How to Export to Bulgaria

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Bulgaria became a member of the European Union on January 1, 2007.
How To Export To Bulgaria

Customs Valuation
Customs valuation is based on the transaction value Ò the price actually paid or payable for the goods when sold for export to Bulgaria, defined in Bulgarian levs. The dutiable value is CIP consisting of the purchase price, transportation costs, insurance charges, commissions, royalties, license fees and all other expenditures associated with the transport (e.g., loading and unloading) for delivery to the Bulgarian border.

Duties

Duties vary by the good that is exported. Tariffs range between 5 percent and 40 percent on industrial products and 5 percent and 70 percent for agricultural products. The average tariffs applied to imported manufactured goods and agricultural products are 10 percent and 22 percent, respectively. Import duties are ad valorem for agricultural products; some products such as meat have minimum import duties. CEEBIC can provide the duty rate (Tel: (202) 482-2645) if the exporter supplies the Harmonized code for the good. For more information on tariffs for IT products, click here. As part of the EU accession process, all new members must abandon their own trade policy and adopt the trade benefits and customs duties of the EU, which in most cases will mean lowering and/or eliminating tariffs on an increasing number of products coming from the U.S. However, some U.S. products may continue to face higher rates as compared to European competitors. U.S. companies can look up the EU's customs duty rates here.

Harmonized codes can be found on the Internet by running a key word search on the Census Bureau website at: http://www.census.gov/foreign- trade/schedules/b or by calling the Census Bureau (Tel: (301) 763-3259).

*The duty is assessed on the CIF, or cost, insurance and freight.

Taxes on Imported Vehicles
These taxes apply to imports of new and used buses and other vehicles with ten or more seats, passenger automobiles, sport utility vehicles, light trucks, ambulances, vans, minivans and campers. Calculation of applicable duties and taxes starts with determination of the customs value. Then any duties are assessed, resulting in the landed (customs-paid) value. According to the Bulgarian Excise Tax Act, all new and used passenger vehicles with an engine greater than 120 kW (Deutsche Industrie Norme, DIN) (1 kW = 1.36 horsepower, hp) or 128 kW (SAE) (1 kW = 1.36 hp) are subject to a 40 percent excise tax assessed on the landed value. All duties and taxes must be paid in the Bulgarian currency. The customs value of all new vehicles imported into Bulgaria is the invoice value. For all other gasoline-engine vehicles, the duty is 10 percent if the engine displacement is up to 3,000 cc and 12 percent if greater than 3,000 cc, with special rates depending on engine displacement varying from 5 percent to 13 percent for ambulances and from 13 percent to 15 percent for campers. For all diesel-engine vehicles the duty is 10 per cent. The customs value of used, imported vehicles is not the invoice value, but a calculated value that depends on the power of the engine measured either in DIN horsepower, SAE horsepower or kilowatts. The customs value calculated as above is reduced for vehicles at least one year old as of the date of its import into Bulgaria. The customs value of vehicles more than one year old but less than two years is reduced 20 percent, vehicles between two and three years old 30 percent, three and four years old 40 percent and four or more years old 50 percent. For buses and other vehicles with 10 or more seats, if the engine is rated in hp per the DIN standard, the dutiable value is calculated by multiplying the hp by the equivalent of $100. If the engine is rated in hp per the SAE standard, the dutiable value is calculated by multiplying the BGN equivalent of $95. If the engine is rated in kilowatts (KW), the dutiable value is calculated by multiplying the KW by the BGN equivalent of $136 (DIN) or $129 (SAE). The duty rate is 25 percent for buses and 10 percent for other such vehicles.

Value-Added Tax (VAT)

The VAT is a European type of sales tax that is applied at all stages of production of a good, including export/import transactions. All products are subject to 20 percent VAT.

*The VAT is assessed on the CIF plus the amount paid on duties.

Excise, Consumption and Luxury Taxes

The Law on Excise Taxation imposes additional taxes on: beer, wine and spirits; cigarettes and tobacco; gambling equipment; leather products and fur coats; coffee and tea; jewelry and precious metals; perfumes and cosmetics; color televisions, video, digital and stereo equipment; matches and butane/gas pocket lighters; gasoline and diesel oil; automobiles.

Exemptions

* Temporary Entry
Commercial samples may be imported free of duty when they are of negligible value. Otherwise a temporary import procedure for up to 6 months (with the option to extend) must be followed from a prior agreement with Bulgarian Customs. Bulgaria is a party to the Customs Convention on Carnet (ATA) for Temporary Imports of Goods. For more information on ATA Carnets, contact the U.S. Council for International Business at 1-866-7-UNLOCK or visit http://www.merchandisepassport.org.
* Free Trade Zones/Warehouses
The Black Sea ports of Varna and Bourgas have modern facilities, as do the two main Danube ports of Vidin and Rousse. Good railway links exist at all ports.

Warehouse facilities are available in the major towns and in the six duty-free zones at Bourgas, Rousse, Vidin, Plovdiv, Dragoman and Svilengrad.

* Free Trade Agreements
Bulgaria has free trade agreements with Albania, Bosnia-Herzegovina, Croatia, Macedonia, Moldova, Israel, Romania, Serbia and Montenegro, Slovenia, Turkey, and all of the EU member states. The country also has a treaty with the European Free Trade Association (EFTA).

Import Documentation

The Regulations for the Application of the Law on Customs require a certificate of origin, commercial invoice, insurance invoice, bill of lading and packing list for all imported and exported products. In some cases, additional information may be required such as receipt of payment of customs processing fees, bill of health and certificate of import/export (authorization or license). Agricultural products require a certificate of quality and origin, a veterinary or phytosanitary certificate and other applicable health and safety certificates. New regulations now require a bilingual veterinary certificate for all imported meat, poultry, feed and other animal products to be approved by the Chief Office of the National Veterinary Medical Service.

Prohibited Imports
Bulgaria prohibits imports of ozone-depleting products, ivory, rare birds and other internationally banned products.

Import Licenses and Registration

The list of goods subject to registration is changed quite often. For 2003 and 2004, the list was only three commodities including alcohol, CD preforms, and polycarbonates for CD manufacturing. In principle, the purpose of registration is to monitor the movement of some "sensitive" goods such as textiles and metals, or food products that have been in short supply on the domestic market for a certain period: some types of meat, dairy products, sunflower and vegetable oils. These products will receive an automatic license within one day of receipt of application in the Ministry of Economy and Ministry of Agriculture. Applicants are required to present a certificate from the court in which their incorporation was registered and a certificate of tax registration. Other substantiating documentation may be required: a contract, pro forma invoice, order, tax number, certificate of origin and/or a certificate of quality.

Decree Number 307 requires that certain products must receive authorization prior to importation. This is a non-automatic licensing process. Authorization, in the form of an import license, is normally issued within two days of the Ministry's receipt of the application. Applicants are required to present certificates from the court and tax registrations as well as supporting documents (enumerated above). Imports of pharmaceuticals also require a copy of the license for wholesale trade.

Appeals following the Ministry of Economy's denial of a license must be made in writing to the Ministry of Economy within five days after the issuance of the decision. The Minister is required to render a final opinion within five days of receipt of the appeal. The Decree on Bulgaria's Trade Policies in 2002 provides for licensing of the import of gold, silver, platinum, opiates, nuclear materials, explosives, arms, endangered species of animals and plants and some herbicides.

Quotas

Several decrees state that certain goods are subject to quotas where the tariff is reduced or waived completely. The sizes of the quotas are determined by calendar year. The Ministry of Economy, through a tendering process or auction, distributes quota allocations. No single applicant may receive a quota allocation larger than 35 percent of the total.

In 2003, duty-free import quotas apply temporarily to some additional commodity groups. The goods covered by this import preference are agricultural insecticides and herbicides. Under a separate list, engines and spare parts for agricultural machines are also covered.

Export Licenses

Most high-tech Western technology can flow into Central and Eastern Europe without a U.S. export license. However, the goods that need an export license are different for every country and the list constantly changes. Generally, defense products and equipment such as optical equipment and software that may have a dual usage do require an export license. Export licenses can be obtained from the Bureau of Industry and Security (BIS) (formerly, BXA at the U.S. Department of Commerce). BIS coordinates the licensing process with the Departments of State and Defense. If an exporter has a good that may need a license, the Export Commodity Control Number (ECCN) must be determined from the manufacturer. The number can also be obtained by filling out the BIS-748 Multipurpose Form, available by calling BIS's form request line (Tel: (202) 482-3332). This form also serves as the application for the export license itself. For specific questions about Export Licenses, call (202) 482-4811.

Standards and Quality Control

Upon arrival, products for human consumption should be analyzed in approved local laboratories in cooperation with local authorities. The Bulgarian Institute for Standardization strictly enforces Bulgarian quality standards, which do not always coincide with generally accepted international standards. Foreign certificates may or may not be considered adequate. After approval is issued, the commodities may be sold on the local market.

The Bulgarian Institute for Standardization is the competent authority for standardization, verification, editing and registration of standards for industrial commodities, machinery and transport equipment, construction and materials, chemistry, textiles, foodstuffs, electrical engineering commodities. The Bulgarian Institute for Standardization has signed a Mutual Recognition Agreement with the ASTM International - American Society for Testing and Materials.

The Ministry of Agriculture and Forestry is responsible for agriculture and food product testing and certification and conformity assessment.

The Bulgarian Drug Agency (BDA) is the responsible authority for pharmaceuticals products and establishes standards and performs testing and certification and is also responsible for drug registration. The Ministry of Health is responsible for establishing standards for medical equipment and some medical and natural products; as well as the certificate, registration, and import licensing procedures for these products. Some of these activities are carried out jointly with BDA.

The Ministry of Economy is the designated authority for harmonizing Bulgarian national standards with EU standards.

Labeling and Marking Requirements
The 1995 Law on Prices regulates labeling and marking requirements. Labels must contain the following information: quality, quantity, ingredients, certification authorization number and manner of storage, transport and use or maintenance. The product must be clearly marked with the date of production, expiration date and warranty period. All labels require metric units although dual labeling is also acceptable. Due to the implementation of EU legislation, labels must also contain the recycable content of the packaging material. The above information must be printed in Bulgarian.

Useful Addresses

General Customs Directorate
Director: Mr. Assen Assenov
1 Aksakov Street
1040 Sofia
Bulgaria
Tel: (359-2) 985-944
Fax: (359-2) 980-6897

Bulgarian Institute for Standardization
21 Sixth September Street
1000 Sofia
Bulgaria
Fax: (359-2) 980-6317
E-mail: standards@bds-bg.org
Website: http://www.bds-bg.org/EN/index_en.html

Bulgarian Drug Agency
26, Yanko Sakazov Blvd.
1504, Sofia, Bulgaria
Tel: +359 2 943 40 46
Fax: +359 2 943 44 87
E-mail: bda@bda.bg
Website: http://www.bda.bg/