Bulgarian retailers seek to postpone "disruptive" border tenders

Tina Milton

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Six retailers are appealing to the supreme administrative court to delay several tender competitions until a new duty-free bill clarifying selection criteria is enacted

Sofcom, Corecom-Princess, BNK, Panchatantra, Deneb and Bellatour claim that the details and requirements for participants in the current tenders are unclear, and could lead to subjective, incorrect appointments being made by the finance ministry. A local court in Kostinbrod has already ruled that the current tenders are illegal and has issued an order to call off the competitions, although the finance ministry is appealing the decision in front of the supreme court.

The dispute stems from an omission in the current law governing the award of duty-free licences, which does not include reference to another law describing the selection criteria for all government-issued business licences. The new bill, which operators hope will be passed by the end of the year, accommodates the law.

Bulgarian Duty Free Association president Radostin Genov told RavenFox.com that the minister's decision to call the tender before the new legislation is enacted has been "the biggest economic scandal in Bulgaria" for the past fortnight, and that his decision would cause severe disruption to the duty-free market.

"We are insisting on a competition based on the law, not on unclear criteria that could lead to the subjective determination of winners. This is especially important given the period of governmental crisis that Bulgaria is experiencing."

Genov added that he believed the retailers' position is based on a European approach to business, and that Bulgaria should be adopting the stance if it hopes to join the European Union.

The retailers are petitioning the court to extend their existing licences until the new duty-free bill is passed. A decision from the supreme administrative court is expected in mid-September.