Food Consumption Patterns Part 2
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83<br />
increased imports following the imposition of an aid embargo, and by organized resistance from<br />
importers who were being compelled to pay taxes.<br />
Figure 41: Reported Oil Imports and Time Line for Changing Governments<br />
300,000<br />
150,000<br />
0<br />
2001<br />
Aid<br />
embargo<br />
begins<br />
2004<br />
Aristide<br />
falls<br />
2005 - 2006<br />
Interim<br />
government,<br />
under UN<br />
2007 - 2010<br />
Preval government,<br />
under continued UN presence<br />
Source AuthorSource: DGI<br />
In summary, important points that can be drawn from what we know about the importers and<br />
distributors are that,<br />
<br />
<br />
<br />
At least some and perhaps most of the highest tier importers pay little to no taxes (as<br />
suggested by the data and according to informants interviewed during the course of the<br />
present research), so it is almost impossible to compete with them ( i.e. their profit margins<br />
are less than the taxes that a legitimate importer would pay).<br />
Corruption at the customs houses means that even if they did pay taxes, other importers<br />
face significant and often inscrutable and unpredictable obstacles.<br />
Some elite local processors and packagers may not conform to international standards or<br />
laws and instead use inferior products, mislabel, pirate internationally copyrighted<br />
packaging, and make false claims regarding nutritional content. They also understand local<br />
culture and values meaning they can do all this in such a way as to take maximum<br />
advantage in advertising and managing consumer taste and packaging preferences<br />
Summing up these factors, the owner of one of the largest importing agencies in Haiti explained<br />
to the consultant, in private, that “these guys could not survive in a competitive market.” The point<br />
being that a distributor who tried to conform to international and Haitian laws and standards would<br />
be driven out of business by rivals who evaded taxes and otherwise gamed the system. The primary<br />
conclusion that flows from the situation described here is that any social enterprise hoping to reach<br />
the popular market with RUTFs may arguably have to work within the existing system, and hence<br />
with established distributors.