Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 7/1/2019
Belgian importers are relatively small and tend to press for the most lenient credit terms possible, since they have fewer sources of inexpensive capital.  Belgian importers are also accustomed to being offered flexible payment terms, particularly from neighboring trading partners such as France, Germany, the Netherlands, the U.K., Switzerland, and, to a lesser extent, Italy.  Extended payment terms of 30, 60, 90 and even 120 days are not unusual, though the most common payment term is 30 days.  Belgian businesses however, like many European ones, routinely delay payment beyond the agreed upon terms.  In Belgium, 43 % of all payments are not made by their anticipated due date, although 80 % of these are paid within the 30 days following the original deadline.  In short, 91 % of all payments by Belgian businesses are made within 60 days.  This is a better record than Italy’s or the U.K.’s, and on par with France and the Netherlands.

Since the use of credit is widespread, offering more flexible credit terms can be an important factor in winning sales contracts in Belgium.  U.S. firms should consider this option, provided they are able and willing to offer such terms, and have done a full credit check on the Belgian company.  Even then however, it is advisable to try several shipments on a secured credit basis before moving to more lenient terms.  There are several local credit reporting agencies available, including Dun & Bradstreet and Graydon.

Import duties and value added tax (VAT) are applied to the CIF (Cost Insurance Freight) value of goods.  The rate of import duties is the same rate as applied by all EU countries.  Since products coming from other EU member states enter Belgium duty free, U.S. products often start off with an average 5-6 % price disadvantage.  By offering favorable credit terms, U.S. suppliers can help their importers offset a portion of that disadvantage.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.