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Licorice Export

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ozge bulan

on 24 April 2014

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Transcript of Licorice Export


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Product Definition
The roots are brown, long and cylindrical. To a large extent, licorice roots are wild-harvested. They have to be 3 to 4 years old before they can be harvested and dried for extraction.
Common Uses
Licorice is used as a flavoring in food, health sector, tobacco, alcohol, and cosmetics.
Why Iran uses licorice?
Iranian Licorice have the world's highest range of Glycyrrhizin and therefore in 90 percent of cases. Their products have passed ISO, ISS and BRC International standards. Iran use the licorice to produce extract granule, extract paste, extract powder and extract block. Apart from these, Iran is the Biggest supplier of licorice of the World after China.
Iran import licorice from Turkey to increase amount of licorice that will be exported from Iran to the world. So; our target market in Iran is linked with traders and exporter firms such as IranLicorice

Turkey export licorice as a raw material to Iran. So; there is no need to package featured.
Distribution of Licorice From Turkey to Iran
Turkey distribute licorice to Iran via highway. There is a large amount of international transportation firms such as;
Baytur Transport and Logistics
Tuana Lojistik
Pema Uluslararası Nakliyat
Kayıkçıoğulları Nakliyat
Ataseven Nakliyat

CPT or CIP or DAP or DDP international contact terms will be used in transportation.

Certification and Documentation Requirements
Commercial invoice
-weight list
-packing list
-specification certificate

Licorice roots are produced in Syria, Iran, Caucasia, Italy, Chına and Turkey.
Liquorice is mentioned in the name of the food or the ingredients list.
Clear information on the presence of glycyrrhizinic acid or its ammonium salt in confectionery and beverages.
Information for hyper- tension patients
‘contains liquorice’ shall be added.
Glycyrrhiza glabra at concentrations of 50 mg/l or above, or of 300 mg/l or above in the caseof beverages. containing more than 1,2 % by volume of alcohol.
General Features:
- Licorice root intact, must be clean,
- On live insects, visible dead insects and insect residues must not contain ,
- The moisture content should not exceed 14%.

Furthermore these costs should be ;
While exporting or importing among the factors that increase the cost such as; sales commissions, letters of credit costs, packaging costs, labeling costs etc.

Requiretments In Licorice for Marketing
Claim your company and give potential customers;
Add a business description, phone number, website etc.
A 'Verified' badge published on your profile
Your company report for life

Export gets profitable when extract prices reach $1,000 per ton. Iran import licorice China and Turkey and after export them to worldwide with $1.30. Export gets profitable for Iran when extract prices reach $1,000 per ton.
Legal Documents
-certificate of origin
-EUR1 certificate
-halal certificate
-phytosanıtary certificate
- radiation certificat
Why France uses liquorice?

France are the main documents for import :


When foodstuffs enter France, customs duties, ad valorem, must be paid. The amount of these duties differs according to product. In addition, a value added tax (VAT), is applied (5.5 percent for all food products, except for alcoholic beverages, chocolate and candies where the VAT tax is 19.6 percent).

French trade restrictions include:

Cosmetics Sector

 Sales Agreement and General Conditions of Sale (CVG)
 Orders
 Delivery of goods
 The quality of the goods
 Limitation of liability of Turkish companies (limiting)
 The first guarantee

The EU organic logo
Supplier Ethical Data Exchange (SEDEX)
Cosmos and NaTrue standards
Quality safety management
Good Manufacturing Practices
Tax Revenues from Turkey 52,111 € million.

Anti-ageing trend

Extraction of liquorice requires significant investments in terms of equipment and systeems for quality control.
Therefore, they sell liquorice from other countiries such as Turkey.
Glycyrrhetinic acid and stearyl glycyrrhetinate
Natural ingredients

Sun Care
Some fruits and vegetabales can have EU quality norm.(apple,banana,auliflower, cabbage, cucumbers, squash, spinach, strawberries, beans, onions etc.)
Liquorice do not have a restriction for France but it only has documentation certificates.
Road transport has an important position in France.Road is used in agricultural ( in transport of liquorice ).
The three active ingredients produced from liquorice extract are sold for a much higher price because it is used for different goods.
For Cosmetics: Prices for glycyrrhetinic acid and stearyl glycyrrhetinate vary between € 350 and € 600 per kg.
Liquorice in Pastis has different pricing.
Methods are used :
Steel drums
Waterproof package
Recycling of packaging materials
Detailed Information of Production Places in Turkey:
Gaziantep is the only center that is distributed to the market .Ra- ma bayrakdar San Licorice Root . Tic. Ltd . Sti. ( Ramco company)
Export Registration
Turkey requires mandatory registration liquorice, including the products enjoying the relief of insurance cost of export products under the Price Stability and Support Fund (SPSF).
Dependent on exported goods registration, is determined with Circular will be issued by the Undersecretariat. Licorice is a dependent on exported goods registration.

Turkish exporters and Turkish Eximbank to benefit from Export Insurance Program is important.
import the natural or legal persons or their legal representatives that want to import plants, plant products and other items shall apply to the Directorate of import petition with their legal representatives.

Certificates’ Name
Phytosanitary Certificate
Conformity Certificate
ATR Movement Certificate
EUR.1 Movement certificate
Radiation Certificate
Technical Data Sheet
Safety Data Sheet
Kosher and/or Halal Certificate ( if reguested)
GMO certificate ( if reguested)

Movement Certificates
12 types of licorice are scattered on the world.
In our country, there are 6 types of licorice.
G. asymmetrica Hub.-Mor. (Endemic)
G. iconica Hub.-Mor. (Endemic)
G. aspera Pall.
G. flavescens Boiss.(Endemic)
G. echinata L.
G. glabra L. var. glabra

U.S. agricultural imports are forecast at a record $109.5 billion, down $3.7 billion from
August, but $5.7 billion higher than in fiscal 2013. Increases in import value are
expected for most products in 2014, with the largest gains in horticultural products and sugar and tropical products. The U.S. agricultural trade surplus is expected to fall by $9.6 billion in fiscal 2014, to $27.5 billion. This would be the smallest surplus
since 2009.

Turkey Herbs and Spice Export
Turkish  herbs and  spices  are  exported  to  around 100  countries throughout  world.  The majority  of exports  are oriented to  North America,  the European  Union Countries,  Latin America, the Far East and North Africa. The U.S.A, Germany, Vietnam, theNetherlands, Poland, Brazil, Canada, Italy, Belgium, Greece, France and Japan head the list.

Food Distribution Channel Overview
The food distribution system in the US is complex .Many players-inculuding middlemen-produce,manufacture,distribute,market and sell every type of food product imaginable.
Each has considered quality, price, packaging, labeling and marketing plans.By the time the product is purchased, the manufacturer, broker, distributor and retailer have all determined it to be viable and profitable and the end consumer has deemed it to be of significant value.
Food distribution channel players
Food distributors
Food brokers
Food wholesale distributors
Foodservice distributors and brokers
Self-distributing retailers

Typical distribution process for a retail food product
Step 1. Test the waters
Step 2. Hire a broker
Step 3. Find a distributor
Step 4. Secure retail accounts

Overarching imperative: Remember the customer
Pricing and the distribution channel

Gross revenue arising from agricultural activities consists of the following elements
- sales revenues earned from selling every kinds of agricultural products produced, purchased or obtained in other ways including the products remained from the previous years, 
- proceeds received in return of using agricultural machinery and equipment in the agricultural works of other farmers. 
- sales revenues derived from the selling of items expensed previously, 
- insurance compensations received for the products damaged before or after they were produced.
- revenue arising from the selling of the fixed assets (except immovable used in agricultural activities). 

On the actual basis, the following expenses are deducted from the gross revenue to reach taxable income for the year
Expenditures made for obtaining seed, fertilizers, seedling plants, animal feeds and similar materials; 
- expenditures made for purchasing animals, agricultural products and other materials which are acquired for the purpose of resale;
- salaries and wages paid to the employees; 
- operation and maintenance expenses of agricultural machinery; equipment, and vehicles;- depreciation expenses; - rents and fees paid for machinery and equipment, 
- interest injured for loans received and used for enterprise, 
- general expenses made for earning and indemnities paid based upon written agreements, juridical decrees, or by order of law;
losses injured in the selling of fixed assets (except immovable used in agricultural activities) which are part of the enterprise; -full depreciation expenses and half of other expenses of the vehicles which are part of the enterprise and also used for personal and family needs., 
Tax Rates

Standard rate
: The standard rate of VAT on taxable transactions is set at 10% in the VAT Law, but this rate was increased to 18% as of 15 May 2001. 
Special rates:
For the deliveries and services mentioned in List No. I ......1% (e.g. agricultural products such as raw cotton, dried hazelnuts, supply and leasing of goods within the scope of the Finance Leasing Law)
Turkish Taxation System
Income derived from agricultural activities is also subject to the income tax.
The term agricultural activity means any activity performed in land, sea, lakes and rivers in forms of cultivating, planting, breeding, fishing, hunting and etc. For tax purposes, persons who engaged in such activities are referred to farmers

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