Export Packaging

Note No. 30

Some Aspects of Export Packaging in

Developing Countries

Contents
Export Market Requirements
--------Scope of Laws, Regulations and Standards Affecting
Packaging in Importing Industrialised Countries
--------Existing Restraints
--------Information Systems
--------Packaging Legislation in Developing Countries and its
Impact on the Development of a Local Packaging Industry
--------Packaging and Packing Material
--------Technical Assistance in Export Packaging Rendered by ITC

This Note has been prepared, without formal editing, as a service to exporters and the
packaging industry in developing countries, least developed countries and economies in
transition by the Functional Advisory Services Section, Division of Trade Support Services,
International Trade Centre UNCTAD/WTO, 54-56 rue de Montbrillant, CH-1202 Geneva,
Switzerland.
Tel. +41 22/730 03 93; fax + 41 22/730 05 76; e-mail: packaging@intracen.org ;
Internet: http://www.intracen.org (Postal address: International Trade Centre UNCTAD/WTO,
Palais des Nations, CH-1211 Geneva 10, Switzerland).

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CONTENTS
INTRODUCTION

A. EXPORT MARKET REQUIREMENTS

B. SCOPE OF LAWS, REGULATIONS AND STANDARDS AFFECTING

PACKAGING IN IMPORTING INDUSTRIALISED COUNTRIES

C. EXISTING RESTRAINTS

D. INFORMATION SYSTEMS

E. PACKAGING LEGISLATION IN DEVELOPING COUNTRIES AND ITS

IMPACT ON THE DEVELOPMENT OF A LOCAL PACKAGING
INDUSTRY
10
F. PACKAGING AND PACKING MACHINERY

11

G. TECHNICAL ASSISTANCE IN EXPORT PACKAGING RENDERED BY

ITC
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INTRODUCTION
Up to a point, it is easy to balance supply and demand for packaging in developing countries to
ensure that domestic quality requirements are met. Soon, however, and often in the early
stages of a countrys economic development, products must be exported to balance foreign
trade. When this happens, packaging quality requirements must suddenly rise to new, high,
levels.
Even if exports are directed only to neighbouring developing countries, their packaging has to
withstand extra transport stresses, often under severe conditions. If, on the other hand, they
are directed to sophisticated industrialised markets, the products and their packages will have to
compete at quality levels which are difficult for them to meet. The product itself may be
excellent, but it will never achieve customer acceptance unless it is at least adequately
packaged.
Promotional packaging design as an active ingredient in competitive marketing is seldom
important for distribution in domestic markets of developing countries, where producers often
operate in a monopoly or oligopoly business climate. However, when the same products are
exported, they enter world markets facing severe competition form a large number of
experienced rivals. Promotional packaging then becomes a vital element in the marketing
strategy. Unfortunately, however, exporters in developing countries often neglect customers
packaging requirements.
People involved in package planning seem to have great difficulty in assessing the difference
between domestic and export packaging design. This may be attributed to ignorance about the
needs of their customers abroad. It is therefore very important to convince all those involved, at
all levels from government officials and export promotion bodies to the man on the factory
floor of the need for technically adequate and promotionally effective export packaging. This
problem is not peculiar to developing countries; it is widely encountered among exporters in
industrialised countries as well.
Many developing countries have centuries of experience in exporting their basic commodities
such as rubber, coffee, spices, rice, sugar, cotton or bananas. Business contacts have been
established generations ago, information exchange is good and no major problems are likely.
However, even in this sector, the rapid changes that are taking place in packaging technology,
handling methods and distribution systems may pose new, and difficult problems even for well
established exporters. A recent case in point was the search for an alternative to the traditional
plywood chest for bulk packaging of tea. This packaging method, originally intended for
shipments in the famous tea clippers has become outmoded as more tea exports are shipped in
freight containers. A move to change from the plywood chest to paper packaging had major
technical and economic consequences in Sri Lanka, for example, necessitating investment in a
full scale paper sack factory in that country.
Developing countries, however, will not be content for much longer to export their products in
bulk or semi-processed form, but will be striving for increased local processing of their
indigenous raw materials. There is much discussion of the necessity to upgrade export
earnings by keeping the added value that results within the producing country. This added
value concept will proceed slowly and involve difficulties in technology, trade policies and
marketing methods, but there is no doubt that the process has started and will accelerate.
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Export Packaging Note No. 30

At the same time much effort is spent on developing and introducing new products from new
exporters and on new markets. It should be noted that most trade promotion projects carried
out by the International Trade Centre in developing countries today concern so called nontraditional products, usually shipped in consumer units and consequently in many instances
also pre-packed for retailing. The trend towards local processing of traditional export
commodities and to the introduction of new consumer-packed products from developing
countries on the world market will mean that exporters have to pay increased attention to
customer requirements in industrialised countries. In many cases this will mean marketing
directly to consumers in target markets, using own brand names, and maintaining competitive
packaging designs and high quality levels. This will present new and often difficult problems for
the packaging industry in developing countries, as well as for the exporters. The latter are often
unfamiliar with the requirements of supermarket distribution systems, for example, and may
have difficulty in understanding the package design needs in their target markets.
In this context it is useful to mention some practical aspects of exporting from developing
countries which have influence on export packaging.
(a)
Much international trade is still made on a f.o.b. basis. Judging from numerous
conclusions in reports and surveys on export marketing, there seems to be unanimous support
for change to the c.i.f. basis of export pricing. There are several reasons for this, one being an
expectation of higher prices from new customers abroad who at present may not know how to
deal with importing f.o.b. However, experienced importers of products from developing
countries are familiar with procedures, but prefer to buy f.o.b. and in consequence, at the lowest
prices. Switching to trade based on c.i.f. pricing will automatically bring packaging into focus.
In their own interest, exporters will have to pay more attention to shipping volumes and weights,
thereby getting the opportunity to improve their packaging and, as a result their competitive
position in world markets.
(b)
Although the majority of developing countries are already actively engaged in introducing
container loading and handling facilities in their harbours, their present handling methods, road
conditions, trucking facilities, etc., often leave much to be desired, with resultant heavy
demands on the strength of transport packages.
In one harbour in the Far East, for instance, there were 15 fork lift trucks of which only two were
operational. This arose from destructive action by long shoremen who were afraid of losing
overtime pay or perhaps their jobs. Much of the strength of a package may already be lost on
its way from the producer to the port. There is however, little point in trying to introduce unitising
loads on pallets or in freight containers when few manufacturers have fork lift trucks in their
factories. The use of anti-skid adhesives and shrink/stretch films for pallet loads is also largely
unknown in most developing countries. For example it was as late as 1976 that the
International Trade Centre conducted the first experimental shipments of palletised citrus fruit
from Tunisia to France - a trade which has a substantial volume and long-standing tradition. An
enormous amount of work remains to be done in improving the infrastructure of most developing
countries to achieve better transport and handling conditions, all of which ultimately have an
important influence on packaging for export as well as for domestic markets.
(c)
An interesting aspect of the increasing need to supply pre-packed products to export
markets is the possible application for contract packing. At present many importers in
industrialised countries have to undertake pre-packing operations themselves at labour rates
which may be 20 to 50 times those in developing countries. The principles and advantages of
contract packing are however, almost unknown to producers and exporters in the Third World.
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For certain products it may well be feasible to set up local contract packing facilities at exporting
harbours or bonded warehouses. The goods would be received unpacked and the packing
operations would be performed centrally on behalf of a number of exporters. Such contract
packing stations could for instance:
-

Obtain packaging materials and packages on a joint purchasing basis, being allowed
duty free imports of any necessary high quality packaging which could not be
produced locally;

Reduce packaging costs through standardisation of box and crate sizes used;

Assist in the development and utilisation of indigenous packing materials in, for
example, cushioning applications;

Provide trained and experienced staff for packing operations and for loading freight
containers;

Provide machinery and equipment for co-operative use such as packing tables,
shrink, stretch, skin and blister packaging units, corrugated box making equipment,
heat sealers for plastic films, form-fill-seal and other filling and closing machinery,
and marking and labelling equipment.

The establishment of contract packing facilities for a variety of export products from developing
countries could solve export packaging problems through operation on a joint, co-operative
basis in cases where it would often be impossible for small or medium sized exporters to set up
their own packaging operations.
After these general observations about marketing and packaging of export products from
developing countries, the question naturally arises as to how the small producers can ever meet
the stringent requirements of target export markets. One possible answer to this question is the
organization of export co-operatives. Through co-operative efforts, producers/exporters can
keep abreast of current marketing and packaging techniques. To meet foreign buyers'
requirements in the future, joint collection of marketing and packaging information, joint bulk
purchasing of packaging materials, joint utilisation of packaging equipment (contract packing),
joint development of packaging specifications, consolidation of shipments and centralised
handling of export procedures can all make important contributions.
The greatest obstacle to establishment of joint export marketing groups in developing countries
is often a reluctance to co-operate amongst competing producers. Although in most cases
there is no reason to guard technical or commercial secrets, the exchange of experience and
know-how through mutual co-operation is often non-existent, even if all parties would gain
substantial economic advantage in the long run as a result of such joint action. The main task
of improving the competitive position on world markets is lost sight of when the next door
neighbour is considered the most dangerous competitor. Consequently the possibilities of
establishing national or regional packing standards for certain common products are also
reduced.

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A. EXPORT MARKET REQUIREMENTS

It can perhaps be stated that the main present problems facing both producers and users of
packaging are not dominantly technical in nature. Instead they are more related to compliance
with existing and future legislation.
Developing countries have to find answers to the following typical questions directly or indirectly
connected with legislative subjects:
- How will it be possible for producers/packers in developing countries to keep
themselves up-to-date on legislative developments in their target markets?
-

How will they be able to comply technically with such regulations in an economical
and practical way?

In the development of their own legislation and standardisation, which national policy
should they choose amongst the abundance of examples in other countries, or
should they go completely their own way?

In national plans for the development of the local packaging industry, how can a
developing country make safe, long range decisions regarding future investments,
including choice of the right packaging methods and materials?
These questions are difficult for industry in developed countries to answer and even
more so in the Third World. It is necessary to comment in more detail on the various aspects of
this subject.
-

One of the most important problems facing almost all exporters in developing countries
is a lack of information about laws, regulations and standards affecting packaging in target
markets, particularly in industrialised countries. The complexity of such regulations, the
variations from one country to another and constant changes and additions make it difficult for
producers and exporters to keep themselves informed about the regulations applying to the
design and construction of their export packages. This lack of information can lead to serious
consequences such as rejection of export shipments, non-acceptance of products by foreign
distributors and a damaged sales image among final consumers.
As long as developing countries continue to supply the world markets with basic commodities
and raw materials packed in bulk, such as sugar, tea, spices and even fresh fruit and
vegetables, compliance with existing regulations and standard specifications may be fairly easy.
Sudden changes in these, however, usually bring about severe technical and economic
consequences for exporters in developing countries. Hygiene-oriented legislation regarding the
use of cotton and jute (burlap) as food packaging materials, or the acceptability of wooden
crates and boxes in the face of waste disposal and anti-pollution legislation are more obvious
examples.
The situation is aggravated by the trend towards local processing of traditional bulk
commodities (the added value concept) and the introduction of non-traditional consumer packed
products on the world market. This means that exporters in developing countries have to pay
increased attention to compliance with existing laws, regulations and standards in importing
countries.
Looking at the rather variable packaging situation in industrialised countries, the complexity and
speed of packaging evolution and at the same time knowing the restraints facing most exporters
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in developing countries, it is difficult to formulate definitive recommendations as to how an

exporter can ensure compliance of his/her export packages with target market requirements in
an economical and practical way. Most laws, regulations and standards are no doubt created to
suit local conditions in each country concerned. The possibilities of compliance have therefore
usually been studied before the introduction of such legislative measures. Sometimes
government actions, however, seem dictated by politics with little consideration of their impact
on producers and packers. Seen through the eyes of exporters in developing countries, such
measures may appear to be even stranger and are sometimes considered as invisible trade
barriers. In most cases the intention is not to impede imports from developing countries, but
since imported products must be treated in the same way as locally produced goods, the
regulations imposed may amount to trade barriers since they are difficult for producers and
exporters in developing countries to fulfil.

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B. SCOPE OF LAWS, REGULATIONS AND STANDARDS

AFFECTING PACKAGING IN IMPORTING INDUSTRIALISED
COUNTRIES
To demonstrate the complexity of problems faced by exporters in developing countries in
complying with laws, regulations and standards in their industrialised target markets, it is
necessary to review the different categories of mandatory or voluntary measures which may
influence the choice of packaging materials, package constructions and labelling of packages.
These measures may be classified, as follows:

1. Laws and regulations related to types of packaging materials and their

ingredients, allowed or prescribed for various products and aimed at
protecting the consumers' health and safety
Examples are materials approved for use in direct contact with food products, packaging of
dangerous goods, child resistant closures and propellants in aerosols. How can a producer or
packer in a developing country keep himself up-to-date on legislative developments in various
target markets regarding use of PVC, or check that the amount of vinyl chloride monomer in his
PVC packaging does not exceed the allowed maximum? How can he ascertain whether the
packaging material he uses is approved in each target market? Will he get a certificate to this
effect from his supplier and will the certificate be accepted in the importing country?

2. Laws, regulations and commercial practices related to fair trade practices and
aimed at protecting the consumer against misleading packaging and labelling
These could include misleading size statements or illustrations, and oversized or underweight
packages. In many cases the legal text outlining such fair trade practices is rather vague, and
restrictive action may be taken not only by law makers but also by competitors through bodies
such as chambers of commerce and consumer unions. Producer and packers in developed
countries often find it difficult to interpret fair trade regulations when introducing their products
and trade names, even on their home markets. Any exporter in a developing country will face
serious practical problems in handling such situations without getting into trouble, and
unconscious infringements of patent or copyright laws can also easily occur.

3. Laws and regulations related to mandatory or voluntary information to be

given to consumers about the packed product
Under this heading is information about composition, ingredients, origin of manufacture and
weights and measures. The biggest difficulty in this context is that regulations vary from one
country to another. To start with, at least, an exporter in a developing country must often test
markets products in a number of target markets simultaneously to evaluate his best future
export strategy. This leads to problems of label design and language used in texts in order to
comply with requirements in each separate market. The same difficulties are of course
encountered by developed country exporters, but they can usually be selective in their choice of
target markets and because of the larger quantities produced for each market, can justify
individual designs. Additional examples of difficult problems for exporters in developing
countries include mandatory declaration of nutritional values and open date marking of food
products and informative labelling of garments, electrical appliances, etc. Present and, more

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importantly, future requirements for health certification, quality control seals etc., for perishable
foods such as meat, and dairy products, will create additional difficulties for exporters of those
products from developing countries.

4. Laws and regulations related to the protection of the environment

These can include fiscal duties on non-returnable packages, total bans of certain types of
packaging materials and antipollution laws applying to package disposal. Lightweight, nonreturnable packaging is usually necessary for all products exported, often over great distances,
from developing countries. However, non-returnable packaging is precisely what environmental
activists are against. Theoretically one might propose, for example, that developing countries
could pack any exported beverages in bottles which would be accepted as returnable in target
markets. However, such bottles would be heavy and thus costly to transport, and it is unlikely
that they would meet the technical specifications required by fast, fully automatic bottling lines in
the importing country. Possible requirements for biodegradable or otherwise environmentally
preferred plastic packages could also create technical difficulties for packaging industries in
developing countries.

5. Mandatory or voluntary international and national standards for packaging

sizes, weights or measures for different product groups, officially or
unofficially accepted and/or used by transporters, wholesalers or retailers
(e.g. canned food, fruit and vegetables, fish, pharmaceuticals, garments,
shoes, etc).
An exporter in a developing country is entitled to feel utterly confused when, for example, trying
to find out what pallet size to use, whether 1000 x 1200, 800 x 1000 or the many other sizes
required for containerised and air freight shipments. The exporter's packages must be designed
to fit into the highly standardised and mechanised supermarket distribution systems of today,
probably varying from one target market to another. Compliance with and even comprehension
of the rather complicated railroad and truck specifications for packaging, for instance in the
United States, will be another difficulty. The necessity to print Universal Product Code symbols
on consumer packs will pose new technical and administrative problems.

6. Regulations related to import procedures such as marking of goods for

transport, customs clearance and correct handling
The requirements in this category are probably the easiest to meet. Freight forwarders in
developing countries usually have reference documents on the marking rules to be followed for
export shipments to various destinations. Most of the rules are uniform and vary little from one
country to another; ISO standard handling marks are universally accepted. The only difficulties
for exporters are related to obtaining the necessary labels, stencils, inks, etc.

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C. EXISTING RESTRAINTS
It is logical to ask why exporters in developing countries seem in a more difficult position
than their colleagues in the industrialised world. There are several reasons, best understood
and acknowledged by those who have been exposed to the actual situation in developing
countries. It is therefore necessary to mention a few of them, for instance:
(i)
General lack of information about importing countries regulations and practices.
(ii)

Lack of knowledge about sources of such information.

(iii)

Difficulties in keeping acquired information up to date.

(iv)

Language problems.

(v)

Practical difficulties in correspondence, mail service, lack of telex and photocopying

facilities, etc.

(vi)

High packaging material prices and printing costs.

(vii)
Technical difficulties in meeting specifications for packaging required in target markets.
The combined impact of these restraints makes the situation extremely difficult in practical
terms. How is it possible for an exporter in a developing country to keep himself informed and
up to date on the various regulations issued by FDA, BGA, FAO/WHO, ISO, ECE, EEC, IATA,
etc? It is easy to suggest measures to be taken: asking the local embassies; sending requests
to trade commissioners abroad; subscribing to newsletters, magazines or specialised services;
purchasing the relevant legal texts, and going there to find out. In fact, however, it is not so
simple. One of the easiest ways, of course, is to consult the importers and customers, but this
leads to a weaker marketing position and greater dependency - both of which are undesirable
for any exporter. Some importing countries such as Australia, Germany, the Netherlands,
Norway, Sweden, Switzerland, and the United States are trying to lessen these difficulties by
providing exporters from developing countries with special services and information.

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D. INFORMATION SYSTEMS
International trade in pre-packed consumer products is increasing in keeping with the growing
economic and political interdependence of between all countries in the world. For many
reasons, not least their hitherto little exploited agricultural and industrial potential, developing
countries can be expected to assume an increasingly important role as suppliers of food and
manufactured goods in the future. At the same time, however, the laws, regulations and
standards concerning consumer packed products are becoming more and more complicated,
not least in terms of variations from one country to another. It will therefore be increasingly
difficult, both in trade between industrialised countries themselves and between them and the
developing countries, to handle problems of compliance. Indirectly, and in most cases
unconsciously, barriers are being created against exports from developing countries, and the
main task for exporters is to keep up to date on the status of regulative measures in their target
markets.
One solution to this problem would be to establish a centralised information service on all laws,
regulations and standards in at least the major industrialised target markets. Maintaining this
file and keeping it constantly up to date would, however, incur heavy administrative expenses.
It would also be difficult for a centralised body to keep itself informed about sudden legislative
changes and about ongoing work of governments and concerned organizations in the
respective countries. Consequently, information supplied through a centralised service would
always have to be provided without obligation and the organization maintaining the service
could not take responsibility for its accuracy. For this reason, ITC has not as yet suggested the
establishment of such a centralised service, although the need for this type of information is
badly felt by all exporters all over the world. Improving communications and data processing
may in due course enable ITC to introduce such a service.
Anticipating that it would be easier and more effective for a national organization, such as a
local government agency, or national packaging institute, to maintain a file on its national laws
and regulations affecting packaging, ITC has approached a number of such bodies in European
countries to establish a network of local contact points in industrialised countries. These
contact points would have responsibility for to keeping up-to-date files on all relevant national
information on the subject. It has been suggested that this be done by assigning one person as
a liaison officer in each country responsible for collecting the information, keeping it up-to-date
and disseminating it in response to requests from exporters in developing countries interested in
selling their products to that particular market. An additional benefit of this system would be that
the network of local contact points could also serve the needs of trade between the developed
countries themselves.
Considering the amount of regulations already in existence in various countries and the even
larger amount of such regulations being presently processed and discussed in governmental,
multi-governmental, and non-governmental bodies throughout the world, it must be considered
extremely important to create a system, whereby exporters in developing countries can
overcome present and future information and compliance problems.

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E. PACKAGING LEGISLATION IN DEVELOPING COUNTRIES AND

ITS IMPACT ON THE DEVELOPMENT OF A LOCAL
PACKAGING INDUSTRY
Although very few developing countries at present have introduced national legislation related to
packaging, consumer protection or preservation of the environment, many of them are already
planning such legislation. Most countries still using imperial weights and measures are actively
engaged in metrication schemes.
This automatically brings packaging standards and
regulations into the picture. At the same time consumer-related legislation is seen by many
governments as a practical necessity or as a means of obtaining political advantage.
Regulations in connection with grading and pre-shipment quality control, especially for exported
products, will also increasingly contain in the future specifications and standards for packaging
materials and methods.
In order to avoid a total confusion in the future, an internationally co-ordinated effort to provide
guidance to legislative bodies in developing countries therefore seems to be urgently needed.
Unless at least the basic issues are treated in the same way in all countries, the subsequent
process of harmonisation will be very long and laborious - a magnified version of the work which
is undertaken today by the European Economic Community (EEC) and other international
organizations such as the United Nations Conference on Trade and Development (UNCTAD),
General Agreement on Tariffs and Trade (GATT), the Joint Food and Agriculture Organization
of the United Nations (FAO) and the World Health Organization (WHO) Food Standards
Programme.
The technical and economic consequences of future packaging and consumer legislation upon
national industrial development plans are very difficult for governments and private sector
industry in developing countries to forecast. This problem might be best illustrated by a few
questions:
(i)
What is the best and safest choice between investments in jute (or some other vegetable
fibre), woven plastic or multiwall paper sacks?
(ii)

Will the market accept wirebound, lightweight wooden boxes for fruit and vegetables in
the future and should a wirebound box manufacturing operation be started?

(iii)

Will it be safe to invest in production of PVC bottles?

(iv)
How about a packing line for aerosols or production facilities for easy opening can ends?
The answer to these and many other questions may ultimately be affected by legislative action.
Considering the importance and economic consequences of decisions taken by governments
and industry in developing countries, when allocating scarce financial resources for investment
in new production facilities, it is evident that a continuous and qualified flow of information about
trends and actions elsewhere in the world becomes crucially important. Unfortunately, no such
co-ordinated information is available and investment decisions are therefore often based on
inadequate facts. In addition, they are often influenced by the energetic action of ambitious
salesmen who have no responsibility for the interests of the country as a whole.

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F. PACKAGING AND PACKING MACHINERY

Technical problems facing developing country exporters in connection with
mechanisation of their packaging processes are only indirectly related to this subject. Most
products, however, have to be produced and packed for export in quantities that can no longer
be handled manually and it is therefore necessary to introduce mechanisation means in the
production, packaging and materials handling processes.
The general comments made in this context are equally valid for packaging production
machinery and for packing machinery used by producers to pack their products. No distinction
between these two types of machinery is therefore made.
In most developing countries, it is difficult to achieve reasonable productivity with existing
machinery, which is often in poor condition. It is also difficult to find simple, reliable, low-speed
machines on the market. Unfortunately, the solution to shortages of certain packaging is often
thought to lie in construction of a new factory, with consequent financial commitments, whereas
a better remedy might be to improve productivity at an existing installation. In cases where
investment in new machinery has been made, it is often operated at very low productivity rates.
What is needed is positive effort by leading manufacturers of packaging machinery in
industrialised countries who are genuinely interested in working with developing countries and
in adapting their products to the special conditions in such countries arising, for example, from
the labour situation or the climate. They should also have a well-established network of sales
offices or agents in those countries and be prepared to provide spare parts services,
maintenance and training on a long-term basis.
Unfortunately, there are many reasons for pessimism in dealing with this problem, for instance:
(a) Many leading machinery manufacturers are today pre-occupied with the objective of
producing faster, more automated and less labour-intensive machines. These are
generally unsuited for the volumes handled by producers in developing countries.
These companies are also ones that have worldwide sales and service networks at
their disposal. An unfortunate result of this is that in some cases developing
countries have been "oversold" with machinery that is too fast and too complicated.
Such investments may turn out to be expensive "status symbols" which cannot be
operated to capacity and often give mechanical trouble. Electronic monitoring
devices and delicate mechanical components are particularly prone to malfunctions
in tropical climates.
(b) There are undoubtedly many small and reliable manufacturers who have developed
slow or medium speed machines, which would perfectly suit the needs of developing
countries. These companies, however, often operate only nationally, and have no
experience in exporting their machinery, or of providing after-sales service over great
distances. Language problems and export pricing and documentation may also be
important obstacles.
(c) Regarding the need to adapt machinery to meet the particular requirement
customers in developing countries, the worst problem seems to be difficulty
understanding the prevailing labour conditions. For example, it was difficult
convince a manufacturer of slow speed vertical carton fillers to strip his machine
its automatic blank feeding device and substitute manual feeding.

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11

of
in
to
of

(d) Most manufacturers of packaging machinery and materials usually consider

overseas countries as marginal markets - necessary when business is bad but
uninteresting when the demand is sufficient in their traditional markets. This
inconsistency in marketing policy may be economically justified, but is very difficult
for customers in overseas countries to understand and accept.
Since one of the major problems for industry in developing countries seems to be nonavailability of machinery suited to their particular needs, the question of utilising reconditioned,
second hand machinery should be seriously investigated. While most new machinery available
on the world market today is too fast and often too sophisticated for use in many developing
countries, a vast amount of older, slower machines, well maintained and in good working
condition, are in storage throughout Europe and the United States because they no longer meet
present productivity standards. Industrialists and governments in developing countries are,
however, suspicious - and with reason - of second hand machinery in general. Much worthless
machinery found its way to developing countries in the past through the hands of irresponsible
salesmen. As a result many developing countries have even introduced legislation, explicitly
prohibiting imports of any kind of second hand machinery. To re-establish the image of used
machinery and to study all investment alternatives including second hand equipment, with the
correct economic perspective, some form of centralised action is needed. Ideally, there should
be an impartial evaluation and certification body or other quality control and checking
arrangements for second hand machinery. One possibility is that the original machine
manufacturer assumes responsibility for the quality of used models as well, another is that the
seller himself installs the machines and accepts responsibility for operation over a certain time
period.
Concerning maintenance, service and supply of spare parts, it is clear that the less complicated
the machine, the easier it is to service and to provide spare parts locally. It is impressive to
observe the skills of mechanics and technicians in developing countries when emergencies
arise. The ability to improvise and make use of whatever materials are at hand is no doubt a
result of long experience of operating in conditions of shortage. Many packaging producers in
developing countries have found it necessary to acquire complete workshops; a manufacturer or
rigid plastic packaging in Cairo, for instance, has built up a well equipped workshop, not only to
make the necessary moulds for his production, but also to make his own spare parts. At this
point one might ask why the spare parts are not ordered from the factory to be delivered by air
freight - no countries are further apart than 48 hours by plane. It is difficult for people operating
in an industrialised society to appreciate all the obstacles arising from import licensing, foreign
currency allocations, customs clearance formalities, etc. for each spare parts purchase,
however small. In many cases the machines are obsolete and have been dropped from the
manufacturing programme years previously. It is sometimes possible to see machinery that
belongs in an industrial museum, still in non-stop production in developing countries. Beautifully
decorated cast iron machine frames from the early years of this century, for example, observed
on the island of Fiji on a twist wrapping machine for candy, over 100 years old, are an
impressive and nostalgic sight. However, even if such machines serve as examples of what
can be achieved through good maintenance, they no longer meet the productivity requirements
of even the least developed societies. They are, however, still very common in many
developing countries.
In conclusion, it is felt that a world-wide inventory of appropriate packaging machines types and
reliable suppliers should be undertaken to serve as a guide for purchasers in developing
countries. As the situation is today, many such investment discussions are made on
inadequate grounds, sometimes resulting from the visit of a passing machine salesman,
sometimes at the whim of a company president visiting a machinery show abroad. In addition,
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guidelines for purchasing and specifying machinery should be widely distributed to industry in
developing countries. They should be accompanied by specific advice on how to include
provisions for operator training, installation and running-in, maintenance and spare parts supply.
Perhaps most important is to provide for follow-up auditing of the machine function with its
supplier after, for example, one year of operation. There are many machine installations where
productivity has dropped considerably after the installation mechanics left, with no prospect of
improvement unless the supplier takes follow-up action. In this context should be mentioned
the initiative of the Packaging Machinery Manufacturers Institute (PMMI) of the United States in
publishing comprehensive training materials for packaging machine operators, mechanics and
maintenance personnel. In a somewhat adapted and simplified version, this training material
could find application in the developing world, and it is already being used in several Latin
American countries.

International Trade Centre UNCTAD/WTO

Export Packaging Note No. 30

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G. TECHNICAL ASSISTANCE IN EXPORT PACKAGING

RENDERED BY ITC
The International Trade Centre UNCTAD/GATT was established at the request of developing
countries to aid these countries to expand their export trade, in furtherance of their economic
development efforts. Commencing in May 1964 under the aegis of the General Agreement on
Tariffs and Trade (GATT), ITC has, since January 1968, been jointly sponsored by the United
Nations Conference on Trade and Development (UNCTAD) and GATT. Its work programme
and activities are determined by the governing bodies of UNCTAD and GATT on the basis of
recommendations made annually by the Joint Advisory Group on the International Trade Centre
UNCTAD/GATT, an inter-governmental group of experts on trade promotion drawn from
Member States of both UNCTAD and GATT. ITC is recognised as the focal point of United
Nations trade promotion programmes, which are subject to periodic review by the United
Nations Economic and Social Council.
In assisting developing countries to formulate and implement trade promotion programmes, the
Centre provides information and advice on export markets and marketing techniques, helps to
develop export promotion and marketing institutions and service, and trains the national
personnel required for these activities. Depending on the needs of the country, assistance is
provided through individual advisers, or more frequently, through integrated programmes taking
the form of a comprehensive group of phased activities covering a wide range of export
promotion needs. Assistance from ITC is freely available to all developing countries in the
context of their national economic development objectives, particular attention being given to
the needs of the least developed. This assistance is financed either from contributions by
individual countries or from funds allocated under the United Nations development Programme
(UNDP).
The importance of packaging as an export promotion tool is recognised by ITC and many of its
projects and programmes in export trade promotion include elements of specialised technical
assistance in packaging. Since 1973 the ITC headquarters staff in Geneva has provided
advisory services in export packaging under the following basic terms of reference:
(a) To undertake advisory missions to developing countries in response to government
requests with the objectives of:
- Assessing export packaging problems through contacts with manufacturers and
users of packaging in the country. In connection with his field missions, export
packaging advisers also usually conduct one-day workshop with discussions on
export packaging techniques and problems.
- Resolving particular urgent packaging problems encountered by individual exporters.
- Defining the need for further technical assistance in export packaging to be included
in on-going or planned trade promotion projects and programmes, and advising
governments and ITC on the most effective ways of carrying out such assistance.
- Supervising the implementation of such assistance.
(b) To participate in ITC training programmes in Geneva and in the field by making
presentations on packaging and its role in export marketing.
(c) To undertake research work into problems of packaging of general interest to
exporters in developing countries, to present the findings in the form of reports and
documents and to answer ad hoc requests regarding export packaging problems in
developing countries.

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The work programme of ITC's advisers on export packaging is supported by project budgets
covering their salaries and travel costs and financed through grants to the Centre by the
government of Finland as part of its assistance to developing countries. Fact-finding missions
of short duration are usually covered by funds from these budgets.
To the extent that the services of ITC's export packaging advisers are used and provided for
within existing integrated trade promotion projects, their time and travel will normally be costed
against such projects. Usually there are good possibilities of combining field missions to
several countries, thereby dividing the travel costs between different projects. Request for
assistance in export packaging problems should be addressed through the relevant
Government authorities to:
International Trade Centre UNCTAD/WTO
Division of Trade Services
Palais des Nations
CH-1211 Geneva 10
Switzerland

International Trade Centre UNCTAD/WTO

Export Packaging Note No. 30

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