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1. PURPOSE
The purpose of this Export Opportunity Profile (EOP) is a cursory investigation into the potential for exporting power cable products from the KSA to various international market sectors.
It is hoped that this EOP will provide local manufacturers with direction indicators to potential export markets. The prospective opportunities identified in this EOP should be used by the local producers to spot suitable export markets for their respective products.
However, it is highly recommended that once the local companies have identified their respective export opportunities, they should undertake more detailed primary and secondary market research and any other suitable investigations to evaluate their specific potential, in an appropriate manner, in each/any of the overseas territories selected.
2. PRODUCT AND APPLICATION
Every cable that is designed to conduct an electrical current can be called “ electrical cable ” . There is, however, a rather fundamental difference between cable used to transport electrical energy, so called power cable (which is the subject of this report), and cable used to transport information, so called telecommunications cable . These are the two main groups of cable in use.
Only for practical purposes, a third category is created: the special cable . This category comprises cable that can be used for various applications, cable that does not fit clearly in the two main categories and cable designed for very special applications. Special cable is mostly manufactured in relatively small quantities.
Product Group
Power Cables:
Consists of Product Categories
Overhead lines
High Voltage cables
Medium Voltage cables
Low Voltage cables
Building wires
Power cable is used in the transmission and distribution networks that transport electric power from the generation facilities to the consumer. In the network we distinguish different kinds of cable for the various voltage levels. Practically all cables can be carried out as overhead line or as underground cables. The conductor material can be copper
(typical for European insulated cable systems) or aluminium (often applied in systems of
American origin and in overhead lines).

The products are used by electrical utilities companies (Saudi Electricity Corporation,
SEC), by desalination facilities united in SWCC and by customers that operate their own distribution network like e.g. ARAMCO and the Royal Commission for Jubail and Yanbu.
3. LOCAL MANUFACTURING ACTIVITIES
In respect to power cable products, there are 3 major producers in KSA. The indication of the currently available installed capacity (3 shift basis) for exports appears to be in the region of 24% of the estimated total installed capacity. The chart below provides estimates of local sales and exports for 2005:
Total Active
Factories
Total Installed
Capacity (Metal Ton)
Local Sales
(Metal Ton)
Exports
(Metal Ton)
Available Capacity
(Metal Ton)
Available Capacity (% of Installed Capacity)
3 177,000 95,554 39,441 42,005 24%
Total Installed Capacity – (Local Sales + Export Sales) = Surplus Installed Capacity Available for Export
177,000 – (95,554 + 39,441) = 42,005 metal tons)
From the table above it can be clearly seen that there is, and will be, substantial local installed capacity available to export. The KSA producers ’ range of power cable products should utilize the idle capacity to export to countries where a demand exists for these products.
4. HS CODINGS
The customs/tariff codes used for power cable products is indicated by the following 6digit HS (Harmonized System) Codes from Comtrade data:-
HS CODE
854411
854419
854420*
DESCRIPTION
Insulated winding wire of copper
Insulated winding wire, nes
Coaxial cable and other coaxial electric conductors
* Include other types of special cables
The above 6-digit HS Codes are internationally recognized codes that cover the range of power cable products produced in the KSA and elsewhere in the world. All countries are allowed to add extra digits (eight digits and above) to the Code to narrow the product categories down and for their own statistical purposes.
In respect to this EOP, it should be noted that the above HS Codes have been used to identify export opportunities for the KSA ’ s power cable products. In terms of import/export statistics, it should be noted that the UN Comtrade data is available only in
6-digits.

5. MAJOR IMPORTING COUNTRIES - INTERNATIONAL
The identification of the importing/exporting countries for power cable products, selected for this EOP, has been undertaken using the 6-digit UN Comtrade statistics for the year 2004. Knowing the main importing countries can provide (a) an indication of the market size in the particular target market, and (b) an indication of the existing competition from other exporting countries.
Since the cable industry works in ‘ metal tonnes ’ rather than ‘ total tonnes ’ (which are used in all trade statistical data), it is worth noting that ‘ metal tonnes ’ represent about 60% to
70% of ‘ total tonnes ’ . Hence if ‘ metal tonnes ’ need to be worked out in the following tables, this can be done based on the stipulated data. The main international importers for each code and source of imports are identified in the following tables. It is to be noted that, the total volume in the following tables listed in this section and the following sections represent the total volume of the top five countries only, where the total volume of the world/ regions is not readily available.
HS Code: 854411
COUNTRY VOLUME (kg) VALUE $
% SHARE
(VALUE)
FIVE TOP EXPORTING COUNTRIES
TOP FIVE WORLD IMPORTING COUNTRIES
1 China
2 Mexico
3 Hong Kong
4 USA
5 Germany n/a
2,364,876,917
51,432,489
38,528,081
46,786,586
569,697,906
255,153,259
223,711,948
175,869,388
165,731,000
19.8%
8.9%
7.8%
6.1%
5.8%
S. Korea, Taiwan, Japan, Malaysia, Thailand
USA, Canada, S. Korea, Japan, Malaysia
China, Japan, Taiwan, Malaysia, Thailand
Mexico, Canada, China, Italy, Germany
Italy, Switzerland, Austria, France, Spain
6 Others
TOTAL
1,486,568,624
2,501,624,073 2,876,732,125
51.7
100%
Source: Comtrade
HS Code: 854419
COUNTRY VOLUME (kg) VALUE $
TOP FIVE WORLD IMPORTING COUNTRIES
1 UK 5,748,360 41,920,933
2 Singapore
3 China
4 India
5 Malaysia
8,319,014 n/a
5,830,516
6,940,538
38,989,455
34,214,539
33,207,314
30,430,604
6 Others
TOTAL 26,838,428
295,656,164
474,419,009
% SHARE
(VALUE)
8.8%
8.2%
7.2%
7.0%
6.4%
62.3%
100%
FIVE TOP EXPORTING COUNTRIES
China, Norway, France, USA, Netherlands
Malaysia, China, Japan, USA, Thailand
S. Korea, Japan, Hong Kong, USA
Sri Lanka, Singapore, China, S. Korea, USA
USA, Singapore, China, S. Korea, Taiwan
Source: Comtrade

HS Code: 854420
COUNTRY VOLUME (kg) VALUE $
TOP FIVE WORLD IMPORTING COUNTRIES
1 USA
2 France
3 Germany
4 Mexico
5 UK
51,936,308
14,407,946
17,824,076
14,002,104,172
25,347,877
380,964,718
264,934,805
187,531,000
134,897,430
131,447,062
6 Others
TOTAL
1,668,668,557
14,111,620,379 2,768,443,572
% SHARE
(VALUE)
13.8%
9.6%
6.8%
4.9%
4.7%
60.3%
100%
FIVE TOP EXPORTING COUNTRIES
China, Mexico, Canada, Germany, Taiwan
Morocco, Spain, Portugal, UK, China
Czech Rep., China, Switzerland, Hungary, USA
USA, China, Japan, Canada, Taiwan
USA, China, Germany, France, Netherlands
Source: Comtrade
In the context of the above table, the data from the main importing countries indicates the size of the port market in each of the target countries together with details of the main countries supplying the import demand. For the KSA to enter these markets a concerted effort by local companies to export could enable them, over time, to enter these overseas markets and establish a market share. This would be subject to their prices being competitive and their distribution and after-sales service/support being able to meet local (wholesale/retail) needs and requirements.
However, to export products like power cables, two major considerations need to be considered: (a) to export a good, high quality product which meets the customer requirements of its intended markets and (b) to transport the product in a manner consistent with maintaining its quality and texture over a long period of time. The key to exporting products overseas is to ensure that appropriate transportation vehicles and logistical programs are in place to transport the products to the export market quickly.
6. MAJOR IMPORTING COUNTRIES - REGIONAL
The majority of major importing countries for power cable products are outside the
Middle East Region. Hence to enter these international markets, the KSA producer will need time and funds to: (a) identify local market requirements, (b) investigate the market potential properly, then (c) develop an export marketing plan that could be successfully implemented – based on the requirements of the target markets, and finally (d) set-up suitable operations and appropriate logistical support facilities in the selected countries.
While the exporter is developing his medium to long terms plans to potentially enter international markets, a short term development that can be more easily set up, is to expand into markets such as the MENA and the GCC as a whole. While the markets closer to home are relatively small, they nonetheless offer the exporter the potential to develop
Regional markets for the KSA ’ s power cable products, although in some markets there could be competition from local producers as well as other imports. The tables below, uses

UN Comtrade data for 2004 to identify the size of the import market in several nearby countries:
HS Code: 854411
COUNTRY VOLUME (kg) VALUE $
% SHARE
(VALUE)
TOP FIVE MIDDLE EAST & NORTH AFRICAN IMPORTING COUNTRIES
1 India
2 Turkey
3 Syria
4 Algeria
5 Tunisia
8,026,517
3,025,423
1,597,000
1,028,113
638,344
48,326,968
16,599,472
5,931,084
4,171,073
3,385,200
1.7%
0.6%
0.2%
0.1%
0.1%
FIVE TOP EXPORTING COUNTRIES
Malaysia, Japan, Sri Lanka, Nepal, S. Korea
Germany, Netherlands, Italy, Portugal, Austria
Turkey, Italy, Egypt, Greece, Other EU-25
Turkey, Spain, France, Italy, Iran
Italy, France, Spain, Turkey, Germany
6 Others (world)
TOTAL
2,798,318,328
14,315,397 2,876,732,125
97.3%
100%
Source: Comtrade
COUNTRY
VOLUME
(kg)
VALUE $
GCC IMPORTING COUNTRIES
1 Bahrain
2 Kuwait
3 Oman
4 Qatar
5 UAE
TOTAL
690,728 n/a
1,141,206 n/a
2,016,378
1,807,099 n/a
2,872,384 n/a
63,496,246
3,848,312 68,175,729
% SHARE
(VALUE)
2.7%
-
4.2%
-
93.1%
100%
TOP EXPORTING COUNTRIES SOURCE
KSA, UAE, Switzerland, China Kuwait Comtrade
India, UK, France, UAE, USA Comtrade
GOIC
HS Code: 854419
COUNTRY VOLUME (kg) VALUE $
% SHARE
(VALUE)
TOP FIVE MIDDLE EAST & NORTH AFRICAN IMPORTING COUNTRIES
1 India
2 Tunisia
3 Pakistan
4 Turkey
5 Morocco
6 Others (world)
TOTAL
5,830,516
314,760
251,836
79,031
227,624
6,703,767
33,207,314
4,974,553
968,448
833,248
515,590
433,919,856
474,419,009
7.0%
1.0%
0.2%
0.2%
0.1%
91.5%
100%
FIVE TOP EXPORTING COUNTRIES
Sri Lanka, Singapore, China, S. Korea, USA
France, Italy, Germany
China, Germany, S. Korea, USA, Switzerland
Italy, UK, Germany, Poland, Netherlands
Brazil, France, Italy, Portugal, China
Source: Comtrade

COUNTRY VOLUME (kg)
GCC IMPORTING COUNTRIES
1 Bahrain
2 Kuwait
3 Oman
4 Qatar
5 UAE
TOTAL
57,374 n/a
133,204
813,902
339,456
1,343,936
VALUE $
308,475 n/a
651,806
6,875,299
15,768,292
23,603,872
% SHARE
(VALUE)
1.3%
2.8%
29.1%
66.8%
100%
HS Code: 854420
COUNTRY VOLUME (kg) VALUE $
% SHARE
(VALUE)
TOP FIVE MIDDLE EAST & NORTH AFRICAN IMPORTING COUNTRIES
1 India 7,232,025 49,450,751 1.8%
2 Algeria
3 Yemen
4 Tunisia
5 Turkey
8,227,726
9,082,966
3,270,518
1,259,111
28,830,507
15,889,198
12,738,149
8,863,782
1.0%
0.6%
0.5%
0.3%
6 Others (world)
TOTAL 29,072,346
2,652,671,185
2,768,443,572
95.8%
100%
TOP EXPORTING COUNTRIES SOURCE
USA, Belgium, KSA, China, UK Comtrade
France, USA, India, Netherlands, UK Comtrade
Finland, S. Korea, UK, Singapore, USA Comtrade
GOIC
FIVE TOP EXPORTING COUNTRIES
China, USA, Thailand, UK, Germany
Lebanon, Spain, Indonesia, Germany, France
KSA, USA, UAE, Turkey, Canada
France, Greece, KSA, Germany, Italy
Germany, China, France, Italy, Belgium
Source: Comtrade
COUNTRY
VOLUME
(kg)
GCC IMPORTING COUNTRIES
1 Bahrain
2 Kuwait
3 Oman
4 Qatar
5 UAE
TOTAL
VALUE $
11,719,000 n/a
4,885,566
32,942,769
12,493,101
27,982,127 n/a
17,838,858
74,137,513
227,880,287
62,040,436 347,838,785
% SHARE
(VALUE)
8.0%
-
5.1%
21.3%
65.6%
100%
TOP EXPORTING COUNTRIES SOURCE
UAE, KSA, Kuwait, S. Korea, Turkey Comtrade
- -
UAE, Italy, KSA, India, France Comtrade
KSA, S. Korea, Oman, UAE, Kuwait Comtrade
GOIC
The previous tables, therefore, identify the major countries which are importing the HS
Codes under discussion and these countries, hence, become the major export market opportunities for KSA suppliers. Likewise, the major exporting countries identify those countries from whom KSA producers will experience competition.
Countries closer to home offer potential export opportunities for the local producers, but the respective market size for the Countries is relatively small in comparison to the major importers. However, this should not deter the local producer from entering nearby markets as this can: (a) help to iron out any initial export problems that the local exporter may experience due to implementation of his export delivery systems in the Regional markets, and (b) help the exporter to develop a good, working export marketing plan that can be tried out in the Regional countries, prior to being implemented in more distant

export locations. Using the appropriate transportation methods to maintain the quality of the product is important in terms of the exporting cycle, as well as being necessary for logistical purposes within the target country.
7. MAJOR EXPORTING COUNTRIES
On an international basis, the analysis of the UN Comtrade ’ s 2004 export statistics (6digit) indicate the main power cables exporting countries to be as follows:
HS Code: 854411
COUNTRY
VOLUME
(kg)
VALUE $
% SHARE
(VALUE)
FIVE TOP IMPORTING COUNTRIES
TOP FIVE WORLD EXPORTING COUNTRIES
1 USA
2 Italy
75,476,324
90,568,564
357,334,015
348,196,772
3 Germany
4 Hong Kong
5 Malaysia
60,137,793
45,480,462
42,908,963
325,598,000
203,934,970
194,037,370
6 Others (world)
TOTAL
1,676,951,798
314,572,106 3,106,052,925
11.5%
11.2%
10.5%
6.6%
6.2%
54.0%
100%
Mexico, Canada, Philippines, Hong Kong, China
Germany, France, Slovakia, Spain, Austria
France, UK, Slovakia, Czech Rep., Austria
China, USA, Japan, Taiwan, Germany
China, Hong Kong, Singapore, Indonesia, Thailand
Source: Comtrade
HS Code: 854419
COUNTRY
VOLUME
(kg)
VALUE $
TOP FIVE WORLD EXPORTING COUNTRIES
1 USA 15,598,646 106,375,471
2 Italy
3 Taiwan
4 Singapore
5 Israel
10,734,841 64,662,543 n/a
5,297,566 n/a
43,282,570
38,177,194
35,018,000
6 Others (world)
TOTAL
245,264,224
31,631,053 532,780,002
HS Code: 854420
COUNTRY
VOLUME
(kg)
VALUE $
TOP FIVE WORLD EXPORTING COUNTRIES
1 USA 56,278,458 420,352,079
2 Germany
3 China
4 UK
5 France
25,378,897 n/a
12,172,775
9,369,267
330,449,000
305,494,508
133,062,347
127,648,379
6 Others (world)
TOTAL
1,478,560,397
103,199,397 2,795,566,710
% SHARE
(VALUE)
20.0%
12.1%
8.1%
7.2%
6.6%
46.0%
100%
% SHARE
(VALUE)
15.0%
11.8%
10.9%
4.8%
4.6%
52.9%
100%
FIVE TOP IMPORTING COUNTRIES
Mexico, Canada, UK, Columbia, Armenia
USA, Switzerland, Germany, France, Romania n/a
Malaysia, Thailand, China, Australia, Hong Kong
USA, UK, Germany, Australia, Netherlands
Source: Comtrade
FIVE TOP IMPORTING COUNTRIES
Mexico, Canada, UK, Japan, China
Czech Rep., Italy, Russia, France, Austria
USA, India, Hong Kong, France, UAE
Sweden, USA, France, Germany, Norway
UK, Germany, Belgium, Spain, Egypt
Source: Comtrade

As KSA exports develop, they will tend to compete directly with the major power cables exporting companies and distributors from a range of exporting countries – near and far.
As exporting countries have usually established their distribution and sales networks in the respective markets, the local KSA companies should evaluate and understand how these countries and their respective companies have managed to carve a market for their respective producers and products.
This evaluation should assist the KSA exporter to identify what actions need to be undertaken to establish export markets for their own products. For the KSA to compete effectively and efficiently, a concerted effort by the local companies will need to be undertaken in a systematic way and possibly an initial start could be made by developing an effective working export plan.
An initial market size can be estimated from the main importing countries, whose import statistics provide a rough indication of the market size for imports within their respective markets. In the same manner, identifying the exporters to those markets will enable the local KSA producer to identify the countries that will be in competition with them in their respective export markets.
8. MARKET TRENDS – IMPORTS & EXPORTS
To provide a better insight for local producers of power cable products, the table below provide some historic information on world product trends. These can be utilized, in a general manner, to give some indication of likely future trends for the products.
HS
CODE
(in US$) 2000 2001 2002 2003 2004
CAGR*
%
854411 Imports 2,345,035,027 2,138,207,198 2,104,931,321 2,289,286,435 2,876,732,125
Exports 2,380,352,356 2,134,313,815 2,080,364,093 2,330,496,984 3,106,052,925
854419 Imports
Exports
482,218,972
559,778,428
416,165,484
493,627,486
401,798,100
454,159,412
485,663,749
470,962,117
4.2%
5.5%
474,419,009 -0.3%
532,780,002 -1.0%
854420 Imports 2,470,412,569 2,256,794,655 2,047,066,521 2,285,287,479 2,768,443,572
Exports 2,668,810,804 2,348,513,532
* Compound Average Growth Rate.
2,026,359,024 2,182,484,671 2,795,566,710
2.3%
0.9%
The compound average growth rate (CAGR%) provides an indication in relation to whether import/export trade is rising or falling. In the case of the above, HS Codes 854419 show a decline while HS Codes 854411 & 854420 show a steady growth.

9. ESTIMATE OF IMPORTER ’ S LANDED COSTS
An indication of average landed cost is provided to assist the local producer to gauge initial exporting costs to a particular country. These costs do not include duties/taxes or local distributor mark-ups. It should also be noted that many producers make a particular product in various quality grades and this is reflected in their final price for these products. While these producers may have a ‘ base ’ , ‘ medium ’ and/or ‘ high ’ price and/or quality levels, these price ranges cannot be easily identified from the trade data. The cost indications given in the charts below reflect only the average landed costs of all the goods in the HS Code categories under evaluation.
HS MAJOR REGIONAL IMPORTERS – AVERAGE LANDED COST $/Tonne
CODE Imports India Turkey Algeria Tunisia Morocco Bahrain Oman Qatar UAE
854411 World 6,020 5,490 4,060 5,300 - 2,615 2,520 - 31,500
854419 World
854420 World
5,700
6,840
10,550
7,040
-
3,500
15,790
3,890
2,260
-
5,410
2,390
4,900
3,650
8,450
2,250
46,510
18,240
Ave Cost
$/Tonne
8,215
12,450
5,975
This information should assist local KSA companies to ascertain, in a very general way, whether their respective products are likely to be competitive in the above identified export markets. Landed costs are normally based on CIF value - purely as a general guide, it is estimated that the difference between FOB and CIF costs is somewhere in the region of 10% to 15% of FOB.
10. TRANSPORTATION
The cost of road transportation to neighboring countries is dependent upon the type of goods to be transported, the weight/volume and the distance. An indication of average road transport cost to various surrounding countries, from Riyadh and Dammam of a 22 tonnes trailer are given as follows:
Country
GCC COUNTRIES
Bahrain
Kuwait
City
Oman
Qatar
UAE
Muscat
Salalah
Sohar
Dubai, Sharjah
Al-Ain
NON-GCC COUNTRIES
Abu Dhabi
Egypt
Lebanon
Syria
Yemen
Cost Per Truck (22 Ton) - SR
950
1,650 – 2,042
2,042 – 2,850
4,800
2,750
1,700
1,650
1,900
1,650
7,300
9,282
7,000
5,500
Cost Per Ton - SR
43.18
75.00 – 92.82
92.82 – 129.55
218.18
125.00
77.27
75.00
86.36
75.00
331.82
421.91
318.18
250.00

Average sea freight costs (CIF) could be assumed to be up to 10% to 15% of the FOB price of the products. However, the following tables provides ocean freights of 20 and 40 foot containers for some destinations.
Ocean Rate from KSA to Africa
To Africa
Ports
Port Sudan 850
USD$
20 Foot 40 Foot
1400
From / Jeddah
Mogadiscio
Cotonou
1500
3500
1900
4500
Ocean Rate from KSA to Indian Sub-Continent
To ISC (India Semi continent)
Ports
From / Dammam
Mumbai
Karachi
Colombo
425
20 Foot
USD$
650
40 Foot
425
700
650
1050
Ocean Rate from KSA to Europe
To Europe
From / Jeddah
From / Dammam
Ports
Hamburg
Rotterdam
Le Haver
Southampton
Hamburg
Rotterdam
Le Haver
Southampton
20 Foot
850
850
USD$
40 Foot
1100
1100
850
850
1050
1050
1050
1050
1100
1100
1400
1400
1400
1400
11. EXPORT/TRADE BARRIERS
There are a number of export/trade barriers that are identified below:
Company Specific Barriers

Lack of commitment towards new markets: factories probably fear the unknown that might face their products as well not dedicated enough to research for opportunities in other market. ECU believes encouraging local factories of the opportunities elsewhere to expand their sales is essential



Awareness of export opportunity : Current efforts done by local factories, including power cable producers, are not enough in endeavouring and testing new markets for positioning their products.
Market Specific Barriers
Lengthy export procedures : This problem area was felt across many exporting manufacturing sectors.

Custom duties/protection : High custom duties and non-custom fees represent important export barriers for Saudi exporters.

Availability of market information : Some countries lacks the official information released by reliable sources such as the government. To overcome such barrier, exporters are advised to do market research on those markets, which they believe that they might represent future export opportunities.

Saudi Embassies role : Major exporting countries in the world have succeeded by utilizing the existence of their embassies in the global market. Based on previous visits to countries, we found that the role of Saudi embassies have not been utilized well. Therefore, Saudi embassies need to improve and utilize their commercial attaché to the benefit of Saudi exporters by providing necessary secondary information.

Transportation cost: Due to the weight of the product types, the cost of shipping and handling reduce the price advantage of the KSA local producers in exporting markets against local producers.

Agent/distributor : Selecting an inactive and/or poor agent/distributor could bar the exporter from marketing their good properly and professionally in the target market and, thus, this could be a barrier.
12. TARIFFS/DUTIES & TAXES
Tariffs for the stipulated products vary considerably from country to country and the following charts identify the duty rates for the identified products in some of the sample countries. Additionally, the basis for the application of the tariffs and duties is also provided wherever possible.

COUNTRY
Algeria
Egypt
India
Jordan
Lebanon
Morocco
Turkey
HS
CODE
DESCRIPTION
854411
854419
Winding wire of copper of circular cross-section measuring between 0.55 mm and 1.18 mm and others
Other of circular cross-section measuring between 0.55 mm and 1.18 mm and others
854420 Co-axial cables and other co-axial electric conductors
Winding wire: Of copper : Coated Copper wire for meters
854411 coils, Other
854419 Other: Co-axial cable and other co-axial electric conductors
854420
Underground or maritime cables for voltage exceeding 132k.v,
Other
854411
854419
854420
Winding wire of copper, enamelled, others
Other : Asbestos covered, Plastic insulated, Rubber insulated,
Other
Co-axial cable and other co-axial electric conductors : Coaxial cable, Other
Winding wire of copper, paper insulated or other 854411
854419 Other, paper insulated, other
854420 Co-axial cable and other co-axial electric conductors
854411
854411
Winding wire of copper, unsheathed lacquered wire, not fitted with terminals, of a diameter (not including lacquer) of
0.10 mm or more but not exceeding 3 mm, other
854419
Other, unsheathed lacquered wire, not fitted with terminals, of a diameter (not including lacquer) of 0.10 mm or more but not exceeding 3 mm, other
854420 Co-axial cable and other co-axial electric conductors
Fils pour bobinages: En cuivre, à section transversale non circulaire, autres
854419 Autres, à section transversale non circulaire, autres
Câbles coaxiaux et autres conducteurs électriques coaxiaux,
854420
854411 câbles coaxiaux sous gaine de plomb, autres : isolés avec des matières plastiques même avec adjonction d ’ autres matières : pour branchement d ’ antennes d ’ appareils récepteurs de television, autres, isolés avec d ’ autres matières
Winding wire: Of copper: Lacquered or enamelled, Other
854419 Other: Lacquered or enamelled, Other
Underground and submarine cables (after having been
854420 insulated with material of a kind, armoured with a single wire or with several wires twisted together and, in addition, with tubes or plates of base metal), Other
NOMINAL TARIFF RATES
15%
15%
15%
2%
12%
5%
15%
15%
15%
0%
0%
30%
0% to 15% + 10% VAT
0% to 15% + 10% VAT
15% + 10% VAT
17.5% tp 50%
25% to 50%
25% to 50%
3.7%
3.7%
3.7%
Details of the additional taxes that need to be added to the tariffs are outlined in the following table:
COUNTRY
Algeria
India
Jordan
Lebanon
Morocco
Turkey
GENERAL TARIFF & DUTY TERMS FOR IMPORTS
(Additional Taxes to be added to the Nominal Tariff Rates)
Value Added Tax (VAT) of 17%
There are several taxes that generally total 20-25 percent. They are applied on CIF + duty.
Duty is applied on CIF value. Value Added Tax (VAT) of 13% applies on CIF + duty value.
Imports from KSA may be eligible for preferential treatment. Value Added Tax (VAT) = 10% on duty paid value. Municipal Tax = 3.5% of duty paid value. Stamp Tax = (a) LBP 51,000 if value of goods does not exceed LBP 5M, (b) LBP 73,000 if value of goods exceeds LBP 5M but does not exceed LBP 50M, and
(c) LBP 84,000 if value of goods exceeds LBP 50M. Duty rates are ad-valorem based on CIF value.
Stamp Tax – LBP 3.00/LBP 1,000 of the value of the goods.
There is a value added tax that varies between 0 and 20 percent depending on the product
For most goods there is an 18 percent value added tax applied on CIF + duty. For basic necessities and foodstuffs the rate is 8 percent. For electronics and some luxury items the rate is 26 percent

As of the current time, no duties are applicable between trade with the Arab League
Countries. Likewise there are no tariff barriers with the other GCC Countries. However, unofficial barriers are sometimes implemented at the borders which can hinder/delay the clearance and passage of goods. These are created through delays in clearance, implementation of clearance charges/fees, the need to change the ‘ power unit tractor ’ of
KSA transporters to a locally registered ‘ tractor ’ , etc.
13. DISTRIBUTORS & COMPETITORS IN THE POTENTIAL EXPORT MARKETS
In the international market, it can be quite difficult for local exporter to easily identify:
(a) their potential local competition and (b) possible local agents/distributors that they can work with in that target markets. Any exporter wishing to develop overseas markets will need to undertake initial primary and secondary market research to identify the relevant information that needs to be sought from that market. The short list below, identifying producers and distributors for power cable products, is an example of the information needed to identify and contact overseas agents who are dealing in the potential target markets. The list is in exhaustive, hence, only some local producers & distributors have been highlighted. This and further information can be obtained via the website www.kompass.com.
COUNTRY COMPANY ACTIVITY DESCRIPTION
Algeria
Egypt
Lebanon
Morocco
L ’ AVENIR SNC
Nord
Compagnie
(NAFCO)
Alcatel Egypt SAE
Sewedy/Arab Cables &
Electrical Industries
BICC Egypt
Africaine
Sarl
Liban Cables SAL
Modern Company for
Cables Industry SARL
Ifriquia Cables SA
Tumag Cables (Tumag
SA)
Producer
Producer
Producer
Producer
Producer
Producer
Producer,
Export
Producer
Producer
Wires & cables for electronic, electric wires, cables, insulated
Wires & cables for electronic, electric wires, cables, insulated
Wires & cables for electronic, electric wires, cables, insulated
Wires & cables for electronic, electric wires, cables, insulated
Wires & cables for electronic, electric wires, cables, insulated
Cables
Cables, electric wires, cables, insulated
Electric wires, cables, insulated
Electric wires, cables, insulated
CONTACT DETAILS
Zone Industrielle, de Garat Ettaam, 47133
Bounoura
Phone : +213 29 873092
Fax : +213 29 873078
Zone de Activite lot 29, 16001 Zeralda
Phone : +213 21 327087
Fax : +213 21 327088
Km 28, Alex. Desert road, smart village
Phone : +20 2 5395555
Fax : +20 2 5392344
1 st
, heavy Ind. Zone A1, part 2, 3/2, 10 th
of
Ramadan, sharkeya
Phone : +20 15 410081
Fax : +20 15 410080
Cairo/Alex. Road , Giza
Phone : +20 2 5390251
Fax : +20 2 5390256
Justinien Street, Sanayeh Sector, Beirut
Phone : +961 1 745749
Fax : +961 1 350042
Baawerta road, damour (chouf)
Phone : +961 5 601191
Fax: +961 5 601194
Bd Ahl loghlam-ex, c.t. 1015m, Sidi moumen, 20600
Casablanca
Phone : +212 22 753510
Fax: +212 22 753519
Rue Mohammed ben habib – ex f ang,bd A, 20250
Casablanca
Phone : +212 22 674891
Fax: +212 22 674890

Tunisia Tunisie Cables SA Producer
Wires & cables for electronic, electric wires, cables, insulated
N/A
Turkey
UAE
Altin Kablo Sanayi
ETK Kablo Sanayi ve
Ticaret AS
Abu
Factory
Dhabi Cable
Alan Dick Middle East –
Jebel Ali
Producer,
Export
Producer
Producer,
Export
Export,
Import
Wires & cables for electronic, electric wires, cables, insulated
Cables, electric wires, cables, insulated
Wires & cables for electronic
Wires & cables for electronic
Sair ZiyaPasa cad. Simsir sok. Erdede han, 34420
Istanbul
Phone : +90 212 2939293
Fax : +90 212 2490311
Osmangazi Mah. Bilali Habesi Cad. No:135
Samandira – Kartal
Phone : +90 216 3111034
81470 Istanbul
Fax : +90 216 3111419
PO Box 30331 Abu Dhabi, Bin Saqar Bldg., Najda
St.
Phone : +971 2 6218800
Fax : +971 2 6218822
PO Box 61120 Jebel Ali, R/A 6 & 7, Jebel Ali Free
Zone
Phone: +971 4 8818300
Fax: +971 4 8818292
14. CONCLUSIONS & RECOMMENDATIONS
In conclusion, the KSA has currently about 42,005 metal tonnes of surplus capacity of power cable products , which equates to a conservative export potential of around
$373 million (SR1,398 million). The aim of this report is to identify major importing countries for the power cable products, which could represent an export opportunity for
Saudi producers. The following are the main highlights of the report:

o The major importing countries for the power cables were: China, Mexico, Hong
Kong, USA, Germany, UK, Singapore, India, Malaysia and France. o The total value of all HS Code imports to these countries, in 2004, was in the region of $2,668 million. o The import data indicates an average international landed price for the various above HS Codes to be in the range of $8,880/tonne.

o The major exporting countries for power cables were: USA, Italy, Germany,
Hong Kong, Malaysia, Taiwan, Singapore, China, UK and France.
o The KSA exporter should further investigate these countries to ascertain how they have developed their export markets and what are their techno-commercial and financial parameters for exporting.

o Although the surrounding market is small, several KSA exporters have started to develop their export markets in these countries. o More effort needs to be undertaken by the local exporters to enable the KSA to become a major exporting Country to the surrounding Arab and non-Arab
Countries in the Middle East and North Africa.

In summary, while some exporting is being undertaken, more effort could be directed towards developing further export markets. It is believed that these markets offer promise to local producers and KSA companies are encouraged to undertake evaluation of these markets to assess their specific exporting potential.
Furthermore, the KSA producers are encouraged to contact local export insurance and credit institutions in order to utilize the available facilities for export credit and the insurance programs cover for higher risk countries. Additionally, the Saudi Export
Program (SEP), operated by the Saudi Fund for Development (SFD) in Riyadh, is in a position to assist potential KSA exporters to expand their export activities and assist them to increase their sales volumes to more countries while trying to minimize risk.
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