ahk export to europe - germany 01

8/13/2019 AHK Export to Europe - Germany 01

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Verfasser, Organisation, Datum

Exporting Opportunities to Europe -

Germany

Exporting Opportunities to Europe -

Germany


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Dr. Peter Goepfrich, AHK, 29.09.2010

EXPORT in times of globalisation

Global trade is becoming a greater challenge:> concentration of trade is accelerating within regional

markets, especially the EU

> the time-factor is gaining momentum as a competitiveinstrument on the production as well as on the distributionside

> due to market saturation in many sectors customercultivation and customer care are crucial marketing andsales tools

> quality labels and environmental standards become more

and more important> brands are very important marketing instruments

> quality, reliability is key for success


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Newcomers on the export markets

Enterprises which are newly thinking about exporting havetherefore to carefully consider what markets they want toconquer and they have to do it with all vigor in order to reach

a sustaining success. Gaining a foothold in the European market is challenging

and, if successful, rendering at the same time.

Especially the German market bears greater potentialcompared to other markets in offering a fascinating andpromising field of activity.

But it cannot be denied, that this market also imposes risksand such risks must be adequately addressed prior to taking

a decision concerning market penetration

Knowledge of the market and the terms of trade is key forsuccess


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Exporting Opportunities to Europe -Germany


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The European Union

27 member countries

501 million inhabitants (7% of the worlds population) Trade between EU and rest of the world: 20% of global

exports and imports.

European Single Market: goods, services, persons andcapital can move freely between the member states.

European Customs Union: goods only go trough customprocedures at the point of entry to the EU (common customs

tariff rates for goods imported from non-member countriesinto the Customs Union area).


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Services

73%

Industry25%

Agriculture

2%


Economic situation in the European Union:

Favorable developments after the crisis due to economic stimuluspackages

GDP 2008: 12,506 bn. EUR GDP per capita 2008: 24,962 EUR (cf. UAE: EUR 34,796)

GDP per sector:


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EC-GCC cooperation agreement (1989):

Agreement seeks to improve trade relations and stability

The agreement created a Joint Council and a Joint CooperationCommittee which meet annually.

EU-GCC free trade agreement

FTA talks were initiated in 1990 but still no agreement (disputesover market access and human rights).

Despite the lack of an FTA, EU and GCC are major trade partners

GCC is currently the EU's fifth largest export market and the EU isthe top trading partner for the GCC (18% of total GCC trade).


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Facts about Germany

82 million inhabitants 16 Federal States (old and new ones)

GDP (2009): EUR 2,404 bn. (cf. UAE: EUR 170 bn.) GDP per capita (2009): EUR 29.406 (cf. UAE: EUR 34,796) GDP per sector (2009):

Services 55.1% Industry 26.6%

Trade 17.5%

Agriculture 0.8%

Europes largest market (20% of European GDP) Germany pays more than 25% of EC Budget Germany is leading in imports and exports in EU


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Economic situation in Germany

Exporting country (World export champion until 2008)

Export (2009): EUR 808 bn. Import (2009): EUR 674 bn.

Number of companies (2007): 3.63 million

SMEs: 99.7% German economy is both highly industrialized and

diversified, equal focus on services and production.

Purchasing power per capita: EUR 18,904 (Europeanaverage: EUR 11,699).


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World Champion in Exports

16%

13%

11%


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Foreign trade between Germany and UAE

2,15

0,18

2,88

0,19

3,07

0,18

3,23

0,23

3,55

0,32

4,31

0,37

5,4

0,46

5,84

0,43

8,16

0,51

6,11

0,43

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

9,00

bn.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Importe

Exporte


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Non-ferrous metal

14%

Electronics

8%

Electro-

Technology8%

Chemical

Products

6%

Plastics

5%

Others

59%


Exports from UAE to Germany (2009): 0.47 bn. EUR


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Germany - Europes Global Logistics Hub

Highly efficient transportation of goods and passengers by road,rail, sea and inland waterways

28% of the European logistics market pass through Germany

Europes second largest port in Hamburg and over 250 inlandports.

Frankfurt/Main: 9th largest airport in the world (cargo andpassenger volume)

Highest highway kilometer density level in Europe

High-speed railway network

In the centre of Europe, Germany provides easy access todomestic and international markets.


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Why export to Germany?

Free and open market: no restrictions to capital transactions, real estatepurchases, repatriation of profits, or access to foreign exchanges.

Stable economic environment

First class logistic infrastructure

Stable and Transparent Legal System

Availability of sufficient suppliers

Centre of Europe: Access to the regional market (Western & EasternEurope)

Leading country in the trade fair business

UNCTAD World Investment Prospects Survey 2009-2011:Germany ranks second within the EU-15, and seventhinternationally in the most attractive business locations in therelevant regions 2008-2010 category.


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Customs and Tariffs

Imported goods must be accompanied by a customsdeclaration.

Custom duties derive from the value of the imported goods.

Import turnover tax (goods imported to Germany from non-EU-states): 19%

Customs procedure: Release for Free Circulation: Importedgoods are subject to normal customs duties and importtaxation. The importer pays the duties and may dispose of

the goods freely.

European Single Market/Common Customs Tariff: No dutiesin between member states.


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Taxation

VAT is raised regardless of citizenship, residence, main placeof management, place of billing or payment.

Only criterion: entrepreneur executes taxable transactionsabove a certain volume.

VAT rate:

Normal rate (supplies of goods and services): 19%

Lower rate for certain goods (ex: books, food): 7%

Exemptions:

Small enterprises (turnover during the last year below EUR 17,500) Specific service sectors (ex: healthcare, education, financial,

voluntary services).


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Norms and Standards

CE-Marking

Norms and Quality standards (DIN) Safety Markings

Environmental Labels

Labeling Organic Products Labeling Fair Trade

Some of the German legal provisions even go beyond theEuropean standard (ex: toys, textiles and jewelry).


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Norms and Standards: CE Marking

Most products sold in the EU need to carry a CEmarking.

CE ('Conformit Europenne') indicates that the respectiveparty has successfully assessed the goods forcompliance with European safety standards.

CE marking is affixed to the product by either themanufacturer (if the product was made in the EU) orthe importer (if it was produced elsewhere).

Issuing this self-declaration also makes themanufacturer or importer legally responsible forassuring the goods actually conform to therequirements.


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Food Safety

Institutions on the European, national, state and municipallevel constantly monitor food products along the whole

supply chain.

Manufacturers, importers, vendors and retailers are allresponsible for the food they place on the market.

Generally, vendors of food products do not need a specialregistration or permission to do business, as long as theirmerchandise conforms with legal standards, such as the

specific informational and labeling requirements, and as long

as they do not pose any danger to consumers' health.


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Patents, Licensing, Trademarks

Trademarks and patents are well protected in Germany.

Company and products should not infringe on existingintellectual property rights that have already beenestablished in the German market.


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Market Entry

Direct import by large German clients

Indirect import through importers or wholesalers

Commercial agents By own subsidiary (branch office,company)

How to establish contacts to clients / intermediaries

Visit / Exhibiting at Trade Fairs

Further important aspect

Product Branding

Marketing

Ecology (Organic food,nonhazardous products, green products)

Fairtrade labels etc.


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References and useful links

German Business Portalwww.german-business-portal.info

Germany Trade & Investwww.gtai.com

Customswww.zoll.de

Federal Office for Economics and Export Control (BAFA)www.bafa.dehttp://www.bafa.de/bafa/en/import/index.html

Association pf the German Chambers of Industry & Commerce (DIHK)www.dihk.de

http://www.dihk.de/english/international/tasks/exportimport.html

DIN German Institute for Standardizationwww.din.de


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German Emirati Joint Council for Industry & Commerce (AHK)

www.ahkuae.com

Contact Person: Daniela Calligaro

Email: [email protected]

Dubai - Business Village, Office 618, Port Saeed, DeiraP.O. Box 7480, Dubai, UAEPhone: +971 (0) 4 4470100

Fax: +971 (0) 4 4470101Email: [email protected]

Further Offices in Abu Dhabi, Oman and Qatar.Services for Bahrain

and Kuwait are available.

ahk export to europe - germany 01

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