Reaching the consumers

Marketing opportunities

Consumer behavior

Guatemalan consumers are very brand-sensitive; American brands are especially held in high esteem.  They are sensitive to the purchase price but also to the after-sales service.  There is no specific law that imposes a requirement for the existance of an after sales service for the country's companies but they practically all have them.

Consumer profile and purchasing power

Guatemala has wide social and regional gaps.  The profile of the consumer varies a lot depending on whether he lives in a big town or in the countryside. His social class and income level define the manner of his spending.  Approximately 56% of the population is under the poverty line.

Consumers associations

Consumer assistance (Spanish only)
National quality system (Spanish only)

Main advertising agencies

Guatemalan Union of Publicity Agencies (Spanish only)

Distributing a product

Market shares

La Fragua and Almacenes Paiz

Organizations in the retail sector

Association of Franchises

Market access procedures

International Conventions

Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

Main International economic cooperation

Guatemala is part of the FTAA: Free Trade Area of the Americas, as well as the Central-American Common Market 

Non tariff barriers

Guatemela's import regime is fairly liberal. All food industry products have to be registered with the Registration and Control of Foodstuff Department (Ministry of Health). The labelling has to mention all the ingredients, the registration number and the use by date.  Pharmaceutical products have to have a Ministry of Health "sanitary inscription" before they can be commercialized in Guatemala.

Customs duties and taxes on imports

5.8%

Customs classification

Guatemala uses the Harmonised Customs System. The customs duties are calculated Ad valorem on the CIF value. Customs is managed by the Ministry of Finance (Spanish only). Guatemala applies the Central American Tarif schedule (SAC) in the context of the Central America-European Union Agreement (Guatemala, Salvador, Honduras, Nicaragua).  The SAC has set a customs ceiling of 15% and a minimum of 0%.  Guatemala, Honduras and El Salvador have more or less eliminated customs duties between their countries.  Industrial products and equipment goods not produced in the agreement countries are mostly taxed at 0%.  To find out about customs in Guatemala, refer to the Mininstry of Economy of Guatemala. (Spaninsh only with some documents available in English).

Import procedures

Guatemala uses the Harmonised Customs System. The customs duties are calculated Ad valorem on the CIF value. Customs is managed by the Ministry of Finance (Spanish only). Guatemala applies the Central American Tarif schedule (SAC) in the context of the Central America-European Union Agreement (Guatemala, Salvador, Honduras, Nicaragua).  The SAC has set a customs ceiling of 15% and a minimum of 0%.  There is however, a certain amount of flexibility when applying the said agreements as much on the validity date of the harmonisation as on the coverage. Guatemala, Honduras and El Salvador have more or less eliminated customs duties between their countries.  Industrial products and equipment goods not produced in the agreement countries are mostly taxed at 0%.  To find out about customs in Guatemala, refer to the Mininstry of Economy of Guatemala. (Spaninsh only for the documentation on SAC ).

Importing samples

It is allowed to import samples which do not have commercial value. The importer has to show documentation on the product with a price estimate of the product.  When going through customs, the value of the sample will be determined and an import tax will be charged based on this value.  Refer to the importing samples documentation on the SAT.

For further information

SAT (Superintendencia de administración tributaria). Guatemala customs information website

Organizing goods transport

Main useful means

The road network is in the middle of expansion. It is becoming modern and allowing for a much wider capacity of goods circulation: Of note is the price of fuel in Guatemala which is much cheaper.  The railroad network counts for only 800km of tracks and is highly inadequate. It is only used to move agricultural products towards the departure port:  The 5 main ports are: Santo Thomas de Castille for containers; Puerto Barrios on the atlantic, Puerto San Jose for liquids, Puerto Quetzal for grains and Champerico for peaches.  Santo Thomas de Castillo is the most important port with regard to industrial merchandise volume.  Pueto Quetzal has the most modern equipment.  These two ports alone have a total of 80% of the maritime traffic.

Ports

National Port Commission of Guatemala

Airports

Guatemala Directorate of Civil Aviation
Mundos Maya international airport (Stanta Elena)

Sea transport organizations

CPN - Guatemala
Ministry of transports

Air transport organizations

Ministry of Communication, Infrastructure and Housing (Spanish only)

Road transport organizations

Ministry of Transports.

Rail transport organizations

Ministry of Transports.

Identifying a supplier

Type of production

- The primary sector represents 22.7% of GDP and increased by 2.4% in 2005 especially due to the increase in sugar and coffee prices, the main export products.  The agricultural industry's contribution to the total GDP has decreased in the past years but it still represents 50% of the export revenue and employs 1/3 of the active population.  The sector's drive hinges on its diversification towards the production of tropical fruits and vegetables.

 

- The service industry is the economy's driver.
- There has been a significant increase in telecommunications: 8.5% in 2005, this sector contributes 12% to the GDP.  The electricity sector has increased by 3.6% and it contributs 4.5% of the GDP.
- The construction sector had weakened some years ago due to investors lack of confidenfidence in the political regime: -4% in 2003 and -16% in 2004.  It started up again in 2005 with +2.7%.
- The Manufacturing industry represents 12.6% of the GDP and has had an increase of 2.7% in 2005.  With the Central American Common Market and the FTAA, Guatemala has at its disposition an advantageous market which it makes good use of.  With the establishment of maquilas ("in-bond" industries), the maquiladoras sector has become one of the most important sectors for the country.
- Guatemala also has a considerable and competitive chemical industry.
- Other important sectors are: the cosmetic, paper, metal products, construction materials and crystal industries.

In conclusion, the production structure of the Guatemalan market is oligopolistic, which tends to be a handicap for competition but which has the advantage giving the investors a large choice and the country is not dependant on a single sector.

Business directories

Guatemalan Investment Bureau.

Manufacturers associations of the main industries

VESTEX: Apparel and Textile industry

Trade Agencies and their representations abroad

Guatemala Chamber of Commerce (Spanish only)

Enterprises federation

Micro-enterprise Development Foundation (Spanish only)
Vice-Ministry for the Development of Micro-enterprises (Spanish only)
GUATEFONDO Private Equity Fund for Guatemalan medium companies