PwC: Romania Could Become Major Trade Route

04.18.2011 By Andrei Circhelan

Romania could become a major trade route, through the Constanta harbor on the Black Sea coast, but first it needs measures such as postponing the payment of value added tax for all importing companies, regardless of volumes, audit and consultancy firm PricewaterhouseCoopers said Monday.

Romania could become a major trade route, through the Constanta harbor on the Black Sea coast, but first it needs measures such as postponing the payment of value added tax for all importing companies, regardless of volumes, audit and consultancy firm PricewaterhouseCoopers said Monday.

"Romania has the potential to become, through the Constanta harbor, Central and Eastern Europe's main entry gate for goods coming from Eastern Asia and the Middle East, and thus to become one of the major trade routes of the future," said Peter de Ruiter, Partner, Tax and Legal Services Leader, PwC Romania.

However, according to the company official, in order to achieve this goal, Romania needs to make several changes in its legislation and render itself more attractive for companies.

"In order to maximize its competitive geographical advantages, besides improving its infrastructure, the country needs to implement (…) import VAT deferment regardless of the import's value, the adoption of the Global Fiscal Representative system, and the offering of custom duty facilities such as the Authorised Economic Operators," de Ruiter added.

Transporters and logistics companies will need to adapt to changes in trade route dynamics, in order to make full use of profit opportunities, the PwC report notes.

"The 'first mover' advantage is likely to be important, and establishing a presence before your competitors on a route that becomes a significant global trade flow is crucial for the development of Romania," de Ruiter said.