Romania: an overview
The RBS group has been present in Romania since 1995.
Our Global Transaction Services (GTS) business offers
clients cash and liquidity management, trade and supply
chain finance, and commercial cards. Our services are
delivered through a dedicated team of local banking
professionals, who are supported by regional teams and
experts from across our global network.
So, however large or small your operations in Romania, we
can offer the services and support to help you succeed.
Geography
Capital
Bucharest.
Major ports
Constanţa.
Language
Romanian.
Economic overview
Following the collapse of communism, the Romanian
economy suffered a period of instability and decline as it
sought to overcome an obsolete industrial base and poor
infrastructure. The economy appeared to turn a corner
in 2000 however, and buoyed by increasing trade with
Europe, rising domestic consumption and investment, the
following few years saw the Romanians enjoy one of the
highest growth rates in Europe, together with low inflation
and unemployment 1.
The country’s fragile prosperity was hit hard by the
world economic downturn and the economy plunged into
recession in 2008 and 2009 1. An IMF and EU assistance
package brought with it a number of austerity measures
and further GDP contraction in 2010 1. The IMF currently
forecasts that Romania will return to growth (+1.5%) in
2011 and 4.4% in 2012 2.
Economic indicators
ROMANIA
Bucharest
2009
Constanţa
Romania is in South East Europe bordering Bulgaria,
Serbia, Hungary, Ukraine, Moldova and the Black Sea.
Around 57% of the population lives in cities and urban
areas 1. Its largest cities are Bucharest (capital), Laşi,
Timişoara, Cluj-Napoca and Constanţa. Romania is
organised into 41 counties (known as judete) and one
municipality (Bucharest). Romania joined the EU in 2007.
1
2
CIA World Factbook
IMF World Economic Outlook 2011
2010
21,904,551
% change
Population
21,959,890
-0.252
GDP
US$257.4 billion US$254.2 billion -1.24
GDP per capita US$11,700
US$11,600
-0.85
Exports
US$41 billion
US$52 billion
26.83
Imports
US$50 billion
US$60 billion
20
Unemployment 7.8%
8.2%
5.13
Inflation
5.6%
6%
7
Public debt
24% of GDP
34.8% of GDP
45
Source: CIA World Factbook
Business opportunities
Imports
Imports by industry (% total imports)
Imports by country (% share)
Germany
Electrical
Equipment
15
Italy
17
Machinery
Hungary
France
46
12
China
12
42
Vehicles
Austria
9
9
Other
6
6
5
5
Fuel
5
Pharmaceuticals
Plastics
6
5
Iron & Steel
Other
Source: International Trade Centre, Trade Performance HS, 2009
Source: CIA World Factbook, 2009
Exports
Exports by country (% share)
Exports by industry (% total exports)
Germany
Italy
19
Electrical
Equipment
17
Vehicles
France
Turkey
49
15
42
12
Hungary
9
8
5
Fuel
Clothing
Other
4
Machinery
4
5
5
6
Iron & Steel
Furniture
Other
Source: CIA World Factbook, 2009
Source: International Trade Centre, Trade Performance HS, 2009
Romania is a major beneficiary of EU structural funding,
much of which is invested in physical infrastructure such
as roads, airports, energy and water/waste management.
As an EU member, Romania offers international investors
a relatively low-cost manufacturing foothold in a market
of nearly 500 million. It is also strategically well placed for
access to markets in Turkey, the Balkans and Ukraine.
plans to replace over half its power generation installations
by 2035, creating opportunities for electrical power systems
providers and in construction services for nuclear, hydro
and wind power generation capacity. The market for
medical equipment is also expected to open up over the
next few years as hospitals are given greater autonomy
in purchasing. Prospects for other sectors such as ICT,
food products and packaging are all expected to grow
significantly as the economy continues to improve.
Productivity in agriculture is low and funding from the EU
and Romania’s Ministry of Agriculture is currently seeking
to increase investment in agricultural machinery and
equipment by providing much needed finance. Romania
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Financial information
Currency and exchange rate
Recent average 49,018 lei = £1 sterling
Exchange controls
A minority of countries impose restrictions on the exchange
of their currency. The Romanian government does not
impose restrictions on exchange transactions.
Repatriation of capital
British Chamber of Commerce in Romania
Bd. Octavian Goga nr. 2
Sector 3, Bucharest 030982
Romania
Tel 00 40 21 319 0088
www.britishchambers.org.uk/zones/export/internationalchambers_1/romania.html
The Chamber promotes and facilitates business relations
between Romania and the United Kingdom.
There are no restrictions on returning capital invested in
Romania back to its country of origin.
Statutory requirements
Tax
UK regulations
The standard VAT rate in Romania is 24%. A reduced
rate of 9% applies to hotel services, books, newspapers
and medicines. A 5% rate applies to building supplies.
Insurance companies, banks and financial services are VAT
exempt.
The Department for Business, Innovation and Skills controls
the export of goods according to the nature of the goods
and their intended use, and also their intended destination.
For current export controls refer to: www.bis.gov.uk
Contacts
UK contacts
UK Trade and Investment
1 Victoria Street
London SW1H 0ET
Tel: 020 7215 2471
www.ukti.gov.uk
UK government support agency dedicated to assisting UK
businesses to export. Provides sector and country specific
information and advice, trade fair and outward mission
participation and bespoke market intelligence services.
Embassy of Romania
Arundel House, 4 Palace Green
London W8 4QD
Tel: 020 7937 9666
www.londra.mae.ro
Import restrictions and licences
Most goods can be freely imported but import licences may
be required from non-EU countries, for example, agricultural
products, textiles and clothes, iron and steel and gifts and
toys.
Samples
Importers generally seek to avoid paying duty on goods
entering the country solely for marketing purposes. Goods
in free circulation within the EU are free from duties.
Marking of goods
The Romanian language must be used for all labelling.
The country of origin, the names of the manufacturer and
importer, the expiry date, and a description of the goods
must be included.
Shipping marks
The marks and numbers on shipment packaging must be
identical to the shipping documents. There are no specific
additional regulations in Romania.
Provides information on exporting opportunities and
promotes business relations with companies in Romania.
Packing materials
Local contacts
Duties
British Embassy
24 Strada Jules Michelet
010463 Bucharest, Romania
EU goods and goods in free circulation in the EU are duty
free. Romanian tariffs are based on the harmonised system.
The Market Access Database (http://madb.europa.eu/
mkaccdb2/indexPubli.htm) provides comprehensive tariff
details.
Tel: 00 40 21 201 7200
www.ukinromania.fco.gov.uk/en
Provides basic travel and investment information including
access to detailed advice on trading in Romania.
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Packing materials should be recoverable or reusable.
Insurance
No specific requirements.
rbs.co.uk/international
Documentation
Special certificates
Countries often require importers to obtain prior
authorisation to bring certain products into the country.
The Romanian Government requirements include:
A sanitary certificate or veterinary certificate for animals,
animal products and plants.
Certificate of age for alcohol.
Certificate of analysis for some chemicals.
Certificate of fumigation for some clothing.
Certificates of origin
A certificate of origin is a document stating in which country
goods originated. A certificate of origin is not normally
required in Romania.
Commercial invoices
The customer’s VAT registration must be shown on the
invoice, as per the current EU procedures. For goods
moving within the EU, no requirement for invoices
accompanying the goods exists.
Consular fees
Some countries will charge a legalisation fee for documents
such as a certificate of origin. If requested to have
documents legalised, Romanian officials will generally do
so for a nominal fee.
Consular invoices
A consular invoice is a document certifying a shipment
of goods and shows information such as the consignor,
consignee and value of the shipment. A consular invoice is
not required in Romania.
Bills of lading
A bill of lading is a document issued by a carrier to a
shipper acknowledging receipt of goods to a named place
of delivery. As some countries specify the type of bill of
lading that will be acceptable it is important to check with
the relevant customs authority. In Romania a bill of lading
may be ‘To order’.
For goods delivered by road, an international consignment
note (CMR) would normally be used in place of a bill of
lading.
To find out more about how RBS can support your
business needs in Romania, please contact your
relationship manager or call 0800 210 0235.
This marketing communication is for information purposes only and does not constitute a binding obligation on The Royal Bank of Scotland plc or The Royal Bank of Scotland N.V.
The Royal Bank of Scotland plc. Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB.
The Royal Bank of Scotland plc is authorised and regulated in the United Kingdom by the Financial Services Authority. The Royal Bank of Scotland N.V. is authorised by De Nederlandsche Bank and regulated by the Autoriteit Financiele Markten (AFM) for the conduct of business in the Netherlands.
The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.V. and The Royal Bank of Scotland N.V. is in certain jurisdictions
an authorised agent of The Royal Bank of Scotland plc.
590-0811gUK
August 2011