(Last updated: 2 Apr 2010)

Business opportunities

Despite the dark reports, there are still business opportunities available in Ireland.

With regard to consumer products, those posting losses appear to be sitting in the middle of the market, while those at the extreme high and low ends of the spectrum are not reporting similar losses. This is especially true of companies in the fashion industry (Brown Thomas department store vs. Penneys/Primark chain) and food and beverage sector (Dominos and Four Star Pizza have seen profits and have plans to expand).  It has also given rise to a ‘wiser’ consumer spend, with organic food sales increasing by 11 per cent in 2008.

In terms of manufacturing and services, the government is still encouraging FDI into the country, reiterating the message that Ireland has a relatively young, well-educated workforce, and a very attractive corporate tax rate. As an English-speaking nation, the country can also be seen as a trial-market for the UK, or as a gateway into Europe.  In the past, the major investment source has been the US, and in February 2009, Intel announced that it will be investing €50 million in R&D at its plant in Shannon.

The government is currently made up of a coalition that includes the Green Party, so the topics of green energy, clean technology, and environmental issues have been pushed to the forefront as priorities.  Ocean energy has not surpassed the research and development stages, but wind is a natural resource whose capabilities are being captured and accounts for 90 per cent of our renewable energy at present. Specialist opinion suggests that the biggest M+A activity of 2008 was in the energy sector.

Infrastructure was previously one of the strongest industries for potential opportunity. Although construction in general has fallen dramatically, works are still going forward. The government has made cutbacks in its planned building projects, for example, but it is still proceeding with €5,863 million of projects (as of March 10) to which it had already committed.

Potential also exists for companies who can offer cost-saving solutions or systems in either the private or public sectors.

Business etiquette

Business tips

The business culture in Ireland is similar to elsewhere in Europe, with a preference for open dialogue and less rigid formality.

As with most European companies, Irish companies will rarely agree to ‘cold’ meetings. Expect to introduce your company and proposition at least three to four weeks before the planned meeting date.

Make an introductory phone call and follow-up with information by post or email.

Most business people in traditional industries will wear suits and ties.

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

Ireland is part of the harmonised trade system of the European Union (EU) and gives preference to associate members of the Union, developing countries and European Free Trade Association members. Common Customs Tariff is applicable to other countries, including Australia. Most duties are ad valorem, based on the GATT Valuation Code (approximately CIF value) (Incoterms 2000).

Non-tariff barriers

Import licences are required for a limited number of items including agricultural products. These licences are valid for up to 12 months and are issued either by the Department of Enterprise, Trade and Employment for industrial products, or by the Department of Agriculture, Food and Rural Development for agricultural products. Phytosanitary certificates are also required for plants, some cut flowers, rooted plants and plant material, trees and shrubs.

More information is also available from the customs authority:

Office of the Revenue Commissioners
Dublin Castle, Dublin 2, Ireland
Tel: +353 1 679 2777
Fax: +353 1 679 4145

Animals, plants and their products are subject to detailed regulations, including EU directives and legislation. Details may be obtained from the Australian Quarantine and Inspection Service or the Department of Agriculture, Fisheries and Forestry-Australia.

No exchange controls are in effect in Ireland.

Imports of certain goods (including textiles, steel, footwear, ceramic products, toys and porcelain and glass products) originating in certain non-European Union (EU) countries are subject to either quantitative restrictions or surveillance measures.

Imports from non-EU countries of products covered by the Common Agricultural Policy may be subject to various charges.

Product certification, labelling and packaging

Labelling

All the directives of the European Council must be met as well as local and national regulations. An example is the labelling of products in the interest of consumers.

Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless their contents can be otherwise readily identified.

Hay, straw and peat moss litter used as packing materials require a licence issued by the Minister of Agriculture, Food and Forestry.

Raw tobacco may be imported by a licensed manufacturer of tobacco products with the prior permission of the Revenue Commissioners.

Prepacked goods must be in quantities specified by regulations.

Spirits (except perfumed or medicated cordials) must be packed in containers of not less than 40 litres or in bottles packed in cases.

Goods having forged trademarks or false or misleading trade descriptions, or any trademark or mark so nearly resembling a trademark as to be deceiving are prohibited.

The EU deadline for accepting metric only labels was extended to 1999. This deadline has been reviewed and a decision for a further extension to 2009 is expected.

Hallmarking of gold and silver articles is required before they can be offered for sale. The hallmarking is done by the Goldsmiths of Dublin, Assay House, Dublin Castle, Dublin 2. Industrial policy and internal market directives for all products can alter in the EU marketplace.

CE marking

The European Community is steadily replacing national rules and regulations with European wide directives. The CE mark can only be used on products which meet all the appropriate directives. If an exporter can show a product meets the appropriate European directive then the products can be sold freely throughout Europe. CE markings are applied by the manufacturer, who is responsible for ensuring that the product concerned meets the requirements of the relevant directive(s). Proof of conformity should be made mavailable in the form of technical documentation. The requirements impose procedures on the manufacturer and certain responsibilities are transferred to the importer.

Packaging

Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions during transit and delivery.

Special certificates

Animals and animal products require sanitary certificates issued by the appropriate authorities in the country of origin.

Plant and plant products require phytosanitary certificates. Details may be obtained from the Australian Quarantine and Inspection Service of the Department of Agriculture, Fisheries and Forestry - Australia.

Methods of quoting and payment

Quotations should be in Euros or US dollars, CIF Irish port. Usual practices apply in regard to payments.

Documentary requirements

Commercial invoice

A minimum of two copies are required. Invoices must contain all details normally supplied, including:

• a full description of the goods
• the country of origin
• their tariff heading and import list number
• where applicable, the value added tax and wholesale tax registration numbers

If goods are of a different tariff and/or HS import classification the value for each type must be shown.

Customs entry must be made on the EU Single Administrative Document.

Where the cost of any of 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. All discounts must be clearly shown.

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

Goods consigned CIF (Incoterms 2000) must be certified as follows and signed:

• 'We certify that this is the original invoice (or a true copy of the invoice furnished to the consignee) and the value shown herein includes all charges, including cost of carriage and freight to the port of entry, receptacles, packing and insurance. No other invoice has been or will be furnished for any portion of such cost.'

Digital signatures are now recognised as a legal instrument for most commercial transactions.

Bill of lading

No special requirements. To Order bills are acceptable.

Packing list

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.

Public health requirements

Licensed manufacturers of tobacco products with prior permission of the Revenue Commissioners may import raw tobacco into Ireland. Certain specified controlled drugs including narcotics and psychotropic substances are prohibited except under licence, as is wearing apparel made of ‘tris’. Specific requirements should be checked with the importer.

Certain items require specific markings and you should check with your importer for any such requirements as goods that do not comply may be refused entry. Agricultural products are protected by quota, managed by a licensing system. Import of specified products without a quota license is prohibited. These products include:

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

Insurance

Normal commercial practice.

Weights and measures

The metric system, except for pints in hotels and bars.

Taxation

Ireland offers a unique tax incentive with a 10 per cent corporate tax rate for manufacturing and qualifying services until 31 December 2002. A standard corporation tax rate of 12.5 per cent applys to all trading profits in all sectors, including manufacturing and international services. This is one of the most beneficial corporate tax environments in the world.

Irish Value Added Tax (VAT) rates remain among the highest in the European Community. VAT of 21 per cent is assessed on the duty-paid value, though many essential goods including food, medicines and children’s clothing and footwear are exempt. A reduced VAT rate of 12.5 per cent applies to a limited range of goods such as electricity, gas and fuel, newspapers and certain periodicals, works of art and photographic prints, concrete and concrete blocks. It also applies to restaurants and hotels. There is a VAT refund scheme for goods taken out of the Republic, but you must have the invoice stamped by customs at the exit point before returning it to the shop for refund.

Excise duties are levied on products such as gasoline and diesel fuels, spirits, beer, wine, cider, tobacco and motor vehicles. Vehicle registration tax (VRT) is levied on motor vehicles brought into the country. Cars can be ‘brought in’ tax-free for a year, ie. as a temporary import by a visitor. When importing samples and advertising materials be aware that:

• Samples of goods that are of negligible value are admitted free of import duties.
• Samples of goods that are mutilated may be admitted duty free provided their character as samples have not been destroyed.
• Valuable samples may be temporarily imported under deposit or bond for periods up to 12 months.
• Advertising matter is liable for duty – different rates apply to different types of publications.
• Printed advertising matter in parcels containing not more than one copy of each kind, and weighing not more than one kilogram per parcel, is admitted duty-free.
• Tobacco advertising is subject to restrictive regulations.