There are certain unique characteristics which Sudan enjoys because of its demographic composition and geographical location. It represents an Afro-Arab society and shares borders with nine countries. With an area of 2.5 sq. kms., the Sudan is the largest country in Africa. With 700-km long coastline on the Red Sea, it is virtually a traverse point for travelling across to the rest of the African continent. Shipping facilities at its ports cater not only to Sudan but also provide outlets for trade overland to a number of countries. Setting up of COMESA with 20 countries around Sudan and the organisation’s emphasis on eventually realising custom free transportation of commodities through the borders of the member countries is bound to further enhance Sudan’s importance as a trade hub for the region.

The prospects for a peace agreement to end the civil war between the Government of Sudan (GOS) and SPLM in southern Sudan have never been brighter. The ongoing peace process under the IGAD auspices supported by western countries such as US, UK, Norway and Italy, is moving ahead with a promise of a peace agreement in the first half of 2004. With the commencement of crude oil exports in 1999 and the possibility of return of peace and reconciliation, Sudan holds out bright prospects for exporters of machinery and equipment, manufactured goods, transport equipment, railway components, wheat and wheat flour, pharmaceuticals and finished petroleum products.

A peace accord will immediately result in an influx of foreign investment and inflow of multilateral and bilateral assistance, generating a great deal of economic and commercial activity in Sudan. EU has pledged to release $ 400 million as assistance to Sudan after peace agreement. It is therefore imperative that Indian companies explore economic and commercial possibilities in Sudan immediately. There is a great potential for Indian companies to participate in areas such as railways, shipping, automobiles, power generation, telecommunications, agricultural equipment, pharmaceuticals and IT. 

In the past about three years, India Sudan bilateral trade has grown by 100%. While Indian exports to Sudan for the year 1998-99 were Rs. 234.10 crores, for the year 2001-02 exports rose to Rs. 580 crores. India is the 6^th largest exporter of commodities to Sudan after Saudi Arabia, China, UAE, Germany and United Kingdom. The economic relations have witnessed a historic turn after GOI’s decision to invest US$ 750 million in the oil sector of this country with the ONGC Videsh Limited acquiring 25% of the shares of Sudan’s biggest oil consortium Greater Nile Petroleum Operating Company (GNPOC). 

The relations between India and Sudan got a new impetus with the visit of President A.P.J. Abdul Kalam to Sudan in October 2003. During the visit, Bilateral Investment Promotion & Protection Agreement (BIPPA), Double Taxation Avoidance Agreement (DTAA) and an MOU on Cooperation in the field of Information Technology were signed and a GOI line of credit of US$ 50 million to Sudan was announced. 

Some Indian companies from public and private sectors are now actively striving to register their presence in Sudan such as TCIL, ITI Limited, RITES, Konkan Railways, IRCON International Limited, Kirloskar Brothers, Kalpataru Power, Mohan Exports, Jaguar Industries, Angelique International and L&T. Entities like Mahindra and Mahindra and Eicher are also making efforts to enter the Sudanese markets. After a break of eight years, Tata buses are also likely to troop in shortly after resolution of some of the issues pertaining to past transactions. Maruti cars agency is also expected to be revived.

Sudan needs to import a wide range of products, from traditional items of household use to the hi-tech related products. Interest has been shown in Indian vehicles of all kinds and machinery and equipment for small/medium scale industries. Some pharmaceutical companies in India are also exploring possibilities of installing manufacturing units in Sudan.

India-Sudan trade relations are poised to increase steadily. The volume of bilateral trade reached US$ 110 million in 2002. 

Though Sudanese economy is showing signs of recovery, country does not have sufficient ready liquidity to finance its infrastructure developing programmes. The GOI line of credit of US$ 50 million to Sudan would provide initial help to kick-start our exports. The other impediment in smooth transaction of business is absence of inter-banking arrangements between India and Sudan. Of late, functioning of banking system in Sudan has greatly improved with the improvement of its economy in general and commencement of its crude exports in 1999. Recently, there have been no complaints about LC transactions or default on the part of Sudanese banks in honouring their commitments. Some Indian Banks including SBI are in touch with the Sudanese Banks to arrive at some corresponding arrangements.
 
Doing Business with Sudan

Sudanese Foreign Trade Rules and Regulations

A. Imports of the country [With India’s share therein]

(In US$ million)
No	Product	Year 2002 (Jan-Dec.)	India’s share
1	Machinery & Equipment	620.81	20.98
2	Manufactured goods	555.01	29.71
3	Transport Equipment	255.83	12.69
4	Wheat & wheat flour	221.32	6.42
5	Chemicals & medicines	206.46	15.76
6	Other Food Stuffs	172.52	9.99
7	Textiles	140.33	6.00
8	Petroleum Products	132.25	0.16
9	Crude Materials	68.64	1.59
10	Tea	30.68	0.31
11	Beverages & Tobacco	26.49	0.98
12	Coffee	16.02	00
Total (US$ Millions)		2446.38	104.62

Indian exports to Sudan for calendar year 2002 has been US $ 104.62 million as compared to US$ 87.72 million last year. Total India-Sudan Trade figures for the last five years, performance of Indian exports with reference to imports of Sudan and Indian share in global trade of Sudan are appended below:

(In US$ million) (Source: Bank of Sudan)
YEAR	INDIA’S EXPORTS	INDIA’S IMPORTS	TRADE BALANCE
1998	63.36	26.51	(+) 36.85
1999	63.81	5.46	(+) 57.44
2000	77.54	5.46	(+) 72.08
2001	87.72	9.24	(+) 78.48
2002	104.62	5.93	(+) 98.69

Global Imports and Exports with India’s share therein

Global Trade	Import million US$	2446.38
	Exports million US$	1949.11
Share of India		Exports Million US $ 104.62 (4.28%)  Imports Million US $ 5.92 (0.30%)

 A.1 Latest trade figures released by Bank of Sudan for the period January-June 2003 are given below:

Trade with and investments from third countries
 

(US$ Million)
	Commodity Group	Saudi Arabia	China	United Arab Emirate	Germany	United Kingdom	India	Egypt
1	Manufactured Goods	140.95	32.36	20.16	7.48	10.50	14.48	16.52
2	Machinery & equipment	53.84	33.51	23.37	51.34	26.13	14.95	5.71
3	Transport Equipment	54.12	26.98	3.53	7.16	5.11	3.37	1.35
4	Textiles	5.71	16.94	14.47	0.47	0.04	2.64	1.46
5	Chemicals Inc Pharma	15.27	11.17	4.79	8.29	11.81	8.06	4.52
6	Wheat & Wheat Flour	69.69	-	0.57	0.12	-	8.37	-
7	Other food stuffs	9.86	3.33	8.53	1.54	2.24	2.56	5.88
8	Petroleum Products	22.23	-	19.89	0.10	2.89	0.02	2.90
Total (US$ million)		383.92	125.02	97.43	77.36	60.93	56.13	39.56

Global Imports and Exports with India’s share therein

(Jan-June 2003) (US$ Million)
 

Global Trade	Import million US$	1336.77
	Exports million US$	1202.05
Share of India		Exports Million US$ 56.13 (Jan-June 2003) as compared to US$ 57.72 million for the corresponding period last year Imports Million $ 10.29 (Jan-June 2003)  as compared to $1.35 million for the corresponding period last year

Total Indian exports to Sudan for the period January-June 2003 decreased by US$ 1.59 million as compared to the corresponding period in year 2002. 

Performance of Indian Exports

(Jan-June 2003) (US$ Million)
 

No	Product	Jan-June 2003	India’s share
1	Machinery & Equipment	316.36	14.95
2	Manufactured goods	328.79	14.48
3	Transport Equipment	162.94	3.67
4	Wheat & wheat flour	119.06	8.37
5	Chemicals & medicines	114.75	8.06
6	Other Food Stuffs	72.98	2.56
7	Textiles	55.45	2.65
8	Petroleum Products	94.89	0.02
9	Crude Materials	38.82	0.57
10	Tea	13.48	0.13
11	Beverages & Tobacco	12.49	0.66
12	Coffee	6.72	--
Total (US$ Millions)		1336.77	56.13

Source : Bank of Sudan

A.2 Trade figures for the last four financial years as released by DGCI&S, Department of Commerce [for F.Y. 2003-04 upto April-September 2003] are given below:

B. Tariff and non-tariff issues concerning imports

• Countervailing duty regime - Sudan has no Safeguard law. However, Sudan is planning to formulate laws on safeguards and competition as well as anti-dumping.
• The Tariff quotas, tariff exemptions - Sudan has no Tariff quotas, tariff exemptions are available for investment projects governed by the Investment Law and for items within Article 54 of the Custom Law.
• Other duties and charges, specifying any charges services rendered - An additional tax ranging from 5 per cent to 150 per cent is imposed into 122 items (HS 8-digit heading). A rate of 10 per cent consumption tax is imposed on most of the imported goods on (C.I.F.+ Other Charges) except certain products e.g. a 2 per cent rate is imposed on tea, coffee, milk power, dry dates, raw tobacco, packing materials for cigarettes industry and petroleum. Medicines (human and veterinary) are exempted from consumption tax. There are other charges e.g. 2 per cent quay dues collected by the Sea Ports Corporation and 1.2 per cent civil aviation charges.
• Quantitative import restrictions, including prohibitions, quotas and licensing systems - Sudan does not apply any quantitative import restrictions. All goods can be imported to Sudan except those which are prohibited by Islamic values or security considerations. These goods are spirits and wines, narcotics, gambling equipment, arms and ammunitions.
• Import licensing procedures - Generally, imports do not need an import license.
• Other border measures - Sudan does not apply any other border measures 
• Custom valuation and Application of internal taxes on imports - Sudan uses the Brussels definition of value (BDV).
• Other customs formalities - Importers must present an import declaration, commercial invoice certificate of origin, quarantine license (where necessary), Sudanese Standards and Metrology organization (SSMO) requirements or other documents for specific type of goods, and completion of bank formalities. Importers must pay the required duties, taxes and fees and receive an official release for the goods. Duties, taxes and fees are payable before releasing the goods except for direct delivery goods. 
• Pre-shipment inspection - Sudan has no mandatory Pre-shipment inspection. Importers are advised to have Pre-shipment inspection certificate issued by the international cargo inspectors registered by Sudanese Standards & Meteorology Organisation (SSMO). Double check inspection might be conducted by SSMO. All consignments with no quality inspection certificate will be subjected to SSMO inspection at entry points
• Rules of origin - The Certificate of origin for imports is mainly required when there are tariff preferences. The certificate of origin for export commodities is issued by Sudan Chamber of Commerce and checked by the custom authorities, and it is governed generally by the preference agreement such as the rules of origin applied or agreed upon in the Common Market for Eastern and Southern Africa States, the Global system of Trade Preference (GSTP). And the Agreement of Trade Facilitation and Development among the Arab States. Up to now the Sudan has no separate rules of origin The certificate of origin must be issued by the competent authority in the country of origin.
• Anti-dumping regime - Sudan has no Anti-dumping law yet.

C. Information relating to setting up of offices/firms/companies for trade and manufacturing purposes. 

Request is required to be made to the Union of Chambers of Commerce and Ministry of Foreign Trade conveying the intent of setting up offices/firms/companies, etc. The Ministry of Foreign Trade, thereafter, sends a set of rules and regulations for the company intending to open an office in Sudan. There are no special formalities for renting office spaces or residential accommodations or hiring of local staff. This can follow the Ministry of Foreign Trade’s response to the foreign company intending to initial its activity in Sudan.

D. The sectors in which India has potential to increase our exports

Engineering goods including manufactured goods, machinery & equipment, transport equipment, chemicals, wheat, drugs & pharmaceuticals.

E. Local requirements like registration etc. for exporting to the country

Importation and Exportation in the Sudan needs registration of the importer or exporter in the imports/exports registry at the Ministry of Foreign Trade according to the following:

1 - Registration in the Chamber of Commerce as an importer or exporter.

2 - An application form should be submitted to the Ministry of Foreign Trade for approval showing the following information:

• The name and address of the applicant. 
• A valid trade license from the local council where the importer or exporter will practice his business and a certificate of incorporation if the importer or exporter is a company. 
• The amount of the capital used in export and import activities. 
• A certificate from a chartered accountant showing the amount of capital used in import and export activities in the last budget. 
• The taxation and Zakat clearance certificates Zakat according to article 10 of the 1998 Constitution is a financial duty on Muslims and the law regulates the manner of its collection expenditure and management. The application shall be finally approved by the consultative committee.

Payment of the fees required for import & export registration, which is nominal ranging between SD 5000 and SD 50000 (US$ 1 = SD 260), and the registration is renewed annually.

F. The approach of the country on various WTO issues

Sudan is still not a member of WTO. However, it is desperately seeking the membership of the WTO. 

Source: Indian High Commission, Sudan