|
| |
EXPORTS TO OMAN.
Term Paper ID:27056
|
|
|
Essay Subject:
Overview of nation & feasability of investment, focusing on export of PlasDek, a roofing material.... More...
|
8 Pages / 1800 Words
4 sources, 9 Citations,
APA Format
$32.00
Return to List of Papers
|
Paper Abstract:
Overview of nation & feasability of investment, focusing on export of PlasDek, a roofing material.
Paper Introduction:
HOW TO EXPORT PLASDEK INTO OMAN
What is PlasDek?
The product is a flexible material for flat roofs with superior resistance to leaks.
Text of the Paper:
The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper.
* It is obviously made from plasticFrom this base knowledge, we can assume the following about the product: * It is suitable for either commercial or residential construction. How to Sell PlasDek in Oman Exporting PlasDek into Oman involves making ministerial contact withfour main organizations which are responsible for most of the construction. Most principal-agent agreements give agents the right of exclusivedistributorship, however Oman allows for many principal-agent agreements(each having detailed provisions). * Unjust termination of contract for both limited and unlimitedduration agency agreements places liability for termination upon theterminating party. And to the best of our knowledge, PlasDekhas no similar manufacturers in Oman. British influence was confirmed in a 1951 treaty, and Britain helpedsuppress an uprising by traditionally rebellious interior tribes againstcontrol by Muscat in the 195 s. References Author not available,(1996m March 1), Symposium: contemporary Oman andU.S.-Oman relations, Middle East Policy, 1-3 . Where We Are Right Now We are at the point of determining the business sense of exporting aconstruction material into this country. We know this much about theproduct, PlasDek. He [the Sultan] has been a leader on the ArabianPeninsula in promoting the education and political empowerment of women andin articulating a vision of gradually expanding popular participation ingovernment@ (Symposium, 1996). Therefore, the challenge is to determine differentapproaches to selling it in Oman. 113MuscatSultanate of OmanTEL: (968) 799-5 , FAX (968) 794-239/794-226INDUSTRY FAX 792444 Ministry of Communications This agency provides information on business procedures and detailscurrent import regulations.P.O. Penetrate as much of that market as possible. To do this, a great deal ofinfrastructure development is taking place.PlasDek, as a construction material may find a ready market, although notone with a direct approach. Is there a Market for PlasDek The Oman official web site (www.omanet.com) links to many other sites,and within its internal links includes a page listing many of thedevelopment projects going on in the nation. A study of theimport limitations on the Oman web site did not mention constructionmaterials, so there is little chance that PlasDek will be denied entry. This willbe accomplished in the following sections. Many imports from Gulf CooperationCouncil (GCC) member states are duty free, and refined petroleum productsmay be imported without duty levied. What Kinds of Trade Barriers does Oman Have Oman does not allow goods to be imported from, or transshippedthrough, Israel or South Africa. Businesses which are taxed in Oman are taxed only onthe income derived in Oman, therefore international dividend income andbusiness payments to foreign affiliates are deductible. Box 881 - MuscatPostal Code 113Sultanate of OmanTEL: (968) 698-9 , FAX: (968) 696-285 Conclusion The government, which operates under five year development plans, istrying to diversify its economy away from oil. * Omani law usually requires suitable compensation by the terminatingparty, unless just cause for contract termination can be established. This was clearly expressed in a 1996 symposium which statedAThe politics of economics is an important factor in our relationship withOman...[the nation has taken great steps].to ensure Oman's place as astable, modern country. Since PlasDek would be coming in from a non-Middle East nation, thereis a general import duty of five percent ad valorem of the cost, insurance,and freight (c.i.f.) value of the goods. The official salient facts are: Oman at a Glance:Official name: The Sultanate of OmanCapital: MuscatLand area: 212,457 sq km (82, 3 sq mi)Elevations: Lowest -- sea level along the coast Highest -- 3 35m (99 ft) in the mountainsPopulation: 2,587,581 (1997 est.)Population density: 7.5 per sq km (19.4/sq mi)Distribution: 9% urban, 91% ruralOfficial language: ArabicMajor religion: Islam but the practice of other religions is allowed inOman and there are churches in the country.Literacy: 41% of adult population (1995)Universities: 1Life expectancy: Women 69 Men 65GDP: $1 .6 billion and $6925 per capitaForeign trade (1996) Imports = $4.5 billion Exports = $5.5 billionCurrency: Omani rial 1 Omani rial = 1 baiza $1 = 385 baizaGovernment: SultanateHead of state: Qaboos bin Said, Sultan and Prime MinisterLegislature: Consultative CouncilSubdivisions: 3 governoratesRailroads: NoneRoads (1994): 2 ,875 km (12,893 mi)Major ports: 2Major airfields: 2Time zone: GMT + 4 hoursAnnual Rainfall: 2-3 inchesAnnual Temperature: 74 to 115General Climate: Desert (ArabNet, 1999, Online). Unless PlasDek manages to land a government contract, it will benecessary to retain an Omani agent in order to conduct business in Oman.The agent must be an Omani citizen and the agency itself must be majorityOmani-owned and controlled. Business WeekInternational Editions, 4 Determine the market for PlasDek b. (1999, June 21), Spotlight on Oman : A star isborn on the Arabian sea...but how fast will change come? Specifically, Oman is a hot climate and has minimalrainfall. The implication of this is that we must explore the entire marketplaceof Oman, the business climate, the import restrictions, and finally, theconstruction market (both commercial and residential) in Oman. In addition, goods imported to Oman onIsraeli-owned or operated ships are subject to refusal at the border.Certain other goods which violate Islamic law (including literature deemedpornographic) are not allowed for import (Symposium, 1996). Foreign visitors are expected to remain sensitive to theIslamic culture, and not dress in a revealing or provocative manner,including the wearing of sleeveless shirts and blouses, halter tops andshorts. Box 684 - MuscatPostal Code 113Sultanate of OmanTEL: (968) 7 2-233, FAX (968) 7 1-4 9/795-266 Ministry of Defense This agency makes sure that the suggested product for import does notpresent a security risk.P.O. Agents and agencies also must be members inthe Oman Chamber of Commerce and Industry, and register with the Ministryof Commerce and Industry (Omanet). What is Oman? In addition, other Gulf state producers typically offerhigher subsidies for industry than Oman, creating similar industries andmaking competition difficult. Already a summer resort for Omanis, other Gulf Arabs, and small butincreasing numbers of European and Far Eastern tourists. In general, the agreements include * Duties, rights, responsibilities, and liabilities for both theexporting company and the Omani agent. Companies withexpertise in designing and developing a tourism infrastructure andcompanies experienced in tourism marketing should find business in Oman@(Paramanand, 1999, 4). AThanks to its location just24 km away from the busy Red Sea trade route, Salalah is on course to grab25% of the gulf, South Asian, and East African trans-shipment business bythe end of this year. HOW TO EXPORT PLASDEK INTO OMAN What is PlasDek? The major obstacle to exporting PlasDek to Oman is the country's smallpopulation and resulting small domestic market. Oman levies no withholding tax, and depreciation on capital goodswhich are non-research/scientific range between four and 33.33 percent. Corporate taxes for firms with no Omani participation range from fiveto 5 percent and are determined on a progressive scale. Oman was originally called Muscat and Oman. AThis developmentwill require roads, hotels, recreation facilities, and, in some locales,desalination plants and power generation equipment. For firmswhere Omanis own a minority interest, the tax rate is 2 percent(Symposium, 1996). Businesses which do not have a permanent status in Oman are not taxedon corporate income. Although there is no primarylisting for construction projects, the page ends with this statement thatdoes suggest a great deal of construction going on. A long history of rule byother lands, including Portugal in the 16th century, ended with the ousterof the Persians in 1744. Since PlasDek is made from plastic,and plastic is made from petroleum, this assessment may be waived. Exacerbating this problemis the lack of a modern, high value consumer market, particularly beyondthe capital area. Business Culture in Oman Business dealings in Oman are conservative, and the art of negotiationis important. Is the product suitable? Box 113 - MuscatPostal Code 113Sultanate of OmanTEL: (968) 312-6 5, FAX: (968) 7 2-521 Ministry of Development This ministry coordinates all joint ventures for construction and is agood source for information on building supply agents.P.O. Salalah could become one of the world's top 1 portsin total volume handled and capture 3 % to 35% of the trans-shipmenttraffic in the next decade@ (Paramanand, 1999, 4). * It is flexible and suitable for flat roofs. www.omanet.com www.sultanateoman.com Paramanand, B. * Exporter-agent disputes are arbitrated by the Authority for theSettlement of Commercial Disputes. The product is a flexible material for flat roofs with superiorresistance to leaks. Without much rain, the possibility of leaks is not a majorselling point. PlasDek should be a suitable product for sale tothe construction companies that will be doing that building. Oman requires three copies of the certified and legalized commercialinvoice, a bill of lading (or air waybill), a certificate of origindeclaring the country of origin and describing any foreign content of theproduct, and in some cases an insurance certification (Omanet). How Does the British Company Export to Oman? Protective tariffs have been established for a number of goods whichcompete with local industries. These ministries are: Ministry of Commerce and Industry This Ministry maintains records on all construction projects andcoordinates all purchases of construction materials by the Oman government.It=s contact information is:Ministry of Commerce and IndustryP.O. Since PlasDek=s primary sales point as given in the class handout isits ability to resist leaking, the last two salient points mentioned abovemust be considered. These are highly detailed and all followstrict Omani law. These include...development of an infrastructure forincreasing tourism to the Sultanate@ (ABusiness Opportunities, 1999) A great deal of projected growth (and therefore an increase inconstruction) is at the new port of Salalah, which has been co-sponsored byshipping companies and the Oman government. In general, the tax system is geared to benefit residents of Oman byextending special tax privileges to companies which have a substantialamount of participation from Omani nationals. Where We Want to Go Our primary goal is to a. AIn addition to the oil and gas sectors, the areas with the greatestcommercial opportunities, there are other sectors in Oman with potentialfor exporters. Firms having Omaniparticipation are taxed as follows: * Firms with a Asubstantial amount@ of Omani participation, 3 percent; * Firms with a majority of Omani participation, 2 percent; * Firms with full participation, no tax Corporate taxes for joint ventures between Omani and foreignfirms where Omani firms own the majority interest are 15 percent. According to the Omani website, taxation is conservative in Oman,because many of the government's revenues are realized through oilrevenues. Islamic ideals are strong in Oman and provide the conservativefoundation of Oman=s customs, lawsand practices. Almost 1 billion dollars US has been budgeted for tourist development,particularly in Dhofar province, and its principal town, Salalah. Box 55 , P.C. Oman's trade and investment regime reflects fiscal, social and otherpriorities which sometimes conflict with industrialization.
If this paper is not what you are looking for, you can search again:
or
Click here to request an essay written just for you.
|
|
|
