Ireland has proved to be a stepping stone to Europe for many US companies looking to expand their sales into the EU Single Market, with its approximately 460 million customers. As the EU’s only English-speaking country, Ireland offers a strategic base with its competitive tax regime, skilled workforce, and thriving innovation ecosystem. Its strong economy and seamless access to European markets make it a leading destination for international investors.
Importing into Europe on a country-by-country basis (or Member state-by-member state basis) can be a complex operation with 27 different customs authorities, 27 different customs systems and a myriad of languages and brokers to contend with. Using Ireland, however, as a first step into Europe allows companies to import into one Member State, clear customs here in Ireland, and then have full access to the EU without further customs requirements.
Internally, VAT may still need to be accounted for, but this simplifies the process. Indeed, this is about to become easier in the coming years as the EU focuses on a Single Customs Clearance system, which will allow companies to physically import into any Member State but make one customs declaration through their head office.
Added to this is the fact that Europe increasingly demands a company have a presence in Europe to access the market. Without such a presence it is almost impossible to engage a clearance agent to act on your behalf. If you are not established here, then the clearance agent has to take on joint and several liability which is not something most agents will do.
Along with this, there are, in many industries, a requirement for an EU “representative” to ensure compliance with EU Health and Safety requirements. For example, to import beauty products into Europe, you will need a Responsible Person with an EU address who must maintain at their address the relevant product safety files.
Finally, we have the various EU regulations around sustainability and the import requirements relating to CBAM, Deforestation, Packaging Laws, etc. Again, it is easier to deal with one country on those issues and, in particular, for US companies, an English-speaking country.
Ireland has, as a result, built a strong reputation as a leading jurisdiction in which to scale internationally. Ease of doing business, political stability, EU and Eurozone Membership and a highly educated, flexible and productive talent pool alongside a favourable tax regime tend to be the areas that score highly in any international comparisons that are conducted.
Familiarity of language, laws and local customs can go a long way to making a success of doing business internationally