TRADE INFORMATION

Côte d'Ivoire is a country of western sub-Saharan Africa. It borders Liberia and Guinea in the west, Mali and Burkina Faso in the north, Ghana in the east, and the Gulf of Guinea (Atlantic Ocean) in the south. The country lies between latitudes 4° and 11°N, and longitudes 2° and 9°W.

Côte d’Ivoire has for the region a relatively high income per capita (USD 960 in 2007) and plays a key role in transit trade for neighboring landlocked countries. The country is the largest economy in the West African Economic and Monetary Union, constituting 40 percent of the monetary union’s total GDP. The country is the world's largest exporter of cocoa, and the fourth largest exporter of goods in sub-Saharan Africa (following South Africa, Nigeria and Angola).

The maintenance of close ties to France since independence in 1960, diversification of agriculture for export, and encouragement of foreign investment, has been factors in the economic growth of Côte d'Ivoire. In recent years Côte d'Ivoire has been subject to greater competition and falling prices in the global marketplace for its primary agricultural crops: coffee and cocoa. That, compounded with high internal corruption, makes life difficult for the grower and those exporting into foreign markets.

In Ivory Coast, the primary market depends heavily on agriculture. In fact, approximately 70% of the population works in some form or another within the agricultural sector. Of the largest producers and exporters of cocoa beans, coffee, and palm oil, Cote d’Ivoire is at the top. While this is good news for Ivory Coast trade, it also means there is risk any time the market fluctuates. If international pricing goes down or weather prohibits a good crop, Ivory Coast trade feels the impact.

Although the government of Ivory Coast has made tremendous effort to diversify the economy, agriculture and agricultural activities remain the primary sector. For instance, in the 1960s, the GDP per capita increased by 82%, finally hitting 360% in the 1970s. However, by the 1980s and 1990s, numbers had dropped to 22%. Then, considering that this part of the country experienced significant population growth, standard of living in Ivory Coast began to slide.

Although the economy saw some troubling times, around the mid-1990s when the CFA Franc was devaluated, prices for coffee and cocoa increased, and Ivory Coast exports to include rubber and pineapples saw growth. Other changes during this time included liberation of banking, limited Ivory Coast trade, new discoveries for gas and offshore oil, external financing improved, and debt was rescheduled. Even though devaluation reached 50% for currencies in the Franc zone causing inflation to rise to 26%, within two years, it dropped dramatically.

The good news for both Ivory Coast exports and Ivory Coast imports is that from that time to now, standards for this country have improved. Today, Cote d’Ivoire has a strong and diverse infrastructure to include telecommunication services, over 8,000 miles of paved road, and more. One area that continues to be a challenge is livestock. Since a large portion of the Ivory Coast is tsetse-fly infested, cattle are grown only in the most northern districts. Other livestock maintained in controlled areas include hogs, goats, chickens, and sheep, which produce byproducts of eggs, milk, and meat.

Another area that has been successful for Ivory Coast exports and Ivory Coast imports is fishing. In fact, the largest tuna fishing port has been in operating at Abidjan since 1964. Every year, approximately 100,000 tons of tuna is processed. In addition to this, commercial fishing for tuna and sardines accounts for much of the economy and fish hatcheries have been established in Korhogo, Bamoro, and Bouake.

Additionally, Ivory Coast consists of forestry. This part of the world has rainforests, deciduous forests, and secondary forests, which account for more than 7,117,000 hectares. While forestry is still harvested and sold, due to an influx of hostilities that caused political instability in 2002, it is now illegal to log. However, for purpose of maintenance, some limited logging is still allowed in forest areas that are classified. Just seven years ago, Ivory Coast exports of forest products reached $269 million, making it the third most valued source of foreign revenue.

The Ivory Coast export business also includes petroleum and cocoa as the primary products, working with markets such as Spain, Netherlands, Italy, France, India, Germany, the UK, Morocco, Senegal, and Ireland. One reason Ivory Coast exports for forest products continues to be in such high demand is that wood species include framire, frake, teak, samba, cedar, pine, bête, gmelina, and mangon.

Today, the Ivory Coast Trade, Ivory Coast Exports, Ivory Coast Imports includes many products in addition to those mentioned such as palm kernels, rice, corn, cotton, sugar, sweet potatoes, manioc, and bananas. For industries, these include foods, beverages, and wood products, as well as bus and truck assembly, oil refinery, fertilizer, textiles, electricity, building materials, and ship construction/repair. The amount of Ivory Coast exports is $6.50 billion and for Ivory Coast imports, $4.80 billion. Finally, the primary partners for exports are France, Netherlands, the United States, Nigeria, and Italy and for imports, France, Nigeria, and Thailand.

COCOA MECHANISM AND PROCEDURES OF MARKETING

I / MECHANISM

A-OBJECTIVES

• Determine a target price of purchasing the producer, recording period;
• Strengthen the capacity of Coopex and SMX;
• Promote the quality of products sold;
• Strengthen the system of marketing information;
• Improve the fair and effective competition between operators;
• Ensure independent and transparent functioning of the sector.

B-PRINCIPLES

• Determining a reference CIF price for each registration period; Fixing a target price to producers by buying period;
• Open and free access to all registration periods;
• Free records on all open periods;
• Maintaining the reserve of prudence;
• Maintaining the cap purchases; Training operators to use the table indicative of reduction; Regular information to operators on the level of market prices;
• Dissemination of a table of penalties.

C-PROCEDURES

C-1 CIF REFERENCE

The reference CIF price is determined on the basis of the configuration and analysis Market. It includes the estimated levels of production costs and production Marketing.

C-2 STRUCTURE OF SYNTHETIC INDICATIVE COSTS

The indicative cost structure is negotiated by the inter within the BCC and discussed with the FRC and the ARCC. Negotiation and discussion of the indicative cost structure designed to allow better appreciation of the purchase price for the producer, depending in particular levels of taxation and special levies approved by the State.

C-3 PRICE OF PURCHASE TO THE PRODUCER

The target price is paid to the producer by fixed registration period. It is determined compared with international prices, taking into account the levels of production costs of production and marketing estimates.

C-4 SECURING THE PRICE

C-4-1 Reserve caution

Reserve caution is the security arrangements for the purchase price to the producer, she can also mobilize the financial resources needed to finance possible actions in support of the purchase price to the producer. Its level and its operating procedures are established before starting campaign by the FRC on the CCB and the ARCC.

C-4-2 The support mechanism of the purchase price to the producer

The mechanism of action aims to stem the possible decline of the purchase price at producer. It may have several facets to market considerations and reasons strategic. During the period, a sharp and sustained drop in prices below the price cif reference, or sooner if the market situation requires an anticipation of the phenomenon, Market Committee of CCB seizes the FRC and the ARCC to decide together the proper action preferred. The purchase price to the producer is supported either by direct intervention or through financial instruments risk management strategy based on a term and / or options. The management of this mechanism of financial support from the FRC will be required in such mechanism.

C-5 LIMITATION OF PURCHASES

The level of limiting purchases are decided by the ARCC. The practical arrangements its implementation are identified and stopped before the start of the period or marketing.

C-6 STRENGTHENING CAPACITY OF COOPEX and SMX

In order to strengthen the capacity of Coopex and SMX, the BCC and the FRC will in implement support measures in the context of specific projects or programs in conjunction with ARCC. These measures will strengthen this category of operators, including through access to finance and risk management tools, establishment of structural links and credibility with the downstream industry and trading, and access to physical especially for SMX. Within the short-term measures which include exemption from payment reserve prudence and dispense with the production of the security check-in limits, a specific agreement is reached between the CCB and each Coopex and SMX. This agreement will define the eligibility criteria, conditions and modalities of implementation implementing measures.

C-7 THE INFORMATION SYSTEM ON THE MARKET.

To ensure transparency in marketing conditions, including internal, relevant information relating thereto will be published regularly, while means of communication and information.

C-8 TABLE INDICATIVE REDUCTIONS

To strengthen the transparent operation of the sector and help to further improving the quality of marketed products, the table of reduction adopted tentative within the framework of the inter-sessional period will be targeted training and wide dissemination ensured.

C-9 tax and Social Security Contributions

 

• The Right One (DUS) Cocoa is set by the Government. He sits on quantities exported and payable to Customs;
• The registration fee is set by the state. She sits on the CIF registration and is payable to Directorate General of Taxes (DGI);
• The level of fees and other levies are set by ministerial decree.

These fees and levies are assessed on the net weight exported. If, for compelling reasons, a review of fiscal and quasi-fiscal items (DUS, Tax registration fees and other levies) occurs, during the period or during the marketing year, the change will apply on a non- retroactive to the inventoried stock on the date of its publication.

C-10 TABLE OF SANCTIONS

To ensure the transparent operation of the sector and help to further enhancing fair competition among all operators, table of sanctions will published before the start of the campaign.

II / PROCEDURES

1. PURCHASE DECLARATION

An approved exporter, must every Tuesday, no later than 18 hours, under the week before Tuesday, declare and register with the Exchange Coffee and Cacao (BCC) the situation of his purchases, his receptions from all plants, its transactions with local other exporters. He must also file this statement issued, signed and sealed within 48 hours registration, the BCC copy to the ARCC. Failure to report purchases on two (2) consecutive weeks, no longer gives access to all records.

2. REGISTRATION

2.1 Definition of the registration

Registration is the acceptance by the exporter, the outcome of the commercial proposal market information on a given date, and made by the BCC to all accredited exporters. For the record, the export commitment is perfect for a quantity or quality, destination and a fixed future date of shipment by the exporter to:

• a CIF record for a period and for a reference quality defined by CCB;
• two fiscal rules: registration tax basis on the CIF price of registration, and the sole right to output (DUS) sitting on the weight saved and exported;
• conditions levies (charges and other levies) predetermined, and published sitting on the weight recorded and exported. The record results in the automatic issuance of a registration confirmation (CDC) which is the contractual document of reference for the realization of export operations.

2.2 Access to Records
Access to the Integrated Registration System is restricted to exporters that have a valid authorization for the marketing of coffee and cocoa in progress. At any approved exporter, the BCC attributes of office and rules:

• A user profile;
• A code exporter
• A password or access code.

The connection to the registration system is authenticated by the above data to an ugly electronic card and its reader. The exporter makes freely licensed his recordings automatically, every day working 10 hours 30 minutes to 18 hours. The connection of computer equipment the exporter is via telephone installations using the following numbers:
+22520.25.41.00 / +225 21.25.42.00.

2.3 Period of registration

By reference to quotations of the London market, registration periods are as follows:

Registration Periods	Registration deadlines
October-December (OD)	until December 12
January-March (JM)	until March 14
April-June (AJ)	until June 30
July-September (JS)	until September 15

After the close of trading of the contract September 15 September on the London market, to enable further purchases prior to the start of next season, the recordings will be made on the basis of quotations for December contract. However, this opening records on the basis of quotations for December contract will be permitted

after deliberation by the Board of Directors of CCB and / or consulting the

Interdepartmental Commodities (ICPM).

 

2.4 Price CIF recording

 

 

 

The CIF price of registration which is different from the sales price CIF basis, is determined on the basis of the following average:

[Closing Price J – 1 Opening Price J ] / 2.

This formula remains valid for all open periods. The exchange rate used for the period is in effect between10:00 and 10:30 minutes, the seizure of quotations.

 

The CIF price of registration is expressed in EURO (€) and 655.96 kg (equivalent to CFAF / kg). It is expressed in CIF Europe based Good Fermented (GF), corrected for the original differential. This differential may be revised over time. The CIF price of registration is displayed 10 hours 30 minutes to 18 hours and remains valid up to 18 hours GMT, closing records. In the absence of trading in an open and active, the BCC will display from 14 hours 30 minutes, the last "SWITCH" to date which is determined as follows:

 

[(Closing Price J-2 - Opening Prices J-1) + Or - (Closing Price J-1) Closing Price J-1] / 2

 

 

All approved exporters have automatic access to that price. Each exporter is consult at any moment the situation of his recordings.

 

2.5 Quantity and quality allowed for registration

The recordings are made in multiples of 25 metric tons to beans with minimum quantity of 25 tons. The reference grade is the Good Fermented (GF) corresponding to grade I and II.

 

2.6 Destinations

The destinations are free and left to the exporters. The registration fee still sitting on the CIF price of registration defined in paragraph 2.4 above. In the case of processing a registration confirmation, for the sake of change destination other than Europe, the registration fee will be determined on the CIF Europe.

2.7 Taxation and Social Security

 

Levels of taxation and special levies are set by ministerial order, beginning each period, they concern the following topics:

• Registration fee
• Right Single (DUS)
• ARCC fee (including weighing, quality control and contribution to the budgets
• International Organizations of cocoa and coffee)
• BCC charge
• FRC Charge
• Sampling Sacherie bush
• FDPCC levy - Operation (including the contribution to the functioning of FIRCA and the National Chamber of Agriculture)
• Sampling FDPCC-Investment
• Reserve Prudence
• Investment funds in rural areas.

2.8 Confirmation of registration (CDC)

 

All registration must be the subject of a confirmation. Confirmation

 

Record results in the automatic issuance of a contractual document called the "CDC" or confirmation of registration. The CDC is the contractual document of reference for the realization of export operations. The Final CDC is published by the BCC in four (4) slips after the electronic validation of the latter by the exporter. The CIF price of registration, taxes, royalties and other levies are in CFA ( XOF ) on the CDC. To be addressed by the BCC, the DCC must be accompanied by a certificate of deposit bank Record validated by the FRC.

 

 

 

2.9 Bank guarantee registration

 

The amount of bank guarantee for registration is 25 CFAF / kg recorded.

 

The exporter who wishes may issue a certificate of deposit of foreign banks, provided in case of dispute, the competent court is that of Abidjan.

 

The bond is denominated bank recording the benefit of the FRC and is deposited in the BCC when editing of the CDC.

 

 

 

2.10 times

 

 

 

2.10.1 Registration deadlines

 

 

 

The recordings are made mandatory from the BCC, the following deadlines for each open periods:

 

 

 

Registration Periods	Registration deadlines
October-December (OD)	until December 12
January-March (JM)	until March 14
April-June (AJ)	until June 30
July-September (JS)	until September 15

 

 

 

2.10.2 Time of cancellation of registration In principle, the cancellation of a registration is not allowed. However, within 24 hours after registration, duly justified if an error is served by mail to the BCC, cancellation of registration is allowed. 2.10.3 Time to confirm records

 

The security for registration is filed with the CCB, within a maximum of 5 working days from the date of registration. Electronic Confirmation of the CDC must be in the same period. 2.10.4 Processing time of the CDC and the bond registration

 

CCB and the FRC have set a maximum period of 72 hours to process and sign the bond registration and the CDC. After verification of compliance of inscriptions on the CDC, the BCC aims and transmits a copy accompanied by a bank guarantee for registration FRC. After verification of compliance and regularity of bank guarantee for registration, the FRC the sign and forward a copy to the BCC. CCB, based on the copy of bank guarantee for registration signed by the FRC, validates electronic CDC, sign and make it available to the exporter and CRF. 3. BOARDING AND CLEARANCE OF CDC

3.1 Boarding

 

Any record is followed by a shipment.
Boarding times are:

 

• 1st October to 31 December;
• 1stJanuary to 31 March;
• 1stApril to 30 June;
• 1stJuly to 30 September.

 

 

The boarding procedure results include:

 

• to the introduction by the exporter, an application for an export license;
• the quantity and quality checks carried out by private concessionaires approved under the supervision of the ARCC;
• pest control services performed by the Ministry of Agriculture and Rural Development;
• to the introduction by the exporter, an application for shipment or packing with of CCB;
• the quality control sample for a representative sample quality analysis, by BCC.

 

 

After each shipment period, that is to say late December, late March, late June to late September, the exporter has a maximum period of 15 days (Abidjan port) and 21 days (Port San Pedro) to implement its commitments or provide proof of shipment of products, the date "Seen board" authentic. 3.2 Predicting or delay of shipment

 

The exporter is free to anticipate or defer shipments. Postponement or cancellation Boarding is permitted in exceptional circumstances and under the following conditions:

 

• Advance Boarding
  The anticipation of shipment may be authorized only once per contract, and the period earlier. In such cases the settlement of the registration fee is based on the period when the price of registration is higher.
  
• Report boarding
  The postponement of shipment may be authorized only once per contract, and the following period. In such cases the settlement of the registration fee is based on the period when the price Registration is highest. A postponement of shipment will be sent to the BCC, no later than 21 days calendar after the opening of the period over which the deferral is requested. The postponement of shipment is not allowed on the last contract period of the campaign. It is therefore impossible to carry forward boarding a campaign to another.
  

 

 

3.3 Clearance of CDC

All registration is confirmed commercial engagement firm, quantitatively and qualitatively, vis-à-vis the CCB, and a firm financial commitment, in relation to fees and charges, vis - a - vis the state and the FRC. The clearance of the CDC results include:

 

• The issuance by the exporter's application for an export license;
• The filing of the required documentation package;
• Edited by the CCB Services Bank One, Formula Launched in 16 sheets;
• The payment of taxes (Treasury and Customs) and the return of royalties to the various checks FRC on behalf of beneficiaries.

 

 

For supersedes Forms (F01), the CDC supersedes matching will be required. The provisions enacted in section 2.5 on quality and quantity allowed for registration are maintained for requests for authorization to export "Formula Launched , in other words, partial lots are not allowed on the 'Formula Launched
3.4 Deadlines

Any record is followed by a shipment. After each shipment period, that is to say after the end of December, late March, late June to late September, the exporter shall have maximum of 15 days (Abidjan port) and 21 days (Port San Pedro) to implement its commitment or provide proof of shipment of products, the date "Seen board" authentic.
3.5 Freehand deposit
The hands of the bank guarantee registration occurs at the end of the process boarding, and gives rise to a written request to the FRC. At the request of hands are clasped in particular:

 

• copy of the bank guarantee subject to the application;
• copy of the CDC;
• Copy the CDC split;
• the original copy of the form Vu - Boarding
• copy of each form Vu - Boarding.

 

 

The FRC has 72 hours to issue a certificate of deposit hands, the filing date authentic.

TABLE OF TRADE SANCTIONS

Fouls	Penalties	Authority
Timeout Confirmation Registration	Suspension of email access to regularization	BCC
No confirmation of registration beyond the Registration Period	Payment of fees and expenses incurred	BCC / FRC
Not running the boarding end of period	payment of fees and expenses incurred	BCC / FRC
Disregard of the shipment period, following deferral	1) Adjustment of prices if the market is at a premium 2) Payment of fees and expenses incurred	BCC FRC
Issuing a bad check	1) Suspension of access to email after 72 business hours 2) In case of recidivism, systematic payment of taxes and fees by certified checks throughout campaign	BCC   FRC
Issuance ofadishonored check	Suspension of the mail after 72 hours working, lack of regulation in the meantime	BCC FRC
Non-payment of taxes and royalties incurred beyond the shipment period	Appeal bonds in the amount of fees and charges contracted.	ARCC / BCC FRC / FDPCC