ITA Ensures Market Access for U.S. Distilled Spirits Companies in Romania

ITA Ensures Market Access for U.S. Distilled Spirits Companies in Romania 

The Department of Commerce’s International Trade Administration (ITA) helped the Distilled Spirits Council of the United States (DISCUS) overcome two foreign trade barriers that restricted association members’ operations in Romania’s distilled spirits market.

Why it matters: 

If the United States had not acted to ensure that Romania treated imported distilled spirits the same as domestic products, U.S. distilled spirits producers would continue to be discriminated against in the Romanian market.

The Problem:

The Government of Romania issued two regulations, which discriminated against U.S. distilled spirits companies. The first measure, which became effective in September 2010, dictated that imported excisable goods, such as distilled spirits, could no longer be stored in duty-free bonded warehouses.  The second measure, which became effective in April 2012, required importers of spirits to pay excise tax the day after goods were received in their warehouse.  Local spirits producers, on the other hand, were only required to pay the tax between 25 and 55 days after the goods left  the warehouse.  Both of these regulations treated imports less favorably than domestic products, with negative effects for U.S. companies in this sector.

The Solution:

From the moment they were introduced, ITA engaged with the Romanian Government on these issues. Most notably, ITA’s concerns with these practices were raised with the Romanian Minister Delegate for Business Environment.  Moreover, ITA issued a “non-paper” to the Romanian Embassy that included detailed descriptions of these issues and requests for resolution.  In December 2012, the Romanian Government issued a directive, which took effect on January 1, 2013, that eliminated these discriminatory practices and allowed U.S. distilled spirits companies to follow the same excise duty requirements as local spirit producers and to once again use duty-free bonded warehouses.

Working closely with U.S. companies, ITA creates, expands, and defends market access for U.S. goods and services overseas through the Trade Agreements Compliance Program.  “We promote policy that develops a more favorable business climate for U.S. companies in global markets; we employ commercial diplomacy to resolve trade barriers; and we leverage our bilateral and multilateral trade agreements to ensure our trading partners live up to their commitments so that our businesses can compete on a level playing-field.” - Assistant Secretary for Market Access and Compliance, Michael C. Camuñez.