Guide for Canadian Exporters to the Turks and Caicos Islands

Table Of Contents

1. Location & Geography
2. Economy & Foreign Trade
3. Doing Business In The Turks And Caicos
4. Customs & Regulations
5. Your Business Visit To The Turks And Caicos
   
6. Appendix - Useful Addresses

I. Location & Geography

The Turks and Caicos Islands is 193 square miles or 500 square km, and its capital is Cockburn Town which is located in Grand Turk. The Turks and Caicos Islands comprise two groupings - the Turks Islands and the Caicos Islands, lying at the southern end of the Bahamas chain. The groupings are separated by the Turks Islands Passage, a 22 mile-wide, deep-water channel. Only eight of the 30 islands are inhabited.

The Turks Islands to the east of the passage are surrounded by a bank of reef. Grand Turk (seven miles long by a mile and a quarter) is the administration centre for the dependency. Salt Cay is smaller. Six cays are uninhabited. The Caicos Islands lie in a triangular shoal some 58 miles long on its northern side by 56 miles on its western and eastern sides. There are eight major islands: Salt Cay, Grand Turk, South Caicos, East Caicos, Middle Caicos, North Caicos, Providenciales and West Caicos.

Climate

The average year-round temperature in the Turks and Caicos Islands is approximately 83 degrees (83º). The hottest months are usually in September and October when temperatures can reach highs of 90º to 95º, however, the heat is tempered by the easterly trade winds, which keeps the weather comfortable.

Local Time

The Turks and Caicos Islands is on Eastern Standard Time (EST) and Daylight Savings Time (DST) is observed from April to October.

Population

The 1999 provisional figures for the Turks and Caicos Islands population was an estimated 24,000, with an average growth rate of 3.77%.

Principal Cities

Providenciales is now the business and tourism centre of the Islands although Cockburn, the capital, located in Grand Turk remains the administrative and government centre for the Islands. There are other small islands, some of which are uninhabited.

Language/Adult Literacy

English is the official language of the Island.

Religion

Christianity is the main religion practised in the Turks and Caicos Islands.

Voltage

Domestic electricity is supplied at 110 volts, 60 cycles.

Electricity

Electricity services are provided by private companies to all inhabited islands. Turks and Caicos Utilities provides electricity to Grand Turk and Salt Cay, and Atlantic Equipment and Power and PPC Ltd., (a sister company of Atlantic Equipment and Power) supplies South Caicos.

Business Hours

Business vary but generally is from 8:30 a.m. - 5:00 p.m. Government ministries are open from 8:00 a.m. - 1:30 p.m. Monday to Thursday, and 8:00 a.m. - 1:00 p.m. on Fridays.

A list of the Turks and Caicos Islands fixed and moveable public holidays for 2001 is provided below:

Government

The Turks and Caicos Islands is a British dependency. The Governor represents the Head of State, the Queen of England, and is responsible for foreign affairs, internal security and defence. The Executive Council is chaired by the Governor and includes 6 ministers, the Chief Secretary, the Financial Secretary, and the Attorney General. The Legislative Council has 13 elected members from 5 constituencies, and 2 nominated members. Elections to the Legislative Council is held ever four years.

The main political parties are the Progressive National Party (PNP), and the People's Democratic Movement (PDM), which were formed in 1975 and 1980 respectively. A third party, the United Democratic Party, was formed in 1993 by Wendal Swann, a former PDM deputy leader. The 1999 elections saw the PDM winning its first seat in the former PNP.stronghold of South Caicos. The PDM obtained 52.2% of the vote, and the PNP 40.9% with the remainder going to independents.

International Relations

The Turks and Caicos Islands is a member of the Caribbean Development Bank (CDB), and an associate member of CARICOM. The United Kingdom (UK) through the Governor has responsibility for international relations, defence, international security and policing.

II. Economy & Foreign Trade

The Turks and Caicos Islands are a small United Kingdom (UK) dependency which relied historically on the export of salt. Currently, the economy depends on tourism, customs revenue and offshore financial services, each of which have registered substantial gains in recent years. Providenciales is now the business and tourism centre of the Islands although Cockburn, the capital, located in Grand Turk remains the administrative and government centre for the Islands.

In the past few years rapid economic growth in the order of 15-20% annually has been taking place in Providenciales. A consequent migration of commercial activity and population away from Grand Turk is of concern to the Government.

Economic Sectors

Tourism is one of the country's major earners, with visitors primarily from the United Kingdom (UK), United States of America (USA) and Canada. In 1999 visitors from Canada totalled 7,200 with 10,100 for the first quarter of 2000. Approximately 20% of the population is involved in agriculture and fishing. Conch and lobster are the main merchandise export earners. Agriculture is limited to the growing of vegetables and citrus fruit on the Caicos Islands.

In the manufacturing sector, handicrafts are produced for the tourism trade, and there is limited activity in the semi-processing of imported rice for re-import to the European Union (EU), benefitting from the Lomé Convention. This operation is done by Columbus Foods, a subsidiary of BHI Belize. However, the company had to reduce its activity in early 1997 whenthe EU imposed a restrictive quota on rice imports from African, Caribbean and Pacific (ACP) countries via the Overseas Countries and Territories (OCT) regime.

The only significant activity in the construction sector is in new hotels and commercial buildings. Johnston Construction, and international company owned by the BHI Corporation and based in Turks and Caicos Islands, quarry sand and rock for the local industry.

Major offshore financial services are company registration, trust business and insurance. The number of registered companies in 1999 totalled over 3,000, and Government income from company registration totalled over US$2.8 million. There are four (4) commercial banks including Bank of Nova Scotia (BNS) which has two branches, and Canadian Imperial Bank of Commerce (CIBC) which opened a branch in Providenciales in 1999.

There is an estimated 2,000 Canadian contingent in the Islands, and the level of Canadian investment, while relatively small, appears to be growing. Canadians have private ownership of residential properties, and a number of Canadian firms have an interest or presence in the Turks and Caicos Islands, such as: The Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), Provo Building Supply, Provo Power, McLean McNally - the largest law firm in Turks and Caicos Islands, and RBC Dominion Securities Global Inc. In addition, Pagebrook Inc., a Canadian development company, has plans to build a major tourist complex and deepwater port in East Caicos Island, with a view to spending TCI$ 350 million for the 1st Phase.

External Trade

The Turks and Caicos Islands necessarily imports virtually all its requirements, primarily from Southern Florida and it represents a small niche market for Canadian suppliers for a range of.consumer products as well as some machinery and equipment. For certain major works, funded mainly by the UK Treasury, there is a natural tendency to look first to UK suppliers. The major trading partners are the UK and the United States (US). Bilateral trade between Canada and The Turks and Caicos Islands is small but has been growing. Canadian exports to the Islands for 1999 totalled C$2.36 million and included electrical machinery and furniture while imports were C$1.82 million and included clocks/watches and textile products.

The following table lists the major Canadian merchandise exports to the Turks and Caicos Islands for the period January - October 1999/2000:

III. Doing Business In The Turks And Caicos Islands

Opportunities for Canadian Goods and Services

The Turks and Caicos Islands rely heavily on imports, as almost all of the Island's requirements for capital and consumer goods and fuel are imported. There is, therefore, a good market for competitive Canadian exporters. As represented in the previous table, major merchandise imports include machinery, clocks and watches, and textile articles.

Currency/Exchange Controls

The Turks and Caicos Islands has used the US$ since 1973.

IV. Customs & Regulations

Import Duties

There are no direct taxes either on income or capital gains for individuals or companies, there are no exchange controls, and there are still guarantees against the future imposition of direct taxes for exempted companies only. Indirect taxation is restricted to customs duties, stamp duties (land transfer tax), accommodation taxes, departure taxes, food & beverage taxes, and payroll tax for pensions/disability. There are user fees, such as company registration fees, licensing fees, etc., similar to other jurisdictions. These collectively represent the core revenue for the government.

Visitors may bring in duty free, for their own use, one carton of cigarettes or cigars, one bottle of liquor or wine and some perfume.

V. Your Business Visit To The Turks And Caicos

When to go

The Canadian High Commission in Kingston, Jamaica, W.I., has responsibility for the Turks and Caicos Islands. You may wish to advise/consult well in advance with the Commercial Division when planning your first business visit to The Turks and Caicos Islands. Inform that office of the purpose of your visit and include several copies of any product literature you might have. It would also be helpful if you compute in advance the cif or fob prices on at least a part of your product range. With this information, the staff of the Commercial Division, would be more than pleased to assist you with your arrangements.

How to get there

Air: There are three international airports - on each on Grand Turk, Providenciales, and South Caicos. There are also domestic airports on all the inhabited islands.

Sea: There are main ports at Grand Turk, Cockburn Harbour, South Caicos, and Providenciales. Freight may be transshipped in Miami.

Road: There are approximately 340 miles (548 km) of roads in the Turks and Caicos Islands.

Internal Transportation

The Turks and Caicos Islands is small and easy to commute, and driving is on the left-hand side of the road. Taxis, bicycles and vehicles are available, and a valid driver's license is required when renting vehicles. The basic taxi fare is approximately US$2 but it is advisable to ascertain the fare before starting your journey.

Accommodation

There are hotels in Grand Turk, Providenciales, North and South Caicos, Salt Cay and Pine Cay. A room tax of 9% and service charge of 0-15% is applicable.

Entry and Immigration Procedures

A departure tax of US$15 is applicable. No departure tax is levied on children under 12 years of age.

Medical Services

There are no endemic tropical diseases in Turks and Caicos Islands, and there is a good choice of health care services available. In cases of medical emergencies, patients are flown to the hospital on Grand Turk for treatment or surgery or may be sent to the full-service hospitals in Nassau or Miami via air ambulance.

Dress

Business attire is usually: Shirt and tie for men, with jackets being worn for official functions. Suits and dresses for women.

Communications

Cable and Wireless is the local telephone provider. Credit card calls can be made or phone cards can be bought for phone booth calls.

Media

Newspapers: There are no daily newspapers but the Turks and Caicos News and the Free Press are published weekly. Magazines: An international tourist and business magazine, entitled The Times of the Islands, is published quarterly. TV/Radio: There are a number of cable tv channels including 2 French Canadian channels. Radio Turks and Caicos and Provo FM Radio are the 2 prominent radio stations. There are other music channels as well as one French language channel on 90.5.

Illegal Items

Possession of weapons, spear guns, Hawaiian slings, controlled drugs and pornography are illegal.

Appendix

Useful Addresses

In Canada

Department of Foreign Affairs and International Trade (DFAIT) Canada
Latin America and Caribbean Bureau (LCR)
Lester Pearson Building
125 Sussex Drive
Ottawa, Ontario, Canada
K1A OG2
Tel: 613-943-8807
Fax: 613-944-0760

The British High Commission
80 Elgin Street
Ottawa, Ontario, Canada
K1P 5K7
Tel: 613-237-1530
Fax: 613-237-7980

In Jamaica

Canadian High Commission
Commercial Division
3 West Kings House Road
P.O. Box 1500
Kingston 10, Jamaica, W.I.
Tel: 876-926 1500
Fax: 876-511 3491
Email: kngtn-td@dfait-maeci.gc.ca
Web: www.dfait-maeci.gc.ca/jamaica

In the Turks and Caicos Islands

Turks and Caicos Islands Customs Department
Grand Turk
Turks and Caicos Islands, BWI
Tel: 649 946 2993/4
Fax: 649 946 2887
Mr. Clinton Wilson - Collector of Customs

In Providenciales

Bank of Nova Scotia
PO Box 15, Town Centre Mall
Providenciales
Turks and Caicos Islands, BWI
Tel: 649 946 4750
Fax: 649 946 4755
Mr. Randy Jago - Representative

Canadian Imperial Bank of Commerce (CIBC)
Leeward Highway, Providenciales
Turks and Caicos Islands, BWI
Tel: 649 946 5303
Fax: 649 946 5325
Mr. Ron Fraser - Representative

Providenciales Chamber of Commerce
c/o The Bamboo Gallery
Downtown Providenciales
Turks and Caicos Islands, BWI
Tel: 649 946 4748
Fax: 649 941 5510
Email: bamboo@provo.net
Web: www.provo.net/chamber
Mr. Titus DeBoer - Executive Director & Chairman

Providenciales Customs Department
PO Box 206, Providenciales
Turks & Caicos Islands, BWI
Tel: 649 946 4241
Fax: 649 946 4453
Mr. Terry Salver - Collector of Customs