Lebanon

Reaching the consumers

Marketing opportunities

Consumer behavior

In Lebanon, the existence of a good quality after sales service is a determining factor when people decide to buy. In 2005, the government implemented a new law which obliges companies set up in Lebanon to have certain mechanisms for consumer protection. In addition, the Lebanese like products with a high level of innovation especially in the field of new information technologies. Finally, price is also a determining factor when people decide to buy.

Consumer profile and purchasing power

66,8% of  Lebanese population is in the range of 15 to 64 years , with an average age of 28.8 years. Open-minded and attracted by foreign products both European and American especially, Lebanese have a sophisticated taste hence a strong presence of  many prestigious global brands Over the last few years, many Asian products are highly prized by people of medium and lower income and have invaded the market.

Consumers associations

Association for the protection of Lebanese consumers (no website but supported by the Chamber of Commerce of Lebanon.)

Main advertising agencies

Directory of advertising agencies in Lebanon.
Advertising agency on Internet.

Distributing a product

Market shares

No data on this point.

Organizations in the retail sector

The American agency for trade promotion's document about Lebanon.

Market access procedures

International Conventions

Party to the Kyoto protocol
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer

Main International economic cooperation

Lebanon is a country traditionally open to trade. Its efforts are concentrated, from this point of view, on three areas: the European Union, the United States and the other Arab countries. It has signed a framework agreement with the United States to favor trade and investment between the two countries. It has been trying for many years to join the World Trade Organization and since 1999 has had observer status. Its relations with the European Union are privileged; there is an association agreement between the two entities, also called Euro-Mediterranean partnership, which provides especially for the creation of a free trade area between Lebanon (as part of the agreement) and the European Union by 2014. Lebanon is also part of the Greater Arab Free Trade Area (GAFTA), a pact of the Arab League entered into force in January 2005 which aims to form an Arabic free trade area. It has signed numerous bilateral free trade agreements with Syria, Egypt, the United Arab Emirates, Kuwait and Iraq notably.

Non tariff barriers

Less than 1% of imported products are subject to trade restrictions (license, technical, medical or phytosanitary certificates...) which can be similar to non tariff barriers. Importing some products, like arms for example, is forbidden in Lebanon even if they are only in transit. All these restrictions can be consulted on the website of the Lebanese Customs. In addition, Lebanon applies the boycott decided by the Arab League against Israeli products and some foreign companies may be blacklisted if they are thought to be helping the military development of that country. However, the boycott is relative since a considerable number of prohibited products can be found on the Lebanese market today.

Customs duties and taxes on imports

Customs duties vary depending on the nature of goods and their origin. Surcharges may be applied on certain products such as textiles, alcoholic beverages, motor vehicles etc.. These tariffs are set by the Lebanese customs.

Customs classification

The Customs system is the Harmonized System of Brussels. Customs duties vary from 0% to 70% according to the nature of the goods and their origin. Import surcharges can be levied on certain products such as textiles, alcoholic drinks, motorised vehicles,etc. Customs duties are levied by the Lebanese Customs.

Import procedures

Any customs declaration must include the following documents
- an original invoice
- a detailed item/product list if the bill does not include details
- a copy of the bill of lading or other document replacing it;
- The certificate of origin in accordance with customs regulations or bilateral or collective agreements signed with Lebanon
- any other document required by law and regulations (proof of payment etc ...).

For more information on the other documents or the procedures required by the other authorities such as the measures of prohibition, the import license, the certificates and all other conditions, it is necessary to refer to "Restrictions and Prohibitions-Circular 1" accessible on the website of the Lebanese customs and from the offices customs.

 

 

Importing samples

Samples with no commercial value are exempt from Customs duty.

For further information

Lebanese Customs

Organizing goods transport

Main useful means

The means of goods transport in Lebanon are diversified.

Ground transport: Lebanon is endowed with 2 international freeways, a following the coast from north to south and the second eastward " the Arabic freeway ". There is also an archaic railroad line severely damaged by the civil war the rehabilitation of which turns out difficult because of the fines of the private property on this line.

Ground Transportation: Lebanon has 2 international highways, one running along the coast from north to south and and the second eastward "Highway Arabic. There is also a archaic railway line severely damaged by civil war whose rehabilitation is difficult because of violations of private property on the sea line.

Sea transport: there are several ports. Currently, among them, the two mostly operating are the port of Beirut and the port of Tripoli
Air transport: Beirut International Airport rehabilitated during the 90 years, with a capacity of 6 million passengers, is the only international airport in the country. The Trans-Mediterranean Airways - TMA based at Beirut airport is the only one authorized in the transport of cargoes.

Ports

Port of Tripoli (website available in Arabic only).
Port of Beirut website.

Airports

Beirut airport website

Sea transport organizations

Beirut Port Authority

Air transport organizations

Lebanese Civil Aviation website.

Road transport organizations

The website of the Ministry of Works and Transport is unavailable.

Rail transport organizations

Train lines are no longer used.

Identifying a supplier

Type of production

Lebanese industry is one of the most important sector for the economy of the country because it is a source of employment. The main challenge will be to maintain high employment level while maintaining the competitive operator in an unfavorable economic situation. This sector is less diversified than other ten sub-sectors which compose it and with which we are the most common:
- Plastic Industry: The main companies produce containers, tubes, household items or promotional material . Some of them are very competitive and have set up subsidiaries abroad;
-Textile Industry: mainly repersented by spinning, tisserant and prêt à porter indusries . This activity is very export oriented and more than 50% of production is sold abroad
- Furnishing Industry: thanks to sustained domestic demand, the major companies have set up modern production units and are now internationalising their market;
- Paper industry: this sector also invested a lot to modernize the tool of production;
- Industry of the marble: due to a state-of-the-art equipment, this industry grew with the domestic demand engendered by the reconstruction. It exports now to the Gulf and to Europe;
- Industry of the cement: it was the main industrial production after the war. It decreases henceforth considering the realization already operated for the main projects of infrastructure.

The biggest companies, employing more than 50 persons, represent less than 1 % of the total number of industries in the country. Furthermore, the Lebanese industry is mainly detained by families and thus very fragmented. One of the major challenge in this sector will be to improve the quality of the production. Indeed, the regional competition is strong, in particular after the opening of certain bordering countries as Syria and Jordan.Simultaneously, the production costs of Lebanese products are high and make them uncompetitive in the export. High costs are due to the workforce education level, often high, the cost of social security contribution and energy costs.

Business directories

Lebanese business website.
Lebweb , Directory of websites concerning business in Lebanon.
Lebanesemal , Lebanese website with a directory of business websites.

Manufacturers associations of the main industries

Association of Lebanese industrialists

Trade Agencies and their representations abroad

Chamber of Commerce, Industry and Agriculture of Lebanon
American Chamber of Commerce in Lebanon

Enterprises federation

Directory listing the main associations of companies in Lebanon.