% - Corporate recipient > 10% s/holding 10% 5% 10% 10% - Corporate recipient > 25% s/holding 10% 10% 10% 10% 10% 10% 5% - Other 15% 15% 20% 15% 20% 20% 20% 20% 20% 20% 10%

Interest 20% 15% 10% 15% 10% 10% 10% 15% 10% 10% 15% 15% - Recipient a Bank 10% 10% - Other 15% 15%

Royalties 20% 15% 10% 15% 10% 10% 10% 5% 15% 20% 10% 15% 10%

Management Fees/Charges 20% 15% 10% 5% 10% 5% 5% 12.5% 5% 10%

Technical Fees 10% 10%

Branch Profits 0% 5% 10% 10% 10% 8% 10% 10% 10% 10% 10% 5%

NOTE:-

These rates are intended to be used as a guideline ONLY. Reference should always be made to the specific provisions of the Treaty. It is advisable to consult with your professional advisors on any issue where withholding taxes may be applicable

WITHHOLDING TAX RATES



Notes 1 Taxable in country where contract executed, if no contract, taxable at withholding tax rate in paying

country 2 Various rules apply to salaries and other personal income items –see treaties for details 3 Where the treaty rate exceeds the domestic, (all other country), rate the domestic rate will apply 4 Special rules apply between public, (government owned), institutions 5 The above tabulation is for guidance only- reference MUST be made to the appropriate treaty. 6 The treaty reads “Where a company which is a resident of a Contracting State derives profits or

income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid out of the undistributed profits consist wholly or partly of profits or income arising in such other State.”

Notes To Schedule Of Withholding Tax Rates

I. Royalties paid to U.S. resident companies in respect of FILMS are subject to withholding tax at the rate of

10.032%. II. Certain pensions in respect of past services are not subject to withholding tax. III. Payments for independent personal services made to residents of certain countries are exempt from

withholding tax provided certain conditions are met - refer to Double Taxation Relief Orders for details. IV. Management charges paid to U.S. resident companies are not subject to withholding tax if the recipient

does not have a permanent place of business in Trinidad and Tobago - if the recipient has a permanent place of business, corporation tax would apply.

V. Rents for movable property paid to U.S. resident companies or individuals are not subject to withholding tax if the recipient does not have a permanent place of business in Trinidad and Tobago.

VI. The exemption from withholding tax does not apply to -

(a) any fixed preference divided in respect of preference shares issued by a Trinidad company prior to 31st January 1966; and

(b) dividends paid out of profits on which no income or corporation tax, as appropriate, has been suffered.

In these instances the withholding tax rate is 15%.

VII. CARICOM COUNTRIES:

CARICOM Treaty Ratified Barbados Jamaica Belize St. Lucia Grenada Dominica St. Kitts/Nevis St. Vincent & the Grenadines Antigua & Barbuda Guyana CARICOM Treaty not signed Montserrat Suriname

VIII. Withholding tax applicable to income derived form Puerto Rico Section 936 Fund Investments is reduced from 20% to 0.001% by Order dated 28th March, 1990. Legal Notice No. 64 of 1990.



1100 ..33 ..55 .. SS aallaarriieess aanndd WWaaggeess

Under the pay-as-you-earn (PAYE) scheme, all employers in Trinidad and Tobago must withhold tax from salaries and wages paid to their employees and pay the tax withheld to the Board of Inland Revenue. Tax is withheld in accordance with tax tables at the graduated rates shown under Personal Tax Rates. In the case of payments to residents, the tables take into account the personal allowances and deductions due to the employees concerned. Tax withheld under the PAYE scheme is set off against the employee's tax liability for the year in question, any excess being refunded.

1100 ..33 ..66 .. CCooll lleeccttiioonn ooff TTaaxx aanndd PPeennaall ttiieess

Withholding taxes on payments of dividends, interest, and the like must be paid to the Board of Inland Revenue within 30 days of the payments being made or credited. Tax withheld from salaries and wages under the PAYE scheme must be paid by the fifteenth day of the month following that in which the remuneration was paid. If withholding taxes and PAYE deductions are not paid by the due date, a penalty of 100 percent is levied, plus interest at 20 percent per year. From May 1, 2001, that is the expiration of the amnesty, the rate of penalty and interest has been increased to 100% and 20 % respectively. Neither the penalty nor the interest is a deductible expense in computing taxable income.

1100 ..44 .. DDoouubbllee TTaaxxaattiioonn RReell iieeff aanndd TTaaxx TTrreeaattiieess

1100 ..44 ..11 .. UUnnii llaatteerraall RReell iieeff

If a resident of Trinidad and Tobago derives income from a foreign country that has not concluded a tax treaty with Trinidad and Tobago and that income is subject to corporation tax or income tax in Trinidad and Tobago, a credit is granted for foreign income tax paid on the income against Trinidad and Tobago tax. The credit is limited to the lesser of the foreign tax paid on the income concerned or one-quarter of the Trinidad and Tobago tax attributable to the same income (one-half where the income is derived from prescribed British Commonwealth countries). Foreign income tax is deductible as an expense to the extent that it cannot be relieved by way of a credit. In the case of dividends, foreign tax levied on the profits out of which the dividends were paid (underlying tax) may be taken into account in computing the credit if the recipient is a locally resident company owning at least 50 percent of the shares of the paying company.

Credit relief is given for foreign income taxes levied at national level only and not for provincial or lower level taxes.



1100 ..44 ..22 .. TTaaxx TTrreeaattiieess

Trinidad and Tobago has concluded double tax treaties with Canada, France, Denmark, Germany, India, Italy, Norway, Sweden, Switzerland, the United Kingdom, the United States and Venezuela. It is also party to the 1994 CARICOM tax treaty. As well as containing provisions to alleviate double taxation, the treaties also provide for the exchange of information (excluding trade secrets) when this is necessary to implement the treaty or prevent fraud. Some treaties (notably the UK) will allow tax sparing so that companies with special exemptions (e.g. Under the Fiscal Incentives Act) are also spared tax in their country of residence.

1100 ..55 .. TTaaxx TTrreeaattmmeenntt OOff SS ppeeccii ffiicc IInndduuss ttrriieess

1100 ..55 ..11 .. PPeettrroolleeuumm OOppeerraattiioonnss

Petroleum operations are classified into three separate types of business for tax purposes, namely:

1. Exploration and production operations

2. Refining operations 3. Marketing operations

The first two types of business are subject to several petroleum profits taxes in place of corporation tax. The rate is 50 percent. Income subject to Petroleum Profits Tax is also subject to Unemployment Levy of 5%. Marketing however is subject to corporation tax at 35%. Profits for the purposes of Petroleum Profits Tax are generally computed in the same way as for corporation tax, but some additional deductions peculiar to the industry are allowed. These include royalties, the petroleum impost, which is a payment to support the Ministry of Finance's control of petroleum companies, and the contribution that these production operations make to marketing companies to subsidise the price of petroleum products sold to local consumers (the petroleum subsidy). A company carrying on more than one type of petroleum business may not set off losses incurred in one business against profits earned in another for the purposes of petroleum profits tax.

Exploration and production operations are subject to a supplemental petroleum tax (SPT) which is deductible in computing profits for the purposes of petroleum profits taxes. The rate of this supplemental tax is 15 percent for land operations and 55 percent for marine operations. It is levied on gross income after special deductions for intangible drilling costs and, in the case of marine operations, for tangible drilling costs also, as specifically defined.

As of 1 January 1988 the SPT was revised whereby "base oil" (defined as a company's average daily production for December 1987 annualis ed over 1987) and "additional oil" (the excess of a company's actual production over base oil) will attract different rates of tax. Base oil will be taxed at the old rates, but additional oil will be taxed at 5 percent on land and 20 percent on marine. Lease operators and farm-outs on land licensed by the Ministry of Energy will be eligible for the 5 percent SPT and other incentives granted to oil companies.



As of January 1, 1992 there was a further revision of SPT which provided a new sliding scale for rates of SPT based on oil prices above US$13 for marine and US$14 for land, based on the weighted average annual crude oil price.

Refining operations are subject to a refinery throughput tax that is currently levied at US$0.05 per barrel for full refining and US$0.02 for light refining. Refinery throughput tax is deductible in computing the profits of a refining business for the purpose of petroleum profits tax.

1100 ..55 ..22 .. TToouurriiss mm IInndduuss ttrryy

Enterprises involved in the tourism industry (as owners or operators) or the construction of dwelling houses may be entitled to tax holidays for varying periods, import duty concessions, and accelerated depreciation allowances during their taxable years.

Under the act a Hotel refers to a building or group of buildings including the curtilage therefore and all buildings within the curtilage, occupied together and used to provide the following services to guests for reward: the supplying of rooms, and of laundry; valet; restaurant services; facilities for meetings, conventions and sales promotion etc.

The provision of hotel accommodation services is zero-rated for VAT, however, a Hotel Accommodation Tax of 10% is charged on the full cost of letting the hotel accommodation and ancillary services. The normal rate of corporation tax applies.

1100 ..55 ..33 .. YYaacchhttiinngg SS eerrvviicceess

The profits are subject to tax in the same manner as described under corporation tax.

The provision of repairs and other services is zero-rated for VAT provided that the yachts and pleasure craft2 are owned by persons who are neither citizens nor residents of Trinidad and Tobago at the time when the repairs and services are performed. Services include port and harbour services, docking, mooring and conservancy.

1100 ..66 .. TTaaxxeess OOnn IInnddiivviidduuaallss

1100 ..66 ..11 .. BBaass iicc PPrriinncciipplleess

An individual who is ordinarily resident and domiciled in Trinidad and Tobago is liable to income tax on worldwide income (including short-term capital gains), whether or not remitted to the country. An individual who is ordinarily resident in Trinidad and Tobago but not domiciled in Trinidad and Tobago is liable to these taxes on income arising in Trinidad and Tobago and foreign income remitted in Trinidad and Tobago. It is important to note in this context that income from employment carried on in Trinidad and Tobago is always treated as income arising in Trinidad and Tobago, whether or not it is received in Trinidad and Tobago.

If an individual is merely a temporary resident, that is, present in Trinidad and Tobago for some temporary purpose only and for six months or less in the year, he will not be liable to tax on income arising abroad even if it is remitted to Trinidad and Tobago.

22



A non-resident individual is liable to tax only on income arising in Trinidad and Tobago and to other income remitted to in Trinidad and Tobago In many cases his tax liability will be settled by the final withholding taxes described earlier. A tax treaty may reduce or eliminate the liability to local income tax or withholding tax.

Neither ordinary residence nor domicile is defined in the tax legislation. However, most foreign nationals would not normally be considered as domiciled in Trinidad and Tobago.

A husband and wife are taxed as separate individuals on their own respective incomes.

1100 ..66 ..22 .. TTaaxxaabbllee IInnccoommee

An individual's taxable income is arrived at by aggregating his income from all sources, including short-term capital gains, and reducing the total by deductible expenses and personal allowances.

1100 ..66 ..33 .. EEmmppllooyymmeenntt IInnccoommee

All gains or profit derived from an employment exercised in Trinidad and Tobago are chargeable to income tax at the prescribed rates. Included therein are all emoluments (as defined) and the value of all benefits and facilities provided by the employer. When an employee receives a salary net of tax, the tax paid by the employer is also deemed a taxable benefit. Income Tax, referred to as PAYE, is deductible at source on a monthly basis and must be accounted for, to the Board of Inland Revenue by the employer. Employment income earned by non-residents an by employees who are temporarily resident in respect of employment exercised in Trinidad and Tobago is subject to income tax in the normal manner, regardless of where paid, but subject to provisions of any applicable double taxation treaty. Such income includes all benefits and allowances derived from the employment including the value of board and lodging provided by the employer. No tax is payable on income of such persons derived for foreign sources unless remitted to Trinidad and Tobago, In addition to basic salary, taxable income includes the benefits commonly provided to expatriates, such as housing allowances, tax reimbursements, cars, and other benefits in kind.

1100 ..66 ..44 .. DDiivviiddeennddss

Dividends received by Trinidad and Tobago resident individuals, from resident companies who have been subject to corporation tax, are exempt from further taxation in the hands of the resident individual. Dividends on preference shares issued before 31 January 1966 are treated as interest (allowed as a deduction to the company) and subject to 10% tax at source.

1100 ..66 ..55 .. CCaappii ttaall GGaaiinnss

Short-term capital gains, i.e. gains on assets disposed of within 12 months of acquisition, as defined earlier under Corporation Taxes, are taxable at the prescribed rate. Gains from the disposal of securities (including shares), automobiles, and household goods sold for



less than $5,000 are exempt. Short-term capital losses may be set off only against short-term capital gains. Other types of loss may not be set off against short-term capital gains. Other than short-term capital gains the Trinidad and Tobago Income Tax Act contains no provisions on the taxation of capital gains, which are not regarded as income for income tax purposes.

1100 ..66 ..66 .. LLooss ss RReell iieeff

A loss (other than a short-term capital loss), to the extent that it cannot be wholly set off against the taxpayer's other income (excluding short-term capital gains) in the same year of assessment, may be carried forward and set off against the income of subsequent years without time limit. Losses from agriculture, mining, trade or business cannot be offset against income from a profession or employment income. There is no loss carry-back.

1100 ..66 ..77 .. AAll lloowwaabbllee DDeedduuccttiioonnss

Travel Expenses

An employee may deduct only travelling expenses wholly, exclusively, and necessarily incurred in the course of his employment. An individual who carries on a trade, business, or profession may deduct expenses wholly and exclusively (though not necessarily) incurred for the purposes of that activity, as well as tax depreciation allowances.

Mortgage Interest/Tertiary Education and Pensions or Deferred Annuities

The most significant deductible expenses unrelated to the production of employment or business income are home loan interest up to $18,000 and pension payments up to $18,000 per taxpayer. The deduction for mortgage interest may also be allowed for tertiary education expenses at approved universities.

1100 ..66 ..88 .. PPeerrss oonnaall AAll lloowwaanncceess

Personal allowances are granted only to residents of Trinidad and Tobago and are not apportioned, that is, they are granted in full for whatever period of the year is assessable. These personal allowances are given as a deduction in computing taxable income, not as credit against tax payable as in some countries. The following allowances are available:

Alimony (if recipient is taxable thereon in Trinidad and Tobago)

100% of amount paid

Mortgage relief House purchase allowance

$18,000 $10,000 per annum for each of the first five years

Pension contributions to an approved scheme and $18,000 National insurance contribution (70% thereof) Aggregate Maximum Personal Allowance for persons 60 years and over $30,000

All other persons

$25,000



1100 ..66 ..99 .. PPeerrss oonnaall TTaaxx RRaatteess

The rates of income tax are as follows:-

Slice of Tax Rate of Tax Cumulative

on Taxable Income Applicable to Slice Upper Income Limit $ % $

0 - 50,000 25 12,500 50,001 - upwards 30

1100 ..66 ..1100 .. SS ppeecciiaall TTaaxx TTrreeaattmmeenntt ooff FFoorreeiiggnn NNaattiioonnaallss

No special tax reliefs are generally available to foreign nationals as such under local tax law. However, as indicated earlier, few foreign nationals are likely to be considered as domiciled in Trinidad and Tobago. As non-domiciled individuals, they are liable to Trinidad and Tobago tax on their foreign-source income only if it is remitted to Trinidad and Tobago.

1100 ..66 ..1111 .. TTaaxx PPaayymmeennttss ,, RReettuurrnnss aanndd AAppppeeaallss

From income year 2001individuals in receipt of emolument income only, need not file income tax returns. Rules regarding returns, assessments, appeals, and collection of tax are much the same as for companies. Tax is withheld from employees' pay under the PAYE scheme described earlier under Withholding Taxes, while self-employed persons must pay tax in advance in quarterly instalments. For all individuals, however, any balance of tax due must be paid by 30 April following the year of income.

1100 ..77 .. OOtthheerr TTaaxxeess

1100 ..77 ..11 .. CCuuss ttoommss aanndd EExxcciiss ee DDuuttiieess

Duties are levied at various rates on a wide range of imported items based on the CIF values. Customs and excise duties are a significant part of government revenues.

1100 ..77 ..22 .. SS oocciiaall SS eeccuurrii ttyy CCoonnttrriibbuuttiioonnss

Social security contributions, known in Trinidad and Tobago as national insurance contributions, are payable both by employers and employees. For employers the rates currently range from $5.86 to $45.36 per week, depending on the level of the employee's earnings. For employees the rates vary from $2.93 to $22.68 per week. In addition, employees, aged under 60 years, must pay a weekly health surcharge of $4.80 or $8.25, depending on the amount of their earnings. An employer pays a weekly contribution of $1, instead of the normal contributions, for an unpaid apprentice or any paid worker under 16 or over 65. This contribution covers employment injury benefit.

1100 ..77 ..33 .. VVaalluuee AAddddeedd TTaaxx ((VVAATT))

There is a Value Added Tax on all imports and supplies of goods and services at the rate of 15%.

There are certain goods and services which are 'zero-rated' including exports, basic food



items, major farm inputs, prescription drugs, selected over the counter drugs, books, oil and gas, hotel accommodation and yachting services.

There are certain goods and services that are 'exempted' including land and buildings, rental of residential property, bus and taxi services, medical, banking, insurance, stock and real estate brokerage.

Registration is required for any business with commercial supplies in excess of TT$200,000 per annum. The difference between output tax and input tax is payable (refundable) for monthly or bi-monthly tax periods. There are substantial penalties for late (or non) payment, and late (or non) filings.

1100 ..77 ..44 .. SS ttaammpp DDuuttyy oonn CCoonnvveeyyaannccee ooff RReeaall EEss ttaattee

(a) Residential Residential property conveyances bear stamp duty at the following rates:- $0 - $350,000 NIL Next $100,000 5% Next $100,000 7.5% Above $550,001 10%

(b) Non-Residential $0 - $300,000 2% on the whole consideration $300,001 - $400,000 5% on the whole consideration $400,001 + 7% on the whole consideration

1100 ..77 ..55 .. RReeaall EEss ttaattee TTaaxxeess

Real estate taxes (rates) are levied by local authorities on the assessed value of property located within their administrative areas. Undeveloped land is taxed at $20 per acre and buildings at 7 1/2% of the estimated rental value with a minimum of $48.00 (known as the Annual Rateable Value). There are also water and sewerage charges based on the assessed annual rateable value or meterage.

1100 ..77 ..66 .. RRooaadd TTrraaffffiicc LLiicceennccee aanndd VVeehhiiccllee TTrraannss ffeerr TTaaxx

From January 1, 1997 vehicles no longer have to be licensed annually. A transfer tax is applied to all motor vehicles that have been sold without VAT (i.e. by individuals or unregistered businesses) at rates dependent on the age of the vehicle.

1100 ..77 ..77 .. BBeettttiinngg ,, GGaammiinngg aanndd LLootttteerriieess

An annual licence fee of TT$100,000 is charged. In addition, a levy of $400,000, payable quarterly in advance is charged on betting shops. This levy is then deducted from betting taxes collected by the betting shops at 10% on all bets placed.



1100 ..77 ..88 .. IInnss uurraannccee PPrreemmiiuumm TTaaxx

A tax of 6% is levied on general insurance premiums applicable to risks covered in Trinidad and Tobago.

1100 ..77 ..99 .. HHootteell RRoooomm TTaaxx

A tax of 10% is charged on the value of Hotel accommodation.

XXII EExxppaattrriiaa ttee LLiivviinngg // CCuull ttuurree


XXII.. EEXXPPAATTRRIIAATTEE LLIIVVIINNGG,, CCUULLTTUURREE AANNDD TTOOUURRIISS MM

Most of the amenities to which expatriates are accustomed are easily available in Trinidad and Tobago.

1111 ..11 .. HHoouuss iinngg

Single-family houses are more common in Trinidad and Tobago than townhouses or apartment buildings; however, in recent times the real estate developers have tended to construct more apartment complexes and townhouses. These are being provided with full security guard services.

1111 ..22 .. MMeeddiiccaall FFaaccii ll ii ttiieess

Trinidad and Tobago has many well qualified and trained general practitioners and specialists in obstetrics and gynaecology, paediatrics, radiology, physiotherapy, cardiology, gastrology and urology, both in private practice, as well as attached to the various health care facilities around the country. Most common surgical procedures are performed in Trinidad. 24-hour emergency services are available at several of the medical facilities around the country. There is also 24 hour Emergency Air Ambulance available.

1111 ..33 .. SS cchhoooollss

1111 ..33 ..11 .. TThhee EEdduuccaattiioonnaall SS yyss tteemm

The educational system in Trinidad and Tobago is based on the British System. There are also schools in Trinidad offering international programmes.

The primary school system serves children from Standard or Prep 1 to 5 (generally from ages 5 to 11). At the end of the 5th year, the Secondary Entrance Assessment Examination is taken. The results in this examination determine which secondary school a child will attend.

There are various types of secondary schools in Trinidad and Tobago: 7 year; 5 year; Junior Secondary; Senior Secondary and Senior Comprehensive. The most common is the 7- year school.

At the end of the fifth year of secondary school, students may take the Caribbean Examinations Council (CXC) examinations in subjects of their choice, providing the school offers those subjects. Passes in five subjects is the minimum requirement, in most cases, to enter the work force. The Cambridge General Certificate of Education, Ordinary Level (G.C.E. O’Levels) examinations, which were the standard examinations taken in Trinidad and Tobago prior to the introduction of CXC, is still available in some subjects.

After 7 years, The Cambridge or London General Certificate of Education, Advanced Level (G.C.E. A’Levels) examinations may be taken, usually in 3 or 4 subjects. These exams are required to enter University and are well recognised internationally.



1111 ..33 ..22 .. AAcccceess ss ttoo SS cchhoooollss

In general, access to nursery, primary, Kindergarten and Montessori schools is not difficult since there are public schools with available space, and several good private schools. Access may require sitting an entrance examination.

At the secondary level, there are fewer private schools. Access to a public school requires passing the Secondary Entrance Assessment Examination, and is subject to available space in the school of first choice. If a place exists, approval has to be obtained from the Ministry of Education.

1111 ..33 ..33 .. IInntteerrnnaattiioonnaall SS cchhoooollss

Two international schools were open in Trinidad in 1994. Profiles are as follows: The International School Foundation:

The International School of Port of Spain (ISPS) was founded in 1994. It is a co-educational, non-profit corporation, governed by a seven member corporate and parent board. The ISPS is sponsored by EOG Resources, British Gas, BP Trinidad & Tobago LLC and the US Embassy. The school is accredited by The Southern Association of Colleges and Schools (USA) and registered by the Ministry of Education (T&T).

Curriculum:

The International School of Port of Spain offers an international education based upon a US curriculum model. The language used by the school is English and the academic program meets the needs of students from the age of 4 - 18. Staff specialists include a College Guidance Counsellor and Guidance Counsellors. Special curricular activities at the school include Advanced Placement course work, Foreign Language instruction, Art, Music, Drama, Swimming, Physical Education and Computer Instruction. Extra curricular activities include, Excursions/field trips, Model United Nations (MUN), Inter-Island sports exchanges, Soccer, Volleyball, Softball, Basketball, Community Service and Student Government.

The International School of Port of Spain offers PSAT, SAT, IOWA, COGAT and Advanced Placement Exams. The school’s library contains 12,000 volumes.

The school’s web site is: http://www.isps.edu.tt Location:

The school is now located on a relatively new, purpose build facility in Westmoorings. Facilities comprise air-conditioned and computer-networked buildings with 28 classrooms, 2 computer labs, 3 science labs, a library/media centre, gymnasium, grassed athletic fields and enclosed activity area.

http://www.isps.edu.tt



Maple Leaf International School

Maple Leaf International School is a co-educational private school of approximately 500 students located in Petit Valley, a western suburb of Port of Spain. Founded in 1994 by local parents, the school provides a first class alternative to the public school system. Maple Leaf International School offers programmes for children from the age of 4 years to University entrance level and serves the education needs of national as well as the international community. The school is accredited by the Ontario, Canada Ministry of Education and graduates receive the Ontario Secondary School Diploma (OSSD). The staff are all trained and experienced teachers with the majority holding qualifications in Ontario.

The curriculum foundations are set out by the Ministry of Education in Ontario and incorporate some of the best research on teaching and learning. The Ontario Curriculum establishes high, internationally competitive standards of education for elementary and secondary school students. The curriculum has been designed with the goal of ensuring that graduates from our school are well prepared to lead satisfying and productive lives as both citizens and individuals, and to compete successfully in a global economy and a rapidly changing world. Our graduates embark upon post-secondary programs in Canada, Great Britain, USA and the Caribbean.

For every program offered at the elementary and secondary level, the curriculum outlines clear and detailed curriculum expectations, that is, the particular knowledge and skills that students are expected to demonstrate by the end of each course. In addition, for every discipline, it provides detailed descriptions of achievements levels, which will assist teachers in the assessment and evaluation of students’ work. The standards curriculum promotes consistency in these practices in schools across Ontario and by extension at Maple Leaf International School. Our staff endeavour to deliver the highest quality of instruction and encourage all students to achieve their full potential in a caring, learning- centered environment.

The school facilities occupy two secure enclosed compounds that include fully air conditioned buildings incorporating 37 classrooms, including science and computer labs, libraries, art and mu sic rooms, cafeteria and a covered gymnasium.

1111 ..44 .. CCooss tt ooff LLiivviinngg

The inflation rate in Trinidad and Tobago was 4.1% at the end of 2002 and has remained under 11% over the last 10 years. The exchange rate has also remained fairly steady at approximately US$1.00 = TT$6.30 over the last two years. Prices of a sample of goods in Trinidad and Tobago follow.

Table 11.4.1 Sample of Prices in Trinidad and Tobago Items Prices in US dollars Item Prices in US dollars Chicken (whole) $2.40 per kg Rum(750ml) –local $9.65 Beef steak – imported $9.80 - $22.00 per kg Beer – local $1.09 Fresh fish steaks $6.00 - $8.75 per kg Scotch Whisky - Johnny

Walker Black $31.47

Eggs $1.39 per dozen Locally made cigarettes $1.42 Milk $1.10 per Lit re Imported cigarettes $1.90 Head of Lettuce $0.53 per unit Cars

-Honda Civic (1.7 F.I.) -Honda Accord (2.0 F.I.)

$27,777.78 $42,069.79

Tomatoes (prices vary depending on season)

$2.60 per kg.

Gasoline -Leaded -Unleaded

$0.39 per litre $0.45 per litre

Pineapple $1.98 - $2.46 per unit Rents for Expatriate



Items Prices in US dollars Item Prices in US dollars Housing -Furnished Executive Apts. -Furnished Houses

$1,500-$3,500 per month $2,500-$4,800 per month

Oranges (prices vary depending on season)

$0.12 - $0.16 per unit

Doctor’s Visit $20.00

Orange Juice $1.45 per litre Visit to Paediatrician $25.00 Red/ White Table Wine (750ml)

$12.50 - $20.75

Meals out with glass of wine $40.00 per person

Imported alcohol and cars are costly in Trinidad and Tobago mainly as a result of the duties and taxes imposed on these items. The airport in Trinidad permits both arriving and departing passengers to purchase alcohol and other luxury goods at duty free prices.

1111 ..55 .. IImmppoorrttiinngg aa CCaarr iinnttoo TTrriinniiddaadd aanndd TToobbaaggoo

Licence A new right hand drive car could be brought into Trinidad and Tobago without an import licence from the Ministry of Enterprise Development; Foreign Affairs and Tourism Importation of left hand drive cars is governed by the Customs Act.

Duties and taxes charged when importing a car into Trinidad and Tobago are as follows: New Passenger Cars

CC Rating Import Duty Motor Vehicle Tax -

CC TT$ 0-1599 25% of CIF NO TAX 1600-1799 35% of CIF $4.00 1800-1999 35% of CIF $8.00 2000-2499 40% of CIF $21.00 2500-2999 40% of CIF $25.00 3000-3499 45% of CIF $30.00 Over 3499 45% of CIF $45.00

Reduction in Motor Vehicle Taxes for Used Vehicles (Imported Assembled), Legislation Not Yet Passed

Age of Vehicle Reduction in Motor Vehicle Tax Payable for Used Vehicles

> = 1 Yr. & < 2 Yrs. 10% > = 2 Yrs. & < 3 Yrs. 25% > = 3 Yrs. & < 4 Yrs. 50% > = 4 Yrs. & 5 Yrs. 75%

Note: Foreign used vehicles are subject to the same motor vehicle tax structure as new vehicles, but with reductions in the relevant tax being applied according to the age of the vehicle.



Registration Fee for Locally Assembled Foreign Used Vehicles

CC Rating Fee TT$ 1600-1999 30,000.00 2000-2499 50,000.00 2500-2999 70,000.00 <3000 90,000.00

Note: Fee payable for locally assembled foreign used vehicles is the greater of registration fee or the applicable motor vehicle tax. Tax Structure for New Goods Vehicles

Import Duty Motor Vehicle Tax

10% of CIF TT$2.50 per CC

Licensing Office

• The vehicle must also be registered by the Licensing Office:

Upon clearance from Customs and the Board of Inland Revenue, an application can be made to have the vehicle registered. Prior to registration, there is no authorisation to drive the vehicle on the road unless the Licensing office has issued a letter granting permission to do so temporarily. To register, the registration form is completed and the vehicle is weighed and reviewed for road worthiness and conformity to the Motor Vehicle and Road Traffic Act. There is a fee for weighing of TT$20.00 (approximately US$3.20) and a fee for registration of TT$50.00 (approximately US$8.00). A registration number is then issued, the licence plate made and installed, motor vehicle insurance obtained and the vehicle reviewed again by the licensing office.

1111 ..66 .. OObbttaaiinniinngg aa DDrriivveerr’’ss PPeerrmmiitt

In Trinidad and Tobago, driving is on the left hand side of the road and almost all vehicles are right hand drive. Under the Motor Vehicle and Road Traffic Act, Chapter 48:50, holders of an international driving permit may drive without a local permit, up to the expiration date of the international permit. In addition, holders of a valid driving permit issued in a number of countries, who are signatories to the Geneva Convention (there are about 100 countries listed) are exempted for a period of three months, from the requirement to hold a driving permit issued under the Act. The three month period commences on the date of arrival in Trinidad and Tobago. To obtain a permit, a written examination on the driving regulations and a practical examination may be required. If the individual applies for the permit and does the regulations test before the three month period is up, he or she will be exempt from doing the practical test. If the individual applies after the three month period, he or she will be required to do both the written and practical tests. The cost of the written and practical tests is TT$100.00 (approximately US$16.00) each. The fee for the practical test may be waivered if successful with the regulations examination. If either the written or practical test is repeated, $100 is applied in each case. The cost to obtain the certificate of competence is TT$20.00 (approximately US$3.20) and the driver’s permit, which is valid for 3 years, TT$200.00 (approximately US$32.00)



1111 ..77 .. AAnniimmaall QQuuaarraannttiinnee

Dogs and Cats brought into Trinidad and Tobago have to be quarantined for a period of up to 6 months. The purpose of the law is to ensure that the country is kept free from rabies. There are, however, certain exceptions. Trinidad and Tobago releases from quarantine, dogs and cats coming from rabies free countries. These are: § Anguilla § Antigua § Australia § Barbados § Great Britain § Jamaica § New Zealand § Northern Ireland § Republic of Ireland § St. Kitts Nevis § St. Lucia

Health Certificate In order to bring pets from any country, the law requires that the dog or cat be accompanied by a health certificate stating that the animal is in good health, and free from infectious diseases and that there has been no rabies in that country over the last 6 months prior to exportation. The health certificate must be issued by a government veterinarian of the country from which the dog or cat will arrive. Import Permit An import permit is also required from the Animal Production and Health division of the Ministry of Agriculture, Land and Marine Resources in Trinidad and Tobago, prior to the arrival of the pet in Trinidad and Tobago. This is necessary to ensure accommodation in the Quarantine compound.

1111 ..88 .. TToouurriiss mm aanndd LLeeiiss uurree

Apart from the many cultural events held in Trinidad all during the year, there is so much to see and do in Trinidad and Tobago. Eco-Tourism Trinidad has a host of Eco-sites that are easily accessed, such as the world renowned Asa Wright Nature Centre for bird watchers and naturalists; the Wild Fowl Trust in Pointe-à-Pierre; the Caroni Swamp and Bird Sanctuary, home of the country’s national bird, the Scarlet Ibis; and beaches where the endangered leatherback turtles return every year (from March to September) to lay their eggs. There are also a number of hiking clubs that venture through the Rain Forest to the many areas that are not so easily accessed by others. Tobago boasts some of the finest coral reefs (which can be viewed from glass-bottomed boats), such as the Buccoo Reef, and the most serene waters for the scuba diving enthusiasts. Sporting Facilities



Trinidad has excellent facilities for yachting, boating, golfing, cricket, horse racing, tennis, track and field, cycling, fitness and aerobics, weight training and football (soccer). Beaches Tobago has several white-sand beaches within walking distance from most hotels. In Trinidad, there is Maracas Bay, Las Cuevas and other beaches along the North coast that are within 25 minutes of Port of Spain.

1111 ..99 .. CCuull ttuurraall EEvveennttss

The country celebrates many religious and national cultural events throughout the year. The steelband, calypso music, tassa drums, parang and folk music are all sounds associated with the rich culture of Trinidad and Tobago including Theater workshops and Plays. Major cultural events include:

• Carnival in February or March, • Phagwa, a Hindu festival, • Hosay, a Muslim festival, • Tobago’s Heritage Festival in July, • Divali, the Hindu festival of Lights, where many homes and streets are

decorated with twinkling deyas (small clay pots). This is celebrated on “the darkest night of the month of Kartik” (around October or November).

Carnival Carnival is the biggest of Trinidad and Tobago’s many festivals. It ranks with New Orleans’ Mardi Gras and Brazil’s Carnival in terms of popularity. The Calypso Monarch competitions, Calypso Tents, Talk Tents, the Steelband competition (Panorama), Kiddies’ Carnival, Parades of Kings and Queens of Carnival, Dimanche Gras, J’Ouvert, Parades of Bands are some of the many events associated with Carnival. These events take place between Christmas and Ash Wednesday. Trinidad and Tobago’s has often been touted as the greatest show on earth. Other Events Apart from the many indigenous cultural events, Trinidad hosts a number of cultural events all year round that appeal to those who appreciate the classics. These include the Music Festival, the World Steelband Music Festival, Pan Jazz Festival, ballet and theatre of international quality.

1111 ..1100 .. TTrraannss ppoorrtt

Local transport is shared by route taxis, private taxis and public bus service that runs on main routes.



1111 ..1111 .. CCoommmmeerrcciiaall PPrraaccttiicceess ,, CCuull ttuurraall NNoorrmmss aanndd SS aaffeettyy TTiippss

1111 ..1111 ..11 .. BBuuss iinneess ss HHoouurrss

Government office hours are generally from 8.00 a.m. to 4.15 p.m. from Monday to Friday. Commercial business hours are from 8.00 a.m. to 4.30 p.m. from Monday to Friday. Shopping Malls are generally open until 7.00 p.m. Monday to Saturday. Banks are opened Monday to Friday.

1111 ..1111 ..22 .. BBuuss iinneess ss AAttttiirree

Businessmen and women doing business in Trinidad and Tobago should be aware that despite the warm climate and the fact that the country is part of the Caribbean, business attire here is conventional business wear. Furthermore, business offices are generally air-conditioned.

Men

For office wear, long or short-sleeved shirts, worn with ties, are the norm. Jackets are used on more formal occasions.

Women

Conventional business suits, or skirts and blouses, are the norm for office wear.

Outside of business

Light-weight formal and casual clothing.

1111 ..1111 ..33 .. WWaallkk iinngg

There are various places in Trinidad and Tobago for walking. Precautions should be taken when walking at night. It is always best to walk in groups.

1111 ..1111 ..44 .. SS iigghhttss eeeeiinngg

Exploring remo te and secluded areas of the country (of which there are many) should be done in groups, and with persons familiar with the country and the environment such as professional Tour Guides. Trinidad and Tobago Tour Guide Association

111 Cascade Road St Anns, Port of Spain

1 868 623 5559

XXIIII UUtt ii ll ii ttyy RRaatteess aanndd CCaappaaccii ttyy


XXIIII.. UUTTIILLIITTYY RRAATTEESS AANNDD RRAAWW MMAATTEERRIIAALL CCAAPPAACCIITTYY

1122 ..11 .. EElleeccttrriiccii ttyy RRaatteess

Table 12.1.1. Electricity Rates

Domestic Commercial Industrial

D1 Industrial

D2 Industrial

D3

Industrial Very Large

Energy Charge TT$0.15 per kwh for all kilowatt-hours. Customer Charge TT$2.00 per month. Minimum Bill TT$5.00 per month or part thereof.

Energy Charge TT$0.165 per kwh for all kilowatt-hours. Customer Charge TT$10.00 per month. Minimum Bill TT$29.00 per month or part thereof.

Demand Charge TT$21.75 per KVA * Energy Charge TT$0.1675 per kwh for all kilowatt-hours Reserve Capacity Charge




Source: Public Utilities Commission of Trinidad and Tobago * of Maximum Demand in a month

1122 ..22 .. WWaatteerr RRaatteess

Table 12.2.1. Water Rates

Type of

Consumer Rates

Domestic Unmetered Based on the Annual Taxable Value (ATV) of the Property and charged per quarter as follows: TT$0. - TT$500 - 95% of ATV, min. TT$108; TT$501 – TT$1000 - 81% of ATV, min. TT$118; TT$1001 – TT$2000 - 54% of ATV, min. TT$203; Over TT$2000 - 47% of ATV, min. TT$270, max. TT$304

Metered Up to 150 cubic meters -TT$1.75 per cubic meter Above 150 cubic meters -TT$3.50 per cubic meter Minimum Bill: -TT$30 per quarter

Industrial Unmetered TT$474 per month

Metered TT$3.50 per cubic meter per month; Minimum Bill: TT$35 per month



Commercial Unmetered

TT$474 per month

Metered TT$3.50 per cubic meter per month; Minimum Bill: TT$35 per month

Agricultural Unmetered 15% of ATV/month; Minimum Bill: TT$105 per month

Metered

TT$2.25 per cubic meter per month; Minimum Bill: TT$20 per month

Source: Public Utilities Commission of Trinidad and Tobago

1122 ..33 .. NNaattuurraall GGaass PPrriicceess

Table 12.3.1. Natural Gas Prices

Type of Consumer

Rates

Small Commercial Users US$ 2.20 per million BTU

Large Commercial and Industrial Users Negotiable depending on quantities required

1122 ..44 .. RRaaww MMaatteerriiaall RReess oouurrcceess

Table 12.4.1. Raw Material Resources

Raw Material Details Quantity

Petroleum Production (1999/2000) 43.6 million barrels

Crude Reserves as at 1.1.99

Proven Probable Possible

605 million barrels 109.8 million barrels (additional) 1,600 million barrels (additional)

Natural Gas: Production (2002) 1843MMcfd Natural Gas Usage (2001) 422.83MMcfd Natural Gas Reserves Proven 20.35 BCF Probable 4.69 BCF Possible 3.47 BCF

Ammonia Annual Production 3.20 million tonnes

Urea Annual Production

565,130 tonnes

Methanol Annual Production 2.12 million tonnes



Raw Material Details Quantity

Iron & Steel Production of direct Reduced Iron ()

1.5 million tonnes

Production of Steel Billets () 734,775 tonnes Production of Wire Rods () 654,288 tonnes Asphalt

Annual Production () 18,700 tonnes

Reserves 10 million tonnes

Cocoa Annual Production (2002) Average Production, 1994-1998

1.27 million kilograms 1.7 5 million kilograms

Coffee Annual Production (1998) Average Production, 1994-1998

367,300 kilograms 733,000 kilograms

Sugar Cane Annual Production of Raw Sugar (1998) Average Production of Raw Sugar, 1994-1998

64.6 thousand tonnes 99.1 thousand tonnes

Forestry Natural Forest Cover 248,000 ha (48.4 total land area) Source: Energy Planning Division, Ministry of Energy and Energy Industries and Central Statistical Office

1122 ..55 .. TTeelleepphhoonnee aanndd TTeelleeccoommmmuunniiccaattiioonn SS eerrvviicceess

Telecommunication Services Company of Trinidad and Tobago Limited (TSTT), which is partly owned by Cable and Wireless of the U.K., and partly owned by the Government of Trinidad and Tobago, is the domestic monopoly provider of the public switched local and international telecommunications services in Trinidad and Tobago. TSTT has fully digital network infrastructure. Its transport network is based on a fibre optic backbone supported by microwave radio systems. The company currently has a capacity of 419,991 fixed lines and working lines of 315,105 at February 2003. The Company offers a wide range of services, ranging from basic voice mobile service and internet access. At present, the following services are offered: § Asynchronous Transfer Mode (ATM) § Audio-Text Services § Audio-Conferencing § Autoquote § Axis-Advanced P Services § Call Control Services § Call Master Services § Centrex § Data Leased Lines § DID § Direct Exchange Lines § E-Bar

§ International Credit Card Authorization § Integrated Services Digital Network

(ISDN) § Maritime Services § Message Detail Recording § Microwave § Mobile Services (Prepaid. Postpaid and

Global System for Mobile (GSM) § Pay Station § Routing / Routers § Talk n Save § Telegraph Services



§ Foreign Exchange Lines § Frame Relay § Hot Line § Internet § Wireless Local Loop § Volume Incentive Plan (VIP)

§ Telex § Tie Circuits § Traveller Services § Off Premises Extension Special Events § 800 Services § 10-10-335

The international access and country area code for Trinidad and Tobago is 1-868. Rates Telephone day rates (8.00 a.m. - 5.00 p.m.) within Trinidad and Tobago, range from approximately TT$0.08 per minute to TT$0.69 per minute, with a minimum charge of TT$0.23 per call. Telephone night rates (5.00 p.m. - 8.00 a.m.) within Trinidad and Tobago, range from approximately TT$0.08 per minute to TT$0.23 per minute, with a minimum charge of TT$0.23 per call.

Table 12.5.1.

Overseas Rates per Minute (in $TT) for Direct Dialling City/

Province/Country Day Rate

Night Saver Rate

City /Province/Country

Day Rate

Night Saver Rate

Australia 6.85 5.80 Japan 10.0 8.50 Brazil 10.00 8.50 London 4.50 3.99 Caracas 2.75 2.30 Miami 4.50 3.99 Chile 10.00 8.50 New York 4.50 3.99 Colombia 6.00 4.95 Ontario 4.50 3.99 France 6.00 4.95 South Africa 6.85 5.80 Germany 6.55 5.50 Spain 6.85 5.80 Hong Kong 6.85 5.80 Switzerland 6.55 5.50 Italy 6.55 5.50 Washington 4.50 3.99

1122 ..66 IInntteerrnneett AAcccceess ss

Access to the Internet is available through Internet Service Providers (ISP) which include:

TSTT - tstt.net.tt WOW - wow.net OPUS - opus-networx.com.

CARIB-LINK - carib-link.net

1122 ..77 .. SS aatteell ll ii ttee CCoommmmuunniiccaattiioonnss

VSAT (Very Small Aperture Terminals) are currently being used for the transfer of data via satellite by some companies in Trinidad and Tobago. These include banks and some of the large multi-nationals.



1122 ..88 .. PPooss ttaall SS eerrvviicceess

The Trinidad and Tobago Postal Corporation (TTPost), which has been in operation since July 1, 1999, is managed by New Zealand Post International Limited (NZPIL) via a five year management contract, TTPost remains one hundred percent owned by the Government of Trinidad and Tobago. It is a state corporation but under NZPIL’s management, and is being operated as a business with targets and objectives spelt out in a Delegated Management Agreement (DMA). Express mail services and courier services are available in Trinidad and Tobago. In the case of the latter, these services are provided through the international courier companies, such as DHL, Federal Express and UPS. In addition, BWIA and Specialised Airline Services (SAS), also offer delivery services from and to the airports to which they have flights.

AAPPPPEENNDDIICCEESS



ADVERTISING AGENCIES ASSOCIATION OF TRINIDAD AND TOBAGO C/o Ian Collier 13 Rust Street St Clair 1 868 622 5865 www.cmbcreative.com LAW ASSOCIATION OF TRINIDAD AND TOBAGO Suite 4 Chancery Courtyard 13-15 St Vincent Street 1 868 625 9350

ARCHITECTURAL ASSOCIATION OF TRINIDAD AND TOBAGO PO Box 585 PoS 1 868 623 4161 [email protected] ASSOCIATION OF REAL ESTATE AGENTS (AREA) 76 Picton Street Newtown 1 868 628 9048 INTERNATIONAL SCHOOLS FOR FOREIGNERS

Name Address Phone-No.

International School of Port of Spain

1 International Drive, Westmoorings 1-868-632-4591

Maple Leaf International Alyce Heights Drive, Alyce Glen, Petit Valley 1-868-632-9578/633-3173



US FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO

Country Company/Local Representative US Company United States 3M Interamerica Inc. 3M Interamerica Inc.

Alcoa Steamship Company Inc. Alcoa Steamship Company Inc. American Airlines Inc. American Airlines Inc. American Express American Express American Life & General Insurance Company

(Trinidad & Tobago) Ltd. (ALGICO) A Member Company of American International Group (AIG)

American Web Ventures Network Caribbean Limited

Amerijet International Inc Atlantic LNG Company of Trinidad and Tobago Cabot Trinidad LNG Corporation BHP Petroleum (Trinidad) Inc. BHP Petroleum (Americas) Inc. Baker Hughes International Branches Inc.

Baker Oil Tools Division Baker Hughes International

Baroid Trinidad Services Ltd Baroid Drilling Fluids Inc Bethel International Inc Atlantic LNG Brik Hillman Consultants Inc Bristol-Myers Squibb (W.I.) Ltd. Bristol-Myers Squibb Co Carlisle Tire & Rubber (Free Zone) Ltd. Carlisle Tire & Rubber Co Chevron Texaco Trinidad Inc. Chevron Texaco Corp. Citibank (Trinidad & Tobago) Ltd. Citibank N.A. Coca-Cola Caribbean Bottlers Coca Cola Colgate Palmolive (Caribbean) Inc. Colgate Palmolive Company Crown, Cork and Seal (W.I.) Ltd. Crown, Cork and Seal Co. Inc. DHL Worldwide Express DHL Worldwide Express Environmental Resources Management Ernst & Young EOG Resources Trinidad Ltd. Exxon Exploration & Production Trinidad Ltd. Point Lisas Nitrogen Ltd. Mississipi Chemical Corporation Ltd. And

Koch Nitrogen Co. Federal Express Federal Express Fugro Trinidad Ltd. - Glenn International Inc. - Halliburton Trinidad Ltd. Halliburton Services International InnCOGEN IBM World Trade Corporation IBM World Trade Corporation - Descalott Construction Limited Ionics Construction Limited Johnson & Johnson (Trinidad) Ltd. Johnson & Johnson International Kellog Pan American Corp.



US FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO (CONTINUED)

Country Company/Local Representative US Company United States

KFC/Pizza Hut Prestige Holdings

Land Coast Insulation, Inc. Louis Harris (Caribbean) Ltd. McCann-Erickson (Trinidad) Ltd. McCann-Erickson Worldwide Medical Air Services Association Medical Air Services Association Microsoft Trinidad and Tobago (The) Myerson Company Ltd. Austenol Incorporates Nabisco Royal Incorporated Nabisco International, Inc. Payless Shoe Source Payless Shoe Source Phoenix Park Gas Processors Ltd. Conoco Inc. and Pan West Constructors Ltd. Power Generation Company of Trinidad and

Tobago Ltd. Southern Electric International

PriceSmart Schlumberger Trinidad Inc. Schlumberger International Corporation

Singer Sewing Machine Company Singer Sewing Machine Company Smithkline Beecham (Caribbean) Ltd. Smithkline Beecham International Subway Subway (Caribbean) Group Inc. Trincast Ltd.

Trinidad Valve & Fitting Co. Ltd. (Trinvalco) AMPCO Metal

Titan Methanol Saturn Methanol/AMOCO/Beacon Energy Fund

Tidewater Marine West Indies Ltd. Tidewater Marine International

TNT Express Worldwide TNT Express Worldwide Universal Package Systems Ltd United Parcel Services

US FIRMS WITH FRANCHAISES IN TRINIDAD AND TOBAGO

TGI Friday’s Ruby Tuesdays Tony Roma’s



CANADIAN FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO

Country Company/Local Representative Canadian Firm Canadian Canadian Companies with Joint Ventures and

Partnerships in Trinidad and Tobago

Alstons Building Enterprises Ltd. (ABEL) Fulton Windows Bhagwansingh’s Hardware Industries (Cantrex

Ltd) Comcraft Canada ltd.

Errol Clarke Associates Ltd. Cumming Cockburn Limited Hand Arnold Industries Avmor Ltd

H.J. Heinz of Canada Mora Oil Ventures (Moraven) Delmar Energy Northern Basin Consortium Conwest Exploration (International Ltd. Planning Associates Ltd. Stanley Technology Group PCS Nitrogen Trinidad Limited Potash Corporation of Saskatchewan Inc Royal Bank Institute of Business and

Technology Applied Courseware Technology Inc.

Cableview Inter-Comm Holdings (Trinidad ) Ltd S.M. Jaleel & Co. Ltd. Breuvages Cott Inc. Caribbean Methanol Co Ltd Methanex Corporation Talisman Energy Inc BHP Billiton Petroleum TYE Manufacturing Co. Ltd. (Bel T’dad) Produits Bel Inc. National Energy Skills Centre (NESC) Southern Alberta Institute of Technology

(SAIT) Waste Disposal Ltd. (Waste Plastics Ltd.) Kofman Plastics International Trading of

Canada

Canadian Companies With Local Investments In Trinidad And Tobago

Air Canada Air Canada Scotiabank Trinidad and Tobago Limited Bank of Nova Scotia Caribbean Packaging Industries Ltd. Canadian Overseas Packaging Industries Ltd. Crown Cork & Seal (W.I.) Ltd. Crown Cork & Seal Canada Inc. Mayfair Knitting Mills (T’dad) Ltd. Modefair Industries Ltd.



BRITISH FIRMS WITH INTEREST IN TRINIDAD AND TOBAGO

British Firm Local Firm Alpha Airport Holdings (UK) Ltd. KaterServ Airport Services Ltd resentative Atlantic LNG Atlantic LNG Company of

Trinidad and Tobago Bacon & Woodrow Bacon, Woodrow & De Souza Lewis Berger Overseas Holdings Berger Paints Trinidad Ltd. Bristow Group Limited Bristow Caribbean Ltd. British Gas PLC British Gas Trinidad and Tobago Ltd. CAB International CAB International Institute of Biological Control D. Essex Freight Forwarding Ltd. Caribbean Express Line (T’dad ‘96) Ltd. Tate & Lyle PLC Caribbean Bulk Storage & Trading Company Carillion PLC Carillion (Caribbean) Ltd. Courts Furnishers PLC Courts (Trinidad) Ltd. RGIT Montrose Ltd RGIT Montrose (Trinidad) Ltd GlaxoSmithKline PLC GlaxoSmithKline PLC Venture Production Co Ltd Venture Production Co (Trinidad) Ltd International Computers Limited Fujitsu Transaction Solutions (Trinidad) Limited Gordon Grant Investment Ltd. UK Gordon Grant Investment Ltd. Guinness Exports Limited Guinness (Caribbean) Limited Hilton International Hilton Trinidad & Conference Centre Insertech Group PLC Insertech (Caribbean) Ltd. Unilever PLC Lever Brothers (W.I.) Ltd. Lexicon Trinidad Limited Lipton Tea Company Ltd. Lipton (Trinidad) Ltd. Lloyds Register of Shipping Lloyds Register of Shipping EMP Limited Evolve Management Partners (Trinidad) Limited Readymix (West Indies) Ltd. Rentokil Limited. Rentokil Initial (Trinidad) Limited

Securicor Group PLC Securicor Trinidad Ltd. Shell Overseas Holdings Shell Trinidad Ltd. Cable & Wireless PLC Telecommunications Services of T’dad & Tobago Marketing & Reservations International Ltd.

Rex Turtle Beach Hotel

ASCo Group Limited ASCo Trinidad Limited HSS Hire Service Group PLC HSS Rental Stores BAT Industries PLC West Indian Tobacco Co. Ltd. BP BPTT



FOREIGN MISSIONS IN TRINIDAD

Name Honorary Consul Address Phone-No.

AUSTRIA Honorary Consul 13 Woodlands Road, Valsayn Park (North) 1-868-662-2961

BARBADOS Honorary Consul 12 Mayfair Gardens, Santa Cruz 1-868-638-8431

BANGLADESH People’s Republic of Bangladesh Consulate

1 Shafik Dr, C/Crossing San Fernando 1-868-652-2637 33 Wahid Cir Dr, Sumadh Gardens San Fernando 1- 868-653-5534

BELGIUM Honorary Consul 26 Lisa Avenue, Hillsboro, Maraval 1-868-628-2951

BRAZIL Embassy of The Federative Republic of Brazil

18 Sweet Briar Road, St. Clair 1-868-622-5779/5771

CANADA High Commission for Canada

Maple House, 3-3A Sweet Briar Road, Port of Spain 1-868-622-6232

CHILE Honorary Consul Lennox Petroleum Services, 1st Avenue South Western Main Road, Chaguaramas 1-868-634-4500

CHINA Embassy of the People’s Republic of China

39 Alexandra Street, St. Clair 1-868-622-6976

COLOMBIA Embassy of The Republic of Colombia

16 Queen’s Park West, Port of Spain 1-868-622-5938

COSTA RICA Vice Consul 16 Queen’s Park West, Woodford Street, 3rd Floor, Port of Spain 1-868-628-0653

CUBA Embassy Of The Republic Of Cuba

96 Morne Coco Road, West Moorings 1-868-632-6505

DENMARK Honorary Consul 20 Tragarete Road, Port of Spain 1-868-625-1156

DOMINICAN REPUBLIC

Honorary Consul 5 Norman Terrace, Mt. Anne Drive, Second Avenue, Cascade, Port of Spain 1-868-624-3667



FOREIGN MISSIONS IN TRINIDAD (CONTINUED) Name Address

Phone-No. EL SALVADOR Honorary Consul 1A Brieves Road, Maraval

1-868-622-9162

FINLAND Honorary Consul 14 Herbert Street, St. Clair 1-868-622-1061

FRANCE Embassy of the French

Republic 6th Floor Tatil Building, 11 Maraval Road, Port of Spain 1-868-622-7446/7

GERMANY Embassy of The Federal Republic of Germany

7-9 Marli Street, Newtown, Port of Spain 1-868-628-1630-2

GUYANA Guyana Republic Consulate Colsort Mall, 4th Floor, 11-13 Frederick Street, Port of Spain 1-868-627-1692

HOLY SEE Apostolic Nunciature 11 Mary Street, St. Clair

1-868-622-5009

INDIA High Commission for the Republic of India

6 Victoria Avenue, Port of Spain 1-868-627-7480/7481/4027

INDONESIA Honorary Consul Churchill Roosevelt Highway & Boundary Road, El Socorro 1-868-674-2909/3677

ITALY Honorary Consul 47D Rockdale Road, Diego Martin 1-868-637-3275

JAMAICA High Commission for Jamaica 2 Newbold Street, St. Clair 1-868-622-4995

JAPAN Embassy of Japan 5 Hayes Street, St. Clair 1-868-628-5991

KOREA Embassy of the Republic of Korea

Albion Court, 61 Dundonald Street, Port of Spain 1-868-627-6791

LEBANON Honorary Consulate 32 Charlotte Street, Port of Spain 1-868-627-6566

MEXICO Embassy of The United Mexican States

Algico Plaza, 4th Floor, 91-93 St. Vincent Street, Port of Spain 1-868-627-6988,6941

NETHERLANDS Embassy of the Kingdom of the Netherlands

3rd Floor, Life of Barbados Bldg, 69-71 Edward Street, Port of Spain 1-868-625-1210/1722



FOREIGN MISSIONS IN TRINIDAD, continued Name Address

Phone-No. NIGERIA

High Commission of the Federal Republic of Nigeria

3 Maxwell Phillip Street, St. Clair 1-868-622-6834

NORWAY Honorary Consul 10 French Street, Port of Spain 1-868-625-3332/6970

PAKISTAN Honorary Consul 3 Carmody Street, St. Augustine 1-868-662-2037

PANAMA Honorary Consul High Square Condominium, Suite #6 1A Dere Street, Port of Spain 1-868-623-3435

PORTUGAL Honorary Consul 11-13 Milling Avenue, Sea Lots, Port of Spain 1-868-625-1745

SENEGAL Senegalese Consulate 4 Queen’s Park West, Port of Spain 1-868-623-2833

SPAIN Spanish Consulate 2B Riverside Drive, Shorelands, Port of Spain 1-868-637-0319

SURINAME Honorary Consul 5th Floor Tatil Building, Maraval Road, Port of Spain 1-868-628-0704/0089

SWEDEN Honorary Consul 2 Pearl Garden, Petit Valley 1-868-632-0261

SWITZERLAND Honorary Consul 74-76 Dundonald Street, Port of Spain 1-868-623-7816

SYRIAN ARAB REPUBLIC

Honorary Consul 14 Newbury Hill, Glencoe 1-868-637-2381

UNITED KINGDOM

High Commission for the United Kingdom and Northern Ireland

19 St. Clair Avenue, St. Clair 1-868-622-2748

UNITED STATES OF AMERICA

Embassy of the United States of America

15 Queen’s Park West, Port of Spain 1-868-622-6371-6

URUGUAY Consulate for the Oriental Republic of Uruguay

18A Collens Road, Maraval 1-868-622-5772

VENEZUELA Embassy of the Republic of Venezuela

16, Victoria Avenue, Port of Spain 1-868-627-9773



HEADS OF OVERSEAS MISSIONS FOR THE REPUBLIC OF TRINIDAD AND TOBAGO

Country Name Address Phone. No.-;Fax No.;E-Mail Address

BELGIUM Embassy of the Republic of T&T, Brussels, Belgium H.E. Ms Susan Gordon Charge d’ Affairs a.i.

Avenue de La Faisanderie 14, 1150 Brussels, BELGIUM TEL: 01-322-762-9400 FAX: 01-322-772-2783 e-mail: [email protected]

BRAZIL Embassy of the Republic of T&T, Brasilia, Brazil - H. E. Robert M. Torry Ambassador

SHIS QL 02 Conj. 02, Casa 01 71665-028 Brasilia DF, BRAZIL TEL: 01-5561-365-3466 FAX: 01-5561-365-1733 e-mail: [email protected]

CANADA Consulate General of the

Republic of T&T, Toronto, Canada Mr. Cyril Blanchfield Consul General

2005 Sheppard Avenue East, Suite 303, Willowdale, Ontario, M2J 5B4 CANADA TEL: 1-416-495-9442-3 FAX: 1-416-495-6934 e-mail: [email protected]

High Commission of the

Republic of T&T, Ottawa, Canada H.E. Mr. Robert Sabga High Commissioner

200 First Avenue, Ottawa, Ontario K1S 2G6 CANADA TEL: 1-613-232-2418-19 FAX: 1-613-232-4349 e-mail: [email protected]

INDIA High Commission of the

Republic of T&T, New Delhi, India Mr. Tedwin Herbert Acting High Commissioner

131 Jor Bagh, New Delhi, 110003, INDIA TEL: 011-911-1-416-8186/7 FAX: 011-911-1-462-4581 e-mail: [email protected]

JAMAICA High Commission of the Republic of T&T, Kingston, Jamaica H.E. Mr Dennis Francis High Commissioner

First Life Jamaica Building, 3rd Floor, 60 Knutsford Boulevard, Kingston 5, JAMAICA TEL: 1-868-926-5730 FAX: 1-868-926-5801 e-mail t&[email protected]

NIGERIA High Commission of the Republic of T&T, Lagos, Nigeria - Mr. Patrick Edwards High Commissioner

Plot 1301, Parakou Crescent off Amino Kano Crescent Wuse 2 Abuja, FEDERAL REPUBLIC OF NIGERA TEL: 234-9-523-7534 FAX: 234-9-523-7684 no internet connection



SWITZERLAND Permanent Mission of the

Republic of T&T to the U.N., Geneva, Switzerland

Ms Mary Ann Richards Ambassador/Permanent Rep.

37-39 rue de Vermont, 1202 Geneva, SWITZERLAND TEL: 01-4122-918-0380 FAX: 01-4122-734-9138 e-mail: [email protected]

UNITED KINGDOM

High Commission of the Republic of Trinidad & Tobago, London, U.K. Mrs. Sandra McIntyre-Trotman Acting - High Commissioner

42 Belgrave Square, London, SW1X 8NT United Kingdom Tel: 01-0271-245-9351 Fax: 01-0171-832-1065 e-mail: [email protected]

UNITED STATES OF AMERICA

Consulate General of the Republic of T&T, New York, U.S.A Mr. Terrence Walker Consul General

733 Third Avenue, Suite 1716, New York N.Y. 10017-3204 USA Tel: 1-212-682-7272 Fax: 1-212-986-2146 e-mail: [email protected]

Permanent Mission of the Republic of T&T to the U.N. New York, U.S.A. H.E. Mr. George Mc Kenzie – Ambassador/Permanent Representative

820 Second Avenue, 5th Floor, New York, N.Y. 10017 USA Tel: 1-212-697-7620/3 Fax: 1-212-682-3580 e-mail: [email protected]

Embassy of the Republic of T&T, Washington, D.C., U.S.A. – H.E. Mr. Michael Arneaud – Ambassador

1708 Massachusetts Avenue, N.W., Washington D.C., 20036-1975

USA Tel: 1-202-467-6490-3 Fax: 1-202-785-3130 e-mail: [email protected]

Consulate General of the Republic of T&T, Miami, Florida Mr. Chandradath Singh Consul General

1000 Brickell Avenue, Suite 800, Miami, Florida 33131-3047 USA Tel: 1-305-374-2199 Fax: 1-305-374-3199 e-mail: [email protected]



VENEZUELA Embassy of the Republic of T&T

– H.E. Mr. Philip R.A. Sealy – Ambassador

Quinta Serrana, 4a Avenida Entre 7a & 8A, Transversales, Altamira, Caracas PO Apartado del Este 61322 Caracas 1060 A, Venezuela Tel: 582-261-3748 Fax: 582-261-9801 e-mail: [email protected]



HONORARY CONSULS FOR THE REPUBLIC OF TRINIDAD AND TOBAGO

Name Address Phone. No.-

AUSTRALIA Australia - Mr. Michael G. Agostini - Honorary Consul for the Republic of Trinidad and Tobago

P.O. Box 109, Rose Bay, New South Wales 2029, AUSTRALIA (612) 337-4391

BRAZIL Brazil - Dr. Paulo Mangel Lenz Cesar, PROTASIO, Honorary Consul for the Republic of Trinidad and Tobago

BMI-PROMER, Rua Senador Dantas, 80, 18 Andar, 20031 Rio de Janeiro - RJ, BRAZIL 021-203-1229

Mr. Ricardo W. Hagen Crull - Honorary Consul for the Republic of Trinidad & Tobago “Marwa” Commercial Exportadora Ltda

Rua 24 de Maio, 35 - 15th Floor, 1504, 01041 Sao Paulo (SP) BRAZIL 011-221-8150/6679

CANADA Canada - Mr. Harridial Siew Maharaj - Honorary Consul for the Republic of Trinidad and Tobago

252 Rochester Avenue, Winnipeg, Manitoba R3J 3W2, CANADA 1-204-269-5169

DOMINICAN REPUBLIC Dominican Republic - Mr. Freddy A. Reyes Perez - Honorary Consul for the Republic of Trinidad and Tobago National Association of Savings & Loans

Calle Isabel La Catolica 171, Santo Domingo, DOMINICAN REPUBLIC (868) 687-1202

HONG KONG Hong Kong - Dr. Richard S.C. Yapp - Honorary Consul for the Republic of Trinidad and Tobago

Room 1108, Stanhope House 734-738 King’s Road, Quarry Bay HONG KONG

(852) 2833-9091

KOREA Republic of Korea - Mr. Seung Woong Choi - Honorary Consul

76-203 Hyundai Apt., Ahgkujunj-dong Kanjman-Ku, Seoul, REPUBLIC OF KOREA

SWITZERLAND Switzerland - Mr. Agathon Aerni - Honorary Consul for the Republic of Trinidad and Tobago

Sous Directeur, Banque Populaire Suisse, Direction Generale, 30001 Berne, SWITZERLAND



INTERNATIONAL ORGANIZATIONS


Inter American Development Bank (IDB)

19 St. Clair Avenue, Port of Spain 1-868-622-880073 Mr. William Robinson – Representative

Inter American Institute for Cooperation in Agriculture (IICA)

3 Herbert Street, P.O. Box 1318 St. Clair

1-868-628-4079/ 622-7072 Mr. Arron H Parke – Representative in Trinidad & Tobago

Organization of American States (OAS)

15D Wainwright Street, St. Clair B.O. Box 1231 1-868-622-0019/9272 Dr. Joseph C. Campbell – Director

United Nations Development Programme (UNDP)

United Nations House 3 Chancery Lane, Port of Spain 1-868-623-7056 Ms Inyang Abong-Harstrup - Resident Representative

United Nations Economic Commission for Latin America and the Caribbean (ECLAC)

CHIC Building 63 Park Street, Port of Spain 1-868-623-5595 Dr. Len Ishmael – Director

United Nations Education Scientific & Cultural Organization (UNESCO)

15 Wainwright Street, St. Clair 1-868-622-0939 Dr. Surendranath Gajraj – Secretary General Representative

United Nations Food & Agricultural Organization (FAO)

134-138 Frederick Street, Port of Spain 1-868-623-5175 Mr. David W Bowen - Representative

United Nations Information Centre For The Caribbean Area

Bretton Hall, 16 Victoria Avenue, Port of Spain 1-868-623-4813 Ms Vashty Maharaj – Officer-in-Charge

Pan American Health Organisation / World Health Organisation

49 Jerningham Avenue, Port of Spain 1-868-624-7524 Dr. Lilian Reneau-Vernon – Representative



INVESTMENT AND DEVELOPMENT AGENCIES

Name Address Phone-Nos.

Agricultural Development Bank Loans, business and technical advisory service for agriculture and fishing businesses

87 Henry Street, Port of Spain 1-868-623-6261/5

Caribbean Business Services Limited (CBSL) CBSL is a joint venture between a consortium of local financial institutions and manufacturers’ associations, and the Brussels based Centre for Development of Industry (CDI). CBSL provides assistance in production, marketing, partnership agreements and launching new manufacturing projects.

1st Floor T&T Chamber of Commerce Building, Columbus Circle, Westmoorings- By-the-Sea, Pt. Cumana 1-868-625-95422103

Chaguaramas Development Authority Administers the Chaguaramas peninsula, an area to the west of Port of Spain which has been earmarked for tourism and light industrial development

Airways Road, Chaguaramas 1-868-634-4349, 634-4364

Development Finance Limited This is an investment and development bank. It provides loans, equity capital and assistance for investment in private industrial and business enterprises.

8-10 Cipriani Boulevard, Port of Spain 1-868-625-4666/8, 623-4665/7

Enterprise Development Limited (EDL) Associated with the International Finance Corporation. EDI provides assistance in project development and sourcing of finance.

The Mutual Centre, 16 Queen’s Park West, Port of Spain 1-868-628-5074

Export Credit Insurance Company (Excico) Provides insurance, guarantees and short-term financing for exports

5th Floor (Penthouse) Victoria Park Suite 14-17 Victoria Square 1-868-624-0047

Point Lisas Industrial Port Development Company (Plipdeco) Owns and operates the Point Lisas port and industrial estate

Plipdeco House, Orinoco Drive, Point Lisas, Couva 1-868-636-2201, 636-4388, 636-2705/7

Business Development Company Promotes small and medium business through loan guarantee and business advisory services, training programmes and information

151B Charlotte Street, Port of Spain 1-868-623-5507, 624-3923

Tourism and Industrial Development Company of Trinidad and Tobago Limited (TIDCO) Formed in 1995 as the marketing and strategic authority for the promotion and facilitation of investment in industry, trade and tourism

10-14 Philipps Street, Port of Spain 1-868-624-0234, 624-2953



INVESTMENT AND DEVELOPMENT AGENCIES, continued


Trinidad and Tobago Free Zones Company (TTFZ) Responsible for the promotion, approval, regulation, management and control of free zones; provides assistance and advice for export and trade-oriented companies wishing to operate under the Free Zones Programme

Albion Court, 2nd Floor West, 61 Dundonald Street, Port of Spain 1-868-625-4749, 623-8363

World Trade Centre Provides marketing support services and access to international data bases for sourcing and marketing information

North Bank Road, Piarco 1-868- 669-4101/2



GOVERNMENT MINISTRIES AND KEY AGENCIES

Name Address Telephone-No.

Ministry of Agriculture, Land and Marine Resources St. Clair Circle, St. Clair, Port of Spain 1-868-622-1221/2

Attorney General & Legal Affairs Cabildo Chambers, Corner St. Vincent and Sackville Streets, Port of Spain 1-868-623-7010 1-868-625 - 0470

Ministry of National Security and Rehabilitation

Temple Court, 31-33 Abercromby Street, Port of Spain 1 868 623-2441

Ministry of Energy and Energy Industries Riverside Plaza, Level 9, Besson and Piccadilly Streets, Port of Spain 1-868-623-6708

Ministry of Finance Eric Williams Finance Building, Eric Williams Plaza, Level 8 Independence Square, Port of Spain 1-868-627-9700; 1-868-627-3240

Ministry of Planning and Development Eric Williams Finance Building, Eric Williams Plaza, Level 14 Independence Square, Port of Spain 1-868-627-9700

Ministry of Trade and Industry Level 15 Riverside Plaza, Corner Besson and Piccdally Streets Port of Spain 1-868-628-1323

Ministry of Foreign Affairs Level 15, Riverside Plaza, Corner Besson & Piccadilly Streets, Port of Spain 1-868-623-4116-9, 1-868-623-2931, 1-868-625-4409; -868-627-0002;

Infrastructure Development and Local Government Corner Richmond & London Streets Port of Spain 1-868-625-1225-9 1-868-628-1325

Ministry of The Environment Eric Williams Finance Building, Eric Williams Plaza, Level 16 Independence Square, Port of Spain 1-868-627-9700 Ext. 4212, 4217

Ministry of Labour and Small and Micro Enterprise Development

Riverside Plaza, Level 11 Corner Besson and Piccadilly Streets, Port of Spain 1-868-623-42422931

Ministry of Works and Transport Corner Richmond and London Streets, Port of Spain 1-868-625-1225-9



GOVERNMENT MINISTRIES AND KEY AGENCIES, continued

Name Address Telephone-No.

KEY AGENCIES

Board of Inland Revenue Trinidad House, St. Vincent Street, Port of Spain 1-868-623-1211

Central Bank of Trinidad and Tobago Central Bank Building, Eric Williams Plaza, Independence Square, Port of Spain 1-868-625-4835

Customs and Excise Division Nicholas Court, Abercromby Street and Independence Square, Port of Spain 1-868-625-3311

Immigration Department 67 Frederick Street, Port of Spain 1-868-625-3571

Port Authority of Trinidad and Tobago Wrightson Road, P.O. Box 549, Port of Spain 1-868-623-5685

Tobago House of Assembly Jerningham Street, Scarborough, Tobago 1-868-639-3421

Trinidad and Tobago Bureau of Standards 1-2 Century Drive, Trincity Industrial Estate/ P.O. Box 467, POS 1-868-662-8827

Trinidad and Tobago Stock Exchange 1 Ajax Street, Port of Spain 1-868-625-5108

BBuuss iinneessss aanndd PPrrooffeessss iioonnaall AAssssoocc iiaatt iioonnss


BUSINESS AND PROFESSIONAL ASSOCIATIONS

Name Address Telephone No.

American Chamber of Commerce of Trinidad and Tobago

Upper Shopping Arcade Trinidad Hilton and Conference Centre Lady Young Road Port of Spain 1-868-627-8570

Association of Trinidad and Tobago Insurance Companies (ATTIC)

22 Cotton Hill P.O. Box 311 Port of Spain 1-868-622-8994/6883

Copyright Organisation of Trinidad and Tobago 45C Jerningham Avenue Belmont Port of Spain 1-868-623-6101

Employers’ Consultative Association

43 Dundonald Street P.O. Box 911 Port of Spain 1-868-625-4723, 625-4891, 623-6588

Institute of Banking and Finance of Trinidad and Tobago Trinidad Publishing Co Level 3 22-24 St. Vincent Street Port of Spain 1-868-627-2231

Institute of Chartered Accountants of Trinidad and Tobago (ICATT)

2nd Floor The Professional Centre Wrightson Road Ext. P.O. Box 864 Port of Spain 1-868-625-1954

Joint Consultative Council for The Construction Industry (JCC)

c/o T& T Chamber of Industry & Commerce Secretariat, P O Box 499, Columbus Circle, Westmoorings 1-868-637-2967

Library Association of Trinidad and Tobago 109 Abercrombry Street Port of Spain 1-868-624-1130

Professional Valuation and Land Economy Surveyors of Trinidad and Tobago

c/o Valuation Division 109 Henry Street Port of Spain 1-868-623-4221



The Association of Professional Engineers P.O. Box 935 The Professional Centre Wrightson Road Ext. Port of Spain 1-868-627-6697

The Couva/Point Lisas Chamber of Commerce CC House Corner Millard Street & 128 Southern Main Road, Couva 1-868-636-2961

The South Trinidad Chamber of Industry and Commerce Inc.

Suite 13, Top Floor Cross Crossing Shopping Centre P.O. Box 80 San Fernando 1-868-657-9077

The Trinidad and Tobago Chamber of Industry and Commerce

Chamber Building, Columbus Circle Westmoorings P.O. Box 499 Port of Spain 1-868-637-6966

Trinidad and Tobago Hotel, Restaurants and Tourism Association (Tobago Chapter)

Apt #1 Goddard Building Auchenskeoch Road Carnbee Tobago 1-868-639-9543; 1-868-660-228

Trinidad Hotel & Tourism Association c/o Trinidad and Tobago Hospitality & Tourism Institute Airways Road, Chaguaramas 1-868-634-1174-5

Trinidad and Tobago Law Association Suite 4, Chancery Court Yard 13-15 St. Vincent Street, P.O. Box 534 Port of Spain 1-868-625-9350

Trinidad and Tobago Manufacturers Association 8a Stanmore Avenue P.O. Box 971 Port of Spain 1-868-625-8862

Trinidad and Tobago Medical Association 115 Abercromby Street

Port of Spain 1-868-623-7246

Trinidad and Tobago Stock Exchange 1 Ajax Street Port of Spain 1-868-625-5108



IINNDDEEXX

A

Access To Schools · 113 Agriculture · 36, 66, 68, 117, 138 Airport Facts And Figures · 1, 18 Airports & Routes · 16 Allowable Deductions · 93, 94, 109 Animal Quarantine · 116 Applications For Incentives · 65 Approved Property Development Company · 86 Articles of Incorporation · 60 Assessment And Audit · 91 Association of Caribbean States · 2, 10 audit committee · 57, 61

B

Bad and Doubtful Debts · 97 Balance Of Payments · 1, 25 Basic Legislation, Tax · 90 Basic Principles, Tax · 99, 107 Beaches · 117 Betting, Gaming And Lotteries · 111 Bonds · 48 Boxing Day · 56 Branch or External Companies · 57 Branch Profits · 102 Branches · 99 BUSINESS AND PROFESSIONAL

ASSOCIATIONS · 139 Business Attire · 118 Business Environment · 1 Business Hours · 118 Buying An Existing Property · 73 By- Laws · 60

C

Cable Television · 20 Canadian Business Corporations Act · 57 Capital · 3, 48, 58, 93, 99, 108 Capital Gains · 93, 99, 108 Cargo Flights · 17 Caribbean Basin Initiative (CBI) · 10, 11 Caribbean Market Facts · 14

Caribcan · 12 CARICOM · 8 CARICOM Goods · 67 CARICOM/Republic Of Colombia Agreement · 13 CARICOM/Republic Of Venezuela Agreement · 12 Carnival · 56, 118 Charitable Donations · 98 Christmas Day · 56 Circumstances Under Which Licences Are Required ·

65 Climate · 3 Close Companies · 92 Collection Of Tax And Penalties · 105 Commercial And Industrial Areas · 15 Commercial Practices · 118 Companies Act, 1995 · 57 Constructing Properties · 69 Construction Incentives · 86 Copyright · 80 Corporate Tax Rates · 100 Corporate Taxes · 92 Cost Of Living · 114 Cruise Shipping · 41 Cuba/Trinidad and Tobago Agreement · 14 Cultural Events · 118 Cultural Norms · 118 Culture · 3 Customs And Excise Duties · 110

D

Depreciation · 94, 97 Direct Flights · 1 Direct Flights · 17 Direct Television · 20 Disputes And Appeals · 91 Dividends · 92, 93, 98, 102, 108 Double Taxation Relief And Tax Treaties · 93, 105 Driver’s Permit · 116

E

Economic Trends · 21 Eco-Tourism · 117 Education · 2, 52, 62, 112 Educational System · 112 Electricity Rates · 119

IINNDDEEXX


Employees' Remuneration · 98 Employment Income · 108 Environmental Issues · 44 ESTABLISHING A BUSINESS · 57 Ethnic Groups · 1, 5 Exchange Fluctuations · 94 Exchange Rate Stability · 27 Exempt Income · 94 Expatriate Living, Culture And Tourism · 1, 112 Exporting · 67 Exports · 1, 7, 62 Exports And Imports · 7

F

Financial Statements · 60 Financial System · 46 Food Processing Industries · 37 Foreign Currency Accounts · 47 Foreign Missions · 129, 130, 131 Formation and Start-up costs · 96 Forms of Business · 57 Free Zones Act · 85, 137 Free Zones Company · 85, 86, 137

G

GDP · 1, 2 Geographical Indications · 80 Government Ministries And Key Agencies · 138 Government’s Priorities, Role And Objectives · 27 Groups Of Companies · 96, 99

H

Health Certificate · 68, 117 Health Surcharge · 63, 64 History · 3 Holidays · 56 Honorary Consuls · 134 Hotel Industry · 106 Hotel Room Tax · 111 Housing · 86, 114 Housing Act Exemptions · 86

I

Import And Export Procedures · 66 Import Duty Concessions · 83 Importing · 66, 115

Importing A Car Into Trinidad And Tobago · 115 Imports · 1, 7, 8 Income Tax · 63, 64, 66, 86, 87, 90, 94, 95 Incorporation Procedures · 59 Industrial Buildings · 95 Industrial Designs · 79 Industrial Property · 87 Inflation · 1, 25 Information Services · 43 Insurance Premium Tax · 111 Intangibles · 95 Intellectual Property · 2, 10, 77 Interest · 46, 47, 92, 96, 103 Interest Rates · 46 International Associations · 8 INTERNATIONAL ORGANIZATIONS · 135 International Schools · 113 Internet Access · 123 Inventory Valuation · 93 Investing In Trinidad And Tobago · 65 Investment And Development Agencies · 136, 137 Investment Facilitation · 43 Investment Incentives · 83 Investment Opportunities · 37 Investment Promotion · 65

J

Joint Ventures · 93

L

Labour · 1, 52 Labour Exchange · 56 Labour Force · 1, 53 Land · 3, 66, 68, 95, 117, 138 Language · 5 Layout Designs · 80 Legal Expenses · 98 Licensing Office · 116 Lome Convention · 10, 68 Loss Relief · 87, 108

M

Machinery and Equipment · 94 Main Trading Partners · 1, 8 Management · 44, 97, 103 Marine Industries · 39 Media · 19 Medical Facilities · 112

IINNDDEEXX


Metals Industry · 38 Minimum Wages · 53 Miscellaneous Information · 119 Mortgage Interest · 109 Mutual Funds · 48, 49

N

Name Search · 59 Name Search/ Name Reservation · 59 National Insurance, Income Tax And Health Surcharge

· 63 Network Of Support Services · 43 New Plant Varieties · 81 Newspapers · 19 Non-resident Companies · 92

O

Obtaining Commercial Property · 69 Occupational Safety and Health · 56 Office Space · 69 Other Construction Tax Incentives · 86 Overtime Remuneration · 53

P

Parliament, House Of Representatives And The Senate · 51

Partnerships · 57 Passports · 73, 75, 76, 77 Patents · 79 Payment Of Tax · 102 Penalties And Interest · 92 Personal Allowances · 109 Personal Tax Rates · 105, 109 Petrochemical Industry · 29, 31 Petroleum Industry · 29, 30 Petroleum Operations · 106 Plant and Machinery · 67 Political System · 51 Ports · 18 Postal Services · 123 Powers Of The Board Of Inland Revenue · 90 Principal Taxes · 89 Private companies · 57 Procedures For Incorporating A Company In Trinidad

And Tobago · 58 public company · 57

R

Radio · 20 Raw Materials · 67 Real Estate Taxes · 111 Real GDP Growth · 1 Registering For Value Added Tax (VAT) · 61 Registration Fees · 59 Regulation · 83 Religion · 5, 6 Reorganisations · 101 Repairs and Maintenance · 97 Resident Companies · 92 Resident Status · 73, 74 Retrenchment And Severance Benefits Act · 55 Revaluation of Assets · 96 Road Traffic Licence And Vehicle Transfer Tax · 111 Roads · 19 Role Of The President And The Prime Minister · 51

S

Safety and Health · 56 Safety Tips · 118 Salaries And Wages · 105 Satellite Communications · 123 Schools · 1, 52, 112, 113 Sea Ports · 18 Share Capital · 58 Sightseeing · 119 Social Security · 56, 63, 110 Social Security Contributions · 110 Sole proprietorships · 57 Special Classes Of Company · 86 Special Tax Allowances For Exporters · 87 Special Tax Treatment Of Foreign Nationals · 109 Sporting Facilities · 117 Stamp Duty On Conveyance Of Real Estate · 110 Stock Market · 48, 49 Support Services · 43

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Tax Payments, Returns And Appeals · 110 Tax Returns · 91 Tax Treaties · 90, 93, 105 Tax Treatment Of Losses · 99 Tax Treatment Of Partnerships · 93 Tax Treatment Of Specific Industries · 106 Tax Year · 91 Taxable Income · 93, 107, 109