Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Germany:
- Businesses are usually open from 9.00am–5.00pm Monday to Friday, but 2.30pm is a common closing time on Friday afternoons.
- Some government offices may provide full service from 9.00am to midday.
- Shops are open from 9.00am–6.00pm, or some to 8.00pm. Shops close on Saturday at 2.00pm or 4.00pm and very few are open Sunday.
Business practices:
- German attitudes are broadly similar to Australians but with more emphasis on order and formality. A well-planned approach is highly recommended.
- Dress is conservative, so the rule is to wear suit and tie to meetings.
- Use surnames until you are invited to use first names.
- German people are conscious of hierarchy and it is expected that you will deal with appropriate levels of seniority.
- English is widely spoken in business circles, but it is an important courtesy to ask if a meeting can be conducted in English and to provide a translator if necessary.
- If invited to dinner even 'casual dress' means a jacket and tie.
- Take a short CV, a company profile and product literature with you to meetings.
- If you are running late for a meeting give as much notice as possible as punctuality is extremely important.
- Visits are generally difficult to arrange during the peak summer holiday months of July and August. Many companies also shut down over Christmas and New Year period between 24 December and 2 January.
- Your visit should be planned well in advance as senior executives expect at least six weeks notice of an unsolicited meeting. German business people will want a clear understanding of what is to be dealt with in any meeting.
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 regulations
Import restrictions
Certain items require specific import licences, include:
- A range of agricultural products
- Certain foodstuffs
- Textiles (excluding goods originating out of Australia
Quotas are imposed on goods and apparel from developing countries.
Imports are subject to quantitative restrictions, and the validity period is six months. Specific import regulations apply to products under monopoly control, eg. medicines.
Exchange control is the responsibility of the European Central Bank and is administered by authorised banks.
Tariff
Germany is a member of the European Union (EU). Preferences are given to EU associate members, developing countries and EFTA members (also to Eastern European countries: Poland, the Czech Republic, Hungary, Bulgaria and Romania).
Tariff is based on the Harmonised System. Most duties are ad valorem (%), based on the WTO Valuation Code (approximately CIF value (Incoterms 1990). A Common External Tariff (CET) is applicable to other countries (including Australia).
Some specific duties are levied, usually on net metric weight. Levies, established under the EC Common Agricultural Policy (CAP), are commonly applied to imports of agricultural products. The value of the levy may be expressed in either ad valorem, specific or composite terms.
Customs authority contact details:
Bundesministerium der Finanzen (BMF)
Abteilung III
Wilhelmstrasse 97
D-10117 Berlin
Tel: +49 30 22420
Fax: +49 30 2242 3260
Packing, marking and labelling
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.
Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified.
German packaging regulations require suppliers of goods to arrange for the retrieval and recycling of transport and sales packaging. An environmental mark, eg. the 'Green Spot' (der grune punkt) informs the consumer that the packaging can be recycled.
Exporters to the Federal Republic of Germany should contact Duales System Deutschland, Cologne regarding this measure:
Corporate Communications and Marketing
Duales System
Cologne Deutschland 51170
Tel: +49 2203 937 260/261
Fax: +49 2203 937 191
Generally, goods must be marked or labelled to show the:
- manufacturer's name
- content
- quantity in metric units
- country of origin
German importers are required to inform foreign exporters of specific government marking and labelling requirements.
Labelling on prepacked foods must indicate in German the following:
- The product's trade name
- The net weight
- The minimum shelf life
- A list of the ingredients in order of prominence
- The name of the producer, packer or EC distributor
The labelling must correspond with EU regulations and has to be clarified in each individual case.
Other general information:
- Certain textile products must show raw material content.
- Egg products must show, on their containers, details of the process used to destroy salmonella and enterobacteria.
Weights and measures
The metric system.
Insurance
Normal commercial practice.
Methods of quoting and payment
Quotes in Euro or US dollars CIF (Incoterms 1990) German port. Methods of payment follow normal commercial practice.
Public health requirements
Livestock (other than horses, dogs and cats), foods, animal products, plants and plant products are subject to detailed regulations and controls, and imports must be accompanied by special certificates (see 'Special certificates'). Specific requirements should be checked with the importer.
Imports of drugs and pharmaceuticals are strictly controlled.
Insecticides and other potentially dangerous chemical substances for general sale are restricted by laws. The substances have to be approved and registered with German Government agencies after testing to determine whether the product is safe for normal trading.
EU legislation for imports of meat requires sanitary certificates from the Australian Quarantine and Inspection Service (AQIS) and the Department of Agriculture, Fisheries and Forestry-Australia (AFFA). In this regard qualified advice should be sought.
Documentation
Pro forma invoice
This may occasionally be requested by the importer. A minimum of two copies is required.
Commercial invoice
No prescribed form, and a minimum of two copies is required. The invoice must include:
- The name and address of both buyer and seller
- Method of packing
- Marks and numbers
- Number of containers
- Description of the merchandise (including HS description)
- Net and gross weight
- FOB value (Incoterms 1990)
- Freight
- Insurance and other charges
Certificate of origin
This is required for certain specified items and should be issued by an approved authority (see 'Guidelines', section 2.3).
Bill of lading
No special requirements. To Order bills are acceptable.
Packing list
Not compulsory but facilitates clearance.
Special certificates
Fresh carcass meat, offal and livestock require sanitary certificates issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service (AQIS) and the Department of Agriculture, Fisheries and Forestry-Australia (AFFA), or the relevant state department of agriculture.
Fruit and plants require phytosanitary certificates issued by the approved authority in the country of origin.
A certificate of age, authenticated by an approved authority in the country of origin, may be required for alcoholic beverages.
Taxation
Levels of income tax are high and a Value Added Tax (VAT) applies in Germany – the general rate is 16 per cent and the reduced rate, which applies to a limited range of goods, mainly primary products, is seven per cent. Excise duties are levied on a small range of items.
Reforms in 2000 saw company tax reduced from 52 per cent to 37 per cent. Further government implemented taxation reforms from 1 January 2001 have led to a more competitive structure, with roll-out to be completed by 2005.
In compliance with the CAP of the EU, import levies can be imposed in addition to the customs duties on grains, meat, dairy produce, sugar products and eggs to bring their subsequent pricing as imported goods up to pre-determined minimum levels.
Business travel
The main arrival/departure points for flights in Germany are Frankfurt, Munich and Berlin. Frankfurt is Europe's busiest airport after Heathrow. Taxis are available outside the airport or can be booked. Costs from the airport to the Austrade Frankfurt office (city centre) are approximately €30.00.
In all major cities public transport is good and inexpensive. Often the best link between cities is by train, either high-speed or conventional. The trains are clean and reliable, but travel First Class to avoid crowds.
From the airport’s regional train station below Terminal 1, the S8 and S9 commuter trains (direction Frankfurt/Offenbach/Hanau) depart every 15 minutes to the Frankfurt Hauptbahnhof (Hbf) central station and Hauptwache (city centre Frankfurt).
Germany has an extensive network of freeways (Autobahn) servicing all major centres. Please note that Germans drive on the right side of the road. You can hire a car through all major car rental companies either in advance or upon arrival in Germany.
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