VI.  TRADE REGULATIONS AND STANDARDS:

A.   INTRODUCTION

Effects of the Single Market:

To begin with, Belgium is part of the EU's single market of some 340
million consumers.  Thus, there are many common product standards either
in place or in the process of being put in place, and U.S. companies can
eventually meet one product standard rather than twelve different ones.
There is a single duty among all EU members toward products coming from
non-EU members.  VAT rates are being harmonized among the twelve and as of
January 1, 1993, the EU in theory became borderless for the movement of
goods.  U.S. companies can thus structure advertising and marketing
campaigns which are pan-European.  U.S. companies can also look at
distribution to all twelve EU members from one location.  American firms
must meet the common standards now being developed, and they should
consider obtaining ISO 9000 quality certification if they are a
manufacturer.  Quality, service and price competitiveness will remain
paramount considerations for a European considering buying an American
product or service.  Because of competition from all over Europe, a U.S.
firm will want to offer a distributor credit terms as good as its European
competitors - of course after being fully satisfied with the
creditworthiness of the buyer.  Lastly, an American firm will have to
follow EU directives on such important issues as product safety and
recycling excess packaging.  These directives will apply across the board
in all member states.

Nonetheless, there still are and will remain twelve different markets, and
U.S. companies should continue to approach each one somewhat separately.
For example, the single market will not eliminate regional language and
cultural differences.  It will not eliminate differences in consumer
buying patterns.  Regional economic differences will remain.  There will
be few distributors anywhere in Europe who can effectively distribute a
product or service in all twelve member states, and there will remain
legalistic differences in the treatment of agents and distributors.  What
do these differences mean for U.S. companies?

They mean that an American firm must continue to have a number of
distributors in Europe, especially in the most important markets. They
also mean that a company must obtain sound legal advice in each country
and market its product or service in a way sensitive to the cultural and
social history of the country in which it operates.  They also mean that
pan-European advertising and marketing are no panacea for individual
country marketing.  Companies will have to experiment and see if such pan-
European marketing really works for their product line or service.

Thus, whether we see a single market fully born in 1994 or 2000, U.S.
companies can take advantage of much of the single market now in place,
keeping in mind that they must still treat each country's market
differently.  American companies can look at the next ten years as a
window of opportunity for becoming and remaining competitive in the single
market of the future.  By beginning the process now, U.S. firms can meet
the challenges of intense competition in the European marketplace.

Customs Valuation:

As a member of the European Union, Belgium applies the EU common external
tariff to goods imported from non-EU countries.  For goods imported into
Belgium from other EU countries, no customs duties apply unless the goods
contain components imported from outside the EU upon which customs duties
have not been paid in another EU country.

The EU is currently considering a change in its method of calculating
customs values of imported goods.  Current EU customs valuation rules
provide that, where there is a "chain of sales" leading to the importation
of goods into the EU, the price paid in any of these sales can be used as
the basis for establishing the customs value of the goods in questions.
The proposal under discussion would require that the customs value be
based on the final sale price only.  If adopted, many U.S. multinationals
exporting to the EU through a "chain of sales" would find that EU customs
officials assign their products a higher customs value, and thus levy
higher tariffs, than is now the case.  U.S. companies should follow this
development carefully through their customs broker since its
implementation would necessitate considerable adjustments in operations
for major U.S. exporters to Europe.

Import and Export Licenses and Quotas:

Many products may be imported or exported without any prior license, but
products from certain countries and certain listed products are subject to
an import license.  An application for such a license must be made to the
Office of Quotas and Licenses (OCCL/CDCV).  Strategic goods are also
subject to an import and/or quota license.  A list of products subject to
quotas or licenses can be obtained from the office of the OCCL/CDCV or by
contacting a Belgian customs broker directly or via an American broker.

Value Added Tax:

Goods imported into Belgium or made in Belgium are normally subject to a
Value Added Tax payable upon importation if Belgium is the destination of
the goods being shipped into the EU.  One of three rates will apply:

6% daily necessities, food stuffs, etc;
12% tobacco, fuel, etc.; and
20.5% majority of commercial items.

While VAT applies equally to domestically-produced goods, it is applied
after all customs duties are added to the price of the goods.  Since EU
products do not pay customs duties, while those from the U.S. do, the
effective VAT rate for non-EU goods is actually higher than the rates
cited above.

Bonded Warehouses:

While Belgium does not allow free trade zones, it does permit bonded
warehouses near the main port of Antwerp and the national airport north of
Brussels.  In addition, it is possible to create a private warehouse with
the authorization of the customs authorities, which allows the U.S. firm
to delay and even avoid payment of customs duties.  Goods can remain in
such warehouses for up to one year, with duties and VAT payable only upon
sale within Belgium or reexport to other countries within the EU.  A bank
guarantee and certain reporting requirements are necessary to operate such
a facility, and there are other stipulations governing such a warehouse.

B.  DOCUMENTATION REQUIRED FOR U.S. EXPORTS TO BELGIUM:

Begin Summary:

European Community Ministers agreed in 1991 to abolish virtually all
customs documentation on goods moving between EU countries by January 1,
1993.  However, countries outside the EU are still required to obtain
proper customs documentation.  The following is a summary of the
documentation needed for U.S. exporters of goods to Belgium.  However,
such information can change overnight.  U.S. exporters should always
consult a reputable freight forwarded regarding recent changes in customs
documentation and import/export regulations.  End summary.

Shipping Documents:

Following are the documentary requirements American exporters must meet
when shipping to Belgium:  Mail and parcel post shipments require postal
documentation in place of bills of lading.  Air cargo shipments require
airway bills (in place of bills of lading) with the number of copies
issued based on requirements of the importer and the airline used.  Follow
IATA and/or ICAO (plus all other applicable national and/or international)
regulations governing labeling and packing of dangerous and restricted
goods as well as issuance of the special shipper's certificate required
under IATA rules for such items (airlines will supply this form).  ICAO
rules may also require documents covering such shipments (airlines will
supply information and forms if so required).  U.S. exporters must also
follow U.S. government requirements regarding export control documents,
including the shipper's export declaration.

Consular/Customs Invoice:

Neither document is required in Belgium.

Commercial Invoice:


The commercial invoice (in triplicate) without requirement as to form,
must contain full particulars, e.g., such as the following:  date; place
of shipment; name/firm's name and address of seller and buyer; mode of
transport; number, kind, and markings of the packages and their numerical
order; exact description of goods - a customary commercial description
according to kind, quality, grade, weight (both gross and net, in metric
units), etc., with special emphasis to be placed on any factors which
increase or decrease the value of the goods; agreed price of goods - unit
cost, total cost F.O.B. factory plus shipping, insurance and other
charges; delivery and payment terms; country of origin of goods; and the
signature of the exporting firm.  It is useful if the commercial invoice
contains the HTS code (Harmonized Tariff Schedule).  This is not
mandatory, but helps the importer to recognize the commodity and properly
classify it for customs purposes.  The first four digits of the eight
digit code are harmonized worldwide.  Additional information may be
requested by the importer, under terms of a letter of credit, or due to
the nature of a particular trade.

Pro-Forma Invoice:

A pro-forma invoice is acceptable in lieu of a commercial invoice.  It
should include a complete description and value of the goods shipped.  It
is mostly used in cases where no actual invoicing between the shipper and
the consignee exists.

Bills of Lading:

Generally, "To order" bills are acceptable.  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.  Express bills of lading
are also acceptable.  These B/L's help speed up the process in cases where
banking is not necessary.  With an express bill of lading, goods are
automatically transferred to the designated consignee without presentation
of the original B/L.  This is ideal for internal company shipments of
goods sold on open account.

Packing List:

This is not a mandatory documents.  However, including a packing list
should facilitate customs clearance of goods.

Certificate of Origin:

No certificate of origin is, as a general rule, required under Belgian
regulations on imports from the U.S. except when the certificate is
specifically demanded in the import license.  Sometimes certificates of
origin are requested by the importer/bank/letter of credit clause.  There
are no regulations concerning the form and preparation of the certificate,
when necessary, but the data contained in it has to be certified by a
Chamber of Commerce (which will probably require an additional notarized
file copy).  Under EU regulations, certificates of origin may be required
for stipulated goods, including goods subject to surveillance and/or quota
requirements.  Goods covered by either of the systems usually require
certificates of origin irrespective of the actual origin of the goods.
Importers will instruct their suppliers when certificates of origin are to
be issued in such circumstances.

Insurance Certificate:

Normal commercial practices obtain.  Follow the instructions of the
importer and the insurance company.

Steamship Company Certificate:

There are no known requirements.

Import License:

The vast majority of goods from the U.S. do not require an import license
(as long as the importer is Belgium).

U.S. Shippers Export Declaration:

This is required if the value of the shipment is more than dols 2500 (dols
500 for shipments through the U.S. postal service) or where a validated
license is needed.  The dols 2,500 exemption (dols 500 for shipments
through the U.S. postal service) applies to goods under each schedule B
number in a single shipment from one exporter to one importer.

Consular Fees:

There is no known general requirement to have documents legalized.  If
requested to legalize a shipping or legal document, Belgian officials will
usually do so at no cost or for a nominal sum.  Please verify the policy
of the consular office used regarding this matter.

Belgian Export Controls:

Belgian controls apply to the export and reexport of military
(conventional weapons) and dual-use items, as well as materials for
weapons of mass destruction.  Belgian companies send all applications for
export and reexport to the Office of Quotas and Licenses in the Ministry
of Economic Affairs.  At that point, the process varies depending on
whether the export is a conventional weapon/dual use item or a nuclear-
related item.

If the item is a conventional weapon or dual use item, the Office of
Quotas and Licenses will first determine whether, based on law and its
experience, it will approve the item for export.  If the Office makes a
positive determination, it then sends the request for further approval to
one of two federal ministers depending on the location of the Belgian
company involved in the export.  Export licenses for Flemish companies are
sent for approval to Foreign Minister, Willy Claes, while Walloon company
export licenses are sent for approval to Minister of Foreign Trade, Robert
Urbain.  Once approved or disapproved by the respective ministry, the
applications are returned to the Office for final disposition.

If the item is nuclear or nuclear-related, the application must be
approved (or disapproved) by the Minister of Economic Affairs, after
consultation with and advice from the National NonProliferation Board.
The Board consists of representatives of five federal ministries,
including Trade, Foreign Affairs, Health, Energy, and Economic Affairs.

As a member of the European Union and Cocom, Belgium follows the common
regime and applies the proscribed lists.  As the Cocom regime is replaced
and new lists developed, both by Cocom's successor and the EU, Belgium
will utilize those lists to apply the export control procedures outlined
above.

Comment:

There are likely to be new customs regulations and policies of the EU
which will come into effect as a result of the Maastricht Treaty,
implementation of a common EU export control regime, and implementation by
Belgium of the so-called ecotaxes.  American exporters should always
consult a reputable freight forwarder who will be knowledgeable of recent
changes in documentation requirements.

C.  PACKAGING AND LABELING IN BELGIUM

Summary:

Until recently, each EU country individually regulated its domestic
industries for packaging and labeling.  As part of the EU's 1992 single
internal market program, the EU is now attempting to remove technical
barriers by harmonizing existing European legislation and establishing new
rules, where necessary, so that goods sold in one EU country can be
marketed easily in any other EU country.  However, differences still exist
from country to country.  In addition, national requirements exist side by
side with EU-wide requirements.  Following is a review of packaging and
labeling regulations in Belgium affecting U.S. exporters.  The review
covers both national and EU-wide aspects of packaging and labeling in
Belgium.  End summary

What Language to Use:

Probably the most often asked question regarding packaging and labeling in
Belgium is, "what language am I required to use?"  Belgium recognizes
three official languages: Flemish (Dutch), French, and German.  The
prevailing Belgian law is simply that the consumers of the targeted market
must be able to read the product information.  Typically, this has been
Dutch (Flemish) in the northern half of Belgium (Flanders), French in the
southern half of Belgium (Wallonia), and German in two small communities
of German speaking Belgians on the Belgian border with Germany.
Generally, both Flemish and French appear on all products sold in the
Belgian market and should be considered the most judicious option for a
newcomer to the Belgian market.  The language requirement is enforced
rather liberally.  According to the director of the Belgian Packing
Institute, a judge in the Flemish city of Mechelen ruled in favor of a
German company which refused to label its product in Flemish as he deemed
the local populace to be well versed in the understanding of German.

Marking and Other 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.  Imports of certain
commodities, including numerous food stuffs, 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.  These special regulations relate largely to health and quality
standards, are highly detailed and diverse, and are embodied in formal
legislation and directives of Belgium.  In view of the complexity of this
field, information should be requested from the importer prior to
shipment.

Belgium's Ecotaxes:

Harmonizing a company's packaging to conform with Belgian environmental
law is another very important consideration.  The Belgian government has
recently brought into law a set of "ecotaxes."  These taxes are new
measures that the "greens" have proposed to protect the environment.
These taxes affect several types of disposable products, as well as
certain chemical and industrial products.  As proposed, the law was to
have come into effect after the first of January, 1994 for many products
and then at various times over the next four years for the remaining
products.  However, the government has delayed the implementation of
various parts of the law.  While this gives U.S. exporters additional time
to meet the requirements of the ecotaxes, it only postpones the
requirement in most cases to the beginning of 1995.

The proposed ecotaxes are a set of variable rate taxes levied upon
products such as disposable drink containers, disposable razors,
disposable cameras, disposable batteries, industrial containers,
pesticides, and herbicides.  The taxes are levied on products put into
consumption in proportion to the damage they are deemed to cause the
environment.  The national government is responsible for collecting the
taxes, but will not benefit from the revenues.  These revenues will be
divided among the regional governments in proportion to their respective
populations.  This money is intended to help finance environmental
programs which the regions are taking over from the national government.

Specifically, bottles and cans of beer, sparkling water, mineral water,
lemonades, non-alcoholic drinks, and colas are among the first to be
affected by the taxes.  Effective December 31, 1994 reusable and deposit
bottles, and non-reusable and recyclable containers will be subject to a
15 BF/liter tax (0.43 Dollars/liter) with a 7 BF minimum per packing (0.20
Dollars/minimum) if the container is at least 50 centiliters.  Containers
less than 50 centiliters are subject to a 3.5 BF (0.10 Dollars) tax.  Pvc
(polyvinyl-chloride containers) will be affected at the same rates at a
date to be determined (but at the latest by December 31, 1994) by the
Advisory Committee on the ecotaxes.  Recyclable and reusable containers
are exempt from the tax if 80 percent of the glass, aluminum, and tinplate
and 70 percent of the plastic is collected and recycled at the expense of
the suppliers.  Reuse is defined as being refilled at least seven times
and the packing must be designed to be used again and again.  Containers
for other drinks, such as wines, non-alcoholic wines, fruit juices,
vegetable juices, alcoholic drinks, milk, and dairy products will be
subject to the same rates effective December 31, 1997 at the latest.
Items on the deposit-return system should bear a clearly visible mark
indicating that a deposit will be required.  The conditions for this mark
will be determined by royal decree.

An ecotax of 10 BF per disposable razor took effect on January 1, 1994.  A
tax of 300 BF on throw-away cameras will take effect on July 1, 1994.  A
20 BF tax on batteries will take effect on a date still to be established
by the Advisory Committee, but not later than January 1, 1995.  The
Committee is also charged with setting the dates of implementation of
ecotaxes on glues, pesticides, and solvents.  This is to be done by
December 31, 1994.  Pesticides will be exempt from the taxes provided that
no substitute exists which is more ecologically friendly.

Industry is continuing to lobby against the taxes for several reasons.
Although the main associations representing affected industries claim not
to disagree with the primary objectives of the green parties, they do
claim that the ecotaxes, in their current form, are discriminatory to
certain industries which are relatively minor contributors to overall
environmental problems.  Industry also believes that there could be
significant economic fallout due to the severity of the taxes in a few
areas.  Estimates of the economic costs of the implementation of the
ecotaxes are mostly regarded as conjecture at this point, with the greens
convinced that new industries, such as recycling, will spring up and
compensate for job loss elsewhere.  In response to industry complaints,
especially from the chemical (pvc) industry, the government has
established the Advisory Committee to examine the potential impact of the
ecotaxes on inflation, domestic markets, and unemployment in Belgium.
Based on this Committee's recommendations, due by the end of 1994, the
ecotax law and its components may be amended further.

In any event, U.S. exporters should consult regularly with their Belgian
importers, agents, and distributors for details of the taxes and their
effects on the cost of certain imported products, as well as the timetable
for implementation of the taxes.

European Union requirements:

Incorporated into the charter of the European Union is a law modeled on
the U.S. counterpart.  Basically, any specific legislation not ratified by
the EU will be left to the member countries to implement as they see fit.
While recent EU legislation does not conflict with what is being brought
into law in Belgium, it is important to be aware of impending EU
regulations as they may override local Belgian laws.

Recycling, packaging and waste management:

An EU proposal, which was recently published in the official journal (c
263; oct. 12, 1992), has two objectives:  first, to harmonize European
packaging standards and symbols to facilitate the free flow of goods
within the community and second, to maximize the environmental benefits of
various national waste management systems, by increasing the level of
coordination among them.  To attain these objectives, the proposed
directive would establish:

-  recovery and recycling targets;
-  requirements and conformity symbols for packaging; and
-  broad criteria for national waste management systems.

The proposal is based on a prevention-first, recovery-second, and
disposal-last approach.  The latest version of the proposal mandates that,
within 5 years after the passage of the directive, the EU member states
must recover (defined to include recycling, composting, and waste-to
energy recovery) a minimum of 50% by weight of all packaging waste, with
at least 25% recycled.  More importantly, the proposal sets maximum
targets for recovery of 65% and 45% for recycling.  Currently, passage of
the proposal has been blocked by the minority "green states" of Germany,
Denmark, and The Netherlands, joined by Belgium, which are unhappy that
the maximum targets are less than those already in effect in those
countries.

While U.S. exporters need not be concerned with the technicalities of the
disposal methods, it is important that their products are not biased
unfavorably by the legislation.  The EU proposal specifies that, "these
systems shall ensure the coverage of imported products under non-
discriminatory conditions and shall be designed in such a way that there
are no barriers to trade or distortion of competition."  Regarding the
obligation to take the packaging back, the EU proposal puts the onus on
the waste management system, not specifically on manufacturers as is
currently the case in Germany.  In that respect, the U.S. Commerce
Department has been assured repeatedly by EU officials that U.S. exporters
would not be required to take the packaging waste back to the United
States.  This would be consistent with the EU's "proximity principle."

Electronic Waste:

The European Union is in the very preliminary stages of considering
whether to draft legislation in the field of electronic waste.  As with
waste legislation in other areas, notably packaging, the impetus for the
commission's initiative has come from existing or proposed, member state
legislation.  It appears that this will again be true in the electronic
waste sector.

Eco-Labels:

The Commission of the European Union has just published the first
ecological criteria for the award of the eco-label for washing machines
and dishwashers, as well as other materials designed to help applicants.
The eco-label scheme, which is voluntary, will apply to all products
except food, drink and pharmaceuticals.  Council regulation no. 880/92 on
a community eco-label award scheme provides for the establishment of
ecological criteria for specific product groups to enable verification of
the reduced environmental impact of qualifying products, based on analysis
of the life cycle for the product, from manufacturing (including choice of
raw materials) through distribution, consumption and use, to disposal
after use.  The regulations require member states to designate competent
bodies to assess applications for the eco-label based on these criteria.
Manufacturers or importers in the community may apply for an eco-label
only to the competent body or bodies designated by the member state in
which the product is manufactured or first marketed, or into which the
product is imported from outside the EU.  At an unspecified date in the
future, markings will have to be displayed to indicate the reusability or
recyclability of the package, while voluntary markings could be used by
manufacturers to indicate the nature and the percentage of recycled
material of the packaging.  While voluntary, eco-labels may become
important marketing tools to consumers as well as a de minimis requirement
demanded by EU importers and end users, including consumers, of American
products.  Products, which may benefit from the eco-label, include
textiles, detergents, dishwashing agents, cleaning agents, paints and
varnishes, batteries, shampoos, packaging, refrigerators and freezers,
tiles, shoes, cat litter, light bulbs, hairsprays, soil improvers, toilet
paper and kitchen towels.

The CE mark in the European Union:

It is important to note here that products complying with EU harmonization
directives will be required to affix a CE mark to the product (or its
packaging, under certain circumstances) to signify that the product
complies with all relevant EU legal requirements specified in the
directives.  The CE mark signifies to member state customs and enforcement
officials that the product complies with EU legal requirements.  CE
marking is currently mandatory for only two product categories in the EU -
toys and simple pressure vessels as European standards and approval bodies
have been designated for these sectors.  Products bearing the CE mark are
guaranteed free circulation within the EU market.  CE marking does not
necessarily eliminate the commercial need for a manufacturer to obtain
other marks for his product, which may be recognized or expected by
purchaser.  These include performance marks, product or process quality
marks, and marks indicating environmental friendliness or recyclability.
The need for additional marks may be specified by a buyer in a contract,
or may simply be a generally accepted marketing practice in a particular
country or region.

Contact Information:

For more information on Belgian and EU-wide packaging and labeling laws,
following are key contacts in the United States and Belgium:

In the United States:

a. Office of European Community Affairs
   U.S. Dept. of Commerce
   Kirsten Bergstrom (202) 482-5276
   Lori Cooper (202) 482-5823

b. National Institute of Standards and Technology
   Joanne Overman or Maureen Breitenberg
   (301) 975-4040

c. U.S. Trade Representative for Europe and the Mediterranean
   USTR
   Chris Marcich
   (202) 395-3020

d. Director, Technical Trade Barriers
   USTR
   Suzanne Troje
   (202) 395-3063

e. Office of Belgium
   U.S. Dept. of Commerce
   Simon Bensimon
   (202) 482-5401

In Belgium:

f. Commercial Section
   U.S. Embassy
   Jerry K. Mitchell
   (322) 513-3830

g. U.S. Mission to the EU
   Peggy Keshishian
   (322) 513-4450


D.  STANDARDS IN BELGIUM AND THE EU

The Importance of ISO 9000 in Selling to Europe:

Simply put, ISO 9000 (EN 29000 in Europe; ANSI/ASQC Q 90 System in the
U.S.) defines the basics of a quality system for manufacturing, including
documentation, controls, and worker training.  Its aim is to ensure that a
manufacturer's product is the same no matter when a sample is taken off
the production line.  In other words, ISO 9000 is designed to ensure a
consistent level of product quality.  ISO 9000 standards are unlike
engineering standards, which contain units of measurement, test methods,
and specifications.  Rather, ISO 9000 standards encompass certain generic
management practices designed to bring benefit to both producer and end
user.

In today's marketplace, quality is a competitive advantage.  According to
1993 statistics, some 50,000 EU companies now have some form of ISO 9000
registration.  While voluntary, European manufacturers are increasingly
requesting that their suppliers be ISO 9000 registered.  In addition, more
and more European importers are making the same request of their European
and American suppliers.  The ISO 9000 registration and process are not
cheap and market demand for registration varies across product and service
sectors.  ISO 9000 registration also does not guarantee quality since it
is more concerned with consistency than actual product quality.  It also
does not ensure that a U.S. product will meet various standards
incorporated into EU directives covering a host of products.  Nonetheless,
like the eco-label, ISO 9000 registration may become a de minimis
requirement to do business in the Europe of the year 2000.

Product and Technical Standards:

As alluded to in the foregoing section, there are a number of EU-wide and
member-state standards governing various product categories, as well as
standards in health and safety which cut across a number of product
categories.  It would take a small book to describe all of these
standards.  When considering the Belgian and broader European market, a
U.S. company needs to ask what, if any, mandatory product standards apply
to its products or services.  An importer is probably the best source for
this information, at least in the initial inquiry stages.  The U.S.
Mission to the EU can also help at the following contact point:

U.S. Mission to the EU
Peggy Keshishian
Tel: (322) 513-4450
Fax: (322) 513-1228

In Belgium, information on product standards can be obtained from

Mr. P. Croon
Director
Belgian Standards Institute
Avenue de la Braban onne 29
1040 Brussels
Tel: 32/2/734-9205
Fax: 32/2/733-4264