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#   {#section .unnumbered}

# ![](media/image2.jpeg){width="0.7395833333333334in" height="0.78125in"}  FY2007 Doing Business in Portugal: A Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business in
    Portugal](#chapter-1-doing-business-in-portugal)

-   [Chapter 2: Political and Economic
    Environment](#chapter-2-political-and-economic-environment)

-   [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 Portugal

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

-   [Market Challenges](#market-challenges-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-portugal)

Mainland Portugal, along with its semi-autonomous island regions of the
Azores and Madeira, offer American exporters a market of approximately
10.6 million people in a country roughly the size of the State of
Indiana. As one of the charter members of the European Union (EU), it is
fully integrated with the EU, uses the Euro currency, and follows
directives from the EU Commission in Brussels. As with all EU countries,
Portugal's borders and ports are completely open to the free flow of
trade with other EU member countries. It is a politically stable
environment with a democratically elected parliamentary government and
is relatively welcoming of foreign business and investment.

U.S. Census data indicates Portuguese consumers bought approximately
\$1.1 billion dollars worth of U.S. goods and services in 2005. However,
the total amount of U.S. goods being brought into Portugal is
undoubtedly larger, due to the fact that these statistics do not account
for U.S. products landed in any other EU country then sold into
Portugal. It is common that goods are shipped to one EU location and
then distributed by ground transport to member state markets. In 2005,
the U.S. states exporting the most to Portugal were Kansas, Louisiana,
Arkansas, Georgia, California, and Indiana. The top U.S. exports to
Portugal in 2005 were aircraft & parts, electrical machinery,
miscellaneous grains, seeds, and fruits, optical/medical equipment, and
wood products.

The United States is working closely with Portugal to find ways to
strengthen and deepen two-way trade and investment levels. The United
States welcomes Portugal\'s contributions to the world economy and hopes
to raise the U.S.-Portuguese trade and economic relationship to the
strong levels that have been hallmarks of the historical, close
political, geo-strategic, and security ties between the two countries.

Under the leadership of Ambassador Alfred Hoffman, Jr., the United
States is helping to strengthen bilateral trade and economic relations.
Ambassador Hoffman has hosted numerous initiatives on both sides of the
Atlantic to promote a greater awareness of the untapped economic
potential in the U.S.-Portuguese commercial relationship. The Portuguese
Government under Prime Minister Jose Socrates is playing a critical role
in strengthening Portugal as an investment destination for U.S. capital.
It also is raising global awareness of sectors in which Portuguese
firms, products, and entrepreneurs offer comparative advantages. For
example, the Portuguese Government is seeking to increase exports of
textiles and footwear to the United States, and is encouraging greater
bilateral investment in other ways.

U.S. firms are playing increasingly significant roles in Portugal's
economic expansion, particularly in the automotive, pharmaceutical,
computer, and retailing sectors. Portugal's assumption of the EU
Presidency in the second half of 2007 will likely bring additional
exposure to the opportunities U.S. firms have in Portugal, as well as
opportunities Portuguese entrepreneurs and companies have in the U.S.
market.

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

Elected in 2005 under a strong reform mandate, Prime Minister Jose
Socrates is undertaking ambitious measures to lower Portugal's deficit
and strengthen other facets of the Portuguese economy. The budget
tightening has targeted the large public sector. The economy is
estimated to have grown by just 0.3% in 2005. Estimated growth in 2006
was 0.7% and for 2007, it is expected to increase by 1.5%.

American exporters face competition in Portugal from savvy European
competitors. European companies are already familiar with aspects of the
business culture, financing, regulations, standards, etc. In addition,
they do not face import tariffs that U.S. companies have to pay in
getting their products into Portugal. Some U.S. companies have reported
that they are now encountering Chinese competitors in Portugal.

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

The current Dollar/Euro exchange rate continues to represent an
advantage for U.S. exporters to Portugal and all European countries. A
commonly held belief in Portugal is that U.S. products are high quality
but uncompetitive on price. All U.S. firms are advised to press their
price advantage to break into the market and/or to increase market
share. The U.S. Commercial Service in Portugal is seeing renewed
interest by Portuguese industry looking for material and component
suppliers from the U.S.

The market for U.S. architectural, construction and engineering company
services is set to be an interesting one in Portugal in the near future.
Public works construction is expected to grow at a rate of 5 to 7% in
the next five years. Beginning now, and continuing to 2012, there are
four major projects, which have the full attention of the Government and
are considered priorities to move ahead. They are the new Lisbon
Airport, high-speed rail lines, renewable energy and new port
infrastructure.

As part of the country's economic plan, Portugal will invest 10 billion
Euros in infrastructure in the next 5 years, therefore, making use of
the European Union's structural and cohesion funds that are still
available to Portugal. There may be great short and long-term
opportunities for U.S. firms in these four major project areas.

The Portuguese market is larger than it may initially appear. There may
only be 10.6 million people in Portugal, but there are well over 200
million people speaking Portuguese worldwide. In fact, it is the 5th
most widely spoken language in the world. Former Portuguese colonies
including, Macau, Mozambique, Angola and, of course Brazil, have close
business ties with Portugal. U.S. companies can readily find avenues to
these other markets through Portugal.

Portugal is an excellent entry point or first test-market for a U.S.
firm looking to get into the EU. English is widely spoken and the
populace is generally very friendly towards Americans. Both physical and
IT Infrastructure are well developed and Portugal is still one of the
lower commercial cost environments in Europe.

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

First time exporters are urged to get in contact with the nearest of
over 100 stateside U.S. Export Assistance Centers (USEAC). These USEACs
are part of the worldwide network of U.S. Department of Commerce offices
to support U.S. exporting. The U.S. Commercial Service in Portugal
recommends that U.S. firms get acquainted with the Portuguese market
through the standard market research reports we have published and which
are all available through the USEACs and the Internet. Companies that
have already penetrated one EU country will have met the requirements
for Portugal as well.

The quickest and best way to enter the Portuguese market is to work with
a local partner. Both small and large U.S. exporters can benefit from
finding the right person or group in Portugal who can provide advice and
contacts. Commercial Service offices, located in the U.S. Embassy in
Lisbon with a satellite office in Porto, have a variety of services to
help U.S. firms get the information they need about the market and find
an agent, distributor or representative for their product or service.

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

#   {#section-2 .unnumbered}

# 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/3208.htm>

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch3 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# 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-return-to-top)

-   [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)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

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

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

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

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

In doing business in Portugal, U.S. businesses should keep the following
points in mind:

\- Local Representative. One needs a local representative who must have
good contacts in order to be aware of future contracts and to
participate in tenders. Portugal is a small country and knowing people
in your industry is very important.

\- Exclusive Distributor. Given the size of the market, one distributor
that is appointed on an exclusive basis is ideal. It may be worthwhile
to allow the newly appointed distributor to prove their performance
before granting exclusivity or to define the period of exclusivity with
conditions for renewal.

\- The Iberian Peninsula. Portugal and Spain are not one homogeneous
marketing area. Normally your Spanish distributor should not be asked to
cover Portugal unless the Spanish company is willing to set up a
separate Portuguese entity to handle the market.

\- Impact of the EU. If homework has been done for other EU markets it
is basically done for Portugal. Many projects are EU-funded so a EU
partner is desirable and is fundamental when bidding on these projects.

\- Slow Down. Business takes longer compared to the U.S. or northern
Europe because personal contacts are important. Customers want to get to
know the seller before trust is established.

\- Business is Honorable. There are relatively few trade complaints.
Because the business community is closely knit and many distributors are
family-run operations, trade disputes are few and are normally resolved
out of court. But, for companies that do have to resort to the courts
they should be prepared to wait and wait. The Portuguese legal system is
hopelessly slow and is the biggest single cause of unresolved U. S.
company trade complaints.

\- English is Common. Although Portugal is a European country it looks
to the Atlantic and to trade with others. After all, Portugal discovered
trade routes to Africa before Columbus landed in America. The Portuguese
also opened the first major trading routes to India and the Far East,
and administered a vast colonial empire for 500 years. The U.S. is well
respected in the market and companies can usually do business in
English.

European Union Regulations

Companies wishing to use distribution, franchising and agency
arrangements need to ensure that the agreements they put into place are
in accordance with EU and Member State national laws. Council Directive
86/653/EEC establishes certain minimum standards of protection for
self-employed commercial agents who sell or purchase goods on behalf of
their principals. In essence, the Directive establishes the rights and
obligations of the principal and its agents; the agent's remuneration;
and the conclusion and termination of an agency contract, including the
notice to be given and indemnity or compensation to be paid to the
agent. U.S. companies particularly should be aware that the Directive
states that parties may not derogate certain requirements. Accordingly,
the inclusion of a clause specifying an alternate body of law to be
applied in the event of a dispute will likely be ruled invalid by
European courts.

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML>

The European Commission's Directorate General for Competition enforces
legislation concerned with the effects on competition in the internal
market of such \"vertical agreements.\" Most U.S. exporters are small-
and medium-sized companies and are therefore exempt from the Regulations
because their agreements likely would qualify as \"agreements of minor
importance,\" meaning they are considered incapable of affecting
competition at the EU level but useful for cooperation between SMEs.
Generally speaking, companies with fewer than 250 employees and an
annual turnover of less than €50 million are considered small- and
medium-sized undertakings. The EU has additionally indicated that
agreements that affect less than 10 percent of a particular market are
generally exempted as well (Commission Notice 2001/C 368/07).

<http://eur-lex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdf>

The EU also looks to combat payment delays with Directive 2000/35/EC.
This covers all commercial transactions within the EU, whether in the
public or private sector, primarily dealing with the consequences of
late payment. Transactions with consumers, however, do not fall within
the scope of this Directive. In sum, the Directive entitles a seller who
does not receive payment for goods/services within 30-60 days of the
payment deadline to collect interest (at a rate of 7 percent above the
European Central Bank rate) as compensation. The seller may also retain
the title to goods until payment is completed and may claim full
compensation for all recovery costs.

<http://ec.europa.eu/comm/enterprise/regulation/late_payments/>

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

In order to establish an office in Portugal, one must create a new
Portuguese company that is recognized under Portuguese law. For
foreigners, this process once offered some difficulties. Since 1998,
though, the process was simplified with Formality Centers for Companies
(CFE), an agency created by the Portuguese Government to help companies
bypass the bureaucracy by locating all necessary approval agencies in
one place. Commercial Service Lisbon considers CFE to be the most
qualified entity to meet a new company's needs. One may use the
assistance of a documentation agent (an individual or company
specialized in handling administrative procedures to obtain legal
documents), or a lawyer.

Any U.S. entity interested in establishing a company in Portugal should
visit and discuss the project with both the Commercial Service office of
the American Embassy in Lisbon or the Commercial Office in Porto and the
Portuguese Institute of Foreign Commerce (ICEP) in order to obtain
additional and useful information about Portugal.

The legal process is as follows:

1.  Obtain a Certificate of Approval of the company's name (which may be
    the parent company name in the United States):

The National Registry of Collective Entities (RNPC) issues the
certificate of approval of the company's name after completion and
submission of the necessary forms. This is to ensure that no company is
incorporated with a name, which may be confused with that of an existing
company, and that the name is in accordance with the company's
activities.

One or more of the future shareholders, a representative nominated by
them, or an authorized agent must request the certificate.

The certificate is valid for 180 days and maybe renewed within
designated time limits.

2.  Apply to the RNPC for the provisional identification card for the
    new company. To prevent delays, this card should be requested at the
    same time as the certificate of the approval of the company's name.

The application for this is made to the RNPC with the appropriate forms.

The card is valid for one year and can be renewed if the incorporation
process has not been completed.

3.  The Deed of Incorporation or Association should be signed in the
    presence of a notary after the finalization of the Articles of
    Association. In addition to the names of all the founding
    shareholders and their identification documents, the following
    information must be included:

```{=html}
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A.  The type of company

B.  The company's name

C.  The activities of the company

D.  The registered office

E.  The share capital (except for General Partnerships, when all the
    partners contribute personal services in exchange for their shares)

F.  The number of shares and the holdings of each shareholder

If the subscription is not in cash, a description should be given and an
auditor's report on the value of the assets being contributed in
exchange must be made.

Open a bank account in the name of the new company being created and
deposit its initial capital (registered capital) in one of the local
banks.

4.  Provide the fiscal year-end, if different from the calendar year.

5.  Provide a declaration of commencement of activities:

The company must file a form - Declaration of Commencement of
Activities - with the local tax office for the area of its head office.
This effects registration for taxation purposes and must be submitted
within 90 days of registration at the RNPC and before any activity takes
place.

6.  Register at the Commercial Registry Office (\"Conservatória do
    Registo Comercial"):

The registration of the company's incorporation must be made within 90
days of the signature of the deed.

The Memorandum of Association must be published in the official
gazette - Diário da República. This is the responsibility of the
Conservatória do Registo Comercial that must also ensure its final
registration with the RNPC and its publication in a national newspaper.

The Conservatória do Registo Comercial ensures that the final
registration takes place at the RNPC, which then issues the final
identification card of a collective person (NPC).

7.  Register the foreign investment with ICEP.

CFEs -- Formality Centers for Companies

These CFEs were created by ICEP to streamline the bureaucratic
procedures above for establishing a business. Following are the steps
involved:

A.  Request a certificate of approval of the company's name.

B.  Obtain a provisional identification card from the National Registry
    of Collective Persons (RNPC).

C.  Execute the deed of incorporation.

D.  Provide a declaration of commencement of activities.

E.  Assist when applying for the Commercial Registry.

F.  Register the firm in the National Registry of Collective Entities.

G.  Register with Social Security.

The CFEs also provide information and counseling on:

-   Legal requirements regarding any entrepreneurial activity

-   Licenses

-   Permits

-   Tax obligations and benefits

-   Tax and legal advice

Industrial activities must be licensed by any delegation of the Ministry
of Economy co-located at one of the five Regional Coordinating
Committees of the national government. Commercial activities generally
do not require licensing.

For commercial activities related to public health or security, a
license must be issued by the DGC -- Direcção Geral do Comercio (General
Directorate for Commerce).

Another option to establish an office is the "Instant Company Service"
(Servico Empresa na Hora). This is a new service created in 2006, which
permits a company to be fully operational within 24 hours. Even though
this service is available in any Commercial Register Office, they are
processing a limited number of companies per day.

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

The Portuguese franchising market has grown steadily over the past
decade and enjoys an annual growth rate of 4-8%. Even though the most
developed segment of franchising in Portugal is services, with 46
percent share of the market, it is not yet fully developed. Portugal's
entrance into the global economy in the last decade has created a demand
for business services, in general. However, other sectors should be
considered, since Portugal offers many opportunities for expansion and
the market still has considerable room for new, internationally known
franchising concepts *(see Best Prospects).*

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

Mail order and TV-sales have become effective direct marketing methods
and have grown rapidly. Between 1998 and 2005 sales growth was estimated
at 15% and presently there are more than 50 direct marketing firms in
the market. The most popular direct marketing sectors are cultural,
instruction/training and amusement materials (35% of sales) and apparel
and clothing (19% of sales). Other successful areas are home
furnishings, perfumes and cosmetics, and art/collectible products.

The expansion of this type of marketing has not been greater because
Portuguese mailing expenses are still high and consumer confidence in
direct marketing methods is low. Portuguese consumer protection
regulations and laws are considered adequate. Authorities implementing
controls and conducting inspections, nevertheless, often fail to do so
effectively.

Direct marketing is increasing in importance as a sales method and is
expanding every year to new areas of activity. Although relatively less
developed than in many other EU countries, \"E-commerce\" has brought
new life to the sector and allowed the emergence of very successful
retailers of office supplies, computer hardware/software, groceries,
clothing, and books.

E-commerce is one of the fastest growing sectors in the country but
remains in an incipient state, partially due to security fears.
According to recent data, 58% of the Portuguese use the Internet on a
daily basis and from those an estimated 18% bought goods online.
E-Commerce offers great potential for U.S. companies trying to sell
their products to the Portuguese. You will find in Portugal all types of
E-Commerce solutions. In order for U.S. companies to succeed in
promoting their products and increase online sales in Portugal, they
need to look at the following factors:

-   Portugal belongs to the group of European countries that adopted the
    Euro currency. It would be beneficial to add an Exchange Rate
    Conversion Tool.

-   Portugal uses the metric system of weights and measures. Products to
    be sold in Portugal should therefore use the metric system. We
    recommend U.S. companies to add an online conversion tool or have
    products weights and measures in American and metric units.

-   Translation of product literature into Portuguese would also be
    advisable (with a sensitivity to differences between the Continental
    Portuguese and Brazilian Portuguese, both languages differ in
    phonetic, morphological, syntactic, and lexical characteristics). In
    most cases, Portuguese prefer to struggle with English than to have
    to read from a Brazilian Portuguese translation.

-   Using Portuguese Search Engines with translated keywords of your
    products would be a good method to advertise your products in
    Portugal. A few major Portuguese Search Engines are SAPO
    (http://www.sapo.pt), netIndex (http://www.netindex.pt), AEIOU,
    (http://www.aeiou.pt) and CLIX (http://www.clix.pt).

Investors should also be aware of the Directive 95/46/EC of the European
Parliament and of the Council of October 24, 1995 on the protection of
individuals with regard to the processing of personal data and on the
Free Movement of such Data.

European Union Regulations

There is a wide range of EU legislation that impacts the direct
marketing sector. Compliance requirements are stiffest for marketing and
sales to private consumers. Companies need to focus, in particular, on
the clarity and completeness of the information they provide to
consumers prior to purchase, and on their approaches to collecting and
using customer data. The following gives a brief overview of the most
important provisions flowing from EU-wide rules on data protection,
distance selling and on-line commerce. Companies are advised to consult
the information available via the hyper-links, to check the relevant
sections of national Country Commercial Guides, and to contact the
Commercial Service at the U.S. Mission to the European Union for more
specific guidance.

*Processing Customer Data*

The EU's general data protection Directive (95/46/EC) spells out strict
rules concerning the processing of personal data. Businesses must tell
consumers that they are collecting data, what they intend to use it for,
and to whom it will be disclosed. *Data subjects* must be given the
opportunity to object to the processing of their personal details and to
opt-out of having them used for direct marketing purposes. This opt-out
should be available at the time of collection and at any point
thereafter. This general legislation is supplemented by specific rules
set out in the \"Directive on the processing of personal data and the
protection of privacy in the electronic communications sector\"
(2002/58/EC). This requires companies to secure the prior consent of
consumers before sending them marketing emails. The only exception to
this opt-in provision is if the marketer has already obtained the
intended recipient's contact details in the context of a previous sale
and wishes to send them information on similar products and services.

[http://ec.europa.eu/justice_home/fsj/privacy/law/index_en.htm](http://europa.eu.int/comm/justice_home/fsj/privacy/law/index_en.htm)

*Transferring Customer Data to Countries Outside the EU*

The EU\'s general data protection Directive provides for the free flow
of personal data within the EU but also for its protection when it
leaves the region's borders. Personal data can only be transferred
outside the EU if adequate protection is provided for it or if the
unambiguous consent of the data subject is secured. The European
Commission has decided that a handful of countries have regulatory
frameworks in place that guarantee the adequate protection of data
transferred to them -- the United States is not one.

The U.S. Department of Commerce and the European Commission negotiated
Safe Harbor to provide U.S. companies with a simple, streamlined means
of complying with the adequacy requirement. It allows those U.S.
companies that commit to a series of data protection principles (based
on the Directive), and who publicly state that commitment by
\"self-certifying\" on a dedicated website, to continue to receive
personal data from the EU. Signing up is voluntary but the rules are
binding on those who do. The ultimate means of enforcing Safe Harbor is
that failure to fulfill the commitments will be actionable as an unfair
and deceptive practice under Section 5 of the FTC Act or under a
concurrent Department of Transportation statute for air carriers and
ticket agents. While the United States as a whole does not enjoy an
"adequacy finding," (as is defined in a Decision by the European
Commission under Article 25, paragraph 6 of the Data Protection
Directive (95/46/EC)), companies that adhere to the Safe Harbor scheme
will.

EU based exporters or U.S. based importers of personal data can also
satisfy the adequacy requirement by including data privacy clauses in
the contracts they sign with each other. The Data Protection Authority
in the EU country from where the data is being exported must approve
these contracts. To fast track this procedure the European Commission
has approved sets of model clauses for personal data transfers that can
be inserted into contracts between data importers and exporters. The
most recent were published at the beginning of 2005. Most transfers
using contracts based on these model clauses do not require prior
approval. Companies must bear in mind that the transfer of personal data
to third countries is a processing operation that is subject to the
general data protection Directive regardless of any Safe Harbor,
contractual or consent arrangements.

<http://www.export.gov/safeharbor/>

[http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm](http://europa.eu.int/comm/justice_home/fsj/privacy/modelcontracts/index_en.htm)

*Distance Selling Rules*

Distance and Door-to-Door sales

The EU's Directive on distance selling to consumers (97/7/EC) set out a
number of obligations for companies doing business at a distance with
consumers. It can read like a set of onerous \"do's\" and \"don'ts,\"
but in many ways it represents nothing more than a customer relations
good practice guide with legal effect. Direct marketers must provide
clear information on the identity of themselves as well as their
supplier, full details on prices including delivery costs, and the
period for which an offer remains valid -- all of this, of course,
before a contract is concluded. Customers generally have the right to
return goods without any required explanation within seven days, and
retain the right to compensation for faulty goods thereafter.

Similar in nature is the Doorstep Directive (85/577/EEC), which is
designed to protect consumers from sales occurring outside of normal
business premises (e.g., door-to-door sales) and essentially assure the
fairness of resulting contracts.

[http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htm](http://europa.eu.int/comm/consumers/cons_int/safe_shop/index_en.htm)

Distance Selling of Financial Services

Financial services are the subject of a separate Directive that came
into force in June 2002 (2002/65/EC). This piece of legislation amends
three prior existing Directives and is designed to ensure that consumers
are appropriately protected in respect to financial transactions taking
place where the consumer and the provider are not face-to-face. In
addition to prohibiting certain abusive marketing practices, the
Directive establishes criteria for the presentation of contract
information. Given the special nature of financial markets, specifics
are also laid out for contractual withdrawal.

[http://ec.europa.eu/consumers/cons_int/fina_serv/index_en.htm](http://europa.eu.int/comm/consumers/cons_int/fina_serv/index_en.htm)

*Direct Marketing Over the Internet*

The e-commerce Directive (2000/31/EC) imposes certain specific
requirements connected to the direct marketing business. Promotional
offers must not mislead customers and the terms that must be met to
qualify for them have to be easily accessible and clear. The Directive
stipulates that marketing e-mails must be identified as such to the
recipient and requires that companies targeting customers on-line must
regularly consult national opt-out registers where they exist. When an
order is placed, the service provider must acknowledge receipt quickly
and by electronic means, although the Directive does not attribute any
legal effect to the placing of an order or its acknowledgment. This is a
matter for national law. Vendors of electronically supplied services
must also collect value added tax (VAT).

[http://ec.europa.eu/internal_market/e-commerce/index_en.htm](http://europa.eu.int/comm/internal_market/en/ecommerce/index.htm)

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

Joint ventures and licensing are alternative ways to enter the
Portuguese market. Joint ventures between American and Portuguese firms
are treated under Portuguese law as a foreign investment operation,
which may take the form of any type of business firm. With regard to tax
treatment and incentives, both domestic and foreign-owned joint ventures
and licensing agreements are treated equally. Special regulations apply
to investment in some sectors as explained in Chapter VII.

Licensing is a contractual arrangement, in which the licensor makes
available or sells its know-how, patents, trademarks or copyrights to a
licensee for compensation. Franchising could be considered an important
form of know-how licensing.

American firms should, perhaps, be reminded of the obvious: As a fully
integrated member of the EU, Portugal abides by the foreign trade and
investment rules that govern the rest of the EU. Whatever applies in
other EU countries applies to Portugal. If an American firm has mastered
EU regulations prior to exporting or investing in the EU, it has already
done its homework for Portugal. However, enforcement of some
intellectual property rights laws is still weak in Portugal.

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

Portugal follows the EU directive to the GATT Procurement Code, but has
an exception concerning utilities such as water, transportation, energy
and telecommunications. Portugal also ratified the decisions of the
Uruguay Round, regarding government procurement.

Depending on the amount, government procurement may be made by direct
consultation, national and/or international tenders. National and
international tenders are published in the Portuguese Official Journal
(Diario da Republica, Series III) and in the major Portuguese
newspapers.

International tenders are also published in the EU Official Journal
(Series F).

European Union Regulations

The EU public procurement market, including EU institutions and Member
States, totals around EUR 1,600 billion per year. This market is
regulated by two EU Directives, which apply for contracts above certain
agreed thresholds. Under the agreed thresholds, each EU Member State has
developed its own procurement law, which is not regulated by the EU
public procurement Directives, although the general principles of the EU
Treaty regarding non-discrimination and free movement of goods apply
even below the thresholds. The two EU public procurement Directives are:
Directive 2004/18 on coordination of procedures for the award of public
works, services and supplies contracts, and Directive 2004/17 on
coordination of procedures of entities operating in the Utilities
sector, which covers water, energy, transport and postal services. Those
Directives are implemented in each EU Member State's national
procurement legislation. two remedy Directives outline the procedures
that EU Member States ought to put in place in case of violation of the
EU public procurement law: Directive 89/665 on the "Coordination of the
laws, Regulations and administrative provisions relating to the
application of review procedures to the award of public supply and
public works contracts" for the classic sectors, and Directive 92/13 for
remedies in the utilities sector.

Two proposals for new Directives, scheduled for 2007, are under
discussion by EU institutions. First, a proposal for a new Remedies
Directive, which would increase possibilities for aggrieved companies to
complain in pre-contractual period, is being discussed by EU
institutions. Second, a proposal for a Directive covering defense
procurement would detail which particular less sensitive armaments
procurement will be covered by EU Directives and which sensitive items
will be allowed to benefit from an exemption of the law.

Most tenders from European public contracting authorities for public
supplies whose value is above the agreed thresholds are open to
U.S.-based companies by virtue of the WTO Government Procurement
Agreement (GPA). The GPA allows U.S. firms to bid on all supplies and
services and some construction works contracts above thresholds
contracted by EU central public contracting authorities. However, there
are restrictions for U.S. suppliers in the utilities sector both in the
EU Utilities Directive and in the EU coverage of the GPA. The Utilities
Directive allows EU contracting authorities in these sectors to either
reject non-EU bids where the proportion of goods originating in non-EU
countries exceeds 50% of the total value of the goods constituting the
tender, or are entitled to apply a 3% price difference to non-EU bids in
order to give preference to the EU bid. These restrictions are applied
when no reciprocal access for EU companies in the U.S. market is
offered.

The website of the U.S. Mission to the EU also has a database of all
European public procurement tenders that are open to U.S.-based firms by
virtue of the GPA. This database is free of charge, contains on average
6,000 to 10,000 tenders and is updated twice per week.

For more information, please see the website of the U.S. Commercial
Service at the U.S. Mission to the European Union dedicated to
procurement and the market research page which contains a handful of
reports on EU tendering and government procurement.

<http://www.buyusa.gov/europeanunion/euopportunities.html>

<http://www.buyusa.gov/europeanunion/mrr.html>

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

The Portuguese population is concentrated on the coast. The major
distribution centers are Lisbon in the South and Porto in the North,
although the regional centers of Braga (north of Porto) and Setúbal
(South of Lisbon) have come much into their own in recent years. The
Lisbon region accounts for 21% of Portugal\'s population with 63%
employed in services and 33% employed in industry. Major industries as
well as the head offices of many large corporations are located here.
Most financial institutions have also chosen Lisbon to locate their
headquarters. The Lisbon area has the highest purchasing power in the
country and suffers, like many metropolitan areas, from traffic
congestion and rising costs. Porto is the most dynamic industrial
development area in Portugal. It accounts for 16% of the Portuguese
population and is also an area of high purchasing power. Most importers
and distributors have offices in Porto and U.S. firms looking to appoint
a distributor in Portugal should not overlook this fact. The Commercial
Service maintains an office in Porto primarily to locate and to service
these distributors. Porto is now connected to Lisbon by a new motorway
and a new bridge over the Douro River. The coastal region between these
two and extending into Braga and Setúbal, is where the large majority of
Portuguese industries are located.

Portugal is a relatively small country and most sales channels cover the
entire territory. Distribution centers tend to be located in Lisbon and
Porto. However, many large importers and wholesalers have branch sales
offices and/or sub-agents or dealers in the principal cities and towns,
including those of the Portuguese islands of Madeira and the Azores.

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

In Portugal modern techniques still coexist with some traditional
practices. Modern sales techniques are generally accepted and effective,
but traditional values continue to be respected. Many businesspeople
still consider a personal contact and a handshake stronger than a
contract but they will not be offended if a formal contract is
requested.

Direct sales, large hypermarkets and shopping malls are becoming common.
For consumer goods the decisive selling factors may be price, quality,
brand name or the product\'s innovative features. However, the
institutional buyer is quality conscious and very sensitive to pricing.
Most tenders consider price first and quality second. These
characteristics, as well as its market size sometimes make Portugal a
difficult market for some American exporters. A good understanding of
market needs and the demand for new opportunities should lead to
profitable niches for the American exporter.

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

In July 2003, the European Union (EU) started applying Value Added Tax
(VAT) to sales by non-EU based companies of Electronically Supplied
Services (ESS) to EU based non-business customers. U.S. companies that
are covered by the rule change must collect and submit VAT to EU tax
authorities. European Council Directive 2002/38/EC changed the EU rules
for charging Value Added Tax.

U.S. businesses mainly affected by this rule change are those that are
U.S. based and selling ESS to EU based, non-business customers or those
businesses that are EU based and selling ESS to customers outside the EU
who no longer need to charge VAT on these transactions.

There are a number of compliance options for businesses. The Directive
created a special scheme that simplifies registering with each Member
State. The Directive allows companies to register with a single VAT
authority of their choice. Companies have to charge different rates of
VAT according to where their customers are based but VAT reports and
returns are submitted to just one authority. The VAT authority
responsible for providing the single point of registration service is
then responsible for reallocating the collected revenue among the other
EU VAT authorities.

<http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/index_en.htm>

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

As in all Western countries some of the preferred techniques to reach
Portuguese buyers effectively are advertising and trade promotions.
Portugal offers a reasonably priced market in which to advertise.
Advertising media is the same as in the majority of developed Western
countries: newspapers, magazines, TV and more recently Internet
advertising are the most popular.

In Portugal there are a number of annual specialized international trade
shows at the Feira Internacional de Lisboa (FIL) and at the EXPONOR
trade center near Porto, which also are excellent means to advertise. In
addition, the various associations' commercial bulletins are a very
important client-directed promotion.

CS Lisbon can provide a list of major newspapers and business journals,
upon request.

European Union Regulations

*General Legislation*

Laws against misleading advertisements differ widely from Member State
to Member State within the EU. To respond to this imperfection in the
Internal Market, the Commission adopted a Directive, in force since
October 1986, to establish minimum and objective criteria regarding
truth in advertising. The Directive was amended in October 1997 to
include comparative advertising. Under the Directive, misleading
advertising is defined as any \"advertising which in any way, including
its presentation, deceives or is likely to deceive the persons to whom
it is addressed or whom it reaches and which, by reason of its deceptive
nature, is likely to affect their economic behavior or which for those
reasons, injures or is likely to injure a competitor.\" Member States
can authorize even more extensive protection under their national laws.
Comparative advertising, subject to certain conditions, is defined as
\"advertising, which explicitly or by implication identifies a
competitor or goods or services by a competitor.\" Member States can,
and in some cases have, restricted misleading or comparative
advertising.

The EU's Television without Frontiers Directive lays down legislation on
broadcasting activities allowed within the EU. It is currently being
reviewed to adapt to advances in Internet, mobile phones and digital TV
technologies. It partially lifts Regulations on advertising and product
placement and proposes to ban advertising of food and drink to children.
The new rules should be adopted in 2007.

Following the adoption of the 1999 Council Directive on the Sale of
Consumer Goods and Associated Guarantees, product specifications, as
laid down in advertising, are now considered as legally binding on the
seller.

The EU adopted Directive 2005/29/EC concerning fair business practices
in a further attempt to tighten up consumer protection rules. These new
rules will outlaw several aggressive or deceptive marketing practices
such as pyramid schemes, \"liquidation sales\" when a shop is not
closing down, and artificially high prices as the basis for discounts in
addition to other potentially misleading advertising practices. Certain
rules on advertising to children are also set out.

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htm>

*Medicine*

The advertising of medicinal products for human use is regulated by
Council Directive 2001/83/EC. Generally speaking, the advertising of
medicinal products is forbidden if market authorization has not yet been
granted or if the product in question is a prescription drug.
Distribution of free samples of prescription medicines to the general
public is not permitted. The text of the advertisement should be
compatible with the characteristics listed on the product label, and
should encourage rational use of the product. The advertising of
medicinal products destined for professionals should contain essential
characteristics of the product as well as its classification.
Inducements to prescribe or supply a particular medicinal product are
prohibited.

The Commission plans to present a new framework for information to
patients on medicines in 2007. The framework would allow industry to
produce non-promotional information about their medicines while
complying with strictly defined rules and would be subject to an
effective system of control and quality assurance.

[http://ec.europa.eu/eur-lex/pri/en/oj/dat/2001/l_311/l_31120011128en00670128.pdf](http://europa.eu.int/eur-lex/pri/en/oj/dat/2001/l_311/l_31120011128en00670128.pdf)

######## Food

On July 16, 2003, the Commission adopted a proposal for a Regulation on
nutrition and health claims made on foods (COM 2003/424) supplementing
2000/13/EC on the labeling, presentation and advertising of foodstuffs.
The proposed Regulation would set rules on the use of language such as
\"low fat" and \"light,\" among others. The proposal seeks to harmonize
the rules for making claims throughout the EU and establishes what
nutrition and health claims are allowable.

[http://ec.europa.eu/comm/food/food/labelingnutrition/claims/index_en.htm](http://ec.europa.eu/comm/food/food/labellingnutrition/claims/index_en.htm)

*Food Supplements*

Directive 2002/46/EC establishes rules relating to the labeling of food
supplements and the maximum levels of vitamins and minerals in
particular. In Summer 2007, the European Commission will evaluate if
items other than minerals and vitamins need to be included in this
Directive.

<http://ec.europa.eu/food/food/labellingnutrition/supplements/index_en.htm>

*Tobacco*

The EU Tobacco Advertising Directive bans tobacco advertising in printed
media, radio, Internet and sponsorship of cross-border events or
activities. Advertising in cinemas and on billboards or merchandising is
allowed though these are banned in many Member States. Tobacco
advertising on television has been banned in the EU since the early
1990s, and is governed by the TV Without Frontiers Directive.

<http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htm>

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

Pricing is the most common reason why a number of U.S. products offered
in Portugal are not competitive. Pricing of U.S. products sometimes
reflects the dealer price in the United States.

This often includes the exporter's marketing overhead that:

1)  must be recalculated generally downward to properly account for
    actual expenses in the Portuguese market;

2)  must not be a \"double-counted\" expense that adds Portuguese
    marketing expenses on top of \"built-in\" American marketing
    expenses.

The most appropriate method of pricing a product for the Portuguese
market is marginal cost pricing. This would be the marginal unit cost of
production in the United States, plus Portuguese market-specific costs
associated with overseas promotion, labeling and packaging expenses. A
profit margin added to the other pricing components, should leave the
product competitive.

Portuguese importers currently accept the more common terms of
international trade (C.I.F, C&F., F.A.S., F.O.B. or Ex point of origin).
They prefer to receive C.I.F. quotations or at least F.O.B. quotations
including detailed product description, gross and net shipping weight,
volume and time of shipment (from where the delivery is made) and
delivery. Pro forma invoices with all the above details are not
mandatory but are advisable and desirable.

## Sales Service/Customer Support [**Return to top**](#ch3)

In Portugal there are no rules or current practices regarding sales
service/customer support. It is the specific nature of the American
product or service exported that determines the desirability of this
support. However, in representation/agency/ distributorship agreements,
sharing promotion expenses and cooperating in marketing strategies or
technical assistance could add valuable marketing leverage.

European Union Regulations

Conscious of the discrepancies among Member States in product labeling,
language use, legal guarantee, and liability, the redress of which
inevitably frustrates consumers in cross-border shopping, the EU
institutions have launched a number of initiatives aimed at harmonizing
national legislation. Suppliers within and outside the EU should be
aware of existing and upcoming legislation affecting sales, service, and
customer support.

######## Product Liability

Under the 1985 Directive on liability of defective products, amended in
1999, the producer is liable for damage caused by a defect in his
product. The victim must prove the existence of the defect and a causal
link between defect and injury (bodily as well as material). A reduction
of liability of the manufacturer is granted in cases of negligence on
the part of the victim.

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/defect_prod/index_en.htm>

*Product Safety*

The 1992 General Product Safety Directive introduces a general safety
requirement at the EU level to ensure that manufacturers only place safe
products on the market. It was revised in 2001 to include an obligation
on the producer and distributor to notify the Commission in case of a
problem with a given product, provisions for its recall, the creation of
a European Product Safety Network, and a ban on exports of products to
third countries, which are not deemed safe in the EU.

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/index_en.htm>

######## Legal Warranties and After-sales Service

Under the 1999 Directive on the Sale of Consumer Goods and Associated
Guarantees, professional sellers are required to provide a minimum
two-year warranty on all consumer goods sold to consumers (natural
persons acting for purposes outside their trade, businesses or
professions), as defined by the Directive. The remedies available to
consumers in case of non-compliance are:

-   repair of the good(s);

-   replacement of the good(s);

-   a price reduction; or

-   rescission of the sales contract.

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm>

Other issues pertaining to consumers' rights and protection, such as the
New Approach Directives, CE marking, quality control and data protection
are dealt with in Chapter 5 of this report.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

Trademark Protection - Portugal is a member of the European Union for
the Protection of Industrial Property (WIPO), a party to the Madrid
Agreement on International Registration of Trademarks and Prevention of
the Use of False Origins. Portugal\'s current trademark law entered into
force on June 1, 1995 and is consistent with the terms of the trade
related intellectual property provisions of the World Trade Organization
(WTO), Trade Related Aspects of Intellectual Property Rights (TRIPS).

Copyright Protection - The Government of Portugal is still in the
process of amending national copyright legislation to conform to EU
directives and the copyright provisions of TRIPS. In July 2000, the
country adopted the EU directive on protection of databases. However,
unauthorized reproduction of software remains a problem, despite modest
success of efforts by the Portuguese Association of Software
Distributors (ASSOFT) to discourage piracy and improve enforcement.
While the piracy rate has decreased over recent years, it remains one of
the highest in Europe.

Patent Protection - As stated above, Portugal is a member and a party to
the Madrid Agreement. The Munich Convention on European Patents went
into effect in 1992. To conform to the trademark and patent provisions
of the WTO (TRIPS), Portugal passed a new Code of Industrial Property
effective in 1995, but this law proved inconsistent with TRIPS in
certain regards. Specific legislation was passed in 1996 extending the
term of patents applied for or already in force on January 1, 1996, to
the TRIPS consistent 20-year-from-date-of-filing term. The existing
code, however, still does not include provisions to protect test data
unless submitted as part of a patent application.

European Union Regulations

*Copyright*

The EU's legislative framework for copyright protection consists of a
series of Directives covering areas such as the legal protection of
computer programs, the duration of protection of authors' rights and
neighboring rights, and the legal protection of databases. Almost all
Member States have fully implemented the rules into national law; and
the Commission is now focusing on ensuring that the framework is
enforced accurately and consistently across the EU.

The on-line copyright Directive (2001/29/EC) addresses the problem of
protecting rights holders in the online environment while protecting the
interests of users, ISPs and hardware manufacturers. It guarantees
authors' exclusive reproduction rights with a single mandatory exception
for technical copies and an exhaustive list of other exceptions that
individual Member States can select and include in national legislation.
This list is meant to reflect different cultural and legal traditions,
and includes private copying \"on condition right holders receive fair
compensation.\"

<http://ec.europa.eu/internal_market/copyright/index_en.htm>

###### *Patents*

EU countries have a \"first to file\" approach to patent applications,
as compared to the \"first to invent\" system followed in the United
States. This makes early filing a top priority for innovative companies.
Unfortunately it is not yet possible to file for a single EU-wide patent
that would be administered and enforced like the Community Trademark
(see below). For the moment, the most effective way for a company to
secure a patent across a range of EU national markets is to use the
services of the European Patent Office (EPO) in Munich. It offers a
one-stop-shop that enables rights holders to get a bundle of national
patents using a single application. However these national patents have
to be validated, maintained and litigated separately in each Member
State. EPO's web site is <http://www.european-patent-office.org/>.

<http://ec.europa.eu/internal_market/indprop/index_en.htm>

*Trademarks*

The EU-wide Community Trademark (CTM) can be obtained via a single
language application to the Office of Harmonization in the Internal
Market (OHIM) in Alicante, Spain. It lasts ten years and is renewable
indefinitely. For companies looking to protect trademarks in three or
more EU countries the CTM is a more cost effective option than
registering separate national trademarks. On October 1, 2004, the
European Commission (EC) acceded to the World Intellectual Property
Organization (WIPO) Madrid Protocol. The accession of the EC to the
Madrid Protocol establishes a link between the Madrid Protocol system,
administered by WIPO, and the Community Trademark system, administered
by OHIM. As of October 1, 2004, Community Trademark applicants and
holders are allowed to apply for international protection of their
trademarks through the filing of an international application under the
Madrid Protocol. Conversely, holders of international registrations
under the Madrid Protocol will be entitled to apply for protection of
their trademarks under the Community Trademark system.

<http://oami.eu.int/en/default.htm>

<http://www.wipo.int/madrid/en>

*Designs*

The EU adopted a Regulation introducing a single Community system for
the protection of designs in December 2001. The Regulation provides for
two types of design protection, directly applicable in each EU Member
State: the registered Community design and the unregistered Community
design. Under the registered Community design system, holders of
eligible designs can use an inexpensive procedure to register them with
the EU Office for Harmonization in the Internal Market (OHIM), based in
Alicante, Spain. They will then be granted exclusive rights to use the
designs anywhere in the EU for up to twenty-five years. Unregistered
Community designs that meet the Regulation's requirements are
automatically protected for three years from the date of disclosure of
the design to the public.

<http://oami.eu.int/en/design/default.htm>

####### *Trademark Exhaustion*

Within the EU, the rights conferred on trademark holders are subject to
the principle of \"exhaustion.\" Exhaustion means that once trademark
holders have placed their product on the market in one Member State,
they lose the right to prevent the resale of that product in another EU
country. This has led to an increase in the practice of so called
\"parallel importing\" whereby goods bought in one Member State are sold
in another by third parties unaffiliated to the manufacturer. Parallel
trade is particularly problematic for the research-based pharmaceutical
industry where drug prices vary from country to country due to national
price regulation. Community-wide exhaustion is spelled out in the
Directive on harmonizing trademark laws. In a paper published in 2003,
the Commission indicated that it had no plans to propose changes to
existing legal provisions.

<http://ec.europa.eu/internal_market/indprop/tm/index_en.htm>

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

The U.S. Commercial Service in Portugal assists U.S. firms identifying
the opportunities and risks of cross border transactions, in general:
supports bids in competitive tenders; briefs U.S. firms as required;
provides information on key risks in the business and advocates on
behalf of U.S. firms.

Also, to assist U.S. companies to enter international business
relationships with confidence, the International Company Profile (ICP)
Service helps U.S. companies evaluate potential business partners by
providing a detailed report on companies in Portugal. Through the
service, clients will receive a detailed background profile about the
company of interest that will provide information about the relative
strength of the firm in its market and its reliability, among other
things.

However, for complex transactions and issues, the Commercial Service can
provide lists of attorneys and law offices, as well as
accounting/consulting firms specialized in due diligence, as well as in
helping investors achieve the best value for a transaction.

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

Using an attorney is not mandatory to do business in Portugal. Most
transactions may be accomplished without an attorney, including the
establishment of small non-complex businesses. However, attorneys are
strongly recommended to solve some types of trade disputes and for the
establishment of local offices such as joint venture investments with
local entities or as 100% subsidiaries. For some complex types of
licensing, representation/distribution and franchising, an attorney is
also recommended to assure compliance with local law.

## Web Resources [**Return to top**](#ch3)

SBA's Office of International Trade

http://www.sba.gov/oit/

OPIC - Overseas Private Investment Corporation

http://www.opic.gov

TDA - Trade and Development Agency

http://www.tda.gov/

API -- Agencia Portuguesa p/o Investimento

(Portuguese Agency for Investment): http://www.apinvest.pt

FIL -- Feira Internacional de Lisboa

(International Fair of Lisbon -- Convention Center): http://www.fil.pt

EC Directive on Commercial Agents

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML>

Guidelines on "Vertical Agreements"

<http://eur-lex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdf>

EC Directive on Late Payments

<http://ec.europa.eu/comm/enterprise/regulation/late_payments/>

EC Directive on Data Protection

<http://ec.europa.eu/justice_home/fsj/privacy/law/index_en.htm>

Safe Harbor

<http://www.export.gov/safeharbor/>

Model Contracts for the Transfer of Personal Data

<http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm>

Ensuring Safe Shopping Across the EU

<http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htm>

Financial Services

<http://ec.europa.eu/consumers/cons_int/fina_serv/index_en.htm>

Electronic Commerce

<http://ec.europa.eu/internal_market/e-commerce/index_en.htm>

European Public Procurement Tenders Open to U.S. Companies

<http://www.buyusa.gov/europeanunion/eu_tenders.html>

Procurement

<http://www.buyusa.gov/europeanunion/euopportunities.html>

EU Tenders Website

[http://ted.europa.eu](http://ted.europa.eu/)

Market Research Reports

<http://www.buyusa.gov/europeanunion/mrr.html>

eVAT

<http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/index_en.htm>

EC Internal Markets Official Documents

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htm>

Medicinal Products for Human Use

<http://ec.europa.eu/eur-lex/pri/en/oj/dat/2001/l_311/l_31120011128en00670128.pdf>

Food Labeling

<http://ec.europa.eu/comm/food/food/labellingnutrition/claims/index_en.htm>

Food Supplements

[http://ec.europa.eu/food/food/labelingnutrition/supplements/index_en.htm](http://ec.europa.eu/food/food/labellingnutrition/supplements/index_en.htm)

Tobacco

<http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htm>

Liability of Defective Products

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/defect_prod/index_en.htm>

Safety of Products

<http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/index_en.htm>

Sale of Goods and Guarantees

<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm>

Copyright and Neighboring Rights

<http://ec.europa.eu/comm/internal_market/copyright/index_en.htm>

European Patent Office

<http://www.european-patent-office.org/>

Industrial Property

<http://ec.europa.eu/internal_market/indprop/index_en.htm>

Office for Harmonization in the Internal Market (OHIM)

<http://oami.eu.int/en/default.htm>

WIPO Madrid System

<http://www.wipo.int/madrid/en>

OHIM Community Design

<http://oami.eu.int/en/design/default.htm>

Exhaustion of Trademark Rights

<http://ec.europa.eu/internal_market/indprop/tm/index_en.htm>

Professional Service Providers

<http://www.buyusa.gov/europeanunion/services.html>

EU Member State Country Commercial Guide

<http://www.buyusainfo.net/adsearch.cfm?search_type=int&loadnav=no>

*Other useful websites:*

The EU Online

<http://ec.europa.eu/index_en.htm>

European Commission

<http://ec.europa.eu/index_en.htm>

EU Press Room

<http://ec.europa.eu/press_room/index_en.htm>

The EU in the World

<http://ec.europa.eu/comm/world/>

EU Relations with the US

<http://ec.europa.eu/comm/external_relations/us/intro/index.htm>

DG Trade

<http://ec.europa.eu/trade/index_en.htm>

DG Enterprise

<http://ec.europa.eu/enterprise/index_en.htm>

EUR- Lex -- Portal to EU law

<http://ec.europa.eu/eur-lex/en/index.html>

Eurostat -- EU Statistics
<http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1090,30070682,1090_33076576&_dad=portal&_schema=PORTAL>

Summaries of EU Legislation -- SCAD PLUS

<http://ec.europa.eu/scadplus/scad_en.htm>

One Stop Internet Shop for Business

<http://ec.europa.eu/youreurope/index_en.html>

Euro Info Centers

<http://ec.europa.eu/enterprise/networks/eic/eic.html>

AmCham EU

<http://www.eucommittee.be/>

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch4 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

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

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

**Commercial Sectors**

-   [Education and Training Services](#education-and-training-services)

-   [Franchising](#franchising-fra)

-   [Laboratory and Scientific
    Instruments](#laboratory-and-scientific-instruments)

-   [Medical Equipment](#medical-equipment)

-   [Pollution Control Equipment](#leadinsector4)

-   [Renewable Energy Services](#renewable-energy-services)

-   [Telecommunication Equipment](#telecommunication-equipment)

> **Regional Programs**

-   [Showcase Europe](#showcase-europe)

## Franchising (FRA)

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

  ------------------------ -------------- ------------ -------------------
                           2004           2005         2006 (estimated)

  Total Market Size        3018           3371         3540

  Total Local Production   1238           1299         1364

  Total Exports            N/a            N/a          N/a

  Total Imports            N/a            N/a          N/a

  Imports from the U.S.    n/a            n/a          n/a
  ------------------------ -------------- ------------ -------------------

\*USD millions

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

-   Children's & Elderly Services

-   Business/Private Services

-   Environmental Products & Services

-   Educational Services

-   Entertainment

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

Franchising still is a best prospect for Portugal. The Portuguese are
very receptive to franchising and are still looking for new concepts.
Even though Portugal is a small market, 10.6 million people, franchising
as a business concept has not yet reached full maturity.

Services in general, are the "new needs" of Portuguese consumers. Even
though services have a large share of the market, 46 percent, it is not
yet fully developed. Of the 46 percent, business services have a share
of 16.9 percent and services to individuals a share of 29 percent.
Quality services are very important to Portuguese consumers; they are
willing to pay a higher price for quality. Portugal's second greatest
concentration of franchises is in the retail clothing area with 44.4
percent of the market share.

At present there are 429 franchisors operating in the market and the
number of franchised units is estimated at 9,830. Currently, Portuguese
franchisors represent 45 percent of the total franchise units in the
country, followed by Spain with 20 percent, the U.S. with 11 percent and
France with 7 percent.

There are no barriers for foreign-owned franchise companies in Portugal.
The open market mentality and credit access provide excellent
opportunities for companies to operate.

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

IF -- Instituto de Informação em Franchising, Lda.

(Franchise Institute)

Rua Bernardo Lima 48-4o.

1150-077 Lisbon

Tel.: (351) 21 033 4455

Fax: (351) 21 033 4411

[http://www.infofranchising.pt](http://www.infofranchising.pt/)

APF -- Associação Portuguesa de Franchise

(Portuguese Franchise Association)

Rua Viriato 25-3o. Dto.

1050-234 Lisboa

Tel.: (351) 21 319 2938

Fax: (351) 21 319 2939

[http://www.apfranchise.org](http://www.apfranchise.org/)

## Renewable Energy Services

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

Below are the GOP's current installed RES capabilities and its 2010
goals:

  --------------------------- --------------------- ---------------------
  Installed RES               2006 (MW)             2010 (MW)

                                                    

  Wind                        1,637                 3,750

  Small/Large Hydro           4,801                 5,400

  Biomass w/Cogeneration      12                    150

  Solid Waste                 88                    130

  Biogas                      8                     50

  Photovoltaic                3                     150

  Geothermal                  18                    30
  --------------------------- --------------------- ---------------------

DGGE -- Direcção Geral de Geologia e Energia

[http://www.dgge.pt](http://www.dgge.pt/)

The development and use of RE sources is gaining ground in Portugal. The
Government of Portugal (GOP) is now pushing into the area of renewable
energy, particularly wind and solar, to diversify its energy supply and
reduce its fuel dependency. Portugal is currently about 85 percent
dependent on imported fossil fuels (oil, natural gas and coal). By 2013
Portugal is expected to be the third largest producer of alternative
energy, following Denmark and Sweden.

The renewable energy industry covers companies that operate as
developers, equipment manufacturers, operators, utility and maintenance
companies. Some companies are active in more than one area and may
develop, operate and maintain the sites. U.S. firms should enter the
Portuguese market with partnerships, services and equipment supply.

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

Services:

-   Maintenance companies

-   Operators/developers

Products:

-   Wind turbines

-   Biomass generating technology including waste to energy

-   Photovoltaic modules

-   Inverters

-   Wind park cabling

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

U.S. technology and equipment providers, consultants, service providers
and other RE advocates are encouraged to touch base with the different
RE-focused groups and institutions to explore areas for collaboration.
This industry is very receptive to advances in technology, which
presents opportunities for entry via a collaborative research or
partnering approach with a local company. Obtaining up to date
information on market dynamics is very important, given the fast
developing nature of the industry and the continuing introduction of new
technologies.

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

Direcção Geral de Geologia e Energia -- DGGE

(Ministry of Economy and Innovation)

Av. 5 de Outubro 87

1069-039 Lisboa

Tel.: (351) 21 792 2700

Email: <energia@dge.pt>

[http://www.dgge.pt](http://www.dgge.pt/)

Adene -- Agencia para a Energia

(Agency for Energy)

Private Utility Institution

Estr. De Alfragide, Praceta 1, No. 47

2720-537 Amadora

Tel.: (351) 21 472 2800

Email: <info@adene.pt>

[http://www.adene.pt](http://www.adene.pt/)

REN -- Rede Electrica Nacional, SA

(Electrical Public Utility Company)

Av. Estados Unidos da America 55-12o.

1746-061 Lisbon

Tel.: (351) 21 001 300

Email: <comunicacao@ren.pt>

[http://www.ren.pt](http://www.ren.pt/)

## Medical Equipment

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

  ------------------------ -------------- ------------ -------------------
                           2004           2005         2006 (estimated)

  Total Market Size        582            663          714

  Total Local Production   148            150          168

  Total Exports            69             74           82

  Total Imports            503            560          628

  Imports from the U.S.    51             57           62
  ------------------------ -------------- ------------ -------------------

2004 Exchange rate: USD 1 = EUR 0.79

2005 Exchange rate: USD 1 = EUR 0.76

2004 and 2005 statistical data were provided by ICEP-Instituto do
Comércio Externo de Portugal (the Portuguese Foreign Commerce Institute)
and cover HS codes 9018, 9019, 9020, 9021 and 9027.

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

There is EU harmonized legislation governing the importation of medical
devices in Europe.  As in other EU countries, it is required that
medical devices imported from third countries being sold in Portugal
undergo an analysis test by an accredited entity in the EU.  If devices
pass this test, they are marked \"CE\" and may then move freely and be
sold in all countries throughout the EU.

The table below demonstrates U.S. exports to Portugal in 2003, 2004 and
2005 and an estimate of 7% increase for 2006. In 2005 the U.S. was the
third largest supplier to Portugal of HC 9022 which covers X-Ray
Apparatus; Tubes, Panels, Screen and related equipment. Germany and
Spain were the largest suppliers respectively.

  -------- -------------- ------------- ------------ ------- ----------------
  HS       2003           2004          2005         \% est. 2006 Estimate

  9002     206,626        243,819       229,817      7%      245,904

  9018     27,343,050     32,264,799    30,424,082   7%      32,553,874

  9019     5,459,060      6,441,691     6,071,767    7%      7,496,790

  9020     140,588        165,894       156,368      7%      167,313

  9021     5,751,690      6,786,994     6,397,241    7%      7,845,047

  9022     5,633,660      6,647,719     6,265,964    7%      7,704,581

  9025     297,728        351,319       331,144      7%      354,323

  9027     6,252,902      7,255,971     7,792,708    7%      8,441,535

  TOTAL    51,085,304     60,158,206    57,669,091           64,809,367
  -------- -------------- ------------- ------------ ------- ----------------

#### HS 90 total all merchandise exports to Portugal in thousands USD 

<http://tse.export.gov/NTDChartDisplay.aspx?UniqueURL=wmznqnznx1boa3555fq0biyo-2007-2-15-6-24-50>

#### HS- Harmonized Code Description

9002 Optical Elements, Mounted; Parts & Accessories

9018 Medical, Surgical, Dental or Vet Inst, No Elec, Pt

9019 Mech-Ther, Massage, Psych Test, Ozone App Etc, Pts

9020 Breathing Appliances & Gas Masks Nesoi; Parts Etc

9021 Orthopedic Appl; Artif Body Pts; Hear Aid; Pts Etc

9022 X-Ray Etc Apparatus; Tubes, Panels, Screen Etc, Pt

9025 Hydrometers, Thermometers, Pyrometers Etc; Pts Etc

9027 Inst Etc For Physical Etc Anal Etc; Microtome; Pts

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

The Portuguese economy experienced a difficult period. Despite the
implementation of restructuring programs, the health care sector
continues to be a priority.  Reform under the Portuguese government is
set to concentrate on opening the health sector to increased private
initiative and markedly reducing public expenditure. During the past
five years new hospitals were built and existing ones renovated.  New
hospitals will continue to be built and existing ones will be upgraded
and renovated until all European Union standards and requirements are
met.  The total investment for these hospitals is expected to be around
600 million Euros.  Financing will be granted by partnerships of private
and public entities and international public bids for the construction
will continue during 2006 and 2007. Separate reports on each hospital
are available on [http://www.export.gov](http://www.export.gov/).

 \
The Portuguese market for medical equipment, instruments and supplies
grows with the continuous demand for innovative instruments and
apparatus.  Public hospitals are the principal end-users of medical
equipment in Portugal, accounting for around 80 percent of the total
market. The Directorate General for Hospital Construction issues tenders
for equipment required for new hospitals. Public hospitals tend to be
relatively slow payers, taking an average of eight to nine months to
settle bills. Hospitals in the private sector normally use the direct
sales method and payment delays rarely occur. The appointment of a local
agent for the Portuguese market is essential. Although the U.S. is not
the number one supplier to Portugal, it continues to be perceived as a
preferential supplier of dependable top quality products. 

As the health care sector upgrades during the next three years, the
Portuguese market for medical equipment, instruments and supplies is
expected to grow at a steady rate of 7%.\
 \
Portugal has still not yet met all standard requirements imposed by the
EU.  The massive infusion of EU structural funds has promoted faster
economic growth in this sector compared to other sectors and compared to
other EU countries.  The continuing construction of new hospitals and
renovation and upgrading of existing ones has created an extraordinary
market demand for all types of medical equipment.

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

Statistical data for this report was obtained from:

INE - Instituto Nacional de Estatística:
[http://www.ine.pt](http://www.ine.pt/)

ICEP - Instituto do Comercio Externo de Portugal:
[http://ww.icep.pt](http://ww.icep.pt/)

2007 Worldwide Medical Equipment & Supplies Manufacturing Industry
Report can be obtained from Market Research.com:

<http://www.marketresearch.com/product/display.asp?productid=1432591&xs=r&SID=25235679-376320124-401547427&curr=USD&kw=&view=sta>

"The Medical Device Market: Portugal" is available from Piribo:

<http://www.piribo.com/publications/country/europe_west/portugal/medical_device_market_portugal.html>

## Pollution Control Equipment

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

  ------------------------ -------------- ------------ -------------------
                           2004           2005         2006 (estimated)

  Total Market Size        257            284          284

  Total Local Production   42             44           44

  Total Exports            21             22           22

  Total Imports            236            262          262

  Imports from the U.S.    18             21           21
  ------------------------ -------------- ------------ -------------------

As a member of the EU, Portugal is required to incorporate into its
environmental laws all the EU environmental directives issued by the
Community, including standards for water and air quality, and urban
solid waste treatment and recycling.

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

The best sales prospects for U.S. exporters include filtering and
purifying machinery and apparatuses, sensors and analyzers, recycling
equipment, and heavy metal collecting equipment.

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

Opportunities exist in environmental engineering and public utilities
services. Some areas that offer the best opportunities are:
environmental impact studies and assessments; hazardous waste;
privatization of water and waste water treatment; and privatization of
street cleaning, waste collection, separation, recycling, incineration
and operation of sanitary landfills and solid urban waste (SUW).

Over the next five to ten years, several billion dollars will be spent
on solutions to Portugal's environmental problems.

Municipalities are responsible for water supply, wastewater treatment
and urban solid waste management in the geographical areas under their
jurisdiction. Following EU strategies, the municipalities are
increasingly interested in privatization of environmental services. The
trend to privatize services has created a market for
engineering/consulting and environmental services companies in Portugal.
U.S. environmental service companies may be interested in making
specific joint-venture agreements with Portuguese companies to enter
this market.

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

Minister of the Environment, Territorial Planning and Regional
Development (MAOTDR)

<http://www.maotdr.gov.pt/>

Institute of Environment (IA)

<http://www.iambiente.pt/portal/page?_pageid=73,1&_dad=portal&_schema=PORTAL>

## Laboratory and Scientific Instruments

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

  ------------------------ -------------- ------------ -------------------
                           2004           2005         2006 (estimated)

  Total Market Size        131            176          198

  Total Local Production   4              5            7

  Total Exports            3              4            5

  Total Imports            130            175          196

  Imports from the U.S.    24             27           31
  ------------------------ -------------- ------------ -------------------

The market for Laboratory and Scientific Instruments is supported by
healthy growth in the pharmaceutical, food processing and biotechnology
industries. Analytical instruments usage is rising rapidly in many
areas, including pollution monitoring and industrial quality control. In
addition private testing laboratories, including drug analysis, offer a
growing market. On-line analytical instruments are penetrating the
traditional process control market as customers require faster and more
accurate data to improve control of product processes for better quality
and less waste. Accordingly, there will be an increasing market for U.S.
analytical instruments.

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

The best sales prospects for U.S. exporters include gas or smoke
analysis apparatus, chromatographs, spectrometers and chemical analysis
instruments.

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

American analytical instruments enjoy a reputation of being innovative
and of high quality. U.S. suppliers will continue to face strong
competition from the EU, even though they should maintain a good
position in the market as software becomes a more important factor in
the performance of equipment.

Control of AIDS has become a major concern for the Portuguese health
authorities. The various public health care institutions represent a
good market for laboratory analytical and scientific apparatus. New and
stricter environmental policies will force most manufacturing industries
to thoroughly analyze not only their products but also their other
outputs, residues and by-products. The Portuguese Government has
released new and stringent air emission standards and waste water
effluent discharge standards which were put into effect for all
newly-established factories and will need to be put into effect by
existing factories during the next few years. In addition to
environmental equipment, new quality control measures in the food
industry require sophisticated production-line testing equipment.

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

Ministry of Health (MS)\
<http://www.min-saude.pt/portal>

## Telecommunication Equipment

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

  ------------------------ -------------- ------------ -------------------
                           2004           2005         2006 (estimated)

  Total Market Size        3806           4118         4261

  Total Local Production   1575           1740         1771

  Total Exports            141            142          141

  Total Imports            2231           2446         2601

  Imports from the U.S.    276            333          387
  ------------------------ -------------- ------------ -------------------

(Exchange Rate (2004): 1US\$ = 0.75 Euros)

Data transmission services are fully liberalized in Portugal. Mobile
telephone service was privatized in 2000 and fixed line telephone
service at the beginning of 2001. Portugal Telecom, the former
Government telecommunications monopoly and the largest market player,
became a private entity. After the full liberalization of the Portuguese
telecommunications sector, most of the new fixed operators are now out
of business and Portugal Telecom controls 92 percent of the market.

New private operators blame the failure to privatize the fixed net on
GOP mismanagement, especially regarding the lack of access to the local
loop, the last link in the fixed telecommunications net that permits
access to the final customer. Some of these operators have suggested
mergers to create new companies, which could compete with Portugal
Telecom in the fixed telecommunications business. Many experts feel that
only one strong competitor can exist with Portugal Telecom in this small
market of 10.6 million people.

Nevertheless, one of the major economic Portuguese groups, SONAE, is
trying to buy part of the capital of PT having done a public offer for
acquisition at the end of 2006. The process, started in the last quarter
of 2006, is now under the supervision of the national authority for the
competition that is studying the legitimacy of this act. The GOP
announced that if the process continues, SONAE will have to sell the
mobile phone license attributed four years ago to Optimus (SONAE's
mobile operator) in order to reduce the possibility of a monopoly
resulting from the merger with TMN, the mobile operator that belongs to
PT.

Besides the war for the ownership of the fixed operator, the Portuguese
mobile telephone market keeps growing. In 2005, revenues generated by
the three major Portuguese operators were over four billion dollars.
Actual mobile phone market penetration is over 98 percent of the
population (roughly 10 million people).

In 2001, Portugal also inaugurated the most ambitious and innovative
television project on an international level. TV Cabo, part of Portugal
Telecom, and the major television operator in Portugal, partnered with
Microsoft Corporation to launch digital interactive TV. This
revolutionary technology, which Microsoft is piloting in Portugal,
permits home TV shopping, home banking, TV Internet navigation, and even
access to one's home utilities via remote Internet.

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

-   Automatic answering machines

-   Call blocking devices

-   Paging, call forwarding, messaging, and voice mail

-   Alarm receivers and transmitters

-   Electronic banking networks

-   Broadband ISDN voice data and image transmission

-   Software/hardware to upgrade customer billing and assistance
    services

-   Submarine fiber optic cable

-   Cable TV and decoding systems

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

The telecommunications market in Portugal is expected to continue to
grow. Imports constitute 61% of the total market and the U.S. real share
is much higher than the 9% reported because most U.S. exports to
Portugal often come through other European Union countries. There are
many opportunities for American companies to expand their business in
this area.

The most promising sub-sectors within the industry and corresponding
market size are:

-   Cellular terminals

-   Switching equipment

-   Fixed terminals

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

Import and export statistics for 2005 were provided by INE (Instituto
Nacional de Estatística) and ICEP (Instituto do Comércio Externo de
Portugal), the Portuguese National Statistics Institute and the Foreign
Commerce Institute, respectively. All other statistics are unofficial
estimates.

Instituto Nacional de Estatística\
[http://www.ine.pt](http://www.ine.pt/)

ANACOM -- Autoridade Nacional de Comunicões

<http://www.icp.pt/>

ICEP -- Instituto do Comércio Externo

<http://www.icep.pt/>

## Education and Training Services

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

The Portuguese government is very focused on restructuring some key
areas in education. This will require the development of new forms of
learning support, and new modules of education including training
delivery at places, times and in ways convenient and appropriate to
learners. The government is responsible for the definition of general
norms concerning pre-school education in relation to its organizational,
pedagogical and technical components. Government policy and recent
legislation continue to encourage debate on SEN/disability (Special
Needs Education) issues.

The need to improve quality at higher education institutions is very
important to the government. Improving research and innovation is a key
strategic objective. The target is to double the GERD (Gross Domestic
Expenditure on Research and Development) financed by the Government and
to triple the BERD (Business Enterprise Expenditure on Research and
Development) /GDP ratio.

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

-   Early Childhood Educational Materials

-   Special Education Needs

The Portuguese expression for Special Educational Needs is Necessidades
Educativas Especiais (NEE). Special needs pupils are defined as those
needing special resources and individualized curricula. In Portugal,
special needs teaching is integrated within mainstream schools. Pupils
are only referred to specialist schools if they appear not to be able to
reach their individual educational goals.

Attention is being given to children with special educational needs,
before they enter compulsory school, including: a) Children with
disabilities: In Portugal, there is growing inclusion of children with
disabilities in all branches of education; b) Children living in
poverty: Child poverty rates have reached 15.6%; c) Ethnic and bilingual
children: There are sizeable immigrant minorities, centered especially
around Lisbon, Setúbal and Oporto. The High Commission has sponsored
several social integration programs with an educational component for
ethnic minorities. Children at risk are given priority entrance into
some services. Recent legislation has called attention to these children
and provides for early intervention strategies to meet their needs.

-   Technology specialization programs for post-secondary education

-   Life-long learning programs

-   On-the job training

-   Executive education

-   International strategic alliances with institutions of higher
    learning

Educators and trainers in Portugal are realizing the need for
flexibility in offerings to non-traditional students who are not able to
stop working to take day courses and for those seeking additional
educational opportunities for work or non-work related interests. Though
in its infancy the Portuguese are beginning to tap on-line training to
maintain competitiveness or just for personal growth. Degree programs
are still overwhelmingly teacher and students in classrooms, though
student research is done on the Internet. American companies wishing to
promote e-learning will do well to translate at least
introductory/search information on websites into Portuguese so their
products or services can be more easily found. U.S.-based educational
institutions seeking to attract Portuguese students to study may need to
adapt or explain some administrative processes such as registration for
classes, payment, housing, language testing, etc.

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

Opportunities for education and training services include on-line
courses, on-the-job training and establishing alliances with public
educational institutions.

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

Direcção Geral do Ensino Superior

<http://www.dges.mctes.pt/DGES>

Secretaria-Geral do Ministério da Ciência, Tecnologia e Ensino Superior

[http://www.sec-geral.mctes.pt](http://www.sec-geral.mctes.pt/)

Observatório da Ciência, Tecnologia e Ensino Superior

[http://www.oces.mctes.pt](http://www.oces.mctes.pt/)

#### Schools for the partially sighted

-   Centro Helen Keller\
    <http://www.centrohelenkeller.pt/>

-   Centro de Acolhimento de Loreto\
    At: Bairro de Loreto, 3020-426 Coimbra\
    Tel.: 239 497 270

#### Schools for children with developmental disabilities

-   Centre for Children with Developmental Disabilities (*Centro de
    Apoio ao Desenvolvimento Infantil -* CADIn)\
    <http://www.cadin.net/>

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

To find out more about the leading agricultural sectors for U.S. Exports
and Investment in Portugal, please contact the Foreign Agricultural
Service at the American Embassy in Madrid.

Portugal is covered by the Madrid Office of Agricultural Affairs:
<http://www.fas.usda.gov/scriptsw/fasfield/ovs_directory_result.asp?posts=620>

American Embassy Madrid - Foreign Agricultural Service (Spain and
Portugal)

<http://madrid.usembassy.gov/fas/indexen.html>

## Showcase Europe

Showcase Europe provides U.S. exporters a broad perspective on Europe.
Organized around eight key sectors with the greatest market potential
for U.S. exporters, Showcase Europe provides a framework for
coordination and cooperation among the U.S. Department of Commerce\'s
U.S. Commercial Service offices throughout Europe. Sectors include
aerospace, automotive, energy/power generation, environmental
technologies, information and communication technologies, medical and
pharmaceutical, safety/security, and travel and tourism.

In addition, the Quicktake Program provides an overview of market
potential for a U.S. company\'s products from market specialists across
Europe. Surveys cover current and future demand, competition, and
suggested next steps.

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

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

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch5 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

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

-   [Trade Barriers](#trade-barriers-return-to-top)

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

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

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

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

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

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

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

-   [Trade Agreements](#trade-agreements-return-to-top)

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

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

Member states of the European Union have established a Community
Integrated Tariff (TARIC) system, where duties are applied to imports
from non-EU countries. TARIC was established by the 1958 Treaty of Rome
as part of the European Economic Community (EEC). The Uruguay Round has
reinforced the Single Market program. There are combined bilateral,
regional, and multilateral policies.

Duties on imports from non-EU countries, including the United States,
are levied on an ad valorem basis. Most raw materials enter duty-free or
at low rates, most manufactured goods are subject to rates between 5 and
17 percent. The minimum tariff schedule is applied to goods originating
in countries entitled to the benefits of most-favored nation treatment
(members of the General Agreement on Tariffs and Trade (GATT) and
countries with which the EU has signed trade agreements). Most
agricultural product imports are covered by the Common Agricultural
Policy (CAP), subjecting many items to varied levies designed to
equalize the prices of imported commodities with those produced in the
EU. Agricultural products are strictly regulated based on EU standards.
Special tariffs exist for tobacco, alcoholic beverages, petroleum and
automotive vehicles. Please note that importers must pay the value-added
tax (IVA), which ranges up to 19% in full at the time of importation
from a non-EU country. Imports from EU countries only pay the IVA when a
product is sold. This detail encourages many distributors to import
indirectly from the U.S. via other E.U. countries.

## Trade Barriers [**Return to top**](#ch5)

The Office of the United State Trade Representative (USTR) publishes an
annual report on significant foreign trade barriers known as the
National Trade Estimate (NTE) Report. The NTE is an inventory of the
most important foreign barriers affecting U.S. exports of goods and
services, foreign direct investment by U.S. persons, and protection of
intellectual property rights. The report also provides a valuable tool
in enforcing U.S. trade laws, with the goal of expanding global trade,
which benefits all nations, and U.S. producers and consumers in
particular. Use the below link to see the 2006 NTE report for the
European Union, which also includes Portugal:

2006 National Trade Estimate Report:

<http://www.ustr.gov/Document_Library/Reports_Publications/2006/2006_NTE_Report/Section_Index.html>

Other National Trade Estimate Reports:

[http://www.ustr.gov](http://www.ustr.gov/)

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

Products originating in EU countries enjoy liberal import procedures.
For products originating in countries other than EU member states or
participants in the World Trade Organization (WTO), and for a limited
number of products considered to be sensitive, a specific import/export
license may be required. Food products need a certificate of health;
electric materials and construction equipment/machinery need a
certificate of conformity to EU directives; alcoholic beverages and
tobacco need a certificate of authenticity. Otherwise, the following
documents are required to import into Portugal:\
\
Shipping Documents - - The documents generally required by Portugal on
all sea and air shipments from the United States include the commercial
invoice, the bill of lading or air waybill, and a certificate of origin.

Commercial Invoice - Portuguese Customs requires two copies of
commercial invoices, but at least one additional copy should be provided
to the importer. The invoice should indicate the country of origin of
each product. If the invoices are intended to certify the origin of the
goods, they must have a certification by a Chamber of Commerce (or by
U.S. Customs or port authorities). In cases involving commodities that
have undergone industrial transformation not representing full process
of manufacturing in the country of origin, or which have passed through
free port or zones, the respective commercial invoice shall bear
notation issued by the Portuguese Consulate having jurisdiction in that
area. No special form of commercial invoice is prescribed and the
firm\'s letterhead may be used.

The invoice should contain the following details:

-   Names and addresses of seller and buyer;

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-   Place and date the invoice was prepared;

-   Method of shipment;

-   Number, kind and markings of the packages and their numerical order;

-   Exact description of the goods-customary commercial description
    according to kind, quality, grade, etc., with special emphasis on
    factors increasing or decreasing their value;

-   Quantity of goods, expressed in units customary in international
    trade;

-   Agreed price of the goods (unit cost, total cost, including shipping
    and insurance charges, as well as other expenses charged to the
    costs of the goods);

-   Delivery and payment terms

Although not a requirement, it is advisable to have the signature of a
responsible official of the exporting firm on each invoice.

Bill of Lading or Air Waybill - - This is a contract between the owner
of the goods and the carrier. Either a straight or negotiable bill of
lading is acceptable. No consular formalities are required. Two copies
of the document used in Portuguese or English are required.

Certificate of Origin - - This document certifies that the goods
entering Portuguese territory are made in the United States, and thus
are subject to the duties, taxes and restrictions that apply to U.S.
goods. Although certificates of origin are not expressly required for
all imports into Portugal, they are strongly recommended. If a
certificate of origin does not accompany a shipment, it may be held up
by customs. Portuguese authorities accept certificates of origin
certified by authorized U.S. Chambers of Commerce or a Portuguese
Consulate.

Other Documents - - Information on documents required for exportation to
Portugal of agricultural products (including food items) as well as
plants and animals are available in the Foreign Agricultural Service of
the Department of Agriculture. Owing to the complexities of these
regulations, U.S. exporters should also obtain information directly from
the importer prior to shipment.

Applications for import licenses should be submitted to the General
Directorate of External Commerce. For information on duties, taxes, and
documentation, contact one of the following two offices:

Office of European Community Affairs

U.S. Department of Commerce

14th & Constitution, Rm. 3314

Washington, D.C. 20230

Tel.: (202) 482-5276

Fax: (202) 482-2897

Email: [tic@N0SPAM.ita.doc.gov](mailto:tic@ita.doc.gov)

Web Site: [http://www.ita.doc.gov](http://www.ita.doc.gov/)

DGAIEC

Rua da Alfandega, 5 -- r/c

1149-006 LISBON, PORTUGAL

Tel.: (351) 218 813 700

E-mail: <dgaiec@dgaiec.min-financas.pt>

Web Site:
[http://www.dgaiec.min-financas.pt](http://www.dgaiec.min-financas.pt/)

European Union Regulations

*Import Licenses*

The Integrated Tariff of the Community, referred to as TARIC (acronym
for \"Tarif Intégré de la Communauté\"), is designed to show various
rules applying to specific products being imported into the customs
territory of the EU or, in some cases, when exported from it. To
determine if a license is required for a particular product, check the
TARIC.

The TARIC can be searched by country of origin, Harmonized System (HS)
Code, and product description on the interactive website of the
Directorate-General for Taxation and the Customs Union. The TARIC is
updated annually.

It is important to note that the World Customs Organization has released
the third update in more than 20 years to the HS Code. There are major
production classification revisions to chapters 84 and 85. This affects
not just the EU, but all 121 contracting parties to the HS starting
January 2007.

In addition, many EU Member States maintain their own list of goods
subject to import licensing. For example, Germany\'s \"Import List\"
(Einfuhrliste) includes goods for which licenses are required, their
code numbers, any applicable restrictions, and the agency that will
issue the relevant license. The Import List also indicates whether the
license is required under German or EU law. For information relevant to
Member State import licenses, please consult the relevant Member State
Country Commercial Guide.

[http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm](http://ec.europa.eu/comm/taxation_customs/common/databases/taric/index_en.htm)

*Import Documentation*

####### Non-agricultural Documentation

The official model for written declarations to customs under \"Normal
Procedure\" is the Single Administrative Document (SAD). European Free
Trade Association (EFTA) countries including Norway, Iceland,
Switzerland, and Liechtenstein also use the SAD. However, other forms
may be used for this purpose. Information on import/export forms is
contained in Title VII, of Council Regulation (EEC) No. 2454/93, which
lays down provisions for the implementation of Council Regulation (EEC)
No. 2913/92 establishing the Community Customs Code (Articles 205
through 221). Articles 222 through 224 provide for computerized customs
declarations and Articles 225 through 229 provide for oral declarations.

Additional information on import/export documentation can be found in
Title III, of Council Regulation (EEC) No. 2913/92 of October 12, 1992,
establishing the Community Customs Code (Articles 37 through 57).

Goods brought into the customs territory of the Community are, from the
time of their entry, subject to customs supervision until customs
formalities are completed.

Goods presented to customs are covered by a summary declaration, which
is lodged once the goods have been presented to customs. The customs
authorities may, however, allow a period for lodging the declaration,
which cannot be extended beyond the first working day following the day
on which the goods are presented to customs. The summary declaration can
be made on a form corresponding to the model prescribed by the customs
authorities. However, the customs authorities may permit the use, as a
summary declaration, of any commercial or official document that
contains the particulars necessary for identification of the goods. It
is encouraged that the summary declaration be made in computerized form.

The summary declaration is to be lodged by:

-   the person who brought the goods into the customs territory of the
    Community or by any person who assumes responsibility for carriage
    of the goods following such entry; or

-   the person in whose name the person referred to above acted.

Non-EU goods presented to customs must be assigned a customs-approved
treatment or use authorized for such non-Community goods. Where goods
are covered by a summary declaration, the formalities for them to be
assigned a customs-approved treatment or use must be carried out:

-   45 days from the date on which the summary declaration is lodged in
    the case of goods carried by sea;

-   20 days from the date on which the summary declaration is lodged in
    the case of goods carried other than by sea.

Where circumstances so warrant, the customs authorities may set a
shorter period or authorize an extension of the period.

######## Batteries

New EU battery rules came into force on 26 September 2006 following the
publication of the Directive on batteries and accumulators and waste
batteries and accumulators (Directive 2006/66) in the EU Official
Journal. This new Directive replaces the original Battery Directive of
1991 (Directive 91/157). The new Directive applies to all batteries and
accumulators put on the EU market including automotive, industrial and
portable batteries. It aims to protect the environment by restricting
the sale of batteries and accumulators that contain mercury or cadmium
(with an exemption for emergency and alarm systems, medical equipment
and cordless power tools) and by promoting a high level of collection
and recycling. It places the responsibility on producers to finance the
costs associated with the collection, treatment, and recycling of used
batteries and accumulators. The Directive also includes provisions on
the labeling of batteries and their removability from equipment. EU
Member States must implement the EU Directive into their national law by
September 26, 2008. For more information, see our market research
report: <http://www.buyusainfo.net/docs/x_8086174.pdf>

######## REACH

REACH is a major reform of EU chemicals policy, proposed by the European
Commission in October 2003 and likely to be adopted at EU level in
December 2006. REACH would then become national law in the 27 EU Member
States in Spring 2007. REACH stands for the \"Registration, Evaluation
and Authorization of Chemicals\". REACH will require 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>

######## WEEE & RoHS

EU rules on waste electrical and electronic equipment (WEEE), while not
requiring specific customs or import paperwork, may require U.S.
exporters to register the products with a national WEEE authority, or
arrange for this to be done by a local partner. Similarly, related rules
for EEE restricting the use of the hazardous substances (RoHS) lead,
cadmium, mercury, hexavalent chromium, PBBs, and PBDEs, do not entail
customs or importation paperwork. However, U.S. exporters may be asked
by a European RoHS enforcement authority or by a customer to provide
evidence of due diligence in compliance with the substance bans on a
case-by-case basis. U.S. exporters seeking more information on WEEE and
RoHS Regulations should visit:
<http://www.buyusa.gov/europeanunion/weee.html>

*Agricultural Documentation*

Phytosanitary Certificates: Phytosanitary certificates are required for
most fresh fruits, vegetables, and other plant materials.

Sanitary Certificates: For commodities composed of animal products or
by-products, EU countries require that shipments be accompanied by a
certificate issued by the competent authority of the exporting country.
Up-to-date information on harmonized import requirements can be found at
the following website:

<http://www.useu.be/agri/certification.html>.

Sanitary Certificates (Fisheries): Since April 2006, the EU has accepted
the U.S. seafood inspection system as equivalent to the European one.
Consequently, a specific public health certificate must accompany U.S.
seafood shipments.

Since May 1, 2004, aquaculture products coming from the United States
are subject to specific animal health legislation, i.e. Regulations
2003/804/EC and 2003/858/EC amended by Decision 2006/767/EC of November
20, 2006.

A new EU Hygiene law has been in force since January 1, 2006. This new
set of Regulations aims to simplifying existing rules and at
guaranteeing safer food. To facilitate the implementation of the revised
rules, the Commission recently published implementing measures and
transitional arrangements that are also effective as of January 1, 2006.
These guidelines can be found below:

-   [Commission Regulation
    2073/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00010026.pdf)

-   [Commission Regulation
    2074/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00270059.pdf)

-   [Commission Regulation
    2076/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00830088.pdf)

From May 1, 2007, a second set of new hygiene laws will be in place.
They will greatly modify import requirements for animal and animal
products.

For detailed information on import documentation for seafood, please see
the following web sites:

<http://www.nmfs.noaa.gov/ocs/tradecommercial>

<http://www.cfsan.fda.gov/>.

<http://madrid.usembassy.gov/fas/indexen.html>

## U.S. Export Controls [**Return to top**](#ch5)

Since May 1988 Portugal has adopted EU directives regarding exportation.
Presently, Portuguese exporters need to obtain an export declaration
(this is a simplified procedure generally handled by a customs house
broker) before they ship their merchandise. The export declaration is
used for Portuguese Customs purposes but one copy should stay together
with other export documentation.

In principle, the export declaration cannot be obtained without a
receipt of deposit confirming that the merchandise is physically
deposited in a customs area or an export warehouse. Export warehouses
facilitate the process of exporting by issuing export declarations as
soon as the exporter informs the Customs authorities that the
merchandise is available, and by making said merchandise available for
Customs inspection.

Portuguese Customs regulations adopted a system of simplified export
proceedings. This allows authorized exporters, exporters of perishables
and express mail operators to export merchandise directly from their
establishments. They are only required to present a Commercial Invoice
to the Customs Authorities.

Portugal cooperates with its trading partners, including the U.S., to
control the export of products and technologies with potential defense
applications. There are no other restrictions or regulations on the
export of merchandise from Portugal, with the exception of strategic
products (including arms and dual-use technologies) and antiques. Before
exporting these latter items, special licenses must be obtained from
customs officials to ensure that the objects being exported are not a
part of the national heritage of Portugal.\
\
For exports from the U.S., information on U.S. export controls is
available from:\
\
Bureau of Industry and Security

U.S. Department of Commerce

Washington, DC 20230

Tel.: (202) 482-4811; For overseas companies: Tel.: (202) 482-2547

Fax :(202) 482-3617; Email: <bxa@doc.gov>

[http://www.bxa.doc.gov](http://www.bxa.doc.gov/)

Defense Trade Controls\
Bureau of Political Military Affairs\
U.S. Department of State\
Washington, DC 20522-0112\
Tel.: (202) 663-2700\
Fax: (202) 261-8264\
[http://www.pmdtc.org](http://www.pmdtc.org/)

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

Foreign goods may enter Portuguese territory under temporary duty-free
admission. Temporary entry can be allowed for goods in transit, for
manufacturing, for temporary storage in bonded warehouses or for
temporary importation. Generally, temporary entry of goods requires the
deposit of a guarantee for import duties and VAT.

However, in some cases, exemptions and partial guaranties can be made.
In transit merchandise can be entered without guarantee by residents of
the EU who make regular entries or a carnet TIR, carnet ATA or a NATO
302 form may be used. Guaranties are reimbursed when the merchandise
leaves the territory of the EU. Professional materials, merchandise to
be presented in exhibitions, teaching materials, and other materials can
be temporarily imported duty-free under a carnet ATA. Temporary
importation allows the merchandise to stay in the EU territory as
foreign merchandise for a period of 24 months.

Samples and Carnets: Samples with no intended commercial value enter
Portugal free of duties and taxes. When sending such samples parcel
post, the sender must specify what types of samples are being shipped.
\"No commercial value\" should be written on the appropriate shipping
documents.

In order for samples of commercial value to enter Portugal duty- and
tax-free, a bond or deposit of the total amount of duties and taxes must
be arranged. Samples must be re-exported within one year if the deposit
is to be recouped. An alternative to placing such a deposit is applying
for an ATA Carnet.

ATA Carnet: An ATA carnet is a special international customs document
designed to simplify and streamline customs entry procedures for
merchandise into participating countries for up to one year. The
initials \"ATA\" are an abbreviation of the Portuguese and English words
\"Admissão Temporária/Temporary Admission.\" Customs authorities in the
United States and Portugal accept carnets as a guarantee that all
customs duties and taxes will be paid if any of the items covered by the
carnet are not re-exported within the time period allowed. Carnets may
be used for commercial samples, professional equipment, and goods
destined for exhibitions and fairs.

To inquire about or apply for an ATA Carnet, contact the U.S. Council
for International Business:\
\
\
USCIB\
1212 Avenue of the Americas

New York, NY 10036

Tel.: (212) 354-4480

Fax: (212) 575-0327

Email: [info@N0SPAM.uscib.org](mailto:info@uscib.org)

[http://www.uscib.org](http://www.uscib.org/)

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

U.S. firms entering the Portuguese market are strongly advised to
examine EU as well as Portuguese laws. Each European Union country is
integrating the rulings of the EU into its national legislation. As much
legislation regarding labeling is still in the developmental stage, EU
labeling regulations and standards need to be carefully monitored.

There may be special requirements for some products such as
pharmaceuticals, detergents, tobacco, fertilizers, alcoholic beverages
and foodstuffs containing preservatives and colorings. There are also
special requirements for the packaging and labeling of dangerous or
toxic products.

Jewelry and other articles of gold, silver or platinum must be assayed
and hallmarked in Portugal by the assayer's office in Lisbon or Porto.
The importation of these articles is limited to those firms or persons
registered in the assayer's office.

Manufacturers should be mindful that, in addition to the EU's mandatory
and voluntary schemes, Portuguese voluntary labeling schemes might still
apply. These schemes may be highly appreciated by consumers, and thus,
become unavoidable for marketing purposes. Labeling in Portugal serves
an increasingly informational and even promotional role. Labels often
act as \"silent salespeople,\" especially due to the recent growth of
large retail stores offering little sales assistance.

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 the
language of the country of consumption.

Basic Labeling Requirements:

Though many labeling regulations are sector-related, the following
information is generally required for all categories of products:

Origin: All imported products sold directly to the public must be marked
with the label "Fabricado em" which is the Portuguese translation of
"Made in".

Language: Labels must be written in Portuguese. Portuguese or
international law must have authorized any foreign words or
abbreviations. The writing must be clear and non-promotional.\
\
Brand Names/Trademarks: Any name symbols and marks relating to the
product must be found on the exterior of the packaging, the product
label, and the bottle-top or lid, as the case applies. The manufacturer
can only use registered brand names and trademarks.\
\
Composition: All ingredients or materials constituting the product must
be listed.\
\
Usage Instructions: Explain how the product is to be used.

Required Dates: These include the consumption limit for perishable
items, and recommended \"use by\" date for pre-packaged and frozen food
products.

An overview of EU mandatory and voluntary labeling and marking
requirements has been compiled in a market research report that is
available on:

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

This subject has been also been covered in the section about standards
(see below).

## Prohibited and Restricted Imports [**Return to top**](#ch5)

As an EU country Portugal follows the EU Customs Code. Some products
might be subject to strict controls such as strategic products,
wildlife, hazardous articles, non-sport firearms and ammunition, etc.

While not traditionally considered a \"closed market,\" certain
regulations exist in both Portugal and the EU, which limit the market
access for specific U.S. agricultural exports.\
For more information on trade restrictions, food standards and
regulations, please refer to Food and Agricultural Import Regulation and
Standards Report (FAIRS) available on the Internet website:
[http://www.fas.usda.gov](http://www.fas.usda.gov/)

The TARIC is designed to show various rules applying to specific
products being imported into the customs territory of the EU or, in some
cases, when exported from it. To determine if a product is prohibited or
subject to restriction, check column five of the TARIC for that product
for the following codes:

CITES Convention on International Trade of Endangered Species

PROHI Import Suspension

RSTR Import Restriction

For information on how to access the TARIC, see the Import Requirements
and Documentation Section above.

[http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm](http://europa.eu.int/comm/taxation_customs/common/databases/taric/index_en.htm)

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

Regulation 648/2005 is the "Security Amendment" to the Customs Code
(Regulation 2913/92) and outlines the implementing provisions for
Authorized Economic Operators, risk management procedures, pre-departure
declarations, and improved export controls.

Tariffs and Import Taxes: Information on customs valuation is contained
in Title II, Chapter Three, of Council Regulation (EEC) 2913/92,
establishing the Community Customs Code, titled, \"Value of Goods for
Customs Purposes\" (Articles 28 through 36). The primary basis for
determining customs value set out in Articles 29 is:

\"\... the transaction value, that is, the price actually paid or
payable for the goods when sold for export to the customs territory of
the Community\...\"

Article 29 lists the following conditions, which must be met in
determining customs value:

-   There are no restrictions as to the disposal or use of the goods by
    the buyer, other than restrictions which are imposed or required by
    a law or by the public authorities in the community, limit the
    geographical area in which the goods may be resold, or do not
    substantially affect the value of the goods;

-   The sale or price is not subject to some conditional consideration
    for which a value cannot be determined with respect to the goods
    being valued;

-   No part of the proceeds of any subsequent resale disposal or use of
    the goods by the buyer will accrue directly or indirectly to the
    seller, unless an appropriate adjustment can be made in accordance
    with Article 32; and

-   The buyer and seller are not related, or, where the buyer and seller
    are related, that the transaction value is acceptable for customs
    purposes.

The \"price actually paid or payable\" in Article 29 refers to the price
for the imported goods. Thus the flow of dividends or other payments
from the buyer to the seller that do not relate to the imported goods
are not part of the customs value.

Articles 32 and 33 provide for adjustments to the value for customs
purposes. Article 32 lists charges that are added to the customs value,
such as, commissions and brokerage, costs of containers, packing,
royalties and license fees, and the value of goods and services supplied
directly or indirectly by the buyer in connection with the production
and sale for export of the imported goods. Article 33 lists charges that
are not included in the customs value, such as, charges for transport,
charges incurred after importation, charges for interest under a
financing arrangement for the purchase of the goods, charges for the
right to reproduce imported goods in the Community, and buying
commissions.

Effective July 1, 1995, the Commission amended Article 147(1) of
Regulation 2454/93 of the Customs Code which affects valuation in the
case of successive sales. This amendment \"defaults\" valuation to the
last sale, but allows the value of an earlier sale if it can be
demonstrated that such a sale took place for export to the EU. The
evidentiary requirements to support the bona fides of any earlier sales
will be based upon commercial documents such as purchase orders, sales
contracts, commercial invoices, and shipping documents.

[http://ec.europa.eu/taxation_customs/customs/index_en.htm](http://europa.eu.int/comm/taxation_customs/customs/customs.htm)

For contact information at national customs authorities, please visit:

DGAIEC

Rua da Alfandega, 5 -- r/c

1149-006 LISBON, PORTUGAL

Tel.: (351) 218-813-700

E-mail: <dgaiec@dgaiec.min-financas.pt>

[http://www.dgaiec.min-financas.pt](http://www.dgaiec.min-financas.pt/)

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

-   [Overview](#overview-return-to-top-7)

-   [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)

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

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

Products tested and certified in the United States to American standards
are likely to have to be retested and re-certified to 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 General Product Safety Directive as well as to possible
additional national requirements.

European Union standards created under the New Approach are harmonized
across the 25 EU Member States and European Economic Area countries 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 function as barriers to trade if U.S.
standards are different from those of the European Union.

The European Union is currently undertaking a major revision of the New
Approach, which will enhance some aspects, especially in the areas of
market surveillance. To follow the revision, please visit:

<http://ec.europa.eu/enterprise/newapproach/review_en.htm>

Portugal uses NP EN ISO 9000 standards, which are equivalent to ISO 9000
standards. American exporters must demonstrate through a certifying
entity that the products offered meet equivalent quality standards.

Product "MARK" Required for U.S. Exports to Europe: The "CE" mark is now
mandatory for a wide range of products sold in the European Union. The
letters "CE" indicate that the manufacturer has undertaken all
assessments procedures required for the product. The "CE" mark is not a
quality mark and does not indicate conformity to a standard, rather it
indicates conformity to the legal requirements of the EU.

U.S. exporters should note that all goods entering Portugal should
conform to European Union standards. Although one of the goals of the
European Union is to harmonize standards across the EU member states,
many of these EU standards remain in the developmental stage. Where a EU
standard does not currently exist, Portuguese standards apply.

Agricultural Standards

The establishment of harmonized EU rules and standards in the food
sector has been ongoing for several decades, but it took until January
2002 for the publication of a general food law establishing the general
principles of EU food law. This Regulation introduced mandatory
traceability throughout the feed and food chain as of Jan 1, 2005. For
specific information on agricultural standards, please refer to the
Foreign Agricultural Service's website at:
<http://useu.usmission.gov/agri/>

###  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 Electro-technical Standardization

(<http://www.cenelec.org/Cenelec/Homepage.htm>)

ETSI, European Telecommunications Standards Institute\
(<http://www.etsi.org/>)

CEN, European Committee for Standardization, handling all other
standards

(<http://www.cen.eu/cenorm/index.htm>)

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\"
that monitor and participate in ongoing European standardization. CEN
and CENELEC standards are sold by the individual Member States'
standards bodies. 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 European Commission 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. The Commission 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. In the last year, the Commission began listing their
mandates on line and they can be seen at
<http://ec.europa.eu/enterprise/standards_policy/mandates/>. All the EU
harmonized standards, which provide the basis for CE marking, can be
found on:

<http://www.newapproach.org/>.

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 are
hopeful of becoming full members in the future) such as Albania,
Bulgaria, Croatia, FYR of Macedonia, and Turkey. Another category,
called \"partner standardization bodies\" includes the standards
organizations of Bosnia and Herzegovina, Egypt, Serbia and Montenegro,
Russia, Tunisia, the Ukraine and Australia, 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 extensive technical assistance
program, which is aimed at exporting EU standards and technical
Regulations to developing countries, especially in the Mediterranean and
Balkan countries, Africa, as well as smaller programs for China and
Latin America.

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 adapt more quickly 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 Regulations,
expectations are that they will eventually serve as the basis for
EU-wide standards.

<http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp>.

The Portuguese Institute for Quality is the Portuguese authority in
charge of coordinating the establishment of standards for the Portuguese
market in full compliance with European Union standards. Copies of the
most up-to-date standards can be obtained directly from IPQ.

Instituto Português de Qualidade (IPQ)

(Portuguese Institute for Quality)

Rua Antonio Giao, 2

2829-513 CAPARICA, PORTUGAL

Tel.: (351) 212 948 100

Fax: (351) 212 948 260

E-mail: <encomenda@mail.ipq.pt>

[http://www.ipq.pt](http://www.ipq.pt/)

###  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://ec.europa.eu/enterprise/newapproach/nando/>

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. ETSI does not offer conformity
assessment services.

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

IPQ is the Portuguese Institute for Quality. This agency oversees
standardization, accreditation, certification and metrology in Portugal.

To sell products 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 section provides some background and clarification.

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 marking and issues a declaration of conformity. With
these, the product will be allowed to circulate freely within the EU. A
manufacturer can choose not to use the harmonized EU standards, but then
must 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 marking 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 Member State
inspectors, the consumer may well perceive it as a quality mark.

The CE marking 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 marking, 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)

Independent certification bodies, known as notified bodies, have been
officially accredited by competent authorities to test and certify to EU
requirements. However, under U.S.-EU Mutual Recognition Agreements
(MRAs), notified bodies based in the United States and referred to as
conformity assessment bodies, are allowed to test in the United States
to EU specifications, and vice versa. The costs are significantly lower
which results in U.S. products becoming 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 (on hold),
recreational craft (in force) and marine equipment (in force). The U.S.
Department of Commerce, National Institute of Standards and Technology
(NIST), has a link on its website to American and European Conformity
Assessment bodies operating under a mutual recognition agreement.

<http://ts.nist.gov/Standards/Global/mra.cfm>

Accreditation is handled at Member State level. \"European
Accreditation\" 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.

European Accreditation

[http://www.european-accreditation.org/default_flash.htm](http://www.european-accreditation.org/)

The Portuguese accreditation authority is:\
\
Instituto Português de Acreditação, I.P. (IPAC)

(Portuguese Institute for Accreditation)

Rua Antonio Giao, 2

2829-513 CAPARICA, PORTUGAL

Tel.: (351) 212948201

Fax: (351) 212948202

E-mail: <acredita@mail.ipq.pt>

###  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/lex/JOIndex.do?ihmlang=en>). It lists the
standards reference numbers linked to legislation
(<http://www.newapproach.org/Directives/DirectiveList.asp>). National
technical Regulations are published on the Commission's website
<http://ec.europa.eu/comm/enterprise/tris/> to allow other countries and
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 Us** 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://tsapps.nist.gov/notifyus/data/index/index.cfm>

In Portugal, IPQ provides standards for conformity in Portugal with
European standards: Access on-line at Web site:
[http://www.ipq.pt](http://www.ipq.pt/)

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

U.S. firms entering the Portuguese market are strongly advised to
examine EU as well as Portuguese laws. Each European Union country is
integrating the rulings of the EU into its national legislation. As much
legislation regarding labeling is still in the developmental stage, EU
labeling regulations and standards need to be carefully monitored.

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 right 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 for a variety of
products. Please note that this legislation is currently being reviewed
in an effort to simplify it.

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML>

*The Eco-label*

EU legislation in 1992, revised in 2000, distinguishes environmentally
friendly products and services through a voluntary labeling scheme
called the Eco-label. Currently, the scheme applies to 7 product groups:
cleaning products, appliances, paper products, clothing, lubricants,
home and garden products and tourism services. 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 such
similar 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.

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 percent for SMEs) and has therefore not been widely used so far.
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. 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.

<http://buyusainfo.net/docs/x_4284752.pdf>

<http://ec.europa.eu/comm/environment/ecolabel/index_en.htm>

<http://www.eco-label.com/>.

In June 2005, the European Commission tabled a Communication designed to
launch a debate on the best way ahead regarding the eco-labeling of
fisheries products. This initiative follows the growing interest by
environmental Non-Governmental Organizations and increased public
interest in food products associated with considerations related to
environmental sustainability. A number of eco-labeling schemes have
already been established with regard to fisheries products and other
initiatives are being developed. It is not always easy to establish how
reliable some eco-labeling claims are. International guidelines on
eco-labeling have recently been adopted by the [Food and Agriculture
Organization (FAO)](http://www.fao.org/)
([www.fao.org](http://www.fao.org/)) and discussions on these issues and
their potential effects on free trade areas are progressing in other
international fora such as the [World Trade Organization
(WTO)](http://www.wto.org/) ([www.wto.org](http://www.wto.org/)).

Companies selling a broad range of electrical goods in Europe are
required to comply with the Waste Electrical and Electronic Equipment
Directive (WEEE) and since July 2006 they need to conform to the
Restriction of Use of certain Hazardous Substances Directive (RoHS). One
of the requirements is that electrical goods be marked so that consumers
do not put them in with municipal waste. U.S. exporters seeking more
information on WEEE and RoHS Regulations should visit:

<http://www.buyusa.gov/europeanunion/weee.html>

Manufacturers and distributors should be aware of specific requirements
regarding the labeling and traceability of foodstuffs, including
seafood, which are covered by several EU Regulations:

-   Regulation 178/2002/EC.

-   Directive 2000/13/EC, last amended by Directive 2003/89/EC as
    regards indication of the ingredients present in foodstuffs.

-   Commission Directive 2005/26/EC.

-   Council Regulation 104/2000/EC (seafood).

-   Commission Regulation 2065/2001/EC (seafood, only for retail
    channels).

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

Dillon Banerjee

U.S. Commercial Attaché

American Embassy Lisbon

U.S. Commercial Service

Av. das Forças Armadas

Sete Rios

1600-081 Lisbon, Portugal

Tel.: (351) 217 702 526

Fax: (351) 217 268 914

E-mail: <dillon.banerjee@mail.doc.gov>

<http://www.buyusa.gov/portugal/en/>

DGAIEC

Rua da Alfandega, 5 -- r/c

1149-006 LISBON, PORTUGAL

Tel.: (351) 218 813 700

E-mail: <dgaiec@dgaiec.min-financas.pt>

[http://www.dgaiec.min-financas.pt](http://www.dgaiec.min-financas.pt/)

Instituto Português de Qualidade

(Portuguese Institute for Quality)

Rua Antonio Giao, 2

2829-513 CAPARICA, PORTUGAL

Tel.: (351) 212 948 100

Fax: (351) 212 948 260

E-mail: <encomenda@mail.ipq.pt>

[http://www.ipq.pt](http://www.ipq.pt/)

Ministry of Economy\
Av. da Republica, 79

1069-218 LISBON, PORTUGAL

Tel.: (351) 217 911 600

Fax: (351) 217 911 604

E-mail: <secretaria.geral@min-economia.pt>

[http://www.min-economia.pt](http://www.min-economia.pt/)

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@N0SPAM.mail.doc.gov](mailto:gwen.lyle@mail.doc.gov)\
Sylvia Mohr -- Standards Specialist\
Tel.: 32 2 508 2675\
\
Regional Director for Animal, Plant and Health Inspection Services\
Dan j. Sheesley\
U.S. Mission to the European Union\
40 Boulevard du Regent, B3\
1000 Brussels\
Belgium\
Tel.: (32) 2 508 2762\
Fax: (32) 2 511 0918\
E-mail:
[dan.j.sheesley@N0SPAM.aphis.usda.gov](mailto:dan.j.sheesley@aphis.usda.gov)\
Web site: [http://www.aphis.usda.gov](http://www.aphis.usda.gov/)\
\
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\
[http://www.cenorm.be](http://www.cenorm.be/)

CENELEC -- European Committee for Electro Technical Standardization\
Rue de Stassart 35\
B -- 1050 Brussels, Belgium\
Tel.: 32 2 519 68 71\
Fax: 32 2 519 69 19\
[http://www.cenelec.org](http://www.cenelec.org/)\
\
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\
[http://www.etsi.org](http://www.etsi.org/)\
\
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>\
\
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](http://www.efta.int/)\
\
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\
[http://www.normapme.com](http://www.normapme.com/)\
\
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\
[http://www.anec.org](http://www.anec.org/)\
\
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@N0SPAM.eota.be](mailto:info@eota.be)\
\
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\
[http://www.eotc.be](http://www.eotc.be/)

## Trade Agreements [**Return to top**](#ch5)

As a member of the European Union, Portugal is subject to all European
Union Free Trade Arrangements. European Union laws and regulations
provide that member states may designate parts of the customs territory
of the Community as free trade zones and free warehouses. Information on
free trade zones and free warehouses is contained in Title IV, Chapter
Three, of Council Regulation (EEC) No. 2913/92 of October 12, 1992,
establishing the Community Customs Code, titled, \"Free Zones and Free
Warehouses\" (Articles 166 through 182).

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

Office of the U.S. Trade Representative

<http://www.ustr.gov/>

U.S. Mission to the EU (USEU) website

[http://www.useu.be](http://www.useu.be/) or http://useu.usmission.gov/

Foreign Agricultural Service website, USEU

<http://www.useu.be/agri/usda.html>

Trade Compliance Center

<http://www.trade.gov/tcc>

U.S. Mission to the European Union

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

USDA Audit, Review & Compliance

<http://www.ams.usda.gov/lsg/arc/audit.htm>

EC's TARIC -- Online Customs Tariff Database

<http://ec.europa.eu/comm/taxation_customs/common/databases/taric/index_en.htm>

Batteries

<http://www.buyusainfo.net/docs/x_8086174.pdf>

WEEE & RoHS

<http://www.buyusa.gov/europeanunion/weee.html>

Harmonized Import Requirements

<http://www.useu.be/agri/certification.html>

EU Hygiene Guidelines

[Commission Regulation
2073/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00010026.pdf)

[Commission Regulation
2074/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00270059.pdf)

[Commission Regulation
2076/2005](http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_338/l_33820051222en00830088.pdf)

National Marine Fisheries Service's Trade & Commercial Services website

<http://www.nmfs.noaa.gov/ocs/tradecommercial>

USDA Center for Food Safety and Applied Nutrition

<http://www.cfsan.fda.gov/>

EU Mandatory and Voluntary Labeling and Marking Requirements

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

EC Taxation and Customs Union

<http://ec.europa.eu/comm/taxation_customs/customs/index_en.htm>

National Customs Authorities

<http://ec.europa.eu/taxation_customs/common/links/customs/index_en.htm>

EC Regulation on Animal By-Products

<http://ec.europa.eu/scadplus/leg/en/lvb/f81001.htm>

Major Revision of the New Approach

<http://ec.europa.eu/enterprise/newapproach/review_en.htm>

EC Certification of Animal Products

[http://useu.usmission.gov/agri/certification.html](http://www.useu.be/agri/certification.html)

EU-approved U.S. Establishments

[http://useu.usmission.gov/agri/estab.html](http://www.useu.be/agri/estab.html)

EU Marketing Standards for Fruits & Vegetables

[http://useu.usmission.gov/agri/Fruit-Veg.html](http://www.useu.be/agri/Fruit-Veg.html)

Non-Hormone Treated Cattle (NHTC) Program

<http://www.ams.usda.gov/lsg/arc/nhtc.htm>

Organic Foods Legislation

[http://useu.usmission.gov/agri/organic.html](http://www.useu.be/agri/organic.html)

CENELEC, European Committee for Electro-technical Standardization

<http://www.cenelec.org/Cenelec/Homepage.htm>

ETSI, European Telecommunications Standards Institute

<http://www.etsi.org/>

CEN, European Committee for Standardization

[http://www.cen.eu/cenorm/index.htm](http://www.cenorm.be/)

Standardization Mandates

<http://ec.europa.eu/enterprise/standards_policy/mandates/>

ANSI, American National Standards Institute

<http://www.ansi.org/>

New Approach Legislation and Standardization in the Internal Market

<http://www.newapproach.org/>

ETSI's e-Standardization Portal

<http://portal.etsi.org/Portal_Common/home.asp>

Advisory and Coordinating Bodies to CEN

<http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp>

Accredited Test Laboratories in the EU

<http://ec.europa.eu/enterprise/newapproach/nando/>

Government-to-Government Mutual Recognition Agreement Information

<http://ts.nist.gov/Standards/Global/mra.cfm>

European Co-operation for Accreditation

<http://www.european-accreditation.org/default_flash.htm>

European Union Law Portal

<http://europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en>

List of EU Directives and Standards

<http://www.newapproach.org/Directives/DirectiveList.asp>

EC Technical Regulations Information System

<http://ec.europa.eu/comm/enterprise/tris/>

Proposed Foreign Technical Regulations

<http://tsapps.nist.gov/notifyus/data/index/index.cfm>

EC Directive on Packaging

<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML>

EU Eco-label

<http://buyusainfo.net/docs/x_4284752.pdf>

<http://ec.europa.eu/comm/environment/ecolabel/index_en.htm>

<http://www.eco-label.com/>

FAO

[www.wto.org](http://www.wto.org/)

[Food and Agriculture Organization (FAO)](http://www.fao.org/)

WTO

[www.wto.org](http://www.wto.org/)

[World Trade Organization (WTO)](http://www.wto.org/)

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch6 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

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

-   [Conversion and Transfer Policies](#thirtytwo)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

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

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-and-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

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

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

Portugal offers a favorable investment climate for foreign capital, both
in the near and long term. Its economy has become increasingly
diversified and service-based since the country joined the European
Community in 1986. On January 1, 2002, Portugal adopted the Euro as its
official currency, further integrating itself with the European Union's
financial and economic policies. Prime Minister Jose Socrates, who took
office in2005, has made opening Portugal's economy to foreign investment
a key priority.

Government Promotion Agencies: The key agency leading Portugal's
economic development policy is API (Invest in Portugal Agency). API is a
public company with a public equity of 110 million Euros and acts as a
single point of contact for investors with projects over 25 million
Euros or companies with a consolidated turnover superior to 75 million
Euros. For foreign investments not meeting these requirements, API will
make a preliminary analysis and direct the investor to the appropriate
investment assistance agency or program. API has published an
\"Investor's Guide\" in Portugal, which includes a description of the
legal and institutional framework for investments, as well as a section
on incentives, venture capital and mutual guarantees, and fiscal
incentives. This guide is available in Portuguese and in English, on the
website, http://www.investinportugal.pt.

Portugal's trade promotion agency, ICEP is planning to merge with API in
the near future. The new institution will be named AICEP -- Agência para
o Investimento e Comércio Externo de Portugal (Portuguese Agency for
Foreign Investment and Commerce).

Government Policies -- General: According to the Bank of Portugal,
foreign direct investment is defined as an act or contract that obtains
or increases enduring economic links with an existing Portuguese
institution or one to be formed. Foreign direct investment is thus all
investment made by a non-resident of, at least, 10% of a resident
company's equity, provided that the direct investor possess effective
decision power.

Foreigners are permitted to establish themselves in all economic sectors
open to private enterprise. Currently, however, Portuguese government
approval is required for non-EU investment in the following sectors:
defense industry, water management, public service telecommunications
operators, railways, and maritime transportation. Also, Portugal
restricts non-EU investment in regular air transport to 49 percent.

Finance/Insurance: Investors wishing to establish new credit
institutions or finance companies, acquire a controlling interest in
such financial firms, and or establish a subsidiary must have
authorization from the Bank of Portugal (for EU firms) or the Ministry
of Finance (for non-EU firms). In both cases, the authorities take
prudential considerations into account, but in the case of non-EU firms,
the Ministry of Finance also considers the impact on the efficiency of
the financial system and the internationalization of the economy. Non-EU
insurance companies seeking to establish an agency in Portugal must post
a special deposit and financial guarantee and must have been authorized
for such activity for at least five years.

Foreign Workers: Foreigners who want to work in Portugal must obtain a
work permit and a residence permit. EU workers must obtain a residence
card for EU nationals but are not required to have work permits. Non-EU
workers are required to have both a residence visa and a work permit.
According to Decree-law 34/2003 API can recommend the granting of a work
permit to a non-EU national when the worker is essential to national
economy, possesses highly qualified competencies or his/her work is of
relevant scientific interest to the country.

In the past, the Ministry of Health has allowed serious arrears to
develop in payments for goods and services used in the government\'s
health program. These delays have cut into the profitability of U.S.
companies working in the health field, especially pharmaceuticals. U.S.
firms are not discriminated against compared to Portuguese or other
foreign firms with regard to timeliness of payments.

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

Portugal maintains no current or capital account restrictions. On
January 1, 1999, Portugal and ten other European countries formed the
European Monetary Union. On January 1, 2002, Portugal adopted the Euro
as its official currency, replacing the Portuguese Escudo which is no
longer in circulation.

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

There have been no cases of expropriation of foreign assets or companies
in Portugal in recent history, nor is there concern for future
expropriation.

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

The Portuguese legal system is slow and deliberate, with many cases
taking years to resolve. In an effort to address this problem, the
government introduced reforms in litigation procedures and public
administration in 2004. These reforms are intended to reduce delays in
the justice system and improve its effectiveness by reorganizing the
court system and redefining the division of power. The reform also
establishes new rules for management within the judicial system.

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

As an incentive for both national and foreign companies, Portugal
reduced its corporate income tax (IRC) for net profit from 30% to 25%,
and set the municipal surcharge to no great than 2.5% of taxable profit.
Rates vary from municipality to municipality. Other tax regimes are in
place for the country's autonomous regions, the islands of the Azores
and Madeira.

The Portuguese Government also offers several incentive packages
tailored to investors' needs and investment capital. Details about the
programs are available on the API website at:
<http://www.investinportugal.pt/>

For example, under Portugal\'s investment incentive regime, API --
Invest in Portugal Agency - is empowered to negotiate a tailored
incentives package for large investment projects on a case-by-case
basis, including tax cuts and subsidized or interest-free loans as well
as cash grants. Large-scale investment projects are all investment
projects exceeding 25 million Euros, within a period of three years, or
those promoted by a company, or group of companies with a total turnover
superior to 75 million Euros. The goal of the program is to leverage
investments for proposed projects that support the government\'s
economic development goals. API hopes to use the program to address
Portugal\'s long-term competitiveness issues, including human resources,
and to promote Portugal\'s own brands and patents, in the industrial,
energy, construction, transport, tourism, commerce and services sectors.

For more information:

<http://www.planotecnologico.pt/default.aspx?idLang=2&site=technological-plan>

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

Private Ownership/Enterprise: Private ownership is limited to 49 percent
in the following sectors: basic sanitation (except waste treatment),
international air transport, railways, ports, arms and weapons
manufacture, and airports. The government requires private firms to
obtain concessions, contracts, and licenses to operate in a number of
sectors (public service television, waste distribution, waste
treatment), but grants these on a non-discriminatory basis. Foreign
firms have the right to establish themselves in all economic sectors
open to private enterprise. Foreign investments affecting public health,
order or security, or relating to the arms industry, require approval of
the competent authorities.

Competitive Equality: Law No.18/2003, of June 6, 2003, governs
protection and promotion of competition in Portugal. It specifically
outlaws collusion between companies to fix prices, limit supplies, share
markets or sources of supply, discriminate in transactions, or force
unrelated obligations on other parties. Similar prohibitions apply to
any company or group with a dominant market position. The law also
requires prior government notification of mergers or acquisitions which
would serve to give one company more than 30 percent market share in one
sector or among entities which had total sales in excess of 150 million
Euros in the preceding financial year. The Competition Authority has 60
days to determine if the merger or acquisition can proceed. The European
Commission may claim authority on cross-border competition issues or
those involving entities large enough to have a significant EU market
share.

Privatization Program: Portugal has engaged in a wide-ranging
privatization program that sold off 100 enterprises and generated
approximately \$14 billion in revenues in its first ten years of
existence. Privatization involves the sale of government shares in
state-owned companies, typically in a series of share offerings. These
share offerings often include private transactions, usually to attract a
\"strategic partner\" as an equity holder, and public offerings.

Major privatization in recent years included sales of interest in
Portugal Telecom (telecommunications), EDP (electricity), and GALP
(petroleum refining and marketing, natural gas distribution). Firms,
which are expected to be privatized in the near future, include TAP
(Airline) and REN (Electricity Transmission System Operator). In some
cases, the process of identifying and selecting strategic partners has
not been transparent. In one recent high-profile case, the GOP\'s
parastatal holding company, Parpública, was to choose a new strategic
partner for a state company in a resale of its privately held shares.
There was no formal tender issued, and bidders participated by
invitation of the GOP. Parpública chose, as a strategic partner, a
Portuguese company with no other activities in that industrial sector.
The U.S. bidder, whose consortium did include a Portuguese company with
activities in that sector, was not short-listed.

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

The government adopted the trade-related intellectual property (TRIPS)
provisions of GATT in 2003. Portuguese legislation for the protection of
intellectual property rights has been consistent with WTO rules and EU
directives since 2004.

Portugal is a participant in the E-MAGE project, an Internet based
service, which provides multilingual access to databases of trademarks
and industrial designs. This international cooperation helps customs
authorities prevent sales of counterfeit goods. Other countries involved
include France, Austria, Hungary and Spain.

Trademark Protection: Portugal is a member of the International Union
for the Protection of Industrial Property (WIPO) and a party to the
Madrid Agreement on International Registration of Trademarks and
Prevention of the Use of False Origins. Portugal\'s current trademark
law entered into force on June 1, 1995. The law, however, is not
considered to be entirely consistent with TRIPS.

Copyright Protection: Portugal is finishing the process of adopting EU
directives in the form of national legislation. Most recently, the
country adopted the EU Directive on protection of databases (Decree Law
122/2000, July 4, 2000). However, software piracy remains a problem.

Patent Protection: Currently, Portugal\'s patent protection is governed
by the Code of Industrial Property that went into effect on June 1,
1995. In 1996, new legislation was passed to extend the life of
then-valid patents to 20 years, consistent with the provisions of TRIPS.
A new industrial property code, designed to bring Portugal into full
conformity with EU and international norms, came into effect at the
beginning of 2003.

Portugal, like other European countries, grants health (FDA-equivalent)
approval to market new drug products without crosschecking for existing
products with unexpired patent protection already in the market. This
forces companies to pursue redress through the court system, an
expensive and time-consuming process. U.S. pharmaceutical companies have
brought a number of cases before Portuguese tribunals for the violation
of patent rights by Portuguese companies. One U.S. owned pharmaceutical
company has won five cases, and has several more pending.

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

Businesses frequently complain about red tape with regards to
registering companies, filing taxes, receiving value-added tax refunds
and importing materials. Decision-making tends to be centralized and
obtaining government approvals/permits can be time-consuming and costly.
A process of appeals for administrative complaints and litigation was
introduced in 2004 to reduce delays in the justice system and improve
its effectiveness. The program has alleviated many of the requirements
for company licensing and reduced the length of time required to
incorporate a company. In addition, notarial services were also
privatized in 2004.

The government initiated the rapidly expanding "Empresa na Hora"
(Business in an Hour) program in 2005 to facilitate navigation of the
bureaucracy of starting a business. To date, over 1200 businesses are
using the have been established between July and December 30, 2005 using
this program. More information can be found at Empresa na Hora's website
at <http://www.empresanahora.pt/>.

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

One result of Portugal\'s participation in the European Monetary Union
is the country\'s increasing integration into a European-wide financial
market. As a member of the Euro-zone, Portugal offers low exchange rate
risk for foreign investors, interest rates comparable to other EU
countries and a greater availability of credit. In addition to bank
lending, the private sector has access to a variety of credit
instruments, including bonds. Legal, regulatory, and accounting systems
are consistent with international norms.

The Portuguese capital markets code (the CVM) came into effect on March
1, 2000, and has rationalized and streamlined Portuguese capital markets
legislation. The Lisbon stock market is part of Euronext, which also
includes the Paris, Brussels and Amsterdam markets.

Portugal has about 50 banking institutions. The largest five bank
groups, however, accounted for a majority of the sector\'s total assets.
Nevertheless, Portugal\'s bank sector is still undergoing consolidation
in order to create banks large enough to compete in the European market.
The country\'s largest bank, Caixa Geral de Depositos (CGD), is
controlled by the Portuguese government. Despite recent economic
challenges, the financial sector continues to perform well.

In addition to banks and stock markets, Portugal has taken specific
steps to ensure that the financial needs of small and medium sized
enterprises (SMEs) are met. Portugal\'s Institute for Supporting Small
and Medium-Sized Enterprises and Investment (IAPMEI) has a program of
mutual guarantees so that SMEs do not have to use their assets or those
of their shareholders to collateralize debt. The companies pay an
initial evaluation fee and an annual fee equal to 0.75-3.00 percent of
the guarantee. IAPMEI has also supported the creation of venture capital
funds and venture capital companies, which will channel capital to SMEs.

Of the 25.3 billion Euros in projects to date under the government\'s
2000-2006 program to support Portugal\'s economic development (POE and
PRIME from 2002 onwards), 14.6 billion Euros has been invested in 13,794
projects approved by these Programs. For more information on PRIME,
visit the homepage at
[http://www.prime.min-economia.pt](http://www.prime.min-economia.pt/)

Steps have been taken to improve the educational and vocational training
programs in Portugal, in hopes of improving education attainment and
labor productivity, which lag behind the EU-15 average.

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

There have been no incidents involving politically motivated damage to
projects and/or installations. Potentially destructive civil
disturbances are not likely.

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

Corruption is a relatively limited aspect of the business culture in
Portugal. Although U.S. firms occasionally encounter limited degrees of
corruption in the course of doing business in Portugal, they generally
are able to manage it and do not identify corruption as an obstacle to
foreign direct investment. In Transparency International\'s 2006
Corruption Perceptions Index, Portugal ranked 26th out of 163 countries
considered (listed from least to most corrupt). The U.S. was ranked
20th. Portugal has ratified the OECD Anti-bribery Convention and
recently passed legislation to bring its criminal code in compliance
with the Convention. Tax evasion remains a problem for the government,
which has implemented several initiatives to improve collection rates.
The Socrates Administration is undertaking steps to address the limited
degrees of corruption that businesses, both U.S. and other, face in
Portugal.

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

<http://www.apinvest.pt/NR/rdonlyres/73746454-36C0-44F5-92AC-32C29316E8E8/0/investmentpromotionandprotectionagreements.pdf>

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

Portugal is a country with low political risk, and the potential for
significant OPIC insurance programs in Portugal is limited. Portugal is
a member of the Multinational Investment Guarantee Authority (MIGA) of
the World Bank.

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

A package of labor reform laws took effect in 2003 permitting greater
geographic and functional mobility for employers. The labor code limits
the role of unions and makes it more difficult for workers to strike. It
also addresses absenteeism and fraudulent leave. However, low
productivity and difficulty in firing workers continue to hamper
Portugal\'s ability to attract foreign investment.

Labor strikes and work stoppages in Portugal, as in much of Europe, are
more common than in the United States. Most strikes, however, are of
short duration. In the past two years, work stoppages have been more
common among public sector workers, including the transportation sector,
than in the private sector.

Portugal is a member of the International Labor Organization and adheres
to the ILO Conventions Protecting Labor Rights. Portugal ratified ILO
Convention 138, which establishes a minimum employment age of 15 for all
economic sectors. As of January 1, 1997, the minimum working age in
Portugal is 16, thereby exceeding the ILO norm.

Unemployment: Portugal\'s 2006 unemployment rate was 7.3%, lower than
the EU-25 average of 7.6%. The outlook for job creation, although low,
has improved recently with the government having taken steps to improve
educational and vocational training programs to improve labor
productivity which consistently lag behind the EU-25 average.

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

Portugal has two foreign trade zones/free ports in the autonomous
regions of the islands of Madeira and the Azores. These foreign trade
zones/free ports were authorized in conformity with EU rules or
incentives granted to member states. Industrial and commercial
activities, international service activities, trust and trust management
companies and offshore financial branches are eligible activities.
Companies established in the foreign trade zones enjoy
import/export-related benefits, financial incentives, tax incentives for
investors and tax incentives for companies.

The Madeira free trade zone has approximately 6500 registered companies.
Under the terms of Portugal\'s agreements with the EU, companies in the
Madeira FTZ can take full advantage of the tax incentives provided until
December 2011, when those incentives will begin to be phased out.

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

**Foreign Direct Investment flows into Portugal**

<http://www.apinvest.pt/MCMSAPI/HomePage/PortugalToday/KeyStatistics/Foreign+Direct+Investment.htm>

**Portuguese Direct Investment Abroad**

Balance (in thousand Euros)

  --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
  1997      1998       1999       2000       2001       2002       2003       2004       2005

  -1827,8   -3619,94   -2995,49   -8826,56   -6976,07   -164,716   -5778,76   -4975,87   -921,9
  --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------

Breakdown by Sector (in thousand Euros)

  ------ -------------- ----------- --------------- -------------- -------------- ------------- ---------------- ---------------- ------------ ------------
         Agriculture,   Mining and  Manufacturing   Production and Construction   Wholesale and Transports,      Financial        Real estate, Other
         hunting,       quarrying                   distribution                  retail trade, storage and      intermediation   rentals and  activities
         forestry and                               of                            repairs,      communications                    business     
         fishing                                    electricity,                  hotels and                                      activities   
                                                    gas and water                 restaurants                                                  

  1997   1564           10020       -71453          8818           -9427          -117361       -193848          -408239          -1004280     -43599

  1998   180            16196       -74294          -621817        -42077         -36515        -15925           -193174          -2700494     47977

  1999   -1057          7           -122126         -12680         -60749         -76817        -11788           786450           -3300600     -196116

  2000   -4625          -45         -388625         -1673          -61773         -91075        -34903           -576253          -7632820     -34763

  2001   -3738          -14         -121808         -3340          -19743         -3166829      9044             -385080          -3253246     -52550

  2002   -3070          0           -24208          -4575          22347          3075264       -72374           -811396          -1985631     -37986

  2003   -3663          -900        -229365         -2207          -7173          -60814        9794             -36690           -6739678     -42041

  2004   444            1000        49845           53282          -21022         -409228       19163            -311338          -5724385     -66857

  2005   -1393          -9604       -309707         3081           -2727          -245996       12572            -779376          545233       -133962
  ------ -------------- ----------- --------------- -------------- -------------- ------------- ---------------- ---------------- ------------ ------------

Breakdown by Country of Destination (in thousand Euros)

  ------ --------- ---------- --------- ---------- --------- ---------- ------------- --------- ----------
         Balance                                                                                

         Germany   Spain      France    Other EU   UK        Brazil     Switzerland   USA       Other

  1997   -318      -253000    -11005    -484499    497       -288610    -1105         -32259    -448029

  1998   -54552    -366436    -40739    -934869    -25042    -574347    595           -32156    1994302

  1999   -51973    706088     -216078   1339732    -96095    -4081929   -1302         -38321    -3137337

  2000   -42558    -1816638   -22192    -1505223   -81060    -1501139   -9554         -44169    -2006085

  2001   -7993     -3115528   -14469    -1727150   -317588   -2926388   -8207         -181679   -668470

  2002   44330     1104199    3248      -3960549   -270763   -1122146   -9006         -61778    784195

  2003   131796    -928100    87020     20090      51376     2325327    -20614        -173143   -6358660

  2004   24344     -2181536   -131191   -707121    -65376    22138      -9338         -12312    -2787682

  2005   17488     -399066    -41357    -1143154   -115752   -292097    -19702        -198357   -2647152
  ------ --------- ---------- --------- ---------- --------- ---------- ------------- --------- ----------

(Source: Banco de Portugal)

**Portuguese Trade with the U.S.**

In Millions of U.S. Dollars

<http://www.census.gov/foreign-trade/balance/c4710.html>

**Major Foreign Direct Investors**

Selected Major Foreign Investors in Portugal include:

<http://www.apinvest.pt/MCMSAPI/HomePage/PortugalToday/FDI+TrackRecord/>

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

Bank of Portugal:

[http://www.bancoportugal.pt](http://www.bancoportugal.pt/)

Invest in Portugal Agency:

[http://www.investinportugal.pt](http://www.investinportugal.pt/)

Empresa na Hora:

[http://www.empresanahora.pt](http://www.empresanahora.pt/)

PRIME:

[http://www.prime.min-economia.pt](http://www.prime.min-economia.pt/)

EUROSTATE :

<http://ec.europa.eu/eurostat>

U.S. Census:

[http://www.census.gov](http://www.census.gov/)

Technological Plan:

[www.planotecnologico.pt/default.aspx?idLang=2&site=technological-plan](http://www.planotecnologico.pt/default.aspx?idLang=2&site=technological-plan)

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch7 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# 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](#project-financing-return-to-top)

-   [Web Resources](#web-resources-return-to-top-3)

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

Depending on the size of the order and payment history of the buyer, the
terms of the sale will vary. For larger transactions or where the seller
is less comfortable with the credit worthiness of the seller, foreign
products are often imported by using irrevocable letters of credit
against documents, particularly during the first year of business.
Opening irrevocable letters of credit is a straightforward process in
Portugal through which importers can insure against exchange risk with
their banks. When a long-term relationship has been established between
a supplier and a customer, more favorable credit terms may be
negotiated.

Payment terms are frequently 30, 60 and 90 day terms. Large corporations
(including large retailers) negotiate or impose longer payment terms
that can last up to six months. The government defers all payments.
Depending on the department, payments can be deferred up to one year.
Product pricing must also include the necessary financial charges.

Beyond letters of credit, the methods of payment most commonly used in
Portugal for international trade are:

Checks (Cheque): While bank checks offer security in transactions,
(since the bank issuing the check needs the guarantee of the transfer to
issue it), personal checks do not provide adequate guarantees against
commercial risk, as the bank does not guarantee the funds in the account
of the person issuing the check.

Payment Order (Letras): In this case, the importer gives an order to the
bank and, by using a correspondent bank in the same country, pays the
exporter's bank the amount due. The initiative for the payment in this
case is the importer's responsibility. These transfers, via SWIFT, are a
common practice in the Portuguese banking system.

Documents against payment (Cartas de Crédito): Exporters use this
instrument to ensure the possession of the merchandise until the
collection of funds, or at least until the importer accepts a bill of
exchange.

Documentary Credit (Credito Documentário): This method of payment offers
safer conditions in the transaction, due to the involvement of banks in
both countries. In this case, the importer's bank ensures against the
entrance of a third party (an exporter, the bank or a correspondent
bank).

Credit Card (Cartão de Crédito) for Small Online Purchases: Even though
credit card purchases over the Internet are still not very well-accepted
in Portugal, due to security issues, this option should not be excluded.

A U.S. exporter looking to recover debts should contact the Portuguese
Credit and Collection Management Association (APERC) for information on
and contact with debt collecting agencies. The Association can be
reached on:

<http://www.aperc.pt/en/pagina_inicial.html>

Credit reports on Portuguese companies can be obtained by contacting any
of the sources below:

Dun & Bradstreet Portugal

R Barata Salgueiro 28,4º

1250-044 Lisboa, Portugal

Tel.: 351 213 500 300 Fax: 351 213 578 939

[http://www.dbportugal.pt](http://www.dbportugal.pt/)

Coface-Serviços Portugal SA

Avenida Columbano B Pinheiro 75,7º

1070-061 Lisboa, Portugal\
Tel.: 351 213 588 800 Fax: 351 213 588 801

[http://www.coface.pt](http://www.coface.pt/)

You may choose and take advantage of customized credit report provided
by the U.S. Commercial Service at the U.S. Embassy in Lisbon with
information that will help you assess the risk, reliability and
capability of the Portuguese company. This service is called the
International Company Profile -- ICP and you may obtain more information
at:
<http://www.buyusa.gov/portugal/en/international_company_profile.html>

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

There are two main types of banks in Portugal: Clearing Banks and
Savings Banks. The most dominate banking groups in Portugal include
Millennium BCP, BES - Banco Espírito Santo, BPI, Santander Totta and the
state-owned bank Caixa Geral de Depósitos, which is also the largest
credit institution in Portugal.

In recent years, the behavior of the Portuguese banking sector was
characterized by moderation in its annual growth rates. Since Portugal
became part of the EU in 1986 and with the adherence to Euro currency
system in 2002, Portugal has been transposing into national law, key EU
financial directives; Portuguese banking regulations have been identical
compared to other EU countries. The entity supervising the banking
sector in Portugal is the Portuguese central bank (Banco de Portugal), a
member of the European System of Central Banks (ESCB).

Portugal has one the most advanced inter-banking networks in the world.
ATMs or bank "branches" are easily found all over Portugal. There are
also several foreign banks operating in Portugal, although there are
fewer than in most other European countries. Foreign banks are mostly
located in Lisbon.

Electronic banking is also widespread in Portugal. However,
functionality varies among the systems available, with many incapable of
multi-bank transmission or cross-border transmission of payments or
information. There is no bank-independent electronic banking standard in
Portugal. Internet banking is offered by all major banks. The services
provided include cash management transactions as well as stock exchange
transactions.

Most banks are open Monday to Friday from 8:30am to 3:00pm and are
closed on weekends and public holidays.

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

Through the implementation of EU Capital Liberalization Directive
(Council Directive 88/361/EEC) Portugal has liberalized foreign exchange
and capital controls, namely on the areas of direct investment,
investments in real estate, operations in securities, operations in
units of collective investment undertakings, operations in current and
deposit accounts with financial institutions, credits related to
commercial transactions or to provisions of services, transfers in
performance of insurance contracts, financial loans and credits,
personal capital movements, physical import and export of financial
assets and other capital movements. Foreign exchanges are not registered
and convertibility is not restricted.

In addition, there are no limitations on the distribution of dividends
from a Portuguese company to a non-resident company. Dividends paid to a
nonresident company without a permanent establishment in Portugal are
subject to a 25% final withholding tax (although reduced rates under tax
treaties may apply). In order to get a copy of the Tax Treaty between
the United States and Portugal, please contact the U.S. Commercial
Service at the U.S. Embassy in Lisbon or your access the IRS website at
<http://www.irs.gov/businesses/international> (Income Tax Treaties).

However, under the provisions implementing the EU Parent Subsidiary
Directive in Portugal, outbound dividends or other profits distributions
by Portuguese subsidiaries to their EU parent companies are exempt from
withholding tax, provided the parent company has kept a direct holding
of at least 25% in the capital of the Portuguese subsidiary for a
uninterrupted period of at least 2 years prior to the date of
distribution.

Repatriation of Capital and Earnings: There is no restriction on
repatriation of capital provided this is carried out through an approved
bank and the investment in question was authorized. Similarly, there is
no restriction on transfers of profits, interest, royalties, or service
fees, provided the investment was authorized and made through approved
banks.

Businesses: Foreign-controlled Portuguese businesses are required to
have a resident Portuguese bank account and are subject to the same
regulations as other Portuguese legal entities. The use of foreign bank
accounts by residents is permitted.

Individuals: Portugal has few controls on the use of foreign exchange.
For exchange control purposes, foreigners are considered to be residents
from the time they arrive in Portugal. Portuguese and foreign citizens
are subject to the same rules.

Residents are entitled to open an account in foreign currency with a
bank established in Portugal and to establish accounts abroad. Residents
must report the account number for all foreign accounts on their annual
income tax returns. Portuguese-source earnings may be transferred
abroad, without limitations if carried out through an approved bank.

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

CITIGROUP/ CITIBANK\
Edifício Fundação

Rua Barata Salgueiro, 30-4º

1269-056 Lisboa, Portugal

Tel.: (351) 21 311 63 00

Fax: (351) 21 311 63 99

[http://www.citibank.com](http://www.citibank.com/)

JP MORGAN CHASE (former Chase Manhattan Bank)

Rua Barata Salgueiro, 30 - 3ºDto.

1250-044 Lisboa, Portugal

Tel.: (351) 21 351 5400

Fax: (351) 21 352 63 02

[http://www.jpmorganchase.com](http://www.jpmorganchase.com/)

MERRILL LYNCH

International Lisbon Rep. Office

Atrium Saldanha

Praca Dq. De Saldanha 1-9o. F

1050-094 Lisboa, Portugal

Tel.: (351) 21 351 2350

Fax: (351) 21 351 2359

[http://www.ml.com](http://www.ml.com/)

AMERICAN EXPRESS (Credit Card Service Company)

MillenniumBCP

Departamento American Express

Tagus Park, Ed. 6, Piso 0, Ala B

2704-254 Porto Salvo, Portugal

Tel.: (351) 21 421 9041

Fax: (351) 21 006 6851

<http://www.americanexpress.com/portugal/homepage.shtml>

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

Portugal has been familiar with the concept of project finance and PPP
(Public/Private Partnership) models. Over the years, there have been a
number of projects such as the Vasco da Gama Bridge, the longest bridge
in Europe concluded in 1997 with a total investment of around USD \$1.2
billion, a USD \$5.2 billion Road Program approved also in 1997 which is
now almost complete or the construction of ten new hospitals announced
in 2002 under the PPP model with investments in excess of USD \$972
million in the hospital facilities alone.

The present Government, in office since March 2005, announced that one
of the main objectives of its economic program would be the development
of several major PPP projects. The Government committed to building a
new international airport in Lisbon and to move on with the high-speed
train project through existing and new PPPs, which are described in the
infrastructure investment priorities program 2005/2009 (Programa de
Investimentos em Infra-estruturas Prioritárias 2005/2009), both projects
worth around USD \$34.4 billion.

Although generally the Government finances or helps financing these
kinds of projects, contractors may be required to bring financing
proposals for major projects bids on a case-by-case basis. Project
financing and PPPs are available for a wide variety of projects ranging
from bridges to gas pipeline construction.

If you would like to obtain additional information on Project Finance
and PPP in Portugal, please contact the U.S. Commercial Service at the
U.S. Embassy in Lisbon, Portugal.

You maybe also access the Ministry of Economy (in Portuguese) at
<http://www.min-economia.pt/> and the PRIME - Incentives Program for the
Modernization of Economic Activities at
<http://www.prime.min-economia.pt/presentationlayer/prime_Home_00.aspx?activeitemtop=6&idioma=2>

#### Tendering for European public procurement contracts

The U.S. Mission to the European Union in Brussels has developed a tool
to help U.S.-based companies bid on public procurement supplies
contracts in particular. All contracts for supplies that are procured by
European public authorities (national government departments, regional
agencies and public institutions, city authorities) above established
thresholds are open to U.S.-based companies by virtue of the Government
Procurement Agreement, of which the U.S. and the EU are parties. All the
tenders in this database are based on a selection of tenders published
in the EU Official Journal, that are open to GPA member countries. The
database contains on average 6,000 to 10,000 tenders and is updated
twice per week.

<http://www.buyusa.gov/europeanunion/eu_tenders.html>

## 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](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

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

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

-   [Visa Requirements](#visa-requirements-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](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-4)

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

The Portuguese Republic (Portuguese: República Portuguesa) is a
democratic republic located on the west and southwest parts of the
Iberian Peninsula in southwestern Europe and is the westernmost country
in continental Europe. Portugal is bordered by Spain to the north and
east and by the Atlantic Ocean to the west and south. In addition,
Portugal includes two archipelagos in the Atlantic, Azores (Açores) and
Madeira Islands.

The Portuguese business community is very formal and titles such as
Doctor, Engineer, and Architect are commonly used. Make sure you ask the
title of the person you are meeting with and always use it with the
person's last name. Writing in red ink is considered an insult and
therefore never used in the business community. When greeting a
businessperson a handshake is proper.

Courtesy, in business and other spheres, is simply expected and easily
extended. Legal contracts do not have the strength in business
associations that personal confidence, built over years of experience,
offers. Aggressiveness is not acceptable in marketing because it may be
interpreted as socially offensive. Pragmatism, of the American variety,
is respected but only when presented as a possible option, not as a hard
sell.

In terms of everyday business the Portuguese are correct and civil. They
respect the time of their appointments and expect the same from others.
They are thorough to a fault, often poring over all the documents
relative to a negotiation, and not too ready \"to just hit the
highlights\". This is done partly to be careful (conservative) but also
to demonstrate their grasp of the matter - - exhibiting pedantic merit
rather than pragmatic merit.

Housing in Portugal is at European standards but so is the cost.
Executive location costs in Portugal are now in the same category as any
major commercial center in the European Union.

Food supplies are plentiful though there are seasonal variations in
prices for perishable items. Supermarkets are fully stocked. Prices are
very close to those found in the United States and often exceed them for
packaged goods.

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

There are no travel advisories for Portugal nor have there been for many
years.

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

No visas are required to visit Portugal for stays of 90 days or less.

U.S. Companies that require travel of foreign businesspersons to the
United States should be advised that security options are handled via an
interagency process. Visa applicants should go to the following links.

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

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

American Embassy Lisbon -- Consular Section:
<http://www.american-embassy.pt/ConsDocs/ConsServices.html>

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

Portugal is a fully \"wired\" country with regard to communications,
making available all the services found anywhere else in Europe:
long-distance calls on stateside credit cards; cellular telephones (can
be rented from Vodafone at the airport departures area);
video-conferencing in state-of-the-art facilities; Internet services;
e-mail, etc. The ATM system in Portugal is one of the best in the world,
as it enables you to do most payments and money transfers at an ATM
terminal anywhere in Portugal.

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

Portugal has direct airline connections from Lisbon with all the major
cities in the European Union, New York, Boston Newark, and as of June
2006, to Philadelphia in the United States, a number of
Portuguese-speaking countries in Africa, and with the major cities in
Brazil. Porto serves fewer cities directly in the European Union, none
in North America, but does serve major cities in Brazil.

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

Many Portuguese speak two, often three languages, English being the
preferred second language. English is a widely spoken second language in
Portugal and American business travelers generally can conduct their
meetings with business and government contacts in English.

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

Health care in Portugal is a constitutional right, which means that the
public health facilities are overburdened, and, therefore, not able to
offer the level of service considered normal in the United States. There
are a number of private clinics and small private hospitals that are
adequate, plus there are several new hospitals planned through 2008 to
offer better conditions to the patients.

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

Local time is Greenwich Mean Time (GMT) -- the same as London. Normal
business hours are from 09:00 AM through 06:00 PM. Stores are open from
09:00 AM to 07:00 PM but shopping malls operate from 10:00 AM to 11:00
PM everyday of the week and on public holidays (except for Christmas and
New Year).

The American Embassy in Lisbon is open from 08:00 AM to 05:00 PM and it
is closed for business on both American (A) and Portuguese (P) holidays.

The list of American and Portuguese holidays, which will be observed by
the American Embassy in Lisbon in 2007 follows:

<http://www.american-embassy.pt/www-local/AmerPortHolidays.html>

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

Personal belongings may enter the country without barriers imposed by
the Portuguese Customs. If Portuguese Customs see that personal
belongings are of very high value (such as jewelry, and other high end
electronic material) they may require a money guaranty that will be
reimbursed when leaving the country.

Entry of materials to hand out at trade shows such as promotional
literature, gadgets, tourism and technical information and brochures may
enter the country but the company carrying these will have to fill out a
customs request to bring these into the country and hand them out.

Companies that plan to temporarily bring in materials and equipment,
which is not for sale, will be requested to fill out a formal request of
Temporary Importation of Products.

The Portuguese Customs Authority supplies this form upon entering the
country. This will enable the U.S. company to take the equipment back
without having to pay duties. If the equipment is sold while in
Portugal, the U.S. company will have to pay the duties inherent to the
specific equipment.

## Web Resources [**Return to top**](#ch8)

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

[http://www.export.gov](http://www.export.gov/)

[http://ww.american-embassy.pt](http://ww.american-embassy.pt/)

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

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

-   [Contacts](#contacts-return-to-top-1)

-   [Market Research](#section-3)

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

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

**U.S. Embassy Trade Related Contacts:**

Mr. Dillon Banerjee

U.S. Commercial Attaché

American Embassy Lisbon

U.S. Commercial Service

Av. das Forças Armadas

Sete Rios

1600-081 Lisbon, Portugal

Tel.: (351) 217 273 300

Fax: (351) 217 268 914

American Embassy Lisbon

U.S. Commercial Service

PSC 83 Box FCS

APO AE 09726

or

U.S. Commercial Service in Porto

Av. da Boavista, 3523, 5º Sala 501

4100-139 Porto, Portugal

Tel.: (351-22) 618 6607

Fax: (351-22) 618 6625

**U.S. Commercial Service Websites:**

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

<http://www.export.gov/cs>

**Other U.S. Embassy Contacts:**

Ms. Cari Enav

Economic Officer

Mr. Steve Hammond

Agricultural Counselor

(Resident in Madrid)

Office of Defense Cooperation

(Same address as U.S. Commercial Service)

Tel.: (351 21) 770 2276

Fax: (351 21) 726 8913

International Mail:

PSC 83

APO AE 09726

#### U.S. Embassy Military Contacts

Office of Defense Attaché: Col. Rick Villalobos

Chief, ODC: CDR Edward Bradfield

Chief, Army Section: Maj. Armando Ramirez (USA)

Chief, Air Force Section: Lt. Col. Henry Stish (USAF)

Chief, Navy Section: CDR Edward Bradfield

#### Amcham and Bilateral Business Councils

Portugal‑U.S. Chamber of Commerce

5 West 45th Street

New York, NY 10036

Tel.: (212) 354‑4627

Fax: (212) 575‑4737

American Chamber of Commerce in Portugal

Rua D. Estefânia, 155-5.E

1000 Lisbon, Portugal

Tel.: (351 21) 357 25 61

Fax: (351 21) 357 25 80

Contact: Dra. Graça Didier, Executive Secretary

#### Trade or Industry Associations in Key Sectors

Associação Comercial de Lisboa

(Lisbon Commercial Association)

Rua das Portas de Santo Antão, 89

1150 Lisbon

Tel.: (351 21) 342 32 77

Fax: (351 21) 342 43 04

Câmara de Comércio e Indústria do Porto

(Porto Chamber of Commerce and Industry)

Palácio da Bolsa

Rua Ferreira Borges

4000 Porto

Tel.: (351 22) 339 90 00

Fax: (351 22) 339 90 90

Associação Empresarial de Portugal

(Portuguese Business Association)

Av. da Boavista, 2671

4100 Porto

Tel.: (351 22) 998 15 37

Fax: (351 22) 998 16 39

Associação Industrial Portuguesa

(Portuguese Industrial Association)

Rua do Bojador -- Parque das Nacoes

1998-Lisboa

Tel.: (351 21) 892 15 22

Fax: (351 21) 363 90 47

R. Oliveira Monteiro, 453

4050 Porto

Tel.: (351 22) 600 64 48

Fax: (351 22) 606 49 82

Associação Industrial Portuense

(Porto Industrial Association)

Exponor

Feira International do Porto

4450 Leça da Palmeira

Tel.: (351 22) 996 15 30

Fax: (351 22) 996 42 13

Confederação dos Agricultores de Portugal (CAP)

(Portuguese Confederation of Farmers)

Av. Colegio Militar, Lt. 1786

1500 Lisbon

Tel.: (351 21) 710 00 00

Fax: (351 21) 716 61 23

Confederação do Comércio Português (CCP)

(Portuguese Business Confederation)

Av. Vasco da Gama, 29

1400 Lisbon, Portugal

Tel.: (351 21) 302 05 08/60

Fax: (351 21) 302 06 15

Confederação da Indústria Portuguesa (CIP)

(Portuguese Industrial Confederation)

Av. 5 de Outubro, 35 ‑ 1

1050 Lisbon, Portugal

Tel.: (351 21) 316 47 00

Fax: (351 21) 354 50 94

#### Portuguese Government Agencies

Ministry of Agriculture, Rural Development and Fisheries (MADRP)

(Ministerio da Agricultura, Desenvolvimento Rural e Pescas)

Praça do Comércio

1100 Lisbon, Portugal

Tel.: (351 21) 346 31 51

Fax: (351 21) 347 78 90

Direcção Geral de Fiscalização e Controlo da Qualidade Alimentar

(General Directorate for Food Quality Control and Supervision)

Av. Conde de Valbom, 98

1050 Lisbon, Portugal

Tel.: (351 21) 798 36 00

Fax: (351 21) 798 38 34

Secretário de Estado de Agricultura e Desenvolvimento Rural

(Secretary of State for Agriculture and Rural Development)

Praça do Comércio

1100 Lisbon, Portugal

Tel.: (351 21) 346 33 66

Fax: (351 21) 342 03 71

IFADAP ‑ Instituto Financeiro de Apoio ao Desenvolvimento da Agricultura
e Pescas

(Financial Institute for Assistance to Agricultural and Fishing
Development)

Av. João Crisóstomo, 11

1000 Lisbon, Portugal

Tel.: (351 21) 311 62 00

Fax: (351 21) 352 80 30

Secretaria de Estado das Pescas

(Secretary of State for Fisheries)

Av. Brasilia, (Alges, Praia)

1400 Lisbon, Portugal

Tel.: (351 21) 301 33 91

Fax: (351 21) 301 65 16

Direcção Geral de Pescas

(General Directorate for Fisheries)

Edificio Vasco da Gama

Doca de Alcântara

1350 Lisbon, Portugal

Tel.: (351 21) 391 35 83

Fax: (351 21) 397 97 90/1

Ministério do Ambiente

(Ministry of the Environment)

Rua do Século, 51-2º

1200 Lisbon, Portugal

Tel.: (351 21) 323 25 00

Fax: (351 21) 323 25 31

Secretário de Estado do Ambiente e do Consumidor

(Secretary of State for the Environment)

Rua do Século, 51-2º

1200 Lisbon, Portugal

el: (351 21) 323 15 00

Fax: (351 21) 323 25 88

Direcção Geral do Ambiente

(General Directorate for the Environment)

Murgueira, Zambujal

Alfragide

2720 Amadora, Portugal

Tel.: (351 21) 472 8200

Fax: (351 21) 471 9074

Instituto da Água

(Water Institute)

Av. Almirante Gago Coutinho, 30

1000 Lisbon, Portugal

Tel.: (351 21) 843 00 00

Fax: (351 21) 847 35 71

Instituto de Meteorologia

(Institute of Meteorology)

Rua C, 5- Aeroporto de Lisboa

1700 Lisbon, Portugal

Tel.: (351 21) 848 39 61

Fax: (351 21) 840 23 70

Ministry of Economy (ME)

Direcção‑Geral das Relações Económicas e Internacionais

(General Directorate of Economic and International Relations)

Av. da Republica, 79-5

1050 Lisbon, Portugal

Tel.: (351 21) 793 30 02

Fax: (351 21) 793 05 08

Investimento, Comércio e Turismo de Portugal -- ICEP

(Portugal Foreign Trade Institute, Ministry of Economy)

Av. 5 de Outubro, 101/103

1050 Lisbon Codex, Portugal

Tel.: (351 21) 790 95 00

Fax: (351 21) 795 00 38

Direcção Geral do Turismo

(General Directorate of Tourism)

Av. António Augusto de Aguiar, 86

1050 Lisbon, Portugal

Tel.: (351 21) 357 50 86

Fax: (351 21) 353 85 19

Instituto Nacional de Engenharia e

Tecnologia Industrial

(Engineering and Technological Institute)

Estrada do Paço do Lumiar

1649-038 Lisboa Codex, Portugal

Tel.: (351 21) 716 51 41

Fax: (351 21) 716 09 01

Praça do Principe Real, 19

1269 Lisboa, Portugal

Tel.: (351 21) 322 47 10

Fax: (351 21) 342 33 62

Instituto Nacional Geológico e Mineiro

(Directorate of Mines and Geological Services)

Rua Almirante Barroso, 38

1049-025 Lisboa, Portugal

Tel.: (351 21) 353 75 96

Fax: (351 21) 353 77 09

Secretário do Estado da Indústria e Energia

(Secretary for Industry and Energy)

Av. da Republica, 79-9.

1050-243 Lisbon, Portugal

Tel.: (351 21) 791 17 50

Fax: (351 21) 796 34 27

Direcçao‑Geral da Indústria

(General Directorate of Industry)

Av. Conselheiro Fernandes Sousa, 11

1070 Lisbon, Portugal

Tel.: (351 21) 389 00 00

Fax: (351 21) 383 10 42

IAPMEI ‑ Instituto de Apoio às Pequenas e Médias

Empresas e ao Investimento

(Small Business Administration)

Rua Rodrigo da Fonseca, 73

1099-063 Lisbon, Portugal

Tel.: (351 21) 383 60 00

Fax: (351 21) 383 62 83

Direcção Geral de Energia

(General Directorate of Energy)

Av. 5 de Outubro, 87

1069-039 Lisboa, Portugal

Tel.: (351 21) 792 27 00

Fax: (351 21) 793 95 40

Instituto Nacional de Propriedade Industrial

(National Institute of Industrial Property)

Campo das Cebolas

1149-035 Lisboa, Portugal

Tel.: (351 21) 888 11 01

Fax: (351 21) 887 53 08

Fundacao Portuguesa das Comunicações

(Portuguese Foundation of Communications)

Rua D. Luis I, 22

1200 Lisboa

Tel.: (351 21) 393 50 00

Fax: (351 21) 393 50 09

Instituto Português da Qualidade

(Portuguese Quality Institute)

Rua Antº Galvão, 2

2829 Monte da Caparica, Portugal

Tel.: (351 21) 294 81 00

Fax: (351 21) 294 81 01

Ministério do Trabalho e da Solidariedade

(Ministry of Labor)

Praça de Londres, 2

1000-190 Lisboa, Portugal

Tel.: (351 21) 844 17 00

Fax: (351 21) 844 18 18

Inspecção Geral do Trabalho

(Inspector General of Employment)

Praça do Alvalade,1-1º

1700 Lisbon, Portugal

Tel.: (351 21) 797 51 76

Fax: (351 21) 795 70 58

Direcção Geral do Emprego e Formação Profissional

(General Directorate of Employment)

Praça de Londres, 2

1000-190 Lisboa, Portugal

Tel.: (351 21) 844 11 00

Fax: (351 21) 847 00 27

Instituto do Emprego e Formação Profissional

(Institute of Employment)

Av. José Malhoa, 11

1099-018 Lisbon, Portugal

Tel.: (351 21) 722 70 00

Fax: (351 21) 722 70 09

Ministério das Finanças

(Ministry of Finance)

Av. Infante D. Henrique, 1

1100-278 Lisboa, Portugal

Tel.: (351 21) 888 46 75

Fax: (351 21) 886 23 60

Gabinete do Secretário de Estado Orçamento

(Secretary of State for the Budget)

Av. Infante D. Henrique

1100 Lisbon, Portugal

Tel.: (351 21) 888 46 75

Fax: (351 21) 886 36 58

Direcção Geral de Estudo e Previsão

(General Directorate of Study and Prevision)

Rua da Alfândega, 5-2º

1100 Lisbon, Portugal

Tel.: (351 21) 881 11 95

Fax: (351 21) 887 82 27

Direcção Geral das Alfandegas

(Bureau of Customs)

Rua da Alfandega, 5

1149-006 Lisboa, Portugal

Tel.: (351 21) 886 81 85

Fax: (351 21) 887 83 35

Ministry of Justice (MJ)

Ministério da Justiça

(Ministry of Justice)

Praça do Comercio

1149-019 Lisboa, Portugal

Tel.: (351 21) 322 23 00

Fax: (351 21) 346 76 92

Registo Nacional das Pessoas Colectivas

(National Registry)

Praça Silvestre Pinheiro Ferreira, 1-C

Apartado 1501-803 Lisboa, Portugal

Tel.: (351 21) 774 12 75

Fax: (351 21) 778 3724 / 774 12 64

Ministry of Equipment, Planning and Territorial Administration (MEPAT)

Ministerio do Equipamento, Planeamento e Administracao do Territorio

Rua de S. Mamede ao Caldas, 21

1100-533 Lisboa, Portugal

Tel.: (351 21) 886 11 19

Fax: (351 21) 886 18 95

Secretario de Estado dos Transportes

(Secretary of State for Transportation)

Rua de S. Mamede ao Caldas, 21

1149-050 Lisbon, Portugal

Tel.: (351 21) 886 11 19

Fax: (351 21) 886 18 95

Secretário de Estado das Obras Publicas

(Secretary of State of Public Works)

Rua de S. Mamede ao Caldas, 21

1149-050 Lisbon, Portugal

Tel.: (351 21) 886 11 19

Fax: (351 21) 886 23 16

Secretaria de Estado da Habitação e Comunicações

(Secretary for Housing and Communication)

Rua de S. Mamede ao Caldas, 21

1149-505 Lisbon, Portugal

Tel.: (351 21) 886 50 77

Fax: (351 21) 886 23 00

Direcção-Geral de Aviação Civil

(General Directorate of Civil Aviation)

Ed. 4/6, Rua B, Aeroporto de Lisboa

1700 Lisbon, Portugal

Tel.: (351 21) 842 35 00

Fax: (351 21) 840 23 98

Direcção-Geral de Transportes Terrestres

(General Directorate of Surface Transportation)

Av. Forças Armadas, 40

1649-022 Lisbon, Portugal

Tel.: (351 21) 794 90 00

Fax: (351 21) 793 62 57

Instituto das Comunicaçoes de Portugal - ANACOM

(Portuguese Communications Institute)

Av. Jose Malhoa, 12

1099-017 Lisbon, Portugal

Tel.: (351 21) 721 00 14

Fax: (351 21) 721 10 01

Laboratório Nacional de Engenharia Civil

(National Laboratory of Civil Engineering)

Av. do Brasil, 101

1700-066 Lisbon, Portugal

Tel.: (351 21) 848 21 31

Fax: (351 21) 849 76 60

Instituto National de Estatística

(National Institute of Statistics)

Av. Antonio Jose de Almeida

1000-043 Lisbon, Portugal

Tel.: (351 21) 842 61 00

Fax: (351 21) 842 63 80

Fundação para a Ciência e a Tecnologica

(Science and Technology Foundation)

Av. D. Carlos I, 126-2º

1200-651 Lisbon, Portugal

Tel.: (351 21) 392 43 00

Fax: (351 21) 390 74 81

Ministério da Saude

Ministry of Health (MS)

Av. João Crisostomo, 9

1093 Lisbon, Portugal

Tel.: (351 21) 330 50 00

Fax: (351 21) 330 50 03

Secretário de Estado da Saúde

(Secretatry of State for Health)

Av. João Crisostomo, 9-5º

1000 Lisbon, Portugal

Tel.: (351 21) 354 45 60

Fax: (351 21) 353 66 87

Direcção Geral de Saúde

(General Directorate of Health)

Alameda D. Afonso Henriques, 45

1049-005 Lisbon Codex, Portugal

Tel.: (351 21) 843 05 00

Fax: (351 21) 843 05 30

Ministério da Defesa

(Ministry of Defense, National Directorate for Armament and Equipment)

Director Nacional do Armamento

e Equipamento

Avenida Ilha da Madeira 1

1400 Lisboa, Portugal

Tel.: (351 21) 301 00 01

Army:

Divisão de Logística (Logistics Division)

Estado-Maior do Exército

Rua Museu de Artilharia

1100 Lisboa, Portugal

Tel.: (351 21) 888 21 31

Navy:

Chefe de Divisão de Logística (Chief, Logistics Division)

Estado-Maior da Armada

Praca do Comércio

1100 Lisboa, Portugal

Tel.: (351 21) 347 62 38

Air Force:

Chefe da Quarta Divisão (Logistica)

(Chief of Logistics Division)

Estado-Maior da Forca Aerea

Avenida Leite de Vasconcelos

Alfragide

2720 Amadora, Portugal

Tel.: (351 21) 471 57 94

Offsets:

Empresa Portuguesa de Defesa (Portuguese Defense Co.)

(Empordef)

Avenida Júlio Dinis, 9-11

1050 Lisboa, Portugal

Investimentos, Comércio e Turismo de Portugal (ICEP)

(Portuguese Foreign Trade Institute)

Direcção de Desenvolvimento de Mercados

Avenida 5 de Outubro, 101

1050 Lisboa, Portugal

Tel.: (351 21) 790 95 00

#### Banks and Stock Exchange

Banco de Portugal

Rua Francisco Ribeiro, 2

1150-165 Lisbon, Portugal

Tel.: (351 21) 346 29 31

Fax: (351 21) 346 48 43

Bolsa de Valores de Lisboa

(Lisbon Stock Exchange)

Rua Soeiro Pereira Gomes

Edifico da Bolsa

1649-017 Lisbon, Portugal

Tel.: (351 21) 790 99 04

Fax: (351 21) 795 20 22

Bolsa de Valores do Porto

(Porto Stock Exchange)

Av. da Boavista, 3433

4149-017 Porto, Portugal

Tel.: (351 22) 618 58 58

Fax: (351 22) 618 55 66

**Publications**

The following publications are useful sources of economic and commercial
information:

Area Handbook for Portugal

Superintendent of Documents

U.S. Government Printing Office

Washington, D.C. 20402

TOP Export of Portugal

(English‑Portuguese)

Jovitur, Lda.

Av. Infante Santo, 23 3 B

1300 Lisbon, Portugal

Estatísticas Indústrias

(Industrial Statistics)

Anuário Estatístico

(Statistical Yearbook)

Estatísticas do Comércio Externo

(Foreign Trade Statistics)

Instituto Nacional de Estatística

Av. António José de Almeida

1000 Lisbon, Portugal

OECD Economic Surveys‑‑Portugal

OECD Publications Center

1750 Pennsylvania Avenue, N.W.

Washington, D.C. 20006

International Customs Journal ‑ Portugal

International Customs Tariff Bureau

Rue de l\'Association, 38

B‑1000 Brussels, Belgium

Business Report

Portugal‑U.S. Chamber of Commerce

590 Fifth Av., third floor

New York, NY 10036

Tel.: 212 354 4267/fax: 212 575 4737

The U.S. Commercial Service in Portugal also provides upon request
contact lists according to industry sector. Unscreened contact lists
will be assembled from directories published in Portugal. Screened
contact lists include evaluation by a commercial specialist for
suitability and currency of contact information, but will not include
direct contact with the listed company. To know more about this service,
please click on the following link:
<http://www.buyusa.gov/portugal/en/contact_lists.html>

## 

## 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/marketresearch.html 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.

The U.S. Commercial Service through the Customized Market Research (CMR)
service provides U.S. firms with customized, individualized information
on overseas markets. The service provides specific information for
specific products or services. For further details, please click on the
following link:

http://www.buyusa.gov/portugal/en/customized_market_research.html

A list of Market Research companies in Portugal may also be provided
upon request by the U.S. Commercial Service.

## 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.html>

<http://www.buyusa.gov/portugal/en/trade_events_in_portugal.html>

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# 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/portugal/en/>

[Return to table of
contents](#fy2007-doing-business-in-portugal-a-country-commercial-guide-for-u.s.-companies)

# 

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.