Romania Import Tax

Romania, as a member of the European Union (EU), operates under the EU’s Common Customs Union (CCU), which establishes a unified set of customs regulations and tariffs for all EU member states. This means that goods imported into Romania are subject to EU-wide tariff rates and customs procedures. However, Romania’s role as an EU member state also means it participates in preferential trade agreements that offer reduced tariffs or exemptions for products originating from specific countries or regions.

Romania’s customs duties are largely governed by the EU Customs Code, the Combined Nomenclature (CN), and the Tariff Integrated Community Code (TARIC), which standardize tariff rates across EU member states. While Romania has specific import tariff rates for different product categories, it also offers preferential treatment to countries with which the EU has trade agreements, such as the EU-Canada Comprehensive Economic and Trade Agreement (CETA), EU-Japan Economic Partnership Agreement (EPA), and other agreements that lower or eliminate tariffs on specific goods.

Overview of Romania’s Tariff System

As part of the European Union, Romania follows the EU’s Unified Customs Law. The customs tariffs applicable to goods imported into Romania are generally uniform across all EU member states. Customs duties are calculated based on the customs tariff set by the EU for imported goods, which is determined by the Harmonized System (HS) codes. These codes categorize products into various tariff classifications, each subject to specific import duty rates.

Import Tariff Rates for Various Product Categories

Romania follows the EU’s Common Customs Tariff (CCT), which sets the general rate of customs duties for imports. The general Most Favored Nation (MFN) rate is typically 4% to 12%, although this can vary based on the specific product category and trade agreements. Below, we break down the import tariff rates for several key product categories:

Consumer Goods

• Clothing & Apparel:
  • Import duties for clothing and textiles typically range from 0% to 12%, depending on the type of fabric, product, and country of origin.
  • Clothing from developing countries or least-developed countries (LDCs) may be eligible for zero-duty under the EU’s Generalized System of Preferences (GSP).
• Electronics & Household Appliances:
  • Consumer electronics like mobile phones, computers, televisions, and household appliances generally face 0% to 14% tariffs, though high-tech items such as computers and medical devices may have preferential treatment.
  • Electronic products from countries with which the EU has free trade agreements, such as Japan or South Korea, may be subject to lower or zero tariffs.
• Furniture & Home Decor:
  • Import duties for furniture and home decor products are typically 0% to 5% depending on the type of material and product category.
  • Luxury furniture products may be subject to higher rates, but they generally remain within the 5% range.

Food & Agricultural Products

• Meat & Meat Products:
  • Fresh and frozen meat (e.g., beef, poultry, lamb) generally face import duties between 12% to 20%, depending on the type of meat and the origin country.
  • Halal meat products, imported from countries like Turkey, may receive preferential rates under agreements with non-EU countries.
• Cereals, Grains, & Flour:
  • Grains such as wheat, corn, and rice are subject to import duties that typically range between 0% to 10%, with exemptions for countries within the EU or those with preferential trade agreements.
• Dairy Products:
  • Dairy products like cheese, milk, butter, and yogurt generally face import duties between 5% to 20%.
  • Dairy imports from countries like New Zealand and Australia may receive preferential treatment under the EU’s trade agreements.

Chemical Products

• Pharmaceuticals & Medical Devices:
  • Pharmaceuticals and medical devices typically benefit from zero customs duties due to the EU’s commitment to providing affordable healthcare solutions.
  • Some medical devices may also be exempt from VAT and customs duties when they are imported for medical purposes.
• Cosmetics:
  • Cosmetics and personal care products typically attract a 6% tariff under the EU Common Customs Tariff.
  • Some products, especially those considered as “medicinal” or therapeutic, may qualify for reduced rates or exemptions.

Machinery & Industrial Equipment

• Industrial Machinery & Tools:
  • Heavy machinery, industrial equipment, and power generation equipment generally face 0% to 5% tariffs, depending on the product.
  • Renewable energy machinery may benefit from exemptions or reduced duties under EU green energy initiatives.
• Vehicles & Automotive Parts:
  • Cars, trucks, and other motor vehicles face import duties of 10%.
  • Automotive spare parts usually have tariffs ranging between 0% and 5%, with the EU providing preferential access to certain parts from GCC countries or South Korea.

Plastics & Chemicals

• Plastics & Rubber Products:
  • Import duties on plastics generally fall within the range of 3% to 7%, depending on the type of plastic or rubber and its intended use.
  • Recycled plastics may benefit from reduced tariffs under EU sustainability policies.
• Organic Chemicals:
  • Organic chemicals, including industrial chemicals, fertilizers, and pesticides, generally have tariffs ranging from 3% to 6%.
  • Specialized chemicals that serve the pharmaceutical or food industries may have lower rates, especially if they originate from countries with trade agreements with the EU.

Special Import Duties for Certain Products from Specific Countries

Romania, as part of the EU, benefits from a wide array of preferential trade agreements and international treaties that help reduce or eliminate tariffs for certain products coming from specific countries or regions. These agreements aim to boost trade flows and facilitate economic cooperation.

Free Trade Agreements and Preferential Tariffs

EU Free Trade Agreements (FTAs)

The EU has several free trade agreements with countries and regional blocs that benefit importers in Romania. These agreements reduce or eliminate tariffs on a wide range of goods.

• EU-Japan Economic Partnership Agreement (EPA):
  • The EU-Japan EPA, implemented in 2019, significantly reduces tariffs on industrial goods such as machinery, electronics, and cars. These products now benefit from preferential duty rates, often reduced to zero for high-tech items.
• EU-South Korea Free Trade Agreement:
  • The EU-South Korea FTA, signed in 2011, eliminates tariffs on many Korean products, including vehicles, machinery, and electronics. As a result, goods from South Korea are often imported into Romania at reduced or zero duties.
• EU-Canada Comprehensive Economic and Trade Agreement (CETA):
  • Under CETA, many goods, including agricultural products and industrial machinery, benefit from reduced tariffs when imported from Canada into Romania. Products such as pork, beef, and other agricultural commodities have seen their tariffs reduced or eliminated.

Generalized System of Preferences (GSP)

The GSP is a trade program designed to promote trade with developing countries by offering lower or zero tariffs for products from these countries. Countries eligible for the GSP program include India, Bangladesh, Vietnam, and others. Under this system:

• Agricultural products, such as rice, spices, and fruits, may enter Romania with lower tariffs when imported from GSP-eligible countries.
• Textiles and garments also benefit from the GSP, especially from Pakistan and Bangladesh, reducing the duty burden on imports.

Least Developed Countries (LDCs) – Everything But Arms (EBA)

Romania, through the EU, participates in the Everything But Arms (EBA) initiative, which provides duty-free and quota-free access to all products (except arms) from least-developed countries (LDCs). These countries, primarily in Africa, Asia, and the Caribbean, benefit from preferential access to the European market, including Romania.

Anti-Dumping Duties

In line with EU regulations, Romania can impose anti-dumping duties on products that are sold at unfairly low prices, typically those coming from non-EU countries where the selling price is below the production cost or market value.

• Steel Products: Products such as steel, particularly from countries like China and Russia, are often subject to anti-dumping duties ranging from 20% to 40% to protect EU producers from unfair competition.
• Solar Panels: Solar panels, primarily from China, are also subject to anti-dumping duties due to allegations of price undercutting in the EU market.

Romania: Country Facts and General Information

• Formal Name: Romania (România)
• Capital: Bucharest
• Largest Cities:
  • Bucharest (Capital)
  • Cluj-Napoca
  • Timișoara
• Per Capita Income: Approximately $13,000 (USD)
• Population: Approximately 19.3 million people
• Official Language: Romanian
• Currency: Romanian Leu (RON)
• Location: Southeastern Europe, bordering the Black Sea, and sharing borders with Bulgaria, Serbia, Hungary, Ukraine, and Moldova.

Geography of Romania

Romania is a landlocked country situated in Southeast Europe, bordered by the Black Sea to the southeast. The country’s landscape is diverse, featuring mountain ranges (the Carpathian Mountains) in the center, fertile plains in the south, and a coastline along the Black Sea.

• Area: 238,397 square kilometers
• Climate: Temperate-continental climate with cold winters and warm summers, with some areas experiencing mild Mediterranean influences.
• Natural Features: Romania has rich forests, rivers (notably the Danube River), and a well-known delta—the Danube Delta, a UNESCO World Heritage Site.

Economy of Romania

Romania has undergone significant economic transformation since the fall of the Communist regime in 1989. The country has become an attractive destination for investment due to its low labor costs, strategic location, and growing industrial base.

• GDP: Approximately $330 billion USD (nominal)
• Key Industries:
  • Automotive: Romania has a strong automotive industry, with major companies such as Dacia and Ford operating manufacturing plants in the country.
  • Information Technology: Romania is becoming a hub for IT services and software development, with a thriving tech sector.
  • Agriculture: Romania has a robust agricultural sector, producing large quantities of grains, fruits, and vegetables.
  • Manufacturing: Romania is an important manufacturing center for machinery, electronics, and consumer goods.