Romanian border retailers given 90 days until closure

John Rimmer

4-Jul-2006

A governmental decree will force Romania's border duty-free business to close in 90 days' time

The Romanian government has approved a proposal to close the country's border duty-free stores within 90 days. The move, intended to prepare Romania for accession to the EU on January 1 2007, has caused alarm among retailers who hoped to continue trading until the end of the year (RavenFox.com June 27).
 
The government has confirmed its intention to close all border stores, even those neighbouring non-EU countries Serbia, Ukraine and Moldova.
 
Through its Heinrig Impex subsidiary Gebr Heinemann runs 12 border stores in Romania. The German company's co-owner Claus Heinemann told RavenFox.com: "We are naturally very worried, especially as the 90-day regulation means we can't supply the shops any more. We have a strong, highly motivated team at Heinrig and we hope the government will change its position."
 
Heinemann argued that the Romanian authorities should study the model adopted in Greece, where the government allowed retailer Hellenic Duty Free Shops to continue offering duty-free to travellers crossing into non-EU countries.
 
Other border retailers contacted by RavenFox.com were doubtful that the Romanian government would allow operators to offer duty-paid goods once the 90-day period expires.
 
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(27-Jun-2006) - A proposal under discussion by the Romanian government could herald the early closure of the country's border stores while reinstating airport duty-free
(15-Jul-2006) - ROMANIA. The Romanian government has approved a proposal to close the country's border duty-free stores within 90 days
(1-Jul-2006) - ROMANIA. The Romanian government is close to approving a proposal to close the country's border duty-free stores earlier than planned
(17-Sep-2002) - ROMANIA. The Romanian Transport Ministry has issued a decree abolishing duty- and tax-free sales at the country?s airports. The ?emergency governmental ordinance?, issued on September 11, restricts duty-free activity to border stores, airlines and diplomatic sales. It gave no reasons for the move, but DFNI understands the official motive behind the decision was Romania?s preparations for EU membership, which the country is not due to attain until 2007.
(15-Jul-2006) - What bureaucrats give with one hand, they take away with the other. So it will doubtless prove in Romania, where the authorities' decision to close all duty-free border shops within less than three months is likely to coincide with a move to restore airport duty-free in the country, almost four years after it was banned in controversial circumstances (DFNI September 15 2002)