Optimizing the logistics chains supposes the analysis of several data and strategic elements that determine the most efficient routes, the proper placement of distribution centres or the redimensioning of logistics resources in order to maintain a balance between service level and costs. While in the past the essential development criteria of a logistics service depended on the state of the transport infrastructure, nowadays the key instruments in choosing a logistics chain are the non-infrastructural elements, which depend largely on the stability factors of the political and economic environment, such as the fiscal policy, governing behaviour predictability, diplomatic relations with neighbouring countries and the level of integration of several modes of transport.
Based on these trends, the European Gateways Platform (EGP) elaborated a White Paper on Logistics (WPL), in order to call on the European Union to adopt the necessary support measures of the European logistics network and eliminate the discrepancies in freight logistics between the Western World and Eastern Europe.
The White Paper on Logistics recognises the importance of infrastructures in developing an efficient and reliable logistics network at European level. The document supports the development of Black Sea ports (Constanţa, Varna, Burgas) and Danube ports (Tulcea, Budapest, Belgrade) as an alternative to the high traffic recorded in Western ports (Rotterdam, Hamburg, Brussels), as well as those on the river Rhine or other Western rivers which barely support the increased freight flow. At the same time, EGP draws attention on the non-infrastructural elements, which most of the time are used to differentiate between investing in one region or another. WPL has identified 5 major requirements which a country should fulfil in order to attract investors in the freight logistics sector: fast VAT recovery, simplification of VAT procedures in case of imports, simplification of customs procedures, open feedback from the authorities in terms of taxes and the possibility to benefit from foreign funds in the development of cross-border logistics chains.
VAT can attract or alienate importers
In conformity with the Romanian legislation, similar to other East-European countries, VAT recovery applies only in the case of companies which recorded a level of imports of at least RON 150 Million during the previous fiscal year. And it takes them a long time to get back the entire amount. Many companies decided to invest in other Western countries and avoid Romania and its neighbouring countries in order to avoid the advanced payment of the VAT. The White Paper on Logistics proposes a non-discriminatory VAT recovery for all importers, irrespective of the import value, as well as the immediate VAT recovery following transactions. Another major issue related to the VAT is the mandatory condition imposed on every company which imports freight to and from Romania to register as a VAT payer in Romania. This measure discourages investors (especially non-EU investors) from carrying freight through Romanian ports and forces them to choose other countries which have more simplified regulations on VAT payment.
Eliminating this mandatory condition will generate more freight through Romanian ports and also reduce bureaucracy.
In Romania, unlike other countries such as the Netherlands or Germany, there isn’t the possibility of postponing customs taxes on imports. Western countries eliminate the guarantee for the postponed payment in case of companies that have a reduced value of imports. Although the Romanian legislation provides the possibility of postponing the payment, a proper code of procedure does not exist. Currently, a very small number of companies benefit from this measure. A more efficient legal system will help reduce tax evasion.
The White Paper on Logistics also includes other measures meant to optimize the logistics chains, such as: redirecting customs formalities to other inland units and simplifying these operations in freight ports, promoting transport intermodality and integrating the various modes of transport (by introducing the single electronic consignment note for all the modes of transport involved, eliminating bureaucracy, using international languages to facilitate communication between customer and suppliers, elaborating joint development strategies at government level), favouring one mode of transport to the detriment of another, generating fiscal imbalance, supporting education in the field of integrated logistics and financing speciality courses for customs and port employees etc. All these measures should be equally promoted by the European Union in case of all new member states from Eastern
Europe.
by Alin Lupulescu
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