Distributing a product

Market shares

The importance of general trade (retail, wholesale, automobile sales and repair ) has been on the decline since 1985. Trade represented 12.2% of the total value-added economy of the country in 1985, as against only 9.5% in 2001. The distribution market in Luxembourg is concentrated around 3 big groups:
- the national group Cactus, leader in the distribution sector in Luxembourg and owns 12 stores throughout the country.
- the group Louis Delhaize, which is the 2nd largest player in the country’s distribution system. It has stores such as Cora, Match and Smatch. The group Louis Delhaize is not to be confused with the Delhaize le Lion group which is of Belgian origin and has been in Luxembourg under the eponymous name Delhaize. This company achieved a turnover of 18.8 billion euros worldwide in 2005.
- the Auchan group, with 1 hypermarket employing 650 people in 2004.

These 3 groups share together this market of 455,000 inhabitants. The purchasing power of the people of Luxembourg being the highest in the world (source: Report-2000 of the Union of Swiss Banks), the distribution sector benefits from high per capita spending which is 70% higher than those of the neighbouring Belgians and Dutch. Distributors are trying to meet the demanding needs of the people of Luxembourg; for example by selling high-end perfumes in supermarkets.

Organizations in the retail sector

The Union of Luxembourg companies (employers' trade union)
The Luxembourg Commerce Confederation

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Party of the International coffee agreement 2001

Main International economic cooperation

Member of the European Union, WTO, OCDE

Non tariff barriers

In accordance with its European Union membership, Luxembourg 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. See the conditions of importing fresh meat.

Customs duties and taxes on imports

Customs duty for non-EU member countries is usually rather low (around 4.2% on average). There are however three sectors and product categories which are subjected to a special higher tariffication, such as the clothing sector, fabrics and agroalimentary products (around 17.3%).

Customs classification

Customs duty tariffs are calculated Ad Valorem based on their CIF value, in compliance with the Common Customs Tariff (CCT). In order to get exhaustive regulations and customs tariffs rates regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and customs trade policy measures for all the goods.

Import procedures

Since the first of January 1993, the European Union, of which Luxembourg is part, has been a single market, without any customs barriers, which ensures free circulation of the goods. On May, 1st of 2004, ten "candidate countries" became new members of the European Union: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia. Trade within the European Union is totally free from customs duties, provided that the country of origin of the goods is one of the 25 European Union Member States. Nevertheless, when introducing goods into Luxembourg, exporters shall fill in an intrastat declaration.
When the country of origin of the goods which are exported to Luxembourg is not part of the European Union, customs duties are calculated Ad valorem on the CIF value of the goods, in accordance with the Common Customs Tariff (CCT).

The duties for non-European countries are relatively low, especially for manufactured goods (4.2% on average for the general rate), however textile, clothing items (high duties and quota system) and food-processing industry sectors (average duties of a 17.3% and numerous tariff quotas, PAC) still know protective measures.
In order to get exhaustive regulations and customs tariffs rates regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and customs trade policy measures for all the goods.

Moreover, many bilateral and multilateral agreements have been signed by the European Union, in order to define specific customs duties with the following countries:

- Custom agreements with Australia, Canada, United States, Mexico and South Korea.

- The EU-EFTA (European Free Trade Association) Agreement was signed in 1972 with Iceland, Liechtenstein, Norway and Switzerland.

- Free trade agreements with Bulgaria and Romania that hope joining the European Union in 2007.

- Mediterranean Agreements, concerning: Turkey, Israel, Jordan, Morocco, Palestinian Authority, Tunisia, Egypt, Lebanon and Syria.

- The ACP agreements, with 95% of the tariff lines with a rate of a 0% for developing countries in Africa, the Caribbean Islands and Pacific. The Cotonou Agreement, signed in the year 2000, defines the new EU-ACP partnership.

- The Generalised System of Preferences (GSP): 54% of the tariff lines are at 0% for developing countries outside the ACP framework.

To get an exhaustive list of the foreign trade agreements of the European Union, click here.

>> To get further information on customs policies in the European Union, please check the exhaustive report by the European Commission.

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.

For further information

Customs duty and Excise Tax Administration

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

Luxembourg has an excellent road infrastructure. Air transportation is also facilitated by the presence of a specialized airline company, Cargolux, one of the greatest exclusively cargo companies in Europe. Finally, merchanidse transportation by rail is in full development. In 2007, the first long distance plain rail highway began to operate, connecting Perpignan (France) and Luxembourg. Conceived as an alternative to road transport, it allows road transporters to transport by train, without neither tractors nor drivers, overnight 40 tractor trailers, which equals cca 30,000 tractor trailers per year.

Ports

The airline company Luxair
The airport of Luxembourg
The railroad company CFL

Airports

Aviation Administration
The Luxembourg Airport

Sea transport organizations

Waterway: Ministry of Transport Navigation Service

Air transport organizations

Direction of Civil Aviation (DAC) of the Ministry of Tranport

Road transport organizations

Ministry of Transport: Direction of Road Transports

Rail transport organizations

Ministry of Transport, Direction of railways
Ministry for the Middle Classes, Tourism and Housing
The CFL rail company

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

Identifying a supplier

Type of production

The plastic/caoutchouc branch represents 13% of the industrial production's added value (fabrication of Good Year Tires). Chemical industry has increased its part in the sector's total production (7%) since the arrival of the TDK Recording Media Europe S.A. company. The steel industry still represents a large share, thanks to the presence of the world giant, Arcelor-Mittal. Finally, Luxembourg also produces numerous non-metal mineral products (glass industry, porcelain production and cement production, concrete and concrete parts production...) which represent around 8% of the industrial production's added value.

Business directories

Luxweb
ABC Luxembourg
Europages

Manufacturers associations of the main industries

The Federation of the Luxembourg Industry

Trade Agencies and their representations abroad

Luxembourg Chamber of Commerce

Enterprises federation

European Association of Craft, Small and Middle-sized Enterprises
The Union of Luxembourg Enterprises
The Luxembourg Trade Confederation (CLC)

Standards

National standards organizations

ILNAS

Integration in the international standards network

The body of standardisation and certification is the The Luxembourg Institute for Normalization, Accreditation, Safety and Quality of Products and Services (ILNAS) . Luxembourg is a member of the European Committee of Standardisation (CEN), the European Committee of Electronic Standardisation (CENELEC), the European Institute of Standardisation of Telecommunication (ETSI), the International Organization of Standardization (ISO) and the International Electrotechnics Commission .
Certain products, whatever their origin is, should be submitted to the technical rules which give rise to a ratification meeting EC standards.

Classification of standards

Luxembourg upholds international standards (ISO, IEC), European standards (CE), and newly created national standards (ILNAS/OLN).

Online consultation of standards

A catalog of norms is available at the Luxembourger Standardisation Body.

Certification organizations

ILNAS

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

Intellectual Property

National organizations

The body in charge of the protection of intellectual property in Luxembourg is the Service of the Intellectual property of the Ministry of the Economy.
You can obtain information on patents and trademarks with the center of public research Henri Tudor.
Concerning industrial property, Luxembourg signed the Paris Convention. Information on patents from the Center for Technological Monitoring.
Concerning trademarks, a single recording allows to protect these at the same time in Luxembourg, in Belgium and in the Netherlands.