Import regulations and customs duties  - Distribution - Transportation of goods - Standards - Patents and brands

Import regulations and customs duties

Regulations
In accordance with its European Union membership, Portugal applies the European Union (EU) rules that are in force in all European Union countries. While the EU has a rather liberal foreign trade policy, there is a certain number of restrictions, especially on farm products, following the implementation of the CAP (Common Agricultural Policy): the application of compensations on import and export of farm products, aimed at favouring the development of agriculture within the EU, implies a certain number of control and regulation systems for the goods entering the EU territory.
Moreover, for sanitary reasons, regarding Genetically Modified Organisms (after being allowed in the European territory), their presence should be systematically specified on packaging. Beef cattle bred on hormones is also forbidden to import.
The BSE crisis (often called the "mad cow disease") urged the European Authorities to strengthen the phytosanitary measures to make sure of the quality of meats entering and circulating in the EU territory. The principle of precaution is now widespread: in case of doubt, the import is prohibited until proof is made of the non-harmfullness of products.

Distribution

The modern distribution market started in Lisbon in 1961 with the opening of the first supermarket. Since then, the market has grown considerably, thereby eliminating a number of local small stores.

The Business to Business (B to B) market
The regions of Lisbon and Porto constitute an important part of the economic activity of the country. Portugal is a country that is attracting more and more investors because of its economic vitality and the numerous advantages granted by the government to foreign operators. However, foreign direct investment in 2004 was worth only 1.1 billion dollars as against 6.55 billion dollars in 2003, which is a decline of 83%.
ICEP, the Portuguese Agency for Development, is responsible for providing information and services to foreign investors.
Sectors such as construction, the environment, medical equipment, information technology; communications, fishing, and transportation are the growth oriented sectors at the moment. One of the solutions often advised as the first approach toward entering this market is to appoint a local agent who can also respond to public tenders.

The franchise market is constantly developing in the country. There were 370 franchise networks and more than 7,800 franchise outlets in the country at the end of 2003. 49.5% of all franchises were clothing stores (Zara, El Corte Ingles, Cortefiel, etc) and 40% were service establishments. 41% of all franchises are of Portuguese origin, 24% Spanish, 11% American , 8.3% French, and 4.3% are of Italian origin.

Transportation of goods

By road
The road network extends over 9,678 km of main roads, 28,292 km of secondary roads, 25,793 km of small regional roads, 587 km of highways and 685 km of freeways. The road network is presently in a poor state and requires considerable improvements especially in the North and South of the country. Until now the Portuguese government and the Department for Ground Transportation (DGTT Direcçao Geral de Transportes Terrestres), used to handle road infrastructure to the detriment of others. They now focus on the modernisation of the same structures thanks to the grant of European aids for the development of the country's infrastructures.

By rail
The rail network extends over 3,184 km, of which 451 km are single tracks. The former national railroad company, the CP (Caminhos de Ferro Portugueses) is responsible for the rail transportation and infrastructure except for Lisbon and Porto.
Lisbon and Porto are connected with an electrified double track of a very good quality. The railway transport dominates goods transportation (1,825.7 tons km in 1994). Important investments are now planned - thanks to direct financing of the European Union to improve the electrification and the rehabilitation of long distance main routes: Lisbon - Porto, Lisbon-Algarve and towards Spain in the North and the West, and also to develop suburban services with subways and regional transport. In that sense, Portugal remains a very good opportunity for European companies specialised in these sectors.

By sea
The main ports are Lisbon, Leixoes in Porto, Sines and Setùbal-Sesimbra. The secondary ports are Aveiro, Funchal (Madeira) and Ponta Delgada. In order to cope with the lack of infrastructure and competition from Northern Europe, a White Paper was brought up in the beginning of 1997 by the Portuguese authorities. It foresees some revision of the status of the port administration, the encouragement to the private sector and modernisation of port infrastructure.

By air
The main airports are Portela ( Lisbon), Francisco Sa Carneiro (Porto) and Faro ( Algarve), followed by Santa Catarina (Madeira) and Santa Maria. In 1999, 109,000 tons of freight were handled by Lisbon's airport, which recorded a drop of 2.3% as compared to that of 1998.

Standards

The Portuguese Qualitative (IPQ) institute is the body responsible for almost all normalisation procedures. However, some products are still bound to other organisations, such as the Institute of Electromechanical engineering and Energy ( IEE) and the Institute for the Protection of the Food-processing Products.
EU standards are compulsory.
The ISO 9000 standard is optional, but remains a proof of competitiveness.

Patents and brands

The Body responsible for the protection of intellectual property is theInstituto Nacional da Propriedade Industrial.
Portugal signed the agreement of Paris regarding the protection of industrial property and the agreement establishing the World Intellectual Property Organisation (WIPO). In terms of patents, Portugal ratified the agreement of Munich for European patents, as well as the treaty of co-operation in patents ( PCT).
With regards to trademarks, Portugal signed the agreement of Madrid.