Situation

   Client purchases merchandise in Europe.  Client must remove merchandise from EC and "re-package" merchandise prior to arrival in USA.  Client seeks third country, outside EC, with a favorable regulatory and security environment to accomplish this task.  As a collateral goal client would like to develop additional sources of merchandise through the creation of a "licensed distributorship" in Morocco.

General Background

   Several factors make Morocco an attractive choice; proximity to Europe, a western work and banking week (Mon-Fri), European (French) commercial law, an attractive security environment, and a modern logistic infrastructure, including large, efficient ports at Casablanca and Tanger.  Considering CTC International's influential contacts within the business and government sector and its ability to provide long-term quality control and trouble-shooting on behalf of the client, Morocco seems to be a very logical choice. 

Specific Issues

   1.  Security.  Client has two security concerns.  First the physical security of his merchandise from theft or loss and second, the need to maintain a high degree of operational security concerning the nature of the merchandise, its origin, and destination.

    A.  Physical Security.  Physical security of imported merchandise is generally good in Morocco.  The most vulnerable period occurs between when a container is off-loaded and awaiting customs clearance.  The port facilities are generally well guarded and additional security could be arranged through the port police for a fee.  Assuming containers are secured with high-security locks there is little probability of theft.  Efficient custom brokers can have a container cleared through customs and delivered in 24 hours if all documents are in-hand and correct, thus minimizing this vulnerable period.

   B.  Operational Security.  From an operational security standpoint Morocco is very attractive.  The nature of the regime and society create a difficult environment for the covert collection of information.  Assuming appropriate operational security measures are established and enforced, a foreign investigator would have the greatest of difficulty acquiring any information concerning the nature of the merchandise, its origin or destination.  It is illegal to engage in private investigative activity in Morocco.  Combining the use of well "connected" representatives with the fact that there is no Moroccan law prohibiting this type of transshipment operation will strongly discourage any "moonlighting" activity by local police officials.

   The most likely threat to operational security will come from the Moroccans employed in the "re-packaging" process.  Care should be taken to hire older, non-French speaking Moroccans, preferably of Berber origin.  This might create some minor management difficulties yet they will be more honest, perhaps harder working, and most importantly they are notoriously suspicious and almost impossible for a stranger to approach.

2.  Logistics.  The ports of Casablanca and Tanger are modern and efficient.  There is a high volume of container traffic between Morocco and Europe.  Of specific interest to the client should be the regular runs between Cadiz-Casablanca, and Cadiz-Tanger.  Other regular container runs include Casablanca-Le Havre, and Casablanca-Rouen.

3.  Customs.  A large amount of state income is acquired through customs duties and as such customs regulations are very strictly enforced in Morocco.  The services of a respected and influential customs broker are absolutely essential to the success of the proposed operation. Additionally, the client must insure that the appropriate documents are provided to the broker to obtain clearance.  The slightest error or inconsistency can result in unusually long delays and worse, additional scrutiny.

4.  Port Facilities Pros-Cons.

   A.  Casablanca.  Casablanca has no free trade zone. Temporary import can be arranged with a bank guarantee (customs bond).  This requirement has the potential to significantly complicate the proposed operation.  However, Casablanca is the economic capital, as well as the center of political influence of Morocco.  Any customs broker worth his salt has his main office in Casablanca, and while he may have operations in the ports of Tanger and Agadir, it is unlikely he will be able to direct the same level of personal influence over a situation which occurs at these distant locations.

   B.  Tanger.  The free trade zone is located around the new Atlantic port of Tanger.  There are an increasing number of manufacturing facilities (mainly textiles) being established in the zone because of the ability to import raw materials and then export finished product without the usual "customs headaches."  Tanger is a smaller port, perhaps offering lighter shipping volume but perhaps better physical and operational security because of its relative isolation.

5.  Preliminary Inquiries and Arrangements.

   A.  Transshipment.  In addition to the general research summarized above, CTC International has reviewed and screened a short-list of customs brokerages in Morocco.  Two particular firms, which were highly recommended by several qualified sources in the international transportation and import/export business, were contacted.  Based on these initial discussions, CTC International identified a customs brokerage that appears capable of meeting client's requirements.  The President of the firm is a Moroccan Jew with very good connections at the highest levels of government and the Royal family.  The firm has an efficient bilingual (English and French) management staff consisting of both Moroccan and French nationals.  The President of the firm is eager to meet with the client to discuss the particular details of this operation.

   B.  Potential Distributor.  CTC has located a potential distributor.  He is a successful, young Frenchman, who grew up in Morocco and currently imports and distributes European cosmetics through a network of boutiques and beauty salons. He is very interested in meeting the client.

6.  Proposed Itinerary.

     Day 1        Late PM                Depart CONUS*

     Day 2        Early AM               Arrive Casablanca

                              PM               Afternoon meeting with President, Customs Brokerage Firm

     Day 3                AM               Survey Casa Port and warehouse facilities

                             PM                Dinner meeting with Potential Distributor

     Day 4                AM                Survey Potential Distributor's network

                             PM                 Visit some boutiques, salons

     Day 5                AM                Fly to Tanger, Survey Tanger Port and warehouse facilities.
                                                  Overnight in Tanger or return to Casa

     Day 6                AM                Final Discussions

     Day 7                AM                Depart

  * The only direct flights into Morocco are aboard Royal Air Maroc leaving out of JFK International at 2030 on Tue, Thu, Sat and at 1745 on Sun (stop in Montreal).  These put you in Casa at 0710 the next morning.  The Moroccan work week is Monday-Friday.  Probably best to take a Sunday night flight and arrive Monday morning unless client wants to relax for a day prior to doing business.  We could then depart the following Saturday morning.  All other routes to Morocco require a stop in Europe, longer travel time, and an overnight layover on the return.