APIP Agricultural Policy Implementation Project

equired so much time. In an effort to respond to such problems APIA has
recently instituted a "one stop office" (guichet unique) to speed up the
administrative procedures.
Itappears that APIA could play an important role inencouraging investment
in the cut flower sector ifit made it easier for enterprises to apply for and
receive the incentives incorporated inthe Agriculture Investment Code. A number
of the code's provisions should be attractive to cut flower investors. These
include:
0 10-year tax exemption
* Up to 5,000 dinars for feasibility studies
* Preferential credit rates
0 Tax exemption on locally purchased inputs
• Shared training costs for personnel on projects using new
technologies
APIA's knowledge of the cut flower sector is limited. It lacks the
resources to follow-up on the businesses which it has promoted in the past. In
one particular case, an APIA-approved cut flower exporter pointed out that no one
from APIA had visited his operation inthe three years he had been inbusiness.
This was significant because the foreign partnership which APIA had helped to
arrange was now defunct. It appears that APIA does not have the means to screen
and qualify foreign investors which itrefers to Tunisian growers. Italso seems
that APIA currently is unable to evaluate the success or failure of investments
which it helped to promote in the cut flower sector.
5.3. Customs
Tunisian cut flower exporters depend on the Customs Service to expedite
entry of inputs into Tunisia and to clear the export of their outputs to foreign
markets. They expressed dissatisfaction with the Customs Service whereas they
were generally pleased with export oriented services.
5.3.1 Import Issues
Three major problems with imports were cited by firms in the cut flower
sector. The first concerns the speed with which customs clears bulbs and other
perishable inputs. Itappears that cumbersome import procedures have delayed the
delivery of bulbs and cuttings, resulting in damage and losses which are borne
by the Tunisian growers. The second problem is related to pesticides and
herbicides that are banned for use on food crops. Cut flower growers would like
to use these inputs but find that customs will not make exceptions. The Customs
Service says that it is not a policymaking body, so the question of clearing
these inputs for flower production isnot their mandate. The third problem with
imports that flower growers have concerns exoneration from import taxes.
Currently, if an inpu" is used for production of an export crop, it is exempt
from the import tax.
4 owever, growers state that customs finds it difficult to
determine whether a specific import will be used exclusively to produce export
flowers.
5.3.2 Export Issues
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