How to Export to Romania

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How to Export to Romania
On January 1, 2007, Romania became a member of the European Union.
How To Export To Romania

Customs Valuation
In Romania, customs duties are ad valorem duties. For most items, customs valuation is based on the contract value (i.e. transaction value). Customs duties must be paid at the time the goods are imported into Romania. The customs value of imported goods is based on: a) the price of the good in its country of origin, converted into lei at the market exchange rate; and b) charges not included in the price of goods, such as freight, handling and insurance on external routes. Romania values goods on the basis of the WTO Valuation Code (Article VII of GATT).

If documentation concerning the value of imported goods is not available, the specific World Trade Organization provisions will apply; import prices usually charged for such goods or similar items could be then used as the basis for valuation. When the customs office has reason to doubt the accuracy of the information supplied or documents presented for the purpose of customs valuation, it can require the importer to submit additional documents or evidence.

If such documents fail to prove the declared value, the Customs Authority may decline to apply the transaction value method, providing the importer with a written decision upon request. In such cases, provisional customs clearance may be granted on condition that the importer submits a guarantee for the maximum amount that the customs debt could be. If, within 30 days of such provisional clearance, the importer fails to present the requested documents to Customs, the clearance is deemed final.

Duty
Duties vary by the good that is exported. Each product has a harmonized system number (also known as a Schedule B number), which identifies the product internationally. Harmonized codes can be found on the Internet by running a key word search on the Census Bureau Web Site or by calling the Census Bureau (Tel: (301) 763-3259 or (301) 763-3047). The specific duty rates are published in the Romanian tariff schedule based on this harmonized System of classification and CEEBIC (Tel: (202) 482-2645) can provide the duty rate if exporter supplies the Harmonized code for the good. For more information on tariffs for IT products, click here.

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

For Romania, the typical duty ranges from 3% to 30%, although there are though products, which suffer higher duty rates. The weighted average of customs duty is 11.7 percent with notable exceptions for ores and fuels, for which the taxation is zero or reduced to 3-10 percent and for industrial equipment duties are generally about 15 percent ad valorem. The duty is calculated on the customs value of the goods (excluding excise and VAT) determined in accordance with WTO principles. Additionally, a customs commission of 0.5% is levied on the customs value of the goods imported.

Import Tax
There is a 2% import tax in Romania.

Value Added Tax (VAT)
The Value Added Tax (VAT) is a European type of sales tax that is applied to all goods, both domestic and foreign, sold within Romania. In Romania, the VAT rate is 19%.

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

Excise, Consumption, and Luxury Tax
Excise taxes are applicable to some manufactured or imported goods, at the following rates:

# tobacco products
# cigarettes 8 ECU/1000 cigarettes plus 20% tax
# fuels between 6% and 15%
# spirits between 100% and 150%M
# wines 20%
# beer between 55% and 70%
# coffee 80%
# perfume 20%.

A tax increase which is now in effect, affects taxation of newspapers and magazines, gambling, cigarettes, duty free shops, and possibly in the future, corporate advertising in newspapers and magazines. The new ordinance imposes an increase in the excise tax on gambling from 20% to 30%. The yearly charge per roulette table has been increased from 30,000 ECU to 60,000 ECU. The corresponding charge per card table has been raised from 20,000 ECU to 40,000 ECU. With regard to alcoholic beverages, a tax increase from 200 ECU/hectoliter to 220 ECU/hectoliter for pure alcohol has been implemented. For the first time, this includes domestic production. Duty free shops now face a 10% revenue tax.

Exemptions
Exemptions include the following:

1. Samples and models with no commercial value, as well as promotional materials.

2. Goods classed as humanitarian materials or as legacies.

Exemptions from the VAT: healthcare, scientific, educational, and charitable activities, banking and financial services, insurance, and schoolbooks editing.

Temporary Entry
Goods brought temporarily into Romania for repairing and re-export are placed under the inward processing regime. The inward processing relief operates either through a "duty suspension" or a "duty draw back" method. The "duty drawback" system permits a refund of import duties previously paid at the time that the goods in question are exported from Romania after having been transformed, processed or repaired or after having been incorporated into products being exported. Therefore, under the "duty suspension" method the importer should not pay duty at importation and will become liable to duty if later places any products onto Romanian market. Under this structure the importer will only guarantee the import duties through a bank letter of guarantee. For more information on ATA Carnets, which facilitate temporary entry, contact the U.S. Council for International Business at 1-866-7-UNLOCK or visit http://www.merchandisepassport.org

Free Trade Zones/Warehouses
Free Trade Zones (FTZs) operate under Law No. 84/1992. General provisions include unrestricted entry and re-export of goods as well as exemption from customs duties and value added tax (for specific activities performed inside). They also include an exemption from profit taxes for the duration of a company's operations in the FTZ. The law further permits the leasing or transfer of buildings or lands for terms of up to 50 years to legal person or natural persons, Romanian and non-Romanian. The administration of each FTZ is responsible for all activities performed within the zone. FTZs are under the authority of the Ministry of Public Works, Transportation and Housing.

Currently, there are six FTZs: Sulina (located at the mouth of the Danube); Constanta-Sud Agigea (located close to the port of Constanta, at the entrance to the Black Sea-Danube Canal); Galati (located about 100 km from the Danube mouth); Braila (located 30 km up the Danube from Galati); Curtici-Arad (located about 30 km from the cross border with Hungary); and Giurgiu (located on the Danube, 60 km south of Bucharest).

Membership in Free Trade Agreements
Romania is a founding member of the World Trade Organization, has ratified most codes from the Tokyo Round, and has been an active participant in the Uruguay Round. Currently, Romania has an Association Agreement with the European Union (EU) and hopes to become a full member in the EU by 2007. Romania is also an associate member of the European Free Trade Association (EFTA) and of the Central European Free Trade Association (CEFTA). Romania has free trade agreements with Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Serbia and Montenegro, and Turkey.

Import Documentation
Regular import documentation is required by the Customs Office depending on each specific import/export operation. No special import documentation is required besides that normally asked for by customs officials, including

* Certificate of Origin: When requested by the importing firm. A general form, sold by commercial printers, signed by a responsible of the importing firm and legalized by a Romanian official and certificated by a recognized chamber of commerce is required. One original and a number of copies should be provided.
Certificate of origin
Commercial invoice
* Bill of lading: One original and four copies are required. There are no regulations specifying the form required by any particular shipment. A bill of lading customarily shows the name of the shipper, the name and address of the consignee, port of destination, description of goods, listing of the freight and other charges, the number of bills of lading in the full set, and the date and the signature of the carrier's official acknowledging receipt on board of the goods for shipment. The information should correspond with that shown on the invoice and the packages. The air waybill replaces the bill of lading on air cargo shipments.
* Pro forma invoice: Three copies of the pro forma invoice are required and they should be stamped with a company seal or ink stamp or should be signed and notarized. The invoice should include the exact address of the supplier, the address of recipient, consignee. The country of origin of supplier, the INCOTERM (such as CIF ro FOB) and a description of the packing. Note: the INCOTERM should be followed by the destination city, for example "CIF BUCHAREST" Romanian Customs has returned shipments to the U.S. that did not have the ink stamp or notarization and the exact INCOTERM and destination marking.
* Commercial Invoice: The original signed by the shipper is required. A full description of the goods and the specifications requested by the importer should be shown in the invoice


Additional documentation (e.g. corporate documents/by-laws of the Romanian importing entity, customs forms, such as: statement of value, customs declaration, etc.) should be presented by the importing entity at the customs office of destination where the clearance formalities are completed. Depending on the type of the customs regime (e.g. bonded warehousing, temporary admission/leasing), relevant contracts between the parties should also be presented for clearance purpose. Also, specific documents are required to introduce guns, ammunition, drugs, and environmentally dangerous products.

Import Licenses

Applications for release of import/export licenses, where necessary, can be obtained from the Ministry of Foreign Affairs. All license applications have to be registered with the Romanian Government - Department for Trade Foreign. The time for analyzing and issuing a license is maximum ten days. Transparency and time saving are ensured. Import licenses are required only for goods subject to control:

* Wastes, admitted to import, on the basis of the approval of the Ministry of Health and Family, Ministry of Agriculture, Food and Forestry ? products dangerous for the population's health and environment, admitted to import, on the basis of the approval of the Ministry of Health and Family, Ministry of Agriculture, Food and Forestry ? strategic products under the control of final destination regime, according to Romania's international commitments ? hunting and weapons for target shooting, on the basis of the approval of the General lnspectorate of Police ? radioactive and nuclear installations others than those under export control, on the basis of the approval of the National Commission for the Control of Nuclear Activities ? selected chemical products to avoid misuse ( precursors for making the drugs) on the basis of the approval of the General Inspectorate of Police.


Automatic import licenses, for statistical purpose, are required only for: oil and petroleum products; a few second hand products; wheat; wheat flour and eggs of birds for consumption.

Quotas

In accordance with the preferential agreements concluded by Romania, certain customs tariff quotas have been established. In this respect, the Ministry of Foreign Affairs administrates in a transparent manner the customs tariff quotas as follows: for certain agricultural and industrial products imported from EU and CEFTA countries and Turkey, in accordance with the relevant provisions of Free Trade Agreements (FTA) concluded by Romania; customs tariff quotas of minimum and current access for a few products originating in WTO member countries; for textiles meant to USA and Canada markets.

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

Romanian standards of quality and safety are under the jurisdiction of the Romanian Association for Standardization (ASRO). Generally, they match ISO and Western European Standards. Romania adopted international quality control standards such as ISO 9000 and incorporated them in its national standardization system.Although the ISO standards are not compulsory by law for individual companies, the buyers increasingly impose on the suppliers to prove the quality of their products and services by the certification of the quality control system they practice.

Labeling and Marking Requirements

Manufacturers should be mindful that, in addition to the EU's mandatory and voluntary schemes, national voluntary labeling schemes might still apply. These schemes may be highly appreciated by consumers, and thus, become unavoidable for marketing purposes.

Manufacturers are advised to take note that all labels require metric units, although dual labeling is also acceptable until the end of 2009. The use of language on labels has been the subject of a Commission Communication, which encourages multilingual information, while preserving the freedom of member states to require the use of language of the country of consumption.

The EU has mandated that certain products be sold in standardized quantities. Council Directive 80/232/EC provides permissible ranges of nominal quantities, container capacities and volumes of a variety of products: http://europa.eu.int/eur-lex/en/consleg/main/1980/en_1980L0232_index.html.

The EU adopted legislation in 1992, revised in 2000, to distinguish environmentally friendly production through a labeling scheme called the Eco-label. The symbol, a green flower, is a voluntary mark. The Eco-label is awarded to producers who can show that their product is less harmful to the environment than similar such products. This "green label" also aims to encourage consumers to buy green products. However, the scheme does not establish ecological standards that all manufacturers are required to meet to place product on the market. Products without the EU Eco-label can still enter the EU as long as they meet the existing health, safety, and environmental standards and regulations.

There are concerns in the United States that the EU Eco-labeling program may become a de facto trade barrier; may not enhance environmental protection in a transparent, scientifically sound manner; may not be open to meaningful participation by US firms; and may discriminate unfairly against US business. The EU Eco-label is a costly scheme (up to EUR 1,300 for registration and up to EUR 25,000/ year for the use of the label, with a reduction of 25 percent for SMEs) and has therefore not been widely used so far. However, the Eco-label can be a good marketing tool and, given the growing demand for green products in Europe, it is likely that the Eco-label will become more and more a reference for green consumers.

Useful Addresses

National Trade Registry Office
Bucharest Department for Business Promotion
Blvd. Octavian Goga 2
Bucharest, Romania
Tel. (40-1) 327-3402
Fax: (40-1) 327-3468
E-mail: crotaru@ccir.ro

Romanian Customs
Str. Matei Millo 13
Bucharest, Romania
Tel: (40-21) 315-6578
Fax: (40-21) 313-8316
Website: www.customs.ro/