Distributing a product

Evolution of the sector

The principal economic zones of the country are concentrated around the capital Prague and in metropolitan cities like Usti nad Labem and Plzen in the west and Brno and Ostrava in the east.
The distribution market is currently booming due to modernization of the sector and the increase of the purchasing power of the population. Czech retail business is still growing more than 4 % per year.

Market shares

The distribution structure in the Czech Republic increasingly resembles to western countries, i.e. the dominance of big groups that disadvantages the traditional trade. In fact, until 1989, commercial distribution was under State control, but today it is entirely privatized. In 1997, the hypermarkets represented only 1% of retail business while traditional businesses represented 49%. Today, the trend has completely changed and hypermarkets largely dominate with 44% of retail trade, while the market-share of traditional traders is still falling down.
Today, the distribution market in the country is dominated by UK, Austrian, and German companies which were the first ones to enter the Czech market. A majority of Czech companies have gone bankrupt or have been taken over as they lost their competitive edge. The biggest retail operators are: TESCO, METRO (Makro), AHOLD (represented by brand Hypernova and Albert), KAUFLAND, REWE (Billa, penny), LIDL, PLUS DISKONT.
Shopping centers and malls have also had great success: 80% of the population living in big cities visits them. At these centers supermarkets rub shoulders with luxury stores.

Organizations in the retail sector

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies
Party of the International coffee agreement 2001

Main International economic cooperation

European Union
Central European Free Trade Agreement (CEFTA)
International Trade Center (ITC)

 

 

Czech Republic is also a signatory to multilateral and bilateral agreements with many countries. Click here to find more information.

Non tariff barriers

In accordance with its European Union membership since May, 1st of 2004, Czech Republic applies the European Union trade policy such as antidumping or anti-subsidy measures, for instance. The European Union import rules, especially concerning the quotas on the textile products sector, is widespread in Czech Republic. If the country has adopted the main part of the community regulations on its accession to the EU, some transitional measures have been granted to the country regarding some EU rules like for example freedom of movement for workers or cabotage inside some countries.

While the European Union has a rather liberal foreign trade policy, some products need import licenses. There are some 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 favoring the development of agriculture within the EU, implies a certain number of control and regulation systems for the goods entering the EU territory.

When being introduced in Czech Republic, some products must be "CE" marked in respect to the European Directives adopted on the basis of the New Approach and the Global Approach. For further information, please consult the Guide to the Implementation of Directives based on New Approach and Global Approach.

Customs duties and taxes on imports

Exchanges within the European Union are free and not charged.
Since its accession to the European Union on May, 1st of 2004, the Czech Republic has adopted the EU Common External Tariff. The duties for non-European countries are relatively low, especially for manufactured goods (3% on average for the general rate).

In order to get exhaustive regulations and custom tariffs regarding their products, refer to the TARIC code and its database, which includes all applicable customs duties and all customs trade policy measures for all the goods.

Customs classification

The Combined Nomenclature of the European Community (EC) integrates the HS Nomenclature and comprises additional 8-digit subdivisions and legal notes specifically created to address the needs of the Community.

Import procedures

Since its accession to the European Union on May, 1st of 2004, the Czech Republic has adopted the EU Common External Tariff. Consequently, trade with Czech Republic is totally free from customs duties, provided that the country of origin of the goods is one of the other 24 EU Member States. Nevertheless, when introducing goods into the Czech Republic, exporters shall fill in an intrastat declaration.

 

In case of non EU countries regular customs procedure must be done so that goods could enter the market. This procedure consists from customs declaration at the customs office. This customs office assesses customs duty. Customs office may claim a money deposit for this “customs debt”. Customs debt must be paid in the given date.

As part of the "SAFE" standards advocated by the World Customs Organization (WCO), the European Union has set up a new system of import controls, the "Import Control System" (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Program eCustomer, has been in effect since January 1, 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

Importing samples

None

For further information

Czech Custom Administration
Ministry of Industry and Trade

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

Natural conditions limit means of transport of goods. The Czech republic have neither direct access to the sea nor river are only a few month navigable. That means the road transport and railway transport are the most important mean of transport for economy. In terms of international transport also air transport becomes more important.

For the moment, cabotage inside the other European countries is still forbidden, because of some transitional measures induced by the accession process into the EU.

Ports

Airports

Prague
Brno
Ostrava

Sea transport organizations

Ministry of transport - Water transport

Air transport organizations

Ministry of Transport - Air transport

Road transport organizations

Ministry of Transport - Road transport

Rail transport organizations

Ministry of Transport - Railway transport

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

Industrial sector’s contribution to the country’s GDP reaches 40 %. 40,2 % of economically active population is working in industrial sector. Most competitive industrial branches are automotive and electronics.
Active support of cluster initiatives has existed in the Czech Republic for several years already. Click here to find out the localization of theses clusters in the country.

Business directories

Zlaté stránky, Yellow pages online
Kompass.cz
Suppliers in the Czech Republic, the Czechinvest gateway

Manufacturers associations of the main industries

Association of Textile-Clothing–Leather Industry
Czech and moravian electrical and electronic association
Association of food industry

Trade Agencies and their representations abroad

Czech chamber of commerce

Enterprises federation

Confederation of Industry of the Czech Republic (SPCR)
Association of small and medium-sized enterprises and crafts of the Czech Republic
Czech Confederation of Commerce and Tourism (in Czech only)

Standards

National standards organizations

Czech Standards Institute (CNI)
Czech Office for Standards, Metrology and Testing (UNMZ)

Integration in the international standards network

The Czech Republic has harmonized its standards with European norms. Czech Republic is a member of:
- ISO  - International Standard Organisation
- IEC – International Electrotechnical Commission
- ITU – International Telecommunication Union
- CEN  - European Committee for Standardization
- CENELEC - European Committee for Electrotechnical Standardization
- ETSI – European Telecommunications Standards Institute

Classification of standards

Original Czech standards (10% of the overall annual production of technical standards), which can only be use in areas where European or international standards do not exist, are designated by : CSN + 2 numbers of the class + 2 numbers showing the rank under the class + 2 numbers showing only the sort order (CSN 73 4301)

European or international standards (90% of overall annual development of technical standards) are designated like that CSN EN 115, CSN ISO 1735 , CSN EN ISO 9001, CSN IEC 61713, CSN ETS 300 976
 
For more info see website of CNI.

Online consultation of standards

Czech Standards Institute

Certification organizations

Czech and Slovak Testing Board
Institue for Testing and Certification
Czech Institute for Accreditation

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

The body responsible for the protection of intellectual property is Ùrad Prùmyslového Vlastnictvi (Industrial Property Office). You can also consult the Copyright Law Department

Regional organizations

For the protection of patents: The European Patent Office.
T o register Community Trade Marks and Community Designs: The Office for Harmonization in the Internal Market.

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)