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Country Commercial Guides FY 2000: Greece Report prepared by U.S. Embassy Athens, released July 1999 Note*

CHAPTER VI: TRADE REGULATIONS, CUSTOMS AND STANDARDS

1. Trade Barriers

Greece, which is a WTO member, has both EU-mandated and Greek government-initiated trade barriers.

Law: Greece maintains nationality restrictions on a number of professional and business services, including legal advice. Restrictions on legal advice do not apply to EU citizens, and U.S. companies generally circumvent these barriers by employing EU citizens

Accounting/auditing: The transitional period for de-monopolization of the Greek audit industry officially ended on July 1, 1997. Numerous attempts to reserve a portion of the market for the former state audit monopoly during the transition period (1994-97) were blocked by the European Commission and peer review in the OECD. However, in November 1997, the Greek government issued a presidential decree that reduced the competitiveness of the multinational auditing firms. The decree established minimum fees for audits, and imposed restrictions on utilization of different types of personnel in audits. It also prohibited audit firms from doing multiple tasks for a client, thus raising the cost of audit work. The government has defended these regulations as necessary to ensure the quality and objectivity of audits. In practical effect, the decree constitutes a step back from deregulation of the industry. Aviation: The Greek flag carrier, Olympic, used to have a monopoly in the provision of ground services to other airlines. As of January 1, 1998, all major airports in the EU had to offer at least two ground handling options. However, in practice Olympic remains the only ground handling option other than self-handling.

Motion Pictures: Greek film production is subsidized by a 12 percent admissions tax on all motion pictures. Enforcement of Greek laws protecting intellectual property rights for film, software, music, and books is problematic, but has improved in 1998-99.

Agricultural products: Greece has not been responsive to applications for introduction of bioengineered (genetically modified) seeds for field tests despite support for such tests by Greek farmers.

Greece insists on testing U.S. wheat shipments for karnal bunt disease. It will not accept U.S.D.A. certificates stating that wheat comes from areas free from the disease. The testing method used provides a high incidence of false positive results and thus serves as a de facto ban on imports of U.S. wheat.

2. Customs Valuation

As a member of the European Union, Greece subscribes to the EU's common external tariff, common agricultural policy, joint transportation policy, and to the directives on the free movement of goods, labor and capital. Trade between EU members is duty-free. Import duties on products from non-EU countries (including the U.S.) is 5 - 7 percent for most manufactured products. In general, duties are lower on most raw materials and higher on some other product categories, such as textiles. Import duties are applied on C.I.F., ad valorem basis. In addition to import duties, imports are subject to other minor surcharges totaling less than 1 percent.

Agricultural products from non-EU countries are subject to a more complicated protection system administered by the EU. The system includes higher surcharges that make non-EU agricultural products non-competitive on price. Greece occasionally bans imports of some types of products that compete with similar domestically produced ones. Greece also sometimes prevents or delays customs clearance due to phytosanitary problems.

Commodity imports into Greece are generally free and no import licenses are required. The EU applies certain quota restrictions on products from low-cost countries. U.S. businessmen wishing to market products that they manufacture in low-cost countries, such as China, are advised to review the quota system with their importers.

Banks require one original invoice from the foreign supplier in order to carry out a transaction. Temporary duty relief can be granted for raw materials imported into Greece for processing and re-exportation to non-EU countries. Goods imported into Greece for demonstration can be imported under a carnet, which can be issued by most U.S. Chambers of Commerce.

3. Labeling

Labeling and marking requirements are in accord with EU requirements. Labels must be in Greek. The Greek labels can be attached to the product between clearing customs and being offered for sale. If this present a problem, U.S. manufacturers should consult with their Greek importers.

4. Standards

Greece follows standards requirements according to guidelines set by the EU. ISO 9000 is accepted and used by many local firms and is a requirement for many government procurement contracts.

5. Special Import Provisions

Pharmaceutical imports require a special approval that is granted by the National Pharmaceutical Organization. New-to-market food products require similar approval by the General State Laboratory.

Products complying with the Food Code do not require a special permit to be imported and marketed in Greece, with the exception of seeds, meat and poultry products, nuts, and dairy products.

Seeds: In order for a seed variety to be imported into Greece it should be listed in the European Variety Catalog. If not, it must be registered in the national Catalog of Greece, which requires tests taking 2-3 years, depending on variety and species. Seeds must be accompanied by certain certificates required by the EU.

Meat and Poultry: Imports of meat and poultry meat and their by-products from third countries into Greece are allowed only from EU approved plants. However, imports of poultry meat poultry products into Greece from the U.S. are suspended due to failure of the U.S.-E.U. Veterinary Equivalency agreement to include poultry.

Nuts: Imported nuts are subject to an aflatoxin test performed by the Supreme Chemical Laboratory.

Dairy Products: Imports of dairy products (i.e., ice cream and frozen yogurt) of U.S. origin should be from plants included in the list of EU approved plants.

6. Free Trade Zones

Greece has three free-trade zones, located at the Piraeus, Thessaloniki, and Heraklion port areas. Goods of foreign origin may be brought into these zones without payment of customs duties or other taxes and remain free of all duties and taxes if subsequently transshipped or re-exported.

Similarly, documents pertaining to the receipt, storage, or transfer of goods within the zones are free from stamp taxes.

Handling operations are carried out according to EU regulations 2504/88 and 2562/90. Transit goods may be held in the zones free of bond. The zones also may be used for repacking, sorting, and relabeling operations. Assembly and manufacture of goods are carried out on a small scale in the Thessaloniki Free Zone. Storage time is unlimited, as long as warehouse charges are promptly paid every six months.