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U.S. Department State
The Netherlands Country Commercial Guide
Office of the Coordinator for Business Affairs
The Netherlands
Fiscal Year 1996
TABLE OF CONTENTS
CHAPTER I. EXECUTIVE SUMMARY
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
CHAPTER III. POLITICAL ENVIRONMENT
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
CHAPTER VII. INVESTMENT CLIMATE
CHAPTER VIII. TRADE AND PROJECT FINANCING
CHAPTER IX. BUSINESS TRAVEL
CHAPTER X. APPENDICES
This Country Commercial Guide (CCG) presents a comprehensive look at the
Netherlands' commercial environment through economic, political and
market analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. government agencies.
CHAPTER I. EXECUTIVE SUMMARY
The Netherlands is about the size of the State of Maryland, and in terms
of geographic ranking, it is the 121st largest country in the world and
50th in terms of population. But its "smallness" fades dramatically
when the economic numbers are examined.
The Netherlands is one of the top dozen trading countries in the world,
it is ranked 13th in GNP, ninth in imports of goods and services from
the United States, and third in foreign investment in the U.S., behind
the United Kingdom and Japan. The U.S. is the largest foreign investor
in the Netherlands and has its largest bilateral trade surplus in the
world with this country (More than $8 bn in 1994). Dutch leisure and
business travelers contribute almost $1 billion annually to the U.S.
economy, which makes the Netherlands our 13th largest source of travel
and tourism revenue.
What is the bottom line for American exporters? The range of export
potential for products and services in the Netherlands is amazingly
broad-based. From high-tech to low-tech, all manner of goods coming
into Europe can take advantage of Dutch distribution, warehousing, and
value-added manufacturing. American industrial goods, as well as
consumer goods, are popular and have a reputation for quality. The
depreciation of the dollar makes them even more attractive. The
decision of whether or not to become involved in the Dutch market can
often be made by heeding the prevailing wisdom that an American
manufacturer or supplier of a well-designed product with strong sales in
the U.S. can expect to do well in the Netherlands.
The country's advanced transport and logistical infrastructure is second
to none in Europe. Dutch firms own one third of cross border European
Union freight carrying vehicles and over 60 percent of European river
barges. One fifth of Europe's Regional Distribution Centers are in the
Netherlands. Rotterdam is the largest seaport in the world and handles
almost half of U.S. surface exports to Western Europe; Amsterdam
Schiphol airport is the fourth busiest cargo airport in Europe.
The commercial and economic environment in the Netherlands presents
special opportunities and challenges for American companies. Our
bilateral trade and investment relations with the Dutch are long, solid
and more important today than ever before.
Economic growth picked up in the Netherlands during 1994. Real Gross
Domestic Product (GDP) grew 2.5 percent, and official forecasts predict
growth of 3.25 percent in 1995. Growth is expected to slow to 2.5 in
1996. Dutch exports are expected to benefit from growth in world trade
despite the strong guilder. Labor costs remain under control.
Inflation is currently around 2 percent, but inflationary pressures are
set to increase over the medium-term. Despite economic growth,
unemployment is expected to remain stable at around 9 percent.
An estimated 7,000 U.S. companies have appointed Dutch agents and
distributors in the Netherlands. Of the top 500 U.S. companies, 105
have formed European Distribution Centers in the Netherlands.
Approximately 1,100 American and American-affiliated companies have
operations in the Netherlands. Many American companies locate their
agents in the Netherlands through participation in a broad range of
well-established trade events attracting countrywide and international
attendees, and through using the individualized services of the
Commercial Service designed to support the matchmaking process.
The Dutch market thus continues to be an outstanding business arena for
American firms, both as an end market and as a means of entry into the
rest of Europe. The Netherlands' strategic location is unique. Over
160 million consumers (half the population of the European Union) live
within a 300 mile radius of Rotterdam. Use of English is widespread and
seventy-three percent of the Dutch population master one or more foreign
languages. Historic ties to the U.S. provide a highly receptive market
for American goods and services coming to and through the country.
The country's strategic location combined with the relative ease of
doing business makes the Netherlands an ideal European operations
location for American companies. The Netherlands boasts a world-class
and user-friendly transportation and distribution infrastructure, as
well as a full menu of business services. Companies may want to start
by taking advantage of the state-of-the-art Dutch distribution system
which includes "value added logistics" (VAL) services, including
adapting products to suit the European market.
An American company that has a quality product with strong sales
performance in the United States, competitive prices, and a firm
commitment to exporting, will do well in the Netherlands. Companies
which have developed or are likely to develop market inroads into the
rest of Europe should take a close look at the Netherlands as a possible
European distribution and/or marketing and sales center. If you are
interested in doing business in the Netherlands, the American Embassy
should be your first point of contact. If we do not know the answer to
your questions, we know who does. Please direct your inquiries to the
Commercial Service, Phone: (31) 70 310 9417; Fax: (31) 70 363 2985.
American firms expanding into Europe have traditionally chosen the
United Kingdom as a springboard. It is perhaps time to move on, and
expand into continental Europe by choosing the Netherlands -
geographically, structurally and culturally the most logical choice.
Country Commercial Guides are available on the National Trade Data Bank
on CD-ROM or through the Internet. Please contact Stat-USA at 1-800-
Stat-USA for more information. To locate Country Commercial Guides via
the Internet, Please use the following world Wide Web address: WWW.
Stat-USA.Gov. CCG's can also be ordered in hard copy or on diskette
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
Economic growth in the Netherlands is picking up. Real Gross Domestic
Product (GDP) grew 2.5 percent in 1994, and is officially forecast to
grow 3.25 percent in 1995 and slow to 2.5 percent in 1996. Growing
world trade will continue to boost Dutch exports despite the strong
guilder. Labor costs remain under control. Inflation is low at around
2 percent, but inflationary pressures loom over the next year or two.
Despite economic growth, unemployment is expected to remain stable at
around 9 percent. The public sector deficit continues to be whittled
away, but public debt remains well above the target set out in the
Maastricht Treaty for economic and monetary union. Public opinion seems
to support a smaller state sector and social security system, but reform
remains politically touchy.
GDP Growth
Economic growth figures and forecasts have been revised upwards several
times. The Central Planning Bureau (CPB) now says 1994 GDP grew 2.5
percent year-on-year, and forecasts 3.25 percent growth in 1995, slowing
to 2.5 percent in 1996. This is in line with the OECD's growth forecast
for the Netherlands of 3.1 percent in 1995 and 2.7 percent in 1996.
ABN-Amro Bank - Holland's largest - predicts 2.8 percent in 1995,
peaking at 3 percent in 1996. According to the CPB, investment will
replace exports as the main driving force.
Inflation
Inflation is low and falling. The annual rate is expected to dip below
two percent in mid-1995, reflecting the strong guilder/dollar rate's
impact on import prices. The average rate for 1995 is forecast at 1.75
percent, rising slightly to 2.25 percent in 1996. The OECD sees
inflation in the Netherlands drop to 1.8 percent in 1995 and 1996.
However, there are inflationary pressures. Economic growth will stay
positive through 1995-96. Capacity utilization was up to 84.5 percent
in March 1995. In the semi-manufactured goods sector, it rose to 85.5
percent. And, despite high unemployment, wage moderation, and
government cuts in employers' social security and tax burden, wage costs
will start contributing to inflation in 1996 as productivity growth
slows. The dollar is expected to strengthen against the guilder in 1995
and 1996, eliminating some of the deflationary exchange rate effect.
The official forecast dollar/guilder exchange rate is Nfl 1.65/$1 in
1995 and NFL1.70/$1 in 1996. Large commercial banks forecast rates of
Nfl 1.69/$1 end-95, and 1.75/$1 end-96).
Labor Costs
Collective bargaining will raise wages by an average of 1.25 percent in
1995. The average increase for 1996 is projected to be 2.25 percent.
However, the effect on wage costs will be limited by government moves to
reduce the tax and social security premium burden on employers.
Principal Growth Sectors
In addition to the "Best Prospect Sectors" listed in CHAPTER V, there
are opportunities for American companies which provide products and
services which meet the needs of planned Dutch infrastructure
development projects, including: the Rotterdam Port and City
Development Plan (the "Havenplan 2010"), the Schiphol (Amsterdam)
Airport Development Plan (the "Masterplan 2003"), the construction of a
new all-freight rail line between Rotterdam and Germany (The
"Betuwelijn"), and the construction of a high speed passenger rail line
to Germany and France using the French TGV. Selected niches in the
defense market will also continue to be of interest to American
suppliers.
Government Role in the Economy
Unresolved Problems
Deficits and Debt: The deficit has steadily fallen as a percentage of
GDP since the 1980s. Under the conventional definition, the budget
deficit fell below two percent of GDP in 1994.
But the government has been criticized for using incidental income, eg,
accelerated tax collection and privatization income, to shrink the
deficit number and mask the structural trend. So the government has
introduced a new definition, the "policy relevant deficit". Using this
definition, the deficit rose from 3.3 percent in 1993 to 3.5 percent of
GDP in 1994. The outlook for 1995 and 1996 is 3.25 and 2.5 percent of
GDP, respectively. The Maastricht deficit criterion is no more than 3
percent of GDP.
The Maastricht EMU criteria require a debt-to-GDP ratio of no more than
60 percent, or steady progress toward that level. The Netherlands has a
way to go. The ratio fell from 81.4 percent in 1993 to 79.4 percent in
1994. ABN-Amro Bank forecasts it to be slightly higher, at 79.9 Percent
in 1995, and higher still in 1996. However, Finance Minister Zalm puts
the 1995 figure at 78.5 Percent, and says it will decline further in
1996. The government is counting on GDP growth in the out-years to cut
the ratio, both by increasing tax revenues and the denominator.
Unemployment and Inactivity: Unemployment has stopped rising, but is
not expected to fall despite economic growth. Unemployment is currently
9 percent, lower than the European Union average, but still high.
Employment is forecast to grow in 1995 and 1996, by 79,000 and 92,000
jobs, respectively. However, the supply of labor will also rise
sharply, absorbing the increase in the number of jobs.
The "inactivity ratio", that is, the ratio of all benefit recipients to
economically active persons, has fallen slightly, mainly due to stricter
criteria for disability benefits. In 1994, the ratio was 83.8 (ie, 83.8
inactives supported by every 100 working people) and is expected to fall
to 83.25 percent in 1995 and slightly over 82 percent in 1996. However,
there is political pressure to relax stricter disability criteria.
Consensus, Competition, and the Welfare State: Prominent observers
believe that the "only way" forward for the Netherlands is to continue
to de-regulate, liberalize, privatize, and that the traditional
consensus, corporatist economy is - and should continue - eroding.
Political and public opinion is swinging behind the idea of a less
generous welfare system, lower-taxes, and more competition. Opinion
polls and the 1995 provincial elections show growing public support for
a smaller state sector and a "minimal" (in Dutch terms) social security
system.
The Netherlands leads its EU partners in liberalization in a number of
areas, eg, posts and telecommunications and public transportation, but
there is more to do. The next stage will be to liberalize and privatize
the electricity utilities. There is domestic and foreign interest in
sectors where there has been little competition before.
Policies in the coalition accord - the written agreement on which the
three-party government is founded - point generally in the right
direction: lower taxes, more competition, fewer subsidies, a smaller
welfare state. However, implementation will not always be easy. A more
competitive economy means eroding Holland's famed "consensus society",
the corporatist model shaped over decades. A milestone was reached when
Parliament recently decided that the government need no longer consult
the Social Economic Council (SER) - the cornerstone of the consensus
society made up of representatives of business, labor, and academia - on
proposed legislation.
Balance of Payments Situation
Exports were up 7.3 percent in 1994, against 6.1 percent growth of
imports. Dutch exports are biassed toward semi-finished goods, which
was a plus in 1994 at an early stage of the world recovery. However, in
1995 and 1996, world demand for capital goods will increase, slowing the
growth of Dutch exports. A merchandise trade surplus contributed to a
1994 current account surplus of near 23 billion guilders ($13 billion).
There are no significant trade barriers, and the US has a trade surplus
of more than $8 billion with the Netherlands, our 9th largest trading
partner.
Infrastructure Situation
Spending on Infrastructure
The Government plans to boost growth, employment, and competitiveness
through public infrastructure spending of more than 8 billion guilders
($4 billion) a year between 1994 and the end of 1998 - a total of 40
billion guilders - paid for largely by one-off proceeds of sales of
state holdings (eg, the Dutch PTT) and one-time windfall revenues from
the natural gas sales. Total infrastructure outlays over the next five
years may be higher if, as planned, the Government can attract private
investment and contributions from the EU Structural Fund. Because
European Union rules have opened public procurement to foreign firms,
there may be attractive opportunities for U.S. firms to participate in
the renewal of Dutch physical infrastructure.
CHAPTER III. POLITICAL ENVIRONMENT
Nature of Political Relationship with the United States
The Netherlands has an historically close bilateral relationship with
the United States, encompassing a full agenda of political, economic,
military and social issues. The Netherlands and the United States work
closely together in NATO, the United Nations, the GATT, the Organization
on Security and Cooperation in Europe, the OECD, and other international
fora.
Major Political Issues Affecting Business Climate
A three-party coalition consisting of the left-leaning Labor Party
(PvdA), the right-leaning Liberal Party (VVD) and center-left Democrats
(D66), has been in power since August 1994. The government is
implementing its coalition agreement to trim budget deficits and to
streamline the generous social welfare system. Among priorities for
addressing business needs are reducing company tax contributions for
social programs, and easing employment rigidities. In foreign affairs
and defense policy, there is a strong consensus in the Netherlands in
favor of continued close ties with the United States, support for NATO,
and further European integration through the EU.
Brief Synopsis of Political System, Schedule for Elections, and
Orientation of Major Political Parties
The Netherlands is a constitutional monarchy with a parliamentary form
of government. The Monarch (Queen Beatrix) is the titular Head of
State, however, the Council of Ministers (the Cabinet plus
representatives of the Netherlands Antilles) is responsible for
government policy. The Ministers, collectively and individually, are
responsible to the Parliament, but do not serve in Parliament.
The Dutch Parliament (also known as the "States General") consists of
two houses: the First and Second Chambers. The Second Chamber is the
more influential of the two chambers. It consists of 150 members
elected on party slates for four-year terms under a system of
proportional representation. As a result, members represent the whole
country rather than individual districts as in the United States. The
difficulty of winning an absolute majority under this system has given
rise to a tradition of coalition government.
The First Chamber, composed of 75 members, is elected by provincial
legislatures for four-year terms. While it can neither initiate nor
amend legislation, it must approve all legislation passed by the Second
Chamber before it becomes law.
Following elections in May 1994, twelve political parties are
represented in the Second Chamber. The Labor Party (Pvda) is the
largest party with 37 seats, followed by the Christian Democrats (CDA)
with 34, the Liberals (VVD) with 31, and D66 with 24. The Labor Party's
traditional base has been among the labor unions and working-class,
while the Christian Democrats draw upon a long tradition of
confessional-oriented politics in the Netherlands. The Liberal Party is
a strong advocate of free enterprise and minimal government
intervention. D66 combines views from both the left and liberal
streams. Extreme parties of the right and left exist, but have little
support or influence.
The next national elections are due to be held in 1998.
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
The introduction of products into the Dutch market is uncomplicated and
may be achieved by several methods. Product representation throughout
the Netherlands is facilitated by the compact market and may be achieved
with any of the following distribution methods to cover the entire area,
depending on the expected sales volume, product support requirements,
and marketing techniques. However, these methods must be applied being
mindful of the advantages a local representative would have in serving
the home market:
* Establishing a sales office to serve the entire country and
provide a distribution base for Western Europe.
* Selling through an agent or distributor whose activity may cover
specified areas, the entire Benelux, or include European sales.
* Selling through established wholesalers or dealers.
* Selling directly to department stores, chains, retailer
cooperatives, consumer cooperatives, or other purchasing organizations.
Use of Agents and Distributors; Finding a Partner
The Netherlands is one of the most densely populated countries in the
world, with an average of 958 inhabitants per square mile in 1994. This
population density compares to 848 inhabitants per square mile for
Belgium, 830 for Japan, 613 for the United Kingdom, 583 for Germany, and
70 for the United States. The most densely populated region in the
Netherlands is called the Randstad. This region comprises the key
marketing areas of Utrecht, Amsterdam, The Hague, and Rotterdam. The
Randstad is compact, homogeneous, and easily accessible.
Areas outside of the Randstad, including the provinces of Gelderland,
Noord Brabant, and the northern provinces have more land available for
larger commercial operations. Other benefits include less congestion,
and the availability of financial assistance at some locations.
Distances in the Netherlands are short: from Groningen, the most
northerly major city, to Maastricht, at the southern tip, is 200 miles
by road. The distance from Rotterdam to Enschede, located near the
German border, is about 120 miles. Transportation is excellent by road,
rail, and the numerous canals and rivers. Shipments to any point in the
country can reach their destination with ease.
The Netherlands has a variety of experienced importers, sales agents,
and distributors well versed in international trade. A large portion of
the goods is handled by importers who purchase for their own account and
distribute throughout the country and Europe. Because of the size,
accessibility, and competitive nature of the Dutch market, importers
often insist on an exclusive distributorship. If the importer is a well
qualified and experienced firm, an exclusive distributorship often
yields the best results. Wholesalers constitute an important segment of
the importers doing business in this manner. They are the primary
source of supplies for the small- and medium-sized retail outlets, which
often find it impossible to buy directly from manufacturers that require
large orders.
Purchasing associations are formed by independent retailers. These
associations combine purchasing power and operate their own warehouses,
thus performing a function similar to the wholesaler.
There are many commission agents and brokers in the Netherlands serving
the domestic and European markets. A Dutch representative can often
provide an excellent starting point in exporting to Europe. Dutch firms
can easily handle the logistics, linguistics, adaptations, and stocks on
behalf of the American firm.
If the product normally has a high sales volume and low profit margin,
the Dutch prefer to deal direct with the manufacturer. Sales to a
department store, chain store, or end-user often gives best sales
results, but in-turn requires greater promotional effort by the American
exporter to achieve. The direct sales method eliminates the added
shipping and warehousing expenses, but the U.S. exporter and Dutch
importer must handle the shipping formalities and work harder to ensure
a successful business relationship.
Since the Netherlands represents a compact market, foreign firms
customarily have one exclusive representative for the entire country,
but it is common for the representative to appoint subagents to cover
certain sectors of the market if sales volume and profit margin warrant.
Franchising
There are few regulations concerning franchising and none that limit
market access to U.S. firms. Indeed, a number of American franchise
companies have taken off in the Netherlands, particularly in the fast
food area. The European Union issued regulation EEC 4087/88 regarding
franchising, which provides a unified code for the 15 member states.
Its main thrust concerns price fixing, transfer pricing, noncompetition
clauses, and exclusive dealing. It also exempts certain franchise
agreements from EU antitrust regulations.
Direct Marketing
There are numerous well established sales outlets in the Netherlands.
These firms, both at the wholesale and retail level, have traditionally
been small units with high overhead. The trend now is for a smaller
number of units dealing with a greater volume and more competitive
prices. Trends in the Netherlands generally mirror those in the United
States and other European countries. Nevertheless, the Dutch
distribution system is moving toward larger, more economically viable
units to meet changing market needs. The increased tempo of commercial
and industrial activity, as well as suburban development, is bringing
about changes in the distribution system. Wholesalers supply a variety
of services to associated small retailers, including sales promotion,
advertising, and retail training. In some cases, they combine as a
group to purchase from manufacturers and then distribute the goods to
their customers.
Retail outlets range from the large department stores to the small shop
owned and operated by an individual. Although some retail outlets are
small, such enterprises are decreasing in number as efficiencies of
scale and purchasing power become the major competitive factors bearing
on profit margins. A trend toward larger outlets has been under way,
with the formation of chains, expansion of department stores,
establishment of medium-sized department stores, and the development of
chain stores under single management.
Mail-order sales account for a very small part of total Dutch retail
sales. Certain firms have used this technique successfully in
combination with their usual retail outlet operation. Promotion is
carried out by catalog or by newspaper advertisements with no personal
contact. Hobby centers, do-it-yourself, auto supply centers, and
discount stores also are enjoying great success.
Existing channels of distribution for direct marketing in the
Netherlands are set to be shaken up by the increased use of infomercials
on Dutch television.
Infomercials, available since the end of 1991 on Pan-European channels
including RTL, CNN and Eurosport, tend to be crudely dubbed versions of
existing American infomercials. The Dutch soundtrack often features a
native Dutch speaker speaking Dutch with a pronounced American accent.
Most infomercials seen in the Netherlands are broadcast after midnight
when airtime is cheap, although some shorter, direct-order
advertisements are shown during prime time.
Prospects for the growth in this method of selling are bound to grow.
While Dutch state controlled television networks are currently prevented
by law from setting aside the amount of time required for an
infomercial, media laws will inevitably be adjusted to allow
infomercials on state television. Suppliers of home entertainment
products, fitness items, cosmetics, jewelry, and housewares can best
benefit from this emerging retail sector.
Joint Ventures/Licensing
Joint-venture and licensing agreements are commonly used in the
Netherlands. The privatization of state-owned companies in the
Netherlands, including the PTT and public transport systems has further
stimulated the potential for U.S. firms to enter into joint venture
partnerships with Dutch companies.
Steps to Establish an Office
The Netherlands offers extensive public and private sector support for
companies looking to invest in the Netherlands and/or establish offices
in the Netherlands. Commercial Service staff at the Embassy can provide
appropriate contacts for interested companies.
The following are the most common forms of incorporation:
* Private Company (Besloten Vennootschap met beperkte aansprakelijkheid
or BV):
The private company or BV is the most common form of business
organization in the Netherlands. This form of organization is similar
to the NV, but has a more closed character as shown by differences in
the legal provisions concerning shares and lack of regulations requiring
disclosure of annual accounts.
The shares of a BV must be registered, but cannot be sold on the stock
market or offered for public subscription. Usually, the BV bylaws are
written to restrict the transfer of shares. For example, a shareholder
may transfer shares only to a very limited category of relatives without
the prior approval of the company oversight board established for that
purpose without first offering the shares to other existing
shareholders. The most important advantage of a BV is the lack of
requirement to publish financial reports as a NV must do. However,
firms in the insurance or banking sectors that have issued bearer bonds
or certificates and that have its shares or bonds listed on the stock
exchange must file financial reports.
General Partnership (Vennootschap Onder Firma) - In a general
partnership, the individuals operate a business under a common name.
The partners are the owners and managers of the firm and have unlimited
liability. They are jointly and severally liable for any obligations of
the firm. There are no requirements regarding capital or nationality of
the partners who may be individuals or commercial entities. Transfer of
an interest in the partnership must be approved by the other partners.
Upon retirement or leaving the partnership, the partner remains
responsible for any liabilities incurred by the firm before retirement
or departure. A written partnership agreement is required by law with
the rights and duties of the partners clearly stated.
* Limited Partnership (Commanditaire Vennootschap):
A limited partnership is similar to a general partnership except it has
two kinds of partners: one or more general partners who are
unconditionally liable for all the firm's activities and one or more
limited partners who are not active in management of the firms and whose
liability is limited to their capital contribution. A limited partner's
name may not appear in the firm's name unless previously a general
partner. A limited partner who does not conform to these conditions
will be considered a general partner with full liability.
* Limited Partnership with Shares (Commanditaire Vennootschap OP
Aandelen) - is similar to the limited partnership except that the
interests of the limited partners are represented by transferable
shares.
* Cooperative (Cooperatie):
The cooperative is a special type of entity formed to represent the
collective interests of its membership, such as buying or selling,
rather than primarily an establishment to make profits for investors.
This type of association permits the free entry and exit of its members
from the cooperative society. The organization's name must include the
word cooperative (cooperatief) and must give a general indication of its
purpose such as a consumer, dairy, or insurance cooperative. The
cooperative name must also include the degree of liability its members
are exposed to: WA, unlimited; BA, limited; or UA, no liability.
* Cooperation (Naamloze Vennootschap or NV)
The advantages of being a corporation (NV) in the Netherlands include
the limited liability for shareholders, entering into contracts, ability
to sue (and be sued), and transferability of shares.
There are several steps to form a NV: (1) execution of the articles of
incorporation before a notary by at least two of the company's founders,
(2) the submission of notarized articles to the Netherlands' Ministry of
Justice for review for legal compliance, (3) publication of the articles
and the ministry declaration in the Official Gazette (Nederlandse
Staatscourant), and (4) registration of the NV with the local chamber of
commerce.
The articles of incorporation must be in Dutch and be executed before,
and registered by, a notary. The name and location of the principal
administrative office and purpose of the company must be provided. The
amount of capital, number of shares owned by each of the founders must
also be indicated. The first board of directors, if there is to be one,
is included in the articles with later appointments to the board made at
the general stockholders' meeting.
Included in the articles of incorporation must be information on any
special agreements that will obligate the company being set up in the
future. Such expressed or tacit agreements may relate to acquisition of
shares on a preferential basis or assuring the founder of a profit or
payment. After the company has been established, management can enter
into such agreements only if it has explicit authority in the articles
of incorporation.
The name of the corporation must begin or end with Naamloze Vennootschap
or its abbreviation NV, which is the more common practice. The firm's
name should either be in Dutch, or if in another language, include some
additional name such as Nederland, Holland, or the place of
establishment of the company. Any business name previously in legal use
by another company, or one that may cause confusion between two firms,
may not be used.
The principal administrative office of a Dutch company or foreign
subsidiary must be in the Netherlands if it is to have Dutch
nationality. Transfer abroad of the principal administrative office
deprives the company of Dutch nationality. Where the activities of the
company are actually conducted is of no relevance in establishing
nationality if the company's principal administrative office is in the
Netherlands.
The NV, whether domestically or foreign owned, may raise capital by
public or private issue of shares in the Netherlands. The typical NV
has three separate and distinct authorities: the stockholders, board of
directors, and managing board. Responsibilities among these three
bodies are governed by the commercial code and the articles of
incorporation. The stockholders, as owners of the firm, exercise
authority at the general shareholders meeting. Each shareholder has
voting rights proportional to the stocks held. The board of directors
is charged by the general meeting of shareholders with supervision of
the management of the firm. The managing board is entrusted with
managing the affairs of the firm, administering to the business
activity, care of the property and other assets, and representing the
interests of the shareholders and the firm.
Selling Factors/Techniques
The European Union has adopted legislation establishing the obligations
and conditions of European agents and their foreign suppliers. The
purpose of this legislation is to harmonize the laws and provisions of
the member states governing the relations between commercial agents and
their principals.
The directive establishes terms and conditions regarding the respective
rights and obligations of the principal and the commercial agent,
remuneration of the agent, and the conclusion and termination of the
agency contract. To date, implementation of the directive has been
slow, but U.S. firms entering into agency contracts in the European
Union should be aware of the principles of the directive.
On a micro level, the following generalizations can be made about the
Dutch consumer:
* The Dutch are price sensitive but demand quality.
* They are not impulse buyers.
* Clever packaging plays a minor role in influencing shoppers.
* Advertising tends to be informative and not creative.
* The Dutch speak their minds and will not waste your time or
theirs if they are not interested in your product.
Advertising and Trade Promotion
A full range of advertising media is available in the Netherlands.
Numerous radio and television stations serve the country. The cable
television system is available in most areas with the majority of the
population having cable service.
There are numerous advertising agencies with a wide range of services.
The large ones provide a full range of advertising services and are
members of the Institute of Advertising Practitioners, which is closely
associated with the American Association of Advertising Agencies.
Advertising agencies utilize every medium available to advertisers:
direct mailings, press, radio, television, point-of-sale advertising,
posters, and public transportation placards. Other promotional
techniques, such as coupons, samples, premiums, and prizes, are also
used. Laws covering gaming and lotteries as well as restrictive trade
practices are strictly enforced by the government. Firms advertising
and selling goods should obtain local advice regarding provisions of the
laws and consumer acceptance of the promotional or marketing approach.
Dutch firms engaged in market research provide the usual range of
services, including store audits, consumer surveys, product field
testing, and attitude and motivation research. In general, if the
advertising technique works well for your particular product line in the
United States and elsewhere in Europe, the Dutch market should also be
receptive to your theme but on a more reserved basis. There are
differences, however, and local opinion should be obtained first for a
specific strategy that calls for a major commitment of the marketing
budget.
The names of Dutch advertising agencies, market research organizations,
and management and public relations counseling firms may be found in
such publications as the International Directory of Market Research
Houses and Services, American Marketing Association, 420 Lexington
Avenue, New York, NY 10017, Phone: (212) 687-3280, and the Directory of
Marketing Research Agencies and Management Consultants in the United
States and the World, Bradford, P.O. Box 276, Fairfax, VA 22030, Phone:
(703) 560-7484.
The principal advertising media are the press, television, and radio.
Cinema is primarily a support medium with a strong reach among the 15 to
24 year olds.
The following are major Dutch newspapers:
Algemeen Dagblad
P.O. Box 8751
3009 AT Rotterdam
Phone: (31) 10 406 7211
Fax: (21) 10 406 6975
National conservative daily
Circulation: 416,000
Het Financieele Dagblad
P.O. Box 216
1000 AE Amsterdam
Phone: (31) 20 557 4511
Fax: (31) 20 557 4400
National business daily
Circulation: 41,000
De Volkskrant
P.O. Box 1002
1000 BA Amsterdam
Phone: (31) 20 562 9222
Fax: (31) 20 562 6289
National labor-oriented daily
Circulation: 358,000
De Telegraaf
P.O. Box 376
1000 EB Amsterdam
Phone: (31) 20 585 9111
Fax: (31) 20 585 2113
Conservative, sensationalist national daily
Circulation: 750,000
NRC Handelsblad
P.O. Box 8751
3009 AT Rotterdam
Phone: (31) 10 406 7211
Fax: (21) 10 406 6975
Influential, independent national evening daily
Circulation: 268,000
Elsevier
P.O. Box 152
1000 AD Amsterdam
Phone: (31) 20 567 4911
Fax: (31) 20 567 4592
Weekly news and opinion
Circulation: 124,000
Management Team
P.O. Box 397
3900 AJ Veenendaal
Phone: (31) 8385 21422
Fax: (31) 8385 23136
Bi-weekly national management magazine
Circulation: 120,000
The Netherlands participates in the International Convention to
Facilitate the Importation of Commercial Samples and Advertising
Materials. Samples of negligible value imported to promote sales are
accorded duty-free and tax-free treatment. Prior authorization is not
required. To determine whether the samples are of negligible value,
their value is compared with a commercial shipment of the same product.
Granting of duty-free status may require that the samples be rendered
useless for future sale by marking, perforating, cutting, or other
means.
Imported samples of commercial value may be granted a temporary entry
and exemption from custom charges. However, a bond or cash deposit may
be required as security that the goods will be removed from the country.
This security is the duty and tax normally levied plus 10 percent.
Samples may remain in the country for up to 1 year. They are not
permitted to be sold, put to their normal use (except for demonstration
purposes), or utilized in any manner for remuneration. Goods imported
as samples may be imported only in quantities constituting a sample
according to normal commercial usage.
Exhibitions are a cost-effective method to enter a foreign market and
meet a wide range of buyers interested in a particular industry sector.
Sales professionals find that trade fairs attract extensive buyer
attendance and frequently can be used to gauge acceptance and pricing of
new products and to observe the competition. In the course of a few
days, a new market entrant may be able to generate more qualified and
motivated prospects than by using any other sales approach. New
products are frequently introduced at trade shows so that competitive
products can be identified and evaluated as they emerge in the market
place, thus providing important marketing information. Fairs are
particularly useful for introducing a new product to the market or for
finding an agent, distributor, or representative.
Pricing Product
The Netherlands is an extremely competitive market with high receptivity
to U.S. goods. When pricing product for sale in the Netherlands, U.S.
exporters should be aware of additional costs which can reduce profit
margins below those available in the United States.
A value-added tax of 17.5 percent is charged on the majority of goods
sold in the Netherlands. Imported goods are also subject to customs
duty. The costs of transportation, freight forwarding and customs
brokerage charges will further diminish margins, as will commissions to
agents and distributors. Commissions are generally higher in the
Netherlands than in the U.S., as are retailers profit margins.
As is the case in the U.S., pricing of product depends on a myriad of
variables including: channel of distribution, product, season, consumer
receptivity, economic climate, etc. The Commercial Service can offer
U.S. exporters advice on product pricing if required.
Sales Service/Customer Support
The Dutch can purchase from international sources and expect well-
designed, high-quality products, with efficient after-sales service. An
effective servicing system also should be incorporated into distribution
plans.
The U.S. exporter would be ill-advised, after having appointed a
representative firm, to provide only product literature and samples and
then expect to have good sales results. Regular communications and
visits to the representative, particularly when newly appointed, by
seasoned sales personnel or company technicians can reveal information
on market developments and assist in the solution of any problems.
Regular submission of sales reports can be a vital link to analyzing
sales results and identifying potential problems before a serious one
occurs.
Selling to the Government
It is almost impossible to sell to the Dutch government for U.S.
companies without local representation. All public sector procurement
tenders over the threshold amount of 5 million ECU (US $4.3 million) are
published both in the EU Journal and the Dutch Government Gazette
(Staatscourant). Companies interested in identifying and bidding on
government procurements under this amount will have to contact the
individual Dutch ministries directly. A well connected local
representative is vital in this process.
Protecting your Product from IPR Infringement
The Netherlands has legislation for the protection of patents,
trademarks, and industrial designs. It is a member of the Paris Union,
which adheres to the International Convention for the Protection of
Industrial Property. Detailed information and applications for patents,
registration of trademarks, and for design protection should be obtained
from: Patents Council, Octrooiraad, Patentlaan 3, 2288 EE Rijswijk
(ZH).
The Netherlands is a signatory to the European Patent Convention, which
provides for a centralized European-wide patent protection system. The
European Patents Act of 1977 provides increased legal protection, a
patents court, and guidelines for compensation of an inventor.
The European Patent Convention has simplified the process for obtaining
patent protection in the EU member states. Under the European
Convention, an applicant for a patent is granted a preexamined 15-year,
nonrenewable European patent that has the effect of a national patent in
all 16 countries that are signatories of the convention, based on a
single application to the European Patent Office. This procedure should
expedite the granting of patents. However, infringement proceedings
remain within the jurisdiction of the national courts, which could
result in some divergent interpretations. For information, write to the
European Patent Office, Motorama-Haus, Rosenheimer Strasse 30, Munich,
Germany.
Both the Netherlands and the United States are signatories of the
Universal Copyright Convention, which provides for mutual copyright
protection. The Netherlands is also a member of the Berne Convention,
which forms the International Union for the Protection of Literary and
Artistic Works.
Need for a Local Attorney
While it is important to obtain specific legal advice on appointing an
agent or distributor, some general guidelines follow. All agent
agreements should be in writing and state if it is an exclusive
arrangement. Termination of the relationship is the single main area
that most frequently causes problems for American exporters. Generally,
the civil codes protect the interests of the representative. In the
absence of termination provisions in a written agreement, the law
provides for a minimum notice of termination of four months. Parties
may agree to other terms, provided the notice of termination is not less
than one month and up to 6 months, depending on the duration of the
agency relationship. An agreement with a definite period terminates on
the agreed expiration date. If the parties continue to operate under
the agreement after that date, the agreement is usually deemed extended
for a further identical period but not for more than a year. If the
American principal wants to terminate the relationship, notice of
termination should be given, even with definite term contracts.
The termination of an agreement without the required notice makes a
principal liable for compensation. The agent could seek to claim the
amount of the commissions that would have been earned during the
termination period or for the amount of actual damages suffered. In
exceptional cases, and only for just cause (such as competition or
fraud), an agreement may be terminated without notice provided the other
party is immediately advised of
the reason. In such cases, the courts may be requested to terminate the
contract.
At the expiration or termination of an agreement, by whatever means, an
agent who has increased the value of the business is entitled in
principle, to an adequate remuneration which cannot exceed the average
of the commissions in one year. Such claims by agents are subject to an
expiration term of one year.
A sales representative located in the Netherlands is in an ideal
position to market a product throughout all of Europe. Frequently,
American firms will also rely on the Dutch distributor to handle the
details of customs clearance, product labeling, and packaging for
European preferences regarding the product. These duties should be
explicitly stated in a contract.
Before entering into any agreement with a partner, the American
principal should first review the provisions of Dutch law with a
qualified attorney. The legislation regarding unilateral termination of
distribution agreements is designed to provide the local distributor
with some degree of protection and monetary compensation when an
agreement is terminated by the grantor, for reasons other than cause.
The legislation will apply regardless of any clause in the agreement
itself, and the parties may not deviate from the legislation as long as
the distribution agreement is in force.
Three kinds of agreements are generally recognized:
* Exclusive distributorships, where the distributor has the sole
right to sell specified goods within a defined area.
* Quasi-exclusive distributorships, where the distributor sells
almost all the specified products within a defined area.
* Informal distributor arrangements under which the grantor imposes
heavy obligations on the distributor and which would cause damage to
distributorship if the grantor terminated the agreement.
In the absence of mutual agreement, or the failure to meet contract
obligations, a distribution agreement of indefinite term cannot be
terminated by the grantor without reasonable notice or fair
compensation. In general, grantors should consider protecting
themselves by entering into agreements for definite periods rather than
an indefinite period. Also, specific minimum performance clauses should
be considered, such as percent of distributor's sales, minimum annual
sales, number of business contacts to be made, etc., and proposing that
U.S. law and courts have jurisdiction.
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospects for Non-Agricultural Goods and Services
1 - Computer Software (CSF)
Narrative: The overall Dutch market for computer software products grew
by some 7.5 percent to approximately US$ 1.6 billion in 1994. Trade
sources expect this growth rate to continue in 1995. With mainframe and
mid-range computer sales down, software sales for these systems also
decreased. The PC systems software segment and particularly standard
software continued to grow significantly during the year at 5 and 10
percent respectively. These segments are expected to do well in 1995
and 1996 as PC sales further expand into new markets, e.g. consumer
market, and trends to replace custom software in favor of standard
products continue. The United States undoubtedly leads the market for
imported software products. There is continued strong interest in U.S.
quality and new technology products. Competition mainly comes from
European Union countries, including United Kingdom and Germany. The
Dutch software market offers an open import market with few barriers for
U.S. exporters. A new copyright law, in effect since September 1994,
now officially provides better software protection. Best prospects for
U.S. suppliers include all types of PC software products, software for
UNIX systems, document information systems, groupware, EDI software,
networking software and development tools.
$MILLION
1994 1995 1996
A. Total Market Size 1600 1720 1850
B. Total Local Production 640 670 705
C. Total Exports 60 65 70
D. Total Imports 1020 1115 1215
E. Imports from U.S. 610 670 730
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
2 - Telecommunications Services (TES)
Narrative: The Netherlands offers enormous potential for American
telecommunications service providers. Like many other European
countries the general thrust is to privatize telecommunications services
and make them more competitive. Value-added network services are
already liberalized but voice telephony still falls under the monopoly
of the Dutch telecom operator Royal PTT Netherlands or KPN until 1998.
The partial privatization of KPN began in June 1994 with the first
flotation of 30 percent of the companies shares; a second tranche is
likely to follow in 1996. In mid-1995 a second private nationwide
mobile license was granted. The cable networks are being subjected to a
stream of mergers and acquisitions. One of the larger networks,
Amsterdam KTA, was recently sold to Philips Electronics and U.S. West.
Legislation has been presented to parliament to lay down the legal
conditions for issuing a second, private, nationwide network and several
regional ones to compete with KPN for all services. The intention was
to offer this license to ENERTEL, a consortium of the Netherlands
Railways, cable television operators, and electricity distributors.
ENERTEL choose BellSouth as its partner. This consortium was disbanded
in June 1995. The Netherlands Railways and the energy companies/cable
companies will now pursue this license independently. It is not
inconceivable that two licenses will be granted. Whatever the outcome,
both parties will be looking to the U.S. for operator expertise. In the
first half of 1996, the Dutch transport ministry intends to issue a
license to operate a PCN mobile network for the 1800MhZ wavelength. It
is unclear whether this will be one national license or a series of
regional licenses. Voice services for closed user groups are also
offered in competition. The railways, the public utility companies and
recently the Ministry of Defense have all constructed their own fiber
networks. Voice services still represent the lion's share (75 percent)
of total sales but the largest growth is expected to occur in data-
network services. The best prospects for U.S. companies exist in this
area.
$MILLION
1994 1995 1996
A. Total Sales 7100 7800 8600
B. Sales by Local Firms 6400 7000 7700
C. Exports by Local Firms - - -
D. Sales by Foreign-Imports
Firms 700 800 900
E. Sales by U.S.-owned Firm 600 700 800
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
3 - Electronic Components (ELC)
Narrative: The Dutch market for electronic components increased by 8-10
percent in 1994 and is expected to maintain similar growth rates through
1995 and into 1996. Passive and electromechanical components made up
about 35 percent of the total market. These segments showed limited
growth of about 1-2 percent. Driven by increased use in the expanding
end-user sectors (data- and telecommunications, consumer products,
industrial applications, computing and automotive equipment) demand for
semiconductors increased at an estimated 12-15 percent. Local
production and trade statistics are vague to protect the interest of
Philips, the Netherlands' main producer and end-user of electronic
components. After reorganizing, Philips, which produces professional
and consumer electronics all over the world, posted its highest profits
in years for 1994. To keep up with growth in the world market, the
company will heavily invest in its component and semiconductor division
over the next few years and already announced a joint venture with IBM
to produce semiconductor wafers in Germany. The larger U.S. and
Japanese component manufacturers all have plants located in Europe where
they produce for distribution across the European Union. The Dutch
market continues to be attractive for U.S. exporters. U.S. components,
both active and passive, are popular and well respected, and U.S. export
sales should also benefit from lower dollar exchange rates.
$MILLION
1994 1995 1996
A. Total Market Size 1025 1115 1215
B. Total Local Production 565 615 670
C. Total Exports 450 490 535
D. Total Imports 910 990 1080
E. Imports from U.S. 145 160 175
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
4 - Computer Services (CSV)
Narrative: The changing Dutch market for computer services represents a
major share of approximately 40 percent of the total Dutch information
technology market. Computer services as a whole grew by only 2 or 3
percent in 1994, showing a decrease in the areas of maintenance and
development of custom software. Maintenance and custom development
currently still account for more than one half of the total computer
services market. As these two areas further decline, however, other
segments are rapidly growing and offer excellent prospects for increased
sales. The fastest growing services are in facilities management and
network services, which increased 12-15 percent in 1994. Further growth
opportunities exist in systems integration, consulting and
training/education services. A large variety of some 5,000 firms,
ranging from very small to multinational, offer computer services in the
Netherlands. About 30 percent of the market is in the hands of the top
5, primarily local, services providers. A number of U.S. companies have
successfully established themselves in this market, and are expected to
continue to do well as others enter the Dutch market for the first time.
Demand comes mainly from larger Dutch companies and government
organizations and is forecasted to grow significantly in the next few
years as new, often complex, information systems are implemented.
$MILLION
1994 1995 1996
A. Total Market Size 4050 4150 4275
B. Total Local Sales 2825 2905 2990
C. Total Local Export Sales - - -
D. Tot. Sls. Frgn-owned Firms 1225 1245 1285
E. Sales U.S.-owned Firms 735 745 770
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
5 - Computers and Peripherals (CPT)
Narrative: The total Dutch computer hardware market amounted to US$
3.75 billion in 1994, showing limited growth of 1 percent over 1993.
Trade sources are forecasting growth of 2.5 percent for 1995. Fast
growing opportunities emerged in the hardware sector, with strong
interest in distributed architectures and new PC technology. The PC
market of US$ 1.56 billion grew to approximately 40 percent of the total
hardware market and recorded strong gains in 1994. The PC segment is
expected to continue at a healthy growth rate in 1995 and 1996. By
1996, unit sales are expected to reach 800,000. The PC
business/professional market is maturing and primarily a replacement
market. The consumer and "Small Office Home Office" (SOHO) market offer
enormous potential. Of the 6.4 million Dutch households, 33 percent
reportedly have installed a PC with many of the systems ready for
upgrading or replacement. The market for mainframes and mid-range
systems decreased further with the exception of UNIX-based systems. The
Netherlands is primarily an import market in which U.S. suppliers of all
types of hardware play an important role. Local PC producers include
Dutch Tulip and Taiwan's Acer. Additionally, limited assembly takes
place in the Netherlands using imported components and sub-assemblies.
Increasingly, U.S. manufacturers, particularly in the PC and workstation
segment, supply the Netherlands from local European factories.
Furthermore, several of the larger U.S. suppliers import and re-export
products throughout the European Union from distribution centers in the
Netherlands, taking advantage of its central location, transportation
and communication facilities and value added logistics services. Best
prospects in the hardware sector include desktop and portable PC
systems, PC peripherals and supplies, UNIX-based systems, optical
storage devices and data communication/LAN hardware.
$MILLION
1994 1995 1996
A. Total Market Size 3750 3790 3885
B. Total Local Production 850 860 885
C. Total Exports 2100 2120 2175
D. Total Imports 5000 5050 5175
E. Imports from U.S. 1500 1500 1500
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
6 - Telecommunications Equipment (TEL)
Narrative: Telecommunications equipment only accounts for nine percent
of the total telecommunications market in the Netherlands. Real growth
in sales of telecommunications equipment rose moderately in 1995 as the
sole infrastructure provider, Royal PTT Netherlands (KPN) reaches
finalization of its digital network. This scenario is likely to change
once the license holders of the GSM mobile network, second land network,
and PCN mobile network start building their infrastructures.
Additionally, the cable operators and utilities will also compensate for
the telecom operator's decrease in hardware requirements. This trend is
likely to become evident in 1996 and beyond. U.S. manufacturers are well
represented in the Netherlands. AT&T Network Systems International is
headquartered in the Netherlands and is the main truck switching and
transmission supplier to KPN. Best prospects for U.S. suppliers exist
in mobile communications (GSM and DECT), voice processing systems, SDH
and ATM, ISDN terminal equipment and network equipment.
$MILLION
1994 1995 1996
A. Total Market Size 860 900 900
B. Total Local Production 960 1000 1000
C. Total Exports 660 720 800
D. Total Imports 560 620 700
E. Imports from U.S. 110 120 125
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
7 - Pollution Control Equipment (POL)
Narrative: Awareness of the environment plays a major role in the daily
lives of the Dutch people. This is largely due to the demographic
characteristics and geographical position of the country. The
Netherlands is one of the most densely populated countries in the world,
with intensive industrial and agricultural activities, and the most
livestock per acre in Europe. Together with Germany, the Netherlands
has the most stringent environmental regulations in the European Union.
These regulations have forced companies and private citizens to invest
in products and services designed to prevent, control, and analyze
pollution. Total expenditures on cleaning the environment amount to
approximately $9.5 bn annually. This figure includes local and federal
taxes, services and pollution control equipment. To enable end-users to
comply with these regulations, domestic manufacturers of pollution
control equipment have rapidly adjusted their products, or have designed
new ones. The same applies to the Dutch environmental consulting
service sector. Dutch manufacturers and service providers play a
leading role in the Dutch and other European markets. U.S. suppliers
offering high-tech pollution control equipment will find good market
prospects in the Netherlands and throughout Europe because the demand
for a cleaner environment by both governments and citizens is growing.
U.S. suppliers should also utilize Dutch expertise to introduce products
onto other European markets.
$MILLION
1994 1995 1996
A. Total Market Size 886 941 1013
B. Total Local Production 914 977 1051
C. Total Exports 333 341 366
D. Total Imports 285 305 328
E. Imports from U.S. 51 54 58
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
8 - Travel and Tourism Services (TRA)
Narrative: Given the scale and importance of USA/Netherlands economic
and commercial ties, it is not surprising that business travel remains
strong. A combination of low dollar exchange rates and intensive
competition on transatlantic fares, have contributed to the strong
growth in travel and tourism to the U.S. from the Netherlands. In 1994,
arrivals from the Netherlands increased by 14.5 percent (433,846)
compared with 1993, and arrivals are expected to increase by 9.8 percent
in 1995, to 476,299. The projection for 1996 is 522,9760 arrivals.
European countries including France (22 percent), Germany (12 percent),
and Spain (12 percent) are the most popular destinations for Dutch
travellers. The U.S. is the most popular long-haul destination for the
Dutch with 32 percent of all long-haul trips, leaving Asia, the Far
East, Latin America and others far behind. All market indicators point
to continued, solid growth in the Dutch market for travel and tourism
services.
$MILLION
1994 1995 1996
A. Total Market Size (Sales) 7130 7720 8330
B. Total Local Sales 1128 1188 1251
C. Total Export Sales 2610 2850 3110
D. Total Import Sales 6530 7130 7785
E. U.S. Sales 736 808 887
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
9 - Aircraft and Parts (AIR)
Narrative: The airline industry appears to be slowly pulling out of its
worldwide recession. For the aircraft manufacturer Fokker, which was
taken over by the German company Deutsche Aerospace (DASA) in 1994, this
revival has manifested itself in an increase in the production of its
F70/F100 jetliners and its F50/60 prop jetliners to 42 and 15
respectively for 1995. In 1994 production was reduced to 40 aircraft.
To maintain profitability, Fokker will reduce its workforce by over
1,760 employees over the next two years. The depreciation of the dollar
is making the company consider moving production to a country where
costs are lower and suppliers are paid in dollars. In 1995, Boeing
defeated Fokker in a competitive order to supply the equivalent of 35
F70's to the Swedish airline company SAS. Fokker in turn won the
contract to supply Alitalia with fifteen F70's at the expense of British
Aerospace. Fokker also hopes to win orders from Sabena/Swissair and
replace KLM's fleet of aged Fokker 28's (4) with Fokker 100/70's. The
McDonnell Douglas MD-95, which Fokker anticipates could be its major
future competitor for the F100/F70 and 125 seater jetliner markets, has
still not found a launch customer. In 1994, the Dutch airline company
KLM announced that it would replace its fleet of seven Airbus 310's with
Boeing 767-300 ERs. KLM takes delivery of its first Boeing in 1995.
This export sale of $700 million is not reflected in the figures below
because the aircraft are on lease through International Lease Finance
Corporation. The Netherlands' second airline company, Transavia (80
percent owned by KLM) will decide at the end of 1995 whether to buy
Boeings (between 6-10) for its fleet renewal. This could represent an
export order for Boeing of $240-$400. Delivery is expected before the
year 2000.
$MILLION
1994 1995 1996
A. Total Market Size 950 1356 1400
B. Total Local Production 1360 1938 2000
C. Total Exports 1360 1938 2000
D. Total Imports 950 1356 1400
E. Imports from U.S. 380 540 560
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
10 - Building Products (BLD)
Narrative: The Dutch building industry at this moment is marked by an
increased activity in the residential buildings sector. Due to shortage
of housing in the Netherlands, annually some 90,000 new homes are built
with a total value of $ 7.6 Billion. The average age of homes in the
netherlands is 40 years. Rather than demolishing the older buildings,
there is a growing trend towards renovating these houses. Annual
expenditures in this area are $ 1.5 Billion. The construction of new
utility buildings accounts for $ 5.9 Billion annually.
Due to the big difference between U.S. and Dutch building techniques,
best prospects for general U.S. building products can best be determined
on a case by case basis. However, interesting possibilities for U.S.
manufacturers are seen in the DIY sub-sector, which has been one of the
best prospects in the building sector for years, and will continue to be
in the medium term.
$MILLION
1994 1995 1996
A. Total Market Size 9450 11782 12456
B. Total Local Production 7087 8836 9342
C. Total Exports 2362 2945 3113
D. Total Imports 4725 5891 6228
E. Imports from U.S. 756 942 996
Exchange Rate US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
11 - Automotive Parts & Service Equipment (APS)
Narrative: The Netherlands has one of the highest passenger car
densities in Europe. The total number of registered cars is 5.5
million. With a population of 15 million, this equals 2.7 automobiles
per inhabitant. Annually some 400,000 cars are sold with a total value
of $ 8.4 billion. Only a very small percentage of these cars are
manufactured in the U.S.
Due to the increased application of high-tech in cars, the Dutch are
using more complex and sophisticated garage and workshop tools and
equipment. Best prospect sub-sectors are garage testing lanes and
electronic testing and diagnostics equipment. Also the Netherlands has
a growing environmental concern, which causes a need for new and
innovative environment-friendly products and technologies.
There is also a growing Dutch trend towards car-customizing.
Opportunities are seen for U.S. manufacturers of high quality and price
competitive audio equipment, alloy wheels, wooden trimmings, seat covers
and other interior and exterior accessories for European cars. The
increased value of cars and higher theft rates also create demand for a
wide range of anti-theft products.
$MILLION
1994 1995 1996
A. Total Market Size 3090 3780 3904
B. Total Local Production 1850 2260 2337
C. Total Exports 1440 1760 1819
D. Total Imports 2680 3280 3386
E. Imports from U.S. 332 410 419
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
12 - Medical Equipment and Supplies (MED)
Narrative: The market for medical equipment and supplies in the
Netherlands is expected to follow trends in the rest of the world, which
indicate potential growth of between 6 and 8 percent over the next 2
years. The Netherlands' aging population and currently low per capita
consumption of medical devices indicates increasing demand for high
technology medical products. This sector is interesting for U.S.
suppliers because the market is relatively accessible and regulations
pertaining to medical devices are far less stringent than those in the
U.S. European legislation makes regulations and clinical trials
procedures more streamlined throughout the Union. Approvals typically
take three to six months. The U.S. makes the largest contribution to
Dutch imports of medical equipment and supplies, accounting for about 25
percent of total imports. Germany accounts for a similar percentage and
is our biggest competitor, with Japan making inroads into the sector.
Best product subsectors are medical/surgical instruments, disposables,
and imaging products.
$MILLION
1994 1995 1996
A. Total Market Size 1000 1100 1250
B. Total Local Production 1700 1675 1700
C. Total Exports 2100 2100 2100
D. Total Imports 1400 1525 1650
E. Imports from U.S. 350 380 450
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
13 - Laboratory and Scientific Instrumentation (LAB)
Narrative: The laboratory market has staged a modest comeback in 1995.
The industry performed poorly in 1993 with sales falling by 0.5
percent. This decline came to a halt in 1994. Year end sales increased
by 0.5 percent compared to 1993. This recovery continued in 1995. The
Dutch Instrumentation Industry Association published sales figures for
its members that represent 90 percent of the industry indicate that in
the first quarter of 1995 sales rose by 9.1 percent compared to the
first quarter of 1994. The industry is optimistic that this trend will
continue into 1996. The comeback is partly the result of the recovery
in the chemical industry and the continual growth in the pharmaceutical
industry, the main customers for laboratory instrument makers and
suppliers. Over 80 percent of domestic demand is met by imports and the
U.S. has over 30 percent of this import market with Germany second with
over 20 percent. The market is very receptive to U.S. products and the
depreciation of the dollar has increased this receptivity. All the
major U.S. players have facilities in the Netherlands and the general
consensus is that innovations in the laboratory industry in the U.S.
occur several years before those in Europe. On the product distribution
side, the industry is characterized by a large number (over 240) of
small to medium size suppliers with low profit margins. The most
promising sub-sectors are instruments and apparatus for biotechnology,
laboratory automation (so-called LIMS), spectrophotometers,
instrumentation for controlling the environment in laboratories and in
the chemical industry, robotics and innovative spin-offs from aerospace
research. As in other markets in Europe, constraints imposed by quality
control to implement ISO 9000 certification and stringent pollution
control regulations are important influencing factors.
$MILLION
1994 1995 1996
A. Total Market Size 700 725 745
B. Total Local Production 100 95 95
C. Total Exports 95 100 105
D. Total Imports 695 730 755
E. Imports from U.S. 205 215 225
Exchange Rate: US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
14 - Security Equipment (SEC)
Narrative: In 1994, total expenditures on security equipment and
services were approximately $1.2 Billion. Of this amount, about $890
million was spent on surveillance, guard, and miscellaneous security
services, and on special constructions within buildings. An additional
$439 million was spent on security equipment and systems. Imports
account for approximately 90 percent of the total Dutch market in this
sector. After Germany and the U.K., the U.S. is ranked third as a
supplier of security equipment to the Netherlands. As criminals become
more professional, more demands will be made on security equipment which
needs to be reliable and resistant to eavesdropping and sabotage. Law
enforcement agencies require high-tech equipment to stay ahead of
criminals. This subsector is a fast growing market. Best prospects
include computer controlled burglar alarm systems, access control and
identification equipment, and shoplifting detectors.
$MILLION
1994 1995 1996
A. Total Market Size 439 484 532
B. Total Local Production 43 46 49
C. Total Exports 37 38 39
D. Total Imports 433 476 522
E. Imports from U.S. 44 48 52
Exchange Rate US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
15 - Household Consumer Goods (HCG)
Narrative: The following market trends are expected to influence
consumer demand: - demand for high-quality products is increasing. This
trend is a positive one for American manufacturers, whose products
compete well with higher-end, European products. Housewares are
becoming more sensitive to fashion and trends and there is a definite
growth in the 'cocooning' trend whereby consumers are spending more of
their disposable income on improving the interiors of their homes.
Exports of U.S. housewares to the Netherlands remain well behind
competition from Europe and the Far East although exposure to American
media stimulates demand for American products. U.S. products enjoy the
reputation of being innovative and of a high quality. The low U.S.
dollar exchange rate adds to the potential for U.S. exports.
$MILLION
1994 1995 1996
A. Total Market Size 4780 4850 4900
B. Total Local Production 780 720 720
C. Total Exports 500 500 500
D. Total Imports 4500 4600 4600
E. Imports from U.S. 275 300 320
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
16 - Apparel (APP)
Narrative: U.S. apparel exporters are likely to face increased
competition with imports from East Asia in the Dutch market. On the
positive side, there is some evidence that production costs may no
longer be the main determinant of competitiveness in this market.
Services, including management costs, storage, quality control and
marketing, are increasingly seen as key factors in supply strategies in
this sector. American-made apparel remains in demand. Dutch consumers
follow American fashion trends closely, especially trends in branded
apparel. A new branded product that is selling well in the U.S., will
be in demand in the Netherlands within six months.
Most promising subsector: Sports and Leisure Wear
Market size (1995 est.): $1,950 million
$MILLION
1994 1995 1996
A. Total Market Size 3320 3320 3340
B. Total Local Production 720 720 700
C. Total Exports 1900 1900 2100
D. Total Imports 4500 4500 4600
E. Imports from U.S. 18 25 35
Exchange Rate: US$1 = Dfl. 1.60
The above statistics are unofficial estimates.
17 - Electrical Power Systems (ELP)
Narrative: In the Netherlands, power consumption grew from 61 billion
KWH in 1984, to 84 KWH in 1994. This represents an annual average
growth of 4 percent. Decentralized power generation through co-
generation is growing explosively and is expected to rise to a total
capacity level of 8000 MW by the year 2000. By then, co-generation will
satisfy about half of total consumption. At present, it supplies 30
percent of total demand. To avoid a possible overcapacity, the large
power producers and distributors have tried to limit the uncontrolled
growth of co-generation. The association of Dutch electricity producers
and the industry have recently agreed to reduce the total planned co-
generation capacity expansion by 480 MW of primarily small co-generation
projects. Thirty other large co-generation projects related to industry
and town heating projects, with a capacity of 2,200 MW, will be executed
as planned. The public electricity producers have decided to put a
moratorium on the construction of new electricity plants. They do not
foresee any major investments in the coming years.
Natural gas continues to be the main energy source, whereas the share of
oil remains below one percent. Coal gasification power generation will
cover up to one third of the generating capacity. Nuclear energy is
expected to continue to play a minimal role.
Domestic firms are the major suppliers of electricity generating
equipment in the Netherlands. One major domestic supplier, however, is
a subsidiary of a large Swiss/Swedish conglomerate.
The Dutch market has been largely closed to U.S. suppliers, but the
market opening provisions of the European Union public utilities
directive, US-EU utility directive negotiations, and some Dutch moves to
improve their competition policy in the face of increasing foreign
pressure may open this difficult market somewhat in the coming years.
$MILLION
1994 1995 1996
A. Total Market Size 819 812 800
B. Total Local Production 792 786 780
C. Total Exports 61 61 65
D. Total Imports 88 87 85
E. Imports from U.S. 6 5 5
Exchange Rate US$1 = Dfl. 1.90 1.60 1.60
The above statistics are unofficial estimates.
Best Prospects for Agricultural Products
Fresh Grapefruit
Narrative: U.S. exports of fresh grapefruit can be expected to continue
to rise, given an increase in exportable U.S. supplies. In 1992 and
1993, exportable supplies of U.S. grapefruits were sharply reduced by a
hard freeze that destroyed much of the crop. While 1994 imports
increased again it can be expected that 1995 figures, at least in the
first half will be down. Heavy rains in Florida in the period
November/December had a detrimental effect on the quality of the crop.
Florida produced a relative large quantity of large size fruit whereas
the Dutch market demand is for the smaller sizes. Dutch consumers have
always been willing to pay the higher prices for quality U.S. pink
grapefruit.
Metric Tons
1994 1995 1996
A. Total Market Size 29931 30000 33000
B. Local Production - - -
C. Total Exports 64070 50000 53000
D. Total Imports 94001 80000 86000
E. Imports from U.S. 37939 30000 32500
The above statistics are unofficial estimates.
Tobacco
Narrative: Due to increasing cigarette production and a substantial
increase of cigar exports, Dutch tobacco consumption held up fairly well
in 1994. The U.S. market share, as a percentage of total consumption,
was 23 percent, slightly up from 1993. For 1995 we expect a growth in
U.S. market share to 25 percent due to increasing production capacity.
Although there is an increasing competition from countries like
Zimbabwe, U.S. quality tobaccos will be most important to the Dutch
cigarette industry.
Metric Tons
1994 1995 1996
A. Market Size 87775 86500 87000
B. Local Production - - -
C. Total Exports 6109 6200 6700
D. Total Imports 86546 89000 93000
E. Imports from U.S. 21217 22000 23500
The above statistics are unofficial estimates.
Wine
Narrative: U.S. exports of wine have expanded rapidly in the past few
years, more than tripling since 1989. The expansion can be expected to
continue as U.S. wine exporters have been able to establish extensive
distribution, in both restaurants and retail outlets. As the awareness
of American wines in the Dutch market is still very low, a continuous
generic promotion for U.S. wines is a necessity to further develop this
market. The 1995 imports of U.S. wine in the Netherlands will be
positively influenced by a large scale promotion of American wines with
the largest wine and liquor retail chain in the country. Unlike other
EU member states, wine consumption in the Netherlands continues to grow.
HectoLiters
1994 1995 1996
A. Total Market Size 2202621 2250000 2287000
B. Local Production - - -
C. Total Exports 144134 150000 151000
D. Total Imports 2346755 2400000 2438000
E. Imports from U.S. 8634 12500 15000
The above statistics are unofficial estimates.
Pecans
Narrative: In 1995 pecan imports from the United States will drop off
because of a low crop and high prices. It is very likely that the
1995/96 market will increase again as new crop prospects are good. The
U.S. pecan industry is active with generic promotion in the Dutch market
and results over the past five years have been very satisfying. The
pecan is a relatively new nut in the market and there are plenty of
opportunities for the U.S. pecan industry to further develop this
market.
Metric Tons
1994 1995 1996
A. Total Market Size 511 400 443
B. Local Production - - -
C. Total Exports 119 50 57
D. Total Imports 630 450 500
E. Imports from U.S. 629 440 470
The above statistics are unofficial estimates.
Beef & Veal
Narrative: The GATT agreement opens new export perspectives for the
U.S. meat industry. Most likely as of 1996, U.S. beef can no longer be
refused entry into the EU because of the hormone issue. The high
quality, tender U.S. beef is much in demand specially with the hotel and
restaurant industry in Western Europe. Although, even more important,
it is likely that the beef variety meat trade from the U.S. to the EU
will be resumed.
Metric Tons
1994 1995 1996
A. Total Market Size 300000 285000 325000
B. Local Production 600000 575000 570000
C. Total Exports 403558 400000 405000
D. Total Imports 140000 130000 135000
E. Imports from U.S 1345 1500 1700
The above statistics are unofficial estimates.
Honey
Narrative: Over the years, the United States has been a quality
supplier of honey to the Netherlands. Relative small quantities of U.S.
honey were imported mostly to blend with and bring flavor to other
origin honey. The Dutch market for U.S. honey might be further
developed if the U.S. honey industry could increase the awareness of the
high quality of the U.S. product with the Dutch honey processors.
Metric Tons
1994 1995 1996
A. Total Market Size 7972 7957 7979
B. Local Production 62 57 59
C. Total Exports 544 600 598
D. Total Imports 8454 8500 8590
E. Imports from U.S. 17 150 162
The above statistics are unofficial estimates.
Dried Prunes
Narrative: The United States supplies a very high quality dried prune
to the Netherlands. Trade is hampered by competition from the French
dried prune industry which is favored by EU protection. Dutch traders
however are very keen on the quality of the U.S. product and are willing
to pay a premium for it.
Metric Tons
1994 1995 1996
A. Total Market Size 2539 2500 2500
B. Local Production - - -
C. Total Exports 626 700 695
D. Total Imports 3165 3200 3300
E. Imports from U.S. 516 700 750
The above statistics are unofficial estimates.
Significant Investment Opportunities
The most significant investment projects planned are:
* A new all-freight rail line between Rotterdam and Germany (The
"Betuwelijn")
* A high speed passenger rail line to Germany and France using the
French TGV
* A project to upgrade and expand the Port of Rotterdam ("Havenplan
2010")
* Amsterdam Schiphol International Airport "Masterplan 2003".
* Amsterdam Cruise Ship Port
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import
Taxes
Tariffs
The Netherlands applies the EU tariffs (customs duties), which are based
on the international Harmonized System (HS) of product classification.
Duty rates on manufactured goods from the United States generally range
from 5 to 8 percent and are usually based on the c.i.f. value of the
goods at the port of entry. The c.i.f. value is the price of the goods
(usually the sales price) plus packing costs, insurance, and freight
charges to the port of entry. Most raw materials enter duty free or at
low rates while agricultural products face higher rates and special
levies. For information on EU duty rates levied on agricultural
products, contact the U.S. Department of Agriculture, Phone: (202) 720
1322. For information on EU duty rates of manufactured and industrial
products, contact the U.S. Department of Commerce, International Trade
Administration's Office of European Union Affairs, Phone: (202) 482
5276.
Non-Tariff Barriers
Relatively few trade complaints are registered by American firms against
Dutch firms. The Dutch tendency to support a level playing field in
trade matters and their depth of experience in trade positions them as
genuine "neutral" traders of Europe.
American companies locating in the Netherlands, however, will come up
against a complex business culture, in which companies, trade unions,
government bodies and industry associations engage in constant and close
consultations. This comes, in part, from the traditional Dutch emphasis
on achieving consensus and avoiding conflict in this small and densely
populated country.
There is also a growing trend, particularly in larger government
procurements, to "buy European" if not Dutch. This has been especially
true in recent defense procurements where there has been true Dutch or
European competition. The Dutch consider themselves to be good
Europeans and, from a practical point of view, they see political
advantages in buying European, especially when all else is relatively
equal in a bid competition. In this regard, local representation is
almost essential for American companies hoping to have a real chance to
win major government contracts. A joint venture with a Dutch or
European partner may, in some cases, improve the U.S. company's
competitive position. Companies looking to compete on Dutch government
procurements should contact the Commercial section at the Embassy early
on in the process for guidance, particularly if there are political or
"level playing field" issues which might arise.
Import Taxes
Excise taxes are levied on a small number of products such as soft
drinks, wine, beer, spirits, tobacco, sugar, and petroleum products.
For imports, the excise tax is paid by the importer and is in addition
to any customs duty or VAT. The EU plans to harmonize excise taxes and
create the single internal market.
Customs Valuation
The Dutch, like the Americans, use the Harmonized System which is a
system designed to classify goods in international trade for customs
purposes and for developing trade statistics. It is arranged into 99
chapters. The sections are established according to categories such as
agriculture, chemicals, chief material of the product, or type of
manufacturing industry. The sections and chapters start with
agricultural and primary products in the initial chapters, followed by
products that are more processed and technically more complex.
The HS classification number consists of a minimum of six digits, which
are common to all countries using the Harmonized System. Additional
digits can be used to meet each nation's individual statistical
requirements and give greater detail as needed.
If a HS number of the product being shipped is requested by the Dutch,
importer, this information may be obtained from your closest Commercial
Service district office or from the Office of European Union Affairs,
Phone: (202) 482 5276. The HS number is usually needed by the Dutch
importer to determine the duties levied at time of importation.
Prior to signing a long-term contract or sending a shipment of
considerable value, it may be prudent for a U.S. exporter to first
obtain an official ruling on the customs classification, duty rate, and
taxes. Such requests should be sent to: Ministry of Finance, Director
of Customs, P.O. Box 20201, 2500 EE The Hague.
The request should describe the product, the material it is made from,
and other details needed by customs authorities to classify the product
correctly. While customs will not provide a binding decision, the
advance ruling usually will be accepted if the goods are found to
correspond exactly to the sample of description provided.
Import Licenses
Only a small number of goods of U.S. origin require import licenses,
mostly agricultural and food items. Other items subject to import
licensing requirements include coal and lignite fuel, a few specified
base metal products, various apparel and textile products, and
controlled items such as arms and munitions. Licenses are generally
rapidly granted for goods of U.S. origin.
Licenses are not transferable. They may be used to cover several
shipments within the total quantity authorized. In general, the goods
involved are indicated on the license by the Harmonized System
classification number and the corresponding wording of the tariff
position.
Export Controls
For the purpose of national security, foreign policy, or short supply
considerations, the United States controls the export of goods and
technology with two broad categories of export licenses - general and
validated. The vast majority of U.S. exports are shipped abroad under
general licenses with no formal application required.
For assistance in determining what type of license is needed and to
initiate the processing of an application, contact your local Department
of Commerce district office or the Bureau of Export Administration,
Office of Export Assistance, Room H-1099D, U.S. Department of Commerce,
Washington, DC 20230, Phone: (202) 482 4811.
Import/Export Documentation
Merchandise may be examined by the importer before customs clearance for
the purpose of making an inventory. Goods cannot clear customs without
shipping documents and payment of any customs duty, applicable value
added taxes, and any excise taxes. These formalities must be undertaken
by the importer at the time of clearing customs. Import licenses, if
required, should be presented by the importer within the period for
which they were issued.
Shipments to the Netherlands require one copy each of the bill of lading
(or air waybill) and the commercial invoice for customs clearance.
There are no consular requirements, but certificates of origin may be
required as set out below.
U.S. Customs also requires two copies of the U.S. Shipper's Export
Declaration (U.S. Department of Commerce Form 7525V) for goods valued at
$1,500 or more. A declaration form must be completed for all shipments
by regular mail or parcel post valued at $500 or more. The form must
include the harmonized commodity number of the exported product as well
as the weight stated in metric units. When sending goods through the
mail, the exporter should inquire at the post office as to the proper
documentation needed for mail shipments. For additional information or
assistance on export documentation, readers should contact a local
Commercial Service district office.
Although no special format is prescribed for the commercial invoice, it
is advisable to include the following: date and place of shipment; name
(firm's name) and address of the seller and buyer; method of shipment;
number, markings of the packages, and their numerical order; description
of the goods using the usual commercial description according to kind,
quality, grade, and the weight (gross and net, in metric units), along
with any factors increasing or decreasing the value; agreed price of
goods; unit cost; total cost f.o.b. factory plus shipping; insurance
charges; delivery and payment terms; and the signature of a responsible
official of the shipper's firm. Bills of lading should bear the name of
the party to be notified. The consignee needs the original bill of
lading to take possession of the goods.
Certificates of origin are required for a small number of goods such as
textile products. The need for a certificate of origin should be
ascertained directly from the importer or from the appropriate customs
authority. Letter-of-credit terms may stipulate that a certificate of
origin be provided. Customs authorities accept certificates of origin
issued by authorized local U.S. chambers of commerce or boards of trade.
Temporary Entry
Carnets
As a result of various customs agreements, simplified procedures are
available to U.S. business and professional people for the temporary
importation of commercial samples and professional equipment. A carnet
is a customs document that facilitates customs clearance for temporary
imports of samples or equipment. With the carnet, goods may be imported
without the payment of duty, tax, or additional security. The carnet
also usually saves
time since formalities are all arranged before leaving the United
States.
A carnet is usually valid for 1 year from the date of issuance. The
cost ranges from $120 to $250. A bond or cash deposit of 40 percent of
the value of the goods covered by the carnet is also required. This
will be forfeited in the event the products are not reexported and
duties and taxes are not paid.
Carnets are sold in the United States by the U.S. Council for
International Business at the following locations: 1212 Avenue of the
Americas, New York, NY 10036, Phone: (212) 354 4480; 3345 Wilshire
Boulevard, Los Angeles, CA 90010, Phone: (213) 386 0767; and 1930
Thoreau Drive, #101, Schaumburg, IL 60173.
Transit
Goods may clear customs with an EU transit procedure that provides for
the issuance of a single transit document under which the goods may be
easily shipped across frontiers of the EU member states. These transit
documents are completed by the importer for a freight forwarder engaged
for the purpose. The transit document provides the basis for a single,
comprehensive
procedure covering the goods within the Union. Since this is an EU
Procedure, the European importer, customs house broker, freight
forwarder, or shipper must prepare these documents at point of entry.
Labeling, Marking Requirements
With only minor exceptions, there are no general requirements for
marking imported goods with the country of origin. Requirements for
specific products should be obtained from the importer. The import,
export, or transit of non-Dutch goods having markings which would lead
one to believe that the goods are of Dutch manufacture or origin is
prohibited.
There are no regulations for the marking of shipping packages. Good
shipping practice dictates that packages should bear the consignee's
mark and be numbered unless the shipment is such that the content of the
packages can be readily identified without numbers.
Hallmarking of gold and silver articles is required before they can be
offered for sale. Only small tolerances are allowable for manufacturing
errors. The hallmarking may done by a Netherlands hallmarking office
after importation.
Imports of certain commodities, including numerous foodstuffs, are
subject to special regulations regarding the manner in which they must
be labeled to show manufacturer, composition, content (in metric units),
and country of origin. In view of the complexity of these regulations
and changing requirements, information should be requested from the
importer prior to shipment. When the services of an importer are not
available, information can be obtained directly from the appropriate
Dutch authority listed at the end of this publication. For agricultural
and food products, U.S. exporters should contact the U.S. Department of
Agriculture for marketing and labeling information and exporting
assistance, Phone: (202) 720 9408.
As a member of the EU, the Netherlands applies the product standards and
certification approval process developed by the Community. The
Netherlands is required by the 1958 Treaty of Rome to incorporate in its
national laws the EU directives.
With the development of a single product standard, U.S. exporters may
find that it is easier to comply with one EU-wide standard rather than
having to meet several individual national standards when exporting to
Europe.
Prohibited Imports
Certain imports into the Netherlands and the EU are prohibited or
require an import license. These products fall under the categories of
strategic goods or environmentally unfriendly items. U.S. firms
exporting to the Netherlands or the rest of the EU can call a customs
information hotline for a ruling. From the U.S., Phone: (31) 45 742700.
Standards
U.S. firms exporting to Europe are still confronted with both national
and EU product standards. Further, these regulations occasionally
change to meet new technology and more stringent demands.
Key product areas are being regulated at the Union level for conformance
to mandatory requirements to protect the health and safety of consumers,
as well as the environment. To indicate this conformance to the
mandatory requirements, a CE mark must be placed on all regulated
products by the manufacturer or a representative before they can be sold
on the EU market. The applicable product testing and certification
requirements for individual product categories are specified in the
various EU directives. The CE mark relates only to the mandatory
health, safety, and environmental requirements established by the EU; it
does not indicate conformity to European product standards. Thus,
national marks of conformity with product standards remain compatible
with the CE mark and both may be applied to the product. It should be
noted, however, that the CE mark does replace all national safety marks
for the regulated products.
The EU Commission has released The Global Approach to Certification and
Testing, a document that recommended harmonized testing and
certification procedures within the Union. These proposals included
establishing a "modular" system for demonstrating product compliance.
Under this system, methods of demonstrating product conformity range
from having the manufacturer self-certify the product to having a
private testing company type-approve the product and provide market
surveillance, depending on the probability and type of product risk. As
standards and certification requirements are important in international
trade, it is expected that more U.S. testing laboratories will be able
to certify that products comply with EU requirements.
Exporters can stay fully informed on the latest EU technical standards
activities by contacting the National Institute of Standards and
Technology (NIST). A part of the U.S. Department of Commerce, NIST
offers industry an in-depth reference system on EU standards information
gathered from the two European standards bodies tasked to write the EU
1992 norms--the European Committee for Standards (CEN) and the European
Committee for Electrotechnical Standardization (CENELEC).
NIST also can provide updated information from the EU which will
elaborate on directives and provide assistance in identifying EU and
member state standards and regulations. For more information, contact
NIST, Phone: (301) 975 4038. To obtain copies of directives,
amendments, and published updates, or to obtain a complete list of
directives that could affect product sales to the Netherlands or another
EU country, call the ITA Office of European Union Affairs, Phone: (202)
482 5276. Copies are available at a nominal fee.
Other valuable sources of information with regard to foreign standards
include the American National Standards Institute, 1430 Broadway, New
York, NY 10018, Phone: (212) 354 3300, the Department of Commerce's
National Technical Information Service, Springfield, VA 22161, Phone:
(703) 557 4733, as well as various trade associations that follow
international activities for their members.
Free Trade Zones/Warehouses
There are no free trade zones or free ports in the Netherlands in the
sense of territorial enclaves where commodities can be processed or
reprocessed tax-free (see part E the Investment Climate Section of this
report). However, in a very real sense, the entire country is a free
trade zone. American firms find that the numerous private and
commercial warehouses located throughout the nation perform much the
same function and with low costs. Bonded warehouse facilities of any
size can be arranged with ease. Shippers can then maintain inventory
without the payment of customs and value-added tax until the goods are
needed for use and are then imported. Products also may be transshipped
to other countries without technically entering the Dutch customs area.
With an international distribution and warehouse center serving Western
Europe, products can arrive at the customer's site quicker and with less
complaints.
The advantage of the free trade zone to American firms is having a
European base of supply to assure customers prompt delivery and service,
and being able to maintain inventory at a low cost.
Adequate warehousing facilities are available in all major Dutch cities.
In addition to the port areas, Dutch facilities in the east, such as
Maastricht, Tilburg, Eindhoven, Nijmegen, and Enschede, provide storage
facilities and distribution services.
The Holland International Distribution Council is a organization
composed of established Dutch transportation and warehousing firms that
can help U.S. firms resolve transportation problems, locate facilities,
and provide technical assistance on distribution networks. The council
is composed of firms involved in international shipping that support
promoting the Netherlands as a distribution center and gateway to
Europe. For more details contact: Holland International Distribution
Council, P.O. Box 85599, 2508 CG The Hague, the Netherlands, Phone: (31)
70 346 7272; Fax: (31) 70 360 3698.
Special Import Provisions
Value-Added Tax
The value-added tax, most frequently called by its acronym VAT, is
charged on the sale of goods and services within the country. Unlike
the customs duty, which is the same for all EU member countries, the VAT
is established by the tax authorities of each country and differs from
country to country. At each stage of the manufacturing and distribution
chain, the seller adds the appropriate amount of VAT (tax on the amount
of value that the seller added to the product, plus the amount of VAT
passed on to the seller by the supplier) to the sales price. The tax is
always quoted separately on the invoice. The firm periodically
subtracts the VAT paid on its purchases of goods and services from the
VAT collected on sales and remits the balance to the government. This
process repeats itself at each stage until the product is sold to the
final consumer, who bears the full burden of the tax. Below is a
summary of the Dutch VAT rates.
* exempted rate applies to exports.
* 6 percent rate applies to necessities of life such as food,
medicines,
and transportation.
* 17.5 percent rate is the general or standard rate and applies to
most
goods.
For imports into the Netherlands, the VAT is levied at the same rate as
for domestic products or transactions. The base on which the VAT is
charged on imports is the c.i.f. value at the port of entry, plus any
duty, excise taxes, levies, or other charges (excluding the VAT)
collected by customs at the time of importation. This total represents
the transaction value of the
import when it clears customs.
The importer is liable for payment of customs duties, VAT, and any other
charges at the time of clearing the goods through customs. Exports from
the Netherlands are exempt from VAT since they are not consumed in the
country, but will be subject to any tax imposed in the country of
destination. Temporary imports that will be reexported are not subject
to the VAT. The importer may have to post a temporary bond for the
amount of customs duty and taxes as security which will be canceled when
the goods are taken out of the country.
The EU is seeking to harmonize the range of VAT rates among the 15 EU
member nations. The EU Council has adopted guidelines for converging
the VAT rates over an extended transitional period such as seeking to
establish a minimum VAT rate for most products, lifting border tax
controls, and defining which products will be allowed an exempted or
zero VAT rate. Each country will still retain the collection and
enforcement authority that currently exists.
Membership in Free Trade Arrangements
The Netherlands has been a member of the European Union (EU) since its
inception in 1958. The other EU members are Belgium, Denmark, France,
Germany, Greece, Italy, Ireland, Luxembourg, Portugal, Spain, and the
United Kingdom. Sweden, Finland, and Austria joined in January 1995.
Norway voted against joining the Union.
The EU forms a customs union having free trade among the member states,
but levies a common tariff on imports coming from non-EC countries such
as the United States, Japan, and Canada. The EC also has a common
agricultural policy, joint transportation policy, and free movement of
goods and capital within the member states. Other aspects of commercial
activity are being harmonized as part of the single market program.
Under agreements reached between the EU and the members of the European
Free Trade Association (EFTA) - duty-free trade for industrial products
has been achieved among all 18 countries. Taxes, such as the value-
added tax (VAT) and excise taxes, are levied in the country of final
destination. Currently, VAT rates differ among the various countries.
See the "Value-Added Tax" section for the Dutch rates.
In addition to the EFTA countries, the Netherlands and the other EC
nations extend preferential tariff treatment to certain other countries
and territories with historical ties to the EU and to less developed
countries in Africa, the Caribbean, and the Pacific regions. The
granting of reduced tariffs to developing countries is under the
Generalized System of Preferences (GSP).
CHAPTER VII. INVESTMENT CLIMATE
Openness to Foreign Investment
The Dutch Government maintains liberal policies toward foreign direct
investment, and adheres to the OECD investment codes, with exceptions
for its export credit and investment guarantee programs. Otherwise,
with the exception of public and private monopolies (military
production, aviation, shipping, distribution of electricity, gas and
water, railways and radio and tv broadcasting), foreign firms are able
to invest in any sector and entitled under the law to equal treatment
with domestic firms. The Dutch government has allowed foreign
participation in the telecommunication sector, but notes that the
infrastructure for the planned second national network will remain
Dutch-owned. Provision of government incentives, rules of
incorporation, access to the capital market, etc., are all non-
discriminatory, the Dutch actively recruit foreign investment through
the Netherlands Foreign Investment Agency (NFIA).
The Government and EU give certain regional preferences in the form of
grants for investment in economically depressed regions of the country.
These incentives are available to foreign investors on the same terms as
to Dutch investors. The areas currently designated for preference are
in the provinces of Friesland, Groningen and Drenthe and to some extent
Overijssel and Limburg. There are no regional restrictions to EU
subsidies. There are no apparent foreign investment screening
mechanisms, and 100 percent foreign ownership is permitted in those
sectors open to foreign private investment. The rules on acquisition,
mergers, takeovers, and reinvestments are nondiscriminatory. All firms
must conform to certain rules of conduct on mergers and takeovers.
These are administered by the Socio-Economic Council (SER), an official
advisory body composed of representatives of business, labor, and
government. The rules are intended to protect the interests of
shareholders and employees. They include requirements for timely
announcement of merger and takeover plans and for discussions with trade
unions. Despite the de jure open policy, elaborate protective measures
against hostile takeovers by Dutch companies may de facto block
acquisitions or takeovers by Dutch and foreign investors. Since 1993,
anti-takeover measures have liberalized significantly. Draft
legislation to further curtail corporate protective measures is under
preparation.
The Netherlands maintains no preferential or discriminatory export or
import policies with the exception of those which result from its
membership in the European Union. The Dutch also abide by all
internationally agreed strategic trade controls.
Conversion and Transfer Policies
There are no rules on the conversion or repatriation of capital and
earnings, including profits, interest, royalties, and technical know-how
fees, with the exception of the nominal exchange license requirement for
non-resident firms.
Expropriation and Compensation
The Embassy is unaware of any recent cases involving expropriation of
foreign-owned property. Such expropriation would only take place for
public purposes and we have no reason to believe it would be undertaken
in a discriminatory manner or in violation of established principles of
international law.
Dispute Settlement
We are not aware of any investment dispute involving the Dutch
government and U.S. or other foreign companies. The Netherlands is a
signatory to the International Convention On Investment Disputes and a
member of the International Center for the Settlement of Investment
Disputes (ICSID). Although the central government has no rules
regarding withdrawals of investment, occasionally trade unions go to
court over company closures. This has occurred in the case of both
domestic and foreign-owned firms.
Performance Requirements/ Incentives
There are no trade related investment performance requirements in the
Netherlands. General requirements to qualify for investment subsidy
schemes apply equally to domestic and foreign investors.
There are no requirements for employment of local capital or managerial
personnel. In practice almost all chief executives of major U.S.
subsidiaries in the Netherlands are Dutch, but this results from freely
taken corporate decisions. In the case of staff personnel, moreover,
Dutch nationals must be employed unless firms can demonstrate that the
job in question cannot be performed by a Dutch national. This burden is
eased by an existing provision that prior employment with the firm of at
least two and a half years amounts to a presumption of unique
qualifications for the job.
Investment incentives are a well-publicized tool of Dutch economic
policy and are used to facilitate economic restructuring and to promote
energy conservation, regional development, environmental protection, and
other national socio-economic goals. Subsidies and incentives are
available to foreign and domestic firms alike and are spelled out in
detailed regulations. Subsidies are in the form of tax credits which
are usually disbursed through corporate tax rebates, or direct cash
payments in the event of no tax liability.
The Investment Premium Regulation (IPR), the only major investment
incentive still available to investors, seeks to encourage investments
in parts of the country with a high unemployment rate by giving an
investment subsidy for new investments (industrial buildings and fixed
assets). The IPR currently applies to the economically depressed
provinces of Groningen, Friesland and Drente in the North, and to part
of the province of Limburg in the South. The IPR subsidy applies to
investments, of which at least 25 percent is investment of the
investor's own capital. The growing number of tax incentives offered to
investors in other EU countries has prompted the government to look into
the possibilities to expand existing tax instruments to help improve the
Dutch tax climate.
Right to Private Ownership and Establishment Protection of
Property
Rights
There are full rights of private ownership and establishment of business
enterprises in the Netherlands, except in the monopoly sectors as noted
in the introduction. Licenses are granted on the basis of competitive
equality.
Protection of Property Rights: The Dutch legal system provides adequate
protection, and facilitates acquisition and disposition of all property
rights including intellectual property. Intellectual property
legislation has been amended to reflect the EU software directive. The
Netherlands belongs to the World Intellectual Property Organization
(WIPO), it is a signatory of the Paris Convention for the Protection of
Industrial Property, and conforms to accepted international practices
for protection of technology and trademarks. Patents for foreign
inventions are granted retroactively to the date of original filing in
the home country, provided the application is made through a Dutch
patent lawyer within one year of the original filing date. Patents are
valid for 20 years.
Legal procedures exist for compulsory licensing if the patent is
determined to be inadequately used after a period of three years, but
these procedures have rarely been invoked. Since the Netherlands and
the U.S. are both parties to the Patent Cooperation Treaty (PCT) of
1970, patent rights to the Netherlands may be obtained at the time of
filing in the U.S. if the PCT application is used.
Regulatory System - Laws and Procedures
Laws and regulations which affect investment, such as environmental
rules, health and safety regulations, etc., are non-discriminatory and
apply equally to foreign and domestic firms. Dutch tax law does affect
the feasibility of attracting non-Dutch personnel to live and work in
the Netherlands. Currently the expatriate temporarily working in the
Netherlands (or acting as statutory director of a Dutch corporate
entity, but living abroad)can make use of the 35 percent ruling, which
provides that 35 percent of his/her gross employment income in the
Netherlands is not taxable under Dutch personal income tax laws. This
treatment is granted for 5 years, with another 5 years possible upon
application. Furthermore, the expatriate is considered a non-resident,
meaning that only income from Dutch sources is taxed in the Netherlands.
The Dutch corporate tax rate (40 percent on taxable profits up to
100,000 guilders and 35 percent on profits in excess) is among the
lowest in the EU, second only to the UK. Effective January 1, 1996, the
corporate tax rate will be reduced in steps to one general tariff of 35
percent by 1999. Dutch corporate taxation generally allows for the
exemption of dividends and capital gains derived from a foreign
subsidiary (participation exemption). Furthermore, the Netherlands
maintains an extensive network of tax treaties with a large number of
countries. The tax treaty with the U.S. has been renegotiated in 1993
and took effect on January 1, 1994. Dutch financial markets facilitate
the free flow of financial resources, are fully developed and operate at
market rates.
Bilateral Investment Agreements
The Netherlands has signed bilateral investment agreements
with a number of countries as follows: Albania, Argentina, Bolivia,
Bulgaria, Cameroon, Cape Verde Islands, China, Czech Republic, Slovakia,
Egypt, Estonia, Ghana, Hong Kong, Hungary, Indonesia, Ivory Coast,
Jamaica, Kenya, Korea, Latvia, Lithuania, Malaysia, Malta, Morocco,
Nigeria, Oman, Pakistan, Paraguay, Philippines, Poland, Romania,
Senegal, Singapore, Sri Lanka, Sudan, Tanzania, Thailand, Tunisia,
Turkey, Uganda, Uruguay, USSR, Venezuela, Viet Nam, Yemen Arab
Republics, Slovakia, Ukraine, Peru and Bangladesh.
The Netherlands adheres to the OECD investment code with the exceptions
mentioned earlier, and has a treaty of friendship, commerce and
navigation with the US which generally provides for national treatment
and free entry for foreign investors with certain exceptions. The
Netherlands is also a part of the EU single market.
OPIC and Other Investment Insurance Programs
The Netherlands has no investment insurance agreements like OPIC's.
However, Dutch companies investing in developing countries through the
establishment of subsidiaries or joint ventures, can insure their
investment against non-commercial risks with the privately-owned
Netherlands Credit Insurance Company (NCM) under the 1969 Investment
Reinsurance Act (WHI). The NCM reinsures its political risks with the
Ministry of Finance. This insurance program has not been heavily
utilized by Dutch investors , however, and efforts are underway to find
ways of making the program more effective.
According to article 7b of the Investment Reinsurance Act of 1969,
reinsurance of investment in LDC's can be provided only if a
satisfactory agreement has been reached with the recipient country
regarding regulations which will apply to Dutch investment in that
country and the procedure which will be followed in case of a dispute
between the investor and the host country on recovery of indemnity
resulting from the insurance of the investment. A temporary program
covering the insurance of investment in all Eastern and Central European
countries, with the exception of the former Yugoslavia and the Asian
republics of the CIS, has been introduced in 1991. Eventually this
program scheme will be merged with the 1969 Investment Reinsurance Act.
The Netherlands is a member of the Multilateral Investment Guarantee
Agency (MIGA).
Labor
The Dutch work force is characterized by its high productivity and high
levels of skill and training. Labor/management relations in the private
sector are generally good and days lost to strikes are relatively low.
The average unemployment level in the Netherlands as measured by the
OECD statistics was 7.5 percent in 1994. Workers in most occupational
categories are readily available, although there has been some
inflexibility because of reluctance of workers to move or to switch
occupations. This immobility was aggravated by past government policies
which tended to reduce wage differentials across skill groups and to
reduce the differential between income when not working (e.g. due to
layoff, disability, sickness, etc.) and when working.
The current government has proposed measures to correct this situation,
and incentives encouraging labor market flexibility are a matter of
active political debate. Nevertheless, labor market rigidities still
account for a significant portion of unemployment, along with structural
and cyclical conditions.
Workers may be found through government-operated labor exchanges, a
rapidly growing number of private employment firms or directly -
through, for example, newspaper ads. After an initial period, firing of
non-contract personnel can be extremely difficult and expensive. This
is one of the reasons why a growing number of U.S. subsidiaries in the
Netherlands is hiring its workforce through private employment firms.
Although wage bargaining in the Netherlands is increasingly
decentralized, there still exists a central bargaining apparatus where
labor contract guidelines are sought. About 65 percent all Dutch
private sector workers are covered by union contracts which are
negotiated on a sectoral basis with employers associations and, if
accepted by the government, extended by law to the entire sector. Union
contracts, for instance, have resulted in an average workweek of 38
hours.
In recent years, there has been considerable moderation of wage
increases. The average contract wage rise agreed in the spring of 1994
round was 1.8 percent. This is 1.4 percentage points less than in 1993
and considerably below wage rises in major neighboring countries. Trade
unions largely accept the need to adopt new and improved technology.
Labor productivity in the Netherlands (for those actually working) is
among the highest in the EU.
There is substantial labor involvement in corporate decision-making on
matters affecting workers. Firms of at least 100 employees are required
by law to institute Works Councils with which management must consult on
a range of issues including investment decisions. Smaller firms are
also required to consult on a range of issues, though on a less formal
basis. Foreign investors should be aware of the legal requirements for
hiring, firing and the general conduct of labor relations in the
Netherlands, and plan accordingly.
Foreign Trade Zones/ Free Ports
There are no free trade zones or free ports in the Netherlands in the
sense of territorial enclaves where commodities can be processed or
reprocessed tax-free. However, the Netherlands does have an estimated
500 public and private customs warehouses as described in the EU
directive 69/75 of March 4, 1969 regarding free zones where goods may be
subject to handling needed to ensure their preservation or to improve
packaging or marketing quality. Imported goods may also be processed or
re-processed tax-free under the EU inward processing arrangement as
described in the EU directive. Foreign firms are able to take full
advantage of this in-bond transit shipment regime.
Capital Outflow Policy
Government policy is essentially neutral with regard to capital
outflows, and firms and individuals are free to invest abroad. No
license is required to repay share capital. This is also true for
payments made to foreign countries with regard to liquidation
distributions, interest, royalties, dividends, branch profits, and
management or technical fees.
The Dutch Government seeks to encourage investment in developing
countries through the conclusion of bilateral investment treaties
(described elsewhere), and the provision of reinsurance for political
risks for Dutch investors in developing countries. Funds are also
available to provide loans or operational assistance to firms investing
in developing countries. These funds are administered by the Finance
Company for Developing Countries (FMO), a quasi government bank.
Foreign Direct Investment Statistics
Foreign direct investments stock in the Netherlands (by country of
origin and industry sector) and comparable data covering the stock of
Dutch investment abroad are compiled by the Netherlands Central Bank
(NB) on an ad hoc basis. Netherlands' Central Bank investment
statistics reveal that the total amount of FDI stock in the Netherlands
at the end of 1992 covered roughly 18 percent of GDP, while FDI flows
and the end of 1993 amounted to 2.2 percent of GDP.
Foreign direct investment statistics in the Netherlands are based on
sources of capital inflows and not on actual "by country" investment
outlays. Official Economic Ministry statistics based on actual
investment outlays by country of origin and by industry sector are
protected for commercial reasons.
During the last decade the number of foreign companies with
establishments in the Netherlands has grown to over 6,300, employing
close to 352,000 workers. Included are 1,680 U.S. companies accounting
for 123,000 jobs. In 1994 the number of foreign investment projects
established though the official foreign investment agency (NFIA)
totalled 74 worth 661 million guilders (363 million U.S. dollars) and
created 3,548 new jobs. More than half (42) were U.S. investments worth
440 million guilders (242 million U.S. dollars). There is no compulsory
registration of foreign investment projects in the Netherlands. As a
result the total number of investment projects in 1994 (NFIA projects
plus non-sponsored projects) is unknown but estimated to be higher than
the official number.
Foreign companies in the Netherlands account for a quarter of industrial
production and about 21 percent of employment in industry. Close to one
third (29 percent) of foreign establishments in the Netherlands are of
U.S. origin, with 5 percent Japanese, 51 percent from the EU, and 13
percent from EFTA countries. The Economics Ministry is confident that
investment from the U.S. will increase in the near future. Special
efforts are being made to attract investments in the micro-electronics
field.
Major Foreign Investors
During the period 1987 through 1993, the Netherlands Foreign Investment
Agency (NFIA) has been instrumental in the establishment of 187 U.S.
investment projects in the Netherlands with a total investment value of
5.3 billion guilders ($2.8 billion). The most important U.S. investment
projects arranged by company are as follows:Albany International BV,
APM-Holland, Caddock Europe BV, Davidson/Marley, Distribution Services
International, Dow Chemical, Du Pont de Nemours, Engelhard Terneuzen BV,
Eastman Chemicals, Euramax Castings, General Electric Plastics, Cargil,
Kelsey Hayes, Memorex-Telex, Morton International, Campbel, Phillip
Morris Holland BV, Prime Computers, SC Johnson Polymer, Spechem BV, SPX
Power Team (O.T.C.), Tandem Computers, Vitalink Europe BV, Packard Bel,
Mobil Chemical Company, Nike, Texas Instruments.
U.S. companies investing in the Netherlands have been expanding strongly
particularly in the micro-electronics field, value added logistics and
the establishment of European headquarters. A striking new trend is
that various computer manufacturers are looking to the continent of
Northern Europe to establish an assembly, maintenance and distribution
center. According to the NFIA, Packard Bell established such a center
in Nijmegen in the east creating 500 new jobs. Other large U.S.
electronics firms with establishments in the Netherlands are AT&T, Rank
Xerox, IBM and Honeywell.
During the period 1987 through 1991 the NFIA also attracted 237 non-U.S.
investment projects valued at 3,3 billion guilders (1.8 billion U.S.
dollars) including: British Oxygen Company, British Steel, Ericsson,
European Patent Office, Fuji Photo, Hoechst Holland, Marley Foam, M&T
Chemical, Mead, Metallverken, Mita Europe, Mitsubishi, Mitsubishi
Motors, Mitutoyo, Nissin Food, Nissan, Omron, Outokumpu, Plalloy, Rexham
UK, Roth Frere, and Supertron.
The top fifteen U.S. investors in the Netherlands- based on the number
of employees are listed below:
1. Sara Lee/Douwe Egberts N.V.
P.O. Box 2
3500 CA Utrecht
Phone: (31) 30 927311
Fax: (31) 30 937646
Manufacturing, sales and marketing of coffee and groceries, and
household and personal care products.
2. IBM Nederland N.V.
P.O. Box 9999
1006 CE Amsterdam
Phone: (31) 20 513 3111
Fax: (31) 20 513 3634
Development, production, maintenance and sales of word processing, data
processing and telecommunications equipment and services.
3. Moret Ernst & Young
G.H. Betzweg 1
3068 AZ Rotterdam
Phone: (31) 10 407 4444
Fax: (31) 10 455 6440
Accountants and auditors, tax advisers, and management consultants.
4. Coopers & Lybrand Dijker van Dien
P.O. Box 94200
1097 GE Amsterdam
Phone: (31) 20 568 6666
Fax: (21) 20 568 6888
Accounting and auditing services, tax and management consultancy.
5. AT&T Network Systems International B.V.
P.O. Box 1168
1200 BD Hilversum
Phone: (31) 35 873111
Fax: (31) 35 871748
Telecommunications equipment and systems.
6. Browning-Ferris Industries Europe Inc.
P.O. Box 2449
3500 GK Utrecht
Phone: (31) 30 814111
Fax: (21) 30 871292
Solid and liquid waste collection, treatment and disposal to public,
private and municipal customers.
7. Deloitte & Touche
P.O. Box 90721
2509 LS The Hague
Phone: (31) 70 326 4701
Fax: (31) 70 324 4482
Public accountants, tax advisors and related services.
8. Dow Benelux N.V.
P.O. Box 48
4530 AA Terneuzen
Phone: (31) 1150 71234
Fax: (31) 1150 72423
Production of chemicals and plastics.
9. Rank Xerox Manufacturing (Nederland) B.V.
P.O. Box 43
5800 MA Venray
Phone: (31) 4780 25000
Fax: (31) 4780 88159
Manufacturing of copying equipment and supplies.
10. General Electric Plastics Europe B.V.
P.O. Box 117
4600 AC Bergen op Zoom
Phone: (31) 1640 32911
Fax: (31) 1640 32940
Manufacturing, sales and marketing of thermoplastic resins.
11. Philip Morris Holland B.V.
P.O. Box 205
4600 AE Bergen op Zoom
Phone: (31) 1640 79911
Fax: (31) 1640 79335
Manufacturing, sales and marketing of cigarettes and tobaccos.
12. Honeywell B.V.
P.O. Box 12683
1100 AR Amsterdam
Phone: (31) 20 565 6911
Fax: (31) 20 565 6600
Manufacturing and sales of low pressure regulators for gas burners,
microswitch precision components, control apparatus for heating,
ventilating, airconditioning controls, instruments and systems for
process automation, safety controls for steam boilers, hot water boilers
and special liquid level application and flow switches.
13. Alcoa Nederland Holding
P.O. Box 21
5150 BA Drunen
Phone: (31) 4163 86100
Fax: (31) 4163 86210
Manufacturing and sales of aluminum rolling and extrusion and end
products.
14. Du Pont de Nemours (Nederland) B.V.
P.O. Box 145
3300 AC Dordrecht
Phone: (31) 78 218911
Fax: (31) 78 163737
Manufacturing and sales of plastics, synthetic fibers and industrial
organic chemicals.
15. Esso Nederland B.V.
P.O. Box 1
4803 AA Breda
Phone: (31) 76 291000
Fax: (31) 76 221177
Refining,marketing and transportation of crude and petroleum products.
CHAPTER VIII. TRADE AND PROJECT FINANCING
Description of Banking System
The sector is dominated by three giant Dutch banks - ABN Amro, Rabo
Bank, and ING Bank - which have about 75 percent of total lending. US
financial services providers in the Netherlands play on a level legal
field. The Finance Ministry and Central Bank grant full national
treatment to foreign banks.
According to the Finance Ministry, Dutch legislation implements all
existing EU law and regulations on the provision of financial services.
Banks organized in the Netherlands as branches of a US parent cannot
benefit from the EU single banking passport and are subject to Dutch
regulation.
Foreign financial services providers face no special conditions or
restrictions, and receive full national treatment. However, one
provision of the Dutch 1992 Banking Act does reflect the EU Banking
Directive's "reciprocity" provision. The Finance Ministry says this
section has never been used, and that all applications from non-EU
parent banks are handled on a national treatment basis.
To locate Dutch banks with correspondent US banking arrangements,
contact:
The Netherlands Bankers' Association (NVB)
P.O. Box 3543
1001 AH Amsterdam
Phone: (31) 20 550 2888
Fax: (31) 20 623 9748.
Foreign Exchange Controls
There are no foreign exchange controls in the Netherlands.
General Financing Availability
Banking facilities for international transactions available in the
Netherlands generally meet or exceed US standards.
How to Finance Exports/Methods of Payment
Financing is provided at market rates by commercial banks and (for a
small part) by a specialized export financing company -- NV Export
Financiering Maatschappij, set up by the large commercial banks.
Types of Available Export Financing and Insurance
The Nederlandsche Credietverzekering Maatschappij NV (NCM), a private
company owned by the Dutch banks, and a number of insurance and export
finance companies, provides export credit insurance. NCM can be
contacted at: Nederlandsche Credietverzekering Maatschappij NV,
Keizergracht 271-287, 1016 ED Amsterdam, Phone: (31) 20 553 9111, Fax:
(31) 20 553 2811.
Eximbank availability and Existing Eximbank Bundling Facilities
Information on Eximbank programs can be obtained from the marketing
department, Phone: (202) 566 8860. Eximbank also has a toll free
number, Phone: (800) 424 5201, that provides information on its overall
programs.
Project Financing Available
Most projects are financed by public and private sector lenders at
commercial rates.
As a member of the European Union, the Netherlands has access to
EU-funded programs which provide a wide range of support in the form of
grants, loans and co-financing for training, feasibility studies,
infrastructure projects in the environmental, transportation, energy and
other key sectors. EU initiatives are designed to support projects
within its Member States and the EU-wide "economic integration" projects
that cross over borders.
EU Structural Funds are available to assist economically depressed
regions that require industrial restructuring and agricultural
reconversion. Tenders for such projects are subject to EU public
procurement legislation, provided that the tender meets the EU threshold
requirements. There are no overt prohibitions against the participation
of U.S. firms. From a commercial perspective, these initiatives create
significant market opportunities for European firms of American
parentage.
List of Banks with Correspondent U.S. Banking Arrangements
The Dutch banking sector is dominated by three big Dutch banks: ABN-
Amro, ING, and Rabobank. Nonetheless, US and foreign banks are
represented. Important banks to contact are:
ABN-Amro Holding NV
P.O. Box 283
1000 EA Amsterdam
Phone: (31) 20 628 9898
Fax: (31) 20 628 7740
Internationale Nederlanden Bank NV
P.O. Box 1800
1000 BV Amsterdam
Phone: (31) 20 563 9111
Fax: (31) 20 563 5700
RaboBank Nederland
P.O. Box 17100
3500 HG Utrecht
Phone: (31) 30 909111
Fax: (31) 30 902672
American Express Bank Ltd
P.O. Box 10046
1001 EA Amsterdam
Phone: (31) 20 540 0111
Fax: (31) 20 642 2325/642 5705
Citibank NA
P.O. Box 2055
1000 CB Amsterdam
Phone: (31) 20 551 5911
Fax: (31) 20 551 5234
Foreign Bankers' Association
P.O. Box 19870
1000 GW Amsterdam
Phone: (31) 20 550 2888
CHAPTER IX. BUSINESS TRAVEL
Business Customs
The Dutch market is a highly competitive market and the U.S. exporter
must keep certain factors in mind to achieve maximum success. The
"golden keys" of customary business is courtesy, especially replying
promptly to requests for price quotations and to orders. These are a
prerequisite for exporting success. In general, European business
executives are more conservative than their American counterparts;
therefore, it is best to refrain from using their first names until a
firm relationship has been formed. Friendship and mutual trust are
highly valued, and once an American has earned this trust, a productive
working relationship can usually be counted upon.
Dutch buyers appreciate quality and service and are also interested in
delivery price. Care must be taken to assure that delivery dates will
be closely maintained and that after-sales service will be promptly
honored. The Dutch and Europeans in general, are concerned that after
placing an order with an American suppliers, the delivery date will not
be honored. While there are numerous factors that may interfere with
prompt shipment, the U.S. exporter must allow for additional shipping
time and keep in close contact with the buyer. It is much better to
quote a later delivery date that can be guaranteed than promise an
earlier delivery that is not completely certain.
U.S. exporters should maintain close liaison with distributors and
customers to exchange information and ideas. In most instances, mail,
fax, or telephone communication is sufficient, but the understanding
developed through periodic personal visits is the best way to keep
distributors apprised of new developments and to resolve problems
quickly. Prompt acknowledgement of correspondence by airmail or fax is
recommended.
Further, U.S. exporters should seriously consider warehousing in the
Netherlands for speedy supply and service of their European customers.
A vigorous and sustained promotion is often needed to launch products
because of buying habits. Products must be adapted to both technical
requirements and to consumer preferences. It is not sufficient to
merely label a product in conformity to national requirements for the
development of the full market potential. Consumers must also be
attracted to the product by label and packaging as well as ease of use.
Travel Advisory and Visas
Every U.S. traveler must have a valid passport. No visa is required for
U.S. citizens visiting the Netherlands for less than 3 months, but one
is required for longer periods. An American citizen entering the
Netherlands for permanent residence must register as soon as possible
after entering the country. U.S. citizens planning to work in the
country must first obtain a work permit. The permit is must be
presented to immigration upon arrival. Such permits must be obtained by
the Dutch employer and are usually granted only for specialized work.
Management and skilled workers have no difficulty in obtaining work
permits.
Holidays
The dates below are the official statutory holidays when most commercial
offices and banks are closed. Certain other days are celebrated as
holidays within local jurisdictions. American holidays are observed by
the U.S. Embassy and Consulate General and should be considered when
telephoning or visiting the Commercial Service staff.
New Year's Day January 1
Good Friday April 5
Easter Monday April 8
Ascension Day May 16
Whitmonday May 27
Christmas Day December 25
Second Christmas Day December 26
Business Infrastructure
Language Communication
English usually can be used in commercial correspondence. However, not
all Dutch understand English and for retail products it is essential to
provide advertising, labeling, and use instructions in Dutch. If such
literature cannot be provided, the U.S. exporter should work with the
Dutch importer or distributor to have the products labeled in the
Netherlands.
While language barriers pose no problems, some expressions and terms may
have different meanings from those in the United States. To assure
better understanding, it is well to define unfamiliar terms in
commercial activities. By reference and the use of INCOTERMS in an
agreement, both parties will be using the established international set
of commercial terms which helps to reduce possible misunderstandings and
promotes fair dealing.
Housing
Housing is often difficult to find and rents vary widely. Family
housing of a size to which Americans are accustomed will be expensive in
or near the larger cities. In many area, furnished quarters are easier
to find than unfurnished quarters. The term "unfurnished" must be taken
literally. The tenant often must provide electric fixtures, stove,
refrigerator, water heater, wardrobes, etc. Usually, the owner accepts
responsibility only for exterior repairs; interior maintenance and
repairs are usually at the tenant's expense. It might be necessary to
engage a real estate agent (makelaar), although their fees are high. A
municipal housing permit is required to occupy certain houses and
apartments; the landlord can advise you on this. Be aware that a
verbal commitment can be considered a legally binding contract here.
Transportation
Rental automobiles are available at numerous locations. An
international or state driving license is acceptable. Cars are driven
on the right-hand side of the road. The national roads and highways are
excellent. Newcomers may find driving in town a little disconcerting
because of the many cyclists who often make unexpected turns or must be
passed at close range. Some city streets have special bicycle paths.
Right-of-way is that of the vehicle entering from the right unless the
vehicle is coming out of a driveway. Roads posted with orange diamonds
do not have to yield the right-of-way. The speed limit in the cities is
30 miles (50 Km) per hour and on highways about 70 miles (120 Km) per
hour.
Most cities in the Netherlands have good public transportation systems
(e.g. trains, buses, streetcars). The prices are reasonable. Taxis are
available everywhere and the fare is comparable with other European
cities.
Health
Medical services are excellent and hospitals compare with those in the
United States. Common medical needs are readily obtained, and special
supplies are normally available on short notice. An international
certificate of vaccination is not required for travelers from the United
States. Drinking water is excellent, most pharmaceuticals are
available, and sanitation is at American standards.
Currency
The basic monetary unit is the Dutch guilder or florin (usually
indicated as Dfl. Nfl. or as f). The guilder is issued in paper notes
of Dfl. 1,000, 250, 100, 50, 25 and 10. Coins are issued in units of
Dfl.5, Dfl.2,50, Dfl.1,00, 25c, 10c and 5c. Current value 1 USD=
Dfl.1.57.
Other Information
With the ease of telephone communications, international calls are
frequently the best method of arranging appointments and maintaining
solid commercial relations. The Dutch are usually adept at handling
business calls in English, but the American executive must be prepared
to expect some language problems. The time zone for the Netherlands is
Greenwich mean time +1 or 6 hours ahead of the U.S. eastern standard
time (EST + 6 hours). Fax machines have increased the speed and ease of
international communications and should be used to maintain strong
business ties.
The electric current is alternating current, 50 cycle, 220 volts.
American appliances, such as electric shavers or hair dryers, do not
work and will be damaged if used without a converter.
Conservative business attire is recommended at all times. Business
appointments are also required and visitors are expected to be punctual.
CHAPTER X. APPENDICES
Appendix A - Country Data
1. Profile
A. Population: 15.3 million
B. Religions: Roman Catholic and Protestant
C. Government: Constitutional Monarchy with
Parliament
Head of State: Queen Beatrix
Head of Government: Prime
Minister Wim Kok
D. Language: Dutch, English frequently used
in business
E. Last election: May 1994
Appendix B - Domestic Economy
1993 1994 1995
A. GDP (current $b) 308.8 29.8 382.6
B. Real GDP Growth Rate (%) +0.4 +2.5 +3.25
C. GDP Per Capita ($) 20316 21556 24846
D. Govt. Spending (% of GDP) 60.3 58.8 56.0
E. Inflation (% change in CPI) 2.6 2.7 1.75
F. Unemployment (%) 7.5 8.5 8.5
G. Foreign Exch. Reserves ($b) 40.4 40.8 44.1
(including gold)
H. H. Av. Ann. Exch. Rate 1.86 1.82 1.65
($1 = Guilder)
I. Mfg. Hourly Wage Rate 3.3 1.7 0.4
(% change)
J. Ind. Production (% c 0.3 3.1 3.5
Appendix C - Trade
1993 1994 1995
A. Total Exports (f.o.b./$b) 156.3 170.0 198.3
B. Total Imports (c.i.f./$b) 140.8 152.6 172.5
C. U.S. Exports (f.a.s./$b) 12.8 13.6 14.0
D. U.S. Imports (customs/$b) 5.4 5.0 5.0
E. Main U.S. exports to Netherlands: Machinery and transport
equipment; agricultural commodities; chemicals; computers;
electronic equipment.
F. Main U.S. imports from Netherlands: Food and live animals; beer;
chemicals; office machines; petroleum products.
G. Foreign supplier share of Dutch imports (percent)
1993 1994 1995
1. Germany 23.5 22.8 N/A
2. Belgium/Luxembou 11.7 11.5 N/A
3. United Kingdom 9.6 9.2 N/A
4. United States 8.0 8.1 N/A
5. France 7.5 7.6 N/A
6. Japan 3.8 3.6 N/A
H. Balance of Payments ($b) +10.2 +12.9 +14.7
I. Trade balances with leading trading partners ($m)
1. Germany +10745 +11423 N/A
2. Belgium/Luxembourg + 2828 + 3802 N/A
3. United States - 4485 - 5164 N/A
4. United Kingdom + 978 + 1655 N/A
5. France + 5303 + 5351 N/A
6. Japan - 3531 - 3357 N/A
J. Import Policy:
1. Tariffs and Taxes: Most tariffs on products from the U.S. are in
the 5 to 8 percent range. Industrial products from the European Union
(EU) and the European Free Trade Association (EFTA) countries enter the
Netherlands duty-free. A 17.5 percent value added tax (VAT) is applied
to most imported and domestic goods.
2. Licensing: Except for agricultural products and minerals, few
items are subject to import licensing.
K. Best U.S. Export Prospects: data processing and other business
equipment, telecommunications, medical and scientific instrumentation,
pollution control equipment.
Appendix D - Investment Statistics
A. Foreign Ownership Restrictions: None. U.S. investments welcome.
B. U.S. Direct Investment in the
Netherlands: (end-1994) $24 billion
C. U.S. Share of Foreign Investment: 37 percent
D. Principal Foreign Investors: U.S., Germany, UK
E. Dutch Direct Investment in the
United States: (end-1994) $70 billion
F. Major U.S. Investors in the
Netherlands: Dow Chemical, Du Pont de
Nemours, Eastman
Chemicals, General
Electric Plastics,
Cargil, Philip Morris,
Packard Bell, Mobil
Chemical Co.
Appendix E - US and Country Contacts
For information on government agencies, trade associations and local
chambers of commerce, interested companies should contact U.S. Embassy
or Consulate personnel at the numbers listed below.
U.S. EMBASSY TRADE RELATED CONTACTS
Dr. Rafael Fermoselle
Counselor for Commercial Affairs
The Commercial Service
American Embassy
Lange Voorhout 102
2514 EJ The Hague
Phone: (31) 70 310 9417
Fax: (31) 70 363 2985
Linda Archer
Commercial Attaché
The Commercial Service
American Embassy
Lange Voorhout 102
2514 EJ The Hague
Phone: (31) 70 310 9417
Fax: (31) 70 363 2985
Principal Commercial Officer
The Commercial Service
American Consulate General
Museumplein 19
1071 DJ Amsterdam
Phone: (31) 20 575 5351
Fax: (31) 20 575 5350
American Trade and Tourism Information Center (ATTIC)
Beurs World Trade Center
Beursplein 37, Room 324
P.O. Box 30123
3001 DC Rotterdam
Phone: (31) 10 405 3424
Fax: (31) 10 405 5104
Steven Yoder
Counselor for Agricultural Affairs
American Embassy, The Hague
PSC 71, Box 1000
APO AE 09715
Phone: (31) 70 310 9209
Fax: (31) 70 365 7681
The American Chamber of Commerce
Burg. van Karnebeeklaan 14
2582 BB The Hague
Phone: (31) 70 365 9808
Fax: (31) 70 379 6322
Holland International Distribution Council
P.O. Box 85599
2508 CG The Hague
Phone: (31) 70 346 7272
Fax: (31) 70 360 3698
COUNTRY TRADE OR INDUSTRIAL ASSOCIATIONS IN KEY SECTORS
VIFKA
P.O. Box 220
3454 ZL De Meern
Phone: (31) 3406 21515
Fax: (31) 3406 21717
Trade association for office, information and (tele) communication
industries.
Het Instrument
P.O. Box 152
3760 AD Soest
Phone: (31) 2155 18204
Fax: (31) 2155 23739
Trade association for suppliers of instrumentation for industrial
electronics, automation, laboratories and medical technology.
FARON/FME
Netherlands Association of Manufacturers of Electronic Equipment
P.O. Box 190
2700 AD Zoetermeer
Phone: (31) 79 531355
Fax: (31) 79 531365
FENIT - Federatie Nederlandse Informatie Technologie
P.O. Box 11760
1402 AT The Hague
Phone: (31) 70 385 7171
Fax: (31) 70 383 6931
VLM
Postbus 190
2700 AD Zoetermeer
Phone: (31) 79 531323
Fax: (31) 79 531365
(Association of Dutch manufacturers of pollution control
Equipment)
COUNTRY GOVERNMENT OFFICES RELATING TO KEY SECTORS
Ministry of Economic Affairs
P.O. Box 20101
2500 EC The Hague
Phone: (31) 70 379 7169
Fax: (31) 70 379 8074
Ministry of Agriculture, Nature Management
and Fisheries
P.O. Box 20401
2500 EK The Hague
Ministry of Transport
P.O. Box 20901
2500 EX The Hague
Phone: (31) 70 351 7586
Fax: (31) 70 351 7751
Ministry of Health, Welfare and Cultural Affairs
Sir Winston Churchilllaan 362
2280 HK Rijswijk
Phone: (31) 70 340 6241
Fax: (31) 70 340 7159
Ministry of Housing, Physical Planning and Environment
P.O. Box 30945
2500 GX The Hague
Fax: (31) 70 339 1280
Phone: (31) 70 339 4546
Ministry of Social Affairs and Employment
P.O. Box 90804
2509 LV The Hague
Fax: (31) 70 333 4033
Phone: (31) 70 333 4455
Netherlands Foreign Investment Agency (NFIA)
P.O. Box 20101
2500 EC The Hague
Phone: (31) 70 379 8818
Fax: (31) 70 379 6322
Netherlands Customs
P.O. Box 4486
6401 CZ Heerlen
Phone: (31) 45 742700
Fax: (31) 45 716415
COUNTRY MARKET RESEARCH FIRMS
To locate market research firms in the Netherlands contact:
The Netherlands Association of Market Research Firms (NVVM)
Hogehilweg 8
1101 CC Amsterdam Z.O.
Phone: (31) 20 697 6951
Fax: (31) 20 691 0433
COUNTRY COMMERCIAL BANKS
To locate Dutch banks contact:
The Netherlands Bankers' Association (NVB)
P.O. Box 19780
1000 GW Amsterdam
Phone: (31) 20 550 2888
Fax: (31) 20 623 9748
WASHINGTON-BASED USG COUNTRY CONTRACTS
Elena Mikalis
Netherlands Desk Officer
U.S. Department of Commerce/ITA
Room 3042
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: (202) 482 6008
Fax: (202) 482 2897
TPCC Trade Information Center
Phone: 1-800-USA-TRADE
U.S. Department of Agriculture
Foreign Agricultural Service
Trade Assistance and Promotion Office
Phone: (202) 720 7420
American State Offices in the Netherlands:
Indiana
World Trade Center
Strawinskylaan 305
1077 XX Amsterdam
Louisiana
Overasebaan 22
4891 RG Rijsbergen/Breda
Phone: (31) 1606 4160
Fax: (31) 1606 4170
Director: Mr. Hans Kalkman
Appendix F - Market Research
A complete list of all market research reports is available on the NTDB.
The following industry subsector analyses covering the Netherlands are
available on the NTDB:
1. Do-It-Yourself (DIY) Market in the Netherlands
2. Domestic Electrical Appliances Market
3. Contract Catering
4. Food Processing and Packaging
5. Golf
6. Optical Storage Devices and Software for Computers
7. Selling to the Dutch Telecommunications Operating Company
8. Water Pollution Controls
9. Electrical Generating
10. Traffic Control Equipment Market
11. Mobile Computing Hardware and Software
12. Aircraft Construction
Scheduled Industry Subsector Analyses 1995/96:
1. Mobile and Cellular Communications
2. Aircraft and Parts
3. Direct Marketing
4. Personal Computers
5. Computer Services
6. Diagnostic Equipment
7. Cosmetics
8. Sports and Leisurewear
9. Air Pollution Controls
10. Business Travel
Scheduled Reports 1995/96: (Foreign Agriculture Service)
Report Type
Commodity Report on Sugar Semi-annual
Commodity Report on Frozen French Fries Annual
Trade Leads Report Annual
Commodity Report on Poultry Semi-
annual
Commodity Report on Dairy Annual
Commodity Reports on Forest products Annual
Report on Wine Marketing Annual
Commodity Report on Citrus Annual
Report on Fresh Deciduous Fruit Semi-
annual
Commodity Report on Kiwi Fruit Annual
Commodity Report on Grain and Feeds Annual
Commodity Report on Livestock Semi-
annual
Report on Seafood Semi-
annual
Commodity Report on Sugar Annual
Report on Dairy Products Semi-
annual
Report on Contract Catering Annual
Commodity Reports on Oilseeds and Poultry Annual
Marketing Plan Information Report Annual
Commodity Reports on Livestock and Seeds Annual
Commodity Report on Seafood and Deciduous Fruit Annual
Report on Dutch Agricultural Situation Annual
Appendix G - Trade Event Schedule
Foreign Buyer Program: The Commercial Service in the Netherlands plans
to promote foreign buyer attendance to all the domestic U.S trade shows
designated under the Foreign Buyer Program. Where possible, a member of
the Commercial Service or one of the other agencies will escort the
buyers' groups and use the occasion to address exporters and recruit
U.S. exhibitors for Dutch and European trade shows. The events are:
1995 Commercial Service Events:
Date Title Type Sector
Sep. 7-10 IMTEC '95, Chicago PIP Marine Equip.
Sep. 12-15 Bobbin Show, Atlanta PIP Sewn products
Oct. 19-25 Furniture Fair, High Point PIP Furniture
Oct. 23-27 AAIW '95, Las Vegas PIP Automotive
Nov. 4-8 Megashow, Chicago FBP Food and Dairy
Nov. 8-10 World Energy, Atlanta FBP Engineering
Nov. 13-17 COMDEX fall FBP Computers
Nov. 15-18 NHHCE, Atlanta FBP Medical
Nov. 24-29 NY Dental, New York FBP Dental
Dec. 5-7 Power-Gen Americas '95 FBP Energy
1996 Commercial Service Events:
Jan. 17-21 World of Concrete, Las Vegas PIP Building
Jan. 26-29 Builder's Show, Houston FBP Building
Jan. 30-Feb 2 Magic, Las Vegas FBP Apparel
Feb. 13-15 Farm Equipment, Tulare, CA FBP Agriculture
Feb. 16-19 Toy Fair, New York FBP Toys
Feb. 20-23 DIS '96, Utrecht TFO Computers
March 4-7 PITTCON, Chicago FBP Lab Instruments
March 8-10 Franchise Expo, DC FBP Franchising
March 20-24 CONEXPO/ConnAgg, Las Vegas FBP Building
April 1-4 Intertraffic '96, Amsterdam TFO Traffic Control
April 1-3 Intermedia, San Francisco FBP Media
April 2-4 Networld & Interop, Las Vegas FBP Showcase
May 6-9 Offshore Technology, Houston FBP Offshore
May 20-24 WASTE EXPO, Las Vegas FBP Environmental
June 1-4 Fashion Boutique, New York FBP Apparel
June 3-6 COMDEX/Spring, Chicago FBP Computer
June 5-7 Hazmat, Philadelphia FBP Environmental
June 24-27 Supercomm, Dallas FBP Computers
Sep. 9-12 Minexpo, Las Vegas FBP Mining
Sep. 15-20 IEEE/PE, Los Angeles FBP Power
Sep. 26-28 PCIA, San Francisco FBP Communication
Explanation of Acronyms
FBP FOREIGN BUYER PROGRAM
PIP POST INITIATED EVENT
FAS FOREIGN AGRICULTURAL SERVICE
TFO TRADE FAIR OVERSEAS-ORGANIZED
Foreign Agricultural Service Events:
Date Title
Oct., 1995 SIAL, Paris, France
Jan., 1996 Horecava, Amsterdam
May., 1996 U.S. Food Export Show Case, FMI in Chicago.
Throughout 1996
Continued promotion of U.S. food and beverages through the Market
Promotion Project. Organize and assist with menu promotions at hotels
and restaurants throughout the country.
As part of the Show Case Europe "Euroaccess" program, following is a
listing of 1995 and 1996 trade events located in either Belgium or the
Netherlands, which will be jointly promoted and recruited by the two
posts. Wherever the event is held, an Commercial Service specialist
from the other country will attend the show and advise the American
participants on the rest of the Benelux market. In addition, the non-
host Commercial Service post will be prepared to conduct services for
the participants after or before the actual trade event. In other
words, a U.S. company participating in the telecommunications TMAB event
in Brussels in May 1995, could schedule a gold key or scp etc., with the
Commercial Service in The Hague to follow right after or before the
Brussels-based event. In this way, a company could once again explore
both markets on one visit, participating in a trade event in one country
and following-up with another market penetration service in the other
country. Because trade event schedules may change, firms should consult
the export promotion calendar on the NTDB or contact the Commercial
Service for the latest information.
-Geneva International Telecommunications Exhibition (TELECOM) October 2-
10, 1995
Exhibition of telecommunication systems, equipment, and networks for
public and private telecommunications.
-CeBIT '95, Hannover, Germany
March 20-27, 1996
Telecommunications, Networks, Connectivity, Banking, Data
Communications, Software, Hardware, Peripherals, etc
-THE MARCH EUROBENEFIT: The March EUROBENEFIT is a unique horizontal
matchmaker taking place in MARCH, 1996, in Amsterdam and Brussels. Each
participant will have two days of meetings with specific end users
and/or distributors interested in the company's product/service.
-THE TMAB TELECOMMUNICATIONS SHOW: Taking place during May, 1996 in
Brussels, the TMAB show is the only show in Belgium dedicated to the
telecommunications field. The Commercial Service in Brussels is
organizing a U.S. pavilion for ten-twelve U.S. companies, which will not
only be part of this major exhibition but which will also have specific
one-on-one appointments with potential representatives.
-INTERCLEAN: The most important exhibition for cleaning equipment and
supplies in the Benelux takes place in Amsterdam, May 7-11, 1996.
During the last show two years ago, the U.S. pavilion featured 45
american companies.
-Farnborough International Aerospace Exhibition, Farnborough, UK
September, 1996
Aerospace
July 7, 1995
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