Exporting Opportunities to Europe Germany

Verfasser, Organisation, Datum

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 competitive instrument on the production as well as on the distribution side > due to market saturation in many sectors customer cultivation and customer care are crucial marketing and sales tools > quality labels and environmental standards become more and more important > brands are very important marketing instruments > quality, reliability is key for success
Dr. Peter Goepfrich, AHK, 29.09.2010

Newcomers on the export markets

Enterprises which are newly thinking about exporting have therefore to carefully consider what markets they want to conquer 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 potential compared to other markets in offering a fascinating and promising field of activity. But it cannot be denied, that this market also imposes risks and 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 for success
Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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 and capital can move freely between the member states. European Customs Union: goods only go trough custom procedures at the point of entry to the EU (common customs tariff rates for goods imported from non-member countries into the Customs Union area).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Economic situation in the European Union:

Favorable developments after the crisis due to economic stimulus packages GDP 2008: 12,506 bn. EUR GDP per capita 2008: 24,962 EUR (cf. UAE: EUR 34,796) GDP per sector:
Industry 25% Agriculture 2%

Services 73%

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

EC-GCC cooperation agreement (1989):

Agreement seeks to improve trade relations and stability The agreement created a Joint Council and a Joint Cooperation Committee which meet annually.

EU-GCC free trade agreement

FTA talks were initiated in 1990 but still no agreement (disputes over 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 is the top trading partner for the GCC (18% of total GCC trade).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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
Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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 (European average: EUR 11,699).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

World Champion in Exports 16%

13% 11%

1 2 3

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

German imports (2008): 818.6 bn. EUR

1. The Netherlands 2. France 3. China 4. USA ... 69. United Arab Emirates 0 0,47 10
0.06% 5.6% 7.3% 8.8%

72,1

8.1%

66,7

59,4

46,1

20

30

40

50

60

70

80

Imports in bn. EUR

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Foreign trade between Germany and UAE

bn. 9,00 8,00 7,00 0,46 6,00 5,00 4,00 3,00 2,00 1,00 0,00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2,15 0,18 2,88 3,07 3,23 3,55 4,31 0,19 0,18 0,23 0,32 5,84 0,37 8,16 5,4 6,11 Importe Exporte 0,43 0,51

0,43

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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

Non-ferrous metal 14% Electronics 8% ElectroTechnology 8% Chemical Products 6% Plastics 5%

Others 59%

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Products imported to Germany (2008)

Chemicals Oil & Gas Cars & spare parts Metals Machinery Telecommunications Engineering Processed Foods Power Generation & Transmission Equipment Other Vehicles

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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 inland ports. Frankfurt/Main: 9th largest airport in the world (cargo and passenger volume) Highest highway kilometer density level in Europe High-speed railway network In the centre of Europe, Germany provides easy access to domestic and international markets.
Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Why export to Germany?

Free and open market: no restrictions to capital transactions, real estate purchases, 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 & Eastern Europe) Leading country in the trade fair business UNCTAD World Investment Prospects Survey 2009-2011: Germany ranks second within the EU-15, and seventh internationally in the most attractive business locations in the relevant regions 2008-2010 category.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Import Regulations

Almost completely liberalized import of goods into Germany: In general no import permit needed, but exceptions apply for special goods.

Import duties have been constantly reduced over the past years. In case of such duties import licenses and surveillance documents may need to be obtained before importing to Germany Federal Office of Economics and Export Control (BAFA).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Import Regulations

Textiles and steel products from a few third countries are generally restricted by import quotas and require an import license (BAFA). Specific import control regulations apply to products that may potentially pose a risk to human health, public security or environmental protection (ex: medicine, weapons or endangered species of plants and animals). Specific labeling requirements apply to food products, textiles, electrical and electronic equipment, and dangerous substances. Packaging: vendor is obliged to take back packaging waste.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Customs and Tariffs

Imported goods must be accompanied by a customs declaration. Custom duties derive from the value of the imported goods. Import turnover tax (goods imported to Germany from nonEU-states): 19% Customs procedure: Release for Free Circulation: Imported goods are subject to normal customs duties and import taxation. The importer pays the duties and may dispose of the goods freely. European Single Market/Common Customs Tariff: No duties in between member states.
Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Taxation

VAT is raised regardless of citizenship, residence, main place of management, place of billing or payment. Only criterion: entrepreneur executes taxable transactions above 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).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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 the European standard (ex: toys, textiles and jewelry).

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Norms and Standards: CE Marking

Most products sold in the EU need to carry a CE marking. CE ('Conformit Europenne') indicates that the respective party has successfully assessed the goods for compliance with European safety standards. CE marking is affixed to the product by either the manufacturer (if the product was made in the EU) or the importer (if it was produced elsewhere). Issuing this self-declaration also makes the manufacturer or importer legally responsible for assuring the goods actually conform to the requirements.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Food Safety

Institutions on the European, national, state and municipal level constantly monitor food products along the whole supply chain. Manufacturers, importers, vendors and retailers are all responsible for the food they place on the market. Generally, vendors of food products do not need a special registration or permission to do business, as long as their merchandise 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.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Patents, Licensing, Trademarks

Trademarks and patents are well protected in Germany. Company and products should not infringe on existing intellectual property rights that have already been established in the German market.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

Legal Requirements

German law makes no distinction between Germans and foreign nationals regarding investments or the establishment of companies. No restrictions are placed upon foreign companies, nor are there any business sectors exclusively monopolized by the state. The contracting parties are free to choose which national law is to govern their contractual relationships (Art. 27 EGBGB). If no choice is made, the contract will generally be governed by the law of the country of the habitual residence of the debtor. If consumer protection rights are involved, the contract is - by operation of law - governed by the law of the country of the consumer's habitual residence, which cannot be waived.

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

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.
Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

References and useful links

German Business Portal

www.german-business-portal.info

Germany Trade & Invest

www.gtai.com

Customs
www.zoll.de

Federal Office for Economics and Export Control (BAFA)

www.bafa.de http://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 Standardization www.din.de

Dr. Peter Goepfrich, AHK, 29.09.2010

Exporting Opportunities to Europe Germany

German Emirati Joint Council for Industry & Commerce (AHK) www.ahkuae.com

Contact Person: Daniela Calligaro Email: daniela.calligaro@ahkuae.com Dubai - Business Village, Office 618, Port Saeed, Deira P.O. Box 7480, Dubai, UAE Phone: +971 (0) 4 4470100 Fax: +971 (0) 4 4470101 Email: info@ahkuae.com Further Offices in Abu Dhabi, Oman and Qatar. Services for Bahrain and Kuwait are available.

Dr. Peter Goepfrich, AHK, 29.09.2010