The operations for trading in Romania are done in accordance with the regulations imposed by the European Union (EU) and investors who are considering developing such activities here should know that this field is of major importance for the Romanian economy and one of the most developed.
According to the data of National Bank of Romania, in 2018, trading accounted for 15.8% of all the foreign investments operations developed here, being the 3rd most important economic sector preferred by foreign investors, after manufacturing and construction industries. Investors who are interested in the rules of law regulating trading in Romania can request in-depth legal assistance from our team of Romanian lawyers.
Table of Contents
What are the main laws on trading in Romania?
The regulations which stipulate the manner in which trading in Romania can be done by local and foreign entities derive from national laws, as well as the rules of the EU; trading rules are also established in accordance with the agreements enforced by the World Trade Organization (WTO), these being the primary sources of law.
Our team of lawyers in Romania can present the main rules prescribed by the Romanian institutions, the EU and the WTO; it is also important to know that Romania is a member state of the European Free Trade Association (EFTA) and of the Central European Free Trade Agreement (CEFTA). Some of the agreements that are applicable for those interested in trading in Romania are the following:
- EU’s Generalized Scheme of Preferences, which imposes the exemption on paying customs duties when entering the EU market from vulnerable countries;
- EC Regulation no. 55/2008, a legal act which introduced special rules for trading with the Republic of Moldova;
- the partnership agreement signed between the EU and the African, Caribbean and Pacific countries;
- Euro-Mediterranean Partnership, which aims at the development of further trading relations between the EU and countries such as Israel, Egypt, Morocco, Algeria and Turkey;
- the rules for trading in Romania are also prescribed through various trade agreements signed with countries such as South Africa, Chile, Switzerland, Andorra, Faroe Islands and others.
What are the highlights of trading in Romania?
Besides the extensive network of treaties which prescribes preferential or advantageous reasons for trading in Romania or in the EU area (related to the volume of goods, their categories, the tax advantages, customs duties, few procedures for trading and others), investors should also take into consideration the following list of advantages, presented by our team of Romanian lawyers:
- according to the Doing Business Report 2020, Romania stands out as the 1st global economy (from 190 countries) for the trading across borders index;
- the score for trading in Romania is of 100, the maximum value that can be awarded;
- the study shows that the time necessary for documentary compliance on export is of only 1 hour;
- the duration of the procedures for trading in Romania (measured on export procedures) is of only 1 hour, is much less that the average measured for Europe and Central Asia, of 25.1 hours, and also less than the average of 2.3 hours for the OECD high income countries;
- the time spent on import procedures in Romania is of also 1 hour, while the Europe and Central Asia has 23.4 hours on average and the OECD high income countries, of 3.4 hours;
- on both import and export, trading in Romania has the highest score, of 100, for border compliance procedures and documentary compliance measured from both time and cost perspectives.
Trading in Romania is highly influenced by the business relations established with the EU partners. Thus, it is important to know that 75% of the imports in Romania are from EU member states, the most developed trading relations being established with Germany, Italy and Hungary, while on export matters, 77% of all the Romanian exports are purchased by other EU member states; here, the top trading partners are Germany, Italy and France.
Our Romanian law firm can present the main legal procedures EU businesses have to comply with when importing goods here; however, our Romanian lawyers can also present the rules applicable to non-EU businesses. The procedures imposed in this case will vary based on the trading regulations that derive from the agreements (if applicable) signed by the Romanian authorities. Those interested in finding out more information on the applicable trading rules are invited to contact our law firm in Romania for an extensive presentation as well as for legal representation where needed.