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The newly launched web-portal for Foreign Direct Investment in Romania

The Department  of Foreign Direct Investment in Romania has launched a new web-portal which gives all information and details regarding the economic and business environment of the country, the main reasons to invest in Romania, the government schema and incentives, the procedures, the lifestyle etc.

The Romanian Government gives a new emphasis to the Foreign Direct Investment in the country, and for that it has been created a “single window shop” for investment through the Department of Foreign Investment under the Ministry of Economy, Trade and Business Environment Relations.

All companies, entities and people which intend to invest in Romania or to expand their existing business in the country are kindly advise to go on the web-portal: www.investromania.gov.ro

 

 

 I . Romania trade policy a common European approach

  

Better Access on the European Market

 

As a European Union (EU) Member State, Romania adopted the EU Common Trade Policy, and accepted the European Commission as a collective negotiating body for important international trade‐related matters, particularly negotiations within the World Trade Organization (WTO).

Also, Romania applies the Community Customs Code (CCC) and the European Commission provisions for implementation of CCC from the accession date (i.e., 1 January 2007).

EU and Romania are original Members of the WTO keeping the common commitment for a strong multilateral trading system and trade liberalization worldwide. Maintaining the WTO system, and ensuring that it continues to adapt to a fast‐changing world, is a central priority of EU trade policy.

Under the Common Trade Policy, Romania is fully applying the EU preferential trade agreements and arrangements in relations with third countries as (1) unilateral preferences granted autonomously to enter the EU single market and (2) reciprocal preferences negotiated with trading partners in the framework of Free Trade Agreements.

Preferential trade treatment on non‐reciprocal basis is provided by the EU’s Generalized System of Preferences (GSP) and the related scheme of generalized tariff preferences. The EUʹs GSP consists of three arrangements: standard GSP (which provides tariff preferences to eligible developing countries), GSP+ (which offers additional tariff reductions to ʺvulnerableʺ countries that implement International standards in the fields of human rights, core labor standards, sustainable development, and good governance), and Everything But Arms ‐ EBA (which grants duty‐ and quota‐free access for products from least developed countries).

Apart from the commitments built on WTO and other international rules, EU is going further and faster in promoting trade openness and integration by Free Trade Agreements (FTAs) and other reciprocal arrangements. The EU trade agreements concluded or under negotiations as of year‐end 2011, are as follows:

             Operational FTAs:

 

  • Faroe Islands, Iceland, Norway and Switzerland ‐ European Free Trade Agreement (EFTA);
  • Andorra, San Marino and Turkey ‐ Customs Union;
  • Albania, Bosnia and Herzegovina, Croatia (new EU Member State from July 2013), Macedonia FYR, Montenegro and Serbia (Western Balkans) ‐ Stabilization and Association Agreements;
  • Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territory and Tunisia ‐ Euro‐Mediterranean Agreement;  Chile, Mexico and South Africa; Caribbean States (CARIFORUM) ‐ Economic Partnership Agreements.

 FTAs concluded but not yet fully applied ongoing and planned FTA negotiations:

  • Andean Community: Bolivia, Ecuador, Peru (*) and Colombia (*);
  • ASEAN: Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam;
  • Central America (*): Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.  Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates; MERCOSUR: Argentina, Brazil, Paraguay and Uruguay;  Other countries: Armenia, Azerbaijan, Canada, Georgia, India, South Korea (*), Libya, Moldova Rep., Syria and Ukraine; Africa, Caribbean and Pacific (ACP) region less Caribbean countries ‐ Economic Partnership Agreements.

  

Exporting to Romania

 

The basic customs legislation in force in Romania is the EU Customs Code and its Implementing Regulation. EU has exclusive competence in the field of customs. Under EU legislation, the term customs procedure means release for free circulation, transit, customs warehousing, inward processing, processing under customs control, temporary admission, outward processing and exportation.

The transaction value is the primary basis for determining customs value in the EU. It includes international freight, insurance and other c.i.f. charges. Around 95% of all import declarations are accepted in accordance with the transaction value method. Administrative and judicial review of customs valuation decisions are subject to appeal at the National Customs Authority of Romania.

According to the EU Customs Code, Romania applies non‐preferential and preferential rules origin. Non‐preferential rules of origin are applied for several purposes, including the application of quantitative restrictions, Most‐Favored‐Nation (MFN) tariff quotas, origin marking contingency measures, and government procurement. Preferential rules of origin are maintained under preferential arrangements.

In general, to benefit from preferential treatment, goods incorporating inputs from non‐partner or non‐beneficiary countries must undergo a certain amount of working or processing in the partner country or in the beneficiary country, as specified in an annex to each of the trade agreements or arrangements.

In terms of customs tariffs, as provided by EU import customs legislation, Romania grants MFN or better treatment to WTO and non‐WTO Members. The EU Common Customs Tariff is the basic document for import rules applying in trade with third countries, throughout EU customs territory without adopting specific national legislation. It consists of two main components:

(1) - the tariff nomenclature, known as the Combined Nomenclature, based on the Harmonized Commodity Description and Coding System ‐ HS,

(2) - customs duties and other associated taxes according to import rules applied to goods originated in third countries. Customs duties are expressed as a percentage of the customs value of goods (ad valorem duties) and, mostly on agricultural products, as a specific values (non‐ad valorem type duties), or a combination of them. Other taxes, duties and levies may be required to be paid upon import in addition to customs duties, such as excise duty, VAT, and other fees related to the import formalities and procedures.

  

Exporting from Romania

 

In line with the EU customs legislation, Romania does not apply taxes or duties on exports.

However, within the EU legal framework governing export restrictions and controls, Romania applies quantitative restrictions and controls on exports for foreign policy and security reasons. Exports of ʺdual‐useʺ items are controlled at the European level. The EUʹs dual‐use export control system defines dual‐use items as ʺitems, including software and technology, which can be used for both civil and military purposes, and shall include all goods which can be used for both no explosive uses and assisting in any way in the manufacture of nuclear weapons or other nuclear explosive devicesʺ.

Romania, like the other EU Member States, may impose export controls and some additional administrative requirements on unlisted dual‐use items under certain conditions specified in the related EU regulations. All other exports controlled under the European legislation are subject to authorization granted by the Member State where the exporter is established, namely the National Customs Authority of Romania for external deliveries from Romania. There are national general, global or individual authorizations, all of which are valid throughout the EU.

Romania an Open Market for Global Trade

 

EU is the world’s largest market and by far the most important trading partner for more and more countries. The wide range of preferential trade agreements that EU is offering to partners from the emerging regions and developing world, allows them to benefit from as open access as possible to the EU single market. This is a degree of openness unmatched by any other major economy and demonstrates the EU’s commitment to putting trade at the service of development in practice.

Within the EU single market border, Romania is firmly committed to promote global trade links and economic partnerships.

 

Romania International Trade 2011 at a glance

 

  • Export of goods: EUR 45,017 million (+28.5% and +20.5% y‐o‐y growth rate 2009‐2011).
  • Export structure (percentage breakdown): vehicles and transport equipment (41.2%); other, manufactured goods (33.4%); raw materials (7.2%); food, beverages and tobacco (6.4%); chemicals(6.3%); fuel and lubricants (5.5%).
  • Top 10 export markets (percentage breakdown): Germany (18.8%), Italy (12.9%), France (7.5%), Turkey (6.1%), Hungary (5.6%), Bulgaria (3.6%), Great Britain (3.2%), Netherlands (3.1%), Spain (2.5%), and Poland (2.4%).
  • Import of goods: EUR 54,739 million (+20.4% and +16.7% y‐o‐y growth rate 2009‐2011).
  • Import structure (percentage breakdown): vehicles and transport equipment (34.6%); other manufactured goods (30.6%); chemicals (13.2%); fuel and lubricants (11.3%); food, beverages and tobacco (6.8%); raw materials (3.5%).
  • Top 10 import suppliers (percentage breakdown): Germany (17.0%), Italy (11.4%), Hungary (8.7%), France (5.8%), China (4.7%), Kazakhstan (4.1%), Poland (4.0%), Austria (4.0%), Russia (3.9%), and Turkey (3.5%).
  • Projected growth rate of export and import, respectively: over 50% by 2015. 

 

 II. New developments in bilateral economic trade between Romania and India

The works of the Joint Economical Committee between Romania and India that took place in Bucharest in the course of February 2012, have given a new impulse in the development of economic relations between the two countries.

The Indian Delegation led by Minister of State in the Ministry of Commerce and Industries of India H.E Mr.JYOTIRADITYA MADHAVRAO SCINDIA, has established together with the representatives of the Romanian part, leaders of the Ministry of Economy Trade and Business Environment, a series of concrete measures materialized in the Protocol signed on this occasion, in order to revitalize the bilateral economic relations.

Analyzing the evolution of trade at the level of the ninth month of the year 2012 we will present you the last figures able to characterize these developments.

 

2005

2006

2007

2008

2009

2010.

2011

2012

TOTAL

449,9

457,3

799,2

919,1

817,0

879.98

815.85

381,6

Romanian Export

272,3

240,9

449,1

310,2

256,9

190.04

271.8

158.7

Romanian Import

177,6

216,4

350,1

608,9

560,1

689.3

544.05

222.9

Trade balance

+94,7

+24,5

+99,0

-298,7

- 303,2

-488.5

-272.25

-64.2

Analyzing the evolution of bilateral trade between the two countries can be concluded the following important aspects, the evolution of Romanian exports over the past three years has been positive. Rising in 2011 compared with 2010 is 49%, the developments in 2012 while maintaining this trend. So the growth of exports in this year's first six months was 29 percent.

Below is presented the evolution of Romanian exports in India by groups of products

            

1  Manufacture of machinery                                                                        77070.89              111636.52                44.85

    (Including electrical machines and equipments)

                                                                                                                                 45.58%                  56.07%

                        

         84  Nuclear reactors, Boilers machines                                          50105.20                30470.60                -39.19

                     And mechanical appliances

                                                                                                                                 29.63%                  15.30%

         85  Machines, devices and electrical components                         7063.85                11955.11                  69.24

                     And spare parts for this equipments

                                                                                                                                   4.18%                    6.00%

         86  Vehicles end equipments for the railway                                      133.06                     787.64               491.95

                          

                                                                                                                                   0.08%                    0.40%

         87  Automotives, tractors, bicycles                                                   17717.73                63686.82               259.45

                    Other vehicles and accessories

                                                                                                                                10.48%                  31.98%

         89  Maritime navigation                                                                                 0.00                         0.00

                                                                                                                                   0.00%                    0.00%

         90  Instruments and optic equipments,                                                2045.20                  4736.11               131.57

                    Photographical and cinema equipment

                                                                                                                                   1.21%                    2.38%

         91  watch making industry                                                                             0.11                         0.25               118.97

                                                                                                                                      0.00%                    0.00%

         92  parts and accessories for the musical instruments                          5.74                         0.00                -100.0

                   Musical instruments

                                                                                                                                      0.00%                    0.00%

2  Products of the textile and leather industry                                          2439.15                  1390.35                -43.00

                                                                                                                                      1.44%                    0.70%

3  Products of the mineral industry                                                           18258.68                16285.85                -10.80

                                                                                                                                    10.80%                    8.18%

4  Products of the chemical industry and plastic products                 28883.17                40983.23                  41.89

                                                                                                                                    17.08%                  20.58%

5  Agricultural food industry products                                                           196.68                       90.02                -54.23

                                                                                                                                     0.12%                    0.05%

6  Common metals and products of common metals                          38484.14                23179.84                -39.77

                                                                                                                                   22.76%                  11.64%

7  products of the wood working industry, paper (incl. furniture)        3649.96                  5481.75                  50.19

                                                                                                                                      2.16%                    2.75%

8  Articles of stone, plaster, cement, glass and ceramics                       113.72                       65.40                -42.49

                                                                                                                                      0.07%                    0.03%

9  Other                                                                                                                       8.50                         4.73                -44.37

                                                                                                                                      0.01%                       0.00%

The figures mentioned above create us the hope of an increasing development of bilateral trade exchanges between Romania and India

 

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