El Salvador - Safety and Security EquipmentEl Salvador-Safety Equipment
Overview
Safety and security equipment demand in El Salvador offers a steady market of opportunities for U.S. exporters. El Salvador has one of the highest homicide levels in the world, crimes such as extortion, assault, and robbery are common, therefore security is a vital factor for private companies, public institutions, Salvadorans in general, and international trade related activities.The government of El Salvador’s plan to mitigate crime and violence has included decisions that improve procedures, security, and efficiency in the criminal justice sector such as the purchase of electric monitoring bracelets, the integration of a monitoring and communication system, acquisition of new patrol vehicles, patrol vehicle equipment for the police, screening technology for prisons and airports, among others. The greatest challenge is the lack of resources to fund security plans, but the acquisition of technology, infrastructure, and police equipment is commonly through loans from international financing institutions, international cooperation, and or a fund created by law specifically for security, resources are from a 5% tax on purchases of telecommunications products, and services such as fixed and mobile telephony, pay-TV, and internet. The United States cooperation on security includes border security, violence prevention, prison reform, and other areas highlighted in the following link:
https://www.state.gov/j/inl/regions/westernhemisphere/219166.htm
The private sector expenditures in safety and security is mostly on guards, perimeter surveillance, and asset protection. It is common practice to hire services from private security companies for commercial and residential security, including guards, security armed patrol, and GPS tracked vehicles. In the main city of San Salvador, its and other neighboring municipalities are cooperating to increase city surveillance and municipal police as they share responsibilities for preventing and responding to crime and violence. To sell US products and services in El Salvador, the use of an agent or distributor is recommended, as well as to develop contracts between the parties using CAFTA-DR provisions CAFTA-DR Chapter 11.
| 2015 | 2016 | 2017 | 2018 (Estimated) | |
| Total Local Production | 0 | 0 | 0 | 0 |
| Total Exports | 43261869.16 | 39735194.21 | 28489769.47 | 37162277.61 |
| Total Imports | 750937030.34 | 678676291.35 | 704662975.58 | 711425432.42 |
| Imports from the US | 76676144.78 | 70753705.93 | 73324165.81 | 73584672.17 |
| Total Market Size | 707675161.18 | 638941097.14 | 676173206.11 | 674263154.81 |
| Exchange Rates | NA | NA | NA | NA |
Source: Central Reserve Bank of El Salvador; statistics in millions of U.S. dollars. Official currency is U.S. dollar, no exchange rates apply. Trade data constructed on products classified under HS code 85, and HS 93.
Overall, the United States continues to be the main source of imports in El Salvador, leading about 32% of the imports market share in 2017, followed by China with 14% of market share. There is no significant local production of safety and security equipment in El Salvador and import duties for most security equipment and devices are zero percent, subject to a 13% value added tax. To do business in El Salvador, a U.S. company should either register an office or work with a local agent to navigate the procurement registration process and follow up on public and private opportunities. Also, the Ministry of Justice and Security must authorize private security companies and individuals providing alarm monitoring, security, private investigations, transportation of valuables, and guard services. Additionally, the Arms, Ammunition, and Explosive Law requires prior authorization of the Ministry of Defense for the importation of firearms, personal protection pepper sprays, tear (CS) and (CN) gases, explosives, electrical shock protection devices, and similar products.
Leading Sub-Sectors
The following subsectors have a very high probability of success: video surveillance system, intrusion detention/burglar alarm systems, electronic access control systems, door/entrance solutions, physical security, personal protection products, fire and rescue, IT security, scanning equipment, road and airport security.Opportunities
El Salvador’s private and public sector has a preference for U.S. products, services, and technologies. More efficient and sophisticated products, and training are always in demand. The main buyer is the public sector, however most acquisitions depend on loans from multilateral development banks or grants, and donations by contributor countries.Government purchases are channeled through www.comprasal.gob.sv, an online portal for competitive bidding processes. All government purchases are regulated by the Acquisition and Purchasing Law (Ley de Adquisiciones y Contrataciones –LACAP), including direct purchase which is often the case for special projects and technology.
As the level of violence remains at critical levels, individuals are seeking solutions. Opportunities for residential security monitoring services and video surveillance systems are growing in a market where barbed wire, bars on windows and doors, and gated neighborhoods are most prevalent.
Web Resources
IDBCouncil of the Americas
Official Salvadoran Government Procurement website
Ministry of Defense of El Salvador
National Civil Police
Central America Economic Integration Secretariat
Central Reserve Bank of El Salvador
Oversees Security Advisor Council (OSAC)
Import controlled products
5% Tax on Telecommunication
U.S. Commercial Service Contact
Maria Irene Rivera, Senior Commercial Specialist, maria.rivera@trade.govPrepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.