![](media/image1.wmf)

**DOING BUSINESS IN IRELAND:**

**A COUNTRY COMMERCIAL GUIDE**

**FOR U.S. COMPANIES**

**2008**

# ![](media/image2.wmf)   Doing Business in Ireland: 

# A Country Commercial Guide for U.S. Companies

# 

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2005. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In
    Ireland](#chapter-1-doing-business-in-ireland)

-   [Chapter 2: Political and Economic
    Environment](#chapter-1-doing-business-in-ireland)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

#   {#section-1 .unnumbered}

# Chapter 1: Doing Business In Ireland

-   [Market Overview](#market-overview-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#chapter-1-doing-business-in-ireland)

In 2007, Ireland's economy again registered decent growth, as its GDP
expanded over 5.0% following 4.7% in 2006, and 4.5% in 2005. This said,
while it indeed continues to enjoy economic successes that characterized
the "Celtic Tiger" era of the 1990s, Ireland's economy has showed a
number of signs of slowing down. As with the U.S. housing sector,
Ireland's real estate markets had become overheated during the last few
years, with many similar home-financing problems to those reported from
the United States. Moreover, Irish consumer debt has reached record
levels, not only higher than previous years domestically, but also in
comparison to other EU region countries. After rising sharply for
several years, its real estate prices have begun to fall, especially
during the second half of 2007, with price declines estimated by some
observers in the region of 15-20%. In recent months, economic confidence
has declined and many Irish consumers have showed signs of pulling back
on their expenditures. Finally, the Irish economy, which is so closely
linked to developments elsewhere, has begun to feel the effects of the
general economic pullback in America and other countries.

Still, within the EU region, Ireland's economic vibrancy stands out,
particularly the country's welcoming business environment and continued
attractiveness to foreign investment. Moreover, while a number of
Western European countries are grappling with their proper responses to
growing immigration and also are beginning to register modest population
declines, Ireland's population continues to grow, fueled in large part
by a relatively high birth rate and the inward migration of jobseekers
from Central Europe and elsewhere. These immigrants have sought
opportunities in lower-skilled sectors, such as construction, but also
in higher-skilled, well paying technical fields where labor shortages
are found. Whether or not these numbers will further grow in the years
ahead is of course partly linked to the future fate of Ireland's
construction sector. Nonetheless, the recent spike in immigration from
outside of Ireland has begun to add a multicultural flair to a
population that previously had been relatively homogeneous.

The United States and Ireland enjoy longstanding political, economic and
commercial relations and a close cultural affinity. A coexisting,
profitable and mutually dependent commercial and economic relationship
has existed as well between the two countries, one that has grown to
become neatly interwoven over the past 25 years. U.S. companies in
Ireland take advantage of doing business in a common language, with
educated and savvy partners that have connections across Europe in most
sectors, in a country with a government that is pro-business,
economically focused and highly stable. Of particular note for American
exporters, are similarities in language and business styles, and the
fact that U.S. business practices are well known and understood in
Ireland, both of which bode well for enhanced U.S.-Irish business ties.

-   Ireland today is a wealthy country, with a per capita GNP reaching
    and estimated \$50,100 in 2006. It also is a net exporting nation,
    with a positive trade balance of \$38.5 billion in 2006.

-   Labor and energy costs, however, have made Ireland a more expensive
    place to conduct business, particularly in comparison with South and
    East Asia. The rate of inflation in Ireland was just over 4% in
    2006, while absolute price levels are among the highest in the EU.

-   U.S. government statistics indicate that Irish imports from the
    United States totaled \$9.0 billion in 2007, up over 5.8% over 2006,
    when they reached \$8.5 billion.

-   There are roughly 620 U.S. firms in Ireland, directly employing
    approximately 100,000 workers and supporting work for another
    250,000, out of a total labor force of 2 million.

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-   In 2007, the Irish government announced over 114 new and expansion
    projects with US companies. Moreover, almost two out of every three
    foreign direct investment projects coming to Ireland in 2007
    originated from the U.S.

-   U.S. investment stock in Ireland, a country of just over 4 million,
    was worth \$83 billion in 2007, almost 7% of the U.S. total for the
    EU, over 3% of worldwide American investment, and more than double
    the U.S. total for China and India combined.

-   By comparison, American Chamber of Commerce in Ireland figures
    indicate that Irish investment in the United States totaled almost
    \$30.9 billion, with an estimated 74,000 Americans employed by Irish
    firms.

-   U.S. companies are primarily attracted to Ireland as an export
    platform to the EU and elsewhere. In 2006, Irish-based U.S. firms
    exported about \$57 billion worth of goods and services, mostly to
    other EU countries. Other factors that continue to work in Ireland's
    favor as an attractive place for business include: a low corporate
    tax rate (12.5%), compared to much higher rates in most other EU
    countries; a well-educated and flexible English-speaking work force;
    generally harmonious labor relations; political stability;
    pro-business government policies; a transparent judicial system;
    and, the pulling power of existing companies operating successfully
    in Ireland (a \"clustering\" effect).

-   American companies account for about 70% of Irish employment by
    multinationals supported by Irish Government investment promotion
    agencies. The range of U.S. investments is wide ranging, including
    chemicals; bio-pharmaceuticals and medical devices; computer
    hardware and software; electronics; and, financial services.

-   The Irish Government's has seen some recent successes in its ongoing
    strategy to refashion Ireland as an R&D-centered, innovation-based,
    knowledge-intensive economy -- thus the euro 3 billion fund (about
    \$3.9 billion) for upgrading post-graduate education. This strategy
    will play out over years and will be a deciding factor in Ireland's
    ability to attract continued investment from R&D-heavy U.S.
    companies. In addition, the recent announcement by the Irish
    Government of a euro 2.5 billion "Strategy for Science, Technology
    and Innovation" indicates a long-term commitment to build on
    Ireland's R&D strengths.

While U.S. investors continue to show strong interest in Ireland, a
number of possible clouds lurk on the horizon, including; rising labor
costs, increased shortages of skilled labor, an overburdened transport
infrastructure, inadequate broadband internet access in parts of the
country (and slow service in getting "hook-up" to the internet), and
energy and housing price levels that are among the highest in Europe.
The recent uncertain economic news from the United States and elsewhere
has served to exacerbate these worries. Furthermore as the Irish
Government reported in late 2006, concerns about relatively high-energy
costs (and the reliability of energy supplies) could also undermine its
attractiveness as an FDI destination.

## Market Opportunities [**Return to top**](#chapter-1-doing-business-in-ireland)

As highlighted above, U.S. exports to Ireland reached \$9.0 billion in
2007, up almost 6.0% over 2006, when they totaled \$8.5 billion. U.S.
exports to Ireland include virtually all products and services,
including aircraft equipment, power generation technology, medical
products, electrical equipment, and pharmaceuticals ranking among the
leading sectors. By comparison, U.S. imports from Ireland were \$30.3
billion in the same year, up 6.4% over 2006. Much of the U.S. trade
imbalance with Ireland can be attributed (as cited earlier) to the
Ireland operations of U.S. investors, many of which are used as a base
for further manufacture and re-export to other countries, including the
United States.

There are significant opportunities within the marketplace for
small-to-medium sized U.S. exporters. Successful exports include
state-of-the-art products (and parts and components for products) in the
ICT sector, pharmaceuticals, and medical and health care devices, as
well as travel/tourism, engineering/design, and financial services. In
addition, growth sectors for exports include consumer and sporting
goods, building and construction products, hotel and restaurant
equipment, food processing equipment, industrial machinery, power
generation and air conditioning and refrigeration equipment.

## Market Entry Strategy [**Return to top**](#chapter-1-doing-business-in-ireland)

Ireland is a small open economy with a heavy dependence on international
trade. As a result, the introduction of products and services into the
Irish market is relatively uncomplicated. Standard international
marketing and distribution practices are widely utilized in the Irish
market. Moreover, e-commerce practices are being adopted by the Irish
government and in the business community. American companies with
quality products and services will receive enthusiastic support from
local business partners toward achieving their goals and objectives in
Ireland.

Many successful U.S. companies in the Irish market see Ireland as a
gateway to opportunities in the UK, as a natural location for
distribution throughout the EU (Ireland is a member of the Euro zone),
or as a logical springboard for sales across Europe. In addition, more
and more companies are looking for strategic Irish partners for contract
manufacturing, joint ventures, transfers of technology, licensing, and
logistics and value-added service agreements.

With a 12.5% corporate tax rate reported earlier, Ireland's tax regime
and other incentives to business are considered by some to be the most
cost-effective in the world. Also, as noted above, Ireland offers many
advantage in doing business that are not available in other countries in
the region. Additionally, it has the competitive advantage of being a
member of the EU - an integrated market of over 450 million consumers.
Over the last few years, U.S. companies have come to recognize that
their business interests in Europe are well served by Irish partners who
possess knowledge of EU directives, regulations, and distribution
channels that will allow them to expand their business quickly
throughout the broader EU marketplace. Whatever their business goals,
U.S. companies interested in doing business in Europe should consider
Ireland.

[Return to table of contents](#doing-business-in-ireland)

#  Chapter 2: Political and Economic Environment

For background information on the political and economic environment of
the country, please click on the link below to the U.S. Department of
State Background Notes.

<http://www.state.gov/r/pa/ei/bgn>

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch3 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

The opportunities for the establishment of business relationships in
Ireland are unique in that Irish firms are interested in representing
U.S. companies both within the Irish market and, in many cases, in the
larger European market. While numerous U.S. firms are already
represented by agents and distributors or have direct sales in Ireland,
local manufacturers are now seeking relationships such as technology
transfer, licensing, and strategic alliance agreements with U.S.
companies.

Given Ireland's high level of international trade, Irish firms have
significant expertise in international business. Irish buyers appreciate
quality and service and are willing to pay extra if they are convinced
of a product's overall superiority. Care must be taken to ensure that
delivery dates will be closely maintained and that after-sales service
will be promptly honored. Since Irish wholesalers and retailers
generally conduct a lower volume of business than their American
counterparts, the U.S. exporter should be prepared to sell smaller lots
than is the customary in the United States.

## Using an Agent or Distributor [**Return to top**](#ch3)

Selling a product in Ireland is facilitated by the compact size of the
market and, depending on the expected sales volume and use of marketing
techniques, may be achieved through any of the following distribution
methods:

-   the establishment of a local sales office to serve Ireland and
    provide a distribution point for Western Europe;

-   through an agent or distributor whose activity may cover specified
    areas, the entire country, or include Western, Eastern or Central
    European markets;

-   through established wholesalers or dealers in Ireland; and

-   directly to department stores, chain stores, retailer cooperatives,
    consumer cooperatives, or other organizations.

International firms usually have one exclusive representative for the
entire country, although it is common for the representative to appoint
sub-agents to cover certain sectors of the market, if sales and profit
margins warrant. In addition, a sales representative located in Ireland
may be in an ideal position to market a product throughout the European
marketplace.

-   Consumer goods are best sold through a distributor carrying stock
    for immediate delivery and sale, whereas capital goods and
    industrial equipment are more effectively marketed through a
    commissioned agent. In the case of certain raw materials with low
    mark-ups, or for capital goods and supplies for which there are
    limited numbers of potential users or buyers, direct sales
    techniques are effective.

-   Regular communications and visits to a newly appointed
    representative in Ireland are useful to establish successful
    relationships, get a better understanding of market specifics,
    trends, and developments, and to assist in the resolution of any
    early problems.

-   An effective and responsive after-sales-servicing system should be
    incorporated into distribution plans.

-   Frequently, U.S. firms will rely on the Irish distributor to handle
    the details of labeling and packaging for European preferences
    regarding the product and, if necessary, registering the product.

-   The familiarity and fluency of many Irish business firms with the
    varied languages of Europe also underline Ireland's capacity as a
    springboard for sales to continental Europe, as well as to Central
    and Eastern Europe.

Three kinds of distribution agreements are covered by Irish legislation:
exclusive, quasi-exclusive, and informal. In an exclusive
distributorship, the distributor has the sole right to sell specified
goods within a defined area. Quasi-exclusive distributorships allow the
distributor to sell almost all the specified products within a defined
area. Informal distributor arrangements impose heavier obligations on
the distributor.

If contractual obligations are not met in a distribution agreement of
indefinite term, it cannot be terminated until reasonable notice and/or
fair compensation is provided. In general, grantors should consider
protecting themselves by entering into agreements for definite periods
rather than an indefinite period. In addition, specific performance
targets clauses should be incorporated into the distribution agreement.

-   Under EU legislation (Commercial Agents Regulations 1994), a
    commercial agent is a self-employed intermediary who has continuing
    authority to negotiate the sale or the purchase of goods on behalf
    of another person, or to negotiate and conclude such transactions on
    behalf of the principal. Each party is entitled to a written
    document setting out the terms of their contract.

-   EU legislation regarding unilateral termination of distribution
    agreements (EEC 86/653) applies and is designed to provide the local
    distributor with some degree of protection and monetary compensation
    when an agreement is terminated for reasons other than cause. The
    legislation will apply regardless of any clause in the agreement
    itself, and the parties may not deviate from the legislation as long
    as the distribution agreement is in force.

## Establishing an Office [**Return to top**](#ch3)

There is a distinction between incorporated and unincorporated business
entities in Ireland. An incorporated entity has a legal status separate
from its owners and is capable of suing and being sued in its own name.
Incorporated entities include private limited companies, public limited
companies and unlimited companies. Unincorporated entities may be a sole
proprietorship set up by an individual, or a partnership.

-   The most basic form of company is the sole proprietorship, and there
    are few legal formalities or costs associated with this form of
    business, which appeals to small enterprises. The owner is
    personally liable for the business and has managerial control as
    well as direct access to profits.

-   U.S. companies may conduct business in Ireland through a branch or a
    place of business. A branch is a considered a division of a foreign
    company trading in Ireland that has the appearance of permanency, a
    separate management structure, an the ability to negotiate contracts
    with third parties, as well as reasonable financial independence.
    Branches must file company financial statements with the Registrar
    of Companies.

U.S. firms interested in establishing an office in Ireland should review
the following:

Enterprise Ireland's website
([http://enterprise-ireland.com](http://enterprise-ireland.com/)) for a
comprehensive practical overview and advice on evaluating and/or
establishing business operations in Ireland.

The Irish government website
([http://www.basis.ie](http://www.basis.ie/)) for information on how to
set up a business in Ireland from registration and legal advice to
guidance on taxation and employment issues.

## Franchising [**Return to top**](#ch3)

Substantial opportunities exist for U.S. companies to establish
franchise systems in Ireland across a wide range of industries.

The sector has experienced steady growth in recent years as the number
of international franchise systems operating in Ireland continues to
grow and indigenous franchise operations continue to expand both in
Ireland and overseas.

The growth of the economy over the last ten years and the resulting
increase in disposable income, together with the many changes in
consumer buying patterns and the spread of suburban living, have all
contributed to the growth of the franchising sector.

-   U.S. franchises lead in terms of market share, representing over 40%
    of the franchise operations in Ireland.

There are few regulations concerning franchising and none that limit
market access to U.S. firms. The EU Regulation 4087/88 EEC regarding
franchising provides a unified code for the 25 member states. Its
primary focus concerns price fixing, transfer pricing, non-competition
clauses and exclusive dealing. It also exempts certain franchise
agreements from the EU anti-trust regulations.

## Direct Marketing [**Return to top**](#ch3)

Irish companies spend in excess of \$250 million on direct marketing
services annually. The Irish Direct Marketing Association
([http://www.idma.ie](http://www.idma.ie/)), the representative body for
direct marketing in Ireland, has 350 members ranging from financial
services firms to telecommunications companies and law firms.

Telemarketing, in particular, has spearheaded the growth of the direct
marketing sector in Ireland as a large number of companies, including
Dell, United Parcel Service and American Airlines are now providing
telemarketing services from Ireland. These international firms are
serving both the Irish and European marketplaces from their Irish
telemarketing operations.

Mail-order sales are small. Certain firms have used this technique
successfully in combination with their usual retail outlet operations.
Promotion is carried out by catalog, or by newspaper advertisements with
no personal contact. Hobby centers, Do-It-Yourself (DIY) or home
improvement stores, auto supply centers, and discount stores are also
enjoying success.

## Joint Ventures/Licensing [**Return to top**](#ch3)

No formal regulations relating to joint ventures in Ireland currently
exist. In each case, the terms of the joint venture are the subject of a
co-operation agreement between the parties concerned. Generally, the
agreement sets out the basis on which the parties are to co-operate on a
particular joint venture. Numerous international firms have joint
venture and licensing arrangements with manufacturers based in Ireland.

Government approval is not necessary for licensing agreements and no
statutory restrictions are imposed on the amounts of royalties or other
details of licensing arrangements. However, an international firm
intending to license the use of its trademark to a company based in
Ireland must designate the licensee as a registered user, and an
appropriate application must be lodged in order to prevent any future
legal problems.

-   Enterprise Ireland, the state agency responsible for the development
    of indigenous Irish industry, continually seeks to develop joint
    ventures, licensing, technology transfer, and other types of
    strategic alliance arrangements between Irish and international
    firms
    ([http://www.enterprise-ireland.com](http://www.enterprise-ireland.com/)).
    The objective is to bring successful Irish companies with available
    resources of capital, management, technical knowledge, and skilled
    workers together with international firms that have comparable
    strengths, particularly in areas of product development and
    marketing. U.S. firms can gain access to the European marketplace by
    adopting a joint venture/licensing strategy incorporating Ireland.

As with all business investment decisions, U.S. firms considering joint
venture, licensing, or other strategic alliance arrangements in Ireland
should seek professional advice regarding the legal, financial, and
taxation implications of the agreements being negotiated. The U.S.
Commercial Service at the U.S. Embassy in Dublin
(<http://www.buyusa.gov/ireland>) can assist U.S. companies in
addressing these issues.

## Selling to the Government [**Return to top**](#ch3)

As a member of the EU, Ireland has adopted EU public procurement
directives.

All Irish works, supply, services, and utility procurement project
notices which fall within the guidelines of EU public procurement
directives are published electronically in the Official Journal of the
European Community (OJEC) \"S\" series
([http://ted.eur-op.eu.int](http://ted.eur-op.eu.int/)).

The Irish government also has its own Public Sector Procurement portal
([http://www.e-tenders.gov.ie](http://www.e-tenders.gov.ie/)) that
provides electronic access to all Irish public sector procurement
opportunities published in the OJEC and in the national and local print
media.

The U.S. Commercial Service in Dublin actively monitors and reports on
major procurement projects offering opportunities for U.S. firm
(<http://www.buyusa.gov/ireland>).

## Distribution and Sales Channels [**Return to top**](#ch3)

According to the most recent data, approximately 53,000 retail outlets
and 2,500 wholesale outlets sell and distribute goods in Ireland. While
the distribution system, especially at the retail level, still consists
of small outlets by American standards, it is moving toward larger, more
economically viable units to satisfy changing market needs.

Retail outlets in Ireland range from the large department stores to the
small shop owned and operated by an individual. Although most retail
outlets are small, such enterprises are decreasing in number, as
efficiencies of scale and purchasing power become the major competitive
factors bearing on profit margins. A trend toward larger outlets has
been underway, with the formation of chains, expansion of existing
department stores, and the establishment of medium-sized department
stores.

-   On January 1, 2005, the Irish government removed a legislated
    maximum 6,000 square meter cap on retail warehouse floor space in
    Dublin and most other major cities in Ireland, as designated under
    its National Spatial Strategic. IKEA is expected to enter the market
    as a result of this change in legislation, along with the
    development of other large-scale retail stores.

The increasing tempo of commercial and industrial development, as well
as suburban development, is bringing about significant changes in the
distribution system. Wholesalers supply a variety of services to
associated small retailers, including sales promotion, advertising, and
retail training. In some cases, they combine small retailers into a
buying group in order to achieve purchasing economies and increased
purchasing power with manufacturers.

The number of discount firms, especially those stocking consumer
electronics and domestic appliances, continues to increase, and the
number of self-service stores is rising steadily. Self-service is not
confined to small merchandising units as department stores and gas
stations also have incorporated this sales technique in their
operations.

The Irish food retail trade is very receptive to new food product ideas
and is constantly monitoring developments in new products in the
international marketplace. As few chains import directly, the major food
retail chains often use specialized importers to administer the
logistics of importation and distribution. As a result, there are a
large number of food importers, many of whom are quite small, serving
the retail trade. Some of these importers are also distributors of Irish
produce and, indeed, some also are local manufacturers. Most
importers/distributors have adequate distribution facilities to most
parts of Ireland.

There are over 9,500 food retail outlets (i.e. grocery stores) of
varying sizes in Ireland. Two distinct segments exist within the sector
\-- the supermarket multiples, and independent retailers. The food
retail sector is dominated by three multiple chains, while a number of
smaller chains also operate. The multiples dominate the grocery trade in
the greater Dublin area accounting for about 75% of retail sales. A
number of smaller EU-based retail chains (e.g., Lidl and Aldi) have also
entered the market, establishing medium-sized stores in the smaller
towns around the country. Outside of the main urban areas, many of the
independent retailers are affiliated to \"symbol groups\" which
facilitate the attainment of purchasing economies of scale through
procurement from a central purchaser.

## Selling Factors/Techniques [**Return to top**](#ch3)

U.S. firms should maintain close liaison with distributors and customers
in order to exchange information and ideas. In most instances,
communication through telephone or e-mail is sufficient but the
understanding developed through periodic personal visits is the best way
to keep distributors apprised of new developments and to resolve any
problems quickly. Prompt acknowledgement of correspondence is
recommended.

Vigorous and sustained promotion is often needed to launch products.
Products must be adapted to both technical requirements and to consumer
preferences. It is not sufficient to merely label a product in
conformity to national requirements. For the development of a product's
full market potential, quality, price, packaging and after-sales service
are key. U.S. exporters may also wish to consider warehousing in Ireland
for expeditious supply and service for customers in Ireland and Europe.

Distribution methods vary by product, as well as with individual
commercial relationships. Methods must be tailored to fit market
conditions in each instance. U.S. companies can utilize successful
distribution techniques practiced in the United States as a threshold
for approaching the Irish market.

[Warehousing and Free Trade Zones]{.underline}\
\
The Shannon Free Trade Zone, established in 1947, and located at the
Shannon International Airport, is the world\'s oldest operating free
zone. This facility provides an attractive international distribution
and warehouse center serving Western Europe because it provides the
unique combination of a custom-free industrial zone and direct access to
air and surface transport to the United Kingdom and other European
markets.

-   Raw materials and partly or completely manufactured products may be
    imported into the free zone in any quantity and held there without
    payment of duties or taxes.

-   Processing, sorting, grading, or repackaging of the goods may take
    place within the zone, and buildings may be leased or built.

-   As sales require, the goods held in the free zone may then be
    withdrawn from inventory and re-exported to other countries or
    imported into Ireland for consumption after payment of appropriate
    duties, value-added taxes, and excise duties.

-   If the goods are re-exported to another country, duties and taxes,
    as appropriate, will be payable in that country.

Principal advantages of the free zone to American firms are:

-   the existence of a European base of supply to assure customers
    prompt delivery and service,

-   the ability to maintain inventory at low cost, and

-   eligibility for the reduced 12.5% corporate tax rate in Ireland.

Adequate warehousing facilities are available in major Irish cities.
Bonded warehouses are operated in Dublin, Cork, Limerick, Waterford, and
Galway. The Dublin Port Company maintains the largest warehousing
organization in the country. In addition to storage facilities, the
Board provides services needed by distributors such as packing, sorting,
bottling, and transport service. Imported goods liable to a duty may be
stored in a bonded warehouse in the port area or other locations without
payment of duties or taxes. The goods may remain there until needed, at
which time they are cleared for Irish consumption by payment of duties
and taxes, or sent to the country of destination.

Certain types of processing (inwards and outwards) are allowed in the
bonded warehouses under official supervision. Inwards processing is the
temporary importation of raw materials or products for additional
manufacture or processing. Merchandise imported for additional
processing and eventually re-exported out of the EU is eligible for
customs-free treatment.

-   The re-exported goods may be partly or totally processed.

-   Irish import duties and taxes are levied only on those goods that
    are not re-exported for final sale in the EU.

-   To qualify for inwards processing, the Irish or EU firm must prove
    to customs that it is necessary for them to use imported goods
    instead of EU goods. In addition, the firm must state its intention
    to export products manufactured from the imported goods (or
    equivalent goods available in the EU). It must also assure that,
    upon re-exportation, the conditions set forth in the authorization
    are satisfied, the exported goods are accounted for, and the entered
    goods are identifiable and relate to specific imported products

In outwards processing, an Irish firm may export goods for further
manufacture or processing from the EU customs area and then re-import
the final product.

-   Duties and taxes are levied on the increased value added by the
    expatriate manufacturing or processing when the goods are returned
    to Ireland, not upon the total value of the product.

-   Only firms located in Ireland or another EU country are eligible to
    take advantage of this option and should first gain approval by the
    Irish customs authorities.

## Electronic Commerce [**Return to top**](#ch3)

The Irish Government remains strongly committed to its policy of
ensuring that Ireland becomes a major hub for e-commerce in Europe. To
achieve this goal, the government developed a comprehensive e-commerce
strategy that includes: (a) world-class international telecommunications
connectivity, (b) pro-active e-commerce legislation (Electronic Commerce
Bill 2000), (c) an e-commerce campus in a 100-acre National Digital
Park, and (d) support for SMEs to develop e-commerce strategies.

-   Ireland's two major airlines, Aer Lingus and Ryanair, both operate
    highly active on-line reservation systems.

-   Companies such as Google, eBay, PayPal, Yahoo, Amazon, and Overture,
    have all have established operations in Ireland.

## Trade Promotion and Advertising [**Return to top**](#ch3)

Ireland does not host any major international trade fairs, except in the
tourism sector. In international terms, Irish trade fairs are
small-scale events that attract local trade and consumer audiences.
Thus, they principally offer sales and promotional opportunities for
Irish agents and distributors. In general, the international element of
these events is limited to local representatives promoting international
brands.

Due to the proximity of Ireland to major trade fairs in European cities,
most Irish manufacturers, agents, distributors, and end users attend the
major European exhibitions in their industry sectors. The U.S.
Commercial Service in Dublin promotes U.S. pavilions at European
tradeshows to the Irish business community to ensure that U.S.
exhibitors receive potential Irish business opportunities that might
result.

-   Ireland has approximately 60 newspapers and 150 periodicals or trade
    magazines. The Dublin dailies (Irish Times and Irish Independent)
    and the Irish Examiner (Cork) enjoy national distribution. The Irish
    Independent (morning) has the largest circulation, followed by the
    Evening Herald. The Irish Times (morning) has the smallest
    circulation in Dublin, but reaches the important business and
    financial markets. There are four national Sunday newspapers, of
    which the Sunday Business Post is directed at corporate executives.
    British newspapers and tabloids are widely available in Ireland. The
    Irish Times, Irish Independent, Irish Examiner, Sunday Business
    Post, and many regional newspapers also have electronic editions on
    the worldwide web.

-   There is increasing competition in the broadcasting sector with
    independent national broadcasting organizations, Today FM (radio)
    and TV3 (television) now challenging the state-controlled
    Radio-Telefis Eireann (RTE) organization. There are also a large
    number of independent radio stations operating in local areas. The
    Irish cable television system is available in urban areas with about
    one-third of the population having cable service, another third
    having multi-channel service, which includes British TV
    transmissions, and the remaining one-third receiving only RTE
    television programming.

-   The Advertising Standards Authority of Ireland
    ([http://www.asai.ie](http://www.asai.ie/)) has established a code
    of standards that must be complied with by all advertisers.
    Advertising films must be approved before showing. Detailed
    advertising rates can be obtained from most local advertising
    agencies.

-   There are numerous advertising agencies with a wide range of
    services in Ireland. Advertising agencies utilize every medium
    available to advertisers: direct mailings, press, radio, television,
    point-of-sale advertising, posters, and public transportation
    vehicles. Other promotional techniques, such as coupons, samples,
    premiums, and prizes, are also used. The government strictly
    enforces laws covering gaming and lotteries, as well as restrictive
    trade practices. Companies that advertise and sell goods and
    services should obtain local advice regarding provisions of the laws
    and consumer acceptance of promotional or marketing techniques.

Major organizations engaged in market research in Ireland are mainly
headquartered in Dublin. These firms provide the usual range of
services, including store audits, consumer surveys, product
field-testing, and attitude and motivation research. In general, if the
advertising technique works well for a product line in the United States
and elsewhere in Europe, the Irish market also should be receptive to
the theme. There are differences, however, in spending habits and
preferences for types of goods and services, and local opinion should be
obtained first for a specific strategy that calls for a major commitment
of resources.

## Pricing [**Return to top**](#ch3)

Sales quotations are usually given on a c.i.f. (cost, insurance,
freight) basis, to the point of importation. The c.i.f. quote is
generally preferred by Irish importers as they are familiar with the
customs charges and taxes on the product that are levied at the time of
importation, but may not be acquainted with U.S. trucking and ocean or
air charges.

-   Large firms and department stores, however, may purchase on f.o.b.
    (free on board) terms when they prefer to arrange for shipping and
    insure the goods themselves.

-   Quotations and invoices can be made in U.S. dollars.

-   Ireland incorporates EC customs duties, and applies a value-added
    tax (VAT) of 21% to virtually all goods, including imported goods,
    sold in Ireland.

## Due Diligence [**Return to top**](#ch3)

Manufacturers seeking an Irish agent or distributor to service the
domestic and European markets should consider visiting Ireland to
appraise the relative merits of prospective agents. In addition to
acquainting the U.S. exporter directly with local market conditions and
special sales characteristics, a visit also provides an opportunity to
discuss policy and sales campaigns with the agent or distributor, review
responsibility for customs fees, taxes, labeling, transportation
modalities, business procedures, payments and, if necessary,
registration. These responsibilities should always be clearly defined
before undertaking a long-term relationship.

-   The U.S. Commercial Service at the U.S. Embassy in Dublin offers a
    range of business solutions to U.S. firms seeking agents,
    distributors, sales, or business partners in Ireland. U.S. firms
    interested in achieving representation in Ireland are welcome to
    contact the U.S. Commercial Service in Dublin
    (<http://www.buyusa.gov/ireland>) for information on matchmaking
    services such as the Gold Key Service (GKS) and International
    Partner Search (IPS).

-   U.S. firms are strongly encouraged to maintain close contact with
    newly appointed agents or distributors throughout their working
    relationship. Since certain products and equipment require servicing
    to maintain their useful life, the U.S. exporter should determine
    when this is needed and develop a distribution network to include
    such servicing by qualified personnel. To develop trust, loyalty,
    and marketing skills, U.S. producers frequently bring their agents
    or distributors to the United States for training and marketing
    assistance.

-   Large Irish companies have listings on the Dublin and London stock
    exchanges and in recent years, emerging high technology and Internet
    companies have secured listings on the Nasdaq and German Neuer
    markets. Publicly traded companies must publish substantive annual
    reports which meet the reporting requirements laid down by the
    accounting bodies and which comply with stock exchange regulations.
    In addition, company legislation requires that every registered
    company both privately held and publicly traded must file a set of
    audited accounts annually with the Companies Registration Office.

Copies of such audited accounts can be obtained directly from the
Companies Registration Office for a specified fee at
[http://www.cro.ie](http://www.cro.ie/). In addition, mercantile
agencies such as Dun & Bradstreet Ireland will undertake commercial
credit reporting on any company in Ireland. These reports are available
on-line at [http://www.dbireland.com](http://www.dbireland.com/).

## Local Professional Services [**Return to top**](#ch3)

An updated list of local professional service providers, to assist U.S.
companies in doing business in Ireland, can be found on the CS Dublin
website at <http://www.buyusa.gov/ireland>.

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch4 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 4: Leading Sectors for U.S. Export and Investment 

**Commercial Sectors**

-   [1. Household and Consumer Goods](#household-and-consumer-goods)

-   [2. Drugs and Pharmaceuticals](#leadingsector2)

-   [3. Electrical Power Systems](#electrical-power-systems)

-   [4. Building Products](#building-products)

-   [5. Franchising](#medical-equipment)

-   [6. Medical Equipment](#medical-equipment)

-   [7. Computer Software](#computer-software)

> [Agricultural Sector](#agricultural-sectors-return-to-top)

## 1. Household and Consumer Goods

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        18,249         18,778       19,322

  Total Local Production   15,407         15,869       16,345

  Total Exports            8,019          8,227        8,440

  Total Imports            10,768         11,026       11,290

  Imports from the U.S.    1,053          1,129        1,211
  ------------------------ -------------- ------------ -------------------

(Note: The above statistics are unofficial estimates.)

Growth in the household and consumer products market closely corresponds
with trends in consumer spending. There is strong demand for a wide
range of household and consumer goods in Ireland. The country has a long
tradition of furniture making and a wide variety of indigenous giftware
manufacturers and exporters, including Waterford Crystal, Newbridge
Silverware and Stephen Pearce Pottery. In addition, there are some 100
overseas companies producing household and consumer goods in Ireland
including Hasbro, Braun and Bose.

### Best Prospects/Services [**Return to top**](#ch4)

It is estimated that an Irish person spends more than \$2,000 a year
improving their home. One of the biggest trends in the household and
consumer goods industry in recent years has been the constant demand for
outdoor and gardening products such as barbeques, patio heaters and
garden furniture. The market for garden furniture alone is estimated at
\$80 million. Demand for home security products has also risen. Other
sectors of the market that are doing well are consumer electronics,
jewellery, sporting goods and apparel, tools, and toys and games. With a
relatively young and growing population and some eighty percent homes
privately owned, this market represents long term growth potential.

### Opportunities [**Return to top**](#ch4)

In addition to export sales of household and consumer goods in Ireland,
market opportunities include potential joint ventures with Irish
partners in products such as furniture, soft furnishings, housewares,
DIY/hardware, giftware, jewelry, toiletries and cosmetics, non-food
groceries, clothing, footwear, toys, stationery, music/books, sports
goods and leisure products.

### Resources [**Return to top**](#ch4)

<http://www.forfas.ie/publications/retail_dynam/index.html>

## 2. Drugs and Pharmaceuticals

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        4,734          5,255        5,781

  Total Local Production   34,388         38,170       41,987

  Total Exports            33,390         37,063       40,769

  Total Imports            3,737          4,148        4,563

  Imports from the U.S.    750            832          915
  ------------------------ -------------- ------------ -------------------

Note: The above statistics are unofficial estimates.

Ireland is ranked among the top 10 pharmaceutical exporting countries in
the world. The industry comprises 150 foreign and national companies,
employing over 24,000 people. Total investment by overseas firms is
estimated at \$13 billion and employment growth in the sector averages
at around 8% every year. Statistics for 2007 indicate an increase in
exports of pharmaceuticals to \$37 billion making it the fastest growing
export sector in Ireland, representing almost 50% of all Irish exports.

Pharmaceutical companies engage in manufacturing, marketing, contract
R&D and clinic trials and produce both bulk and finished pharmaceuticals
in the form of generic and branded products. They are supported by a
sophisticated infrastructure of serviced sites, public utilities and
specialist support services.

Sixteen out of the top twenty pharmaceutical companies in the world have
manufacturing facilities in Ireland where six out of the world's top
selling drugs are produced including Lipitor and Zocor. R&D investment
remains low but this figure is expected to rise. Ireland's focus for the
industry has shifted from one of production to the movement of
activities up the value chain to include the development of R&D
activities and the establishment of customer support, telemarketing,
shared services and e-commerce activities.

### Best Prospects/Services [**Return to top**](#ch4)

A strong sub-supply sector has grown up around the pharmaceutical
industry to provide engineering, environmental consultancy, laboratory,
health and safety, packaging and other support services. Pharmaceutical
companies source 44% of all goods and services locally. The sub-supply
sector matches the industry in terms of employment on a one-to-one
ratio.

Ireland has the third lowest consumption per capita of medicines in the
EU yet the market is growing annually by over 10%. Inflation in
pharmaceutical products is high compared to the EU average and due to
the increased focus on cost, doctors are being urged to prescribe more
generic drugs. State expenditure on medicines has increased in tandem
with the increase in public expenditure on health, driven by the
introduction of Government initiatives to improve public health, an
increasing population and the increasing availability of medical cards.
Medicines account for just 10.6% of non-capital health expenditures.
Despite heavy lobbying from existing pharmacies, the Irish pharmacy
market was deregulated at the beginning of 2002, placing no limit on the
number of licenses the Government can issue for pharmacies subject to
proper standards being met.

### Opportunities [**Return to top**](#ch4)

Self-medication remains an important part of the total Irish market for
pharmaceutical products with analgesics holding 26% market share, cough
and cold treatments, 23%, vitamins, 18%, digestive & intestinal
remedies, 17% and skin treatment, 16%. The four leading therapy areas
are cardiovascular system at 21%, central nervous system - 18%,
alimentary/metabolism - 17% and respiratory - 11%. Over-the-counter
(OTC) medicines account for 16% of the total pharmaceutical market.
Pharmacies account for 81% of the distribution network, hospitals and
doctors account for 15%, while the remaining 4% comprises of
supermarkets and other retail outlets.

Opportunities exist for U.S. suppliers to capitalize on the strong level
of receptivity for U.S. drugs and pharmaceuticals. Future market
potential remains strong due to an anticipated increase in population, a
general increase in health spending and the gradual aging of the
population. Most promising sub-sectors are generic medicines and
non-prescribed OTC products including complementary medicines.

### Resources [**Return to top**](#ch4)

<http://www.idaireland.com/home/index.aspx?id=64>

## 3. Electrical Power Systems 

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        2,406          2,527        2,629

  Total Local Production   1,597          1,677        1,744

  Total Exports            588            617          640

  Total Imports            1,397          1,467        1,525

  Imports from the U.S.    227            238          248
  ------------------------ -------------- ------------ -------------------

Note: The above statistics are US\$ millions and are unofficial
estimates

The Irish electricity market is fully liberalized and open to
competition since February 2005. The sector has experienced major
re-organization in recent years as the Irish government implemented EU
deregulation and liberalization proposals for the power generation and
transmission sector. Fully dispatchable plant capacity was 6,445 MW in
2007. Total system demand is just below 29,000 TWh annually and growing
at approximately 3.5% annually.

The Commission for Energy Regulation (CER) is the independent body
responsible for overseeing the liberalization of Ireland\'s energy
sector. The dominant local player is the utility - Electricity Supply
Board (ESB). ESB PG (Power Generation) is the largest (60%) owner of
Irish generation capacity. ESB PG must close or divest 1,300 MW of
existing power plant by 2010 to ensure its market share is reduced to
40% by 2010. It is forecast that this development will result in Ireland
having 430 MW less dispatchable capacity in 2011. ESB PES (Public
Electricity Supplier) is the monopoly electricity supplier to customers
in Ireland. DSO/MRSO are the operators of the Distribution System and
Meter Registration Systems respectively. While these activities are
licensed individually, the current holder of both licenses is the ESB.
Ownership of the transmission system rests with the ESB as transmission
asset owner (TAO) while EirGrid acts as the Transmission System Operator
(TSO).

### Best Prospects/Services [**Return to top**](#ch4)

Given the continued strong growth in electricity demand, there are
concerns about Ireland's ability to cope with possible electricity
supply/demand shortfalls especially given the country's relative
isolation from the European electricity network. An inter-connector,
with a net transfer capacity of 330MW, with Northern Ireland represents
Ireland's sole connectivity to the European network. The Single
Electricity Market for the island of Ireland went live in November 2007
following completion of the joint Ireland/Northern Ireland All-Island
Project (AIP). EirGrid is proceeding with plans to construct a 500 MW
East-West inter-connector with the UK. The competition process was
launched in September 2007 with the intention to award the contract
during 2008 to ensure the inter-connector can be operational by 2012. As
Ireland imports approximately 90% of its primary energy requirements,
renewable energy is attracting substantial attention across the
commercial and political spectrum. Renewable sources account for 8.6% of
electricity generation. The Irish government plans to raise this to 15%
by 2010 with a further target of 33% by 2020.

### Opportunities [**Return to top**](#ch4)

U.S. companies have achieved success in supplying technology, equipment,
and systems to Irish powergen operators. The ESB's ongoing investment
plans for upgrading its powergen assets, transmission and distribution
networks allied with IPP investment in new generation capacity as well
as sustainable energy developments offer excellent opportunities going
forward.

### Resources [**Return to top**](#ch4)

<http://www.dcmnr.gov.ie/Energy>

[http://www.cer.ie](http://www.cer.ie/)

[http://www.esb.ie](http://www.esb.ie/)

[http://www.eirgrid.ie](http://www.eirgrid.ie/)

[http://www.sei.ie](http://www.sei.ie/)

<http://www.e-tenders.gov.ie/>

## 4. Building Products

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        1,949          1,984        2,019

  Total Local Production   1,591          1,619        1,648

  Total Exports            612            627          642

  Total Imports            978            1,001        1,025

  Imports from the U.S.    50.0           51           51
  ------------------------ -------------- ------------ -------------------

Note: The above statistics are unofficial estimates.

The exceptional performance of the construction sector over the past
decade has resulted in construction now accounting for a sizable
proportion of economic activity. Over one half of the sector's output
comes from new housing construction. The balance is generated by
construction projects in the private and public non residential sectors
as well as from repair, maintenance and improvement projects associated
with the existing stock of buildings and infrastructure.

### Best Prospects/Services [**Return to top**](#ch4)

Ireland has a well-developed indigenous building products industry.
Concrete products, roof tiles, clay bricks, cement, insulated wall and
roofing systems, timber products including roof timbers and windows,
bathroom products, and decorative coatings are all produced locally. At
the same time, the market is very open to innovative imports, as well as
time saving and low maintenance products.

### Opportunities [**Return to top**](#ch4)

The timber market in Ireland has been strong in recent years. Demand has
come from both new-home buyers looking to get their new houses set up
and from existing householders who have decided to renovate. In the
flooring end of the market, consumers are moving over to timber as a
flooring solution more so than ever before and demand for timber has
been very strong. Roofing and cladding sales continue to be buoyant
especially in the domestic housing market with concrete and cement fiber
tiles being the most popular. PVC windows, fascia and rain water systems
are also in demand.

### Resources [**Return to top**](#ch4)

<http://www.irishbuildingindustry.ie/>

## 5. Franchising

### Overview [**Return to top**](#ch4)

  --------------------------------- ---------- --------- -----------------
                                    2006       2007      2008 (estimated)

  Total Sales                       3,085      3,279     3,410

  Total Sales by Local Firms        348        370       385

  Sales by Foreign-owned Firms (non 1,517      1,612     1,676
  US)                                                    

  Sales by U.S.-owned Firms         1,220      1,297     1,349

                                                         
  --------------------------------- ---------- --------- -----------------

Note: The above statistics are unofficial estimates and exclude food
retailer/symbol franchises

The franchise sector has experienced substantial growth in the past
number of years with over 270 systems now operating over 2,700
individual units in Ireland. The industry supports approximately 25,000
full-time equivalent jobs and during 2007 generated annual sales in
excess of \$3.2 billion. The number of franchise outlets is expected to
double over the next three years. Royalty fees average at around 6.5%
with advertising levies averaging 2.2%.

Today, the market is attracting the attention of U.S. franchise
companies that may have overlooked Ireland in the past opting first to
exploit larger EU markets. This surge in interest is being met by a
healthy supply base of potential master licensees and franchisees many
of whom are interested in acquiring the rights for Ireland, the United
Kingdom and other European markets. Franchise concepts that have
recently entered the U.K. market via Irish master licensees include Foot
Solutions, Instant Imprints and Team Logic.

Many factors have contributed to the growth of franchising in Ireland
including a buoyant economy, a franchise friendly environment, an
increase in demand for business and personal services and increased
disposable income. The U.S. is now the dominant source of franchises
accounting for 41% of the market, overtaking the U.K. by 6%. Indigenous
franchises account for 14% of the market while foreign franchises hold
9% of market share.

### Best Prospects/Services [**Return to top**](#ch4)

The principal sectors served by franchise operations in Ireland are
food/restaurant, home improvement, maintenance, business and
professional services. U.S. franchises include household names such as
Mail Boxes, Etc., McDonald's, TGI Fridays, Quiznos and Remax together
with fast growing franchises such as Candleman, Curves and Cuts for
Fitness. In line with high growth in the sector, established fast food
companies including KFC, Burger King and Domino's Pizza have announced
aggressive expansion plans to develop a combined total of 140 units over
the next four years.

New American entrants to the market include Its Just Lunch, Salad
Creations, Two Men & A Truck and HomeWatch Care Givers. Indigenous
franchises are also contributing to the strong growth of the sector with
the rapid expansion of franchises such as Supermacs, Abrakebabra, Nectar
Juice Bars and Ireland's most successful domestic and international
franchise, O'Briens Irish Sandwich Bars.

### Opportunities [**Return to top**](#ch4)

Recently established American franchises in Ireland are breaking records
relative to start-ups in their systems worldwide. Future growth areas
include automotive, business services, children's education, home
maintenance, retail, senior homecare, restaurant and food-related
franchises.

### Resources [**Return to top**](#ch4)

<http://www.irishfranchiseassociation.com/>

## 6. Medical Equipment

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        421            460          502

  Total Local Production   2,369          2,605        2,865

  Total Exports            2,740          3,014        3,315

  Total Imports            794            871          956

  Imports from the U.S.    474            520          571
  ------------------------ -------------- ------------ -------------------

Note: The above statistics are unofficial estimates.

The medical devices industry currently consists of some 100
manufacturing companies that employ approximately 22,000 people in
Ireland. The sector is characterized by significant and continuing U.S.
investment with 15 of the world's top 25 medical technologies companies
having significant operations in Ireland.

### Best Products/Services [**Return to top**](#ch4)

International manufacturers use Ireland as a manufacturing and sales
base and export their output to European and worldwide markets. Many
companies operate in niche sectors with predominant activity centered on
non-powered passive devices. Sub-sectors include interventional
products, orthopedic implants, contact lenses, micro-electronic devices,
dental, hearing and disposable products. Indigenous manufacturers are
primarily small-scale companies producing disposable products. However,
an increased interest in hi-tech products and R&D is rapidly emerging.
The government of Ireland has pledged over \$363 million to support a
range of projects to develop research and development infrastructures,
provide training and to facilitate technology licensing and industry
development.

### Opportunities [**Return to top**](#ch4)

Following from the publication of the National Health Strategy Plan 2002
-- 2011 in November 2001, the Irish government's attention has turned to
the radical reform of the healthcare service industry. A series of
reports have been published which outline proposed steps to create a
system that is more accountable, efficient and capable of responding to
emerging public needs through focusing on reorganization, financial
management, manpower issues and information management. The reform of
the sector will bring new and extensive opportunities for U.S. medical
device and telemedicine companies in the medium to long term.

The U.S. dominates the import market in Ireland as U.S. medical devices
and equipment enjoy a strong reputation among Irish medical personnel.
Most promising sub-sectors include medical instruments, disposable
medical products and electro-medical apparatus. Major opportunities also
exist for sub-supply companies as manufacturers increasingly source from
the local market.

### Resources [**Return to top**](#ch4)

<http://www.ibec.ie/ibecweb.nsf/wvBusinessAssociations/Irish_Medical_Devices_Association?OpenDocument>

## 7. Computer Software

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        590            610          650

  Total Local Production   16,160         16,960       17,645

  Total Exports            15,865         16,655       17,320

  Total Imports            295            305          325

  Imports from the U.S.    140            146          155
  ------------------------ -------------- ------------ -------------------

Note: The above statistics are US\$ millions and are unofficial
estimates.

The Irish software market is one of Ireland's strongest business sectors
with annual growth rates of 3-6% in recent years. Overall, the market is
more fragmented than the computer hardware sector, and the applications
software segment is very fragmented. The Irish software industry is
comprised of 900 firms employing over 24,000 people. It is an
exported-oriented industry with over 95% of domestic production sold
abroad. While Ireland is ranked as one of the largest exporters of
software worldwide, some 60% of Irish software exports actually
originate from U.S. subsidiaries. The 140 multinational software
companies located in Ireland employ 13,000 people and use their
operations to carry out a broad range of activities including core
software development, eLearning, product customization, software
testing, and fulfillment.

### Best Products/Services [**Return to top**](#ch4)

While overall IT spending is expected to grow by 3.5% in 2008, the Irish
software market is forecast to increase by 6%. The two key drivers
behind this expected growth are an increased focus on business-value
propositions as opposed to operational cost reduction among IT decision
makers and stable Government IT spending. Investment in enterprise
software is expected to exceed \$290 million in 2008 driven by document
and content management solutions, business intelligence and analytics,
database, web servers and enterprise portals. Expenditure on network
storage software is over \$70 million while the security software market
is estimated at \$140 million. Spending on software in the healthcare
sector is expected to reach \$38 million in 2008.

### Opportunities [**Return to top**](#ch4)

The Irish software sector offers excellent opportunities, at both market
and sectoral levels, for U.S. firms with innovative and leading-edge
software products. Market-specific opportunities exist within the ERP,
financial, healthcare, telecom segments outlined above while sectoral
potential is encompassed by looking upon Ireland as a proven 'gateway to
Europe'. In this regard, U.S. software SME's seeking to penetrate the
lucrative European software market should consider entering into joint
venture/licensing agreements with Irish firms who have the experience of
exporting to EU markets. Local software firms engaging in exporting are
interested in matching up with U.S. software firms.

### Resources [**Return to top**](#ch4)

<http://www.ictireland.ie/>

[http://www.software.ie](http://www.software.ie/)

[http://www.ireach.ie](http://www.ireach.ie/)

<http://www.e-tenders.gov.ie/>

## Agricultural Sectors [**Return to top**](#ch4)

## 1. Brewers or Distiller's Dregs and Waste

### Overview [**Return to top**](#ch4)

+------------------------+-------------+-----------+------------------+
|                        | [2005]{     | [2006]{.u | [2               |
|                        | .underline} | nderline} | 007]{.underline} |
|                        |             |           |                  |
|                        | [Metric     | [Metric   | [Metric tons     |
|                        | tons]{      | tons]{.u  | (e               |
|                        | .underline} | nderline} | st)]{.underline} |
+------------------------+-------------+-----------+------------------+
| Total Consumption      | 232,190     | 219,861   | 170,000          |
+------------------------+-------------+-----------+------------------+
| Total Local Production | Nil         | Nil       | Nil              |
+------------------------+-------------+-----------+------------------+
| Total Exports          | 26,085      | 26,980    | 10,000           |
+------------------------+-------------+-----------+------------------+
| Total Imports          | 258,275     | 246,841   | 180,000          |
+------------------------+-------------+-----------+------------------+
| Imports from U.S.      | 236,121     | 201,472   | 125,000          |
+------------------------+-------------+-----------+------------------+

Note: The above statistics for 2007 are unofficial estimates

Ireland imports significant amounts of feed ingredients to supplement
native grown grain and grass-based animal feeds. While the quantities
imported over the past few years have been declining steadily as a
result of lower consumption in the beef cattle sector, the market
remains relatively sizable. Consumption, reduced due to lower prices for
cattle (as producers reduce the use of non-grass based feed ingredients
in the winter months), was further hindered by farmer reaction to
disease outbreaks, especially BSE and in 2001 - hoof and mouth disease
(FMD). The Irish feed industry continues to need large quantities of
corn gluten feed (CGF) and other byproducts of the brewing industry such
as corn sprout pellets. Until now U.S. suppliers dominated imports,
while competition for the market is intense with Canadian and South
American supplies available. Importers are also prepared to substitute
with Asian-sourced feed ingredients if there is a price advantage. In
addition to brewer's dregs and wastes, Irish importers import
significant quantities of soybean and other feed grains. However strict
EU legislation on the import of GMOs is having a dramatic effect on the
market. That coupled with a long time-lag in having GM varieties
approved in the EU is causing importers much anxiety and forcing them to
look for non-GM sources.

Feed importers are also suffering from supply shortages and hence
increased prices as the feed industry competes for supplies with
bio-ethanol industry. Exporters should note that Irish authorities have
a "zero-tolerance" policy in relation to meat and bone meal. Any animal
feed grain or ingredient found with any (even a trace of) MBM will be
detained and destroyed.

For further details, importer contacts etc. exporters should contact the
Office of Agricultural Affairs, American Embassy, Dublin; tel:
+353-1-630 6254, fax: +353-1-668 7423 or email: agdublin@usda.gov.

[**Return to top**](#ch4)

## Agricultural Sectors [**Return to top**](#ch4)

## 2. Fruit (Pears)

### Overview [**Return to top**](#ch4)

+------------------------+-------------+-----------+------------------+
|                        | [2005]{     | [2006]{.u | [2               |
|                        | .underline} | nderline} | 007]{.underline} |
|                        |             |           |                  |
|                        | [Metric     | [Metric   | [Metric tons     |
|                        | tons]{      | tons]{.u  | (e               |
|                        | .underline} | nderline} | st)]{.underline} |
+------------------------+-------------+-----------+------------------+
| Total Consumption      | 12,064      | 10,506    | 12,000           |
+------------------------+-------------+-----------+------------------+
| Total Local Production | Nil         | Nil       | Nil              |
+------------------------+-------------+-----------+------------------+
| Total Exports          | 251         | 631       | 600              |
+------------------------+-------------+-----------+------------------+
| Total Imports          | 12,315      | 11,137    | 12,600           |
+------------------------+-------------+-----------+------------------+
| Imports from U.S.      | 57          | 20        | 100              |
+------------------------+-------------+-----------+------------------+

Note: The above statistics for 2005 are unofficial estimates

Given its temperate climate, Ireland must import all of its tropical,
citrus, and other out-of-season fruit. Opportunities exist for
year-round imports of all fruit, particularly oranges, grapefruit, pears
and grapes. Strong marketing of U.S. pears has made Irish consumers
aware of the availability and quality of U.S. produce. A similar effort
for U.S. apples is now underway and is producing encouraging results.

Further marketing efforts could increase opportunities for exports of
other fruits to Ireland. However, many exporters such as those in
southern EU member states, North African countries, and South Africa are
extremely active and price competitive in the marketplace.

For further details, importer contacts etc. exporters should contact the
Office of Agricultural Affairs, American Embassy, Dublin; tel:
+353-1-630 6254, fax: +353-1-668 7423 or email: agdublin@usda.gov.

[**Return to top**](#ch4)

## Agricultural Sectors [**Return to top**](#ch4)

## 3. Wine

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- -------------- -----------------
                           2005           2006           2007 Kiloliters
                           Kiloliters     Kiloliters     

  Total Consumption        65,386         68,156         68,800

  Total Local Production   Nil            Nil            Nil

  Total Exports            531            188            200

  Total Imports            65,917         68,344         69,000

  Imports from U.S.        2,400          2,466          3,000
  ------------------------ -------------- -------------- -----------------

Note: The above statistics for 2007 are unofficial estimates.

There has been continued and sustained growth in the Irish wine market
since 1990. Much of this growth has been in an abundance of so-called
"New World" wines. It is now estimated that over 49% of the population
of Ireland regularly drink wine, compare to 28% in 1990, and that red
wine holds a 51% share of total sales. Part of the growth can be
attributed to the increase in spending power that economic growth has
created; and part can be attributed to Irish consumers' openness to new
tastes.

U.S. wine exports to Ireland have stabilized in the past two years,
after ten years of continuous growth. From being a relatively unknown
source of wine in the early 1990's, U.S. labels have gained a 10% share
of the Irish market. This is despite the table above which just shows
direct shipment into Ireland. Many U.S. wineries consolidate shipment
through the UK and onward ship to Ireland. The success of U.S. wine can
be attributed to strong marketing by a small number of labels aimed at
the popular price bracket. Wine exports should try to build on the
favorable market reaction, which U.S. wines currently enjoy. Irish
importers continue to seek out new labels, and as many of the wines
currently on sale in Ireland originate from California, opportunities
exist for wines from other states. Wine from smaller vineyards or
\"boutique wines\" have also become popular with importers.

Exporters should note that there is active competition among exporting
countries. Main competition continues to be from labels from EU
countries, Australia and New Zealand. Strong marketing by Chilean and
especially South African labels during the past few years resulted in
increased market shares for these wines. Marketing efforts of exporters
should also include point of sale material, which helps consumers focus
attention on labels. Many wineries also include marketing promotions
such as competitions to gain a customer base especially for wines at the
inexpensive sector of the market. Exporters should also note that as
excise duties are quite high in Ireland, an inexpensive wine at winery
level might in fact become relatively expensive when it reaches retail
level.

For further details, importer contacts etc. exporters should contact the
Office of Agricultural Affairs, American Embassy, Dublin; tel:
+353-1-630 6254, fax: +353-1-668 7423 or email: agdublin@usda.gov.

[**Return to top**](#ch4)

## Agricultural Sectors [**Return to top**](#ch4)

## 4. Sauces 

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- -------------- -----------------
                           2005 \$        2006 \$        2007 \$ Million
                           Million        Million        

  Total Consumption        NA             NA             NA

  Total Local Production   NA             NA             NA

  Total Exports            NA             NA             NA

  Total Imports            60.8           67.1           78.0

  Imports from U.S.        0.328          0.431          0.525
  ------------------------ -------------- -------------- -----------------

The above data includes items such as mixed condiments and seasonings
but the overall level of annual increase is an important indicator of
the popularity of the sector. Data on local consumption and exports are
not available. The 2007 data are unofficial estimates.

The market for ready-made sauces has expanded considerably in Ireland
over the past few years and has become a potential niche market for U.S.
suppliers especially those involved in ethnic food sauces. While Ethnic
food (Chinese, Indian, Mexican) is still a growth sector within his
sectors, such as Chinese are reaching maturity. While Indian food
continues to increase in popularity there is some market belief that
Tex-Mex may be the next successful segment.

For further details, importer contacts etc. exporters should contact the
Office of Agricultural Affairs, American Embassy, Dublin; tel:
+353-1-630 6254, fax: +353-1-668 7423 or email: agdublin@usda.gov.

[**Return to top**](#ch4)

## Agricultural Sectors [**Return to top**](#ch4)

## 5. Hardwood Lumber 

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- -------------- -----------------
                           2005 \$        2006 \$        2007 \$ Million
                           Million        Million        

  Total Consumption        NA             NA             NA

  Total Local Production   NA             NA             NA

  Total Exports            NA             NA             NA

  Total Imports            114.8          120.0          134

  Imports from U.S.        8.9            11.2           12.0
  ------------------------ -------------- -------------- -----------------

Note: The above statistics for 2007 are unofficial estimates.

Good economic conditions have increased the usage of hardwood lumber in
Irish construction and interior usage since the mid 1990\'s. American
lumber has built up a sizable market share in the past ten years.
Importers have become familiar with the quality of the product from
marketing activities carried out by U.S. lumber companies and
associations.

For further details, importer contacts etc. exporters should contact the
Office of Agricultural Affairs, American Embassy, Dublin; tel:
+353-1-630 6254, fax: +353-1-668 7423 or email: <agdublin@usda.gov>.

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking Requirements](#twentyone)

-   [Customs Contact
    Information](#customs-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

Ireland has been a member of the European Union (EU) since January 1,
1973. The EU is a customs union with free trade among the 25 Member
States. The EU levies a common tariff on imports coming from non-EU
countries such as the United States. The EU also has a common
agricultural policy, joint transportation policy, and free movement of
goods and capital within Member States. Under agreements reached between
the 25 EU member states and the remaining four members of the European
Free Trade Association (EFTA), duty-free trade for industrial products
has been achieved between the 15 EU and 3 EFTA countries. Taxes, such as
the value-added tax (VAT) and excise taxes, are levied in the country of
final destination.

## Import Tariffs [**Return to top**](#ch5)

Ireland applies EU tariffs (customs duties) which are based on the
international Harmonized System (HS) of product classification. Duty
rates on manufactured goods from the United States generally range from
five to eight% and are usually based on the c.i.f. value of the goods at
the port of entry. The c.i.f. value is the price of the goods (usually
the sales price) plus packing costs, insurance, and freight charges to
the port of entry. See: <http://www.revenue.ie/services/customs.htm>

-   Most raw materials enter duty free or at low rates. In accordance
    with EU regulations, agricultural and food items are often subject
    to import levies that vary depending on world market prices. The
    rates are based on the composition of foods and in particular some
    packaged foodstuffs can be affected.

Valued-added tax (VAT) is charged on the sale of goods and services
within Ireland. Unlike customs duty, which is the same for all EU member
countries, VAT is established by the tax authorities of each country and
differs from country to country.

-   In Ireland, the standard VAT rate is 21%.

-   At each stage of the manufacturing and distribution chain, the
    seller adds the appropriate amount of VAT (tax on the amount of
    value that the seller added to the product, plus the amount of VAT
    passed on to the seller by the supplier) to the sales price.

-   The tax is always quoted separately on the invoice. This process
    repeats itself at each stage until the product is sold to the final
    consumer, who bears the full burden of the tax.

-   Every second month, all firms based in Ireland who are registered
    for VAT purposes subtract the VAT paid on the purchases of goods and
    services from the VAT collected on sales and remit the balance to
    the Irish government.

-   For imports into Ireland, the VAT is levied at the same rate as for
    domestic products or transactions. The basis on which the VAT is
    charged on imports is the c.i.f. value at the port of entry, plus
    any duty, excise taxes, levies, or other charges (excluding the VAT)
    collected by customs at the time of importation. This total
    represents the value of the import when it clears customs.

-   The importer is liable for payment of customs duties, VAT, and any
    other charges at the time of clearing the goods through customs.

-   Temporary imports that will be re-exported are not subject to the
    VAT. The importer may have to post a temporary bond for the amount
    of the customs duty and taxes as security, which will be canceled
    when the goods are taken out of the country.

-   Digitally-delivered goods and services such as software, music,
    film, games, and distant learning programs that are consumed within
    the EU are subject to VAT irrespective of whether they came from EU
    or non-EU based suppliers.

Excise taxes are levied on a limited number of products such as gasoline
and diesel fuel, spirits, beer, wine, bottled water, cider, tobacco,
motor vehicles, and liquid petroleum gas. The excise rates vary,
depending on the products. The tax is imposed whether the goods are
manufactured in Ireland or imported from EU or non-EU countries.

-   Duties on excise goods imported from non-EU countries may be
    collected at the point of importation or when the goods are
    subsequently removed from a bonded warehouse.

-   Excise tax is in addition to any customs duty or VAT. For trade
    within the EU, the duties are collected in the Member State of
    consumption. Special arrangements operate to allow excise goods to
    move duty free between the Member States and to collect the duty in
    the country of consumption.

-   Firms wishing to manufacture goods subject to excise tax in Ireland
    must first obtain a license from the Office of the Revenue
    Commissioners. Premises may be approved to receive and store certain
    excise goods without payment of duty. This approval allows the
    deferral of duty on goods while they are being worked on or stored.
    Authorization may be obtained to import goods without the payment of
    tax to undergo processing and re-exportation.

## Import Requirements and Documentation [**Return to top**](#ch5)

Prior to signing a long-term contract or sending a shipment of
considerable value, a U.S. exporter may wish to first obtain an official
ruling on Irish customs classification, duty, and taxes.

-   Requests can be sent to The Office of the Revenue Commissioners,
    Division IV, Dublin Castle, Dublin 2,
    (<http://www.revenue.ie/services/bus_cust1.htm>). The request should
    describe the product, the material from which it is made, and other
    details needed by customs authorities to classify the product
    correctly.

While customs will not provide a binding decision, the advance ruling
usually will be accepted if the goods are found to correspond exactly to
the sample or description provided.

-   Shipments to Ireland require one copy each of the bill of lading (or
    air waybill) and the commercial invoice for customs clearance.

-   Although no special format is necessary for the commercial invoice,
    it is advisable to include the following: date and place of
    shipment; name (firm's name) and address of the seller and the
    buyer; method of shipping; number, kind, and markings of the
    packages and their numerical order; description of the goods using
    the usual commercial description according to kind, quality, grade,
    and the weight (gross and net, in metric units) along with any
    factors increasing or decreasing the value; agreed price of goods;
    unit cost; total cost f.o.b. factory plus shipping; insurance
    charges; delivery and payment terms; and the signature of a
    responsible official of the shipper's firm.

-   Bills of lading should bear the name of the party to be notified.
    The consignee needs the original bill of lading in order to take
    possession of the goods.

-   Certificates of Origin are not required for goods of U.S. origin.
    Products which U.S. companies import and then re-export to Ireland
    require a Certificate of Origin, or other documentation that clearly
    proves their origin. Should Ireland maintain a quota on a product
    made in a foreign country, the U.S. exporter cannot re-export this
    product to Ireland.

-   Ireland participates in the International Convention to Facilitate
    the Importation of Commercial Samples and Advertising Materials.
    Samples of negligible value imported to promote sales are accorded
    duty-free and tax-free treatment. Prior authorization is not
    required. To determine whether the samples are of negligible value,
    their value is compared with that of a commercial shipment of the
    same product.

-   In obtaining duty-free status, it may be necessary for samples be
    rendered useless for future sale by marking, perforating, cutting,
    or other means.

-   Imported samples of commercial value may be granted a temporary
    entry and exemption from customs charges. A security is required in
    the amount of duty and tax chargeable, plus 10%.

-   Samples may remain in the country for up to one year. Samples cannot
    be sold, put to their normal use (except for demonstration
    purposes), or utilized in any manner of remuneration.

-   Goods imported as samples may be imported only in quantities
    constituting a sample according to normal commercial usage.

## Temporary Entry [**Return to top**](#ch5)

Adequate warehousing facilities are available in major Irish cities.
Bonded warehouses are operated in Dublin, Cork, Limerick, Waterford, and
Galway. The Dublin Port Company maintains the largest warehousing
organization in the country. In addition to storage facilities, the
Board provides services needed by distributors such as packing, sorting,
bottling, and transport service. Imported goods liable to a duty may be
stored in a bonded warehouse in the port area or other locations without
payment of duties or taxes. The goods may remain there until needed, at
which time they are cleared for Irish consumption by payment of duties
and taxes, or sent to the country of destination.

Simplified procedures are available to traveling U.S. business and
professional people for the temporary importation of commercial samples
and professional equipment for display or demonstration though the use
of a "carnet." A carnet is a customs document, obtained prior to
departure, which facilitates customs clearance for temporary imports.
With the carnet, goods may be imported without the payment of duty, tax,
or additional security. A carnet is usually valid for one year from the
date of issuance. A bond or cash deposit of 40% of the value of the
goods covered by the carnet is also required. This will be forfeited in
the event the products are not re-exported and duties and taxes are not
paid. Carnets can be obtained from the U.S. Council for International
Business ([www.atacarnet@uscib.org]()).\

## Labeling and Marking Requirements [**Return to top**](#ch5)

In Ireland, with only minor exceptions, there are no general
requirements for marking imported goods with the country of origin.
Certain food products must show particulars of place of origin, where
its absence might mislead the consumer.

-   Requirements for specific products should be obtained from the Irish
    importer.

-   The import, export, or transit of non-Irish goods with markings that
    would lead one to believe that the goods are of Irish manufacture or
    origin is prohibited.

-   False or misleading trademarks, product descriptions, and other
    deceptive indications are also prohibited. Goods may not be imported
    with marks suggestive of Irish origin unless they bear an indication
    of their true origin.

-   There are no regulations for the marking of shipping packages.
    Proper shipping practice dictates that packages should bear the
    consignee\'s mark and be numbered unless the shipment is such that
    the content of the packages can be readily identified without
    numbers.

-   Packaged foods must carry labels that conform to Irish labeling
    requirements. The information shown on the label is designed to
    provide the consumer with adequate details about the products
    including details on ingredients, net weight, \"best before\" date,
    \"use by\" date, and general usage instructions.

-   In relation to "best before" and "use by" dates, U.S. exporters
    should note that in Ireland dates are written in the following
    sequence: date, then month, then year. For example: 30 Nov 05,
    30-11-05, or 30/11/05.

Irish labeling requirements are similar to those used elsewhere in the
EU, except that the Irish authorities require that the name and the EU
address of the manufacturer, distributor, or packer also appear on the
label. Manufacturers should be mindful that, in addition to the EU's
mandatory and voluntary schemes, national voluntary labeling schemes
might still apply. These schemes may be highly appreciated by consumers,
and thus, become unavoidable for marketing purposes.

Manufacturers are advised to take note that all labels require metric
units although dual labeling is also acceptable until end of December
2009. The use of language on labels has been the subject of a Commission
Communication, which encourages multilingual information, while
preserving the freedom of Member States to require the use of language
of the country of consumption.

## Customs Contact Information [**Return to top**](#ch5)

<http://www.revenue.ie/services/customs.htm>

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-12)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Conformity Assessment](#conformity-assessment-return-to-top)

-   [Product Certification](#product-certification-return-to-top)

-   [Accreditation](#accreditation-return-to-top)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

-   Reach

###  Overview [**Return to top**](#standards-return-to-top)

The National Standards Authority of Ireland (NSAI) is Ireland\'s
Standards body ([http://nsai.ie](http://nsai.ie/)). NSAI facilitates the
development of voluntary standard documents that manufacturers or
service providers may use as an aid to meeting safety or customer
requirements. It is also a leading supplier of product and systems
Certifications Services, both domestically and internationally, and is
the provider of Legal Metrology services in Ireland. The NSAI has
offices throughout Ireland and in the United States where its standards
and certification services are provided on a commercial basis. The NSAI
represents the Irish interests in European and international Standards
bodies - groups that work towards the harmonization of standards and the
removal of technical barriers to trade.

As a member of the EU, Ireland applies the product standards and
certification approval process developed by the Community. Since the
development of a single product standard, U.S. exporters have found it
easier to comply with one EU-wide standard rather than having to meet
several individual national standards when exporting to Europe.

-   Products tested and certified in the U.S. to American standards are
    likely to have to be retested and re-certified to European Union
    (EU) requirements as a result of the EU's different approach to the
    protection of the health and safety of consumers and the
    environment.

-   Where products are not regulated by specific EU technical
    legislation, they are always subject to the EU's General Product
    Safety Directive as well as to possible additional national
    requirements.
    ([http://europa.eu.int/comm/consumers/cons_safe/prod_safe/index_en.htm]{.underline})

European Union standards created in recent years under the New Approach
are harmonized across the 25 EU member states and European Economic Area
countries in order to allow for the free flow of goods. A feature of the
New Approach is CE marking. While harmonization of EU legislation can
facilitate access to the EU Single Market, manufacturers should be aware
that regulations and technical standards might also become barriers to
trade if U.S. standards are different from those of the European Union.

###  Standards Organizations [**Return to top**](#standards-return-to-top)

EU Standards setting is a process based on consensus initiated by
industry or mandated by the European Commission and carried out by
independent standards bodies, acting at the national, European or
international level. There is strong encouragement for non-governmental
organizations, such as environmental and consumer groups, to actively
participate in European standardization.

-   Many standards in the EU are adopted from international standards
    bodies such as the International Standards Organization (ISO). The
    drafting of specific EU standards is handled by three European
    standards organizations:

-   CENELEC, European Committee for Electrotechnical Standardization
    ([http://www.cenelec.org/]{.underline})

-   ETSI, European Telecommunications Standards Institute
    ([www.etsi.org]{.underline})

-   CEN, European Committee for Standardization, handling all other
    standards ([http://www.cenorm.be/]{.underline})

-   Standards are created or modified by experts in Technical Committees
    or Working Groups. The members of CEN and CENELEC are the national
    standards bodies of the member states, which have "mirror
    committees" which monitor and participate in ongoing European
    standardization. CEN and CENELEC standards are sold by the
    individual member states standards bodies as well as through the
    American National Standards Institute (ANSI)
    [http://www.ansi.org/]{.underline}.

-   ETSI is different in that it allows direct participation in its
    technical committees from non-EU companies that have interests in
    Europe and gives away its individual standards at no charge on its
    website. In addition to the three standards developing
    organizations, the Commission of the European Union plays an
    important role in standardization through its funding of the
    participation in the standardization process of small and medium
    sized companies and non-governmental organizations, such as
    environmental and consumer groups. It also provides money to the
    standards bodies when it mandates standards development to the
    European Standards Organization for harmonized standards that will
    be linked to EU technical regulations. All EU harmonized standards,
    which provide the basis for CE marking, can be found on
    [www.newapproach.org/]{.underline}

Due to the EU's vigorous promotion of its regulatory and standards
system as well as its generous funding for its business development, the
EU's standards regime is wide and deep - extending well beyond the EU's
political borders to include affiliate members (countries which
anticipate to become full members in the future) such as Albania,
Bulgaria, Croatia, Romania, FYR of Macedonia, and Turkey. Another
category, called "partner standardization bodies" includes the standards
organizations of South Africa, Egypt, Serbia/Montenegro and Ukraine,
which are not likely to join the EU or CEN any time soon, but have an
interest in participating in specific CEN technical committees. They
agree to pay a fee for full participation in certain technical
committees and agree to implement the committee's adopted standards as
national standards. Many other countries are targets of the EU's
technical assistance program, which is aimed at exporting EU standards
and technical regulations to developing countries such as the
Mediterranean and Balkan countries, some Latin American countries,
China, and Russia.

-   To know what CEN and CENELEC have in the pipeline for future
    standardization, it is best to visit their websites. CEN's "business
    domain" page provides an overview by sector and/or technical
    committee whereas CENELEC offers the possibility to search its
    database. ETSI's portal
    (<http://portal.etsi.org/Portal_Common/home.asp>) leads to ongoing
    activities.

-   With the need to more quickly adapt to market needs, European
    standards organizations have been looking for "new deliverables"
    which are standard-like products delivered in a shorter timeframe.
    While few of these "new deliverables" have been linked to EU
    regulation, expectations are that they will eventually serve as the
    basis for a EU wide standard.
    [www.cenorm.be/cenorm/workarea/sectorfora/isss(ict)/index.asp](http://www.cenorm.be/cenorm/workarea/sectorfora/isss(ict)/index.asp)

#### 

#### NIST Notify U.S. Service

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT Agreement) to
report to the WTO all proposed technical regulations that could affect
trade with other Member countries. **Notify U.S.** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical regulations that can affect your
access to international markets. Register online at Internet URL:
[http://www.nist.gov/notifyus/](http://www.nist.gov/notifyus/%0D)

###  REACH [**Return to top**](#standards-return-to-top)

REACH stands for the \"Registration, Evaluation and Authorization of
Chemicals\". This new standard is a major reform of EU chemicals policy
that was adopted at EU level in December 2006. REACH became national law
in June 2007. REACH requires all chemicals produced or imported into the
EU in volumes above 1 ton per year to be registered with a central
European Chemicals Agency, with information on their properties, uses
and safe ways of handling them. Chemicals of very high concern, like
carcinogens, will need an authorization for use in the EU. Virtually
every industrial sector, from automobiles to textiles, could be affected
by the new policy. U.S. exporters to Europe should carefully consider
this piece of EU environmental legislation. For more information, see
the CSEU REACH webpage, starting with the market research report \'REACH
101\': <http://www.buyusa.gov/europeanunion/reach.html>

###  Conformity Assessment [**Return to top**](#standards-return-to-top)

Conformity Assessment is a mandatory step for the manufacturer in the
process of complying with specific EU legislation. The purpose of
conformity assessment is to ensure consistency of compliance during all
stages of the production process to facilitate acceptance of the final
product. EU product legislation gives manufacturers some choice with
regard to conformity assessment, depending on the level of risk involved
in the use of their product. These range from self-certification, type
examination and production quality control system, to full quality
assurance system.

-   You can find conformity assessment bodies in individual member state
    country in this list by the European Commission
    [http://europa.eu.int/comm/enterprise/nando-is/home/index.cfm.]{.underline}

-   To promote market acceptance of the final product, there are a
    number of voluntary conformity assessment programs. CEN's
    certification systems are the Keymark, the CENCER mark, and the
    European Standard Agreement Group. CENELEC has its own initiative
    [www.cenelec.org/Cenelec/Homepage.htm]{.underline} ETSI does not
    offer conformity assessment services.

###  Product Certification [**Return to top**](#standards-return-to-top)

To sell their product on the EU market of 25 member states as well as
Norway, Liechtenstein and Iceland, U.S. exporters are required to apply
CE marking whenever their product is covered by specific product
legislation. CE marking product legislation offers manufacturers a
number of choices and requires decisions to determine which
safety/health concerns need to be addressed, which conformity assessment
module is best suited to the manufacturing process, and whether or not
to use EU-wide harmonized standards. There is no easy way for U.S.
exporters to understand and go through the process of CE marking, but
hopefully this chapter provides some background and clarification.

In the eighties, the New Approach was launched to overcome the lengthy
adoption process of "old approach" type legislation. The goal of the
European Union\'s harmonization program under the New Approach is to
streamline technical harmonization and the development of standards for
certain product groups, including, among others, machinery, toys,
construction products, electromagnetic compatibility, personal
protective equipment, non-automatic weighing instruments, medical
devices, gas appliances, hot water boilers, and radio and
telecommunications terminal equipment (RTTE). Under the New Approach,
Directives cover essential safety, health and environmental
requirements. The three regional European standards organizations, CEN,
CENELEC and ETSI, are mandated by the Commission to develop technical
standards that are consistent with the essential requirements of EU
Directives.

-   Products manufactured to standards adopted by CEN, CENELEC and ETSI,
    and published in the Official Journal as harmonized standards, are
    presumed to conform to the requirements of EU Directives. The
    manufacturer then applies the CE Mark and issues a declaration of
    conformity.

-   With these, the product will be allowed to circulate freely within
    the European Union. A manufacturer can choose not to use the
    harmonized EU standards, but must then demonstrate that the product
    meets the essential safety and performance requirements. Trade
    barriers occur when design, rather than performance, standards are
    developed by the relevant European standardization organization, and
    when U.S. companies do not have access to the standardization
    process through a European presence.

The CE mark addresses itself primarily to the national control
authorities of the Member States, and its use simplifies the task of
essential market surveillance of regulated products. Although CE marking
is intended primarily for inspection purposes by EU Member State
inspectors, the consumer may well perceive it as a quality mark.

-   The CE mark is not intended to include detailed technical
    information on the product, but there must be enough information to
    enable the inspector to trace the product back to the manufacturer
    or the authorized representative established in the EU.

This detailed information should not appear next to the CE mark, but
rather on the declaration of conformity, the certificate of conformity
(which the manufacturer or authorized agent must be able to provide at
any time, together with the product\'s technical file), or the documents
accompanying the product.

###  Accreditation [**Return to top**](#standards-return-to-top)

The independent certification bodies, known as notified bodies, have
been officially accredited by competent authorities to test and certify
to EU requirements. However, under the U.S./EU Mutual Recognition
Agreements (MRAs), notified bodies based in the United States and
referred to as conformity assessment bodies, will be allowed to test in
the United States to EU specifications, and vice versa. The costs will
be significantly lower and U.S. products will, as a result, become more
competitive. At this time, the U.S./EU MRAs cover the following sectors:
EMC (in force), RTTE (in force), medical devices (in transition),
pharmaceutical (in transition), and recreational craft (in force).

-   This link lists to American and European Conformity Assessment
    bodies operating under a mutual recognition
    agreement[http://ts.nist.gov/ts/htdocs/210/gsig/mra.htm]{.underline}

-   Accreditation is handled at member state level. "European
    Accreditation" ([www.european-accreditation.org]{.underline}) is an
    organization representing nationally recognized accreditation
    bodies. Membership is open to nationally recognized accreditation
    bodies in countries in the European geographical area that can
    demonstrate that they operate an accreditation system compatible
    with EN45003 or ISO/IEC Guide 58.

###  Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

The Official Journal is the official gazette of the European Union. It
is published daily and consists of two series covering draft and adopted
legislation as well as case law, questions from the European Parliament,
studies by committees, and more
([http://europa.eu.int/eur-lex/en/index.html]{.underline}). It lists the
standards reference numbers linked to legislation
([www.newapproach.org/Directives/DirectiveList.asp).]{.underline}

National technical regulations are published on the Commission's website
[http://europa.eu.int/comm/enterprise/tris/]{.underline} to allow other
countries/interested parties to comment.

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT Agreement) to
report to the WTO all proposed technical regulations that could affect
trade with other Member countries.

"Notify U.S." is a free, web-based e-mail subscription service that
offers an opportunity to review and comment on proposed foreign
technical regulations that can affect your access to international
markets. Register online at Internet URL:
[http://www.nist.gov/notifyus/]{.underline}

###  Labeling and Marking [**Return to top**](#standards-return-to-top)

In Ireland, with only minor exceptions, there are no general
requirements for marking imported goods with the country of origin.
Certain food products must show particulars of place of origin, where
its absence might mislead the consumer.

-   Requirements for specific products should be obtained from the Irish
    importer.

-   The import, export, or transit of non-Irish goods with markings that
    would lead one to believe that the goods are of Irish manufacture or
    origin is prohibited.

-   False or misleading trademarks, product descriptions, and other
    deceptive indications are also prohibited. Goods may not be imported
    with marks suggestive of Irish origin unless they bear an indication
    of their true origin.

-   There are no regulations for the marking of shipping packages.
    Proper shipping practice dictates that packages should bear the
    consignee\'s mark and be numbered unless the shipment is such that
    the content of the packages can be readily identified without
    numbers.

-   Packaged foods must carry labels that conform to Irish labeling
    requirements. The information shown on the label is designed to
    provide the consumer with adequate details about the products
    including details on ingredients, net weight, \"best before\" date,
    \"use by\" date, and general usage instructions.

-   In relation to "best before" and "use by" dates, U.S. exporters
    should note that in Ireland dates are written in the following
    sequence: date, then month, then year. For example: 30 Nov 05,
    30-11-05, or 30/11/05.

Irish labeling requirements are similar to those used elsewhere in the
EU, except that the Irish authorities require that the name and the EU
address of the manufacturer, distributor, or packer also appear on the
label. Manufacturers should be mindful that, in addition to the EU's
mandatory and voluntary schemes, national voluntary labeling schemes
might still apply. These schemes may be highly appreciated by consumers,
and thus, become unavoidable for marketing purposes.

Manufacturers are advised to take note that all labels require metric
units although dual labeling is also acceptable until end of December
2009. The use of language on labels has been the subject of a Commission
Communication, which encourages multilingual information, while
preserving the freedom of Member States to require the use of language
of the country of consumption.

-   The EU has mandated that certain products be sold in standardized
    quantities. Council Directive 80/232/EC provides permissible ranges
    of nominal quantities, container capacities and volumes of a variety
    of products.
    [http://europa.eu.int/eur-lex/en/consleg/main/1980/en_1980L0232_index.html]{.underline}

-   The Eco-label The EU adopted legislation in 1992, revised in 2000,
    to distinguish environmentally friendly production through a
    voluntary labeling scheme called the Eco-label. The symbol, a green
    flower, is a voluntary mark. The Eco-label is awarded to producers
    who can show that their product is less harmful to the environment
    than similar such products. This "green label" also aims to
    encourage consumers to buy green products. However, the scheme does
    not establish ecological standards that all manufacturers are
    required to meet to place product on the market. Products without
    the EU Eco-label can still enter the EU as long as they meet the
    existing health, safety, and environmental standards and
    regulations.

-   There are concerns in the United States that the EU Eco-labeling
    program may become a de facto trade barrier; may not enhance
    environmental protection in a transparent, scientifically sound
    manner; may not be open to meaningful participation by U.S. firms;
    and may discriminate unfairly against U.S. business. The EU
    Eco-label is a costly scheme (up to EUR 1,300 for registration and
    up to EUR 25,000/ year for the use of the label, with a reduction of
    25% for SMEs) and has therefore not been widely used so far.
    However, the Eco-label can be a good marketing tool and, given the
    growing demand for green products in Europe, it is likely that the
    Eco-label will become more and more a reference for green consumers.

## Web Resources [**Return to top**](#ch5)

National Standards Authority of Ireland

Glasnevin

Dublin 9, Ireland

[http://www.nsai.ie](http://www.nsai.ie/)

Office of the Revenue Commissioners

Dublin Castle

Dublin 2, Ireland

http://[www.revenue.ie](http://www.revenue.ie/)

U.S. Mission to the E.U.

Foreign Commercial Service

Rue Zinner 13

B - 1000 Brussels, Belgium

Fax: 32 2 513 1228

Gwen B. Lyle -- Standards Attaché

Tel: 32 2 508 2674

gwen.lyle@mail.doc.gov

Sylvia Mohr -- Standards Specialist

sylvia.mohr@mail.doc.gov

Tel: 32 2 508 2675

Fax: 32 2 513 1228

CEN -- European Committee for Standardization

Rue de Stassart 36

B -- 1050 Brussels, Belgium

Fax: 32 2 550 08 19

Tel: 32 2 550 08 25 / 550 08 11

[www.cenorm.be]{.underline}

CENELEC -- European Committee for Electrotechnical Standardization

Rue de Stassart 35

B -- 1050 Brussels, Belgium

Tel: 32 2 519 68 71

Fax: 32 2 519 69 19

[www.cenelec.org]{.underline}

ETSI - European Telecommunications Standards Institute

Route des Lucioles 650

F -- 06921 Sophia Antipolis Cedex, France

Tel: 33 4 92 94 42 12

Fax: 33 4 93 65 22 99

[www.etsi.org]{.underline}

European Commission

Enterprise Directorate - General

Rue de la Science 15

B -- 1040 Brussels, Belgium

Mail: Office: SC15 02/09 B -- 1049 Brussels

Tel: 32 2 299 56 72

Fax: 32 2 299 16 75

[http://europa.eu.int/comm/enterprise/standards_policy/]{.underline}

EFTA -- European Free Trade Association

Rue de Trèves 74

B -- 1040 Brussels

Tel: 32 2 286 17 41

Fax: 32 2 286 17 42

[http://www.efta.int/]{.underline}

NORMAPME -- European Office of Crafts Trades and Small and Medium-Sized

Enterprises for Standardization

Rue Jacques de Lalaing 4

B -- 1040 Brussels, Belgium

Tel: 32 2 282 05 31

Fax: 32 2 282 05 35

[www.normapme.com]{.underline}

ANEC - European Association for the Co-ordination of Consumer
Representation in Standardization

Avenue de Tervueren 36, Box 4

B -- 1040 Brussels, Belgium

Tel: 32 2 743 24 70

Fax: 32 2 706 54 30

[www.anec.org]{.underline}

ECOS -- European Environmental Citizens Organization for Standardization

Boulevard de Waterloo 34

B -- 1000 Brussels, Belgium

Tel: 32 2 289 10 93

Fax: 32 2 289 10 99

EOTA -- European Organization for Technical Approvals (for construction
products)

Avenue des Arts 40

B -- 1040 Brussels, Belgium

Tel: 32 2 502 69 00

Fax: 32 2 502 38 14

[info@eota.be]{.underline}

EOTC -- European Organization for Conformity Assessment

Rue de Stassart 36

B -- 1050 Brussels, Belgium

Tel: 32 2 502 40 40

Fax: 32 2 502 42 39

[www.eotc.be]{.underline}

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch6 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer Policies](#thirtytwo)

-   [Expropriation and Compensation](#thirtythree)

-   [Dispute Settlement](#thirtyfour)

-   [Performance Requirements and Incentives](#performancereqs)

-   [Right to Private Ownership and Establishment](#thirtynine)

-   [Protection of Property Rights](#forty)

-   [Transparency of Regulatory System](#fortyone)

-   [Efficient Capital Markets and Portfolio Investment](#fortytwo)

-   [Political Violence](#fortythree)

-   [Corruption](#fortyfour)

-   [Bilateral Investment Agreements](#fortyfive)

-   [OPIC and Other Investment Insurance Programs](#fortysix)

-   [Labor](#fortyseven)

-   [Foreign-Trade Zones/Free Ports](#fortyeight)

-   [Foreign Direct Investment Statistics](#fdi)

-   [Web Resources](#web-resources-return-to-top-1)

## Openness to Foreign Investment [**Return to top**](#ch6)

IRISH GOVERNMENT\'S ATTITUDE TOWARDS FOREIGN INVESTMENT

The Irish Government actively promotes foreign direct investment (FDI),
a strategy that has fueled robust economic growth since the \"Celtic
Tiger\" period of the late 1990s. Ireland's pro-investment climate saw
total FDI stock grow from euro 53 billion in 1998 to euro 174 billion in
2002, before moderating to euro 141 billion in 2005. Traditionally, the
principal goal of investment promotion has been employment creation,
especially in technology-intensive and high-skill industries. More
recently, the Government has focused on Ireland's international
competitiveness by encouraging foreign-invested companies to enhance
research and development (R&D) activities and to deliver higher-value
goods and services.

The Irish Government\'s actions have had considerable success in
attracting U.S. investment. In 2007, the U.S. investment stock in
Ireland, a country of just over 4 million, was worth \$83 billion. In
2004, U.S. investment flows into Ireland reached \$10.4 billion, but
fell to negative \$3 billion in 2005. This reversal likely reflected the
response of U.S. firms to a one-time opportunity under the 2005 American
Jobs Creation Act to repatriate earnings to the United States at lower
tax rates. In 2005, nevertheless, Ireland attracted \$2 billion in U.S.
manufacturing investment flow, as compared to \$4 billion in Germany.
There are roughly 620 U.S. firms in Ireland, directly employing
approximately 100,000 workers and supporting work for another 250,000,
out of a total labor force of 2 million. U.S. firms operate primarily in
the following sectors: chemicals; bio-pharmaceuticals and medical
devices; computer hardware and software; electronics; and, financial
services. Ireland has become a magnet for U.S. internet/digital media
investment, with industry leaders Yahoo, Google, and Amazon making
Dublin the hub of their respective European operations.

U.S. companies are attracted to Ireland as an export platform to the EU.
In 2006, Irish-based U.S. firms exported roughly \$57 billion worth of
goods and services, mostly destined for the EU market. Other reasons for
Ireland's attractiveness as an FDI destination include: a 12.5%
corporate tax rate for domestic and foreign firms; the quality and
flexibility of the English-speaking work force; cooperative labor
relations; political stability; pro-business government policies; a
transparent judicial system; and, the pulling power of existing
companies operating successfully in Ireland (a \"clustering\" effect).
Factors that negatively affect Ireland's ability to attract investment
include: increasing labor costs, skilled labor shortages, inadequate
infrastructure (such as in the transportation and internet/broadband
sectors), and absolute price levels that are among the highest in
Europe. The Irish government has become more concerned about the
possibility of rising energy costs and the reliability of energy supply
undermining Ireland's attractiveness as an FDI destination.

Four state organizations promote inward investment into Ireland by
foreign companies:

\- The Industrial Development Authority of Ireland (IDA Ireland) has
overall responsibility for promoting and facilitating FDI in all areas
of the country, except the Shannon Free Zone. IDA Ireland is also
responsible for attracting foreign companies to Dublin\'s International
Financial Services Center (IFSC). IDA Ireland maintains offices in New
York, Chicago, San Jose, and Atlanta, as well as in Europe and Asia;

\- Enterprise Ireland promotes joint ventures and strategic alliances
between indigenous and foreign companies. The agency also assists
foreign firms that wish to establish food and drink manufacturing
operations in Ireland;

\- Shannon Free Airport Development Co. (SFADCO), or "Shannon
Development," handles FDI in the Shannon Free Zone (see para 61) and
owns properties in the Shannon region as potential investment greenfield
sites. Under the 2006 Industrial Development Amendments Act,
responsibility for investment by Irish firms in the Shannon region
transferred from Shannon Development to Enterprise Ireland. The IDA
remains responsible for FDI in the Shannon region outside the Shannon
Free Zone;

\- Udaras na Gaeltachta has responsibility for economic development in
those areas of Ireland where Irish (Gaelic) is the predominant language,
and works with IDA Ireland to promote overseas investment in these
regions.

Major Laws/Rules/Taxation Policy

Ireland\'s judicial system is transparent and upholds the sanctity of
contracts as well as laws affecting foreign investment. These laws
include:

\- The Industrial Development Act of 1993, which outlines the functions
of IDA Ireland;

\- The Mergers, Takeovers and Monopolies Control Act of 1978, which sets
out rules governing mergers and takeovers by foreign and domestic
companies;

\- The Competition (Amendment) Act of 1996, which amends and extends the
Competition Act of 1991 and the Mergers and Takeovers (Control) Acts of
1978 and 1987, and sets out the rules governing competitive behavior;

\- The Companies Act of 1963, which contains the basic requirements for
incorporation in Ireland (amended in 1990); and,

\- The 2004 Finance Act, which introduced tax incentives to encourage
firms to set up headquarters in Ireland and to conduct R&D.

In addition, there are numerous laws and regulations pertaining to
employment, social security, environmental protection and taxation, with
many of these keyed to EU Directives.

One of Ireland\'s most attractive features as an FDI destination is the
low corporate tax rate. Since January 1, 2003, the corporate tax rate
for both foreign and domestic firms has been 12.5%. Existing foreign
firms will retain their entitlement to the \"old\" 10% rate until 2010
in the case of manufacturing and certain internationally traded
services. Ireland\'s corporate tax rate is among the lowest in the EU,
and the Irish Government continues to oppose proposals not only to
harmonize taxes at a single EU rate, but also to standardize the
accounting methods used by EU Member States to calculate corporate
taxes.

All firms incorporated in Ireland are treated on an equal basis. With
only a few exceptions, there are no constraints preventing foreign
individuals or entities from ownership or participation in private
firms/corporations. The most significant of these exceptions is that, as
with other EU countries, Irish airlines must be at least 50%-owned by EU
residents in order to have full access to the single European aviation
market. There are also requirements related to the purchase of
agricultural lands (see para 9).

While Ireland does not have a formal privatization program, the
Government in September 2005 privatized the state-owned national
airline, Aer Lingus, through a stock market flotation that valued the
carrier at euro 1.2 billion. The Government retains about a one-quarter
stake in the airline. There are no barriers to participation by foreign
institutions in the sale of Irish state-owned companies, as evident in
the purchase of Aer Lingus shares by U.S. investors. Residents of
Ireland, however, may be given priority in share allocations to retail
investors, as was the case with the state-owned telecommunications
company, Eircom, privatized in 1998.

Citizens of countries other than Ireland and other EU member states can
acquire land for private residential purposes and for industrial
purposes. Under Section 45 of the Land Act, 1965, all non-EU nationals
must obtain the written consent of the Land Commission before acquiring
an interest in agricultural land, though there are many stud farms and
racing facilities in Ireland that are owned by foreign nationals. There
are no restrictions on the acquisition of urban land.

[]{#thirtytwo .anchor}There is no formal screening process for foreign
investment in Ireland, though investors looking to receive Government
grants or assistance through one of the four state agencies responsible
for promoting foreign investment in Ireland are often required to meet
certain employment and investment criteria (see section \"D\"). These
screening mechanisms are transparent and do not impede investment, limit
competition, or protect domestic interests. Potential investors are also
required to examine the environmental impact of the proposed project and
to meet with Irish Environmental Protection Agency (EPA) officials.

## Conversion and Transfer Policies [**Return to top**](#ch6)

[]{#thirtythree .anchor}Ireland uses the Euro as its national currency
and enjoys full current and capital account liberalization. There are no
restrictions or reported significant delays in the conversion or
repatriation of investment capital, earnings, interest, or royalties,
nor are there any plans to change remittance policies. Likewise, there
are no limitations on the import of capital into Ireland. Foreign
exchange is easily obtainable at market rates.

## Expropriation and Compensation [**Return to top**](#ch6)

[]{#thirtyfour .anchor}Private property is normally expropriated only
for public purposes in a non-discriminatory manner and in accordance
with established principles of international law. State condemnations of
private property are carried out in accordance with recognized
principles of due process. Where there are disputes between owners of
private property subject to a government taking, the Irish courts
provide a system of judicial review and appeal.

The only recent case of expropriatory action involved a dispute over the
disposition of the ownership rights to the Lusitania, the ship that was
sunk off Ireland's southern coast in 1915 by a German submarine and
which is owned by a U.S. citizen. In 2001, the U.S. owner brought action
against the Government in the Irish courts after his applications for a
license to dive to the vessel were denied. In 2005, a High Court ruling
in the case noted that "the State simply cannot directly or indirectly
expropriate this property from (the owner), or totally, or even
substantially deny him access to or the use of his property or any part
or parts of his property, even under color of merely regulating that
access or use for the purpose of safeguarding a national asset, without
paying appropriate compensation." In March 2007, the Irish Supreme Court
ruled in favor of the U.S. citizen owner.

## Dispute Settlement [**Return to top**](#ch6)

[]{#performancereqs .anchor}Ireland has no specific domestic laws
governing investment disputes with foreign firms. There is, however, a
legal arbitration framework available to parties that opt to arbitrate a
dispute, including investment disputes, rather than litigate the case.
Currently, there are no disputes involving investments by U.S. firms
either in arbitration or litigation. In recent years, however, U.S.
business representatives have occasionally called into question the
transparency of government tenders, some of which have been won by U.S.
companies. According to some U.S. firms, lengthy budgetary decisions
delay procurements, and the Government sometimes identifies preferred
bidders before making a tender decision. Some U.S. firms also claim that
unsuccessful bidders have had difficulty receiving information on the
rationale behind the tender outcome. Conversely, successful bidders have
experienced delays in finalizing contracts, commencing work on major
projects, obtaining accurate project data, and receiving compensation
for work completed, including through conciliation and arbitration
processes. Successful bidders have also subsequently found that the
original tenders do not accurately describe conditions on the ground.

The Irish legal system is based on common law, legislation and the
Constitution. The Companies Act 1963 (amended 1990) is the most
important body of law dealing with commercial and bankruptcy law and is
applied consistently by the courts. Irish bankruptcy laws give creditors
a strong degree of protection. The Department of Enterprise, Trade and
Employment is the state agency with primary responsibility for drafting
and enforcing company law. The judiciary is independent, and litigants
are entitled to trial by jury in commercial disputes. Ireland is a
member of the International Center for the Settlement of Investment
Disputes, and the Irish Government has been willing to agree to binding
international arbitration of investment disputes between foreign
investors and the state. Ireland is also a party to the New York
Convention of 1958 on the Recognition and Enforcement of Foreign
Arbitral Awards. There is no specific domestic body for handling
investment disputes.

## Performance Requirements and Incentives [**Return to top**](#ch6)

The Irish Government does not maintain any measures that it has notified
the WTO to be inconsistent with Trade-Related Investment Measures
(TRIMs) requirements. Moreover, there have been no allegations that the
Government maintains measures that violate the WTO\'s TRIMs text.

Three Irish organizations, SFADCO, IDA Ireland, and Udaras, have
regulatory authority for administering grant aid to investors for
capital equipment, land, buildings, training, R&D, etc. Foreign and
domestic business enterprises that seek grant aid from these
organizations must submit investment proposals. Typically, these
proposals include information on fixed assets (capital), labor, and
technology/R&D components and establish targets using criteria such as
sales, profitability, exports, and employment. This information is
treated in confidence by the organizations, and each investment proposal
is subject to an economic appraisal prior to approval for support. In
2006, IDA Ireland paid out just over euro 90 million in grants to
foreign firms, as compared to euro 87 million in 2005.

Performance requirements are generally based on employment creation
targets established between the state investment agencies and foreign
investors. Grant aid is paid out only after externally audited
performance targets have been attained. Generally, parent companies must
guarantee repayment of the government grant if the company closes before
an agreed period of time elapses, normally ten years after the grant has
been paid. Grant agreements generally have a term of five years after
the date on which the last grant is paid. There are no requirements that
foreign investors purchase from local sources or allow nationals to own
shares.

New EU Regional Aid Guidelines (RAGs) that apply to Ireland were
announced in 2006 and became effective on January 1, 2007. The RAGs
govern the amount of grant aid that the Irish Government can provide to
companies, depending on their location. The differences in the aid
ceilings noted in the chart below reflect the less developed status of
business/infrastructure in regions outside the greater Dublin area. For
the period 2007-2008, the following ceilings apply:

\- Location

Maximum Grant % Allowed

(EE = eligible expenditure)

\- Border, Midlands, West

30% on first euro 50 million of EE

15% on next euro 50 million of EE

10.2% of balance above euro 100 million of EE

\- South East, Mid West, and South West

10% on first euro 50 million of EE

5% on next euro 50 million of EE

3.4% of balance above euro 100 million of EE

\- East

NIL

While investors are free, subject to planning considerations, to choose
the location of their investment, IDA Ireland has encouraged investment
in regions outside Dublin since the 1990s. This linkage is consistent
with the National Spatial Strategy, which was adopted in 2001 with the
aim of spreading investment more evenly around the country (an approach
that was replicated in the 2007-2013 National Development Plan, to be
launched in early 2007). One of the National Spatial Strategy's stated
goals was to direct 50% of all new jobs related to greenfield investment
to the border, midlands, and western (BMW) counties of Ireland, where
the economy is less developed. In 1999, roughly 25% of jobs related to
greenfield investment were located in the BMW region; by 2006, this
figure had grown to 36%. (The 2007-2013 National Development Plan
continues to favor balanced regional investment, but now focuses more on
innovative and knowledge-based activities than on the number of jobs
generated per region.) In 2006, nearly 60% of new greenfield projects,
and 6 out of every 7 R&D investments, were in areas outside Dublin. To
encourage client firms to locate outside Dublin, IDA Ireland has
developed \"magnets of attraction,\" including: a Cross Border Business
Park linking Letterkenny and Derry, a regional Data Center in Limerick,
and the National Microelectronics Research Center in Cork. The IDA has
supported construction on business parks in Oranmore and Dundalk.

There are no restrictions, de jure or de facto, on participation by
foreign firms in government-financed and/or subsidized R&D programs on a
national basis. In fact, the government strongly encourages foreign
companies to conduct R&D as part of a national strategy to build a more
knowledge-intensive, innovation-based economy. Science Foundation
Ireland (SFI), the state science agency, has been responsible for
administering a euro 365 million R&D fund under the 2000-2006 National
Development Plan. The 2007-2013 National Development Plan envisions a
significant ramp-up in such funding. The fund has targeted leading
researchers in Ireland and overseas to promote within Ireland the
development of biotechnology and information/communications technology,
as well as complementary worker skills. Under the 2004 Finance Act,
moreover, a credit of 20% of the incremental expenditure on revenue
items, royalties, plant, and machinery related to R&D can be offset
against a company\'s corporation tax liability in the year in which it
is incurred. In 2007, IDA Ireland supported 45 R&D investment projects,
involving a total investment of euro 310 million. GlaxoSmithKline
initiated a research and development collaboration on Alzheimer's
disease with the Institute of Neuroscience and Intel established the
Technology Research for Independent Living (TRIL) Centre focused on the
use of technology to support independent living for the elderly. 
Genzyme invested in new process development facilities in Waterford and
2007 also saw new R&D investments for Galway by Nortel and a new R&D
centre proposed by Fidelity Investments.

In addition to the new RAGs, a new EU framework for research,
development, and innovation (RD&I) for the 2007-2013 period has also
come into force. The framework is geared toward achieving the objectives
of the Lisbon Agenda, and grant support is available throughout all
regions of Ireland. The table below shows grant rates for each category
of eligible RD&I.

[]{#thirtynine .anchor}Type of Research Grant %

-"Fundamental" (activity designed 100

to broaden scientific and

technical knowledge not linked

to industrial or commercial objectives)

-"Industrial" (planned research 50

of critical investigation aimed

at the acquisition of new knowledge,

the objective being that such knowledge

may be useful in developing new products,

processes or services or in bringing

about a significant improvement in existing

products, processes or services)

-"Experimental" (shaping of the results 25

of industrial research into a plan of

design for new, altered or improved

products, processes or services, whether

they are intended to be sold or used,

including the creation of an initial

prototype which could not be used

commercially)

Visa, residence, and work permit procedures for foreign investors are
non-discriminatory and, for U.S. investors, generally liberal. There are
no restrictions on the numbers and duration of employment of foreign
managers brought in to supervise foreign investment projects, though
their work permits must be renewed yearly. There are no discriminatory
export policies or import policies affecting foreign investors.

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

[]{#forty .anchor}The most common form of business organization in
Ireland is the incorporated company, limited by shares, registered under
the Companies Act, 1963, or previous legislation. Irish law does not
prevent foreign corporations from carrying on business in Ireland. Any
company incorporated abroad that establishes a branch must, however,
file certain papers with the Registrar of Companies. A foreign
corporation with a branch in Ireland will have the same standing in
Irish law for purposes of contracts, etc., as a company incorporated in
Ireland. Private businesses are not at a competitive disadvantage to
public enterprises with respect to access to markets, credit, and other
business operations.

Before 1999, Irish company law differed from international norms by
allowing, for tax purposes, the registration of companies in Ireland
that were not actually resident in Ireland (so-called Irish Registered
Non-Resident companies (IRNRs)). In response to concern that a large
number of the estimated 40,000 IRNRs were engaged in fraud, tax evasion,
money laundering, and other illegal activities, the 1999 Finance Act
equated registration in Ireland with tax residence and liability for all
companies except in limited circumstances. Exceptions include cases
where the Irish company, or a related parent company, is carrying on
trade in Ireland, and the company is ultimately controlled either by
residents of an EU member state or by residents of a country with which
Ireland has a tax treaty (including the United States). Nonetheless, all
Irish-based companies, including U.S. firms, claiming non-residence in
Ireland because of tax treaty provisions must identify the beneficial
owners of the company.

Similarly, the \"Companies (Amendment) (No. 2) Act 1999\" requires that
every application for company registration in Ireland show the manner in
which the proposed company will carry out activities in Ireland. Section
43 of the legislation stipulates that a company must either have a
director resident in the State or provide a bond of euro 25,400 in the
event that the company commits an offense under the Companies Act or tax
legislation. Section 44 states that these requirements may be waived
when the Company obtains a certificate from the Companies Office stating
that the company has a real and continuous link with one or more
economic activities in Ireland. Like the 1999 Finance Act, the Companies
Act is designed to prevent the use of IRNRs for exclusively foreign
activities without any connection to Ireland.

## Protection of Property Rights [**Return to top**](#ch6)

[]{#fortyone .anchor}Protection of Property Rights

\(I\) Real Property

Secured interests in property, both chattel and real estate, are
recognized and enforced. The Department of Justice administers a
reliable system of recording such security interests through the Land
Registry and Registry of Deeds. An efficient, non-discriminatory legal
system is accessible to foreign investors to protect and facilitate
acquisition and disposition of all property rights.

\(II\) Intellectual Property Rights

Ireland is a member of the World Intellectual Property Organization and
a party to the International Convention for the Protection of
Intellectual Property. In July 2000, Irish President Mary McAleese
signed legislation bringing Irish intellectual property rights (IPR) law
into compliance with Ireland\'s obligations under the WTO Trade-Related
Intellectual Property Treaty (TRIPs). The legislation came into force on
January 1, 2001, and gives Ireland one of the most comprehensive legal
frameworks for IPR protection in Europe.

This legislation addressed several TRIPs inconsistencies in previous
Irish IPR law that had concerned foreign investors, including the
absence of a rental right for sound recordings, the lack of an
\"anti-bootlegging\" provision, and low criminal penalties that failed
to deter piracy. The legislation provides for stronger penalties on both
the civil and criminal sides, but does not include minimum mandatory
sentencing for IPR violations.

As part of this comprehensive copyright legislation, changes were also
made to revise the non-TRIPs conforming sections of Irish patent law.
Specifically, the IPR legislation addresses two concerns of many foreign
investors in the previous legislation:

\- the compulsory licensing provisions of the previous 1992 Patent Law
were inconsistent with the \"working\" requirement prohibition of TRIPs
Articles 27.1 and the general compulsory licensing provisions of Article
31; and,

\- applications processed after December 20, 1991, did not conform to
the non-discrimination requirement of TRIPs Article 27.1.

DVD and CD piracy, however, continues to be a problem. Industry
representatives claim that the counterfeit DVD market is 1.5 times the
size of the legitimate market and that DVD pirates earn roughly euro 60
million annually, at a cost of euro 115 million to the legitimate DVD
industry. Industry groups also believe that light penalties given to
counterfeiters in DVD piracy court cases hamper police enforcement
efforts. In mid-2006, the Government responded to piracy problems by
forming an inter-agency task force, which has begun a consultation
process with industry on potential countermeasures. In addition to DVD
and CD counterfeiting, industry sources estimate that up to 37% of PC
software used in Ireland is pirated. The Business Software Alliance in
Ireland estimates that reducing this rate by ten percentage points would
help the \$2.6 billion domestic IT industry to grow to \$4 billion by
2009.

## Transparency of Regulatory System [**Return to top**](#ch6)

[]{#fortytwo .anchor}The Irish Government generally employs a
transparent and effective policy framework that fosters competition
between private businesses in a non-discriminatory fashion. While
ongoing Irish judicial \"Tribunals\" are investigating possible links
between indigenous Irish companies\' political donations in the late
1980s and favorable government decisions, U.S. businesses can, in
general, expect to receive national treatment in their dealings with the
Government. There is no report of any U.S. firm or investor having being
required or forced to make payments during that period.

In recent years, independent bodies have taken over regulatory powers
from Cabinet Departments in key economic sectors. The Commission for
Communications Regulation and the Commission for Energy Regulation are
responsible for regulating the communications and energy sectors,
respectively. Both are independent bodies with institutional links to
the Department of Communications, the Marine and Natural Resources. The
Commission for Aviation Regulation is an independent body that regulates
the aviation sector. It is institutionally linked to the Department of
Transport, which has direct regulatory powers over other segments of the
transportation sector.

The Competition (Amendment) Act 1996 amends and extends the Competition
Act 1991, strengthens the enforcement power of the Competition
Authority, introduces criminal liability, increases corporate liability,
and outlines available defenses. Most tax, labor, environment, health
and safety, and other laws are compatible with European Union
regulations, and they do not adversely affect investment. Proposed laws
and regulations are published in draft form for public comment,
including by foreign firms and their representative associations.
Bureaucratic procedures are transparent and reasonably efficient, in
line with a general pro-business climate espoused by the Government.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

Capital markets and portfolio investments operate freely, and there is
no discrimination between Irish and foreign firms. In some instances,
development authorities and banks are able to facilitate loan packages
to foreign firms with favorable credit terms. Credit is allocated on
market terms, although the Irish Competition Authority found in 2004
that the banking sector\'s lack of competition limited the amount of
credit available to small and medium-sized firms. Irish legal,
regulatory, and accounting systems are transparent and consistent with
international norms and provide a secure environment for portfolio
investment. The capital gains tax rate is 20%.

The Irish banking system is sound. The estimated total assets of all
licensed credit institutions at the end of November 2007 was
approximately euro 1.3 trillion, with the Bank of Ireland and Allied
Irish Banks holding a combined 25% of total assets. U.S. banks operating
in Ireland include Citigroup and Chase Manhattan.

As of November 2007, total market capitalization in the Irish Stock
Exchange (ISE) was euro 96.6 billion. In terms of market weight, the
stocks of four companies are predominant: Allied Irish Bank, Bank of
Ireland, CRH (a construction industry supplier), and Elan (a
pharmaceuticals firm). In September 2006, shares in the national
airline, Aer Lingus, began trading on the Irish stock exchange in
conjunction with the carrier's privatization. Until 2007, the Irish
stock market had seen a steady recovery since plummeting in 2002
following the global economic slowdown and management problems at
several major Irish companies. From 2002 to 2006, ISE delivered returns
of between 19 and 28% each year. However, driven in part by concerns
over possible spillover from the sub-prime crisis in the United States,
the market capitalization fell by almost nine percent through the first
11 months of 2007. In 2005, ISEQ opened up a secondary market, the Irish
Enterprise Exchange (IEX), which caters to smaller firms with a minimum
market cap of euro 5 million.

In May 2003, the Central Bank of Ireland was reorganized into the
Central Bank and Financial Services Authority of Ireland (CBFSAI), in
accord with the Central Bank and Financial Services Authority of Ireland
Act 2003. Under the legislation, the Governor of the CBFSAI has
responsibility for the overall stability of the Irish financial system.
The legislation also established the Irish Financial Services Regulatory
Authority (IFSRA), which is an autonomous but constituent part of CBFSAI
that regulates financial services institutions in Ireland and, since
2006, the Irish Stock Exchange. IFSRA took over this responsibility from
a mix of government bodies, including: the Central Bank, the Department
of Trade, Enterprise, and Employment (DETE), the Office of Director of
Consumer Affairs, and Registrar of Friendly Societies. The legislation
also enhanced the regulatory powers given to IFSRA, particularly in
consumer protection.

The Central Bank is a member of the European System of Central Banks
(ESCB), whose primary objective is to maintain price stability in the
euro area. Ireland no longer operates an independent monetary policy.
Rather, ESCB formulates and implements monetary policy for the
euro-zone, and the Central Bank implements that policy at the national
level. The Governor of the Central Bank is one of 18 members of the
Governing Council for the ECB and has an equal say in the formulation of
monetary and interest rate policy. The other main tasks of the Central
Bank include: issuing euro currency in Ireland; acting as manager of the
official external reserves of gold and foreign currency; conducting
research and analysis on economic and financial matters; overseeing the
domestic payment and settlement systems; and, managing investment assets
on behalf of the State.

[]{#fortythree .anchor}The Irish Takeover Panel Act of 1997 governs
company takeovers. Under the Act, the "Takeover Panel" issues
guidelines, or \"Takeover Rules,\" which aim to regulate commercial
behaviour in the context of mergers and takeovers. According to minority
squeeze-out provisions in the legislation, a bidder who holds 80% of the
shares of the target company can compel the remaining minority
shareholders to sell their shares. There are no reports that the
legislation has been used to prevent foreign takeovers specifically,
and, in fact, there have been several high-profile foreign takeovers of
Irish companies in the banking and telecommunications sectors in recent
years. In 2006, for example, the Australian investment group, Babcock &
Brown, acquired the former national telephone company, Eircom. The EU
Directive on Takeovers provides a framework of common principles for
cross-border takeover bids, creates a level playing field for
shareholders, and establishes disclosure obligations throughout the EU.
The Directive was implemented through Irish legislation in May 2006,
though many of its principles had already been enacted in the Irish
Takeover Panel Act 1997.

## Political Violence [**Return to top**](#ch6)

\(I\) Impact of Northern Ireland Instability

Ireland has not experienced significant spillover of violence or
instability from Northern Ireland, especially since the late 1970s and
after the cease-fires of 1994. The growth of business investment and
confidence in Northern Ireland following the cessation of widespread
violence has benefited the Republic of Ireland, with cross-border trade
reaching roughly euro 2.5 billion in 2005. In 2006, the Irish and
British Governments launched a report on potential areas for
cross-border economic cooperation, such as R&D collaboration, energy and
transportation infrastructure linkages, and joint trade missions. The
2007-2013 National Development Plan earmarks funding to develop these
linkages. No violence related to the situation in Northern Ireland has
been specifically directed at U.S. citizens or firms located in the
South.

The 1998 ratification of the Good Friday Agreement by large majorities
in both Ireland and Northern Ireland further diminished the potential
for violence. Although groups in Northern Ireland opposed to the peace
process have continued to commit infrequent acts of criminality, there
have been no serious incidents in the Republic of Ireland. In May 2007,
the Northern Ireland Assembly was restored and local government resumed;
a key landmark in the successful peace process in Northern Ireland that
commenced with the Good Friday Agreement in 1998.

\(II\) Other Acts of Political Violence

[]{#fortyfour .anchor}There have been no recent incidents involving
politically motivated damage to foreign investment projects and/or
installations in the Republic of Ireland. In 2003, several Irish
citizens opposed to the Iraq War damaged U.S. military assets at Shannon
Airport. In 2004, one of these citizens was convicted in an Irish court
and given a suspended sentence. In late 2005, a group of opposition and
independent Irish parliamentarians said publicly that they would not
oppose further attacks on U.S. military aircraft transiting Ireland. In
2006, five other Irish citizens involved in the damage of U.S. military
assets in 2003 were acquitted by a jury decision in an Irish court. The
jury accepted arguments by the defendants, the so-called "Shannon Five,"
that they had acted to prevent loss of life and property damage in Iraq.

## Corruption [**Return to top**](#ch6)

[]{#fortyfive .anchor}Corruption is not a serious problem for foreign
investors in Ireland. The principal Irish legislation relating to
anti-bribery and corruption includes the Public Bodies Corrupt Practices
Act 1889, the Prevention of Corruption Act 1906, the Prevention of
Corruption Act 1916, and the Prevention of Corruption (Amendment) Act
2001. This body of law makes it illegal for Irish public servants to
accept bribes. The Ethics in Public Office Act 1995 provides for the
written annual disclosure of interests of people holding public office
or employment.

Ireland signed the UN Convention on Corruption in December 2003, and
ratification is pending a review of the legal measures required for
implementation. In January 2000, the GOI introduced to Parliament the
\"Prevention of Corruption (Amendment) Act, 2001,\" to ratify and
implement the OECD Convention on Bribery. The legislation, which enabled
Ireland to ratify a number of conventions dealing with corruption drawn
up by the European Union, the Council of Europe, and the OECD, came
fully into force as law in November 2002. Ireland formally ratified the
OECD Convention in September 2003. Ireland is also a member of the OECD
Working Group on Bribery and the Group of States Against Corruption
(GRECO). Under the Prevention of Corruption Act, the bribery of foreign
officials is a criminal offense. Bribery of foreign officials may also
invalidate a contract that a party is seeking to enforce in Ireland.

A number of ongoing judicial \"Tribunals\" are seeking to establish
whether political donations by certain Irish companies in the late 1980s
and early 1990s can be linked to favorable government decisions, mostly
at the local level, in zoning and tax matters. There is also media and
public concern that business interests may have compromised Irish
politics in the late 1980s and early 1990s. Despite these reports of
payments to political parties and figures in the 1980s and early 1990s,
there remains no indication that foreign businesses or investors have
had to make such payments or been approached to make such payments to
conduct business during the period in question or in years since.

In 2006, the Irish media disclosed information leaked from the Mahon
Tribunal that Prime Minister (Taoiseach) Bertie Ahern had, as Finance
Minister in the 1990s, accepted the equivalent of roughly euro 50,000 in
loans from associates. Following the disclosure, the Prime Minister made
public statements about the incident, noting that his actions had not
been illegal and that political favors had been neither sought nor
granted in connection with the loans. The Mahon Tribunal continued to
meet on occasion in 2007 without reaching any determination. Its
deliberations will continue in 2008. Also in 2006, the Moriarty Tribunal
found that former Prime Minister Charles Haughey had accepted the
equivalent of roughly euro 12 million in payments between 1979 and 1996
in return for political favors, such as tax reductions for associates
and the procurement of a passport.

The Irish police investigate allegations of corruption. If sufficient
evidence of criminal activity is found, the Director of Public
Prosecutions prepares a file for prosecution. A small number of public
officials have been convicted of corruption and/or bribery in the past,
although it is not a common occurrence.

## Bilateral Investment Agreements [**Return to top**](#ch6)

[]{#fortysix .anchor}Ireland\'s only bilateral investment protection
agreement is with the Czech Republic. In addition, Ireland has bilateral
tax treaties with the following countries: Australia, Austria, Belgium,
Bulgaria, Canada, Chile, China, Croatia, Cyprus, the Czech Republic,
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,
India, Italy, Israel, Japan, Korea (Rep. of), Latvia, Lithuania,
Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway,
Pakistan, Poland, Portugal, Romania, Russia, Slovak Republic, Slovenia,
South Africa, Spain, Sweden, Switzerland, UK, the United States, and
Zambia. In 2007, new treaties with Georgia, Macedonia, Moldova and
Vietnam and a Protocol to the existing treaty with South Africa were
agreed. Parliamentary procedures to bring into force a new treaty with
Chile and a protocol amending the existing treaty with Portugal were
completed by Ireland in December 2005. Existing treaties with Cyprus,
France, Italy, and Korea are in the process of re-negotiation. These
agreements serve to promote trade and investment between Ireland and the
partner countries that would otherwise be discouraged by the possibility
of double taxation. In the absence of a bilateral tax treaty, provisions
within the Irish Taxes Act allow unilateral credit relief against Irish
tax for tax paid in the other country in respect of certain types of
income, e.g., dividends and interest.

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

[]{#fortyseven .anchor}Since 1986 the U.S. Overseas Private Investment
Corporation (OPIC) has been authorized to operate in Ireland as part of
the U.S. effort to support the process of peace and reconciliation in
Northern Ireland. There is some potential in Ireland for OPIC\'s credit
guarantee programs, such as in regard to aircraft purchases. No other
countries have an investment insurance program in Ireland. Ireland is a
member of the Multilateral Investment Guarantee Agency (MIGA).

The estimated annual U.S. dollar value of local currency likely to be
used by the U.S. Embassy in Ireland during 2007 is approximately \$11
million. The Embassy purchases local currency through centralized bulk
purchasing arrangements at a competitive market rate. Prospects for
euro-zone economic growth and for the U.S. trade and budget deficit
positions will likely determine USD and euro currency movements through
2007.

## Labor [**Return to top**](#ch6)

In 2007, employment levels in Ireland reached historical highs, the
result of continued strong economic growth. As of May 2007, the number
of persons employed was roughly 2.1 million, an increase of about 75,000
from a year earlier. Since 1994, employment growth has averaged over
4.0%, with lower rates recorded in 2002 and 2003 following the post 9/11
global economic slowdown. Employment in production industries, including
manufacturing, grew by about 3,000 in the period from May 2006 to May
2007, reversing a trend over recent years in which the number of
manufacturing jobs had decreased.

In contrast to 15.6% unemployment in 1993, Ireland registered 4.6%
unemployment in November 2007. This was among the lowest unemployment
rates among EU Member States and roughly half the EU average. The number
of unemployed people in May 2007 was about 98,000. Local economists
believe that the Irish economy is as close to full employment as
possible, with employers reporting difficulties in recruiting workers.
Whereas Ireland\'s primary policy goal was once job creation, the focus
of government strategy has shifted to upgrading skills and increasing
the number of workers in technology-intensive, high-value sectors.

Irish labor force regulation is less restrictive compared with most
continental EU countries. The Irish workforce is characterized by a high
degree of flexibility, mobility, and education. There is a relative
gender balance in the workforce, with 1.162 million males and 850,700
females employed as of end 2007. This gender balance reflects a change
in social mores that has facilitated a surge in female employment since
the mid-1980s.

With the tightening of the labor market, wages remain on an upward
growth curve. As of September 2006, average industrial earnings per
worker were euro 601 per week, a 3.5% increase over September 2005.
Between 1998 and 2003, compensation per employee increased by 37.1%,
compared to an increase of 8.7% in Germany over the same period. The
minimum wage was euro 5.20 when it was first introduced in 2000 and rose
to euro 8.65 in July 2007. Employees earning the minimum wage will not
have to pay personal income tax in 2008.

Unprecedented inward migration levels, particularly from Eastern Europe,
have added a new dynamic to the Irish labor market. Of the 83,000 new
workers added to the labor force between the third quarters of 2005 and
2006, roughly 40,500 were non-Irish nationals, working mostly in the
construction and lower-end services sectors. According to Ireland's
Central Statistical Office (CSO), the number of non-nationals residing
in Ireland has doubled since 2002 to roughly 400,000, or roughly 9% of
the total population. Irish labor unions and Labor Party politicians
have expressed concern over the possibility of displacement of Irish
workers by non-nationals. Economists observe, however, that yearly job
creation in Ireland has been sufficient to accommodate both Irish and
non-Irish workers and that there is no evidence of downward pressure on
wages. However, the possibility of a slowdown in the global economy will
undoubtedly lead to slower job creation in Ireland. Economists also hold
that that Ireland will require 50,000 immigrants a year over the short
term to sustain high rates of economic growth.

The Irish system of industrial relations is a voluntary one. Pay levels
and conditions of employment are generally agreed through collective
bargaining between employers and employees. Since 1987, collective
bargaining has taken place under the framework of a series of national
economic programs, negotiated by representatives of employers, trade
unions, farmers, and the government. Over the years, employers have
generally implemented the benchmarks for pay and employee benefits
established by the national economic programs, even thought the
benchmarks do not have legal force. This consensual \"Social
Partnership\" approach has been a major factor in improving the
industrial relations climate since the mid-1980s. In 2006, the number of
working days lost as a result of industrial disputes was 7,352, as
compared to 130,000 in 1995.

In September 2006, Ireland's major unions and the employers'
representative body agreed to the latest national economic program,
\"Toward 2016,\" under the Social Partnership framework. The agreement
followed a 9-month negotiation that centered on the increasingly
significant role of foreign workers in the Irish economy. The national
economic program sets out consensus positions on wide-ranging social
policies over a 10-year period and includes a 10-percent pay increase
for workers over the first 3 years. The package encompasses measures to
protect employment standards, such as the establishment of a new agency
(the Office of the Director of Employment Rights Compliance), a tripling
of the Labor Inspectorate, and tougher penalties for employers who
exploit foreign workers. The deal also calls on the Government to engage
with unions and employers in drawing up a comprehensive policy on
pensions.

[]{#fortyeight .anchor}Employers typically resist trade union demands
for mandatory trade union recognition in the workplace. While the Irish
constitution guarantees the right of citizens to form associations and
unions, Irish law also affirms the right of employers not to recognize
unions and to deal with employees on an individual basis. Currently,
roughly 33% of workers in the private sector are unionized, compared to
95% in the public sector. Among foreign-owned firms, roughly 80% of
workers do not belong to unions, although pay and benefits are usually
more attractive compared with domestic firms.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

[]{#fdi .anchor}The Shannon duty-free Processing Zone (SDFPZ) was
established by legislation in 1957. Under the legislation, eligible
companies operating in the Shannon Free Zone are entitled to the
following benefits: goods imported from non-EU countries for storage,
handling or processing are duty-free; no duty on goods exported from
Shannon to non-EU countries; no time limit on disposal of goods held
duty-free; minimum customs documentation and formalities; no Value Added
Tax (VAT) on imported goods, including capital equipment; choice of
having import duty on non-EU product calculated on its landing value or
selling-out price. Qualifying criteria for eligible companies include
employment creation and export-orientation. Foreign-owned firms in the
Shannon Free Zone have the same investment opportunities as indigenous
Irish companies. As of 2007, there were over 110 foreign manufacturing
and service companies established in the Shannon Free Zone, employing
roughly 7,500 workers. Also in 2007, trade from the Shannon Free Zone
amounted to euro 2.5 billion. U.S. companies, which make up 57% of the
firms operating out of Shannon, include GE Capital, Bristol Myers
Squibb, UPS, FedEx, Pfizer, Intel, and Symantec. The Shannon Free Zone
is technically an asset of Shannon Development.

Duty-free exemptions are available also to companies operating in
Ireland\'s major deep-water port at Ringaskiddy in County Cork, although
these have been used infrequently in recent years.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

According to Ireland\'s Central Statistical Office (CSO), the stock of
FDI in Ireland for end-year 2005 stood at euro 141 billion, or roughly
88% of nominal 2005 GDP and a euro 13 billion drop from 2004. Ireland
had negative FDI flows of euro 25 billion in 2005, which the CSO
attributed primarily to loans by Ireland-based firms to affiliates
abroad. A portion of these loans likely went to overseas affiliates that
sought to repatriate earnings to the United States under a one-time
lower tax rate afforded by the 2005 American Jobs Creation Act. (Note:
The most recent FDI available from the CSO is 2005. In the past, CSO and
U.S. Commerce Department figures for U.S. FDI in Ireland have differed,
due to different calculation methods.)

In 2006, the roughly 1,000 companies supported by IDA Ireland spent
almost euro 16 billion in the Irish economy from their annual sales of
euro 95 billion (exports of euro 91 billion). During 2007, IDA Ireland
negotiated 114 new business projects with new and existing clients,
which involved a total investment commitment of euro 2.3 billion over
the coming years. Also in 2007, IDA-assisted firms had a net loss of 147
jobs, and over 60% of new jobs in IDA-supported projects had wage and
salary levels in excess of euro 40,000 annually.

IDA Ireland announced 78 new and expansion projects with U.S. companies
during 2007. Roughly two-thirds of FDI projects that came to Ireland in
2006 were of U.S. origin. Forfas, a quasi-state economic think tank
under the purview of Ireland's Department of Enterprise, Trade, and
Employment, estimated that U.S. companies\' average yearly return on
investment (ROI) in Ireland between 2000 and 2004 was 16%.

Table 7.1: Major U.S. Investments in Ireland

Company Location

Apple Computers Cork

AIG Europe Dublin

Amazon Dublin

Bausch & Lomb Waterford

Berlitz Dublin

BISYS Waterford

Boston Scientific Galway, Cork, Wexford

Bristol Myers Squib Limerick, Dublin

HP-Compaq Computers Galway, Dublin

Citigroup Dublin

Dell Computers Limerick, Dublin

Eastman Kodak Limerick, Cork

eBay Dublin

Fidelity Dublin,Galway

Gartner Group Limerick

Google Dublin

Hertz Dublin

Hewlett-Packard Leixlip, Kildare

IBM Ireland Dublin

Intel Ireland Dublin, Leixlip

Johnson & Johnson Dublin

Millipore Ireland BV Cork

Motorola Cork

Netscape Communications Dublin

Novartis Cork

Pfizer Cork

PFPC Navan, Wexford

Prudential Insurance of America Letterkenny

3Com Dublin

United Airlines Dublin

US Robotics Dublin

Woodchester Investments Dublin

Wyeth Biopharma Dublin

Yahoo Dublin

## Web Resources [**Return to top**](#ch6)

[http://www.ida.ie](http://www.ida.ie/)

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 7: Trade and Project Financing

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#fiftyseven)

-   [Web Resources](#web-resources-return-to-top-2)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

Standard methods of payment are available for export sales to Ireland
through a well-developed banking sector. Competition, to a large degree,
has required the use of liberal financing, as opposed to requiring
payment on a letter of credit or cash basis. Letters of credit can be
used initially for new accounts with more liberal terms granted if
justified by volume and customer reliability. Knowledge of industry
practice and the customer is generally the prime consideration in
deciding whether to use sight drafts, time drafts, or open accounts.
Usual terms of sale are payment within 30 to 90 days after delivery,
varying with the commodity and the credit standing of the purchaser.
Major Irish banks can facilitate EximBank programs in Ireland.

## How Does the Banking System Operate [**Return to top**](#ch7)

The Irish financial system has experienced a series of changes over the
past decade. New legislation has been introduced to allow more
competition between different types of financial services organizations.
Consequently, a very sophisticated banking environment exists which
offers many sources of financing to organizations doing business in
Ireland. The banking system operates on a basis similar to that in the
U.K., mainly due to the physical proximity of the two countries and the
high volume of mutual trade. In broad terms, the sources of financing
can be classified into two groups: a) financing and financial services
available directly from banks, building societies, and other financial
institutions, and b) financing available through financial markets, such
as the stock exchange.

The role of the Central Bank of Ireland traditionally has been similar
to that of central banks in other developed countries. Established under
the Central Bank Act of 1942, the Central Bank manages the country's
banking/monetary system and controlling credit. In addition, it acts as
adviser and banker to the Irish government. Its primary objective since
1998, in discharging its function as part of the European System of
Central Banks, has been to maintain price stability across the Euro
zone. In April 2002, the Central Bank became a financial regulator,
through two autonomous subsidiaries. The Irish Monetary Authority was
set up to handle monetary policy and serve as the Irish arm of the
European Central Bank (ECB). The Irish Financial Services Regulatory
Authority was established to supervise Irish financial institutions and
handle regulation of the insurance industry, as well as consumer
protection issues within the financial sector.

In Ireland, commercial banks are classified as "licensed banks" and
"state sponsored banks." These banks provide all general banking
services, including comprehensive current account services. Other
licensed banks, a number of which are subsidiaries and affiliates of the
main clearing banks, tend to concentrate on specific types of banking
business. Examples include wholesale and corporate banking, installment
credit and leasing, capital market activities and, particularly for
banks in the International Financial Services Center (IFSC),
international and investment banking. ACC Bank is the sole state-owned
financial institution providing a broad range of retail and business
banking services, with a particular emphasis on the agricultural sector.
Building societies are mutual organizations with ownership vested in
shareholders that have deposits in investment and savings share
accounts. Along with the clearing banks, they are the principal
institutions providing finance for house purchase.

## Foreign-Exchange Controls [**Return to top**](#ch7)

Ireland is a member of the European Union (EU) and the European Monetary
System (EMS). Therefore, commercial transactions and payment terms
reflect common Western practices. Primary import payment considerations
are determined by the financial reputation of an individual customer
combined with competitive considerations. There are no commercial
foreign-exchange limitations or unusual regulations. Additionally, there
are no restrictions on inward investment, foreign trading, or the
repatriation of capital and profits of American firms based in Ireland.

The Irish importer can easily arrange import financing through his/her
local branch bank manager. Experienced importers respect overseas
vendor's payment terms. The domestic market operates quite differently,
with trade customers taking cash discounts and paying up to 90 or even
180 days after delivery. Occasionally, new importers attempt to apply
domestic practices to the international market place.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

For a list of banks and other business service providers see
[www.buyusa.gov/ireland](http://www.buyusa.gov/ireland).

## Project Financing [**Return to top**](#ch7)

There are no restrictions on investments by foreign companies in new
projects and existing entities in Ireland, nor are restrictions imposed
on the repatriation of capital and profits by foreign firms.
International firms investing in Ireland can take advantage of
investment incentives provided by the Irish government through IDA
Ireland, the state organization responsible for attracting international
investment into Ireland. These incentives include a 12.5% corporate tax
rate for qualifying industries, capital investment, R & D and training
grants, rent subsidy for industries in certain regions, and assistance
with site location. The range of incentives is available to
manufacturing companies and providers of international tradable services
such as computer software, telemarketing, and financial services.

The Government of Ireland recently established the National Development
Finance Agency (NFDA) to help provide cost effective financing for
public sector investment projects, including public and private
partnerships with multinational firms. State authorities are obliged to
seek advice on financing public projects from the NFDA, which will
assess financial and structuring, and will in certain circumstances be
able to raise funding for public projects. The NFDA has the power to set
up special purpose companies for the purpose of financing projects.

## Web Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: <http://www.tda.gov/>

SBA\'s Office of International Trade: <http://www.sba.gov/oit/>

USDA Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal Belongings](#sixtyone)

-   [Other Useful Information](#other-useful-information-return-to-top)

## Business Customs [**Return to top**](#ch8)

Given the close economic, political, and cultural relations that exist
between Ireland and the United States, business opportunities for U.S.
companies are broad based and easily accomplished. In general, Irish
business executives are less formal than their European counterparts and
the use of first names at an early stage of a business relationship is
acceptable. Friendship and mutual trust are highly valued and once an
American has earned this trust, a productive working relationship can
usually be expected. However, principles of customary business courtesy,
especially replying promptly to sales orders and requests for price
quotations, are a prerequisite for success and should be practiced.

Conservative business attire is recommended for business meetings and
functions. Suits, rather than blazers and slacks, are the norm. Business
appointments are also required and visitors are expected to be punctual.
Because of the moderating influence of the Gulf Stream, medium-weight
clothing may be worn most of the year. A travel umbrella, rainwear, hat,
and sturdy walking shoes should also be included in the wardrobe since
there is occasional light rain (\"liquid sunshine\") and many \"soft\"
days.

##### 

## Travel Advisory [**Return to top**](#ch8)

For the latest travel advisories regarding Ireland, Europe or the world
see:

<http://www.travel.state.gov/travel/cis_pa_tw/cis/cis_1145.html>

## Visa Requirements [**Return to top**](#ch8)

-   Every U.S. traveler must have a valid passport.

-   Entry into Ireland is at the discretion of the Irish Immigration
    Authorities. Visitors to Ireland may be given permission to remain
    in the state for any period of up to three months. A decision as to
    how long any individual may remain in Ireland is made by the Irish
    Immigration Authorities at the point of entry. Those wishing to
    remain in Ireland for longer than three months should contact the
    Garda National Immigration Bureau, tel: 353-1-666-9100 for guidance.

-   An American citizen entering Ireland for permanent residence must
    register with the Garda National Immigration Bureau as soon as
    possible after entering the country.

-   U.S. citizens planning to work in the country must first obtain a
    work permit from the Department of Enterprise, Trade and Employment.
    The permit is presented to immigration upon arrival. Such permits
    must be obtained by the employer and are usually granted only for
    specialized work. Management and skilled workers have no difficulty
    in obtaining the required work permits, which are renewable every 12
    months.

-   U.S. companies that require travel of Irish businesspersons to the
    U.S. should allow sufficient time for visa issuance if required.
    Irish Visa applicants should go to the following link:
    [http://dublin.usembassy.gov](http://dublin.usembassy.gov/).

See also:

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov: <http://www.unitedstatesvisas.gov/>

Irish Employment Law: [http://www.entemp.ie](http://www.entemp.ie/)

For information on the requirements which must be satisfied in order to
live in Ireland:

Irish Department of Justice, Equality and Law Reform:
[http://www.justice.ie](http://www.justice.ie/)

## Telecommunications [**Return to top**](#ch8)

Through the ease of telecommunications, e-mails and international calls
are frequently the best method of arranging appointments and maintaining
solid commercial relations. The time zone for Ireland is Greenwich Mean
Time (GMT) or 5 hours ahead of the U.S. Eastern Standard Time (EST + 5
hours).

-   Cell phones are widely used in Ireland as there are almost 4.4
    million cell phone subscribers (equating to over 100% market
    coverage). Tri-band cell phones can be used to place calls to the
    United States and other countries from Ireland.

-   Ireland has a relatively sophisticated digital telecommunications
    system, which includes a direct dialing telephone service connecting
    every part of Ireland with over 90% of the rest of the world.

-   A wide range of business services including point-to-multipoint data
    transmission, computer-to-computer file transfer networking, text
    messaging, fax, telex, and video communications are available.

-   U.S. calling cards such as AT&T and Sprint may be used locally for
    making international calls. Phone cards for local and international
    calling are widely available in local shops and vending machines.

## Transportation [**Return to top**](#ch8)

Ireland has four international airports (Dublin, Shannon, Cork, and
Knock). American Airlines, Delta Air Lines, US Airways, and Continental
Airlines operate scheduled air services between Ireland and the United
States. However, travelers often utilize United Airlines and other code
shares and gateways in the U.K., as Ireland and the U.K. have numerous
daily air connections.

Rental automobiles are available at numerous locations across Ireland,
but rates are usually more expensive than in the U.S. and other parts of
Europe. Better rental rates may be secured by booking reservations in
the U.S. through one of the U.S. car rental agencies with fleets in
Ireland. An international or state driving license is acceptable.

A few notes of caution. It should be noted that rental cars offer a
target for petty thieves in Ireland, and are often broken into, and
visitors should take care not to leave belongings visible in cars parked
at common tourist destinations. Cars in Ireland are "right-hand drive,"
traffic moves on and from the left-hand side of the road (like in the
United Kingdom), and there are traffic circles ("roundabouts") in most
towns and cities. Also, in relative terms, J-walking is a very common
practice for pedestrians in Ireland. Pedestrians, including children,
often cross against lights or in the middle of roads, and drivers should
use caution. Pubs in Ireland, particularly in Dublin, stay open late and
pedestrian traffic can be heavy throughout the night. It may take the
visitor some time to adjust to these differences. Most auto accidents
for visitors to Ireland happen shortly after departure from the rental
car station.

While Ireland has more paved road on a per capita basis than any other
country in the EU, it lacks an efficient network of highways. Travel
times take longer than expected at first glance. Ninety six percent of
all inland passenger transport and over 90% of inland freight transport
are conveyed by road. The balance is carried by rail. A 3,000-kilometer
rail system provides passenger and freight services to most cities and
main towns, including those in Northern Ireland.

Ireland has a diverse range of accommodations from world-class hotels to
the more individualized and economical bed and breakfast (B&B)
guesthouses. In view of the large number of visitors to Ireland,
business travelers are advised to make their hotel reservations well in
advance, especially during the summer months, in order to assure the
needed accommodations.

Ireland has a wide and excellent range of restaurants. All the major
international forms of cuisine are available in addition to local Irish
recipes and there is a wide price range to cater for all wallets. The
food service sector is well regulated and standards of hygiene in food
preparation are high.

## Language [**Return to top**](#ch8)

There are two official languages in Ireland \-- Irish and English. While
English is used predominantly, the Irish language (Gaelic) can be heard
in the western part of the country, and can be found on signage around
the country. English is used for business contracts and correspondence,
but some expressions and terms may have different meanings from those in
the United States. To assure complete understanding, it is important to
define unfamiliar terms. Reference to INCOTERMS, the international set
of rules for commercial terms, helps to reduce possible
misunderstandings.

## Health [**Return to top**](#ch8)

Medical services are very good at major hospitals and compare generally
with those in the United States. However, there are sometimes not enough
available beds to service needs. Private clinics can be found in major
cities. Common medical needs are readily obtained, and special supplies
are normally available on short notice. An international certificate of
vaccination is not required for travelers from the United States.
Drinking water is excellent, most pharmaceuticals are available, and
sanitation is up to American standards.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

[]{#sixtyone .anchor}

A 39-hour, 5-day workweek is the norm for offices and factories in
Ireland. Customary office working hours are from 9:00 a.m. to 5:30 p.m.,
with lunch from 1:00 p.m. to 2:00 p.m. Banking hours are from 10:00 to
4:00 p.m. Most retail stores are open from 9:00 a.m. to 6:00 p.m.,
Monday through Saturday, and 12:00 (Noon) to 6:00 p.m., Sundays and
Public Holidays. Many outlets also have later hours on certain days
(Thursday in Dublin) to permit evening shopping.

Due to the vacation season in Ireland in July and August, many Irish
business executives may not be available except by appointment. Also,
appointments may be difficult to schedule on Friday afternoons during
the summer months, when extended weekends are often taken. Most
businesses are closed from December 24 through January 2, during the
Christmas season.

The following is a listing of the official statutory public holidays in
Ireland when most commercial offices are closed. Certain other days are
celebrated as holidays within local jurisdictions. If New Year\'s Day,
Saint Patrick's Day, Christmas Day, or Saint Stephen's Day fall on a
weekend, the following Monday is a public holiday.

[National Holidays]{.underline}

New Year\'s Day (Bank Holiday): January 1, 2008

Saint Patrick's Day: March 17, 2008

Good Friday: March 21, 2008

Easter Monday (Bank Holiday): March 24, 2008

May Day (Bank Holiday): May 5, 2008

June Holiday: June 2, 2008

August Holiday: August 4, 2008

October Holiday: October 27, 2008

Christmas Day: December 25, 2008

Saint Stephen's Day: December 26, 2008

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

Simplified procedures are available to traveling U.S. business and
professional people for the temporary importation of commercial samples
and professional equipment for display or demonstration though the use
of a "carnet." A carnet is a customs document, obtained prior to
departure, which facilitates customs clearance for temporary imports.
With the carnet, goods may be imported without the payment of duty, tax,
or additional security. A carnet is usually valid for one year from the
date of issuance. A bond or cash deposit of 40% of the value of the
goods covered by the carnet is also required. This will be forfeited in
the event the products are not re-exported and duties and taxes are not
paid. Carnets can be obtained from the U.S. Council for International
Business ([www.atacarnet.org](http://www.atacarnet.org/)).

## Other Useful Information [**Return to top**](#ch8)

-   Tipping is as appropriate in Ireland as it is in the United States.
    Generally, for cabdrivers and waiters, 10% is the norm.

-   Many restaurants add an automatic 10% service charge to the bill,
    which may be supplemented at the diner's discretion.

-   Porters and bellhops can receive up to one euro per piece of
    luggage.

-   On January 1, 2002, the euro was officially introduced into
    circulation in the European Union countries, including Ireland,
    which are part of the European Monetary Union (EMU). Denmark, Sweden
    and the United Kingdom are members of the EU, but not the EMU, and
    therefore do not have the euro as their official currency.

```{=html}
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```
-   U.S. credit cards are widely accepted, though vendors may require
    additional identification, such as a passport. Travelers' checks are
    usually accepted, but visitors should inquire about the policy of
    the bank, hotel, or store before seeking to cash a personal check.

-   Irish banks may not accept \$100 bills for currency exchange.
    Business travelers should consider bringing travelers checks and/or
    cash in denominations of \$20 or less for currency exchange.

```{=html}
<!-- -->
```
-   Most Irish banks are affiliated to payment facilities networks such
    as 'Plus,' 'Cirrus,' and 'Maestro' and readily dispense cash in
    euros through their ATMs. This provides one of the most convenient
    ways to obtain cash, although bank transaction fees apply.

-   For currency or other numerical quantities, a comma is commonly used
    to mark off the thousands position and a decimal point (period) to
    denote decimal amounts \-- the same practice as followed in the
    United States; for example euro 1,234,456.78. Dates are written in
    the sequence of day, month, and year. For example, the date March
    17, 2006, is found in written correspondence as 17 March 2006 or
    17.3.2006.

-   The electric current in Ireland is alternating current, 50 cycle,
    220 volts. American appliances, such as electric shavers or hair
    dryers, do not work and will be damaged if used without a converter
    and adaptor plug (readily available for purchase in airport transit
    lounges).

[Return to table of contents](#doing-business-in-ireland)

[Return to table of contents](#doing-business-in-ireland)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Organization: U.S. Embassy, Commercial Section

Contact Name: Mitchel Auerbach, Senior Commercial Officer

Address: U.S. Embassy, 42 Elgin Road, Ballsbridge, Dublin 4.

Phone: +353-1-667-4752

Fax: +353-1-667-4754

E-mail: <mitchel.auerbach@mail.doc.gov>

Website: <http://www.buyusa.gov/ireland>

[http://dublin.usembassy.gov](http://dublin.usembassy.gov/)

Organization: U.S. Embassy, Economic Section

Contact Name: Dwight Nystrom, POL/ECON Chief

Address: U.S. Embassy, 42 Elgin Road, Ballsbridge, Dublin 4.

Phone: +353-1-668-7122

Fax: +353-1-667-0056

Website:
[http://dublin.usembassy.gov](../%20http://dublin.usembassy.gov%0D%20)

Organization: U.S. Embassy, Agricultural Section

Contact Name: Michael Hanley, Agricultural Specialist

Address: U.S. Embassy, 42 Elgin Road, Ballsbridge, Dublin 4.

Phone: +353-1- 630 6254

Fax: +353-1-668-7423

E-mail: [agdublin@usda.gov](mailto:agdublin@fas.usda.gov)

Organization: U.S. Department of Commerce

Contact Name: Robert McLaughlin, Desk Officer for Ireland

Address: U.S. Department of Commerce, Room H-3039, 14th Street &
Constitution Avenue, N.W., Washington, D.C. 20230

Phone: (202) 482-3748

Fax: (202) 482-2897

Organization: American Chamber of Commerce in Ireland

Contact Name: Joanne Richardson, CEO

Address: 6 Wilton Place, Dublin 2, Ireland

Phone: +353-1-661-6201

Fax: +353-1-661-6217

E-Mail: <info@amcham.ie>

Organization: IDA Ireland (Industrial Development Agency)

Contact Name: Sean Dorgan, Chief Executive

Address: Wilton Park House, Wilton Place, Dublin 2.

Phone: +353-1-603-4000

Fax: +353-1-603-4040

Website: [www.idaireland.com](http://www.idaireland.com/)

Organization: Enterprise Ireland

Contact Name: Frank Ryan, Chief Executive

Address: Glasnevin, Dublin 9.

Phone: +353-1-808-2000

Fax: +353-1-808-2020

Website:
[www.enterprise-ireland.com](http://www.enterprise-ireland.com/)

Organization: Chambers Ireland

Contact Name: Mr. John Dunne, Chief Executive

Address: 17 Merrion Square, Dublin 2.

Phone: +353-1-661-2888

Fax: +353-1-661-2811

Website: [www.chambers.ie](http://www.chambers.ie/)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service
please go to the following website:
<http://www.export.gov/mrktresearch/index.asp> and click on Country and
Industry Market Reports.

Please note that these reports are only available to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Please click on the link below for information on upcoming trade events.

<http://www.export.gov/tradeevents/index.asp>

[Return to table of contents](#doing-business-in-ireland)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-ireland)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research

-   Promote your products and services to qualified buyers

-   Meet the best distributors and agents for your products and services

-   Overcome potential challenges or trade barriers

For more information on the services the U.S. Commercial Service offers
U.S. businesses, please click on the link below.

<http://www.buyusa.gov/ireland>

[Return to table of contents](#doing-business-in-ireland)

# 

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.