작성일자: 2013.8.30

작성자: 암스테르담 무역관 임성아 (salim@kotra.or.kr)

1. Market Trend

□ Food Systems Industry

 ○ The Dutch market is still heavily affected by the economic crisis. According to Central Bureau Statistics (2013), the number of companies filing for bankruptcy increased from 669(June) to 779(July) and reached the highest level since the beginning of the economic crisis in 2008. In addition to the economic crisis, a survey conducted by Berenschot Consultancy Firm(Agrofood Strategy Trends, 2013) on the food processing industry concluded that most important strategic subjects for the next few years will be sustainability, price competition, innovation research & development, changing regulations and branding image, meaning that Korean companies aiming to target this market should be aware of this trend, in order to succeed.

 ○ The industry is currently characterized by very limited number of distributors. However, there is an intensive collaboration between agricultural sector, food processing, food equipment suppliers, with solid support of knowledge institutes such as Wageningen University & Research Center.

 ○ GMV is a body representing Dutch manufactures of food systems. Its aim is to strengthen the position of the sector domestically and in foreign markets. According to GMV, the total turnover of the Dutch food processing and packaging machinery industry is estimated at 2.5 billion Euros, and that about 70% of the food processing machinery produce locally is exported to foreign countries. The top five exporting countries (From Netherlands) over the past five years are Germany, China, Russia, USA, France and Great Britain.

2. Import Trend

Import other machine and apparatus to the Netherlands

     (Unit: USD million, %)

Source: World Trade Atlas

Imports Electrical Machines and Apparatus, Having Individual Functions

                                                                                                     (Unit: USD million, %)

Source: World Trade Atlas

□ Import rank

 ○ Despite the economic crisis, the amount of machinery imported to the Netherlands increased meaningfully between 2011 and 2012. China occupies the leading import position (To the Netherlands) for several years, followed by Hong Kong and Germany consecutively.

 ○ Korea occupies the 22th place in the ranking of import of machines to the Netherlands with an increase of 20.4% between 2011 and 2012. This increase might be attributable to the new trade agreements that came into force in 2011.  

3. Tariffs & Regulations  

□ Guidelines

 ○ Handboek VGEM(Manual Safety, Health, Economy and Environment) provides explanation on legal requirements for safety, health, economy and environment in relation to permits.

 ○ According to Handbook VGEM, permit requirement is imposed neither on metal detectors nor on check weigher.  

 ○ In addition, according the Taric-code, no import tariff is imposed on metal detectors and check weigher imported from South Korea (Since 01-07-2011). Import of metal detectors and check weigher are only subjected to VAT, which is usually paid by the entrepreneur itself.

 ○ Importing outside the EU automatically implies that importers have to pay Dutch VAT regardless the product. The VAT rate on imported goods is equal to the VAT rate for domestically produced goods, (except for art, antiques and collectibles) which is valued at 21%.

4. Conclusion

 ○ The aim of this report is to analyze current import trend and tariffs imposed on Korean manufacturers of metal detectors and check weigher. We’ve looked at the current market trends to understand the effect of the economic crisis, how business are being affected, and what strategic choices business will focus on in order to become more competitive in the near future.

 ○ Evidences from our desk research shown that the effects of the economic crisis are still feasible and that many entrepreneurs are stagnant having hard times to survive. Evidences also indicate that the future trend for manufactures of food systems will be focus on price, innovation, sustainability and brand imaging, meaning that Korean manufactures aiming to gain competitive advantage in the Dutch market should at least include those elements in their strategic choices. In addition, Dutch manufactures are consistent in taking opportunities arising from abroad, which leads us to question the attractiveness of the domestic market. China, Brazil and Russian among others, are considered to be the most promising countries for Dutch food systems manufactures.

 ○ Finally, when looking at the import trends, our findings indicates that China, Hong Kong and Germany represent the top three in the ranking of import to the Netherlands with a significant magnitude comparing to Korea. Based on these findings a conclusion can be drawn that China and Germany in particular have demonstrated a great ability to remain competitive in this particular area of business, and that no permits or tariffs is imposed on metal detectors and check weigher imported from Korea since 01 July 2011.