Oman Cables Industry won the Prestigious of the Export Award for 2005
Oman Cables Industry (OCI) recently won the prestigious Export Award – 2005 at the eighth annual Oman Award for Excellence. Mr. Mohammed bin Mustafa Al Lawati, Assistant General Manager, received the award from Mr. Nasir bin Issa Al Ismaily, General Manager, Export Credit Guarantee Agency (ECGA). The award was given in recognition of the excellent export performance last year.
OCI exports more than 64 percent of products to countries in Europe, GCC and Far East and has opened regional offices in many countries to provide distributors with logistical, marketing and technical support.
Annual General Meeting of the Credit Alliance held in Paris - France
The annual general meeting of the Credit Alliance was held in Paris - France from 4th July to 7th July 2006. Apart from COFACE and its owned subsidiaries, a number of ECAs being partners of the Credit Alliance Network participated in the meeting. The annual meeting was preceded by the Regional Meeting for Africa/Middle- East Group. The General Steering Committee of the Alliance also held its meeting after the annual meeting.
The General Manager of ECGA Mr. Nasir Issa Al Ismaily presented the Exporter of the Year Award 2005 to Mr. Mohammed bin Mustafa Mukhtar of the Oman Cables Co.
5. Recognition of Ten Years of Services & Merit Certificate Awards
Mr. Imaad Soud Al-Harthy and Mr. Anil Karnawat completed 10 years services with ECGA. To mark this occasion, they were awarded with the memorabilia presented to them by the General Manager.
It is also worth mentioning that Mr. Said Al-Mehdi, Senior Underwriting Officer was awarded with Merit Certificate for his achievement as the best employee of the year 2005.
6. Remarkable growth of domestic credit insurance
Omani credit insured exporters have long realized the importance of mitigating their credit risks with buyers by insuring their exports with ECGA. This has also been reflected by substantial growth of domestic credit insurance where it registered tremendous growth for credit insurance cover on local buyers. The level of credit limits approved under domestic credit insurance has grown up by 83.6% compared to corresponding 3 months period of 2005. Moreover for the same period, the level of premium income for domestic cover has increased by more than 27%. ECGA has continued to be highly successful in meeting its target for domestic credit insurance business.
7.Reinsurers visited ECGA
As part of routine visits, two representatives from M/s. Atradius Reinsurance Ltd, one of the Agency's reinsurers under Quota Share Reinsurance Treaty, visited ECGA on 26th April 2006. The reinsurers made a presentation with regard to the activities, operational and financial performance of M/s. Atradius over the past years as well as detailed profile of their company. Coverage for exports to difficult markets were also presented accordingly. Furthermore, the reinsurers were briefed about underwriting, claims, and recovery procedures adopted by the Agency and were also demonstrated ECGA's computerized system pertaining to operational matters. It is relevant to mention that the other lead reinsurer M/s. Natonal Borg also made a similar visit to the Agency earlier.
COUNTRY PROFILE OF BUYERS OF OMANI INSURED EXPORTS
Tunisia is situated in Northern Africa, between Algeria and Libya. The total area of the country is 163,610 square kilometers. The capital city is Tunis. The population of Tunisia is 10,175,014 (July 2006 EST.).
Export Credit Guarantee Agency (SAOC) has insured Omani exports to various products to Tunisia including fish and marine products, polypropylene products, biscuits and chocolate coated products, automotive batteries and power appliances, tomato ketchup and hot sauces etc. The total credit limits issued by the Agency to date amounted to RO.690,000/- in which RO.567,000/- or almost 82% under letters of credit and remaining 18% RO.123,000/- are on Open Credit. The Agency has not paid any claims to insured Omani exporters to Tunisia yet.
During the year 2005, total Omani exports (excluding oil) to Tunisia were RO.1,429,510/-, while imports were RO.100,144/-. The Omani exports and imports to Tunisia for the last 5 years are listed below. Thus Oman has maintained substantial a net trade surplus with Tunisia for the last 5 years.
(All figures in RO.)
Source: Extracted from Foreign Trade Statistics.
As per D&B COUNTRY RISK INDICATOR, Tunisia’s risk outlook is supported by sound macroeconomic fundamentals and policy.
A number of ECAs provide full cover for Tunisia including US Eximbank, Atradius, ECGD and Euler Hermes UK and COFACE. The recommended terms of payment are (Sight Draft) SD with usual terms of 60 - 90 days.
DO's & DONT'S
Do declare all your shipments /business to ECGA by the 10th of the following month
Failure to declare your business to ECGA on time may result is refusal of cover as due performance and observe of each and very stipulation of the Export Credit Policy is a condition precedent to any liability
Must declare all shipments made during the previous month on or before the tenth day of each month
|Delay in submitting monthly declaration to ECGA. This despite several written reminders from the Agency
Should inform the Agency all amounts which at the end of previous month remain unpaid for more than two months from the original due date.
Fail to inform the Agency of amounts outstanding which are overdue within the stipulated period.
Take all possible steps to minimize or prevent the loss and inform ECGA accordingly
|Effect further shipments while previous export bills are overdue to the buyer.
Obtain ECGA’s approval in advance to a postponement of the due date of payment from the buyer
|Agree to postponement of extension of further period for payment by the buyer without consulting with ECGA
QUESTIONS & ANSWERS
Q. When should the Policyholder submit details of credit insured export sales?
A. Submission of all export sales made during a particular month should be made on or before 10th day of the following month as per clause 6(a) of the Export Credit Policy.
Q. Is late declaration considered as violation of the terms of Policy?
A. Yes it is. It is clearly mentioned in the Policy that the Policyholders are required to submit all declaration of sales latest by 10th of the following month.
Q. What will be the consequences of late submission of declaration of export business?
A. As it is a violation of Policy, the Insurer, (ECGA) has the right to refuse, to accept the export sales declarations after stipulated time. Thus, your export sales already made will be off cover. Hence it is highly important that all your sales whether it is domestic or exports are declared in time.
Q. When should the policyholder submit Declaration Form of overdue debt?
A. Notification of all payments related to credit insured exports not received within 2 months from the due dates should be sent to the Agency on the Overdue Declaration Form. The declaration should be sent on or before the 10th of every month.
Q. What is expected from the exporter towards maximizing the recovery?
A. The exporter should keep the Agency informed of all steps already taken towards recovery of amounts in default. The Agency will also suggest certain course of action for recovery based on the development and circumstances.
Q. Does ECGA contribute to recovery costs?
A. Yes, the Agency will reimburse the policyholder the legal fees paid to lawyers in the buyer’s country up to the proportion in which liability for the debt has been admitted by ECGA. Also the policyholder should obtain concurrence form the Agency to initiate legal action for recovery.
Q. What action as policyholder should take when recoveries are received from buyer?
A. All proceeds of recovery action must be remitted in full promptly to ECGA for allocation. The Agency will then allocate proportion in which the original loss was shared.
Q. Does ECGA take over recovery action once a claim has been paid?
A. After payment of a claim, ECGA has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with ECGA subject to any further requirements it may have.
Q. Having known that the buyer is facing financial difficulties, I have allowed discount to the buyer for full and final settlement for reduced amount than the invoiced amount. Can I lodge a claim with ECGA to the extent of discount amount granted to the buyer?
A. No, as per the terms of the policy, you are only entitled to lodge a claim with ECGA if any receivable from the buyer exists. In this case, since you have accepted reduced amount as full settlement, no more receivable from the buyer. As such there is no default from the buyer’s side.
Q. In general, is there a set time by which a claim will be paid by ECGA?
A. As you may have noticed from reading of your Export Credit Policy, it contains no undertaking to pay a claim at or by a particular time. The Policy merely specifies a minimum period of time after which loss can be ascertained. This particular point in time is known as the ' date of ascertainment of loss' - which must be reached before any claim can be met. This obligatory waiting period - for that is what it is - serves a valuable function. It helps both ECGA and the policyholder to distinguish short-lived 'accidental' delays in payment from the true default which persists long enough to reflect a real loss.
Omani Insured Exporter by ECGA
AREEJ VEGETABLE OILS & DERIVATIVES SAOG
Areej Vegetable Oils & Derivatives SAOG is one of the first Omani exporting companies which availed ECGA's services that is in 1992. The company was established in 1980 with a majority shareholding of the OMZEST Group. It has a modern hygienic plant and manufactures and markets top quality cooking oils, ghee, margarine, speciality fats and butter products.
The Company's leading brands, include MINARA, SOHAR, JABAL AKHDAR and MUSCAT MARGARINE are trusted names in every Omani home. Areej Vegetable Oils enjoy 65% market share in Oman and current exports are 70% of total business. The Company exports to 27 countries around the world.
The company’s latest product innovation involves MINARA in a transparent bottle that reflects sunflowers in a 3-Dimensional mode
The Company has a track record in innovations VIZ. the bag-in-carton cooking oil that was a huge success in Oman and UAE. SOHAR was the first blended oil in the GCC to suit Omani frying habits. MINARA was the first cooking oil in a crystal clear bottle to make an entry in the GCC market. Furthermore, it was the first PET bottle to be launched in the GCC with a handle. Exports got a major fillip with the manufacture and sale of private label brands in PET bottles with handles.
The company continues to grow in new markets with products such as Ghee in tins, bag-in-box, polyjars, Cooking oil in tins, Blended oil in clear PET bottles, Speciality oils and shortenings.
Multinationals like PEPSICO (SNACKS), UNILEVER, EMBORG source their requirements for the Gulf from Areej Vegetable Oils. This is ample testimony of the quality standards that have earned the company its much deserved success. Among its various brands of its main products include the following:
||JABAL AKHDAR - Palm Olein Cooking Oil , MINARA - Pure Sunflower Oil, SINDBAD - Refined Palm Olein, SOHAR - Blended Corn Oil and TAJ - Pure Corn Oil
||FIRDAUS - Superior Quality Vegetable Ghee, GOLDSPOON - Vegetable Ghee, HAFLA -Blended Dairy and Vegetable Ghee and SPECIALITY FATS - For the Biscuit and Snack Food Industry.
||BAKERS - Cake Margarine blocks, Pastry Margarine blocks, AWAFI - Crème Margarine, Croissant Margarine and MUSCAT - Table Margarine Tablets
||AWAFI - Pure and Blended Butter blocks and PRIVATE LABELS
The chart shows the volume of export sales of Areej Vegetable during the last 6 years
"To be a competitive manufacturer in a small country like Oman, you have to export. It’s as simple as that in a free trade economy.
But you may ask, how does a company engaged in a very common industry export like ours? Every country in the GCC and Middle East refines and packs vegetable oils. Some countries have many refineries. The UAE has five. Saudi Arabia has three huge plants. Kuwait has one. Oman has two. Areej Vegetable Oils SAOG is just one of them, situated next to the Rusayl Industrial Estate.
The answer is simple. Innovate, innovate and keep innovating. Innovations can be small or big, it does not matter. Innovations can be in products (brands) or processes (cost). This too does not matter. What matters is that the end result is liked by the consumer. If so, it adds to consumer value and shows up as increased sales. There are so many brands of cooking oil in the supermarket shelf today that it gets very confusing. Which one to buy? Let us for a moment consider the packaging of just one brand of one vegetable oil viz MINARA sunflower oil.
Recall the first time you saw clear pure vegetable oil in a transparent bottle. Was it MAZOLA corn oil in a clear round glass bottle made by a big USA multinational giant or was it MINARA sunflower oil in a clear round bottle with a beautiful handle made by a small Omani Company ? Weren’t you pleased with the clarity, purity and colour of the oil and the convenience of the bottle in use. Seeing is believing. That innovation sold millions of bottles. That innovation has made MINARA a household name in the GCC and Iraq and Oman’s leading export brand.
May we share a secret. Have you seen the beautiful sparkling new MINARA bottle where the oil is so pure and clear that you can read the label through the oil? Please don’t just look at the photograph above. See it for yourself in your nearest supermarket. There is no other bottle in the world quite like it. It’s just another innovation……., backed by the Export Credit Guarantee Agency (ECGA)". Commented by Areej Vegetables Oils & Derivatives SAOG.
EXPORT CREDIT GUARANTEE AGENCY (S.A.O.C.)
ECGA appreciates greatly for being bestowed with the trophy as sponsor of the coveted Sponsor of the Exporter of the Year Award 2005. This is a manifestation of our commitment to support the Omani exporters by extending its valuable services to them.
ECGA also congratulates the winners of the Exporter of the Year 2005 - Oman Cables Company S.A.O.G as well as the other two finalists – Al Jazeera Tube Mills Company SAOG & Ali & Abdul Kareem Group.
The Omani exporters have long recognized and appreciated that one of the major keys to success is to insure with ECGA for safe export business. As exporters focus on exports, ECGA covers the risks.
ECGA is here to help you minimize your risks. It covers the following risks :-