DUTIES

Controls over cross border trading have been significantly relaxed with Greece's entry into the EU. No import or export duties are levied on transactions between EU countries. Indeed, cross-border transactions between EU-residents are no longer considered imports/exports. On imports from non-EU countries, the Common External Customs Tariff of the EU is in effect.

When applicable, import duties are generally calculated on the CIF price plus all other expenses incidental to the sale and delivery of the goods to the point of entry into the customs territory of Greece. In some cases, products may be stored, repackaged, etc. in free zones without payment of any duties or taxes, including VAT. The rates of import duties vary with the classification of the goods imported.

USE OF AGENTS AND REPRESENTATIVE OFFICES

Duties and VAT must be paid at the time goods are cleared through customs for imports (i.e. non-EU transactions). The use of agents and customs brokers is common. Although an import licence is not required, terms of payment must normally be arranged through a commercial bank for each import.

Although acquisitions from EU countries are no longer considered imports, terms of payment for such transactions must also normally be settled through the commercial banks and VAT is accounted for using the reverse charge mechanism.

Sales to purchasers registered for VAT in EU states are not subject to VAT in Greece provided that the VAT registration numbers of the supplier and purchaser are shown on the invoice. Where goods are purchased from an EU resident supplier, VAT is not payable at the border but must be accounted for using the reverse charge mechanism.

A non-resident importer must, under certain circumstances, appoint a VAT fiscal representative in Greece.

IMPORT-EXPORT CONTROLS

Imports

Quantitative restrictions over imports are imposed for a limited number of items and prior permission from the Ministry of National Economy is required. In addition, certain goods such as firearms and explosives are subject to special rules or require product clearance prior to importation.

After the importation has been completed, the documentation may be subjected to an inspection to ensure that foreign exchange has not been illegally remitted abroad by overstating the value of imported goods.

Anti-dumping measures can be taken but they must comply with EU anti-dumping legislation.

Exports

The Greek State has always recognised the importance of exports to the economy and has provided exporters with a wide variety of incentives in the form of tax and duty reductions and better terms on loan finance.

Greece's entry into the European Union has resulted in the elimination of the export restrictions adopted in the past, at least as regards exports to EU countries. There are thus few restrictions on exports and those that exist relate primarily to goods which are scarce and essential to the local economy. For the export of such goods, prior approval from the Ministry of National Economy is required.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Marios T. Kyriacou, KPMG Peat Marwick Kyriacou, Athens, Tel: +301 77 52 001; Fax: +301 77 04 182 or enter a text search 'KPMG Peat Marwick Kyriacou' and 'Business Monitor'.