Doing business

(Last updated: 05 Nov 2008)
 

Business opportunities

Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the left side of this page).

In conjunction with the market profiles, the Opportunities Online portal may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, identified by our overseas network to Australian businesses.

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business tips

As in the Arab countries the traditional lifestyle of the Lebanese revolves strongly around the family, socialising and hospitality. Western influences, mainly French and American, have given the country a cosmopolitan facade, mostly in the main cities.

Outside the cities, especially in the mountains, people retain the old customs and traditions. The Lebanese people, despite being ethnically and religiously diverse because of the country’s long history of conquest and assimilation, are friendly and hospitable.

They are with foreigners’ ways and dress and although sleeveless tops, miniskirts and shorts are acceptable in Beirut, the rest of the country is more traditional and modest dress is recommended. This is particularly necessary when visiting churches, mosques and other religious places.

Please also note:

Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Single-column tariff based on the CCC Nomenclature. Preferences granted on a range of imports from some Arab countries and the EEC. Duties are mainly ad valorem assessed on the CIF price. Specific rates may be levied on the actual net, half-gross or gross weight, or on volume. Exemptions apply to temporary admission, industrial warehouse status, and free zone entry.

Customs authority contact details:

 
President du Counseil Superieur des Douanes Libanaises
Administration des Douanes
Rue Verdun Beyrouth Liban
Beirut
Tel: +961 1 867 962
Fax: +961 1 630 731

Beirut Chamber of Commerce and Industry
PO Box 11801
Beirut
Tel: +961 1 353 390
Fax: +961 1 865 802
Email: anasr@ccib.org.lb

Non-tariff barriers

Import restrictions

Some goods such as firearms, munitions, and some agricultural products need an import license from the appropriate government authority. The validity period is six months, although extensions may be granted.  All other permitted goods are free of licensing. Import licensing, also extends to sanitary ceramic wares, insulated electric and telephone wires and cables made of copper.

Some items are prohibited for health, social or security reasons. Prohibited all year round are products including:

• citrus fruits
• apples
• olives
• olive oil
• peanuts

Prohibited during certain times of the year are products including:

• squash
• eggplant
• green beans
• watermelons
• peas
• peaches
• apricots

Registration and import of new medicines, unless endorsed by the Minister of Public Health, are prohibited. No exchange restrictions; readily available from authorised banks.

Theoretically adheres to the Arab League Boycott of Israel, although boycott enforcement is selective and rare.

Product certification, labelling and packaging

Labelling

Hay and straw used in packing may not be imported from infected areas. Special regulations apply in respect of the packaging used for colouring materials used in food and beverages.

Outer containers should bear consignee's mark and port mark and should also be numbered (to accord with the packing list) unless their contents can be otherwise readily identified. Merchandise must show the country of origin.

Use of English is acceptable but for added safety, bilingual or even tri-lingual language (Arabic and French) labelling is advisable. The following must be provided:

• identification data
• manufacturer's identification
• product information
• standard quality disclosures
• ingredients
• date of manufacture
• date of expiry (no goods are permitted with an expiry date of less than six months)
• dating must be in clear figures, not in code

Other general information:

• Food and medicines must be clearly marked, stamped, branded or labelled, to indicate the country of origin.
• Special requirements for eggs and frozen poultry.
• Agricultural chemicals are subject to specific regulations regarding marking and labelling.
• Pasta products are restricted to packet sizes of 350gm, 500gm, and 1kg.
• Canned and preserved foods have specific labelling requirements

Special certificates

A health certificate issued by the approved authority in the country of origin must accompany all imports of ruminating animals, meat and meat products. In Australia this is usually the Australian Quarantine and Inspection Service, Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or relevant state department of agriculture. The certificate must be presented to the Lebanese Consulate for legalisation.

Livestock require the usual sanitary certificates, together with the official veterinary certificates stating that they are free from foot and mouth disease and that they came from an area free from that disease. Meats and ruminant animal products require similar veterinary certificates.

Plants and seeds require phytosanitary certification issued by the approved authorities.

Second-hand clothing imported for re-sale must be accompanied by a fumigation certificate.

Methods of quoting and payment

Quotations in US dollars, C&F or CIF Beirut.

Payment by letter of credit required for first transaction. Cash against documents or sight draft up to 180 days may subsequently be permitted.

Companies are advised to use irrevocable letters of credit or payment in advance, at least until a stable relationship has been established.

Companies should also avoid putting up cash against documents and be aware that packaging and import description discrepancies can lead to payment default. 

Documentary requirements

Pro-forma invoice

May be requested by importer.

Commercial invoice

No prescribed form.

Number of copies will be specified by importer. Lebanese customs require two copies, which may be prepared in either French or English.

Must contain the following signed declaration: 'We hereby certify that the present invoice is authentic, that it is the only one issued by us for the goods mentioned therein, that it gives their exact value without deduction of any payment on account and that they are exclusively of ........... origin manufactured by ourselves (or name of the producing company).'

Must give a full description of the goods and all details to CIF value.

Must be certified by an approved organisation and then submitted to Lebanese Consulate for legalisation.

All invoices relating to medical, chemical or pharmaceutical products should be certified by the manufacturer to the effect that the products covered by the invoice are in fact produced by that manufacturer (see 'Public health requirements').

Invoices for patent medicines must show retail selling price in country of origin and a declaration of authenticity. This must also be certified by an approved organisation.

Goods not accompanied by the correct documentation are subject to fines.

Certificates of origin

The certificate of origin is required for all goods and must show:

• the country of origin
• place where goods were manufactured
• name of manufacturing firm

It must also contain the following declaration: We hereby certify that the present certificate is authentic, that it is the only one issued by us for the goods mentioned therein, that it gives their exact value without deduction of any payment on account and that they are exclusively of ...... (country of origin) origin manufactured by ourselves (or name of the producing company).

It must be issued by an approved organisation (see 'Guidelines', section 2.3) and submitted to Lebanese Consulate for the certification of authenticity of documents.

Bill of lading

To Order bills are acceptable. Number of copies is usually specified by the importer. The bill must include a certification that the vessel is not blacklisted by the Arab-Israel Boycott Committee and that the vessel will not be calling at an Israeli port during the voyage. Shipping companies have a standard clause on the above, which they will insert.

Public health requirements

Animals and animal products are subject to health examination on arrival (see also 'Special certificates'). Cattle must be inoculated against anthrax.

Manufacturers of pharmaceutical, medical, and chemical products are responsible for ensuring that their products are fit for use, and fulfil all requirements necessary to permit their free sale in the country of origin (see 'Commercial invoice'). Pharmaceuticals, drugs and medical preparations must be registered by the importer, and the registration and import of new medicines, with a few exceptions, is now banned.

Cyclamic acid, cyclamic acid salts and any products containing them are prohibited from import.

Import of saccharin and saccharin salts in powder or other pharmaceutical forms is subject to special licensing by the Drugs Department of the Ministry of Public Health.

Whiskey must be covered by a certificate from the distiller attesting to origin.

Special requirements govern the entry of milk prepared as baby food. The import of prepared babyfood containing oestrogen is prohibited (by order of the Lebanese Minister of Economy and Commerce).

Colza-oil, seed and seedcake are prohibited from import.

Insurance

A number of companies provide insurance for short-term credit to guard against non-payment. The importer sometimes arranges insurance. If arranged by exporter, insurance must be with company having no Israeli connections.

Taxation

Taxes include:

• Municipal tax of 3.5 per cent collected at time of customs clearance
• Stamp tax applies to all imports (except gold and banknotes) at three Lebanese pounds per thousand of the value of the goods
• Both a specific municipal and consumption tax levied on petrol and kerosene
• Specific supply tax on sugar and sweets
• Sugar tax on all products with a sugar content exceeding five per cent
• Fiscal tax on all toilet preparations containing alcohol

Import surcharges are levied on a wide range of consumer goods at varying rates:

• A surcharge of 10 per cent of the applicable import duty is levied on specified textiles and garments.
• Surcharges at varying rates are levied on motor vehicles (35 per cent or 60 per cent), imitation jewellery and watches (seven per cent), alcoholic beverages and specific oil-seeds, and tomato sauce.

Tax exemption for approved projects

Austrade works in conjunction with the Australian Taxation Office ('ATO') to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 ('Tax Act').

Section 23AF should assist the international competitiveness of Australian companies and governmental organisations competing to win international tenders. Further information is available.