EuroCommerce Overview of

Single Market Barriers in the

EU

Date: 30 January 2015

Name: Ilya Bruggeman, Adviser, Internal Market Contact: T +32 2 738 06 41, bruggeman@eurocommerce.eu

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Single Market Barriers The Single Market is still far from complete. In many aspects the European Union is still a mosaic from 28 different national markets. This overview aims to provide some examples of barriers that retailers experience in the Single Market. We ask the Member States and the

Commission to pick up these identified barriers and resolve them. The best way for the retail sector to provide jobs and growth is a business-friendly environment where there is full competition and consumers can enjoy a wide range of high quality and safe products. The main problems that the retail sector still faces are: flawed implementation and application of the Services Directive that hinders the

freedom of establishment, the free movement of services and the freedom to provide a

service; national trade laws that hinder business in the way they do business. Often these laws

hamper competitiveness of the sector, are protectionist and undermine business models that are genuine and legal business models in other Member States. Particularly

concerning are developments in the Central and Eastern Europe; national requirements that hinder the free movement of goods. Member States don’t

notify new national technical requirements according to the procedure laid down in Directive 98/34/EC, don’t apply the principle of mutual recognition in non-harmonised areas, gold-plate directives, etc.

EuroCommerce welcomes an open dialogue with the Commission, the European Parliament and the Member States to improve the Single Market for Retail. This document is updated on a regular basis.

EuroCommerce and the commerce sector EuroCommerce represents the retail, wholesale and international trade sectors in Europe. Its membership includes commerce federations and companies in 31 European countries. Commerce plays a unique role in the European economy, acting as the link between manufacturers and the nearly 500 million consumers across Europe over a billion times a day. It is a dynamic and labour-intensive sector, generating 11% of the EU’s GDP. One company out of three in Europe is active in the commerce sector. Over 99% of the 5.5 million companies in commerce are small and medium-sized enterprises. It also includes some of Europe’s most successful companies. The sector is a major source of employment creation: 29 million Europeans work in commerce, which is one of the few remaining job-creating activities in Europe. It also supports millions of dependent jobs throughout the supply chain from small local suppliers to international businesses.

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Bulgaria ................................................................................................................... 5

Value Added Tax Law ................................................................................................ 5

Czech Republic ......................................................................................................... 5

Significant Market Power Act ..................................................................................... 5

Government Decree No 320/2014 Coll on laying down notification obligations to recipients of certain types of food in the point of destination ........................................................ 6

Government Decree No 212/2014 Coll on laying down notification obligations to recipients of animal products in the point of destination .............................................................. 7

Food Act ................................................................................................................. 7

Germany .................................................................................................................. 8

State planning laws for state plans/state planning programs and regional plans ............... 8

Greece ..................................................................................................................... 8

National and local planning laws ................................................................................. 8

Hungary ................................................................................................................... 9

Amendment Act No. XLVI of 2008 on food chain safety ................................................. 9

Restriction establishment - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of undertakings in the interest of fair market practice .......... 9

Forced Closure - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of undertakings in the interest of fair market practice ............ 10

New “Plaza Stop” Act / Build Environment Act ............................................................ 10

“Plaza Stop” Act ..................................................................................................... 11

Act XXII of 2014 on Advertisement Tax ..................................................................... 11

Act XCV of 12 October 2009 on the Prohibition of the Unfair Distribution Practices conducted against suppliers of agricultural and food industry products .......................... 11

Act of 20 December 2010 on change of certain laws affecting the food retail sector ........ 12

Significant Market Power - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of undertakings in the interest of fair market practice ........ 13

Hungarian National Holiday Foundation (MNÜA) ......................................................... 14

Italy ....................................................................................................................... 14

Ministerial Decree for labelling October 14, 1981 ........................................................ 14

Luxembourg ........................................................................................................... 14

Territorial Supply Constraints................................................................................... 14

Poland .................................................................................................................... 15

Polish Competition Act ............................................................................................ 15

Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products ............................................................................................................... 15

Act of 27 July 2002 on specific terms and conditions of consumer sale and amendments to the Civil Code ........................................................................................................ 16

Romania ................................................................................................................. 16

Act 312/2009 of 15 October 2009 on trade of foods (in force since 19 November 2009, reformed in 2010) .................................................................................................. 16

Proposal amendment of the Sales Law ...................................................................... 17

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Slovakia ................................................................................................................. 17

Food Act (152/1995 Coll) ........................................................................................ 17

Law on “Inappropriate Conditions in Business Relations between Purchasers and the Suppliers of Food” .................................................................................................. 18

Labelling Ordinance no 21 of 21st August 1992 regarding the protection of consumers ... 19

Spain ...................................................................................................................... 19

National and local laws on establishment................................................................... 19

Royal Decree 928/1987 on labelling of Textile products .............................................. 20

United Kingdom ..................................................................................................... 21

The Furniture and Furnishings (Fire) (Safety) Regulations 1988 ................................... 21

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Bulgaria

Value Added Tax Law

Following EU law, any built-in assets are taxable according to their value on the day of selling/cessation. In Bulgaria, the base-line is now the original value of the assets.

This new law burdens retailers with high

costs that could not be anticipated beforehand.

Status Amendment SG No. 94/2012 in force since 1 January 2013 Ask The Bulgarian government should bring

the law in line with directive 2006/112/EC.

The Commission should ask the Bulgarian government to do so, or take the necessary steps to make Bulgaria compliant with directive 2006/112/EC.

Czech Republic

Significant Market Power Act

Act No. 395/2009 of 9 September 2009 on significant market power in the sale of agricultural products and food products and the abuse thereof.

Amendment current law Any retailer or supplier in the food supply

chain with a turnover higher than CZK 5 billion is considered to have significant

market power regardless of other factors fines up to 10% of revenue of company

or group no bonuses, not even for economically

independent companies no distinction between economical

dependency breaches do no longer have to be

considered significant and permanent - all and any breaches can be fined

Current Law - ban on amongst others: implementation of supplier audits by

retailers

the sale of goods below the purchase price with few exceptions

requirement of product analyses and tests by the retailer (exception: own brand suppliers)

the agreement on bearing of costs for

listing of a product by the suppliers a return of products (except for defects

and complaints) Payment targets are set for all supplier

Status Current law in force since 1 February

2010 Amendment being discussed within the

government Asks the Czech government should repeal the

draft amendments put forward in 2014 the Czech government should inform the

Commission on the way forward the Czech government should hear and

involve all stakeholders in the legislative process including retailers

the Czech government should take into account the impact assessment of CRS economics

the Czech government should ensure

legal certainty for investments and retailers’ business model

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contracts at 30 days after delivery. Companies whose annual financial statement must be, according to law, annually reviewed

by an auditor must publish information on payment terms for their suppliers. Breaches will trigger fines of up to 10% of the net turnover or 10 million CZK (€388,000).

In summary: big retailers are discriminated no objective definition of market

power that takes all factors into consideration (not only a random

turnover threshold)

retailers that are seen to possess market power are not allowed to demand any fees from their suppliers for delivered services

EU Pilot (2146/11/MARK) was closed since the government announced to repeal the law.

However, a current draft revision aggravates the situation: businesses can no longer prove they do

not have absolute market power deletion of disadvantageous effects of an

offence on the relevant market inclusion of suppliers and buying alliances

CZ competition authority claims results of

an analysis as grounds for the changes, even though the mentioned study concludes that the law has to be repealed.

Government Decree No 320/2014 Coll on laying down notification obligations to recipients of certain types of food in the point of

destination Notification procedure fruits & vegetables

retailers & wholesalers have to notify 24 hours upon import of fresh fruit and vegetables the origin of the product – even from within the EU.

Was before 48 hours and including price. The notification should have been

notified according to the procedure laid

down in directive 98/34/EC The notification procedure hinders the

free movement of goods in an disproportionate way

The procedure is creating unnecessary administrative burdens and high costs,

without clear benefits for consumers

Status Entered into force 1 January 2015

Asks The Commission should asses of the

decree is in line with EU law

The Czech Republic should suspend the obligation and notify it according to the procedure laid down in directive

98/34/EC

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Government Decree No 212/2014 Coll on laying down notification obligations to recipients of animal products in the point of

destination Notification procedure animal products

Retailers & wholesalers have to notify 48 hours upon import of animal products the origin and price of the product – even from within the EU.

The notification should have been notified according to the procedure laid down in directive 98/34/EC

The notification procedure hinders the free movement of goods in an disproportionate way

The procedure is creating unnecessary administrative burdens and high costs, without clear benefits for consumers

Status

Entered into force 14 October 2014 Asks The Commission should asses of the

decree is in line with EU law The Czech Republic should suspend the

obligation and notify it according to the

procedure laid down in directive 98/34/EC

Food Act Act 110/1997 on foodstuff and tobacco products and on amendments to certain related acts

Amendment 136 / 2014

Reporting obligations origin food products: Retailers with a turnover > CZK 5 billion

are obliged to disclose a list of the 5 countries of which the highest

percentage of food products is sold in the Czech Republic, including the

percentage, at the entrance of the store, and report to the government.

distortion of the facts: smaller retailers have less products and thus higher percentages of nationally sourced

products; the law implicitly discriminates foreign retailers and paints the picture that foreign retailers do not offer and promote many locally sourced food products

should have been notified according to

the EU 98/34 procedure Modelled after Slovak Food Law

Status The reporting obligation at the entrance

is in force since 1 January 2015. Asks

The Czech government should respect the free movement of goods

The Czech government should abolish the reporting obligation for the origin of foods

The Czech government should notify all technical requirement imposed on

products according to the EU 98/34 procedure.

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Germany

State planning laws for state plans/state planning programs and

regional plans Establishment restrictions – urban/commercial planning:

businesses face problems with urban planning rules at national/regional level (conflict with freedom of establishment)

Regions can impose sales space

limitations for city centre relevant range. Every municipality can decide on the range list.

The Commission should: ensure that restrictions to the freedom

of establishment are proportionate, appropriate and necessary, and that city centre relevant range limitations, arbitrary size limits, planning permits

that limit retail establishment are avoided

act more rapidly on infringement cases

by strengthening enforcement control and speeding up infringement procedures

carry out regular checks that national legislation is in compliance with EU legislation and the principles of the

Single Market the Commission should act against the

economic needs test

municipalities can restrict the establishment of retail outlets of more than 800 m2 of sales space because the can have a negative impact on the supply structure for consumers in the region.

this is an economic needs test it restricts development of full range food

retail concepts. It thereby distorts the market without clear benefits for consumers the Commission should act immediately to ban this economic needs test

Greece

National and local planning laws Establishment restrictions – urban/commercial planning: necessary to obtain an approval of

environmental terms in order to obtain a building permit for projects over 20.000

m2 retail shops above 1500 m2 need an

approval from the region and/or the municipality in order to operate outside

the greater Athens and Thessaloniki areas

The Commission should: ensure that restrictions to the freedom

of establishment are proportionate, appropriate and necessary, and that city centre relevant range limitations,

arbitrary size limits, planning permits that limit and new products, are avoided

set up an expert group (with retail expertise) to develop guidelines aimed at

harmonising interpretation and practices act more rapidly on infringement cases

by strengthening enforcement control

and speeding up infringement procedures

carry out regular checks that national legislation is in compliance with EU legislation and the principles of the Single Market

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Hungary

Amendment Act No. XLVI of 2008 on food chain safety Old situation: since 1 January 2012, food

traders (both retailers and wholesalers as participants of the food supply chain) are obliged to pay an ‘official control fee’ of 0,1% of their turnover.

New situation: In the amended law the

fees are significantly raised and especially target large foreign retailers.

- The first 500 million HUF turnover exempt

- Between 500 million HUF and 50 billion HUF 0,1 %

- Between 50 billion and 100 billion HUF 1%

- Between 100 billion and 150 billion HUF 2%

- Between 150 billion and 200 billion HUF 3%

- Between 200 billion and 250 billion

HUF 4% - Between 250 billion and 300 billion

HUF 5% - Above 300 billion HUF 6%

The fee for official controls of food products applies to the total turnover of

food & non-food of a business

Because of the staggered rate mainly large foreign retailers pay high fees

The yearly costs for large foreign retailers are estimated at about EUR 100 million.

Status

The act is in force since 1 January 2012.

The new amendment has entered into

force on 1 January 2015

Asks

The Commission should open an

infringement procedure as this law is

clearly in violation with EU law

In the case businesses have to pay for

official controls these should be based on

cost-sharing, not exceed the actual cost

of the controls and based on transparent,

risk based criteria

The Hungarian government should await

the outcome of the discussions on

European level about the costs of official

controls as part of the draft Official

Controls Regulation

Restriction establishment - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of

undertakings in the interest of fair market practice Restrictions freedom of establishment World Heritage areas

Definition of hypermarkets and supermarkets was extended with

wholesale activity World Heritage: it is prohibited to

establish and operate discount stores (400 m2 and above), supermarkets (2500-5000 m2) or hypermarkets (5000

m2 and above) on places belonging to the World Heritage defined by a separate law. Current stores may be operating until January 1st, 2018.

Status

Into force since 1 January 2015

Asks

The Commission should analyse if the

restrictions to establishment are lawful,

justified and proportionate and if the

policy objectives of this law cannot be

met by other less burdensome means.

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Forced Closure - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of undertakings in the

interest of fair market practice Discriminatory rules against foreign

retailers Profit rule:

Commercial businesses that: a. generate more than half of its

revenues from the sale of fast-moving consumer goods;

b. have net sales revenues in two

consecutive business years of at least HUF 15 billion ( EUR 50 million) per year;

c. have zero or negative balance sheet profit in both years may not conduct any retail activity after the approval of the profit report of the second

business year as defined in section b) Exception: The above rule is not

applicable in the first four business years after the establishment of the company.

No exemption in the draft bill for Hungarian retailers. Yet, Hungarian

chains operate as separate franchises, which could allow the parent chain to bypass the rule. However, all multinational retail chains operating in Hungary have annual revenues above HUF 15 billion a year.

The new legislation distorts business

competition in the Single Market and can become a trade barrier and hinder investments.

Status

Amendment on the Act adopted entered into force on 1 January 2015 Ask The Hungarian government should

withdraw the draft law in question, since it is disproportionate and compels

companies that do not generate profit within two years.

The Hungarian government should

instead create legal certainty for all businesses and ensure fair competition within the retail market.

The Commission should open an

investigation to assess if the law is in line with EU law.

New “Plaza Stop” Act / Build Environment Act

Restrictions retail establishment Government becomes entitled to issue a

decree setting out the technical,

environmental, etc. conditions to constructing retail units with a surface greater than 400m2

In practice, this could a. hinder retailers to construct new

supermarkets or hypermarkets on

lands already purchased;

b. for the same reason, lower the market value of land already purchased;

c. generally hinder retailers to construct further supermarkets or hypermarkets; and

d. hinder retailers to

extend/develop/refurbish already existing supermarkets or hypermarkets.

Status Law is in force since 1 January 2015.

Asks The Hungarian government should make

sure that the application is of the law is justified and proportionate.

The Commission should include this law in the ongoing infringement procedure

regarding the so-called “plaza stop” Act.

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“Plaza Stop” Act

Establishment restrictions – urban/commercial planning: restrictions on investments in new

stores over 300 m2 A special committee (Ministry of

Economics, Ministry of Rural

Development) may grant exemptions. In effect, only Hungarian retailers can opt for smaller outlets.

Status Law was in force from 1 January 2012 and effective till 31 December 2014. Commission has sent a letter of formal notice to Hungary (16 April 2014).

Act XXII of 2014 on Advertisement Tax Double tax on brochures Any person that publishes certain

predefined types of advertisements is

subject to an exponentially progressive tax based on its income (net sales revenue, i.e. not profits) from the advertisement activities.

Retailers distribute millions of brochures and leaflet a week. Under the current regulations, retailers have to pay tax for

all their income collected from other companies in connection with such brochures (i.e. any kind of marketing and/or advertisement fee).

Further, taxes are also payable after advertisement expenditures, if a

company itself publishes the advertisement. Effectively retailers are double taxed.

The tax rate varies between 0% for a tax base under HUF 500 million (approx. EUR 1.3 million) to 40% for a tax base above HUF 20 billion (approx. EUR 66.6

million). The highest tax rate will increase from 40% to 50% as of January 1, 2015.

Status

Into force since 18 July 2014

New amendment into force 1 January

2015

Asks

The Commission should investigate if this

tax is in line with EU law

The Hungarian government should

withdraw the tax

Act XCV of 12 October 2009 on the Prohibition of the Unfair Distribution Practices conducted against suppliers of agricultural and food industry products

Restrictions to contractual freedom: the agreement of terms of contract

which transfer the one-sided risk from the retailer to the supplier

listing fees

shifting the costs for logistics to the suppliers

fee for the positioning of the products at a certain place within the markets

payment targets of over 30 days after delivery for all food products

Status The law is in force since 1 January 2010. Amended 1 August 2012 by Act LXXXIX of 2012.

Asks The Hungarian should abolish the

amendment mentioned above that discriminates against foreign products

The Hungarian government should create and ensure legal certainty for all

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in case of late payment the trader has to pay twice the interest rate of the Central Bank; the supplier may unilaterally withdraw the interest from the bank

account of the trader contractual exclusion of default interests

or contractual fines or contractual secondary conditions of the retailer (the retailer is obliged to agree to such clauses if the supplier so wishes)

apply the same profit margins to

Hungarian agricultural products as they apply to non-Hungarian agricultural products of the same type

sale below purchase price

businesses. The restriction of contractual freedom can hinder existing genuine business models in the Single Market and therefore become a trade barrier and

hinder investments.

Act of 20 December 2010 on change of certain laws affecting the food retail sector

Obligations in contrast to general principles of confidentiality: the retailer has to publish the general

contractual conditions of the supplier contracts on the internet or in a space accessible to consumers and has to send

this to the Agricultural Ministry the retailer of a certain size is obligated

to publish in his business report the content of the services of the retailer to the supplier, the conditions for the delivery of these services, the maximum

amount to be paid for the services the obligation to create and publish a

business report does not refer to a retailer whose net revenue in the previous year did not exceed 20 million Hungarian Forint

in the case of breaches, the Agricultural

Ministry can order a penalty of between 100,000 and 500,000.000 Hungarian Forint

recourse to legal action for retailers is limited to one instance (with no recourse to appeal)

the observation and enforcement

authority is the Ministry for Agriculture, for which the suppliers in the food industry can be considered as being part

of its clientele. Due to the many undefined legal terms the Ministry for Agriculture has a large scope of

discretion

Status The law is in force since 1 February 2011 Asks The Hungarian government should create and ensure legal certainty for all businesses. The

restriction of contractual freedom can hinder existing genuine business models in the Single Market and therefore become a trade barrier and hinder investments.

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Significant Market Power - Act CXII of 2014 on Modification of Act CLXIV of 2005 on Trade in connection with operation of

undertakings in the interest of fair market practice Presumption of dominant market

position A conclusive legal presumption is introduced under which all retailers with net sales revenue from retail activities in excess of HUF 100 billion (approx. EUR 333 million) have a dominant market position. As an example, a company in a dominant

market position is prohibited from a. restricting production, distribution or

technical development to the detriment

of final trading parties; b. refusing to establish or maintain business

relations adequate for the nature of the transaction without any justification;

c. influencing the other party's business decisions for the purpose of gaining unjustified advantages;

d. rendering the supply and acceptance of goods contingent upon the supply or acceptance of other goods, or to render

the conclusion of a contract conditional upon undertaking any commitment which, due to its nature or with regard to the usual contractual practice, does not form part of the subject of the contract;

e. in connection with transactions of an

identical value or of the same nature,

discriminating against certain business partners without due cause, including the setting of prices, payment deadlines, discriminatory sales or purchase conditions or the employment of methods which cause disadvantage to certain business partners in the

competition; f. forcing competitors off the relevant

market, or to use excessively low prices which are based not upon better efficiency in comparison to that of the competitors, so as to prevent

competitors from entering the market; etc.

If any of the above conducts were

established in connection with a given retailer, it would automatically be found to have infringed competition regulations without the Hungarian Competition Office

having to prove that the given retailer was at the same time also in a dominant market position.

Status

Enters into force 2 January 2016

Asks

The Hungarian government should

safeguard that the law is justified and

proportionate

The Commission should assess if the law

is in line with EU law and doesn’t hamper

the competitiveness of the Hungarian

market

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Hungarian National Holiday Foundation (MNÜA)

A new governmental monopoly - the Hungarian National Holiday Foundation (MNÜA) - that regulates the distribution and redeeming of “Erzsébet” food vouchers directly discriminates against foreign retail companies by charging a redemption fee of 6%, while the national Hungarian retail

chain (CBA) was charged only 3%.

Status In force since 1 January 2012 Commission started infringement case regarding the vouchers (ECJ C179/14). It claims the legislation has created a monopoly for a public foundation responsible for issuing

cold-meal vouchers (paper or electronic) and hot-meal vouchers (paper), granted by employers to their employees. Furthermore, it establishes very strict conditions for the issue of vouchers for hot meals, leisure and holidays, considered as benefits in kind,

which may no longer be in electronic form.

Italy

Ministerial Decree for labelling October 14, 1981 Labelling requirements need for labelling in Italian of all products

containing down and feathers that they comply with the legislation. “L’imbottitura è stata sottoposta al procedimento di

bonifica di cui al D.M. 10/11/76 e D.P.R. N. 845 del 23/1/75”

the laws limits the free movement of goods

Asks The Italian government should abolish

this unnecessary national labelling requirement that hinders the free movement of goods.

The Commission should ask the Italian government to abolish the labelling

requirement.

Luxembourg

Territorial Supply Constraints Restrictions of the cross-border supply of goods Retailers are not always free to choose the procurement platform. These constraints:

mostly lead to higher procurement

prices on the wholesale market and therefore higher consumer prices;

can result in an extension of the delivery times;

can restrict the choice of products, which makes it difficult to meet consumer demand within the local market;

in practice this means that

Luxembourger retailers and wholesalers are obliged to source an

Asks the Commission should ensure the

application of Single Market principles, including parallel importing, by all operators, including suppliers, so that

consumers can truly benefit from it; the Commission should act on

infringement cases.

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identical product available in neighbouring markets from, for example, the Belgian market for a

higher price than it is available for in the French and German market.

Poland

Polish Competition Act

Unfair benefits for suppliers: The interpretation of the civil courts: in order

to remove all entrance barriers to the market place for suppliers, all agreements with terms on anything but retail margins are not permitted: all suppliers who have demanded back

paid conditions have been awarded those by the courts

modern, competition orientated retail is not possible any longer as e.g. different services and strengths of the different retailers can no longer be taken into account via conditions

the current business model based on

conditions is not workable any longer, transition to n/n prices in necessary. It can be assumed that the market and the

pricing structures will become more transparent and as a result competition will be hindered

paradoxically it can be assumed that the

court decisions are in fact hindering some suppliers from entering into the market as e.g. the risks of listing a new product ‘flopping’ for retailers can no longer be balanced between retailers and suppliers by conditions (e.g. through sales increasing measures)

law against unfair competition includes rule which stipulates that the ratio of own-brands in dis-count supermarkets cannot make up more than 20% of the overall product range. Due to lacking definition and details this rule is not

applicable in practice. The producer organisations (PFPZ and especially RADA Gospodarki Zywnosciowej) are calling for the practical application of this rule

Asks The Polish government should ensure a

fair and neutral jurisdiction according to EU law

The Polish government should ensure legal certainty to assure investments and respect for retailers’ business model

The Polish government should remove restriction regarding private labels

Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products

National implementation:

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National implementation of Construction Products Directive (to be replaced by Regulation (EU) No 305/2011 of 9 March 2011 laying down harmonised conditions

for the marketing of construction products):

- requirement to label with name of, for example IKEA supplier since IKEA as

brand owner is not recognised as 'manufacturer'.

Act of 27 July 2002 on specific terms and conditions of consumer

sale and amendments to the Civil Code

Labelling requirements:

products sold in Poland have to be

marked with the following information in Polish: - Product name - Country of production

The requirements are not in line with the

fundamental internal market principle of free movement of goods and entail substantial costs and administrative burdens to retailers with international supply chains. Retailers are not permitted to label product name and country of production in English.

An international clothing retailer has received fines for non-compliance with these

provisions and filed a complaint with SOLVIT. The problem is currently addressed by SOLVIT. However, the process is slow. Meanwhile, clothing retailers continue to lose revenue when complying with Polish rules.

Asks

The Polish government should revise

national legislation to comply with EU provisions on free movement of goods.

Romania

Act 312/2009 of 15 October 2009 on trade of foods (in force since

19 November 2009, reformed in 2010)

Restricting food trade ban on the calculation of fees by the

retailer for: - special placement of goods in the

market - sales promotion to boost product

sales - special offers

delisting of products after only two

months written notice and with the return of the listing fee

ban on sale below the purchase price payment targets were modified to 30

Asks The Romanian government should create

legal certainty to assure investments and retailers’ business model

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days after delivery for meat, milk, eggs, fruits, vegetables and fresh mushrooms, while for all other food the payment target can be freely negotiated between

parties the parties are now free to agree upon

the quantum of penalties for defaulting on contractual obligations, however penalties for defaulting on delivery must be the same with the payment delay;

breaches of the guidelines can be

investigated and punished by four different institutions (communes, national consumer protection organisations, Finance Ministry and police authorities)

penalties can be up to 150,000 RON

(€35,000)

Proposal amendment of the Sales Law

Restrictions payment terms are shortened to 10 days limitation of opening hours: Obligation to

close stores (> 1.500qm) from Saturday 14.00 until Mondays

increase of fines

Status The draft is currently discussed by the Romanian Parliament Asks

The Romanian government should follow the rules set up in the EU Payment Service Directive (PSD), which allows payment terms up to 60 days if both parties agree; otherwise payment terms

of 30 days The Romanian should not discriminate

big retail formats by limiting opening hours

Slovakia

Food Act (152/1995 Coll) Disproportionate obligations retailers and shifting responsibilities from producers to retailers:

A retailer, whose turnover from the sale

of foods to the end consumer was in the preceding year at least 10 000 000 EUR or more is obliged - twice a year, send to the Ministry of Agriculture half-yearly report about the percentage share that came from the

sale of foods to the end consumer produced in Slovakia on the total turnover of the sale of all foods in the preceding half-year and also report - to publish this half-yearly report on its

Status Law and several amendments are in force.

Asks

The Slovak government should ensure legal certainty for businesses

The Slovak government should abolish the possibility to impose disproportionate fees

The Slovak government should abolish

measures that create unequal conditions of competition between domestic products and imported products

The Slovak government should respect the free movement of goods

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web-site and also at the entrance to the shop for the end consumer on each of its shops and this should be at least in a format of A3

disproportionate penalties for retailers: Fines between €1.000 and €5 Mio if products with an exceeded best before and use by date are found during official controls (3rd violation within one year results in €1-5 million). Fines in other countries for same violation:

- Germany up to €100.00 - Poland €120 - Bulgaria max. €2000

more responsibilities for retailers concerning quality safety (QS), less for

producer

traders must register animal products, fruits and vegetables before importing them within 24 hours, thus treating EU imports like imports from third countries obligation to label loose goods

labelling of products whose sell-by date is less than 24 hours

Infringement of the free movement of goods Retailers have to inform the Slovak

government about the percentage of the origin of the sold food. Originally the obligation was about the first 5 countries of origin, but now only applies to

foodstuff of Slovak. The information has

to be published visibly for the consumers, at the entrance of the store and on the web-site. The requirements do not serve any public interest and are a clear violation of the free movement of

goods, and should have been notified according to the procedure described in Directive 98/34/EC.

The Slovak government should abolish the reporting obligation for the origin of foods

The Slovak government should notify all

technical requirement imposed on products according to the EU 98/34 procedure.

The Commission should guard the proper enforcement of Regulation (EC) No 178/2002 on General Principles and Requirements of Food Law

The Commission should ask the Slovakian government to bring the law in line with EU law and otherwise start an infringement procedure.

Law on “Inappropriate Conditions in Business Relations between

Purchasers and the Suppliers of Food”

Regulation of the supply chain

maximum payment term 30 days after the delivery,

all bonuses max. 6% including logistics,

expansion and refinement of unfair trade practices listed e.g. discrimination,

prohibition of rebates,

no supplier returns, maximum price agreement - 60 days Potential increase in administrative fine

of between 10 000 EUR and 3,000,000 EUR (currently 300 000 EUR)

Increase the potential punishment for non-cooperation in the process - up to

EUR 100 000.

Status

Legislation in force since 1 January 2013 Asks

The Slovakian government should refrain from unnecessary restrictions from the freedom of contract between retailers

and suppliers The Slovakian government should ensure

legal certainty and respect all retail business models

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Labelling Ordinance no 21 of 21st August 1992 regarding the

protection of consumers

Labelling requirements: products sold in Slovakia have to be

marked with the product name in

Slovakian Retailers are not permitted to label a

product name only in English or another foreign language without labelling it in the Slovak language.

The requirement is not in line with the

fundamental internal market principle for the

free movement of goods and entails substantial costs and administrative burdens to retailers with international supply chains.

Status Reported to SOLVIT. However, SOLVIT has not accepted the complaint due to the

anticipation that the process will be too long. Meanwhile, clothing retailers continue to lose revenue. Ask The Slovak government should abolish the requirement or make sure it doesn’t hinder

the free movement of goods in the Single

Market.

Spain

National and local laws on establishment

Law 17/2009, the free access to services activities Law 10/2010, modification of the commerce law in detail

Asturias – Law 2010 on internal market/commerce Baleares – Law 8/2009 reforming the commercial regulation Canary Islands – Law 12/2009 on commercial permits

Cantabria – Law 2/2010 on the modification of the commerce law Galicia – Law 13/2010 on internal market/commerce La Rioja – Law 6/2009 on fiscal and administrative measures Andalucía – Law 3/2009

Castilla-La-Mancha – Law 2/2010 on commerce Aragon – Law 1/2010 on the modification of several laws on the transposition of the

Services Directive Castilla y Leon – Law 3/09 on measures to promote service activities Extremadura – Law 7/2010 on the modification of the Law 3/2002 on commerce Murcia – Law 12/2009 on the modification of several laws on the transposition of the

Services Directive Navarra – Law 6/2010 on the modification of several laws on the transposition of the

Services Directive Basque country – Law 7/2008 on the second modification of the law on commercial

activities Valencia – Law 3/2011 on commerce

Restrictions retail establishment: 17 different laws in the 17 autonomous regions that decide the opening and functioning of new shopping centres; use of environmental planning to impede the opening of new shopping centres: The authorisation procedures (article 9

(1) Services Directive) are not transparent; there is no justification of the necessity of such procedures. Moreover the criteria for granting permits

Status The law is into force A complaint has been filed with the

Commission Asks, the Commission should: ensure that restrictions to the freedom of

establishment are proportionate, appropriate and necessary, and that city centre relevant range limitations, arbitrary size limits, planning permits

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are not proportionate and not justified by reason of general interest (measures to improve transport and access to stores, incorporation of new technology, quality

of employment, promoting of integration of SMEs, the type of contract and working conditions, reduction of rental costs, the creation of nurseries, feeding rooms, investment in renewable energy, usage of recycled water, abusive taxes, sale of regional products, etc.)

The economic needs test is still applied in certain regions (effects on business models, instruments to regulate commercial density, harmonisation of social and economic development with

production sectors, commercial impact

assessment, number of employees in relation to sales area, distribution of sales space, etc.)

In most regions there are two different authorisation procedures (municipality and autonomous regions), participation of competitors in granting permits,

excessive intervention of authorities The implementation of the Services

Directive has resulted in an increase of administrative burden (more procedures, requirement of documents, etc.)

A special tax on establishments of more than 2500m² surface area in three

regions (resulting in costs for businesses

of 30 million per year) The effect of such measures is that

mainly large foreign retailers established in Spain are subject to the payment of the tax.

that limit and new products, are avoided ensure the correct implementation of the

Services Directive at national/regional level

set up an expert group at EU level (with retail expertise) to develop guidelines aimed at harmonising interpretation and practices

act more rapidly on infringement cases by strengthening enforcement control and speeding up infringement

procedures carry out regular checks that national

legislation is in compliance with EU legislation and the principles of the Single Market

Royal Decree 928/1987 on labelling of Textile products

National Labelling Requirement Article 6 of the Spanish Royal Decree is providing that textile products imported from third countries and marketed on the Spanish market shall bear a permanent label giving the name or trade name and address of the

manufacturer, importer or distributor and the fiscal identification number (tax code) of the

Spanish producer for textile products manufactured in Spain, or the fiscal identification number (tax code) of the importer for textile products imported and marketed in Spain.

Labelling the Spanish fiscal identification number on the product is unnecessary as the contact details of the economic operator are already on the product.

Status The decree of 5 June 1987, modified" is

transposing the European Directive 2008/121/EC of 14 January 2009 on Textile Names. This directive was later repealed in favour of regulation

1007/2011/EC on textile fibre names.

Asks The Spanish government should abolish

the unnecessary national requirement to label the product with a fiscal identification number. This hinders the

free movement of goods in the internal market.

The Commission should ask the Spanish government to remove the requirement or start a procedure to do so.

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United Kingdom

The Furniture and Furnishings (Fire) (Safety) Regulations 1988

Standards: the fire safety regulation is setting

additional standards for filling materials and final products. This results in the need to use flame retardant chemicals in for example mattresses, sofas, cushions

etc.

Asks The UK government should recognise

that request of a different standard for filling materials and final products is a barrier to free trade and impeding the free movement of goods.

The Commission should ask the UK government to bring national legislation

in line with the EU provisions regarding the free movement of goods and ban unnecessary national requirements.