GENERAL INTRODUCTION :

With an area of 356,900 sq.kms and with a population of 78.47 million (as per 1991 census), Germany is a powerful economy in the EU. Germany is the second largest importer in the world after USA. The free-market economic policy and liberal import policy ensure that the consumer market in Germany is for the reasonably priced range of goods. Germany is a buyer's market and it is not easy to break into the German market. Only competitive offers coupled with a long-term marketing effort are likely to pave the way for lasting and rewarding involvement in the German market.

The German government is taking positive steps to promote and increase imports from developing countries. However, free market forces remain the determining factor. One of the special characteristics of the German market is the pronounced quality-consciousness of the consumer. Quality, design and packaging are very often more important than price. Moreover, in the case of technologically sophisticated goods important requirements for achieving commercial success are provision of an adequate maintenance and repair service and conformity with German industrial standards and specifications
Imports from developing countries constitute over 20% of the Germany's total purchases from abroad. The rapid rise in exports of manufactured goods by developing countries has been favoured by the general preferential tariffs of the European Community. Within the EC, the German government in particular champions a broadening of these preferences, plus additional trade concessions for developing countries.

ECONOMY:

The German economy is characterised by a high degree of industrialisation, strong emphasis on foreign trade and a high degree of integration into the world economy. The economic potential and dynamic growth are based on the highly diversified structure of its economy. Its large export capacity is due to the technological and economic efficiency of the industrial sector. In the last few decades, the importance of agricultural sector has declined, although large areas of Germany are still basically agricultural in nature.
With very few exceptions, where the competition is more or less limited, the State has reserved the right to intervene in pricing (agriculture, transport charges, professional fee scales, energy prices, insurance premium etc.), there are no price controls and no control of private investments. On one hand, Germany's manufacturing industries, known for their competitiveness, particularly in the field of high technology products are highly export oriented. On the other hand the country is heavily dependent on imports of a large number of primary and agricultural products. This is partly due to natural, ecological & climatic factors and partly due to structural factors. However, in the past few years, imports of finished and semi-manufactured goods have risen as well.

IMPORTING ENVIRONMENT

The buying power of German consumers, measured by the net income per inhabitant, is an extremely interesting figure for exporters. Basically the level of disposable income per person is very high in metros.

IMPORTS FROM INDIA:

In spite of an increase of 7.08% in 1992, Indian exports to Germany suffered a decrease of 2.94% while imports from Germany on the other hand went up by 18.68%. Items like cotton fabrics, madeups, garments, and fabrics of silk 8 rayon and synthetic fibers, precious and semiprecious stones, cotton yarn, jute, chemicals and pharmaceutical products have registered a decrease whereas items like engineering goods, tea, cotton knitwear, wool and animal hair products (mainly carpets) registered an increase.

IMPORT OF GOODS INTO THE FRG

Unless provided otherwise in the "Import List", goods can be freely imported without any quantitative restrictions and do not require an import license. Non-liberalised goods can be imported only in limited quantities. Imports are permitted up to the limits of the quotas. The quotas are publicly announced and require an import license. The storage, transshipment, packaging and processing facilities as well as the other services rendered in a free port are available to domestic and foreign firms, businessmen and foreign bodies leg. export promotion offices. In a free port, goods can be stored, processed, traded, loaded, unloaded or reloaded, transported, assembled, converted, repaired, bottled or packed, pending reforwarding (to a destination within the customs territory of Germany, or to another country by vessel), without obtaining any import license, import declaration or by payment of Import levies. After the customs formalities have been completed, the goods can also be imported from the free port into the Customs territory. The users of free port facilities (Importers, exporters, entrepot traders, free port industries) can send the goods directly to the warehouses, to other buildings or open air storage areas.

PACKAGING :

Packaging of all products sold in the ERG is regulated by the new Waste Avoidance and Waste Management Act. This law aims at protecting the environment by substantially reducing package material for goods sold in Germany by local and foreign suppliers alike.

CHANNELS OF DISTRIBUTION:

The highly developed, efficient and dynamic distribution system in the FRG offers the foreign exporter a wide choice regarding the selection of the channel through which he wants to sell his products. There are no particular regulations which stipulate that a foreign supplier must choose certain form of distribution. The choice depends solely on his individual requirements, based on the types of goods offered and the export and marketing strategy adopted by him.
The following organisation can offer advice on commercial information :

Bundassrelle fur Aussenhandels information (BFAI),
(Federal office of Foreign Trade Information)
Agrippastrasse 87-93, P.O. Box. 100 522,
50445 COLOGNE
Tel :(49221) 20570
fax:(49221) 2057212
Telex : 8882735

2. Deutscher Industrie-und Handelstag (DIHT),
(German association of chambers of commerce and Industry)
Adenauer Allee 148, P.O. Box 1446, 53004 BONN
Tel: (49228) 1040
Fax: (49228) 104158
Telex: 886805 diht d