Security for Airport and Aerospace, Maritime and Port, and High-Threat Targets in Belgium: A Strategic Reference, 200609
Edited by
Philip M. Parker, Ph.D. Chaired Professor of Management Science INSEAD (Fontainebleau & Singapore)
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About Icon Group International, Inc. Icon Group International, Inc.’s primary mission is to assist managers with their international information needs. U.S.-owned and operated, Icon Group has field offices in Paris, Hong Kong, and Lomé, Togo (West Africa). Created in 1994, Icon Group has published hundreds of multi-client databases, and global/regional market data, industry and country publications. Global/Regional Management Studies: Summarizing over 190 countries, management studies are generally organized into regional volumes and cover key management functions. The human resource series covers minimum wages, child labor, unionization and collective bargaining. The international law series covers media control and censorship, search and seizure, and trial justice and punishment. The diversity management series covers a variety of environmental context drivers that effect global operations. These include women’s rights, children’s rights, discrimination/racism, and religious forces and risks. Global strategic planning studies cover economic risk assessments, political risk assessments, foreign direct investment strategy, intellectual property strategy, and export strategies. Financial management studies cover taxes and tariffs. Global marketing studies focus on target segments (e.g. seniors, children, women) and strategic marketing planning. Country Studies: Often managers need an in-depth, yet broad and up-to-date understanding of a country’s strategic market potential and situation before the first field trip or investment proposal. There are over 190 country studies available. Each study consists of analysis, statistics, forecasts, and information of relevance to managers. The studies are continually updated to insure that the reports have the most relevant information available. In addition to raw information, the reports provide relevant analyses which put a more general perspective on a country (seen in the context of relative performance vis-à-vis benchmarks). Industry Studies: Companies are racing to become more international, if not global in their strategies. For over 2000 product/industry categories, these reports give the reader a concise summary of latent market forecasts, pro-forma financials, import competition profiles, contacts, key references and trends across 200 countries of the world. Some reports focus on a particular product and region (up to four regions per product), while others focus on a product within a particular country.
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Table of Contents 1
INTRODUCTION & METHODOLOGY.............................................................................1
1.1
What Does This Report Cover?
1
1.2
How to Strategically Evaluate Belgium
1
1.3
Latent Demand and Accessibility in Belgium
3
2 SECURITY FOR AIRPORT AND AEROSPACE, MARITIME AND PORT, AND HIGH-THREAT TARGETS IN BELGIUM ..............................................................................4 2.1
Latent Demand and Accessibility: Background
4
2.2 Latent Demand: Aspects of Interest 4 2.2.1 Market Dynamics ....................................................................................................................................... 4 2.2.2 Target Buyers ............................................................................................................................................. 6 2.3 Accessibility: Key Factors 6 2.3.1 Import Market ............................................................................................................................................ 6 2.4 Accessibility: The Structure of Competition 7 2.4.1 Market Entry .............................................................................................................................................. 7 2.4.2 Opportunities for Profile Building.............................................................................................................. 8 2.5 Key Contacts 9 2.5.1 Government................................................................................................................................................ 9 2.5.2 Airports ...................................................................................................................................................... 9 2.5.3 Trade Organizations ................................................................................................................................. 10 2.5.4 Upcoming Trade Shows and Events......................................................................................................... 10
3 3.1
MACRO-ACCESSIBILITY IN BELGIUM .......................................................................11 Executive Summary
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3.2 Political Risks 12 3.2.1 Economic Relationship with the United States ........................................................................................ 12 3.2.2 Politics and the Business Environment .................................................................................................... 12 3.2.3 The Political System................................................................................................................................. 12 3.3 Marketing Strategies 13 3.3.1 Distribution Channel Options................................................................................................................... 13 3.3.2 Agents and Distributors............................................................................................................................ 13 3.3.3 Contacting and Evaluating Potential Representatives .............................................................................. 15 3.3.4 Franchising Activities............................................................................................................................... 16 3.3.5 Direct Marketing Options......................................................................................................................... 16 3.3.6 Joint Ventures and Licensing Options...................................................................................................... 17 3.3.7 Advertising and Trade Promotion ............................................................................................................ 17 3.3.8 Steps to Establishing an Office................................................................................................................. 18 3.3.9 Selling Strategies...................................................................................................................................... 19 3.3.10 Labeling Issues......................................................................................................................................... 19 3.3.11 Pricing Issues............................................................................................................................................ 19 3.3.12 Currency................................................................................................................................................... 20 www.icongrouponline.com
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Public Sector Marketing........................................................................................................................... 21 Intellectual Property Risks ....................................................................................................................... 21 Hiring Local Counsel ............................................................................................................................... 23
3.4 Import and Export Regulation Risks 23 3.4.1 Effects of the EU Single Market .............................................................................................................. 23 3.4.2 Trade Barrier Risks .................................................................................................................................. 23 3.4.3 Government Procurement......................................................................................................................... 24 3.4.4 Eco-Taxes and Environmental Regulation ............................................................................................... 24 3.4.5 Cattle Growth Hormone Ban.................................................................................................................... 24 3.4.6 Valuations on Imports .............................................................................................................................. 24 3.4.7 Licenses Required for Imports ................................................................................................................. 25 3.4.8 Controls on Exports.................................................................................................................................. 25 3.4.9 Documentation Required for Trade.......................................................................................................... 26 3.4.10 Licenses Required for Imports ................................................................................................................. 26 3.4.11 U.S. Shippers Export Declaration ............................................................................................................ 26 3.4.12 Consular Fees ........................................................................................................................................... 26 3.4.13 Entering Temporary Imports .................................................................................................................... 27 3.4.14 Labeling Issues......................................................................................................................................... 27 3.4.15 Restrictions on Imports ............................................................................................................................ 28 3.4.16 Local Standards ........................................................................................................................................ 30 3.4.17 Technical Regulations .............................................................................................................................. 31 3.4.18 Labeling Issues......................................................................................................................................... 31 3.4.19 Free Trade Zones and Warehouses........................................................................................................... 32 3.4.20 Additional Trade Issues............................................................................................................................ 33 3.4.21 Adherence to Free Trade Agreements ...................................................................................................... 34 3.5 Investment Climate 34 3.5.1 Openness to Foreign Investment .............................................................................................................. 34 3.5.2 Takeover Legislation................................................................................................................................ 34 3.5.3 Screening.................................................................................................................................................. 35 3.5.4 National Treatment................................................................................................................................... 35 3.5.5 Conversion and Transfer Policies............................................................................................................. 35 3.5.6 Expropriation and Compensation ............................................................................................................. 35 3.5.7 Dispute Settlement ................................................................................................................................... 36 3.5.8 Performance Requirements and Incentives .............................................................................................. 36 3.5.9 Non-Tariff Barriers................................................................................................................................... 38 3.5.10 Right to Private Ownership and Establishment ........................................................................................ 38 3.5.11 Protection of Property Rights ................................................................................................................... 39 3.5.12 Transparency of the Regulatory System................................................................................................... 40 3.5.13 Capital Market Risks ................................................................................................................................ 40 3.5.14 Corruption ................................................................................................................................................ 41 3.5.15 Bilateral Investment Agreements ............................................................................................................. 42 3.5.16 OPIC and Other Investment Insurance..................................................................................................... 42 3.5.17 Labor ........................................................................................................................................................ 42 3.5.18 Foreign Trade Zones and Free Ports......................................................................................................... 43 3.6 Trade and Project Financing 44 3.6.1 The Banking System ................................................................................................................................ 44 3.6.2 Factors Affecting the Banking Climate .................................................................................................... 44 3.6.3 The Euro................................................................................................................................................... 45 3.6.4 Foreign Exchange Control Risks.............................................................................................................. 45 3.6.5 General Financing Availability ................................................................................................................ 46
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Financing Export Strategies ..................................................................................................................... 46 Types of Available Export Financing....................................................................................................... 47 Financing Projects .................................................................................................................................... 47 Banks with Correspondent U.S. Banking Arrangements ......................................................................... 47
3.7 Travel Risks 50 3.7.1 Local Business Practices .......................................................................................................................... 50 3.7.2 Visas and Work Permits ........................................................................................................................... 50 3.7.3 Travel Issues............................................................................................................................................. 50 3.7.4 Infrastructure for Conducting Business.................................................................................................... 51 3.7.5 Country Data ............................................................................................................................................ 51 3.8 Key Contacts 52 3.8.1 U.S. Government Contacts ....................................................................................................................... 52 3.8.2 Chambers of Commerce........................................................................................................................... 53 3.8.3 Belgian Trade and Industry Associations................................................................................................. 53 3.8.4 Belgian Consulates and Embassies in the U.S.......................................................................................... 55 3.8.5 Belgian Regional Governments................................................................................................................ 56 3.8.6 Belgian Export Promotion........................................................................................................................ 57 3.8.7 Belgian Foreign Investment Offices......................................................................................................... 57 3.8.8 American State Offices in Belgium.......................................................................................................... 58
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DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS ...........59
4.1
Disclaimers & Safe Harbor
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4.2
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1 1.1
INTRODUCTION & METHODOLOGY WHAT DOES THIS REPORT COVER?
The primary audience for this report is managers involved with the highest levels of the strategic planning process and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning relating to security for airport and aerospace, maritime and port, and high-threat targets in Belgium. As the editor of this report, I am drawing on a methodology developed at INSEAD, an international business school (www.insead.edu). For any given industry or sector, including security for airport and aerospace, maritime and port, and high-threat targets , the methodology decomposes a country’s strategic potential along three key dimensions: (1) latent demand, (2) micro-accessibility, and (3) macro-accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. With this perspective, this report provides both a micro and a macro strategic profile of security for airport and aerospace, maritime and port, and high-threat targets in Belgium. It does so by compiling published information that directly relates to latent demand and accessibility, either at the micro or macro level. The reader new to Belgium can quickly understand where Belgium fits into a firm’s strategic perspective. In Chapter 2, the report investigates latent demand and microaccessibility for security for airport and aerospace, maritime and port, and high-threat targets in Belgium. The report then considers macro-accessibility in Belgium. Macro-accessibility is a general evaluation of investment and business conditions in Belgium.
1.2
HOW TO STRATEGICALLY EVALUATE BELGIUM
Perhaps the most efficient way of evaluating Belgium is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance to security for airport and aerospace, maritime and port, and high-threat targets are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
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Introduction & Methodology
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Framework for Prioritizing Countries Demand/Market Potential Driven Firm
High
Highest Priority
High Priority Latent Demand
Moderate Priority Low Priority
Low
Lowest Priority Low
High Relative Accessibility
Accessibility/Supply Averse Firm High Highest Priority High Priority Latent Demand
Moderate Priority Low Priority
Lowest Priority Low High
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Introduction & Methodology
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In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market – neither a market-driven nor a costdriven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in Canada than a German firm).
1.3
LATENT DEMAND AND ACCESSIBILITY IN BELGIUM
This report provides a detailed overview of factors driving latent demand and accessibility for security for airport and aerospace, maritime and port, and high-threat targets in Belgium. Latent demand is largely driven by economic fundamentals specific to security for airport and aerospace, maritime and port, and high-threat targets . This topic is discussed in Chapter 2 using work carried out in Belgium on behalf of American firms and authored by the United States government (typically commercial attachés or similar persons in local offices of the U.S. Department of State). I have included a number of edits to clarify the information provided. Latent demand only represents half of the picture. Chapter 2 also deals with micro-accessibility for security for airport and aerospace, maritime and port, and high-threat targets in Belgium. I use the term “micro” since the discussion is focused specifically on security for airport and aerospace, maritime and port, and high-threat targets . Chapter 3 deals with macro-accessibility and covers factors that go beyond security for airport and aerospace, maritime and port, and high-threat targets . A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Belgium: •
Openness to Trade in Belgium
•
Openness to Direct Investment in Belgium
•
Local Marketing and Entry Strategy Alternatives
•
Local Human Resources
•
Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are covered in Chapter 3, which is a general overview of investment and business conditions in Belgium. Chapter 3 is also presented from the perspective of an American firm, though is equally applicable to most firms entering Belgium. This chapter is also authored by local offices of the U.S. government, as is Chapter 2. Likewise, I have included a number of edits to clarify the provided information as it relates to the general strategic framework mentioned earlier.
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2
2.1
SECURITY FOR AIRPORT AND AEROSPACE, MARITIME AND PORT, AND HIGH-THREAT TARGETS IN BELGIUM LATENT DEMAND AND ACCESSIBILITY: BACKGROUND
Maritime and Ports In Belgium, port security issues are coordinated through the Ministry of Transportation at the federal level. Its working group on port security consists of representatives from: the various ports, Belgium’s 3 regions as well as officials from the Ministry of Interior, Ministry of Justice, Ministry of Finance and Defense. This group coordinates security efforts and initiatives. At the local level, the ports of Antwerp en Zeebruges, respectively the second and 16th largest ports in Europe are actively involved in port security issues. Both ports closely monitor the latest developments in port security issues and are up to speed with the Container Security Initiative (CSI), Megaports Initiative (MPI), International Ship and Port Security code (ISPS) and the Customs Trade Partnership Against Terrorism (C-TPAT). In 2004, the port of Antwerp became the “Showcase of the world” by allowing the Department of Energy to install 76 nuclear detection devices (estimated cost: $ 40 million) both at the entrances of all container terminals.
Airport and Aerospace Belgium has several regional airports with one major airport in Zaventem near Brussels. Brussels International Airport Company (BIAC), a private limited shares company, operates the Brussels Airport. In 2003, Zaventem had 15.2 million passengers. Brucargo shipped 607,136 tons of freight in 2003, consolidating its fifth place in the European airfreight sector. On January 1, 2003, BIAC implemented the European regulation requiring that all hold luggage, as well as cargo, mail and express parcels be screened. The implementation of these measures has been subcontracted to a private security company.
High-Threat Targets Belgium has 7 nuclear power plants, 4 in the north (Doel) and three in the south (Tihange) near the French border. It is also home to NATO, SHAPE, Eurocontrol and European Union institutions. After 09/11 extra security measures were taken. Nuclear plant personnel is screened and thoroughly investigated. Existing security systems have been upgraded.
2.2 2.2.1
LATENT DEMAND: ASPECTS OF INTEREST Market Dynamics
Maritime and Ports In April 2002, the port of Antwerp was one of the first ports with an active CSI team on the ground. The port of Zeebruges followed it in October 2004. Both Antwerp and Zeebruges claim that a secure port is also a port of
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preference for the maritime sector, and that part of their good economic performance can be attributed to the fact that the trading world perceive them as secure ports, through which goods can safely and securely be shipped to the United States. The recently opened new Antwerp dock (Deurganck Dock) will almost double Antwerp’s container capacity and thus increase the demand for security equipment and services. To comply with the International Maritime Organization’s International Code for the Security of Ships and of Port Facilities, the port of Antwerp recently deployed a biometric identification system using the radio frequency identification (RFID) technology. Both employees and visitors must now carry a smart card to enter the port. In October 2004, the Belgian Government approved a security investment plan worth 33 million Euro ($40 million). This project includes: •
One fixed scanner with double scan tunnel to be installed at the new Deurganck Dock
•
One mobile scanner to cover Belgian territory
•
One train scanner for the left bank
•
One train scanner for the right bank
•
One fixed scanner in the Port of Zeebruges
Some terminal operators are also testing electronic seals.
Airport and Aerospace Brussels Airport has been outsourcing security tasks related to access control and security control to private security companies since mid-eighties. To meet ever-stricter security requirements, BIAC reinforced the Airport Inspection Service. In 2006, Securair, a division of Securitas specialized in airport security, announced its plans to hire 150 extra security agents to screen passengers better and faster during the busy holiday seasons. All Securair’s security agents are screened and thoroughly investigated. The Belgian Civil Aviation Administration is responsible for training and certification. Certified security staff of the subcontractor are auxiliary-agents of the Airport Inspection Security. They are allowed to do access and security control under the supervision and responsibility of the inspectors of the Airport Security and Inspection. Furthermore, the Brussels Airport also purchased a device to screen large quantities of goods.
High-Threat Targets In Belgium, the industry largely owns the infrastructure and has identified its interest in responding to the threats against critical infrastructure. Belgium and the EU are still in the process of defining what critical infrastructure is. Unfortunately Belgium has no public–private platform where owners, operators and users of critical infrastructure can exchange information with the public sector. In 2005, the European Commission adopted a Green Paper on a European Program for Critical Infrastructure Protection (EPCIP). The EPCIP provides a framework for national governments, infrastructure owners, operators and security services to work together. Many critical infrastructures are already well-protected by national, bilateral and international critical infrastructure protection measures and programs. However, there is a need for communication, coordination, and cooperation nationally and at EU level among all stakeholders.
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Target Buyers
Maritime and Ports The Antwerp Port Authority, owner of the docks and the sites used by port operators and industrial companies on the Right Bank of the river Scheldt, operates the port of Antwerp. It is responsible for planning, expanding, modernizing and maintaining the infrastructure of the port, and it also operates its own equipment, including warehouses, floating cranes, shore cranes, tugs and dredgers. The Port of Antwerp handled 39,957,206 tonnes of cargo during the first three months of 2006, an increase of 1.8 percent compared with the first quarter of 2005. Container cargo for its part expanded by 9.1 percent. The conventional/breakbulk cargo decreased by 3.8 percent. The 4 major container terminal operators in the Port of Antwerp are PandO, ICL, PSA and Katoen Natie. The new Deurganck Dock will ensure further growth in container cargo. About 1/6th of all outgoing containers go to North America. Antwerp has become one of the world’s largest centers of chemical and petrochemical productions, second only to Houston. Antwerp is also the number one port in Europe when it comes to fruit, steel and forest products. Zeebruges is only the 16th largest port overall in Europe, but is one of the fastest growing, and in terms of car transport the largest in Europe. Last year, Zeebruges port traffic was at 30 million tons, about one fifth of the volumes transshipped to Antwerp. Owing to its direct access to the sea and the depth of the water in the access channel, the outer port is particularly adequate for quick container and roro (roll on-roll off) traffic. The port of Zeebruges invested heavily in detection technologies to crack down on trafficking in persons well before September 2001.
Airport and Aerospace “Brussels National” is Belgium’s major airport. It invested in new security equipment last year. Brussels South (Charleroi) will open a new terminal by the end of 2007. Brussels South is known for its low-cost flights and had almost 2, 034,797 passengers in 2004. To date, offers for security equipment for the new terminal were submitted and bidding procedures are closed.
High-Threat Targets Nuclear power plants, NATO, SHAPE, EU have invested in upgrading their security equipment through risk assessment studies. Other high threats include cyber security and networked information systems. The EU is assembling expert groups on a sector-by-sector basis. One of its recommendations is the creation of a coordination body within each Member State.
2.3 2.3.1
ACCESSIBILITY: KEY FACTORS Import Market
Maritime and Ports The Belgian market for port security equipment is mainly an import market with goods coming from the Unites States, Germany and the United Kingdom. Belgian customs recently inaugurated a fixed container scanner of Chinese origin and they are also using a relocatable scanner from Smiths Heimann.
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Some container terminal operators also tested electronic seals manufactured by a U.S. firm. The seals proved to be too expensive and today there are still no international standards (ISO) that apply to electronic seals.
Airport and Aerospace Metal detectors and bagage screening equipment are imported from the United States, Germany and the United Kingdom
High-Threat Targets Most of the security equipment is imported. However, there is a trend towards more integrated systems where local companies play an important role. They offer complete packages with after service included.
2.4
ACCESSIBILITY: THE STRUCTURE OF COMPETITION
Maritime and Ports There is a real concern about the prices of Chinese-made X-ray scan equipment, which on average are 40 percent below current market prices. As a consequence, the Chinese have already taken a sizeable portion of this market in Belgium and elsewhere. Last year, the European Court of Justice compelled Belgium to lift its nationality requirements for its security services firms; hithereto, managers of these firms had to have the Belgian nationality. Now, a European passport is required; this is a nuisance for U.S. security firms set up in Europe. Reciprocity seems to be an issue here i.e. whether all of the U.S. states will allow European security firms to have European managers.
Airport and Aerospace Siemens and General Electric are key players in the market for Airport security equipment. There is a trend towards integrated systems. The Brussels Airport has asked some of its contractors to come up with a total concept i.e. security equipment, security services and access control.
High-Threat Targets Key players are GE, Siemens, Honeywell and Ingersoll-Rand. However, mainly local companies provide access control products.
2.4.1
Market Entry
The Belgian market for security products and technology is open to American products. To gain access to the Belgian market, U.S. companies should try to work with a locally established firm or distributor. Some high-tech security products need maintenance and therefore U.S. firms should consider setting up an office in Belgium offering after sales services or to work with a local company. European Union regulations and standards require product compliance with “CE” mark certification. The CE mark allows manufacturers to move products freely within the EU market and attest to conformity of safety, performance, and compatibility.
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Opportunities for Profile Building
Maritime and Ports Belgian security firms are constantly looking for new technologies. The Backscatter Technology, already used in the U.S., has potential for the Belgian market. Belgian customs have shown some interest for this technology. Although Belgian customs currently plan to monitor the Department of Energy-supplied nuclear detectors, there is also a strong interest from the security sector in this type of activities. Zeebruges and Antwerp port officials acknowledge off the record that their weakest point is currently the sea-side, i.e. that not enough manpower and equipment is dedicated to monitoring sea-side activity of the ports. Belgian customs intend to start using electronic seals by the end of 2006. The seals would be attached to those containers subject to screening by the fixed scan. The system utilizes electronics and radio frequency identification technologies to track the time and date of container door openings and closings. The system thus provides customs officials with information on whether a container has been tampered with during transport.
Airport and Aerospace Security firms specialized in airport security are always looking for innovative products. In the past, metal detectors were sufficient but currently companies want high-performance equipment combining explosives and metal detection. Security on one hand and the comfort of the passenger on the other hand play an important role in the final decision-making process. The EU has no specific standards set for X-ray equipment. Therefore, U.S. firms need only adapt their equipment to local standards.
High-Threat Targets Like the abovementioned, high threat targets are also looking for innovative products, integrated systems and biometrics. Since Belgium has no platform where owners, operators, regulators, professional bodies, industry associations, the public and all levels of government can meet, it remains in a gray area. Other opportunities exist in the area of training for security managers. Belgium has no specific training program for security managers. Some security officers take training courses from the American Society for Industrial Security (ASIS). U.S. firms offering a complete, professional training program for security managers could find a niche in the Belgian market.
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Security for Airport and Aerospace, Maritime and Port, and High-Threat Targets
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KEY CONTACTS Government
Ports DG Maritime Transportation Voouitgangstraat 56 B-1210 Brussel Tel: +32 2 277 31 11 Fax: +32 2 277 40 51 www.mobilit.fgov.be
Airports DG Airport Communicatiecentrum Noord Vooruitgangsstraat 80, bus 5 B-1030 Brussels Tel: +32 2 277 43 11 Fax: +32 2 277 42 59 www.mobilit.fgov.be
High Threats Crisiscentrum Hertogstraat 53 B-1000 Brussels Tel: +32 2 506 47 11 Fax: +32 2 506 47 09 http://crisis.ibz.be/
2.5.2
Airports
Société Wallonne des Aeroports Chaussée de Liège 624 B-5100 Namur Tel: +32 81 328 950 Fax: +32 81 313 504 www.sowaer.be Brussels National Airport B-1930 Zaventem Tel: +32 2 753 42 00 Fax: +32 2 753 45 50 www.brusselsairport.be Ms. Caroline Coutereel, Security Planning and Project Officer
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Trade Organizations
Beroepsvereniging van Bewakingsondernemingen Koningin Fabiolalaan 25 B-1780 Wemmel Tel: +32 2 462 07 73 Fax: +32 2 460 14 31 www.apeg-bvbo.be Mrs. Hilde De Clerck Belgian Association Of Security Services Companies European Corporate Security Association Domaine de Latour de Freins Rue Engeland 555 B-1180 Brussels Tel: +32 475 41 34 00 www.ecsa-eu.org Mr. Yvan De Mesmaeker, Secretary General ECSA is an Association of Professionals from the Public, Private and Academic sector who are active in, or contribute to the Security, the Continuity or the Resilience of Corporations, Organizations and Institution.
2.5.4
Upcoming Trade Shows and Events
Air and Port Security Expo Europe 06 Brussels Expo September 13-14, 2006 http://www.aps-expo.com/show_summary.htm Secura 2007 Brussels Expo March 28-30, 2007 http://www.secura-expo.be/2005/nl/ Infopol 2007 Kortijk Xpo April 24-26, 2007 http://www.infopol.be/ GovSec Europe 2007 Brussels Expo June 6-7, 2007 http://www.govseceurope.org/
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3
MACRO-ACCESSIBILITY IN BELGIUM
3.1 EXECUTIVE SUMMARY Belgium is a federal state composed of a central government, three regional governments (Flemish, Walloon and Brussels) and three different language communities (Dutch, French and German). The federal government is responsible for foreign affairs, national security, defense, taxes, and issues relating to the European economic and monetary union, while the regions manage a wide variety of socio-economic matters. Under the evolving federal system, the responsibility for areas of interest to American business such as foreign trade, environment, investment regimes and incentives will increasingly become the responsibility of the regional governments. Belgium is an outward looking country heavily reliant on trade. The country boasts tremendous infrastructure and is regarded as an ideal transit and distribution headquarters. The cosmopolitan and international nature of Belgium makes it an ideal European test market for American products and services. The domestic market is small enough that a huge commitment to a new product in Europe is not necessary, yet it is so diverse and competitive that it gives a representative sample of potential European and major international competitors. Both the Belgian government and its citizens support international commercial industries. Its capital, Brussels, is home to the headquarters of the European Union (EU) and NATO, as well as hundreds of international institutions, associations and multinational corporations. Belgium has strong competitive advantages, such as an excellent transportation infrastructure, high-quality industrial sites, and a skilled and productive workforce. Similarly, it is at the geographical center of Europe, located within a 375-mile radius of 70 percent of the 370 million EU inhabitants. With a population of 10 million in an area about the size of Maryland, Belgium offers exceptional possibilities to American companies interested in entering the European market or looking for a European headquarters. Transport to the entire EU and far beyond is made simple through Belgium’s extensive transportation capabilities. Home to the second largest port in Europe, Antwerp, and one of the ten largest in the world, Belgium is connected to over 15,000 miles of waterways linking all major industrial regions. An outstanding network of roads, rails and inland waterways enable goods shipped into Antwerp to be moved quickly and cheaply to European manufacturing and distribution centers. The Belgium train system claims the densest network of trains on the European continent. All major European highways pass through Belgium, and its modern national airport allows for convenient air travel. The Belgian economy has great depth and diversity. A highly developed market economy, it is heavily reliant on international trade. The country’s Gross Domestic Product (GDP) is dominated by a very large service sector (more than 70 percent of GDP), followed by manufacturing and agriculture. Exports account for more than 75 percent of Belgium’s GDP, making it one of the highest per capita exporters in the world. More than 76 percent of Belgium’s exports go to EU member nations making Belgium even more attractive as a European commercial and distribution hub. This highlights the country’s importance as a commercial axis in Western Europe. In addition, Belgium and the United States have enjoyed strong reciprocal trade relations over the years. The country ranks as the 9th largest commercial power worldwide and as the ninth largest trading partner of the U.S., which is impressive considering Belgium’s size. Belgium is home to over 900 U.S. companies that play an active and important role in the economy. Traditionally, Belgium has maintained an excellent investment climate including a number of recently implemented tax incentive packages. However, a recent foreign investment study criticized high labor costs and social contributions, inflexible labor regulations, high taxation levels, costly work hiring practices and a perceived lack of consistency in the government’s tax policies. As a member of the European Union (EU), Belgium must comply with all EU directives. Beginning January 1, 2002, the Euro became legal tender for consumer transactions in Belgium and the other 11 Eurozone countries.
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3.2 POLITICAL RISKS 3.2.1
Economic Relationship with the United States
Belgium has long been a political ally and friend of the United States. Active in international diplomacy in Europe, Africa, and elsewhere, Belgium works closely with the United States on most international issues. Successive Belgian governments have been committed to the development of a strong European Union with common foreign, security and economic policies. These governments have also been proponents of close transatlantic ties through the North Atlantic Treaty Organization (NATO) and other institutions. Belgium is a longstanding supporter of increased European political and economic integration. The country has consistently advocated the lowering of barriers on the movement of goods, services, capital and labor within Europe, which will benefit European and foreign businesses alike. Belgium is home to the European Union, NATO and over 100 other international organizations. For its size, Belgium is a substantial aid donor, contributing bilaterally and multilaterally to humanitarian aid and development programs. Belgian peacekeeping troops remain stationed in Afghanistan, Kosovo and Bosnia-Herzegovina; previous areas include Somalia and Rwanda. As a member of the IMF Executive Board, the G-10, the Board of Governors of the IAEA, and other organizations, Belgium plays a significant role in world affairs.
3.2.2
Politics and the Business Environment
Relations between the U.S. and Belgium are close, as they have been for most of the past century. In recent years, however, there have been some strains on the bilateral relationship, including over Iraq. Belgium has repealed its Universal Competence law, which asserted Belgian jurisdiction to prosecute allegations of war crimes regardless of where the crimes were perpetrated or the nationalities of the victims or the accused perpetrators. Cases brought under the Universal Competence law against U.S. officials have been dismissed. This is no longer considered an issue, although some final appeals against the law remain.
3.2.3
The Political System
Belgium has been a constitutional monarchy since 1831. The King, Prime Minister, and Council of Ministers constitute the executive branch of the federal government, with a 71-member Senate and a 150-member House of Representatives constituting the legislative branch. The Government must retain the support of a majority in the House of Representatives to remain in power. Federal parliamentary elections are held every four years or earlier if the government loses the support of a majority in the House and no alternative coalition can be formed. There is universal suffrage, with compulsory voting and proportional representation. The most significant trend in Belgian politics in recent years is the gradual devolution of powers from the federal authority to the regions. Under the new federal structure, approved in July 1993, sovereignty is shared by the federal government, the regions and the language communities. There is no hierarchy between these policy levels. Each level has its own exclusive powers, and cannot interfere in matters under the jurisdiction of the others. The regions include the northern, Dutch-speaking Flanders, the southern, French-speaking Wallonia and the bilingual Brussels capital region. There is also a small German-speaking community in the eastern part of the country.
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Each region is responsible for a wide range of social, economic and environmental matters within its own territory. Elected officials exercise legislative powers within their regions and elect executive authorities. Under the devolving federal system, the regional governments have taken responsibility for areas of interest to U.S. businesses such as foreign trade, environment and investment. This devolution means that Americans wishing to do business in Belgium have considerably more contact with regional officials than in the past.
3.3 MARKETING STRATEGIES 3.3.1
Distribution Channel Options
Belgium has an excellent network of distributors who are often regarded by other Europeans, especially the French and Germans, as an advantageous source of goods. Belgium adheres to European Union legislation, and Belgian business continues to benefit from membership in the EU single market. However, the openness of the Belgian market should not mislead American companies into thinking that doing business in Belgium is the same as in the United States. The cultural, linguistic and economic differences present among various regions of Belgium strongly influence how business is conducted. A good distributor must be able to operate within all these environments. Belgian distributors tend to be small and specialized. They do not have ready access to inexpensive capital and are somewhat conservative when it comes to risk taking. Consequently, potential Belgian representatives will look to their suppliers for flexible credit terms. Belgium has also established legal protection for distributors (as defined below) against sudden or unjustifiable termination of their distribution agreement. This includes measures ensuring the right to receive reasonable notice of termination and compensation for loss of income. In addition, the EU has passed similar legislation protecting agents (as defined below). It is critical for American companies to seek legal assistance when concluding a representation agreement in Belgium.
3.3.2
Agents and Distributors
Many U.S. companies are selling on the Belgian market through distributors and agents. New-to-market U.S. companies will find a large number of well-established representatives in virtually every industry sector. Often, their territory is larger than Belgium; it can include the Benelux (Belgium, Netherlands, and Luxembourg), and one or more neighboring European countries. European purchasers sometimes perceive Belgian agents and distributors as neutral sellers, placing them at a distinct advantage vis-à-vis their German or French counterparts. However, it is not a good idea to engage a French, German or Dutch distributor to handle their country as well as Belgium. Foreign distributors tend not to perform as well on the Belgian market. Product lines will tend to be underrepresented in Belgium and the American firm, if they signed an exclusive agreement, may not easily be able to transfer the distribution rights to a more competitive local firm. Many local well-established distributors are reluctant to take on new product lines due to various business constraints, notably the lack of access to quick and affordable financing and high social costs for additional employees. Considering the host of distribution options available, it is important for U.S. exporters to select the option best suited to his or her product. Belgian buyers generally prefer to purchase through an intermediary. Making sales directly to the end-user is rare. Sales, however, of expensive, technically sophisticated goods are an exception to this rule. Intermediaries may take one of three primary forms under Belgian law: Distributor, Agent, or Salaried Representative.
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Distributors The Law of July 27, 1961, defines the parameters of a distributorship agreement as any agreement under which the supplier reserves for its distributor(s) the right to sell, in their own name and for their own account, products manufactured or distributed by the supplier. The distributor (concessionaire) operates independently and is only bound by the written provisions of the distribution agreement. Several types of agreements exist, one of which is exclusive distributorship. Other agreements include those whereby the distributor is responsible for selling nearly all products specified by the supplier, and agreements that place significant responsibilities on the distributor to the extent that, in the case of termination, the distributor would be likely to incur substantial losses. However, these agreements are subject to specific rules and regulations regarding exclusive distribution and price-fixing. The conditions of contract termination are an important concern, and vary with the type of distribution agreement. Either party, without prior notification or indemnification, may terminate a distribution agreement of specified duration at the end of the contract period. If the termination takes place before the end of the contract period, the terminating party may be sued for breach of contract. Either party may terminate a distribution agreement with an unspecified duration without indemnification after a fair notice period, usually six months. The termination of such a contract by the producer without fair notice may be grounds for damage claims by the distributor. In addition, the Law of 1961 provides an additional fair indemnity to be paid by the supplier to the distributor. This additional indemnity applies in cases where: 1) the distributor’s activities result in a substantial increase in customers (provided they remain with the supplier after termination), 2) the distributor’s investment costs will benefit the supplier after termination; and 3) the distributor pays severance indemnities to its personnel laid off at the time of the contract’s termination.
Agents This category covers commercial agents, as well as those persons acting as agents but not fulfilling the requisites for commercial agent status. Unlike distributors, agents do not actually purchase goods for resale. Instead, they match up buyers and sellers on a commission basis. In 1995, new legislation concerning commercial agency agreements was enacted in support of the 1986 EEC (European Economic Community) Directive 86/653. This legislation defines a commercial agency agreement as a contract where the principal assigns the commercial agent negotiation and possible signatory responsibilities. Thus the agent is able to act in the name and on behalf of the principal on a permanent basis and in exchange for compensation. All agents exercise their activities in an independent manner, and their principals are exempt from payment of payroll taxes. Agents assume their own fiscal charges (business license tax and value-added tax) and social charges (health insurance, social security and retirement/pension benefits).
Commercial Agents Agents with a written contract have the status of commercial agents if they exercise their activity as a sustained independent profession and fulfill the following conditions: 1) do not have a written employment contract; 2) negotiate sales and purchases on behalf of producers, manufacturers or dealers; and 3) are registered with the Tribunal of Commerce as commercial agents. A commercial agent is independent and free to act on the behalf of any other firm. However, in the case where the agent wishes to represent the principal’s competitors, consent of the principal must be secured. The principal may justifiably terminate the commercial agent contract only if the agent shows substantial deficiency in carrying out his or her obligations. After a fair notice period, either party without indemnification may terminate an agency agreement with an unspecified duration. This period is one month during the first year of the agreement, two months during the second year and so on with a maximum of six months unless another agreement is reached between both parties. Otherwise, contract termination gives the agent a right to indemnification, often equal to two years commission.
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Other Agents Persons who do not fulfill all the requirements for commercial agency and who are not in a position of subordination to the company they represent are considered agents. A notary act or private agreement can affect the authorization of an agent. Either party may terminate the agency agreement at will, but the non-terminating party has a right to indemnification of losses.
Salaried Representative Unlike agents, salaried representatives have employment contracts. They share with their employers the burden of payroll taxes contributing to social security, unemployment compensation and retirement/pension plans.
Statutory Representative Whatever their qualifications or title, persons are considered statutory representatives if they exercise their activity as a sustained independent profession and fulfill the following conditions: 1) engage in the activity of a sales representative for the account of one or more employers; 2) desist from executing commercial operations on their own behalf; 3) institute mutual commitments with employers regarding the nature of the goods or services offered for sale, the region of activity or the category of clients and the rate of compensation.
Non-Statutory Salaried Representative Representatives who are subordinate to their employers and who do not fulfill the requisites for statutory representative status fall into a separate category and are considered regular employees.
3.3.3
Contacting and Evaluating Potential Representatives
Once an American company has identified potential representatives, it should contact them in writing. Just as the U.S. firm is seeking information about the Belgian representative, the representative will seek information about the U.S. firm. The U.S. firm should provide full information on its history, resources, personnel, product line, previous export activity and all other pertinent information. At the same time the firm is providing information on itself, it should also engage in a thorough investigation of the potential representative. The following is a list of factors that should be considered: •
Background of principal officers
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Personnel and other resources
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Sales territory covered
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Current sales volume
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Typical customer profiles
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Methods of introducing new products into the sales territory
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Names and nature of u.s. firms currently represented
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Trade and bank references
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View of in-country market potential for product
The U.S. firm should not hesitate to ask potential representatives or distributors detailed questions. Exporters have the right to explore the qualifications of those who would like to represent them internationally. www.icongrouponline.com
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Franchising Activities
Although Belgium is a small country, it is an excellent test market for launching new products in Europe. Trends in franchising reflect cultural differences. Therefore, as elsewhere in Europe, the trend is now to appoint master franchisers on a regional basis. Belgian characteristics replicate European averages regarding private and public expenditure, GDP per capita, age distribution, and activity of its population. In addition, the market is receptive to U.S. franchises. There are no particular restrictions on opening franchise operations in Belgium. The European Union Directives 4087/88 of November 30, 1988 and articles 85 and 86 of the Treaty of Rome provide the legal framework for the franchising business in the EU. For more information, contact: Belgian Franchising Federation Boulevard de l’Humanité, 116/2 B-1070 Brussels Tel: 32/2 523.97.07 Fax: 32/2 523.35.10 E-mail:
[email protected] http://www.fbf-bff.be European Franchising Federation Avenue Louise, 179 B-1000 Brussels Tel: 32/2 520.16.07 Fax: 32/2 520.17.35 E-mail:
[email protected] http://www.eff-franchise.com
3.3.5
Direct Marketing Options
Direct marketing is a steadily growing technique for selling directly to the consumer. Telephone calls at home, personalized letters and massive door-to-door letter-drops are all on the rise. However, there are signs that consumers are beginning to resist the onslaught. Belgium has several direct marketing organizations and is home to the European Direct Marketing Association. Belgian Direct Marketing Association Buro & Design Centre Esplanade du Heysel, B46 B-1020 Brussels Tel: 32/2 477.17.97 Fax: 32/2 479.06.79 E-mail:
[email protected] www.bdma.be
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The following multi-range consumer mail order catalogs are also available in Belgium: Trois Suisses35 Chaussee de Lille B-7501 Tournai Tel: 32/70 23.33.43 Fax: 32/69 88.22.11 Web site: www.3suisses.be La Redoute Rue de Menin, 4 BP1 B-7730 Estampuis Gent 1, Belgium Tel: 32/70 34.58.88 Fax: 32/9 250.55.03 Web site: http://www.redoute.be
3.3.6
Joint Ventures and Licensing Options
In addition to the Commercial Service, there are numerous banks, professional organizations, service companies, and financial organizations that are prepared to advise and assist parties considering joint ventures and licensing. Belgium has a very sophisticated business community with many qualified, potential joint venture and licensing partners.
3.3.7
Advertising and Trade Promotion
Newspapers and Magazines Belgium prints a number of newspapers and magazines in Dutch and/or French. De Standaard (Dutch daily) Gossetlaan 28 B-1702 Groot-Bijgaarden Tel: 32/2 467.22.11 Fax: 32/2 466.30.93 http://www.standaard.be Knack (Dutch weekly) Raketstraat 50, bus 2 B-1130 Brussels Tel: 32/2 702.46.51 Fax: 32/2 702.46.52 http://www.knack.be De Financieel Economische Tijd (Dutch business daily) 3 bus, 9 Posthoflei B-2600 Berchem Tel: 32/2 286.02.11 Fax: 32/2 286.02.10 http://www.tijd.be
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Trends Magazine (Dutch weekly) Raketstraat 50 B-1130 Brussels Tel: 32/2 702.48.01 Fax: 32/2 702.48.82 http://www.trends.be Le Soir (French daily) 120 Rue Royale B-1000 Brussels Tel: 32/2 225.55.55 Fax: 32/2 225.59.10 http://www.lesoir.be La Libre Belgique (French business daily) Bd. Emile Jacqmain 127 B-1000 Brussels Tel: 32/2 211.27.77 Fax: 32/2 211.27.94 http://www.lalibre.be L’Echo (French business daily) Rue de Birmingham 131, 3rd floor B-1070 Brussels Tel: 32/2 526.55.11 Fax: 32/2 526.55.26 http://www.echonet.be Trends Tendances (French business weekly) Raketstraat 50 B-1130 Brussels Tel: 32/2 702.48.01 Fax: 32/2 702.48.82 http://www.trends.be The Bulletin (English weekly) Ackroyd Publications Chaussée de Waterloo, 1038 B-1180 Brussels Tel: 32/2 373.99.09 Fax: 32/2 375.98.22 http://www.ackroyd.be
3.3.8
Steps to Establishing an Office
In an effort to modernize and streamline the procedure of setting up a company or an office in Belgium, the Belgian Government, recently established the ”Crossroads Bank of Enterprises” (Banque Carrefour des Entreprises). The “Crossroads Databank of Enterprises” is a unique repository that assigns business entities with a unique identification number. Data will be input a single time and all government entities will share this database. The database track relevant identification details, such as the name, address, VAT number and business type. Thanks to the unique
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identification number, companies will no longer have to deal with the formalities of registering with various government agencies, since these agencies will now share information with the Crossroads Databank. As of July 1, 2003 the Belgian government also created “One-Stop-Shops for Enterprises” (Guichets d’Entreprises). These are privately run non-profit offices whose mission is to be the one-stop-shop for all company procedures in Belgium. Businesses can fulfill in one location all the operations necessary in order to set up and register in Belgium. See: http://mineco.fgov.be for more information. Although possible, it is not recommended for an American firm to attempt to setup alone. Incorporation usually takes six weeks. When planning to open an office or set up a company in Belgium, U.S. companies should contact the Foreign Investment Offices of the Belgian region where they will locate. These offices will be able to provide support and advice matters of tax, employment, locating and accounting. See: •
Brussels: http://www.bea.irisnet.be
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Flanders: http://www.ffio.com
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Wallonia: http://www.ofisa.be/
The national Web site, http://www.invest.belgium.be, provides links to the three regions.
3.3.9
Selling Strategies
It is important to remember that Dutch, French, and German language divisions define consumer characteristics in the Belgian market. At the industrial level, where price/technical factors are usually paramount, the language issue is not particularly significant. At the consumer level, issues such as labeling and marketing strategies take on greater importance. In both cases, personal relationships between buyers and sellers can be influenced by the language factor, so it is important to carefully check claims by importers and distributors whether they cover the whole Belgian market.
3.3.10
Labeling Issues
All items should bear the CE mark, when applicable, as well as country of origin. The name and address of the local importer must also be included. Directions for use must be in both French and Dutch. For more information about EU labeling requirements, visit http://www.BuyUSA.gov/europeanunion.
3.3.11
Pricing Issues
Belgium is a highly competitive market and so the Belgian importer is looking for the best quality at the lowest price. American products and technology are highly regarded, but they do not command higher prices than competitive products. One must consider that, while Belgium is an important market in its own right, it is also the country of entry for many imports with destinations throughout Europe. This environment gives Belgian buyers access to a wide range of products at competitive prices in their own market. U.S. companies are advised to quote prices on Cost Insurance Freight (CIF) basis, surface or airfreight. This is standard practice for most exporters since it facilitates price comparison between EU suppliers. Import duties are usually quoted on a delivered warehouse basis.
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Currency
Since January 2002 the Euro is the national currency in Belgium. It is widely believed that a “rounding-up” phenomenon has led to some inflation. Belgian authorities insist that rounding up has been minimal and the effect on inflation was marginal. Overall, Belgian firms consider the advent of the Euro as a favorable development for their businesses. Nearly 80 percent of Belgium’s businesses say they are already comfortable using the Euro. Supplying Distribution centers are established as subsidiaries or branches of foreign companies, and they can aid a company or group of companies using the center in a variety of ways. Their services may include: the purchase of raw materials for members of the company group; storage, management, and packaging of raw materials; the sale, transport and delivery of these raw materials; and the handling of certain goods purchased for resale. In addition to expanding the activities that can be performed at distribution centers, the Belgian government has passed legislation allowing these activities to be taxed at a favorable cost-plus rate. Service centers are external and independent entities set up by a multinational company with the purpose of carrying out specific activities on behalf of the companies of the group. Just a few examples of the available services include extensive customer support, such as call centers for the follow-up and support of the sale of goods; registration and confirmation of orders; data processing; and customer information. Qualifying service centers must be established as resident Belgian companies. In contrast, coordination centers may be established as branches of a foreign company. They are designed to permit businesses from an international group of affiliated companies to receive exemptions from a number of taxes. For more information on distribution and service centers, contact any of the following offices: Ministry of Economic Affairs - Service for Foreign Investors Rue Général Leeman 60 Generaal Lemanstraat 1040 Brussels Contact: Mr. Erik Sterckx Tel: 32/2 206.58.63 or 206.58.64 Fax: 32/2 514.03.89 http://www.invest.belgium.be Fiscal Department for Foreign Investments Ministry of Finance Rue de Louvain 38 Leuvenseweg 1000 Brussels Tel: 32/2 233.82.64 Fax:32/2 233.82.70 E-mail:
[email protected] FORUM 187 (Federation of Coordination Centers) Rue Montoyer, 63 1000 Brussels, Belgium Contact: Jean-Yves Dopchie, Secretary General Tel: 32/2 282.00.50 Fax: 32/2 280.18.16
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Public Sector Marketing
Although the objective of EU directives has been to open government procurement to foreign companies, in practice it is still advisable to work with a locally established company that has the appropriate contacts and local market expertise. Purchases by national and regional government entities are subject to procurement by public tender. Thresholds for public tenders are as follows: •
Works Directive (93/37/EEC): $5.35 million
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Supplies Directive (92/36/EEC): $214,000
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Services Directive (92/50/EEC): $214,000
•
Utilities Directive (93/38/EEC): $428,000 (water, energy & transport) $640,000 (telecom) $5.35 million (works)
3.3.14
Intellectual Property Risks
Intellectual property rights (IPR) granted in the United States afford no protection in Belgium. An American company interested in protecting a U.S. patent, trademark or copyright must re-file with local, European or other competent authorities.
Patents in Belgium A patent applicant in Belgium can choose between a national and a multiple-country patent. In the latter case, a single application is filed directly with the European Patent Office in Munich and is valid in a number of countries within the EU as well as Liechtenstein, Monaco, and Switzerland. If a European patent is not delivered in one of Belgium’s three national languages, it will only be effective in Belgium once a translation is filed with the Belgian Patent Office. To obtain a national patent in Belgium, the inventor must file an application with the Belgian Patent Office in the Ministry of Economic Affairs. Belgian patents last for 20 years and are non-renewable. The request is subject to a “novelty and non-obvious” examination. Without this examination, a short-term six-year patent only may be granted. Once granted, the patent is registered with the Register of Patents, again located in the Ministry of Economic Affairs. However, the validity of the patent is not guaranteed. Belgian courts have the power to nullify a patent in a number of circumstances, such as, when the invention does not meet legal requirements. Patent Information Center Belgian Ministry of Economic Affairs Northgate III Emile Jacqmain Boulevard 15 B-1000 Brussels Mr. Georges Francis Tel: 32 2 206 41 48 Fax: 32 2 206 57 01 European Patent Office Erhardstrasse 27 D-80331 Munich Tel: 49 89 23 990 Fax: 49 89 23 99 44 65
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Trademarks Trademarks in Belgium are regulated by the 1962 Uniform Benelux Law, which offers protection in Belgium, the Netherlands and Luxembourg. A trademark application can be filed with the Belgian National Office, Ministry of Economic Affairs, or with the Benelux Trademark Bureau located in The Netherlands Benelux Trademark Bureau 15 Bardewyklaan, 2591 XR Den Haag, Tel: 31/ 70 349-1111, Fax: 31/70 374-5708, E-mail:
[email protected] http://www.bmb-bbm.org/ A search is required to ascertain the existence of a similar or identical trademark for the same category of product. If granted, protection lasts for ten years from the date of application and can be renewed for ten-year intervals. Trademarks must be used within three years of registration or any uninterrupted period of five years. An EU Trademark Office has been established in Alicante, Spain. Trademark registration can be handled through this office: EU Trademark Office Av. Aguilera 20 E-03080 Alicante, Spain Tel: 34/96 513-91-00 Fax: 34/96 513-11-73
Copyrights Belgium, along with the United States and 50 other countries, is a member of the Bern Convention and the Universal Copyright Convention (UCC) of Geneva. As such, it grants automatically intellectual property protection to all UCC countries copyrights. Protection lasts for the life of the author and extends 50 years after death. In addition, Belgium revised its copyright law, to conform to EU legislation. However, EU directives allow some flexibility in implementation for member states. U.S. firms wishing to protect their copyrights in Belgium should consult local legal counsel. This is particularly true regarding reciprocity provisions in the new law. The harmonization of national copyright legislation throughout the EU has been prioritized for certain sectors in the European Commission’s green paper and follow-up paper. Steps have been taken in the fields of: •
Computer Programs (adopted): Software protected as literary work.
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Satellite Transmissions (adopted and in force): Authorizations from the copyright holder only in the member state from which the transmission occurs.
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Cable Broadcasts (adopted and in force): Rights for the simultaneous, unaltered retransmission by cable of programs would be negotiated exclusively within collective management societies.
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Copyright period (in force since July 1, 1995): Copyright protection 70 years after the death of the author, and for neighboring rights: 50 years.
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Rental/Lending and Related Rights (adopted): Exclusive right permitting authorities, performers and producers, film and record producers to authorize or forbid the rental or lending of their works. The directive harmonizes
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member state legislation on certain neighboring rights concerning fixation reproduction, distribution, broadcasting, and communications to the public. •
Databases (proposal): Harmonization of EU copyright rules affecting databases, including an “unfair extraction” clause.
•
Design and Model Protection (proposal): 25-year period of protection for industrial models and designs.
Applications for the registration of a design are filed with the Benelux Office for Designs and Models. In July 2001, EU Member States agreed on EU-wide rules concerning online copyright. The new framework aims to harmonize copyright law across the European Union, adapt existing laws to the digital environment, and implement the World Intellectual Property Treaty into EU law.
3.3.15
Hiring Local Counsel
Belgium is not a highly litigious country. Nevertheless, U.S. companies should consult local attorneys when drawing up an agent or a distribution agreement. The standard U.S. agreement will not suffice in Europe; some standard clauses are null and void. Local attorneys are also needed when registering patents, trademarks, or copyrights. Ultimately, local legal advice is critical when setting up an office, or when establishing a distribution, service or coordination centers. The Commercial Service maintains a list of local lawyers specializing in business transactions throughout Belgium and Europe.
3.4 IMPORT AND EXPORT REGULATION RISKS 3.4.1
Effects of the EU Single Market
Belgium is a member of the EU single market, comprising some 370 million consumers. As a consequence, it participates in the process of developing and implementing harmonized product standards applicable in all 15member nations. As of January 1, 1993, the EU (in theory) became borderless, allowing for the free movement of goods and services between member nations. There are common duty rates among all EU members on products imported from non-EU countries. Harmonized standards (to a certain extent), duties, VAT, etc., ease the process of doing business in a regional market. On the other hand, U.S. companies must also remember that the EU single market consists of fifteen different and unique markets. For example, the single market does not change language and cultural differences between national markets, nor does it eliminate differences in consumer buying patterns or distribution channels. Few distributors have the capability to effectively distribute a product or service in all 15-member states. This problem is compounded by the legal differences in the treatment of agents and distributors within the EU member states. Most American firms should consider maintaining separate distributors in individual EU markets. It is also vital to obtain sound legal advice in each country. This need to support multiple strategic and marketing programs will certainly limit the benefits that a company would hope to accrue from the EU single market.
3.4.2
Trade Barrier Risks
Belgium maintains a fairly transparent business and political climate. However, that does not always translate into a commercial environment that is easy for an American company to understand or navigate. As a result, U.S. companies do sometimes encounter trade problems. These problems often result from the Belgian tendency to
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compromise and avoid confrontation. Misunderstandings sometimes result from the unclear division of responsibilities among local, regional and federal authorities. This lack of clear responsibility can lead to bureaucratic delays and inconsistent legislation. Nevertheless, Belgium offers an excellent commercial environment for American companies.
3.4.3
Government Procurement
The EU has adopted several directives covering public supplies and public works. These include the sectors of energy, water, telecommunications, and transport (the so-called “utilities” or “excluded sectors” directive). However, Belgium’s implementation of these directives has been slow and incomplete. Belgian public procurement often lacks transparency and procedures are not always enforced. In 1994, a new law on government procurement was implemented to bring Belgian legislation into conformity with EU directives. The revision has incorporated some of the onerous provisions of EU legislation, while improving certain aspects of government procurement at various governmental levels.
3.4.4
Eco-Taxes and Environmental Regulation
The Belgian government applies eco-taxes on certain products in order to redirect consumer buying patterns away from materials considered to be environmentally damaging. These eco-taxes raise costs for U.S. exporters. Environmental regulations in general are further complicated by the fact that various central government powers over the environment have been devolved to the three regions of Belgium. Implementation of eco-taxes is the responsibility of the Regions since January 2002.
3.4.5
Cattle Growth Hormone Ban
The EU bans imports of U.S. hormone-treated beef and all high-value products containing hormone-treated meat. This has led to the decrease in U.S. agricultural sales in member states of the EU, including Belgium. The WTO’s Dispute Settlement Body determined in February 1998 that the hormone ban is inconsistent with the EU’s obligations under international trade agreements. The United States is currently exporting beef to the EU only under the “Non-hormone treated cattle program.” More information regarding this program can be found on the following Web site: www.ams.usda.gov/lsg/arc/audit.htm. On October 13, 2003, the EU amended its 1996 Directive that prohibited the use of growth promoting hormones in beef production. The EU claims it is now in compliance with the WTO rulings and believes the suspension of concessions by the United States and Canada are no longer justified. However, the United States does not deem the alleged “new” evidence to be compelling or provide any new information, as is no new risk assessment based on scientific information to support the EU’s ban. Finally, scientific committees and panels truly independent from the Commission (Codex, FAO, and the UKVPC) have all found the approved hormones used in the US to be safe.
3.4.6
Valuations on Imports
As a member of the EU, Belgium applies the EU common external tariff to goods imported from non-EU countries. For goods imported into Belgium from other EU countries, no customs duties apply, unless the goods were imported from outside the EU and customs duties had not already been paid in another EU country. Import duties are based on the Cost Insurance Freight (CIF) price paid for the goods. Goods imported into Belgium or made in Belgium are subject to Value Added Tax (VAT). VAT is levied on the value that is added to the goods or services at each stage in www.icongrouponline.com
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the production and distribution process. A tax is levied at each point en route, as ownership passes from one person to another. At every stage, an ‘output’ tax is charged on the current sales value, but the ‘input’ tax which has been charged by those at an earlier stage of the game can be offset or recovered. Thus the tax liability at each stage is based on the difference between the value of the outputs and the value of the inputs (hence ‘added value’). VAT is payable upon importation, if Belgium is the destination of the goods being shipped into the EU.
3.4.7
Licenses Required for Imports
Many products may be imported or exported without a license, but certain listed products and products from certain countries are subject to an import license. An application for such a license must be made with the Office of Quotas and Licenses (OCCL/CDCV). Strategic goods are also subject to an import and/or quota license. A list of products subject to quotas or licenses can be obtained either from the office of the OCCL/CDCV, by contacting a Belgian customs broker directly, or via an American broker. For more information, contact: Ministry of Economic Affairs Office of Quotas and Licenses (OCCL/CDCV) Rue Général Leman, 60 B-1040 Brussels, Belgium Tel: +32/2 206-5816 Fax: +32/2 230-8322 Web site: www.mineco.fgov.be
3.4.8
Controls on Exports
Selling into Belgium The Bureau of Industry and Security (BIS) is responsible for the licensing of exports out of the United States. There is no longer a distinction between validated licenses and general licenses - either you need a license or you do not (NLR - No License Required). An export license is required for reasons of national security, foreign policy, and short supply. Complete information on license requirements and forms can be accessed on the Bureau of Industry and Security Web site at www.bis.doc.gov.
Selling Out of Belgium Belgian controls apply to the export and re-export of military (conventional weapons) and dual-use items, as well as materials for weapons of mass destruction. Belgian companies send all applications for export and re-export to the Office of Quotas and Licenses in the Ministry of Economic Affairs. At that point, the process varies depending on whether the export is a conventional weapon/dual use item or a nuclear-related item. If the item is a conventional weapon or dual use item, the Office of Quotas and Licenses will first determine whether, based on law and its experience, it will approve the item for export. If the Office makes an initial approval, it then sends the request for further approval to one of two federal ministers depending on the location of the Belgian company involved in the export. Once approved or rejected by the respective ministry, the applications are returned to the Office for final disposition. If the item is nuclear or nuclear-related, the Minister of Economic Affairs must approve the application, after consultation with and advice from the National Nonproliferation Board. The Board consists of representatives of five federal ministries, including Trade, Foreign Affairs, Health, Energy and Economic Affairs.
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Documentation Required for Trade
European Community Ministers agreed in 1991 to abolish virtually all customs documentation on goods moving between EU countries by January 1, 1993. However, countries outside the EU are still required to obtain proper customs documentation. The following is a summary of the documentation needed for U.S. exporters of goods to Belgium. However, such information can change overnight. U.S. exporters should always consult a reputable freight forwarder regarding recent changes in customs documentation and import/export regulations.
Packing List This is not a mandatory document. However, including a packing list should facilitate customs clearance of goods.
Certificate of Origin A certificate of origin is not, as a general rule, required under Belgian regulations for imports from the U.S. except when the certificate is specifically demanded in the import license. Sometimes certificates of origin are requested by the importer, bank, or required by a letter of credit clause. There are no regulations concerning the form and preparation of the certificate, but the data it contains has to be certified by a Chamber of Commerce, which will probably require an additional notarized file copy. Under EU regulations, certificates of origin may be required for certain goods, including goods subject to surveillance and/or quota requirements. Importers will instruct their suppliers when certificates of origin are required.
Insurance Certificate Normal commercial practices pertain. Follow the instructions of the importer and the insurance company.
Steamship Company Certificate There are no known requirements.
3.4.10
Licenses Required for Imports
The vast majority of goods from the U.S. do not require an import license (as long as the importer is Belgian).
3.4.11
U.S. Shippers Export Declaration
This is required if the value of the shipment is more than $2,500 ($500 for shipments through the U.S. postal service) or where a validated license is needed. The $2,500 exemption ($500 for shipments through the U.S. postal service) applies to goods under each Schedule B number in a single shipment from one exporter to one importer.
3.4.12
Consular Fees
There is no known general requirement to have documents legalized. If requested to legalize a shipping or legal document, Belgian officials will usually do so for a nominal fee. Please verify the policy of the consular office used regarding this matter.
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Entering Temporary Imports
Legislation exists that exempts goods brought into Belgium for re-export from import duties and VAT. Such goods must be kept in a bonded warehouse until they are re-exported. The shipment does not have to be re-exported in total. The portion of the shipment destined for the local or EU market is liable for duties and VAT at the time when the importation takes place. Additionally, goods may be sorted, repacked and relabeled in bonded warehouses. Many customs clearing agents in the main ports and airports are able to provide these services in bonded warehouses. For temporary entry of goods, Belgium accepts an ATA Carnet. An ATA Carnet is an international customs document that simplifies customs procedures for the temporary importation of commercial samples, professional equipment and goods for exhibitions and fairs. The Carnet facilitates international business by avoiding extensive Customs procedures, eliminating payment of duties and value-added taxes and eliminating the purchase of temporary import bonds. The document is valid for up to one year, and can be used for multiple shipments between the United States and Belgium. The United Council for International Business has been designated by the U.S. Treasury Department as the sole issuer and guarantor of ATA Carnets in the United States. For more information, visit the United States Council for International Business at www.uscib.org or call (202) 702-5078.
3.4.14
Labeling Issues
Until recently, each EU country regulated its domestic industries for packaging and labeling. As part of the EU’s 1992 single internal market program, the EU is now attempting to remove technical barriers by harmonizing existing European legislation and establishing new rules, when necessary, so that goods sold in one EU country can be marketed easily in any other EU country. However, differences still exist from country to country. In addition, national requirements exist side by side with EU-wide requirements. The following is a review of packaging and labeling regulations in Belgium affecting U.S. exporters. The review covers both national and EU-wide aspects of packaging and labeling in Belgium. Probably the most common question regarding packaging and labeling in Belgium is “what language am I required to use?” Belgium recognizes three official languages: Dutch, French and German. The prevailing Belgian law simply requires that consumers of the targeted market must be able to read the product information. Typically, this has been Dutch in the northern half of Belgium (Flanders), French in the southern half of Belgium (Wallonia) and German in two small communities of German-speaking Belgians on the Belgian-German border. Generally, both Dutch and French appear on all products sold in the Belgian market and should be considered the most prudent option for all newcomers. The language requirement is enforced rather liberally. For example, a judge in the Flemish city of Mechelen ruled in favor of a German company that resisted labeling its product in Dutch, as he deemed the local populace to be sufficiently well versed in German. With only minor exceptions, there are no general labeling requirements on Belgian imports. Requirements for specific products should be obtained from the importer. Certain commodity imports, including numerous food items, are subject to special labeling regulations requiring that one show the manufacturer, composition, content (in metric units), and country of origin (i.e., Made in the U.S.A). These special detailed and diverse regulations largely relate to health and quality standards, and are embodied in formal Belgian legislation and in EU directives. At the retail level, labels and all other indications, instructions and safety warnings should be bilingual in French and Dutch. Given the complexity of this field, information should be requested from the importer prior to shipment. The Belgian packaging institute has 273 members.
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The address of this non-profit organization is: Institut Belge de l’Emballage Research Park Zellik Kranenberg 10 B-1731 Zellik, Belgium Tel: 32/2 464-0210 Fax: 32/2 464-0239 E-mail:
[email protected]
3.4.15
Restrictions on Imports
Few products are prohibited from importation into Belgium. Among these are endangered species, including those listed in the CITES convention. Also prohibited from importation are weapons such as swordsticks, daggers, bludgeons, and rifles above 20 caliber and antipersonnel mines. American-raised beef treated with hormones also may not be imported under EU regulations. As the list of prohibited items is subject to change, please contact the American Embassy for the latest information. While the list of prohibited items is small, many products are subject to strict licensing and control. Belgian customs brokers or the American Embassy in Brussels can provide additional information. Listed below are Belgian government offices that can provide information on specific restrictions and control measurements: For information on products that are subject to import restrictions, contact: Ministry of Economic Affairs Office of Licenses Rue Général Leman B-1040 Brussels, Belgium Tel: +32/2 206-5804 Fax: +32/2 230-8322 Web site: www.mineco.fgov.be For information on agricultural products that are subject to an import certificate, contact: Belgian Bureau for Intervention and Restitution Trierstraat 82 B-1040 Brussels, Belgium Tel: +32/2 287-2411 Fax: +32/2 280-0307 Web site: www.birb.be For information on regulations for the marketing of wine, contact: Ministry of Economic Affairs Office Economic Inspections WTC III - Simon Bolivarlaan 30 B-1000 Brussels, Belgium Tel: +32/2 208-3611 Fax: +32/2 208-3915 E-mail:
[email protected]
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For information on importing live animals and other animal products, plants, and vegetables, contact: Federal Food Agency WTC III - Simon Bolivarlaan 30 B-1000 Brussels, Belgium Tel: +32/2 208-3211 Fax: +32/2 208-3591 Web site: www.favv.be For information on the Country of Origin Certificate for the import of textile products, contact: Ministry of Economic Affairs Office of Economic Licensing Generaal Lemanstraat 60 B-1040 Brussels, Belgium Tel: +32/2 206-5830 Fax: +32/2 230-8322 Web site: www.mineco.fgov.be For information on importing other food, contact: Ministry of Health General Food Inspection R.A.C. - Esplanadegebouw Pachecolaan 19, bus 5 B-1010 Brussels, Belgium Tel: +32/2 210-4843 Fax: +32/2 210-4816 Web site: www.health.fgov.be For information on product safety requirements, contact: Ministry of Economic Affairs Office Quality and Safety Koning Albert II-laan 16 B-1000 Brussels, Belgium Tel: +32/2 206-4111 Fax: +32/2 206-5752 Web site: www.mineco.fgov.be For information on the import of narcotics and psychotropic substances, contact: Ministry of Health Directorate-General Public Health Protection: Medicinal Products R.A.C. - Vesaliusgebouw Pachecolaan 19, b. 5 B-1010 Brussels, Belgium Tel: +32/2 210-4917 Fax: +32/2 210-4880 Web site: www.afigp.fgov.be
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Local Standards
In recent years, the European Union under its “New Approach” has taken a prominent role in developing harmonized, EU-wide standards. Prior to EU harmonization, each member country had its own national body for developing standards. At times these nationally legislated standards could differ from one another and come into conflict, creating technical barriers to trade among EU countries. Today, there are three bodies that create standards at the EU level: The European Committee for Standardization (CEN), the European Committee for Electrotechnical Standardization (CENELEC), and the European Telecommunications Standards Institute (ETSI). Standards issued by these bodies supersede any national standards that may exist. Although the European Union’s standards legislation takes preeminence over that of national governments, exporters cannot overlook member states’ national standards bodies. National standards bodies are still responsible for developing standards in those areas that are not yet covered by EU-level standards. The Belgian Institute for Standardization (IBN), a non-profit organization dependent on the Ministry of Economic Affairs, is responsible for the development of standards in Belgium. It represents Belgium as a member of the Comité Européen de Normalisation (CEN) and of the International Organization for Standardization (ISO). In addition, the Belgian Electrotechnical Committee develops standards in the electrotechnical (i.e. electric and electronic) field. It sits on the European Committee for Electrotechnical Standardization (CENELEC) and the International Electrotechnical Commission (IEC). In Belgium, standards are developed by two bodies: Institut Belge de Normalisation Avenue de la Brabançonne 29 B-1000 Brussels Belgium Tel: +32-2-738-0111 Fax: +32-2-733-4264 www.ibn.be Mr. Dinant E-mail:
[email protected] Belgian Electrotechnical Committee Blvd. A. Reyers 80 B-1030 Brussels Belgium Tel: +32-2-706-8570 Fax: +32-2-706-8580 www.bec-ceb.be E-mail:
[email protected] Both of these organizations closely follow EU and international standards developments. Neither body has an annual plan of standards that it tries to develop.
Conformity Assessment The list of the main conformity testing organizations can be found on the Web site of the Belgian Organization for Accreditation: www.belac.fgov.be.
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Product Certification A list of products for which certification is required can be obtained from the Belgian Organization for Accreditation: www.belac.fgov.be. All mutual recognition agreements (MRAs) between Belgium and the U.S. are covered by the existing MRAs between the EU and the United States. Visit ts.nist.gov/ts/htdocs/210/gsig/mra.htm for more information about the MRAs that are in place.
Accreditation Belgium has only one Accreditation Body, the Belgian Accreditation Structure (BELAC). Under the authority of the Ministry for Economic Affairs, it integrates the activities of BKO/OBE (accreditation of calibration laboratories), BELTEST (accreditation of testing laboratories and inspection bodies) and BELCERT (accreditation of certification bodies and environmental verifiers). Strong cooperation between BELAC and the various Belgian authorities has led to the development of accreditation requirements in an increasing number of sectors. Web site: www.belac.fgov.be Contact: Mrs. Van Laetem
3.4.17
Technical Regulations
Technical regulations are recorded in Le Moniteur Belge, a publication only available online at www.just.fgov.be. A distinction must be made between registered standards and ratified (confirmed) standards. Registered standards are existing EU and international standards that are listed in Le Moniteur Belge. No one can comment on these lists. Ratified (confirmed) standards are also published in the Moniteur, as Royal Decrees. Before publication, however, the Belgian Standards Institute and the Belgian Electrotechnical Committee first publish a draft standard in Le Moniteur that is open for comments.
3.4.18
Labeling Issues
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 (dual labeling is acceptable until end of December 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 Eco-Label The EU adopted legislation in 1992, revised in 2000, to distinguish environmentally friendly production through a voluntary 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 www.icongrouponline.com
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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.
Contact Information Institut Belge de Normalisation Avenue de la Brabançonne 29 B-1000 Brussels Belgium Tel: +32-2-738-0111 Fax: +32-2-733-4264 www.ibn.be Contact: Mr. Dinant E-mail:
[email protected] Belgian Electrotechnical Committee Blvd. A. Reyers 80 B-1030 Brussels Belgium Tel: +32-2-706-8570 Fax: +32-2-706-8580 www.bec-ceb.be E-mail:
[email protected] Belgian Organization for Accreditation (BELAC) WTC III Blvd. Simon Bolivar 30 B-1000 Brussels Tel: +32-2-208-3630 Fax: +32-2-208-3655 www.belac.fgov.be Contact: Mrs. Nicole Vanlaethem E-mail:
[email protected]
3.4.19
Free Trade Zones and Warehouses
While Belgium has no free trade zones, it does have bonded warehouses located near the port of Antwerp and the international airport. In addition, with the authorization of the customs authorities, a U.S. firm may create a private bonded warehouse and thereby delay and even avoid payment of customs duties (in the case of re-exports outside the EU). Private bonded warehouses can be established anywhere in Belgium, not just around the harbors or airports. These warehouses can be part of a company’s manufacturing or distribution site. Goods may remain in such warehouses for up to one year, with duties and VAT payable only upon sale within Belgium or in cases of re-export to other countries within the EU. A bank guarantee and certain reporting requirements are necessary to operate such a facility, and there are other stipulations governing such a warehouse.
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Additional Trade Issues
In 1995, fifty-three companies created FOST PLUS, a non-profit organization designed to address the problem of reducing all forms of household packaging waste. FOST PLUS now has 6,443 members from the distribution and manufacturing sectors. It is tasked with coordinating the selective collection and sorting of domestic packaging waste in the three regions of Belgium. The aim is to extract value from the waste by recycling it, make use of it to produce other materials or dispose of it in various energy recovery methods. Its purpose is to assist in the enforcement of EU Directive 94/62 on recycling packaging, which provides its members a means for avoiding eco- taxes. FOST PLUS gives companies the option to recycle packaging themselves or adhere to FOST PLUS as a substitute. As a result, all Belgian beverage manufacturers now adhere to FOST PLUS, which recycles 85 percent of all collected domestic packaging waste, the world’s best record. In addition to FOST PLUS, other organizations have been created for the purpose of industrial waste reclamation. VAL-I-PAC was established in early 1998, and like FOST PLUS, it is responsible for the collection and valorization of industrial packaging waste. RECUPEL was established in July 2001 to collect and recycle end-of-life electric and electronic equipment in Belgium, to assist in the enforcement of the WEEE EU Directive. RECYTYRE is similarly responsible for the collection and recycling of used tires. FOST Plus Rue Martin V, 40 BE-1200 Brussels Contact: Mr. Steve Claus, Business Services Manager Tel: +32/2 775-03-50Fax: +32/2 771-16-96 E-mail:
[email protected] Web site: www.fostplus.be VAL-I-PAC Koningin Astridlaan 59, Box 11 BE-1780 Wemmel Contact: Mr. Johan Sneyers, Director Tel: +32/2 456-83-11 Fax: +32/2 456-83-20 E-mail:
[email protected] Web site: www.valipac.be RECUPEL Blvd. A. Reyers 80 BE-1030 Brussels, Belgium Contact: Mr. Willy Quinart, Director Tel: +32/2 706.86.16 Fax: +32/2 706.86.13 E-mail:
[email protected] Web site: www.recupel.be RECYTYRE Blvd. de la Woluwe 46 BE-1200 Brussels, Belgium Contact: Mr. Christophe Broeckx, Director Tel: +32/2 778.62.00 Fax: +32/2 778.62.22 E-mail:
[email protected] Web site: www.federauto.be www.icongrouponline.com
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Adherence to Free Trade Agreements
Incorporated into the charter of the European Union is a law modeled on its U.S. counterpart. Basically, any specific legislation not ratified by the EU will be left to the member countries to implement as they see fit. While recent EU legislation does not conflict with what is being brought into law in Belgium, it is important to be aware of impending EU regulations as they may override local Belgian laws.
3.5 INVESTMENT CLIMATE Belgium has a number of location-related factors that enhance its attractiveness for foreign investors. The country offers the logistical advantages of an excellent transport infrastructure, a geographic position as the center of the European Union, many high-quality industrial sites, and a skilled and productive workforce. Belgium is not only the political center of European Union governance, but the commercial center as well. It is home to some 900 U.S. companies. Brussels lies in the center of a 600-kilometer radius within which 70 percent of all the purchasing power of the European Union is located; Belgium therefore provides an excellent base for reaching the increasingly integrated European market.
3.5.1
Openness to Foreign Investment
Belgium has traditionally maintained an open economy, highly dependent on imports and international trade for its well-being. Since WWII, foreign investment has played a vital role in the Belgian economy, providing technology and employment. Both the federal and the regional governments encourage foreign investment on a national treatment basis. Foreign corporations in Belgium account for about one-third of the top 3,000 corporations.
3.5.2
Takeover Legislation
Belgium, like the U.S., has a takeover law that requires all owners of five percent or more of a corporation’s total voting stock to notify both the Ministry of Economic Affairs and the Banking and Finance Commission (Belgium’s equivalent of the U.S. Securities and Exchange Commission). For each additional ownership increment of five percentage points, further disclosures are required. In exchange for this enhanced protection against corporate raiders (who can no longer operate anonymously), all companies listed on the Brussels Stock Exchange are required to provide detailed information on their corporate ownership structure to the Banking and Finance Commission (the nearest Belgian equivalent to the FTC or is this SEC?). In a takeover bid or public offer, the bidder must file with the Banking and Finance Commission a statement revealing its own financial credentials in combination with the details of the deal. Under EU law, very large mergers ($3 billion or more in combined turnover) must be approved by the EU Commission (formerly DG-IV, the Directorate General for Competition Policy). Belgian corporate legislation was changed in 1990 to prevent golden parachutes as well as poison pills and other techniques used to block corporate raiders. In 2002, the Federal government introduced legislation regarding ‘corporate governance’. This legislation aims to provide some autonomy, transparency and responsibility to corporate boards of companies whose controlling shareholder is itself taken over by a foreign firm, which is a competitor. The law was finally introduced after several dubious takeovers favoring the controlling shareholders. One of the cornerstones of the new law is the requirement to constitute a committee of independent board members.
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Screening
Belgium has no foreign investment screening mechanism, although as majority shareholder, the government controls investment in public-sector firms. Other investment restrictions that do exist, such as the law requiring local approval for large-scale retail outlets, do not discriminate between Belgian and non-Belgian firms. However, several American franchise companies have been frustrated in their investment plans in Belgium because of this law.
3.5.4
National Treatment
Belgium generally provides impartial treatment to foreign investors. However, the establishment of an insurance company or travel agency is subject to reciprocity. A few sectors require majority Belgian (or EU) ownership: aviation, inland shipping, and the ownership of Belgian-registered ships. Public works including construction and procurement (when at least 25 percent of the cost is paid by Belgian public authorities) are restricted to Belgian and EU firms. Private or public monopolies exist in the following sectors: postal services (for packages up to 50g), the national railways, airport operation and local public transport.
3.5.5
Conversion and Transfer Policies
Payments and transfers within the Belgian-Luxembourg Economic Union (BLEU) and with foreign countries require no prior authorization. Transactions may be executed in Euros as well as in other currencies. On May 1, 1998, Belgium became one of the 11 EU member states that agreed to form a de facto currency union (European Monetary Union) with a single currency, the Euro. On January 1, 1999, exchange rates were irrevocably fixed among Euro zone currencies, with 1 Euro equal to Belgian Francs (BF) 40.3399. Euro coins and bank notes were introduced in early 2002. Old BF coins and notes can henceforth only be changed at National Bank of Belgium offices or in Post offices. Belgium has no debt-to-equity requirements. Dividends may be remitted freely, except in cases in which distribution would reduce net assets to less than paid-up capital. No further withholding tax or other tax is due on repatriation of the original investment or on the profits of a branch, either during its operations or upon the closing thereof.
3.5.6
Expropriation and Compensation
There are no outstanding expropriation or nationalization cases in Belgium with U.S. investors. There is no pattern of discrimination against foreign investment in Belgium. When the Belgian government does use its eminent domain powers to compulsorily acquire property for a public purpose, adequate compensation is paid to the property owners. Recourse to the courts is available if necessary. The only expropriations that occurred during the last decade were related to infrastructure projects such as port expansion, roads, and railroads.
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Dispute Settlement
Belgium’s legal system is independent of the government and is a means for resolving commercial disputes or protecting property rights. As in many countries, the Belgian courts labor under a growing caseload. Backlogs in the Belgian court system seem to make delays almost inevitable. There are several levels of appeal. Bankruptcy in Belgium is covered by an 1851 law and is under the supervision of the commercial courts. Bankruptcy applies only to businesses and may be initiated by a creditor or the company. The commercial court appoints both a judge-auditor to preside over the bankruptcy proceeding and a receiver responsible for realizing the available assets to pay creditors. Belgian bankruptcy law recognizes several classes of preferred or secured creditors. Judgments in commercial cases, including bankruptcy cases, are generally made in Euro. Belgium has a system under which firms in difficulty can restructure their debts through agreement with their creditors. This system is in some respects similar to Chapter 11 in the U.S. The government accepts binding international arbitration of disputes between foreign investors and the state; the most recent example being the international arbitration between the Belgian government and Sonatrach, the Algerian gas company. Belgium is a member of the International Center for the Settlement of Investment Disputes (ICSID) and regularly includes provision for ICSID arbitration in investment agreements.
3.5.8
Performance Requirements and Incentives
Since the law of August 1980 on regional devolution in Belgium, investment incentives are the responsibility of Belgium’s three regions: Brussels, Flanders, and Wallonia. Most tax measures are designed to attract new investment, but remain under the control of the federal government, as well as the parameters (social security, wage agreements) that govern salaries. In general, all regional and national incentives are available to foreign and domestic investors alike. Belgian investment incentive programs at all levels of government are limited by EU regulations and thus are kept in line with those of the other EU member states. The European Commission has tended to discourage certain investment incentives, in the belief that they distort the single market, impair structural change, and threaten EU convergence as well as social and economic cohesion. In their investment policies, the regions have put new emphasis on meeting general objectives such as promoting innovation, research and development, energy saving, environmental cleanliness, exports, and most of all, employment. In order to provide coordinated service to foreign investors, the Belgian government established a Federal Agency for Foreign Investors (FAFI), in 1996, at the Ministry of Economic Affairs. This agency is very controversial with the regional governments, however, who have been given full power in the Belgian constitution to promote their regions to foreign investors with their own investment agencies - Flanders Foreign Investment Office (FFIO) and the Office for Foreign Investment (OFI) in Wallonia. In addition, the Finance Ministry has established a foreign investment tax unit to provide assistance to foreign investors in dealing with Belgian tax laws and to make the tax administration more “user friendly” to foreign investors. Performance requirements in Belgium usually relate to the number of jobs created. There are no known cases where export targets or local purchase requirements were imposed. The government reserves the right to reclaim incentives if the investor fails to meet his employment commitments. Enforcement, however, is rare. In one case, the Flemish Administration sued an American firm to recover incentives after the firm was forced by environmental regulations to close its plant.
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Notwithstanding the devolution of investment subsidies to the three regions, the federal government still controls tax policy, including special tax deductions for certain types of investment: new venture capital companies, coordination, distribution, and service centers.
Coordination Centers Coordination centers serve companies of an international group and can perform various financial and other services such as financing, leasing, re-invoicing and factoring, as well as administrative and support services. A center consists of affiliated companies maintaining at least a 20 percent direct or indirect participation in one or more other companies under common agreement. Coordination centers are granted special tax status for a period of 10 years. They can be established as branches of foreign companies or as Belgian stockholding companies and can be located anywhere in Belgium. During the 10-year period, recognized coordination centers are taxed on national income calculated as between 8 and 12 percent of a center’s incurred expenses. Salary costs and financing expenses are disregarded when determining the amount of expenses to which the percentage is applied. Coordination centers are also exempt from real estate taxes, withholding taxes on dividends, interest, and registration taxes. Foreign employees of a recognized coordination center do not need a work permit or professional card in Belgium. There is one employment condition, however: the center should employ, in Belgium, at least 10 employees within 2 years from the beginning of its activities. There are almost 400 recognized coordination centers in Belgium, many of them American-owned. However, Belgian centers figure prominently on the EU’s so-called Primarolo list, which features harmful tax competition practices among member states.
EU Development Zones EU development zones are business development zones defined by the EU under the European Regional Development Fund where regions can offer more substantial business incentive grants. Significant cash grants up to about 21 percent of the total approved investment for medium and large companies can be made available. In addition, companies located in EU development zones can also benefit from certain tax exemptions and benefits.
Ecological Subsidies An ecological subsidy is an alternative to a cash grant. It cannot be combined with other cash grants and is available to companies investing in improvements to their facilities over and above the requirements imposed by environmental law. The ecological subsidy helps to cover the company’s additional expense on improvements. It does not require a location in an EU development zone.
Distribution Centers Belgian tax authorities have also established a special tax regime applicable to Belgian distribution centers of foreign multinational enterprises that meet certain conditions. Recognized Belgian distribution centers pay taxes on a fixed percentage (five percent) of their operating costs. The newly established distribution center may operate as a branch of a foreign company or a Belgian subsidiary. No specific rules apply to minimum employment or turnover, in contrast to rules for coordination centers. Qualifying distribution centers can realize significant tax savings.
Service Centers New tax incentives, similar to those for distribution centers, were approved for service centers by the Belgian parliament in July 1996. The Belgian government issued a tax circular designed to extend the scope of the existing incentives to intra-group service centers, including call centers, which are perceived as a major source of recent foreign investment. To qualify for the advantages of the new service center status, a number of conditions under the “corporate structure,” the “intra-group condition,” and the “authorized activities” must be met. Qualifying service centers must be established as Belgian resident companies. The definition of service centers only includes intra-
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group service centers. Interested parties will be able to obtain a tax ruling on transfer pricing for a five-year renewable period before the establishment of the service center. With respect to authorized activities, the center must be a purely operational, non-decision making entity. Its role must be that of a mere “interface” between customers of the company and the companies of the group, or between companies of the group themselves. Any operation that, by nature, would tend to increase the turnover of companies in the group is automatically excluded.
Employment and Training Incentives The Belgian government has implemented two initiatives to reduce social security contributions for employers. First, an employment plan includes a reduction in social security contributions (75 percent in the first year, 50 percent in the second) for all employers who were unemployed for the last 12 months. This results in a reduction of the total annual payroll costs by 19 percent in the first year and 13 percent in the second. However, the plan cannot be combined with any other social security incentives and is valid for a maximum of two years.
3.5.9
Non-Tariff Barriers
In Belgium, significant delays remain in providing market authorization and approval of pricing and reimbursement for new pharmaceutical products. The lengthy process to obtain marketing approval in Belgium shortens considerably the period of patent protection. Under the centralized European procedure, mandatory for new products, the supplementary protection certificate period depends on the date of first approval. US companies are disproportionately affected by procedural delays as they are among the most active in developing and bringing to market innovative new products. Pharmaceuticals in Belgium are also under strict price controls. There is a price freeze on reimbursable products and a required price reduction on drugs on the market for fifteen years. A fourpercent turnover tax is charged on all sales of pharmaceutical products. Control of prices for reimbursed and nonreimbursed products affect not only in-country sales, but export sales to third markets for which the Belgian price is the reference price. More generally, the U.S. pharmaceutical industry considers the Belgian situation regarding pharmaceuticals to be non-compliant with the very concept and structure of the European internal market.
3.5.10
Right to Private Ownership and Establishment
Both domestic and foreign private entities have the right to establish business enterprises. This right is well established in Belgium’s constitution and in law. The right to acquire or sell interests in business enterprises is similarly protected by law. No restrictions in Belgium apply specifically to foreign investors. Foreign interests may enter into joint ventures and partnerships on the same basis as domestic parties, except for certain professions such as doctors, lawyers, accountants and architects. All investors, Belgian or foreign, must obtain special permission to open department stores, provide transportation services, produce and sell certain food items, cut and polish diamonds, or sell firearms and ammunition. There is competitive equality between public and private enterprises with respect to market access, credit and other business operations such as licenses and supplies.
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Protection of Property Rights
Property rights in Belgium are well protected by law. The courts are independent and considered effective in enforcing property rights. Belgium generally meets very high standards in the protection of intellectual property rights. Rights granted under American patent, trademark, or copyright law can be enforced in the United States, its territories and possessions only. The EU, for its part, has taken a number of initiatives to provide intellectual property protection, but not all measures have been implemented. In cases of non-implementation, national laws still prevail.
Patents Belgium is a member of the World Intellectual Property Organization (WIPO) and the European Patent Convention (EPC). Under Belgian law, national authorities automatically grant a patent for a period of six years upon application. Applicants desiring protection for twenty years must request a novelty and non-obviousness search together with their application, and the Belgian Patent Office cannot refuse to issue a patent. A single EU-wide patent does not yet exist since the community patent convention has not yet come into force. In the meantime, the patent applicant can choose between a national a nd a multiple-country patent. In the latter case, a single application to the European Patent Office in Munich is required for obtaining patents valid in a number of countries within the EU, as well as Liechtenstein, Monaco and Switzerland. A patent thus granted will not be valid in Belgium unless a copy of the grant in one of Belgium’s three official languages is filed with the Belgian Office of Industrial Property described below.
Trademarks An EU Trademark Office has been established in Alicante, Spain. Applications for EU trademarks should be directed to this office. Trademarks in Belgium are regulated by the Uniform Benelux Law of 1962, which offers protection in Belgium, the Netherlands and Luxembourg. An application for a trademark can be filed either with the Belgian National Office in the Ministry of Economic Affairs or with the Benelux Trademark Bureau located in the Netherlands (Bankastraat 51, The Hague). A search is required to ascertain the existence of a similar trademark for the same category of product. If granted, protection lasts for ten years from the date of application and can be renewed for further periods of ten years. Trademarks must generally be used within three years of registration. Trademark Exhaustion An EU directive regarding trademarks applies the principle of community exhaustion, under which parallel imports into the European Community are prohibited without the approval of the trademark holder or his authorized distributor. Belgium and its Benelux partners previously applied the principle of universal exhaustion under which parallel imports were allowed. A few cases have reached the Belgian commercial courts, which have returned divergent opinions as to whether Community exhaustion has replaced universal exhaustion in Belgium.
Copyrights Belgium is a member of the Bern Convention and the Universal Copyright Convention of Geneva (UCC). As a member of the UCC, to which the United States and 50 other countries belong, Belgium accords automatic copyright protection to works produced in other UCC countries. Protection exists for the life of the author, plus 70 years after death. In addition, Belgium has passed a revised copyright law in 1994 that brings Belgian practice into conformity with existing EU directives. EU directives, however, permit some variation among member states, and U.S. firms wishing to protect their copyrights in Belgium should consult local legal counsel. Neither the U.S. nor Belgium are parties to the Rome Convention. National treatment of foreign rightholders is a basic principle, defined in the 1994 Belgian copyright law. However, if Belgian rightholders benefit from less generous protection in a foreign country, the principle of reciprocity applies to the citizens of that country. This is the case for the U.S., which does not grant protection of neighboring rights to Belgian artists or performers, nor to Belgian producers of records and movies. As a consequence, U.S. citizens in Belgium are subject to the same restrictions. According to the Business Software
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Alliance (BSA), about 29 percent of all software circulating in Belgium is used in violation of copyright laws, which is equivalent to a loss in revenue of $ 240 million annually.
Designs Applications for the registration of a design are filed with the Benelux Office for Designs and Models or with the Ministry of Economic Affairs. The inherent validity of the design or model is not examined. This will only be decided by a court in the event of a dispute. Protection is granted for five years and is renewable twice.
TRIPS Belgium has fully implemented the WTO (World Trade Organization) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
3.5.12
Transparency of the Regulatory System
The Belgian Government has adopted a generally transparent competition policy and effective laws foster competition. Tax, labor, health, safety, and other laws and policies to avoid distortions or impediments to the efficient mobilization and allocation of investment exist comparable to those in other European Union member states. Nevertheless, foreign and domestic investors in some sectors face stringent regulations designed to protect small and medium-sized enterprises. Many companies in Belgium also try to limit their number of employees to 49 -the threshold above which a number of employee committees must be set up, such as ones for safety, trade union interests, and others. Recognizing the need to streamline administrative procedures in many areas, the Federal Government set up a special task force in 1998 to simplify official procedures. It also agreed to reorganize the numerous new laws regarding the telecommunications sector into one comprehensive volume after new entrants in this sector had complained about a lack of transparency. The American Chamber of Commerce has called attention to the adverse impact of cumbersome procedures and unnecessary red tape on foreign investors, although foreign companies do not necessarily suffer more from this than Belgian firms.
3.5.13
Capital Market Risks
Belgium has in place policies to facilitate the free flow of financial resources. Credit is allocated at market rates and is sufficiently available to foreign and domestic investors without discrimination. Belgium is fully served by the international banking community and is implementing all relevant EU financial directives. Because the Belgian economy is directed toward international trade, more than half of its banking activities involve foreign countries. Belgium’s major banks are represented in the financial and commercial centers of dozens of countries by subsidiaries, branch offices and representative offices. There are 66 banks in Belgium, including 12 branches of foreign banks. Belgium is one of the most heavily banked countries in the world. Mergers and acquisitions have been a prominent feature in the Belgian banking sector throughout the nineties. Belgium’s three largest banks have combined assets of $443 billion. The total assets of the banking system are approximately $629 billion. The banking system is considered sound. The country’s banks use modern, automated systems for domestic and international transactions. The Society for Worldwide Interbank Financial Telecommunications (SWIFT) has its headquarters in Brussels. Euroclear, a clearing entity for transactions in stocks and other securities, is also located in Brussels.
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Belgium also has a well-established stock market. In fact, the first stock market ever was organized in Antwerp in the 14th century. At the end of 2000, the Brussels stock market merged with the Paris and Amsterdam bourses into Euronext, a pan-European stock-trading platform. A company may increase its capital either by capitalizing reserves or by issuing new shares. An increase in capital requires a legal registration procedure. New shares may be offered either to the public or to existing shareholders. Public notice is not required if the offer is to existing shareholders, who may subscribe to the new shares directly. An issue of bonds to the public is subject to the same requirements as those for a public issue of shares. The company’s capital must be entirely paid up, and existing shareholders must be given preferential subscription rights. In Belgium, there are many cases of cross-shareholding and stable shareholder arrangements, but never with the intent to keep out foreign investors. Likewise, anti-takeover defenses are designed to protect against all potential hostile takeovers and not primarily foreign hostile takeovers.
3.5.14
Corruption
On March 23, 1999, new anti-bribery legislation came into force in Belgium. The new law represents a complete revision of Belgian criminal law in the field of corruption, also extending the competence of Belgian courts to extraterritorial bribery. Henceforth, bribing international officials is a criminal offense in Belgium, even if done abroad. There is changing information regarding the subject of Nationality Jurisdiction Principles. Some countries, such as Belgium, while asserting nationality jurisdiction make it contingent upon the principles of dual criminality or reciprocity, thus requiring that the laws of the country whose official is bribed or a third country where the bribe is paid also prohibits bribery of foreign officials. According to “Addressing the Challenges of International Bribery and Fair Competition, 2000,” and under chapter 2: Review of National Implementing Legislation, under article 3 of the Criminal Code, jurisdiction is established over offenses committed with Belgian territory by Belgian or foreign nationals. Act 99/808 added Article 10 related to the Code of Criminal Procedure. This provides for jurisdiction in certain cases over pensions (foreign as well as Belgian nationals) who commit bribery offenses outside the territory of Belgium. Various limitations apply, however. For example, if the bribe recipient exercises a public function in an EU member state, Belgian prosecution may not proceed without the formal consent of the other state. In the law, the definition of corruption is extended considerably. In the future, it will count as passive bribery if a government official or employer requests or accepts a benefit for himself or somebody else in exchange for behaving in a certain way. Active bribery is defined as the proposal of a promise or benefit in exchange for behaving in a certain way. In the past, anti-corruption law did not cover attempts at passive bribery. The most controversial innovation is the introduction of the concept of ‘private corruption’, i.e. corruption among private individuals. Corruption by public officials carries heavy fines and/or imprisonment between 5 and 10 years. Private individuals face similar fines and slightly shorter prison terms (between six months and 2 years). The new law not only holds individuals accountable, but also the company they are working for. Contrary to earlier legislation, payment of bribes to secure or maintain public procurement or administrative authorization through bribery in foreign countries is no longer tax deductible. Recent court cases in Belgium suggest that corruption is most serious in government procurement, defense contracting, and public works contracting. American companies have not, however, identified corruption as a barrier to investment. The responsibility for enforcing corruption laws is shared by the Ministry of Justice through investigating magistrates of the courts and the Ministry of the Interior through the Gendarmerie, which has jurisdiction in all criminal cases. A special unit, the Central Service for Combating Corruption, has been created for enforcement purposes, but still lacks the necessary staff. In a recent corruption case, eight persons were convicted, including a former Defense Minister. The court found that the Minister’s immediate staff had ordered surveys and research projects from a research institute. The institute www.icongrouponline.com
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refunded part of its fees to the Minister’s staff, which used the money to pay the salaries of certain ministerial aides and for campaign funds. The former Minister was given a suspended two-year prison sentence, a $4,000 fine, and a five-year suspension of his civil and political rights. The Court of Cassation (Belgium’s highest court) has conducted an investigation into corruption cases regarding the 1988 Agusta helicopter contract and contracts won by the French Dassault enterprise in 1988 for the update of Mirage fighters and for supplying electronic counter measures (ECM) equipment for Belgium’s F-16 fighters. The investigation resulted in the conviction of ten high-ranking Belgian officials, the highest one being the former Secretary General of NATO.
3.5.15
Bilateral Investment Agreements
Belgium has bilateral investment treaties in force with Tunisia, Morocco, Indonesia, the Republic of Korea, Congo, Egypt, Romania, Singapore, Malaysia, Cameroon, Bangladesh, Sri Lanka, Rwanda, China, Hungary, Turkey, Malta, Poland, Bulgaria, Russia, Burundi, the Czech republic, the Slovak Republic, Argentina, Vietnam, Cyprus, Uruguay, Chili, and Latvia. Additionally, Belgium and Luxembourg have jointly signed (as the BLEU) as-yet-unimplemented agreements with Cuba, Bulgaria, Liberia, Mauritania, and Thailand. Belgium and Luxembourg also have joint investment treaties with Poland and Russia, but these are not BLEU agreements. All these agreements provide for mutual protection of investments.
3.5.16
OPIC and Other Investment Insurance
Belgium, as a developed country, does not qualify for OPIC programs. Apparently no investment insurance programs for Belgium are operated by other countries.
3.5.17
Labor
The Belgian labor force is well trained, highly motivated and very productive. Workers have an excellent command of foreign languages, particularly in Flanders and the Brussels region. There is a low unemployment rate among skilled workers, such as local managers. Employers may hire Belgian or EU nationals. Non-EU nationals must first apply for work permits. Minimum wages vary according to the age and responsibility level of the employee and are cost-of-living adjusted. Belgian workers are highly unionized (63 percent of the work force), and usually enjoy good salaries and benefits. According to a recent study, Belgian wage and social contributions, together with those in Germany, are among the highest in Western Europe. High wage levels and pockets of high unemployment coexist because most of Belgium’s long-term unemployed are virtually unemployable without major retraining -- their overall educational level is significantly lower than that of the general population. As a consequence of the high wage costs, over the years, employers have tended to invest more in capital than in labor. At the same time, a shortage exists for workers with training in computer hardware and software, automation and marketing. The resulting bottlenecks cause wage pressures. Belgium’s comprehensive social security package is composed of five major elements: family allowance, unemployment insurance, retirement, medical benefits and a sick leave program which guarantees salary in event of illness. Currently, average employer payments to the social security system stand at 35 percent of salary, while employee contributions comprise 13 percent. In addition, many private companies offer supplemental programs for medical benefits and retirement.
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Belgian labor unions, while maintaining a national superstructure, are, in effect, divided along linguistic lines. The two main confederations, the Confederation of Christian Unions and the General Labor Federation of Belgium, maintain close relationships with the Christian Democratic and Socialist political parties, respectively. They exert a strong influence in the country -- politically and socially. A national bargaining process covers inter-professional agreements that the trade union confederations negotiate biennially with the government and the employers’ associations. In addition to these negotiations, bargaining on wages and working conditions takes place in the various industrial sectors and at the plant level. Foreign firms, which generally pay well, usually enjoy harmonious labor relations. Nonetheless, problems can occur, particularly in connection with the shutting down or restructuring of operations. Many strikes are one-day symbolic actions, but longer industrial actions have occurred. Firing a Belgian employee can be very expensive. An employee may be dismissed immediately for cause, such as embezzlement or other illegal activity; but when a reduction in force occurs, the procedure is far more complicated. For white-collar workers, the minimum standard is three months’ notice or severance pay, or a combination of the two, for each five-year period or fraction thereof the employee has worked for the company. In the case of bluecollar workers, the minimum is four weeks’ notice or the wage equivalent. Belgium is a strict adherent to ILO labor conventions. In those instances where the employer and employee cannot agree on the amount of severance pay or indemnity, the case is referred to the courts for a decision. To avoid these complications, some firms consider providing for a “trial period” (of up to one year) in any employer-employee contract. Belgium was one of the first countries in the EU to harmonize its legislation with the EU Works Council Directive of December 1994. Its flexible approach to the consultation and information requirements specified in the directive is more advantageous to foreign companies than that of other EU member states.
3.5.18
Foreign Trade Zones and Free Ports
There are no foreign trade zones or free ports as such in Belgium. However, the country utilizes the concept of customs warehouse. A customs warehouse is a warehouse approved by the customs authorities, where imported goods may be stored without payment of customs duties and VAT. Only non-EU goods can be placed under a customs warehouse regime. In principle, non-EU goods of any kind may be admitted regardless of their nature, quantity, and country of origin or destination. Individuals and companies wishing to operate a customs warehouse must be established in the EU and obtain authorization from the customs authorities. Authorization may be obtained by filing a written request and by demonstrating an economic need for the warehouse.
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3.6 TRADE AND PROJECT FINANCING 3.6.1
The Banking System
Belgium is one of the most heavily banked countries in the world. It is home to some 111 banks, as well as numerous Brussels-based financial service providers like Swift, Euronext, and Euroclear. A Belgian “universal service” law obligates every bank to provide a minimum service package to any customer. The National Bank, which on January 1, 1999 became a member of the European system of Central Banks based in Frankfurt, issues the Euro currency, acts as state banker, and intervenes as lender of last resort in credit operations. The most important tasks of the National Bank are managing interest rates on three-month treasury bills and maintaining the inter-bank electronic payment systems in order to ensure price stability and preserve the value of the Euro. The Banking, Finance and Insurance Commission (CBFA) is the single supervisory authority for the Belgian financial sector. It was created January 1, 2004 as a result of the integration of the Insurance Supervisory Authority (ISA) into the Banking and Finance Commission (BFC). The autonomous public institution is charged with numerous supervisory tasks: it must supervise financial markets, private financial institutions (e.g. deposit banks, savings banks, finance companies, holding companies, and mutual funds), insurance companies, pension funds, intermediaries, and companies providing mortgage loans. BEAMA and Febelfin are two other noteworthy financial sector organizations. The Belgian Asset Managers Association (BEAMA), founded on March 25 2004, is made up of two smaller trade associations: the Belgian Association of Investment Funds and Companies (BAIFC) and the Belgian Association of Asset Managers and Investment Advisers (BAAMIA). Febelfin, founded March 28, 2003, is a federation of six financial industry trade associations: the Belgian Bankers; Association (BBA), the Professional Union of Credit Providers (PUCP), the Belgian Association of Stock Exchange Members (BASEM), the Belgian Leasing Association (BLA), and the two members of BEAMA. Three Belgian banks (Fortis Bank, Dexia, and KBC) rank among the top hundred banks worldwide, with Fortis Bank and Dexia among the top fifty. Each has a well-developed correspondent bank network in the U.S., as well as a local representative office in at least one major U.S. city. Thanks to the small number of restrictions, the availability of easy to use communication systems, and the widespread use of English, banking relationships with the U.S. and other countries are smooth. Belgian banks are very active in the Eurocurrency sector, as are the approximately 75 foreign banks established in Belgium, which have made such operations their principal activity.
3.6.2
Factors Affecting the Banking Climate
In recent years, several trends have altered the banking climate considerably. First, since the 1990s, mergers and acquisitions have been a major feature of the Belgian banking sector. A clear result of this has been a decline in the number of Belgian banks and small bank offices. At the end of 1996, there were seven major Belgian banks (Générale de Banque, Kredietbank, Bank Brussels Lambert, Crédit Communal de Belgique, ASLK-CGER, Cera and Bacob). In the years since, all seven have all been involved in various link-ups with other Belgian banks or with other financial institutions in the Netherlands and France. As a result of changes in ownership, there are now only five major Belgian banks (Fortis Bank, KBC Bank, ING, Dexia and AXA) that control 75% of the Belgian market. At the same time that the number of Belgian banks has been decreasing, competitive pressures in Belgium are increasingly encouraging banks to seek growth outside the domestic market, most often in neighboring countries. The areas of operation favored for expansion are private banking and asset management. Dexia Bank and Fortis
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Bank have both built up their presence in Luxembourg, a center for “offshore” private banking, by acquiring shares of Banque Internationale à Luxembourg and Banque Generale du Luxembourg. Similarly, the former Artesia--now part of Dexia--has focused on developing private banking and asset management in France. For its part, ING (formerly Bank Brussels Lambert) has made use of its French subsidiary, BBL France, as a vehicle for growth abroad. Second, the traditional role of the Belgian banks has changed so that banks are now financial advisors to their customers, rather than simply financial intermediaries. Belgian banks today work with clients in areas as diverse as insurance, trading, stock options, investment funds, leasing, and the retail/property sector. The selling of bank insurance has long been important in Belgium, and it has allowed banks to diversify their incomes and increase customer loyalty. Institutions like Fortis Bank and KBC Bank are at the forefront of selling bank insurance today, and they have focused on selling life insurance products to their existing retail base. For the sake of comparison, it is interesting to note that U.S. banks in Belgium, with the exception of Citibank, still focus on corporate banking and treasury operations. (Citibank also operates retail-banking outlets and provides private investment services.) Third, a growing preference is being shown for electronic and on-line banking as opposed to traditional banking options. Belgium has seen an increase in the use of Mister Cash and Bankcontact bank machines, and the successful Proton electronic purse is becoming increasingly accepted. There are some 8,800 automatic bank machines in Belgium, 4,890 of which are cash dispensers. In general, the Belgian banking industry enjoys a strong international reputation, and it has developed an efficient and safe payment system that is often used as a model by other countries. Technology and know-how in the field of payment services can even be considered to be a Belgian export product in the case of services like Proton, IBAN, Isabel and Banksys. There is great interest abroad for new technologies such as the Proton electronic purse or the ISABEL (Interbank Standards Association Belgium) system, which has been evolving into a secure network that enhances electronic commerce and plays the role of certification authority.
3.6.3
The Euro
On January 1, 1999, the Euro was launched as the official currency in eleven European countries. Today there are twelve countries that use the Euro as their currency: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, and Greece. American businesses have benefited from the implementation of this new currency, which simplifies doing business in the countries of the Euro-zone. The fixed rate between the Euro and one “old” Belgian Franc is 40.3399. This fixed rate is always given in six digits and is the only official rate that exists for the former national currency. On financial markets, the Euro is quoted per unit against the currencies of countries that do not belong to the currency union such as the USD, the JPY, and the GBP.
3.6.4
Foreign Exchange Control Risks
There are no foreign exchange limitations on the transfer of capital or profits in Belgium, except in exceptional situations (e.g. as with UN sanctions against Iraq and Libya). However, on June 15, 2004, the Belgian Parliament approved a noteworthy measure known as the Tobin Tax. This new regulation will place a small tax on foreign exchange transactions. Belgium has no foreign exchange problems, and the balance of payments situation is very healthy. Because of this, Belgium has no problems maintaining its extensive import program.
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General Financing Availability
In Belgium, exports amount to roughly two thirds of GDP. As a result, the staffs of even in the smallest regional and local bank branches have a good understanding of the process of paying for imported goods. Generally speaking, buyers show a preference for payment by cash against documents (CAD), which is the simplest and least costly method. However, buyers understand U.S. and transcontinental buyer requirements for letters of credit (L/C), and letters of credit are typically the form of payment for U.S. companies just beginning to sell to Belgium. In cases where Belgian importers and their U.S. suppliers have built up mutual confidence, letters of credit are replaced first by time drafts, then eventually by CAD terms. In rare instances, open account terms--where the importer pays after receipt of the goods--are used. Venture capital firms active in the Belgian market are represented in the Belgian Venture Association (BVA). The BVA is made up of some 50 venture capital firms including well-known international firms such as KPMG Corporate Finance, Deloitte & Touche Corporate Finance, and Baker & McKenzie, as well as prominent domestic firms such as KBC Investco, Petercam Securities, and Puilaetco. Historically, investors active in Belgium are strictly Belgian players, yet foreign companies often make the largest transactions. There is a growing interest from large international venture capitalists in the opportunities offered by the Belgian market.
3.6.6
Financing Export Strategies
Belgian importers are relatively small, and because they have inadequate sources of inexpensive capital, they tend to press for the most lenient credit terms possible. Also, importers are accustomed to being offered flexible payment terms, particularly from neighboring trading partners like France, Germany, the Netherlands, the U.K., Switzerland, and (sometimes) Italy. Extended payment terms of 30, 60, 90 and even 120 days are not unusual, though the most common payment terms are net 30 days. However, Belgian businesses, like many in Europe, routinely delay payment even beyond the agreed upon terms. In Belgium, some 43 percent of all payments are not made on time, although 80 percent of delayed payments are made within 30 days of the original deadline. In short, 91 percent of all payments by Belgian businesses are made net 60 days. This is a better record than in Italy or the U.K., and equivalent to that of France and the Netherlands. Since the use of credit is widespread, offering flexible credit terms can be important to winning sales contracts in Belgium. U.S. firms should consider offering flexible terms, provided that they are able and willing to provide such financing and have done a full credit check on the Belgian company. Even then, however, it is advisable to first try several shipments on a secured credit basis before moving to more lenient terms. There are several local credit agencies available, including Dun, Bradstreet and Graydon. Import duties and value added tax (VAT) are applied to the CIF (Cost Insurance Freight) value of goods. The rate of import duties is the same as that applied by all EU countries. Since products coming from other EU members enter Belgium duty free, U.S. products often start off with an average 5-6 percent price disadvantage. By offering favorable credit terms, U.S. suppliers can help their importers offset a portion of that higher price.
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Types of Available Export Financing
The Belgian financial marketplace is private-sector oriented. There is one government-sponsored institution for financing imports: Office National du Ducroire/Delcredere Montoyerstraat 3 B-1000 Brussels Tel: +32/ 2/ 788-88-00 Fax: +32/ 2/ 788-88-10 E-mail:
[email protected] Contact: Mr. Yves Windelinckx, Director
3.6.8
Financing Projects
There are no special programs for financing major projects in Belgium. Major projects are financed by commercial and investment banks.
3.6.9
Banks with Correspondent U.S. Banking Arrangements
Fortis Bank Montagne du Parc 3 1000 Brussels Tel: +32/2 565-11-11 Fax: +32/2 565-42-22 Web site: http://www.fortis.com and http://www.us.fortis.com E-mail:
[email protected] Contact: Mr Johan Van Gool - Sales Manager Global Trade Services Tel: +32/2 2 565-82-48 Fortis is an international financial services provider active in the fields of insurance, banking and investment. With a market capitalization of $28.7 billion and roughly 53,000 employees, Fortis ranks as one of Europe’s 20 largest financial institutions. In its home market, the Benelux countries, Fortis occupies a leading position and offers a broad range of financial services to individuals, companies and the public sector. Outside its home market, Fortis concentrates only on selected market segments. Fortis grew in 1990 as a collaborative venture between two companies - AMEV/VSB, the first bank/insurance company in the Netherlands, and AG Group, Belgium’s largest insurance company. It was the first cross-border merger in Europe’s financial sector. Since its creation, the group has grown through the addition of more companies, such as ASLK-CGER, MeesPierson, John Alden, Generale de Banque and American Bankers Insurance Group, CORE and Intertrust Group. Fortis is listed on the exchanges of Amsterdam, Brussels, London and Luxembourg and has a sponsored ADR program in the United States. The bank has offices in New York, Stanford, Dallas, and Boston.
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KBC Havenlaan, 2 1080 Brussels Tel: +32/2 429-71-11 Fax: +32/2 429-79-22 Web site: http://www.kbc.be Contact: Mr Jacques Gallet, Mgr Expats & companies Tel: 32/2 429-40-83 E-mail:
[email protected] The KBC Bank & Insurance Group was formed in June 1998 from the domestic merger of Kredietbank, a retail and corporate bank, CERA Bank, a co-operative bank, and ABB, a mutual insurance company. In legal terms, the KBC Bank & Insurance Group is made up of four companies: the KBC Bank and Insurance Holding Company, KBC Bank, KBC Insurance, and KBC Asset Management. In terms of operations, KBC focuses on five areas in which it focuses its activities: retail and private bank assurance, corporate services, asset management, market activities, and Central Europe. KBC Bank, wholly owned by the KBC Bank and Insurance Holding Company, is the banking arm of the KBC Group. It is the majority shareholder of all the KBC Group companies that are involved in banking and other financial activities such as CBC Banque, Centea, Antwerpse Diamantbank and KBC Lease in Belgium, and CSOB, K&H, and Krediet Bank abroad. Whereas the banking group in Brussels, Flanders and the German-speaking area is active under the name KBC, in Wallonia it uses the name of subsidiary, CBC. Antwerpse Diamantbank is the market leader in providing finance to the diamond sector. Centea caters to private persons, the self-employed, and the liberal professions, offering savings & investments products, loans & payment services, and insurance products. The KBC Group also has branches in New York, Atlanta and Los Angeles.
ING Belgium SA/NV Avenue Marnix, 24 1000 Brussels Tel: 32/2 547-21-11 Fax: 32/2 547-38-44 E-mail:
[email protected] Web site: http://www.ing.be Contact: Mr Luc Verbeken, Corporate Banking Expatriates Tel: 32/2/547 24 73, 32/2 464 6664 (Expats direct line) On April 22, 2003, after nearly 30 years under the BBL banner, ING became the new brand name for Bank Brussels Lambert. In early 1998, the ING Group took over BBL, and the resulting combination is a market leader in the Benelux. The ING Group legal structure consists of a holding company, ING Groep NV, which owns and controls two intermediate holding companies: ING Bank NV, which deals with all of the group’s banking and financial service companies, and ING Verzekeringen NV, which controls the group’s insurance operations. ING’s core business areas are retail banking and insurance, corporate and institutional banking, financial markets and investment banking, and asset management and private banking. Through specialized companies, ING also provide services in the areas of leasing, factoring, and travel. ING’s operations in the U.S. are based in Atlanta, but the bank has a network of approximately 10,000 associates in cities around the country such as Hartford, Minneapolis, Denver, Des Moines and Phoenix.
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Dexia Boulevard Pacheco, 44 B-1000 Brussels Tel. +32/2 222-11-11 Fax. +32/2 222-11-22 Web site: http://www.dexia.be, http://www.dexia.com Contact: Mr Marc Dalkin - Adjunct director corporate banking Tel: +32/2 204 48 36 E-mail:
[email protected] Dexia is the result of Europe’s first cross-border merger of two banks, the 1996 joint venture between the Credit Communal of Belgium and the Crédit Local of France (called Dexia). The bank falls under the management of a French-Belgian executive committee. Dexia is the recognized leader in project/public finance and in providing financial services for municipal and government bodies. Through its subsidiaries and affiliates, it is active in almost all EU countries, as well as in the United States. With its 2002 acquisition of Financial Security Assurance (FSA) in the United States, Dexia became a world leader in the municipal bond insurance market. In terms of retail financial services, Dexia became one of the three largest banks in Belgium through its acquisition of Artesia Banking Corporation and of BACOB in 2001. Artesia had positioned itself as a bank for large and medium-sized companies, with a specific focus on family-owned businesses. BACOB traditionally targeted private individuals, the self-employed, and companies in the social sector such as schools, hospitals, institutes for the disabled, and socio-cultural organizations. The network that exists today provides individual customers and small businesses with retail banking services. Due to its preeminent role in Luxembourg’s financial market (through the Dexia Banque Internationale à Luxembourg) Dexia is one of the major players in Europe in providing financial services for high net worth individuals, private banking, asset management, and investment fund administration for third parties. The bank is present in the U.S. through the Dexia Crédit Local New York Agency, the Financial Security Assurance and Dexia Global Structured Finance, all of which are located in New York and Washington.
AXA Bank Belgium NV Grotesteenweg 214 2600 Antwerpen (Berchem) Tel: 32/3 286 22 11 Web site: http://www.axa.be E-mail:
[email protected] Contact name: Mrs Elly Bens – Manager, Press Relations Tel : +32/2 678 64 67 AXA Bank was formed from the merger of the insurance company Royal Belge and of the French subsidiary of AXA Belgium in 1999, and the subsequent merger of the savings company Ippa and the mortgage insurance company Anhyp in 2000. AXA also includes Les Assurance de La Poste, an insurance company set up as a joint venture with the Belgian Post Office on a 50-50 basis. The main headquarters of the group are located in France. The bankpool is called AXA Bank Belgium or AXA Bank. The company focuses on asset management, retail bank/insurance and corporate solutions.
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3.7 TRAVEL RISKS 3.7.1
Local Business Practices
Business Hours Government offices are open Monday through Friday from 8:30 a.m. - 12 p.m. and from 2 p.m. - 4:30 p.m. Banks are open Monday through Friday from 9 a.m. - 4 p.m. Private companies are generally open from 8:30 a.m. - 4 p.m. Most shops and stores open at 9 a.m. and close at 6 p.m.
Languages Belgium has three national languages: Dutch (also referred to as Flemish), French, and German. English is spoken and understood throughout most of Belgium. In Flanders, the northern region of Belgium, Dutch is the predominant language while in Wallonia, the southern region, most people speak French. Residents in a small section of Belgium near Germany speak German as their primary language. Brussels, the center region, is officially bilingual, speaking both Dutch and French. As in any other country, language is a crucial part of doing business in Belgium. Many documents must be filed in at least one of the three national languages. It would benefit companies to have personnel who speak one of the languages, or to seek the help of a professional translator.
3.7.2
Visas and Work Permits
U.S. citizens do not need a visa when they travel to Belgium for business or for personal travel for less than 90 days. The American visitor will need to present a valid American passport (valid for at least 6 months), proof of sufficient funds and a return airline ticket. U.S. citizens wishing to reside in Belgium for employment purposes must obtain a residency visa that can only be issued upon the presentation of a work permit and supporting documents. The work permit is applied for and must be obtained by the employer in Belgium at the appropriate regional government office before the prospective employee enters Belgium. Those who wish to be self-employed in Belgium must apply for a professional card. For more information please visit the Web site of the Belgian Embassy in the United States at www.diplobel.us. Specialized lawyers in Belgium can assist in the process.
3.7.3
Travel Issues
Belgium remains a relatively safe country and the level of anti-American sentiment is low. By taking reasonable precautions, visitors should enjoy a peaceful stay. However, street thefts, purse snatching and pick pocketing do occur. The emergency numbers are as follows: 101 100 112
Police Ambulance/Fire Gen eral Emergency Number (Equivalent to 911 in the U.S.)
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For more information, contact the U.S. Embassy Regional Security Office at 32/2/508-2370 or visit the U.S. Embassy in Belgium’s Web site at www.usembassy.be. Updated information regarding the security situation can be found on the State Department’s Consular Information site at www.travel.state.gov.
Currency and Credit Cards Beginning January 2002, the Euro replaced the local currency (Belgian franc). Credit and charge cards (American Express, Diners, Eurocard/MasterCard, Visa etc.) are widely accepted.
Voltage 220/380 volts AC 50 three-phase current.
3.7.4
Infrastructure for Conducting Business
Transportation and communication links are excellent. International and local travel can be easily accomplished via a vast network of airports and train stations. Belgium provides a wide variety of media, offering the broadest selection of television channels in Europe. TV viewers currently have access to programs broadcast from seven different countries in Dutch, English, French, German, Spanish, and Italian. CNN and CNBC are also available on cable. For further information, contact the Belgian Tourist Office, rue Marché aux Herbes 63, B-1000 Brussels. Tel: 32/2 504-03.90, www.belgium-tourism.net or consult www.VisitBelgium.com.
3.7.5
Country Data Population Population Growth Rate Religions: Roman Catholic Other Christian Secular Other Atheist Undeclared/No Answer Languages (by region): Flanders Wallonia Brussels Languages (by % of population): Dutch speaking French speaking German speaking Work Week Government System
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10.4 million 0.15% 47.5% 16.5% 8.5% 3.1% 8.8% 15.6% Dutch French Bilingual 58% 41% 1% Monday - Friday, 37.5 hours Constitutional monarchy with Parliament
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3.8 KEY CONTACTS 3.8.1
U.S. Government Contacts
Foreign Commercial Service Belgium Ms. Camille Sailer, Commercial Counselor Mr. Chris Quinlivan, Commercial Attaché EMB/FCS PSC 82 Box 111 APO AE 09710 Tel: 32/2 508-2425 Fax: 32/2 512-3644 Web site: www.buyusa.gov/belgium U.S. Embassy Public Affairs Office Mr. Chris Rochester, Public Affairs Counselor EMB/PAO PSC 82 Box 002 APO AE 09710 Tel: 32/2 508-2410 Fax: 32/2 513-4278 Web site: www.usembassy.be U.S. Embassy Economic Section Ms. Terri Robl, Economic Counselor EMB/ECON PSC 82 Box 002 APO AE 09710 Tel: 32/2 508-2448 Fax: 32/2 513-5333 Web site: www.usembassy.be U.S. Foreign Agricultural Service Mr. Roger Wentzel, Agricultural Counselor Located at the U.S. Embassy in The Netherlands EMB/FAS PSC 71 Box 38 APO AE 09715 Tel: 31/70 310-9299 Fax: 31/70 365-7681 Web site: www.usemb.nl/fasmain.htm (Note: The Agricultural Counselor in The Hague has regional responsibility for Belgium and Luxembourg.) U.S. Department of Commerce Ms. Jen Levine, International Trade Specialist 1401 Constitution Avenue NW Washington D.C. 20230 Tel: 202/ 482-0431 Fax: 202/ 482-2897 Web site: www.ita.doc.gov
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Visit USA Marketing and Promotion Bureau Mr. Bernard Guisset, President P.O. Box 1, Berchem 3 2600 Berchem Fax: 32/2 230-0914 Web site: http://www.visitusa.org/
3.8.2
Chambers of Commerce
American Chamber of Commerce Belgium Ms. Jo Ann Broger, Executive Director Avenue des Arts 50, Box 5 B-1000 Brussels Tel: 32/2 513-6770 Fax: 32/2 513-3590 Web site: www.amcham.be American Chamber of Commerce EU Ms. Susan Danger, Managing Director Avenue des Arts 50, Box 5 1000 Brussels Tel: 32/2 513-6892 Fax: 32/2 513-7928 Web site: www.amchameu.be Belgian Chambers of Commerce and Industry Web site lists local and regional chambers: www.fccib.be Brussels Chamber of Commerce Mr. Olivier Willocx, General Director Avenue Louise 500 1050 Brussels Tel: 32/2 648-50-02 Fax: 32/2 640-93-28 Web site: www.ccib.be
3.8.3
Belgian Trade and Industry Associations
AGORIA (The Multisector Federation for the Technology Industry) Mr. Paul Soete, Chief Executive Officer Diamant Building A. Reyerslaan 80 1030 Brussels Tel: 32/2 706-78-00 Fax: 32/2 706-78-01 Web site: www.agoria.be This is the largest of the specialized federations and is made up of firms engaged in all phases of the following sectors: metal working, plastic conversion, measuring, analysis and regulating instrumentation, electronics and electrical, aeronautical, telecommunications and data processing.
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Federation of Enterprises in Belgium (FEB) Mr. Luc Vansteenkiste, President Mr. Rudi Tomaes, Managing Director Rue Ravenstein 4 1000 Brussels Tel: 32/2 515-08-11 Fax: 32/2 515-09-15 Web site: www.vbo-feb.be The Belgian business federation is a nationwide organization of employers. It is composed not of individual companies, but of industrial and trade federations. This is Belgium’s biggest association and represents all employer groups in negotiations with labor unions and the government. Belgian Bioindustries Association (BBA) Avenue Louise 486-490 1050 Brussels Tel: 32/2 646 0564 Fax: 32/2 640 3759 Web site: www.bba-bio.be/common/default.asp Federation of Automotive Industry (FEBIAC) Web site: www.febiac.be Federation of Belgian Chemical Industries (FEDICHEM) Mr. Jean-Marie Biot, Managing Director Square Marie Louise, 49 1000 Brussels Tel: 32/2 238 97 74 Fax: 32/2 231-13-01 Web site: www.fedichem.be This federation’s members include firms in related industries, i.e., petrochemicals, drugs, fertilizers, rubber, toiletries, plastics, etc. Federation Petroliere Belge Mr. Gilbert Asselman, Chairman Mr. Gaëtan van de Werve, Secretary General Avenue des Arts 39 1040 Brussels Tel: 32/2 508-30-00 Fax: 32/2 511-05-91 Web site: www.petrolfed.be This federation groups all bulk oil importers, distributors and manufacturers of petroleum products and derivatives. Federation of Textile Industry (FEBELTEX) Mr. Fa Quix, Director Rue Montoyer 24 1000 Brussels Tel: 32/2 287-08-11 Fax: 32/2 287-08-52 Web site: www.febeltex.be This federation includes the full range of the Belgian textile industry including synthetics, carpets, cotton and wool. Vlaams Economisch Verbond (VEV-Flemish Economic Union) Mr. Ludo Verhoeven, Chairman www.icongrouponline.com
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Mr. Philippe Muyters, General Director Brouwersvliet 5, Box 4 2000 Antwerp Tel: 32/3 202-44-00 Fax: 32/3 233-76-60 Web site: www.vev.be V.E.V. is the representative employers federation covering the Flemish part of Belgium. It is independent of the F.E.B., but cooperates with it since their activities are parallel. It acts as spokesman for its members’ interests with the Flemish regional authority and tries to stimulate the Flemish economy through a wide range of different initiatives. Union Wallonne des Entreprises (Wallonian Enterprise Association) Mr. Henri Mestdagh, President Chemin du Stocquoy 1-3 1300 Wavre Tel: 32/1 047-19-40 Fax: 32/1 045-33-43 Web site: http://www.uwe.be This is the Walloonian equivalent of the VEV.
3.8.4
Belgian Consulates and Embassies in the U.S.
Belgian Embassy 3330 Garfield Street, NW Washington D.C. 20008 Tel: 202/333-6900 Fax: 202/333-5457 Web site: www.diplobel.us Mr. Patrick Everarts de Velp, Commercial Attaché Walloon Region 3330 Garfield Street, NW Washington D.C. 20008 Tel: 202/333-6900 Fax: 202/333-5457 E-mail:
[email protected] Web site: www.awex.be Mr. Robert Giraud, Trade Commissioner for Flanders Flanders Investment and Trade (FIT) 150 N. Wacker Dr., Ste 2100 Chicago, IL 60606 Tel: 312/251-0622 Fax: 312/251-0624 E-mail:
[email protected] Mr. Jos de Clerq, Trade Commissioner for Flanders 6100 Wilshire Blvd., Ste 1200 Los Angeles, CA 90048 Tel: 323/857-0842 Fax: 323/938-4024 E-mail:
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Consulate General of Belgium - Atlanta Peachtree Center, North Tower, Suite 850 230 Peachstreet St., NW Atlanta, GA 30303 Tel: 404/659-2150 Fax: 404/659-8474 E-mail:
[email protected] Web site: www.diplobel.us Consulate General of Belgium - Chicago 333 North Michigan Avenue, Suite 2000 Chicago, IL 60601 Tel: 312/263-6624 Fax: 312/263-4805 E-mail:
[email protected] Consulate General of Belgium - Los Angeles 6100 Wilshire Blvd., Suite 1200 Los Angeles, CA 90048 Tel: 323/857-1244 Fax: 323/936-2564 E-mail:
[email protected] Consulate General of Belgium - New York City ITT Building 1330 Avenue of the Americas, 26th Floor New York, NY 10019-5422 Tel: 212/586-5110 Fax: 212/582-9657 E-mail:
[email protected]
3.8.5
Belgian Regional Governments
Ministry of the Walloon Region Place de la Wallonie 1 5100 Jambes, Belgium Tel: 32/8 133-31-60 Fax: 32/8 133-31-66 Web site: www.mrw.wallonie.be/mrw Ministry of the Brussels Region-Brussels Capitol Rue de la Loi 2 1000 Brussels Tel: 32/2 204-21-11 Fax: 32/2 518-17-39 Web site: www.brussels.irisnet.be
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Ministry of the Flemish Region Boudewijngebouw Boudewijnlaan 30 1000 Brussels Tel: 32/2 553-57-16 Fax: 32/2 553-59-59 Web site: www.vlaanderen.be
3.8.6
Belgian Export Promotion
The Belgian Foreign Trade Board (www.obcebdbh.be) the former federal export promotion agency has now been replaced by the following three regional organizations: Walloon Export Agency (AWEX) Mr. Phillippe Suinen, Director-General Place Sainctelette 2 B-1080 Brussels Tel: 32/2 421-82-11 Fax: 32/2 421-87-87 E-mail:
[email protected] Web site: www.wallonie-export.be Brussels Export Mr. Willy De Cook Avenue Louise 500 - bte 4 B-1050 Brussels Tel: 32/2 645-25-50 Fax: 32/2 645-25-70 E-mail:
[email protected] Web site: www.brussels-export.irisnet.be Export Vlaanderen (Flemish Foreign Trade Office) Mr. Koan Allaert, Director-General Regentlaan 40 B-1000 Brussels Tel: 32/2 504-87-11 Fax: 32/2 504-88-99 E-mail:
[email protected] Web site: www.export.vlaanderen.be
3.8.7
Belgian Foreign Investment Offices
Ministry of Economic Affairs G. Lemanstraat 60 1040 Brussels, Belgium Tel: 32/2 206-58-63 Fax: 32/2 514-03-89 Web site: www.mineco.fgov.be/investors
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Office for Foreign Investors in Wallonia Avenue Materne 115 5100 Namur Tel: 32/8 133-28-56 Fax: 32/8 133-28-69 Web site: http://www.ofisa.be Flanders Foreign Investment Office (FFIO) Regentlaan 40 1000 Brussels Tel: 32/2 227-53-11 Fax: 32/2 227-53-10 E-mail:
[email protected] Web site: www.ffio.be Brussels Enterprise Agency (BEA) Rue Gabrielle Petit 4B12 1080 Brussels Tel: 32/2 422-0020 Fax: 32/2 422-0043 E-mail:
[email protected] Web site: www.bea.irisnet.be
3.8.8
American State Offices in Belgium
Council of American States in Europe Mr. Bruce Greenwood – CASE Chairman/State of Massachusetts Am Karlsbad 11 D-10785 Berlin, Germany Tel.: 49 (30) 39 90 25 47 Fax: 49 (30) 39 90 25 48 E-mail:
[email protected] Web site: www.case-europe.com
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4 4.1
DISCLAIMERS, WARRANTEES, AGREEMENT PROVISIONS
AND
USER
DISCLAIMERS & SAFE HARBOR
Summary Disclaimer. This publication ("Report") does not constitute legal, valuation, tax, or financial consulting advice. Nor is it a statement on the performance, management capability or future potential (good or bad) of the company(ies), industry(ies), product(s), region(s), city(ies) or country(ies) discussed. It is offered as an information service to clients, associates, and academicians. Those interested in specific guidance for legal, strategic, and/or financial or accounting matters should seek competent professional assistance from their own advisors. Information was furnished to Icon Group International, Inc. ("Icon Group"), and its subsidiaries, by its internal researchers and/or extracted from public filings, or sources available within the public domain, including other information providers (e.g. EDGAR filings, national organizations and international organizations). Icon Group does not promise or warrant that we will obtain information from any particular independent source. Published regularly by Icon Group, this and similar reports provide analysis on cities, countries, industries, and/or foreign and domestic companies which may or may not be publicly traded. Icon Group reports are used by various companies and persons including consulting firms, investment officers, pension fund managers, registered representatives, and other financial service professionals. Any commentary, observations or discussion by Icon Group about a country, city, region, industry or company does not constitute a recommendation to buy or sell company shares or make investment decisions. Further, the financial condition or outlook for each industry, city, country, or company may change after the date of the publication, and Icon Group does not warrant, promise or represent that it will provide report users with notice of that change, nor will Icon Group promise updates on the information presented. Safe Harbor for Forward-Looking Statements. Icon Group reports, including the present report, make numerous forward-looking statements which should be treated as such. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995, and similar local laws. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's, city's, country's or industry's actual results or outlook in future periods to differ materially from those forecasted. These risks and uncertainties include, among other things, product price volatility, exchange rate volatility, regulation volatility, product demand volatility, data inaccuracies, computer- or software-generated calculation inaccuracies, market competition, changes in management style, changes in corporate strategy, and risks inherent in international and corporate operations. Forward-looking statements can be identified in statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate,'' "estimate," "expect,'' "project,'' "intend,'' "plan,'' "feel", "think", "hear," "guess," "forecast," "believe," and other words and terms of similar meaning in connection with any discussion of future operating, economic or financial performance. This equally applies to all statements relating to an industry, city, country, region, economic variable, or company financial situation. Icon Group recommends that the reader follow the advice of Nancy M. Smith, Director of SEC's Office of Investor Education and Assistance, who has been quoted to say, "Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known … Assume that the information about these companies is not trustworthy unless you can prove otherwise through your own independent research." Similar recommendations apply to decisions relating to industry studies, product category studies, corporate strategies discussions and country evaluations. In the case of Icon Group reports, many factors can affect the actual outcome of the period discussed, including exchange rate volatility, changes in accounting standards, the lack of oversight or comparability in accounting standards, changes in economic conditions, changes in competition, changes in the global economy, changes in source data quality, changes in reported data quality, changes in methodology and similar factors. Information Accuracy. Although the statements in this report are derived from or based upon various information sources and/or econometric models that Icon Group believes to be reliable, we do not guarantee their accuracy, reliability, quality, and any such information, or resulting analyses, may be incomplete, rounded, inaccurate or condensed. All estimates included in this report are subject to change without notice. This report is for informational purposes only and is not intended as a recommendation to invest in a city, country, industry or product area, or an offer or solicitation with respect to the purchase or sale of a security, stock, or financial instrument. This report does not take into account the investment
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objectives, financial situation or particular needs of any particular person or legal entity. With respect to any specific company, city, country, region, or industry that might be discussed in this report, investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the information in this report. Investing in either U.S. or non-U.S. securities or markets entails inherent risks. In addition, exchange rate movements may have an effect on the reliability of the estimates provided in this report. Icon Group is not a registered Investment Adviser or a Broker/Dealer.
4.2
ICON GROUP INTERNATIONAL, INC. USER AGREEMENT PROVISIONS
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