(Last updated: 11 May 2011)

Business etiquette

Business tips

The Belgians are formal in their business dealings. They both extend and expect a high level of courtesy.

Titles (Dr, Professor, etc.) should be used both in correspondence and in face-to-face meetings.

Business contacts are not normally addressed on a first name basis (unless the contact is long standing and the relationship dictates).

Appointment times and schedules are respected.

A handshake, plus a greeting is customary when meeting contacts, or entering and leaving a meeting.

Do not schedule business meetings in July/August (summer vacation), December 20 to January 6, the weeks prior to and after Easter, or work days adjacent to public holidays. To ensure availability, always make advance appointments.

Office and corporate wear is formal. A suit and tie for men, and suits or conservative wear for women. Exclusive restaurants will stipulate a jacket and tie for men. Socially, the dress code is smart, casual if the occasion demands.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Belgium is part of the harmonised trade system of the European Union. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia. Most duties are ad valorem (%), based on the GATT Valuation Code (approximate CIF value).

Belgium is a member of the European Union (EU) and preference is given to associate members of the Union and to developing countries and European Free Trade Association (EFTA) members. The European Community has steadily replaced national rules and regulations with European-wide directives. These must be met in addition to all local and national regulations in Belgium.

Non-tariff barriers

Items subject to import licensing are notified in a detailed and continuously changing list. More information from the Ministry of Agriculture in Belgium is available.

Animal, plant and food products: Agricultural products are protected by quota, managed by a licensing system. Import of specified products without a quota license is prohibited.

Products include:

• cereals
• rice
• beef and veal
• sugar
• isoglucose
• oils and fats
• seeds
• milk and milk products
• wine
• processed fruit and vegetables
• sheep meat
• buffalo meat
• goat meat

Exemptions include:

• Goods valued under US$500 and under 20 kg if sent by air or post
• Goods valued under US$2,500 if sent by any other means

Other imports require only notification of intent to import.

Products including textiles, steel, footwear, ceramic products, toys, porcelain, and glass products originating in certain non-European Union (EU) countries are subject to quota restrictions.

Exchange control operates through authorised banks. Exchange is freely available and approval is required three months prior to customs clearance.

Certain products can only be sold if they conform to the appropriate EU directives and show a CE mark. CE marking protects consumers by ensuring that there is a common standard across Europe. The manufacturer is responsible for ensuring that the product meets the requirements of the relevant directive(s) and applies CE marking. Proof of Conformity should be made available in a form of technical documentation. The requirements impose procedures on the manufacturer and certain responsibilities are transferred to the importer.

Customs entry is to be made on the EU Single Administrative Document. In Belgium it can be processed in all Belgian Customs offices.

Product certification, labelling and packaging

Labelling and marking

Pre-packed goods and spirits (except perfumed or medicated cordials) must be packed in quantities specified by regulations. Quantities must be shown in metric measures, although imperial measures can also be displayed.

Certain items require specific markings and you should check with your importer for any such requirements. Goods that do not comply may be refused entry. Also prohibited are goods having forged trademarks or false or misleading trade descriptions, or any trademark or mark so nearly resembling a trademark as to be deceiving.

Goods may not be marked in any way which incorrectly implies Belgian origin:

• Eggs in shells must be marked with the country of origin.
• Butter, honey and similar products must be marked as being of foreign produce. Special labelling regulations apply to canned food.

Medicaments are subject to special packing and marking requirements. Draft labelling must be submitted to the Belgian authorities for approval and show clearly:

• The registration number
• A skull and crossbones if the product is hazardous
• A manufacturing number in Benelux coding
• The complete formula of the products
• Instructions for use in French, Dutch and, if possible, German

Cosmetics are subject to quantity marking requirements.

Special certificates

Meat, meat products and animal casings require certificate of ante- and post-mortem inspection, issued by the appropriate authority in the country of origin, and bearing a special label showing that inspection has been made.

Imports of prepared or preserved meat must be accompanied by a special health certificate written in the language of the country of origin, and the two official languages of Belgium: French and Dutch.

Oysters, mussels and other invertebrate sea animals likely to be eaten raw must comply with a detailed health certificate issued by the Health Authority of the country of origin, indicating:

• The name and registration number of the product
• The date and number of parcels of the shipment
• The name of the creature

Rooted plants and some tree seeds require phytosanitary certification issued by the approved authority in the country of origin; in Australia this is usually the Australian Quarantine and Inspection Service, the Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Pharmaceuticals require quantitative certificates of analysis.

Methods of quoting and payment

Quotations in Euros, CIF Antwerp (Incoterm 2000). Payment is usually cash against documents.

Documentary requirements

Commercial invoice

No prescribed form. A minimum of three copies is required.

Invoices must include:

• The date and place of shipment
• Shipper's name and address
• Consignee's name and address
• A precise description of the goods, marks, quantities, type and contents of packages
• The gross and net weights in metric units
• The FOB value (Incoterm 2000), freight, insurance and other charges

If the goods are of a different tariff and/or import classification, the value for each type must be shown. Where the cost of any of these items is not covered by the individual invoiced prices, a statement to this effect must appear on the invoice and must indicate whether payment is to be made and, if so, in what currency.

Invoices must bear the following declaration: 'It is hereby certified that this invoice shows the actual price of the goods described, that no other invoice has been or will be issued and that all particulars are true and correct.' Signatures and the status of authorised persons must also be included on invoices.

Invoices for textile piece goods must state clearly the percentage composition by weight of the yarn or yarns of which the different materials are made, details of the method of manufacture (woven, knitted, braided, etc.), the width of the material and its weight.

Products containing ethyl alcohol require an additional statement showing whether the alcohol has been denatured.

Bill of lading/airway bill

There are no special requirements for the Bill of Lading and 'To Order' bills are acceptable.

Packing list

A packing list is compulsory if the shipment contains more than one package and if the contents of each package are not shown in the commercial invoice. In all circumstances a packing list facilitates clearance. All discounts must be clearly shown. Digital signatures are now recognised as a legal instrument for most commercial transactions.

Certificate of origin

Required for leather goods, fresh fish, port and Madeira wines, caustic potash, potassium carbonate and nitrate fertilisers. Customs authorities may request certificates of origin for other types of goods.

Certificates issued by an approved authority are acceptable. In the case of fertilisers, the certificate must be legalised by a Belgian consul.

Public health requirements

Food items of animal origin must be presented at an inspection port of the Ministries of Agriculture and Public Health.

Fresh meat requires prior authorisation by the Chief Inspector of the Veterinary Services, Belgian Ministry of Agriculture. Poultry is subject to specific regulations. See also 'Special certificates'.

Additives to food are prohibited unless expressly authorised.

Medicaments are under strict government controls in respect of production, processing and wholesaling. Imported medicaments must be analysed and verified by an approved laboratory in accordance with laws governing local production. Medicaments are also subject to regulations controlling packing, marking and advertising.

A person of Belgian nationality must be responsible for the imported products.

The import of fabrics and clothing treated with tri-phosphate is prohibited.

A wide range of products (consumer goods, furniture, electrical goods, toys, etc.) are subject to Belgian safety standard regulations and more than 150 EC technical standard directives.

Insurance

Normal commercial practice.

Setting up in Belgium

Finding the right partner

Austrade staff is on hand to help find the right business partners. Alternatively, the Sentio website may be useful.

Taxation

Belgium has a double taxation agreement with Australia. The Australian Taxation Office can provide these details. Value Added Tax has rates ranging from 6 per cent, 12 per cent and 21 per cent of the duty paid in Belgium. Additional duties are imposed on agricultural and food products. It should be noted that upon entry into the Belgian market, certain agricultural products may be subject to certain levies.

The corporate income tax rate is 39 per cent (officially it’s 40.17 per cent but there are a number of authorised non-taxable items, which lower the rate).

Reduced tax rates apply to low taxable profits, that is, below €322 262. These reduced rates, however, are not available to holding companies or to companies of which more than 50 per cent of the capital is owned by one or more foreign or Belgian corporate entities.

Foreign source-earned income, taxed abroad, which is not exempted by treaty, is subject to one-fourth of normal corporate income tax rates.

Favourable tax breaks exist for coordination, distribution and service centres:

• Coordination centres, which centralise organisational or support activities within a group of companies, may benefit from special corporate income tax computations, capital registration tax exemptions, tax credits and personal tax concessions for expatriate personnel.
• Distribution centres, which centralise physical distribution activities, may benefit from a special corporate income tax calculated on a ‘cost-plus’ basis.
• Service centres, such as call centres, database management, etc. benefit from a special tax regime similar to distribution and coordination centres. They are taxed on a ‘cost-plus basis’, ‘resale-minus’ method or a combination of both. The resale minus applies when the centre is involved actively in sales operations.

All companies are granted a tax relief on profits of €10,907 for each additional person employed in scientific research in Belgium.

Deductions exist for amounts invested in research and development, energy saving investments (13.5 per cent for both) and investments by small and medium-sized concerns.

There are tax reductions for branches established in Belgium. Registration tax of 0.5 per cent on the paid-in capital is due for any subsidiary but not for a branch; the branch’s amount of working capital is not subject to this tax.

All profits earned by an Economic Interest Grouping (EIG) are only taxable in the hands of its members. Foreign companies, which are members of a Belgian resident EIG could be liable in Belgium to the non-resident corporate income tax.

Additional information is available from the Belgium Ministry of Finance.

Banking and finance

Internet and phone banking

Most major banks offer both telephone banking and Internet banking services.

Opening a bank account

To open a current or checking account (compte à vue/zichtrekening), you need either a passport or a Belgian ID Card as proof of identity.  Once the account is opened the bank will send you a Bancontact/Mister Cash debit card. A PIN number will be sent to you separately.

For more information, visit Expatica - a guide to banking in Belgium.