Embassy of the United States Brussels, Belgium

Exporting to Belgium

President Obama announced the National Export Initiative (NEI) two years ago, with the goal of doubling exports by 2014. U.S. embassies are committed to supporting U.S. companies to start exporting or grow their exports to Belgium. In this section, you’ll find an quick description of Belgium as an export market and some suggestions for getting started.

For the complete, Belgium-specific 2012 Country Commercial Guide for U.S. Companies prepared by the U.S. Commercial Service, please click here:  Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)

Getting Started

1. Visit the export.gov page on Belgium to get an overview of economic conditions and opportunities.  Access the U.S. Commercial Service Market Research Library containing more than 100,000 industry and country-specific market reports, authored by our specialists working in overseas posts and the Market Research Library for Belgium.
   
   The Library Includes: 
   • Country Commercial Guide: an overview of the Belgian economy that is updated annually. The information in this 90-page report includes political framework, business cultural tips, best prospects for U.S. businesses, macroeconomic forecasts, and more. Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)
   • Shorter market briefs and studies (2-10 pages) target sectors which are experiencing high growth levels and which represent the best prospects for U.S. exporters.
2. Contact your local U.S. Export Assistance Center for advice and support on exporting to Belgium. Contact a Trade Specialist Near You.
3. Contact your local Small Business Development Center (SBDCs). Starting a business can be a challenge, but there is help for you in your area. Small Business Development Centers (SBDCs) are partnerships primarily between the government and colleges/universities administered by the Small Business Administration and aims at giving educational services for small business owners and aspiring entrepreneurs.
4. Contact in-country business support organizations such as the American Chamber of Commerce in Belgium or American Chamber of Commerce to the European Union.
5. Make use of business matchmaking services.

Belgium: General Background

a.     Political background

With a population of 10.8 million people in a territory comparable to the state of Maryland, Belgium is a densely populated country, sitting on the cultural and linguistic border of Germanic and Latin Europe.  It is composed of the francophone Wallonia region to the south, the Dutch speaking Flanders region in the north, and the bilingual capital region of Brussels.  There is also a small enclave of German speakers. It is a peaceful, democratic nation comprised of federal, regional, and municipal political units: the Belgian federal government, the regional governments of Flanders, Wallonia, and the Brussels capital region, and 589 communes (municipalities).  Political tensions do exist between the Flemish and Walloons, but they are addressed in democratic institutions and played out in socially acceptable venues.  In December 2011, the new Di Rupo government came to power, after 540 days of political stalemate. This coalition government is made up of the Flemish and Walloon Socialists (with the latter providing the Prime Minister), the Flemish and Walloon Liberals, and the Flemish and Walloon Christian-Democrats.

The cultural, linguistic and economic differences of Belgium’s three regions have a strong influence on how business is conducted.  A good importer/distributor must be able to operate in all three regions.

Often referred to as “the capital of Europe”, the Belgian capital of Brussels is home to the headquarters of the European Union (EU) and of the North Atlantic Treaty Organization (NATO), as well as hundreds of international institutions, associations and multinational corporations.

b.     Market overview

Belgium enjoys one of the highest per capita incomes in Europe, with a relatively balanced income distribution, resulting in widely-spread purchasing power.  Belgium GDP was a total of 403.9 billion US dollars in 2010.  The U.S. ranks as Belgium’s 5th principal trading partner; with Belgium ranked 18th for largest U.S. trading partner.  Bilateral trade was worth over $41 billion for the year 2010. Moreover is Belgium successful in the international rankings.

-       TI Corruption Perceptions Index 2011, Rank 19

-       Heritage Economic Freedom Index 2011, Rank 32

-       World Bank Doing Business 2012, Rank 28

Linguistic diversity

It is important to remember that Dutch, French, and (to a very limited extent) German language divisions define consumer characteristics in the Belgian market.  At the industrial level, where price and technical factors are usually paramount, the language issue is not particularly significant.  At the consumer level however, issues such as labeling and marketing strategies take on greater weight.  In both instances, language can influence the personal relationships between buyers and sellers, so it is necessary to determine whether importers and distributors can service the entire Belgian market.

Infrastructure

Belgium’s central location in the wealthy region of Europe makes of the country an ideal gateway for exports to Europe.  It has a very well developed infrastructure and is regarded as an excellent transit and distribution center.  It has the second most extensive canal network in Europe and benefits from modern road and rail networks.  Antwerp is Europe’s largest container port for the US-EU trade; Liege, located 90 kilometers east of Brussels, is the third largest European river port, and Liege Airport is also an important center for freight with 339,431 metric tons sent in 2011. Brussels Airport is located only 15 minutes from the center of Brussels is also among the busiest by cargo traffic in Europe, sending a little over 475,000 tons of freight in 2011.  Within a radius of 300 miles, 140 million EU consumers can be reached representing 60% of Europe’s purchasing power.

Test market

Belgium is also seen as a test market.  Indeed, Belgium contains a few distinctly separate socio-demographic groups such as the Germanic Flemings and the Latin Walloons, governed by the same legal system.  The Belgian economy largely reflects the overall European economy and consumer, a mini-Europe that is easier to enter than starting with larger European markets.

c.      Market entry

U.S. exporters can penetrate the Belgian market through importers/distributors, wholesalers or specialized retailers, depending on their products and their company size.  Interested U.S. exporters will have to focus on innovation, quality and competitive pricing to successfully penetrate the market.

In support of U.S. commercial interests in Belgium, the U.S. Embassy in Brussels uses the combined resources of the various U.S. Government agencies to promote exports of U.S. goods and services.  It also supplies information on trade and investment opportunities and serves as an advocate for U.S. firms.  For specific requests, firms can contact the applicable Commercial Specialist at the U.S. Embassy in Brussels for counseling and market entry strategies tailored to their products and services (see: Export.gov - What can CS Belgium do for you?).

For more information, including an overview of challenges and opportunities of the Belgian market, relevant legislation, and information on Intellectual Property Rights, we refer you to the 2012 Country Commercial Guide for U.S. Companies prepared by the U.S. Commercial Service:  Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)

Export climate

Belgium is a highly competitive market in which the Belgian importer is looking for the best quality at the lowest price.  American products and technology are highly regarded but do not command higher prices than comparable products.  It is important to remember that while Belgium is a significant market in its own right, it is also the country of entry for many imports originating from many countries, with final destinations all throughout Europe.  This characteristic gives Belgian buyers access to a wide range of products at competitive prices.

U.S. companies are advised to quote prices on a Cost Insurance Freight (CIF) basis, surface or airfreight.  This is standard practice for most exporters, since it facilitates price comparison between EU suppliers.  Import duties are usually quoted on a delivered to warehouse basis.

Belgian importers are relatively small and tend to press for the most lenient credit terms possible, since they have fewer sources of inexpensive capital.  Belgian importers are also accustomed to being offered flexible payment terms.

For more information, including an overview of Belgian import tariffs, requirements and documentation, customs, standards, and U.S. export controls, we refer you to the 2012 Country Commercial Guide for U.S. Companies prepared by the U.S. Commercial Service:  Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)

Investing in Belgium

This section provides information for current and potential investors in Belgium.

Potential investors: Getting Started

If you are considering investment in Belgium, here are some steps you may wish to consider as you get started:

• Register with the U.S. Embassy – If you are planning a visit to consider investment, let us know by sending an email to the contact addresses on this page.
• Visit host country resources, such as Foreign Investment Offices:
      •    Invest in Wallonia
      •    Flanders Investment & Trade (FIT)
      •    Brussels Enterprise Agency (BEA) 
• Contact local U.S. business support organizations, such as the American Chamber of Commerce in Belgium or American Chamber of Commerce to the European Union. 
• Subscribe to our embassy Facebook page or Twitter feed.

Current investors: Staying Connected

If you are a current U.S. investor in Belgium, the U.S Embassy wants to stay in touch. Here are a few steps you can take to keep the channels of communication open:

• Register with the U.S. Embassy – If you are active in Belgium, let us know by sending an email to the contact addresses on this page.
• Add us to your mailing lists – we are always happy to stay informed
• Subscribe to our embassy Facebook page or Twitter feed
• Set up a meeting with our economic or commercial team to discuss any issues that arise

Investment climate

Belgium has traditionally maintained an open economy, highly dependent on international trade for its well-being. Since WWII, foreign investment has played a vital role in the Belgian economy, providing technology and employment.  Both the federal and the regional governments encourage foreign investment on a national treatment basis.  Foreign corporations account for about one-third of the top 3,000 corporations in Belgium.

Belgium's legal system is independent of the government and is a means for resolving commercial disputes or protecting property rights. Belgium is a member of the International Center for the Settlement of Investment Disputes (ICSID) and regularly includes provision for ICSID arbitration in investment agreements.  The government accepts binding international arbitration of disputes between foreign investors and the state.

There are no outstanding expropriation or nationalization cases in Belgium with U.S. investors.  There is no pattern of discrimination against foreign investment in Belgium.

Incentives and Performance Requirements

Since the law of August 1980 on regional devolution in Belgium, investment incentives and subsidies have been the responsibility of the regional investment agencies - Flanders Investment and Trade (FIT), the Office for Foreign Investment (OFI-AWEX) in Wallonia, and the Brussels Enterprise Agency.  In their investment policies, the regions emphasize innovation promotion, research and development, energy savings, environmental cleanliness, exports, and most of all, employment. Nonetheless, most tax measures remain under the control of the federal government, as do the parameters (social security, wage agreements) that govern general salary and benefit levels.  In general, all regional and national incentives are available to foreign and domestic investors alike.  Belgian investment incentive programs at all levels of government are limited by EU regulations, and thus are kept in line with those of the other EU member states.

In 2005, the Belgian Federal Finance Ministry proposed a new investment incentive program in the form of a notional interest rate deduction.  This was adopted by Parliament, and as of January 1, 2006, the new tax law permits a corporation established in Belgium, foreign or domestic, to deduct from its taxable profits a percentage of its adjusted net assets linked to the rate of the Belgian long-term state bond.  The law permits all companies operating in Belgium to deduct the "notional" interest rate that would have be paid on their locally invested capital had it been borrowed at a rate of interest equal to the current rate the Belgian government pays on its 10-year bonds.  This amount is deducted from profits, thus lowering the sum on which Belgian corporate taxes (currently 33.99%) are calculated.  In 2011, the notional interest was set at 3.8 percent for corporations.  The applicable interest rate is adjusted annually, but will never be allowed to vary more than one percent (100 basis points) in one year nor exceed 6.5 percent.

Performance requirements in Belgium usually relate to the number of jobs created.  There are no known cases where export targets or local purchase requirements were imposed, with the exception of military offset programs, which were reintroduced by the Verhofstadt II government in 2006.  While the government reserves the right to reclaim incentives if the investor fails to meet his employment commitments, enforcement is rare.

Conversion and transfer policies

Payments and transfers within Belgium and with foreign countries require no prior authorization. Transactions may be executed in Euros, as Belgium is part of the European Monetary Union since 1998, as well as in other currencies.

Right to Private ownership and establishment

Both domestic and foreign private entities have the right to establish business enterprises.  This right is well established in Belgium's constitution and in law.  The right to acquire or sell interests in business enterprises is similarly protected by law.
 
No restrictions in Belgium apply specifically to foreign investors.  Foreign interests may enter into joint ventures and partnerships on the same basis as domestic parties, except for certain professions, such as doctors, lawyers, accountants and architects.

Efficient Capital Markets and Portfolio Investment

Belgium has in place policies to facilitate the free flow of financial resources. Credit is allocated at market rates and is available to foreign and domestic investors without discrimination.  Belgium is fully served by the international banking community and is implementing all relevant EU financial directives.

Belgium is one of the countries with the highest number of banks per capita in the world; nonetheless it is a highly concentrated banking market, with about 80 percent of bank deposits held by the five largest banks.

Belgium also has a well-established stock market. At the end of 2000, the Brussels stock market merged with the Paris and Amsterdam bourses into Euronext, a Pan-European stock-trading platform.  In 2006, Euronext and NY Stock Exchange shareholders voted to merge the two exchanges.  On Euronext, a company may increase its capital either by capitalizing reserves or by issuing new shares.  An increase in capital requires a legal registration procedure.  New shares may be offered either to the public or to existing shareholders.

In Belgium, there are many cases of cross-shareholding and stable shareholder arrangements, but never with the express intent to keep out foreign investors.  Likewise, anti-takeover defenses are designed to protect against all potential hostile takeovers, not only foreign hostile takeovers.

State owned enterprises

Belgium does not have any State Owned Enterprises (SOE) that exercise delegated government powers.  Private enterprises are allowed to compete with public enterprises under the same terms and conditions, but since the EU started to liberalize network industries such as electricity, gas, water, telecoms and railways, there have been regular complaints in Belgium about unfair competition from the historical incumbents, i.e. the former state monopolists.

Bilateral Investment Agreements

Belgium has no specific investment agreement with the U.S.; investment-related issues are covered in the 1951 Treaty of Friendship, Enterprise and Navigation.

For more information, including an overview of the start-up business climate, franchising, direct marketing, joint ventures/licensing, and Belgian, EU and NATO tenders, we refer you to the 2012 Country Commercial Guide for U.S. Companies prepared by the U.S. Commercial Service: Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)

Working in Belgium

In this section you will find information on business visas, travel advisories, and anti-corruption tools.

a.     Payments

The four main Belgian banks are ING, BNP Paribas-Fortis, KBC and Belfius, which all have correspondent US banking arrangements.  A full range of financial services is offered, with special account facilities for non-Belgian nationals.  Banking services are also available from the Post Office.  Banking hours are normally 9.00 a.m. to 4.00 p.m., Monday through Friday.

The main bankcard used in Belgium is the Mister Cash-Bancontact debit card, issued along with a PIN number upon opening a bank account in Belgium.  In order to open an account, proof of identity, such as a passport, is required.  The Bancontact card can be used to withdraw cash at ATMs, and to pay for almost anything in Belgium, from a newspaper, parking meter, gasoline, or a loaf of bread from the bakery.  Credit options are also available on application.  All bank ATMs in Belgium accept the Bancontact card; some accept MasterCard, Visa and other credit and debit cards.  The major credit cards are generally accepted in stores, restaurants, and hotels.

b.     Visa requirements

American citizens do not need a visa when they travel to Belgium for business or for personal travel.  Their stay in the Schengen area should not exceed 90 days within a six month period.  The American visitor will need to present a valid American passport (that does not expire before the end of the visit), proof of sufficient funds, and a return airline ticket.

A citizen of the United States of America who intends to reside in Belgium for a period longer than 90 days, or for a succession of periods totaling more than 90 days per six month period, must first obtain a temporary residency visa. When the applicant seeks to engage in a professional activity on an independent basis, the required residency visa can only be issued upon the presentation of a professional card and supporting documents. The professional card is applied for through the Embassy or Consulate General and must be approved before the Embassy can issue a visa.

c.      Travel advisories

Make sure to check the current State Department travel advisory http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html for Belgium.

i.      Customs

Belgium is six hours ahead of Eastern Time in the United States (Greenwich Mean Time [GMT] + 01:00 Standard Time).

Business Hours:

8.30 am to 5.30 pm - Offices (Monday to Friday with 30-60 minutes for lunch)
9.00 am to 3.30 pm - 5.00 pm - Banks (Monday to Friday)
9.00 am to 6.00 pm - Shops (Monday to Saturday and until 9.00 pm on Fridays)

Typical hours for museums are 10.00 am to 5.00 pm, six days a week, and are closed on either Monday or Tuesday.  Belgians usually have lunch between 1.00 pm and 3.00 pm and dinner, their main meal, between 7.00 pm and 10.00 pm, with peak traffic around 9.00 pm.  Some stores close from noon to 2.00 pm, but stay open until 8.00 pm to compensate.  In many towns, stores will stay open until 9.00 pm one evening a week, normally Fridays.

Business appointments are necessary and the person with whom you are meeting will generally decide the time.  Avoid scheduling business trips to Belgium during July and August, the week before Easter, and the week between Christmas and New Year’s, as they are prime vacation times.  It is expected to arrive on time to an appointment, as arriving late may create the impression of unreliability.  Meetings are generally formal but first appointments are more social than business oriented, since Belgians prefer to do business with people they know.  It is best not to remove your jacket during a meeting.

Business cards are exchanged without formal ritual and it is recommended to have one side translated into Dutch or French (depending on the area of the country where you are doing business).  If you have meetings in both the Flemish-speaking and Francophone areas, it is beneficial to have two sets of business cards printed, and to be careful to use the appropriate ones. It is important to use the appropriate language and to avoid speaking French to a Fleming and vice versa. English is generally widely spoken within the business community.

ii.      Safety and security

Belgium remains largely free of terrorist incidents.  Belgian law enforcement and security officials, in close cooperation with neighboring countries, maintain a solid anti-terrorism effort and a peaceful environment for tourists and business.  However, like other countries that are members of the Schengen

Agreement of free cross-border movement, Belgium’s open borders with its European neighbors allow the possibility for terrorist groups to enter/exit the country with anonymity.

Prior police approval is required for public demonstrations in Belgium, and police oversight is routinely provided to ensure adequate security for participants and passers-by.  Nonetheless, situations may develop that could pose a threat to public safety.  U.S. citizens are advised to avoid areas where public demonstrations are taking place.

Belgium remains relatively free of violent crime, but low-level street crime is common. Transportation hubs, like the Metro (subway) and train stations, are also frequented by thieves, who take advantage of disoriented travelers carrying luggage.

Americans living and traveling abroad should regularly monitor the Department of State’s internet web site at http://travel.state.gov, where the current Worldwide Caution Public Announcement, and the Belgium Consular Information Sheet can be found.

iii.      Health

Good medical facilities are widely available in Belgium.  The large university hospitals can handle almost every medical problem.  Hospitals in Brussels and Flemish-speaking Flanders will probably have English-speaking staff.  Hospitals in French-speaking Wallonia may not have staff members who are fluent in English, however.  The Embassy Consular Section maintains a list of English-speaking doctors, which can be found on the Embassy web site at http://brussels.usembassy.gov/medical_facilities.html

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s web site.

iv.      Language

Belgium has three national languages: Dutch (also referred to as Flemish), French, and German.  The divisions are as follows: Dutch (official) 58%, French (official) 41%, and German (official) less than 1 percent. 

English is spoken and understood throughout most of Belgium. In Flanders, the northern region of Belgium, Dutch is the predominant language while in Wallonia, the southern region, most people speak French.  Residents in a small section of Belgium near Germany speak German as their primary language. Brussels, the center region, is officially bilingual, speaking both Dutch and French.

FCPA

The Foreign Corrupt Practices Act (FCPA) is an important anti-corruption tool designed to discourage corrupt business practices in favor of free and fair markets.  The FCPA prohibits promising, offering, giving or authorizing giving anything of value to a foreign government official where the purpose is to obtain or retain business.  These prohibitions apply to U.S. persons, both individuals and companies, and companies that are listed on U.S. exchanges. The statute also requires companies publicly traded in the U.S. to keep accurate books and records and implement appropriate internal controls.   

It is important for U.S. companies, irrespective of their size, to assess the business climate in the relevant market in which they will be operating or investing, and to have an effective compliance program or measures to prevent and detect corruption, including foreign bribery.  U.S. individuals and firms operating or investing in foreign markets should take the time to become familiar with the relevant anticorruption laws of both the foreign country and the United States in order to properly comply with them, and where appropriate, they should seek the advice of legal counsel.

U.S. firms need to comply with the following agreements and treaties:

• U.S. Foreign Corrupt Practices Act
• OECD Antibribery Convention
• UN Convention
• OAS Convention
• Council of Europe Criminal Law and Civil Law Conventions
• Free Trade Agreements

For the complete, Belgium-specific 2012 Country Commercial Guide for U.S. Companies prepared by the U.S. Commercial Service, please click here:  Doing Business in Belgium: 2012 Country Commercial Guide (PDF - 566 KB)

More information on the FCPA can be found here:  http://www.fcpa.us/

A party to a transaction seeking to know whether a proposed course of conduct would violate the FCPA can take advantage of the opinion procedure established by the statue.  Within 30 days of receiving a description of a proposed course of conduct in writing, the Attorney General will provide the party with a written opinion on whether the proposed conduct would violate the FCPA.  Not only do opinions provide the requesting party with a rebuttable presumption that the conduct does not violate the FCPA, but DOJ publishes past opinions which can provide guidance for other companies facing similar situations.

More information on the DOJ opinion procedure can be found here: http://www.morganlewis.com/
documents/fcpa/FCPAOpinionProcedureReleases.pdf