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U.S. Department of State
Austria FY 1996 Country Commercial Guide
Office of the Coordinator
The Commercial Service
American Embassy
Vienna, Austria
TABLE OF CONTENTS
Chapter I Executive Summary
Chapter II
Economic Trends and Outlook
A. Major Trends and Outlook
B. Principal Growth Sectors
C. Government Role in the Economy
D. Balance of Payments Situation
E. Infrastructure Situation
Chapter III
Political Environment
A. Nature of Bilateral Relationship with the U.S.
B. Major Political Issues Affecting the Business Climate
C. Synopsis of Political System, Schedule for
Elections and Orientation of Major Political Parties
Chapter IV
Marketing U.S. Products and Services
A. Distribution and Sales Channels
B. Use of Agents/Distributors; Finding a Partner
C. Franchising
D. Direct Marketing
E. Joint Ventures/Licensing
F. Steps to Establishing an Office
G. Selling Factors/Techniques
H. Advertising and Trade Promotion
I. Pricing Products
J. Sales Service/Customer Support
K. Selling to the Government
L. Protecting Your Product from IPR Infringement
M. Need for a Local Attorney
Chapter V
Leading Sectors for U.S. Exports
A. Best Prospects for Non-Agricultural Products
B. Best Prospects for Agricultural Products
Chapter VI
Trade Regulations and Standards
A. Tariffs and Import Taxes
B. Non-Tariff Barriers and Import Licenses
C. Export Controls
D. Import/Export Documentation
E. Labeling/Marking Requirements
F. Prohibited Imports
G. Agricultural Imports
H. Standards
I. Free Trade Zones/Warehouses
J. Special Import Provisions
K. Membership in Free Trade Arrangements
Chapter VII
Investment Climate
A. Host Country Policies and Practices
1. Openness to Foreign Investment
2. Conversion and Transfer Policies
3. Expropriation and Compensation
4. Dispute Settlement
5. Performance Requirements/Incentives
6. Right to Private Ownership
7. Protection of Property Rights
8. Regulatory System: Laws and Procedures
9. Efficient Capital Markets and
Portfolio Investment
10. Political Violence
B. Bilateral Investment Agreements
C. OPIC and other Investment Insurance Programs
D. Labor
E. Foreign-Trade Zones/Free Ports
F. Capital Outflow Policy
G. Foreign Direct Investment Statistics
H. Major Foreign Investors
Chapter VIII
Trade and Project Financing
A. Synopsis of Banking System
B. Foreign Exchange Controls Affecting Trade
C. General Financing Ability
D. How to Finance Exports/Methods of Payment
E. Types of Available Export Financing and Insurance
F. Project Financing Available
G. List of Banks with Correspondent U.S.
Banking Arrangements
Chapter IX
Business Travel
A. Business Customs
B. Travel Advisory and Visas
C. Holidays
D. Business Infrastructure
Chapter X
Appendices
Appendix A. Country Data
Appendix B. Domestic Economy
Appendix C. Trade
Appendix D. Investment Statistics
Appendix E. U.S. & Austrian Contacts
1. Austrian Government Agencies
2. Austrian Trade Associations/Chamber of Commerce
3. Austrian Market Research Firms
4. Austrian Commercial Banks
5. The Commercial Service
6. Washington-Based U.S. Government Contacts
7. U.S.-Based Multipliers
Appendix F. Market Research
1. Foreign Agriculture Service Commodity
Reports/Market Briefs
2. Department of Commerce Industry
Subsector Analyses
Appendix G. Trade Event Schedule
1. Schedule Agricultural/Food Trade Events
2. Schedule Trade Events of the Commercial
Service Vienna
This Country Commercial Guide (CCG) provides a comprehensive overview of
Austria's commercial environment through economic, political, and market
analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually by U.S. overseas
missions through the combined efforts of several U.S. government
agencies.
CHAPTER I. EXECUTIVE SUMMARY
The Republic of Austria is a stable, affluent, parliamentary democracy
located in the center of Europe, bordering Switzerland, Liechtenstein,
Germany, Italy, Hungary, Slovenia, Slovakia, and the Czech Republic.
Austria has a population of just over 8 million people, 98 percent of
which are German-speaking.
The Austrian economy is fully mature and open. Spurred by strong
exports, 1995 GDP is expected to reach USD 207.9 billion, reflecting a
real growth rate of 2.7 percent over 1994 and a per capita GDP of USD
25,832. Future moderate growth is expected in the coming years.
Inflation and unemployment rates are both low.
On January 1, 1995, Austria acceded to the European Union (EU), a move
which is expected to stimulate the economy over the next several years.
Trade with other EU countries accounts for about 60 percent of Austrian
imports and exports. Expanding trade and investment in the emerging
markets of Central and Eastern Europe is another source for Austrian
economic growth. As one of the most important trading partners and
investors in the region, Austria stands to benefit greatly from its
geographic, cultural, and business ties to these markets in transition.
As a member of the EU, Austria has adopted the EU integrated tariff
regime (TARIC), with an average duty rate on manufactured goods of 5.44
percent. As a result of this change, approximately 63 percent of all
existing tariffs were lowered, while approximately 31 percent were
increased. New or increased tariffs on some important U.S. exports to
Austria, including computers, electronic components, and photographic
equipment, are expected to come into effect on January 1, 1996.
Austrian national standards are in the process of being harmonized with
those of the EU. For some categories of goods, including machines and
children's toys, the EU certification (CE mark) is required; for others,
existing national standards apply. Testing and certification procedures
are generally transparent in Austria. Problems can arise, however, when
seeking certification of state-of-the-art technologies.
The investment climate in Austria is favorable, with no formal sectoral
or geographic restrictions. The Government of Austria generally
welcomes all foreign direct investment, with no discrimination against
foreign investors. In most business activities, 100 percent foreign
ownership is permitted. Investment incentives are abundant. In
addition to EU incentives covering approximately 41 percent of Austrian
territory, financial incentives are offered by federal, provincial, and
local governments, as well as other institutions.
The United States enjoyed a trade surplus with Austria of USD 841
million in 1994, a figure which is expected to grow to over 1 billion as
the Austrian economy continues its expansion and the Central/Eastern
European markets grow stronger. U.S. products make up about 4.4 percent
of total Austrian merchandise imports. In addition, a significant
percentage of transit imports that are re-exported to Central/Eastern
Europe are of U.S. origin. The most promising sectors for U.S.
manufactured exports are primarily in the high-tech, high-value
categories, including computers and peripherals (expected annual growth
through 1996: 15 percent), computer software (expected annual growth
rate through 1996: 10 percent), drugs and pharmaceuticals, electronic
components, aircraft and parts, travel and tourism, industrial
chemicals, medical equipment, telecommunications equipment, and
pollution control equipment. The most important U.S. agricultural
exports to Austria continue to be tobacco and cotton.
There are currently 296 U.S. firms with subsidiaries, affiliates, or
licensees in Austria. Approximately 2,000 firms are represented through
agents and distributors. Several U.S. companies have also established
Central/Eastern European headquarters in Austria.
In order to help U.S. firms achieve the greatest benefit from their
European trading arrangements, the U.S. Commercial Service in Vienna
cooperates closely with other U.S. Commercial Service posts throughout
Europe within the framework of the Showcase Europe program. All
European posts are working together to strengthen the American presence
in Europe, focusing on network-building, trans-border trade development,
and advocacy. Austria plays a key role in this effort, especially as
relates to the integration of the emerging economies of Central and
Eastern Europe into the world economy. In addition to fielding daily
inquiries from American exporters and Austrian importers, and the
compilation of market research analyses of the major industrial growth
sectors in the Austrian market, the Commercial Service in Vienna is
planning several regional events for 1995-96, including the Showcase
Europe/Gateway to Eastern Europe Matchmaker Trade Mission (September 26-
27, 1995), the Showcase Europe/Council of American States in Europe
Trade Day (May 9, 1996), and the Showcase Europe/Environmental
Technology Seminar (June, 1996).
Country Commercial Guides are available on the National Trade Data Bank
on CD-Rom or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides via
the internet, please use the following World Wide Web address:
[WWW.STAT-USA.GOV]. CCGs can also be ordered in hard copy or on
diskette from the National Technical Information Service (NTIS) at 1-
800-553-NTIS.
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
A. Major Trends and Outlook
Dependent on foreign trade, Austria has an open economy closely linked
to the economies of other European Union (EU) member countries,
especially Germany. Since the early 1980's, the Austrian economy has
experienced stable growth. Following a mild recession in 1993, during
which its real GDP shrank 0.1 percent, Austria's economy, driven by
strong exports, investment, and private consumption, expanded 2.7
percent in 1994. Industrial production, retailing, and construction
performed better than predicted, while tourism suffered a decline.
During the period 1995-96, the Austrian economy is expected to continue
growing at a moderate but steady rate of 2.5-3.0 percent.
Austria's accession to the EU on January 1, 1995, is expected to spur
investment, employment, and growth, both by providing access to the
single market and by fostering liberal policies to promote competition
and dismantle protectionism. The economic opening of Central and
Eastern Europe is expected to have a similar stimulative effect.
Austria's EU accession already has had a positive impact on foreign
investment, attracting firms already positioned to market in the EU and
seeking convenient access to emerging markets of Central and Eastern
Europe. However, at the same time, the effects of a strong Austrian
Schilling (AS) on exports and the need for the Government of Austria to
implement demand management policies may limit growth prospects over the
longer term.
Although losing ground in the October 1994 elections, the two governing
parties--the Social Democratic Party (SPO) and Conservative Peoples'
Party (OVP)--managed to form another four-year "grand coalition"
government. The principal challenges facing the new government will be
to implement an ambitious austerity plan to reduce the budget deficit
and to press ahead on deregulation, liberalization, and restructuring.
Reducing the budget deficit is necessary for Austria to join the
European Monetary Union (EMU) and to sustain foreign investor
confidence. Although Austria's economy has become more liberal and
open, compared to other OECD countries, it is still characterized by
rigidities, barriers to market entry, and an elaborate regulatory
environment. A restructuring of Austrian industry is needed to attract
more potential foreign partners and to meet increased competition from
both the EU and Central European countries. Less competitive low-tech
production will have to shift towards more specialized value-added
manufacturing. To improve efficiency and resource allocation, the
service sector, particularly telecommunications, will have to be
deregulated and liberalized.
Pegged to the German Mark for more than fifteen years, the Austrian
Schilling in 1994 appreciated against the dollar and many other European
currencies. Despite complaints from exporters, the Austrian National
Bank (ANB) reaffirmed its long-standing "hard Schilling" policy. As a
new member of both the European Monetary System (EMS) and Exchange Rate
Mechanism (ERM), the ANB has voiced its opposition to any relaxation of
the strict economic criteria for establishment of the Economic and
Monetary Union (EMU) and the introduction of a common European currency.
In 1994, U.S. exports to Austria rose 10.5 percent, attaining an import
market share of 4.4 percent. Although enhancing Austria's
attractiveness as a market for U.S. exports, EU membership also has
brought changes in the market environment. Some U.S. exporters,
particularly those in the data processing hardware and semiconductor
sectors, may be disadvantaged by higher customs tariffs and contingent
regulations. Other U.S. exporters should benefit from lower tariffs.
In some product lines, U.S. exporters can expect stiffer competition
from EU suppliers.
B. Principal Growth Sectors
The service industries, except tourism, and the high-tech manufacturing
industries, are the principal growth sectors in Austria.
C. Government Role in the Economy
In 1994, the overall tax burden, including mandatory social insurance
contributions, reached 43.4 percent of GDP. State-owned industries
employ 15 percent of the industrial workforce and account for 20 percent
of exports. On-going privatization of state-owned industries, as well
as EU policies to promote competition and to reduce state-provided aid,
are expected to reduce the government's role in the economy. Beginning
in 1996, the federal railroads and the postal authority, as independent
public-sector companies, will no longer have access to the government
budget.
Although economic growth was stronger than expected in 1994, the budget
deficit reached 4.7 percent of GDP compared to the targeted level of 3.7
percent, due to a continuing rise in personnel and social expenditures,
as well as shortfalls in tax and privatization revenues.
The new coalition government has launched a "working program" to sustain
investor confidence in the hard Schilling policy and to meet the
Maastricht Treaty requirement for a public sector deficit of less than 3
percent of GDP in order to participate in the planned Economic and
Monetary Union . As such, the 1995 budget, which projects a deficit of
4.3 percent of GDP, is the first in a series of planned austerity
measures. In addition to gasoline and other tax increases, cutbacks are
slated for family and investment allowances, civil service positions,
and business subsidies. Mild reductions are anticipated even in the
previously "untouchable" social system, which accounts for the largest
proportion of government expenditures.
D. Balance of Payments Situation
After years of being in rough balance, the Austrian current account
balance has shown a downward trend, falling steadily from a small
surplus in 1991 to a deficit of AS 22.3 billion (one percent of GDP) in
1994. Economists see little or no prospect of reversal of this trend in
the near future. Deficits of AS 23-26 billion are predicted in 1995 and
1996, with some worst-case estimates as high AS 40 billion, given the
appreciation of the Schilling.
While some of the deterioration can be attributed to special factors
(such as the fast economic recovery and recent turbulence in foreign
exchange markets that have led to a sharp appreciation of the Shilling),
underlying this trend are a number of structural problems in both
manufacturing and tourism. Despite a strong increase in exports, the
recovery has induced an even stronger import growth, causing the trade
deficit to rise. The failure of Austrian industry to broadly diversify
and develop high tech manufacturing is another area of concern affecting
future export trade. Another structural problem is the growth in
government transfer payments that have bolstered disposable income and
import demand. Finally, in the service account, high costs, market
saturation, and changing vacationing habits of both EU tourists
(primarily Germans) coming to Austria and of Austrians travelling abroad
call into question whether tourism can continue to make the same
contribution to balancing the traditional trade deficit as it has in the
past.
Balance of payments data show a 1994 increase of AS 14.2 billion in
Austrian direct investment abroad. Foreign direct investment in Austria
increased AS 15 billion in 1994 and AS 9.0 billion in 1993.
E. Infrastructure Situation
Austria has a modern communications and transportation system. An
extensive highway system provides convenient access to major European
industrial centers and ports. The Austrian railroad offers efficient
passenger and freight service. Modernization plans will introduce in
the near future higher-speed rail service. Several carriers offer
direct flights from the Vienna International Airport to U.S.
destinations. The telecommunications network is sophisticated and
reliable, though expensive.
CHAPTER III. POLITICAL ENVIRONMENT
A. Nature of Bilateral Relationship with the U.S.
Austria's bilateral relationship with the United States is excellent.
Austria's political leaders and people recognize and appreciate the
essential role played by U.S. economic assistance through the Marshall
Plan after World War II, and the role played by the United States in
promoting the conclusion of the Austrian State Treaty in 1955.
Austria maintains an embassy in the U.S. at 3524 International Court,
NW, Washington, DC 20008 (Tel. 202-895-6700). Consulates are located
in New York, Chicago, and Los Angeles, with honorary consulates in
Atlanta, Boston, Buffalo, Cleveland, Denver, Detroit, Honolulu, Houston,
Miami, New Orleans, Newark, Philadelphia, San Francisco, San Juan,
Seattle, and St. Paul.
B. Major Political Issues Affecting the Business Climate
The 1955 Austrian State Treaty ended the four-powers occupation
following World War II and recognized Austria as an independent and
sovereign state.
Austria shapes its foreign policy on the basis of neutrality, redefined
in the context of participation in the European Union's evolving
security architecture. However, Austria also joined Partnership for
Peace in 1995, and there is some discussion on NATO membership as one of
several options for future Austrian security policy. Austrian leaders
also emphasize the unique role the country plays as a link between East
and West, and as a moderator between the industrialized and developing
countries. Austria is active in the United Nations and in UN
peacekeeping efforts. It attaches great importance to participation in
the Organization for Economic Cooperation and Development and other
international economic organizations, and has played an active role in
the Conference on Security and Cooperation in Europe.
Vienna is the headquarters of the International Atomic Energy Agency
(IAEA) and the UN Industrial Development Organization (UNIDO). Other
international organizations based in Vienna include the Organization for
Petroleum Exporting Countries (OPEC) and its Fund for International
Development, and the International Institute for Applied Systems
Analysis (IIASA).
Austrians maintain a constant exchange of business representatives,
political leaders, students, cultural groups, and tourists with the
countries of Central and Eastern Europe. As a result, Austrian
companies are very active in investing and trading with the countries of
Central and Eastern Europe. In addition, the Austrian government and
various Austrian organizations provide assistance and training to
support constructive changes underway in the region.
C. Synopsis of Political System, Schedule for Elections and Orientation
of Major Political Parties
Austria is a parliamentary democracy. The Chancellor is the Head of
Government and the President is the Head of State.
The Federal Assembly (parliament) is composed of two houses -- the
National Council (Nationalrat) or the lower house and the Federal
Council (Bundesrat), or upper house. Virtually all legislative
authority is concentrated in the National Council. Its 183 members are
elected for a maximum four year term, according to a complicated system
of proportional representation. The National Council may dissolve
itself by a simple majority vote or it may be dissolved by the president
on the recommendation of the chancellor. The Federal Council consists
of 64 members elected by the legislatures of the nine provinces for four
to six year terms. Seats are allocated on the basis of population, with
each province guaranteed at least three. The Federal Council is
restricted to reviewing legislation passed by the National Council, and
has only delaying, not absolute veto, powers.
The highest courts of Austria's independent judiciary are: the
Constitutional Court, which has jurisdiction over constitutional
matters, the Administrative Court, which handles bureaucratic disputes,
and the Supreme Court, for civil and criminal cases. Cases initiated in
the Administrative and Supreme Courts can be appealed to the
Constitutional Court. Justices of the three courts are appointed by the
president for specific terms.
Austria's nine Laender (provinces) are headed by governors elected by
the provincial legislatures. Although most authority, including police,
rests with the federal government, the provinces have considerable
responsibility for welfare matters and supervision of local
administration. Strong provincial and local loyalties are based on
tradition and history.
Principal officials:
Federal President Thomas Klestil
Federal Chancellor Franz Vranitzky
Vice Chancellor/ Wolfgang Schuessel
Foreign Minister
Ambassador to the United States Helmut Tuerk
Ambassador to the United Nations Ernst Sucharipa
Austria has enjoyed political stability since World War II. The two
major parties, the People's Party (OVP) and the Social Democrats (SPO),
have the support of the majority of the electorate. Three opposition
parties -- the Freedom Party, the Liberal Forum, and the Greens --
together poll about 36 percent of the vote. Extremist parties have had
virtually no influence on government policy, and usually receive less
than one percent of the vote.
The SPO traditionally draws its constituency and much of its strength
from the urban and industrialized areas. In the past, the party
advocated heavy state involvement in Austria's key industries, the
extension of social security benefits, and a full-employment policy. In
the mid-1980s, the party began to advocate free market-oriented economic
policies and balancing the federal budget.
The OVP's traditional constituency has been among farmers, big and small
businesses, and lay Catholic groups. It's center of strength is rural
Austria. In economic matters, the party advocates conservative
financial policies and privatization of much of Austria's nationalized
industry.
The Freedom Movement attracts those who desire no association with the
two major parties. Recently, the party's mixture of populism and anti-
establishment themes have won increased support. Nationally, it
attracted 23 percent in the 1994 elections. The Liberal Forum split
from the Freedom Party in February 1993 and reached 5.7 percent in the
1994 election. The Greens, a left-of-center party focusing on
environmental issues, received 7 percent.
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
A. Distribution and Sales Channels
Austria can be divided into five marketing areas:
1) Vienna, the capital, and vicinity;
2) pre-alpine provinces: Styria, Lower Austria and Upper Austria;
3) alpine provinces: Carinthia, Tyrol and Salzburg;
4) Vorarlberg in the mountains in the west;
5) the eastern flatlands of Burgenland.
Several distribution channels are open for U.S. goods to enter the
Austrian marketplace, including wholesaling and retailing, as well as
franchising, joint ventures and licensing.
Austria also serves as a unique western gateway to the markets of
Central and Eastern Europe by virtue of its advantageous location,
political neutrality, and its historical, cultural, and linguistic ties
to the region. Numerous organizations in Austria offer expertise on
trading and investing in these countries.
B. Use of Agents/ Distributors; Finding a Partner
A foreign individual, partnership, or corporation may do business in
Austria through an agent. If the agent is a citizen of the United
States or another foreign country, the relationship between agent and
principal is most likely governed by agency law in that country; if the
agent is a citizen of Austria, this relationship is subject to Austrian
law.
Under Austrian law, a distinction is made between an agent employed by
the principal (Handlungsvollmaechtigter), and an agent acting
independently (Handelsagent). Although both transact business in the
name of and for the account of the principal, there are some differences
that should be kept in mind.
The Handlungsvollmaechtigter has the authority to carry out all
transactions that are normally required in the principal's business.
However, he or she is not permitted to sell or encumber real estate, to
sign bills of exchange, to lend money, or to engage in legal
proceedings, unless specifically authorized by the principal to do so.
The Handelsagent may be given authority to enter into transactions for
the principal which require approval from the principle. It is also
possible to confer the authority to enter into transactions without
approval from the principle.
Both kinds of agents are entitled to commissions for transactions
entered into during the period of their agency. Commissions are due
when the principals have carried out their part of the transaction.
Agents appointed for a particular area or a predefined clientele are
also entitled to commissions for transactions made without their
efforts. Agencies can be terminated by either the principal or agent
without notice.
C. Franchising
Franchising in Austria is currently one of the fastest growing and
profitable sectors. In only a few years, the market has grown from some
30 franchising organizations to approximately 200, with about 3,000
outlets, in 1994. About half of all the franchising systems are of
foreign origin. EU membership and the opening of Eastern European
markets make Austria especially attractive to western franchising
companies.
Major franchise operations in Austria involve cosmetics, apparel,
restaurants and fast food, tanning studios, health clubs, language
schools, financial consultants, training, cleaning services, auto repair
shops, hair salons, shoe repair, hobby shops, home improvement centers,
soft drink filling companies, sewing machine companies, photo studios
and shops, auto sales and rental, hotels, jewelry stores, food stores,
and toy stores.
D. Direct Marketing
Some U.S. companies have established themselves in the Austrian market
with home sales, including Tupperware and Amway. A handful of Western
European companies are successfully engaged in catalog sales. Telephone
and direct mail solicitation, though increasingly in evidence, are
discouraged by Austrian law.
E. Joint Ventures/Licensing
Joint ventures may be formed as companies, partnerships or other forms
for doing business in Austria. One common form for joint ventures is
the civil law association. Such an association is not a legal entity,
and participants are jointly liable for its debts.
Licensing has become increasingly common in Austria, partly as a means
for foreign companies to transfer technology and to stay competitive in
the face of steadily rising transportation costs. Royalty and license
fee payments may be freely transferred out of Austria. Several
important licensing agreements have transferred Austrian technology to
the United States.
F. Steps to Establishing an Office
Many choices are available to the potential investor when setting up a
business operation in Austria. These include public corporations,
limited liability companies, limited or unlimited commercial
partnerships, silent partnerships, branches of foreign enterprises,
cooperative societies, and sole proprietorships. Most foreign-owned
businesses choose to operate in the form of a limited liability company
(Gesellschaft mit beschraenkter Haftung - GesmbH), as it is simpler to
form than other types of business operations. The repatriation of
capital and earnings encounters no difficulties. A Ges.m.b.H. is
subject to corporation profits tax as well as trade tax on income.
Upon the formation of a limited liability company (Ges.m.b.H.), two
shareholders are required (who can be Austrian or foreign citizens).
After formation, share capital can be transferred to one owner. Minimum
initial share capital is AS 500,000, with at least one-half paid up in
cash. Local financing is available to foreign investors.
Day-to-day management is the responsibility of the registered managers.
A supervisory board is generally required if more than 300 people are
employed or share capital exceeds AS 1 million, and if there are more
than 50 shareholders. The supervisory board must have at least three
members; one-third of the supervisory board must be employees'
representatives.
Certificates may not be issued to transfer shares, and the transfer of
ownership must be transacted in the form of a notarized deed.
G. Selling Factors/Techniques
Shopping hours in Austria are regulated by law. Stores, including
grocery stores, must stay closed on Saturday afternoons, Sundays,
holidays, and evenings. Exceptions to this rule are a handful of gas
station convenience stores, and mini-marts located at train stations and
at the airports.
Although the law allows stores to operate weekdays between 6:00 AM and
7:30 PM and Saturdays between 6:00 AM and 1:00 PM, most stores are open
only between 9:00 AM and 6:30 PM on weekdays and Saturdays from 9:00 AM
to 12:00 noon. The hours reflect the additional labor costs of staying
open past 6:00 PM. Staff required to work past 6:00 PM is entitled to
170 percent of salary, and those who work after 8:00 PM, to 200 percent.
Though there has been some debate regarding the need to relax these
regulations, as yet there are no concrete proposals on how this might be
done.
H. Advertising and Trade Promotion
Local advertising is less sophisticated than in most of western Europe
in terms of style, imagination, targeting, and market penetration. U.S.
firms have an edge in selling their products and services, as U.S.
consumer goods have a reputation for good quality. Industrial
technology is sought by aggressive, innovative companies interested in
upgrading their operations.
Advertising Media: Newspapers and magazines rank first among the
advertising media, taking in over 50 percent of total advertising
outlays. Austria's principal newspapers include the conservative and
comprehensive Die Presse with a Saturday circulation of about 140,000,
Der Standard, an economics oriented daily, which has a Saturday
circulation of 191,000, and the Kurier, a middle-of-the road paper with
a daily circulation of about 450,000. Austria's two largest tabloid
papers, the Neue Kronen Zeitung and Taeglich Alles, both enjoy high
circulation density.
Radio and television are Austrian state monopolies. The Austrian
Broadcasting Corporation (ORF) operates two television channels and
three radio stations with a combined daily audience of 2.5 million.
Treatment of international developments on television and radio is
usually prompt, comprehensive, and straightforward. Blue Danube Radio
provides English language programming.
The wide availability of satellite and cable television in Austria
offers an excellent medium for advertisers interested in the Austrian
market. In addition to the two Austrian stations, viewers can choose
from around 30 additional programs, including the major public and
private German broadcasters, as well as Swiss, Italian, American, (CNBC
and CNN) and international (Euro-news and ARTE) channels.
Billboard advertising has remained a constant feature of Austrian
marketing for many years. Posters are displayed in post offices, phone
booths, on public transportation and other motor vehicles, on outdoor
pillars along public routes and other heavily frequented places. Sites
may be hard to find since many advertisers retain them year after year.
Store displays and commercial samples play a significant role in retail
promotion. Displays can be found in shop windows, train stations,
streetcar terminals, and airports. Direct mail and commercial fliers
are also increasingly being used.
Truth in Advertising: Following the general trend toward better
representation of consumer interests, a Consumer Forum has been
established in the Austrian Trade Ministry. The forum comprises
representatives of political parties, business organizations, labor
unions and business associations. A ministry subcommittee concerned
with commercial advertising examines posters, TV radio, newspaper ads,
and entire sales campaigns with regard to their truthfulness,
information value, and ethnic sensitivity. The forum can institute
proceedings against advertisers who make false claims. Anyone
transgressing established commercial usage laws may be sued.
The regulation against comparative advertising has recently been lifted,
thus enabling advertisers to make direct comparisons between their
products and services and those of their competitors.
I. Pricing Products
Due to relatively high social costs of labor and extensive agricultural
subsidies, the price level in Austria is high. Although the fall in
prices at the consumer level was one of the strongest arguments in favor
of Austrian entry into the EU on January 1, 1995, the impact of
increased competition and the elimination of tariffs on price levels has
yet to have an impact on consumer prices. However, as Austrians have
begun to take advantage of the freedom of unlimited personal shopping in
other EU countries, prices in the districts near the EU-internal borders
have begun to come down.
Austria has a value-added tax (VAT) which is ultimately paid by the
consumer and which should be taken into consideration when pricing
products. The VAT ranges between 10 and 20 percent. Most products
carry a VAT of 20 percent.
J. Sales Service/ Customer Support
An exporter to Austria will generally be expected or required to provide
post-sales service. Brand-name sellers generally have extensive
customer service and support networks in Austria.
K. Selling to the Government
The Austrian Government adheres to GATT Public Procurement Procedures,
but some major contracts are negotiated by invitation. Provincial and
municipal authorities are not bound by GATT requirements, and the
Austrian military sometimes makes its own contracting arrangements
(limited tenders). There is no Austrian equivalent of the "Buy America"
Act.
L. Protecting Your Product from IPR Infringement
Austria is a member of all international intellectual property rights
agreements.
M. Need for a Local Attorney
Some Austrian law firms can conduct business in English and are familiar
with U.S. law. Some are members of the bar in the U.S.. A list of
English-speaking law firms is available at the U.S. Consulate, as well
as at the Foreign Commercial Service in the American Embassy in Vienna.
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS
A. Best Prospects for Non-Agricultural Products
1. Computers and Peripherals (CPT)
Narrative: Sales of computers and peripherals are expected to grow by
15 percent annually through 1996. Declining costs of computer
equipment, as well as increasing computing and storage capacities, make
the use of computers more attractive. Continuing improvement in the
price/performance ratio of new computer equipment and improved user-
friendliness of such equipment have contributed to further demand.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 1,228.8 1,221.0 1,405.0
B. Total Local Production 10.2 10.0 11.5
C. Total Exports 197.8 196.9 225.5
D. Total Imports 1,416.4 1,407.9 1,619.0
E. Imports from the U.S. 275.3 273.4 314.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
2. Computer Software (CSF)
Narrative: The total software market is projected to grow 10 percent
annually through 1995. The market for databases will increase.
Performance increase and transaction will be the main focus for
development. Transaction orientation will become stronger. Expert
systems will not immediately be used as basic tools for commercial
applications in this market, although they should experience high growth
rates during the next five years. New technologies, together with
larger markets, will stimulate demand for new applications: networks,
optical storage, image processing, etc. The significant rate of growth
of approximately 10 percent is due to downsizing, the change to spread
systems and the expansion of open systems. This market segment is
primarily penetrated by U.S. suppliers.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 2,842 3,116 3,427
B. Total Local Production 1,569 1,720 1,892
C. Total Exports 234 366 403
D. Total Imports 1,607 1,762 1,938
E. Imports from the U.S. 324 355 391
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
3. Drugs & Pharmaceuticals (DRG)
Narrative: U.S.-made drugs and pharmaceuticals enjoy an excellent
reputation in Austria with respect to quality and safety. Despite strong
competition from Germany and Switzerland, U.S. imports hold a stable
share of 10-12 percent of total imports and are expected to grow
slightly. The still lengthy and complex registration procedure
represents, however, a non-tariff trade barrier.
Drugs which could increase their sales volume include: cerebral and
peripheral vaso-therapeutics, anti-ulcerants, ACE inhibitors plain and
combinations, non-narcotics and anti-pyretics, plain calcium
antagonists, pure vaccines, anti-rheumatics nonsteroidal, systemic
hormonal contraceptives, anti-depressants/thymoanaleptics.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 1,585.1 1,655.1 1,704.7
B. Total Local Production 1,171.9 1,207.0 1,255.3
C. Total Exports 954.0 1,001.1 1,101.2
D. Total Imports 1,367.2 1,449.2 1,550.6
E. Imports from the U.S. 151.9 158.0 165.9
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
4. Electronic Components (ELC)
Narrative: The outlook for 1996 especially in the sub-sector "Active
Electronic Components" for U.S. manufacturers is quite good. A real
import growth rate of 6 percent can be expected. Highly sophisticated
U.S.-made active components have good opportunities in the Austrian
market in the future. A great share of Austrian components imports are
from U.S. firms manufacturing in the EU or the Far East. The Austrian
market for ASIC's continued to develop positively.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 883.1 996.3 1,096.7
B. Total Local Production 910.9 999.0 1,080.0
C. Total Exports 910.5 979.9 1,038.7
D. Total Imports 882.7 977.2 1,055.4
E. Imports from the U.S. 84.4 90.8 97.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
5. Aircraft and Parts (AIR)
Narrative: Austria is a net importer of aircraft and parts. The market
for this segment is expected to grow 8 percent annually in 1995 and
1996. Austria produces only motor gliders, i.e., no commercial or
passenger aircraft. The U.S. position is still very strong in this
market segment. Despite Austrian Airlines' decision to replace its
McDonnell Douglas fleet with Airbus aircraft, the engines and
electronics will be of U.S. origin. Lauda Air placed an order of two
Boeing 767-300 at the Paris Air Show in June 1995. The principal end-
users of aircraft, parts and equipment are the national carriers
Austrian Airlines, Lauda Air, Tyrolean Airways, and Rheintalflug (a
commuter airline) and charter airlines. Emergency medical and traffic
control services use civilian helicopters, and there is a modest market
for private and corporate fleets and business charter operators, hobby
pilots and aviation sport clubs.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 165.6 190.2 199.5
B. Total Local Production 70.1 80.5 84.5
C. Total Exports 55.6 63.8 67.0
D. Total Imports 151.1 73.5 182.0
E. Imports from the U.S. 107.1 123.0 129.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
6. Travel and Tourism (TRA)
Narrative: Due to the favorable exchange rate between the Austrian
Schilling and the U.S. dollar, Austrian tourism to the United States
will boom in 1995, according to airline officials and travel industry
specialists. All the major airlines are sold out of seats through mid-
September 1995. The forecast for 1996 is also excellent with
anticipated growth in the 15 percent range. U.S. suppliers at POW WOW
'95 in New York confirmed the excellent growth potential Austria offers.
Data Table:
Austrian Arrivals in the U.S.
1994 1995 1996
A. Total Market Size 154,550 166,900 178,700
B. Total Local Production N/A N/A N/A
C. Total Exports N/A N/A N/A
D. Total Imports N/A N/A N/A
E. Imports from the U.S. N/A N/A N/A
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
7. Industrial Chemicals (ICH)
Narrative: After years of recession, the Austrian chemical industry has
recovered considerably. Production value is expected to grow by 4-6
percent, while total imports are estimated to grow by 8-10 percent. U.S.
imports are estimated to increase by 7-9 percent over the next two
years. There are sales opportunities for U.S. companies in higher-priced
specialty and advanced products as well as for newly developed
environment-friendly "soft" chemical substitutes for hazardous
substances.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 961 1,002 1,072
B. Total Local Production 878 913 968
C. Total Exports 572 618 674
D. Total Imports 655 707 778
E. Imports from the U.S. 44 47 51
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
8. Medical Equipment (MED)
Narrative: Because of the completion of all major hospital projects in
Austria and the budget problems of the Austrian health service, demand
for medical equipment will grow rather slowly in the future. There are
some interesting possibilities for U.S. manufacturers of hospital
equipment, using Austrian general contractors for hospital modernization
projects in Central & Eastern European countries. U.S. manufacturers of
sophisticated electro-medical equipment, including scanners, pacemakers,
and computer tomographs have continuing opportunities in the Austrian
market.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 358.6 385.9 417.7
B. Total Local Production 153.6 165.3 173.0
C. Total Exports 189.8 204.3 222.7
D. Total Imports 394.8 424.9 467.4
E. Imports from the U.S. 47.3 49.7 52.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
9. Telecommunication Equipment (TEL)
Narrative: The Government of Austria has decided on a cautious approach
to telecom liberalization, which will not go into effect any earlier
than 1998. A notable exception is a public tender, issued in July 1995,
for the license for a second Austrian GSM network. This opportunity
represents one of the largest deals which can be closed this year.
Despite European competition, U.S. firms are well positioned to play a
role in the Austrian telecom scene.
Registration procedures have been liberalized. Equipment which meet EU-
established common technical regulation (CTR) standards is permitted,
i.e. GSM mobile telephones and ISDN terminal equipment. According to
some forecasts, one in ten Austrians will be using some kind of mobile
service by 1996. It is expected that most consumers will be able to
afford mobile telephones by the end of the decade - by which time mobile
systems could for the first time be reaching a mass market and providing
real competition to traditional fixed-wire networks.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 866.2 917.4 969.3
B. Total Local Production 694.2 728.9 765.3
C. Total Exports 204.7 210.8 219.2
D. Total Imports 376.7 399.3 423.2
E. Imports from the U.S. 38.9 40.8 42.8
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
10. Pollution Control Equipment (POL)
Narrative: The Government of Austria's efforts to improve environmental
quality are impressive, both in terms of expenditures and results
achieved. Reflecting the profound importance of environmental issues to
the Austrian public, the Government has advanced ambitious policies in
this area. As a result, Austria has now some of the world's strictest
laws and standards. Environmental expenditures equal between 2.6 and 2.8
percent of the country 's GDP. Austria has realized that domestic
measures alone are not enough to improve an environment which suffers
from heavy influx of trans-boundary pollution, in particular from
Central European countries. High priority is placed therefore on
bilateral and international environmental cooperation. The best
potential for cooperation with the United States may be in the areas of
environmental research, such as climate change and ozone depletion, and
in the field of recycling technologies and remediation of contaminated
sites.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 4,516.8 4,674.9 4,829.3
B. Total Local Production 4,065.0 4,186.9 4,312.5
C. Total Exports 903.5 921.5 949.1
D. Total Imports 1,355.3 1,409.5 1,465.9
E. Imports from the U.S. 40.6 42.2 43.5
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
B. Best Prospects for Agricultural Products
Tobacco (PS&D Code: 21)
Narrative: It is expected that the United States will remain the
predominant tobacco supplier despite increased import duty after EU
accession.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 53.3 49.0 49.0
B. Total Local Productio 1.3 1.0 1.0
C. Total Exports 3.2 2.0 2.0
D. Total Imports 56.5 51.0 51.0
E. Imports from the U.S. 23.3 12.0 12.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
Cotton (PS&D Code: 04)
Narrative: As a result of its EU accession, the duty on Austrian yarn
entering to the EU dropped to zero. This should lead to increased
production and exports of cotton yarn and, consequently, increased
cotton consumption. U.S. cotton should benefit from this increase in
consumption.
Data Table:
USD Millions
1994 1995 1996
A. Total Market Size 57.1 58.0 59.0
B. Total Local Production nil nil nil
C. Total Exports nil nil nil
D. Total Imports 57.1 58.0 59.0
E. Imports from the U.S. 5.2 7.0 8.0
1994 exchange rate: USD 1 = AS 11.42
Note: The above statistics are unofficial estimates.
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
The United States continues to enjoy good trade relations with Austria.
Apart from the agricultural sector, there are no major political,
cultural, tariff, non-tariff, or other barriers that inhibit or restrict
trade in U.S. goods and services.
The Austrian customs regime is based on the "TARIC" (integrated tariff
of the EU), determined in Brussels. Customs valuation is according to
GATT regulations.
A. Tariffs and Import Taxes
When Austria became a member of the European Union on January 1, 1995,
approximately 63 percent of the existing tariffs were lowered or
eliminated, while about 31 percent were increased. Sixty percent of all
products from third countries enter without any tariff. In addition,
there is no tariff imposed on the temporary entry of products into
Austria, for example as part of a trade fair exhibit.
While the average tariff level in the EU is relatively low, at only 5.44
percent for manufactured goods, some goods are taxed at a much higher
rate. Shoes and motor vehicles, for example, are subject to a 20
percent duty; tariffs from 14-17 percent are not unusual for such items
as office machines, computers, and some textile products.
During the time of transition to the EU customs union, Austria won the
right to continue to import certain goods from third countries at the
pre-EU tariff rate (many at zero duty rate). This arrangement was
originally intended for the period from January 1, 1995 to June 30,
1995, and covered several product categories in which the United States
was a major supplier. Among the goods affected are some chemicals and
plastics, computers and photographic equipment, and semiconductors and
integrated circuits. Negotiations to extend these temporary exemptions
from the EU tariff regime have resulted in an extension until the end of
1995. The official council regulation relating to this outcome,
however, has not yet been released as of June 30, 1995.
B. Non-Tariff Barriers and Import Licenses
Import quotas on textiles and steel are managed through the granting of
import licenses to qualified firms. In order to import textiles from
Eastern Europe, Eastern Asia, and some Latin American countries, an
Austrian importer must be in possession of an import license and obtain
permission to import each shipment (Einfuhrbewilligung). The same is
true for the import of steel from some CIS states. The licensing
authority is the Austrian Ministry of Economic Affairs.
The import of military and related items, such as firearms and
ammunition also requires a license and an individual approval of each
shipment. The licensing authority responsible for these products is the
Austrian Ministry of the Interior.
Some goods are subject to tariff quotas, whereby after a certain
quantity of the good has entered the EU at low or zero duty rate, the
rate is increased. Primarily these are goods which are determined to be
useful to the European economy only in certain quantities, generally as
raw materials or parts. The Austrian importer can get information about
the extent to which the quota has been filled through the Customs Office
Subin, which has an on-line connection to Brussels, as well as through
the Main Customs Offices (Hauptzollaemter) of the Ministry of Finance.
C. Export Controls
Austria is a member of key multilateral non-proliferation arrangements
to control the export of nuclear, biological and chemical goods, items
and technologies, as well as "dual-use items" particularly to countries
under international sanctions. The transit, export, and re-export of
such goods requires specific license from either the Austrian Ministry
of Economic Affairs, Ministry of Interior and Ministry of Defense.
D. Import/Export Documentation
In order to bring goods from a third country into Austria and thus into
the EU market, a customs declaration must be made by a resident of the
EU. Depending on the product and the country from which it is being
imported, specific evidence material (such as proof of land of origin
and invoice) must be included. Where a tariff applies, the duty is
collected within 15 days of import.
The exporter is required to report the intended transaction to the
responsible export customs authority; most goods require no special
permission for export (the exception, as mentioned earlier, pertains to
strategic items). The content of the shipment is then verified at an
external border of the EU.
E. Labeling/Marking Requirements
Austrian labeling and marking requirements are not as strict as those in
the United States. Nutritional information is not required on food
products, nor are safety warnings on electrical devices. It is not
required that labeling be in the German language, though in some cases
it is highly advisable. At present, the most important requirements
include washing instructions on textiles, and certification of safety
(the CE mark) on machines, toys, and baby accessories. Ultimately, as
the EU standards harmonization process is completed, a CE mark will be
required for most U.S. imports. The Austrian Parliament appears to be
pressing for stricter labeling standards on food products.
Products without the CE mark are not, however, turned away at the
border. It is the responsibility of the person importing the product to
make sure products are certified and marked before they come into
circulation. At present, there is no special procedure required for
importers claiming non-marked products at the border. In the future,
however, a form will be required, so that the product can be traced.
F. Prohibited Imports
Although there are no specifically prohibited imports, the EU controls
the entry of some products into the EU market through standards and
content regulations. Though goods which do not meet EU standards may be
imported, they cannot be released into the market until they are
modified in such a way as to comply with EU standards regulations.
G. Agricultural Imports
Most agricultural and related products are subject to specified duties
under the framework of the Common Agricultural Policy (CAP). Since
Austria joined the EU in January 1995, import duties for some key U.S.
agricultural products such as tobacco, rice, and raisins, rose sharply.
Agricultural import duties are on average significantly higher than
those on manufactured goods.
H. Standards
The Austrian Standards Institute (Oesterreichisches Normungsinstitut -
ON) is a private non-profit organization incorporated by the Austrian
Parliament in the Standards Act of 1971 as the only Austrian body to
issue and endorse Austrian standards.
ON prepares standards in a variety of fields: ores and metals,
mechanical engineering, building and construction, health and medical
equipment, non-metallic materials, chemical and allied industries,
special technologies, personal safety, food, environment and waste
management. Approximately 90 percent of the standards ON prepares are
voluntary. Presently, the collection comprises 6,115 standards,
including national implementation of 1,736 European standards, 268
European telecommunications standards, and 9,852 international
standards.
The ON produces a catalogue of its standards, ON-KATALOG, as well as a
monthly standardization magazine, entitled "CONNEX," which provides
information on the latest changes in national, European and
international standards.
"ON InfoPoint" is a commercial information service which offers specific
investigations to clients in the field of standards and technical
regulations in Austria and abroad.
Austria is a signatory to the GATT Standards Code. ON is the enquiry
point for information on non-governmental standards; the Federal
Ministry of Economics is the enquiry point for governmental regulations.
The addresses are:
Oesterreichisches Normungsinstitut (ON)
Heinestrasse 38, Postfach 130
A-1021 Vienna, Austria
Tel: (43 1) 213 00-626
Fax: (43 1) 213 00-650
Bundesministerium fuer wirtschaftliche Angelegenheiten
GATT Enquiry Point
Abteilung 1/5
Stubenring 1
A-1011 Vienna, Austria
Tel: (43 1) 711 00-5452
Fax: (43 1) 713 79 95
American firms exporting to Austria may encounter problems in meeting
Austrian product standards. European Union attempts to harmonize the
various product safety requirements of its member states have
complicated the issue. For industrial products, this harmonization is
being implemented through EU directives. During the transition period,
national requirements must be met. (After the transition period the
European-wide "CE" mark will supersede all other compliance
certificates, provided the products concerned are covered by an EU-
directive.)
Both EU requirements and the standards for an Austrian quality or
performance mark will in many cases require that a product be modified.
Even if the product does not require modification, it will require
testing and certification before it can be marketed.
An estimated 80 percent of all American products sold in the EU will
require the "CE" mark once all directives have been passed and all
transition periods have expired. Where EU directives are in place, the
"CE" mark is mandatory for the entry of a product into the single
market. In the future, Austrian consumers will look for these marks the
same way Americans look for the "UL" mark.
The standard series ISO 9000 for quality management is one of the most
important voluntary standards in Austria. After its first appearance
and worldwide acceptance, an update was completed in 1994. The revised
ISO 9000, 9001, 9002, 9003 and 9004 were published by the World
Standards Organization on July 1, 1994. At the same time the second
edition of standard ISO 8402 appeared.
On September 1, 1994, ISO 9000 was implemented as a European Standard in
the Austrian Standards collection, called "OENORM EN ISO 9000 ff." ISO
9000 is widely accepted in Austria; in fact, it has become almost a must
in many industries.
Contact information for EU "CE" standards:
Single Internal Market Information Service
Office of European Community Affairs
Room H3036
International Trade Administration
U.S. Department of Commerce
Washington, D.C. 20230
Phone: (202) 482-5823
Fax: (202) 482-2155
U.S. contacts for foreign standards information:
National Center for Foreign Standards Information
National Institute of Standards and Technology
TRF Room A163
Gaithersburg, MD 20899
Phone: (301) 975-4040
Fax.: (301) 975-2128
Ms. Janice Price
Europe/Regional, Political and Economic Affairs
Room 651P
U.S. Department of State
Washington, D.C. 20520
Phone: (202) 647-2395
Mr. Chris Marcich
DAUSTR for Europe and Mediterranean
Office of the U.S. Trade Representative
600 17th Street, NW
Washington, D.C. 20506
Phone: (202) 395-3320
American National Standards Institute
11 West 42nd Street
13th Floor
New York, NY 10036
Phone: (212) 642-4900
Fax: (212) 302-1286
I. Free Trade Zones/Warehouses
Free trade zones (EU Freilager), outside the Austrian/EU customs
territory, are located in Graz, Linz, Bad Hall near Innsbruck, and
Vienna-Freudenau. The zones of the Danube River cities of Linz and
Vienna-Freudenau have the added benefit of extensive port facilities.
Foreign products from non-EU countries may be brought into zones for
transshipment, storage, processing, manufacturing, or packaging without
the payment of a customs duty or tax. Customs are charged on goods only
when they are shipped from the zone into Austrian customs territory.
The importer has the option of having the duty based on the state of
processing of the goods at the time of their entry into the zone or from
abroad, or on their condition at the time of their shipment from the
zone to the customs territory. In cases where goods produced in the
zone from both foreign and domestic materials are shipped into the
customs territory, duty is charged only on the foreign materials.
However, foreign goods for consumption or capital goods brought in for
use in the zone are subject to customs duty or tax upon entry.
Warehousing: Customs privileged warehousing facilities for imported
foreign goods are of two basic types: (1) non-bonded warehousing
against customs bond account and (2) storage in bonded customs
warehouses.
Imported goods which are to be sold in the customs territory or
reexported may be stored in non-bonded warehouses without customs seal
and without payment of duties and taxes for an unlimited time. A
transaction license is required and is granted only to registered firms
and traders. Security is required, and pertinent customs provisions
must be observed. Account is kept of the disposition of the goods
throughout their registration in customs-bond accounts. Minor
operations, such as packing, unpacking and repacking, refilling, and
maintenance, may be performed by the holder of the transaction license
without notifying customs officials, provided that such operations do
not result in a change of the tariff classification or dutiable value.
In certain circumstances, non-bonded storage against a customs-bond
account may be permitted, if the goods are processed during their
storage; in such cases, the pertinent provisions of inward processing
traffic apply.
Bonded customs warehouses may store dutiable imported goods that are
subsequently to be cleared for free trade within the customs territory,
submitted to another customs procedure, or reexported. Goods cannot be
entered or removed without breaking a customs seal. An authorized agent
is required to supervise the goods while in storage and is entitled to
subject them to operations (e.g., packing, blending, separating,
cleaning, and marking) that are compatible with the purpose of customs
warehousing, as long as the tariff classification and the dutiable value
of the goods remain unchanged.
Bonded customs warehouses are either public or private. Public customs
warehouses may be used by anyone who observes warehouse regulations.
They are often located near a customs office and are usually operated by
the Austrian government or by certain regional organizations. Some
store most types of goods, while others restrict themselves to
specialized goods. Private customs warehouses generally may be used
only by the warehouse owner.
J. Special Import Provisions
Austria complies with the special import provisions administered by the
EU, including the Generalized System of Preferences, the Multi-Fiber
Arrangement, as well as the Europe Agreements with several
Central/Eastern European countries.
K. Membership in Free Trade Agreements
As an EU member, Austria participates in the European Economic Area
(EEA). Austria is also a member of the World Trade Organization (WTO).
Although Austria has no bilateral free trade agreements, as an EU member
it participates in the EU's free trade agreements with Estonia, Latvia,
and Lithuania, as well as the EU's association agreements with Bulgaria,
Czech Republic, Hungary, Poland, Romania, and Slovakia.
CHAPTER VII. INVESTMENT CLIMATE
A. Host Country Policies and Practices
1. Openness to Foreign Investment
Austria meets the requirements of an open investment regime as outlined
in this section.
Government Attitude toward Foreign Private Investment: The Government
of Austria generally welcomes all foreign direct investment, but
particularly investments that create new jobs in high technology and
capital intensive industries, that improve productivity, that replace
imports and/or increases exports, and that do not have a negative impact
on the environment. Austria's basic policies toward foreign direct
investment and investment-related payment transactions are not expected
to change in the foreseeable future. A large number of foreign firms,
including several large U.S. companies, have invested in Austria. Most
have expanded their original investment over time.
There are no formal sectoral or geographic restrictions on foreign
investment. However, investment in sectors with excess capacity, such
as steel, textiles, and paper, is discouraged. Preference is accorded
to projects in economically depressed areas and underdeveloped districts
on Austria's eastern borders. Some of these geographic areas are
eligible for subsidies under EU programs. Some recent foreign
investment in manufacturing has encountered local opposition due to
environmental concerns.
Acquisitions, Mergers, Takeovers, Cartels: International acquisitions
and takeovers of domestic enterprises are permitted. International
cartels are not prohibited in Austria, but are subject to oversight by
the cartel court to prevent the abuse of market power. The cartel court
must be notified within one month after any merger or acquisition takes
place, if the combined world-wide sales are in excess of Austrian
Schillings (AS) 150 million. Prior notification is required in the case
of mergers and acquisitions with combined sales in excess of AS 3.5
billion, or which entail the transfer of production facilities or
rights, or which result in the direct or indirect purchase of 25 percent
or more of one firm by another.
International mergers and cartels with worldwide sales in excess of
European Currency Units (ECU) 5 billion or EU-wide sales in excess of
ECU 250 million are subject to control by the EU Commission.
Screening Mechanisms: Only those foreign investments involving an
application for government financial assistance are subject to scrutiny
by the government and, then, only to ensure compliance with EU
regulations restricting such assistance to disadvantaged geographic
areas.
Privatization: In ongoing privatization of public enterprises, foreign
and domestic investors are treated equally. However, in privatization
involving banks or basic industries, there is a stated policy of
"maintaining the Austrian interest," but with no specific regulations
issued so far on how this goal is to be achieved.
Research and Development Programs: Regardless of the nationality of
ownership, every company or subsidiary legally established in Austria is
eligible for research and development grants from the three Austrian
R&D/technology funding organizations, i.e., Fund for Scientific
Promotion (FWF) for basic research, Industrial Research Promotion Fund
(FFF) for applied research, and Innovations and Technology Fund (ITF)
for innovations and technology. Although receiving funding from the
federal government, these funds operate autonomously under established
guidelines.
Treatment of Foreign Investors: There is no significant discrimination
against foreign investors - de jure or de facto. However, although
participation by Austrian citizens in ownership or management is not
required, at least one manager must meet residence and other legal
qualifications. Non-residents must appoint a person to represent them
in Austria. New Austrian residency laws and quotas for foreign labor
may hamper obtaining work permits for third country citizens (U.S. and
non-EU) for management positions.
Investment Incentives: In addition to various EU programs (districts
comprising 41 percent of Austria's land area are eligible for support
under the EU's structural objectives), financial incentives to promote
investments are offered by the federal, provincial, and local
governments and other institutions in Austria. Incentives under these
programs are equally available to foreign investors and range from tax
incentives to preferential loans, guarantees and grants. Most
incentives, except tax incentives, are available only if the planned
investment meets certain defined criteria.
2. Conversion and Transfer Policies
There are no restrictions on converting or transferring funds associated
with foreign investment. The Austrian National Bank (ANB) has fully
liberalized all cross-border capital transactions for non-residents and
residents, including the acquisition of Austrian securities, debt
service, and the repatriation of profits, interest payments, dividends,
and the proceeds from disinvestment. The Austrian Schilling is a freely
convertible currency. For fifteen years, the ANB has pursued a "hard
Schilling policy," adjusting money supply and interest rates to peg the
Schilling to the German Mark (DM) at an exchange rate of AS 7 equals DM
1. Despite the recent appreciation of the Schilling, there are no plans
for changing this policy.
3. Expropriation and Compensation
Expropriation of private property in Austria may proceed only on the
basis of special legal authorization. It must be exclusively in the
public interest and with appropriate compensation - and then only when
no other alternative for satisfying this interest exits. The
expropriation process is non-discriminatory to foreign firms and
transparent.
4. Dispute Settlement
No bilateral investment disputes are pending. Austria does not have a
specific investment dispute settlement policy. The legal system
provides for effective enforcement of property and contractual rights.
Austria is a member of the International Center for the Settlement of
Investment Disputes.
5. Performance Requirements/Incentives
Although not required to gain access to tax incentives, performance
requirements may be imposed when foreign investors seek financial or
other assistance from the Austrian Government. There is no requirement
that nationals hold shares in foreign investments, or that the share of
foreign equity be reduced over time, or that technology be transferred.
6. Right to Private Ownership
With the exception of a few sectors (state monopolies, broadcasting,
railroads, and utilities) foreign and domestic private entities are free
to establish, acquire, and dispose of interests in business enterprises.
Many public monopolies are being dismantled, clearing the way for
private investment in these sectors. Private firms compete on an equal
footing with public enterprises with regard to market access, credit,
and other business conditions.
In most business activities, 100 percent foreign ownership is permitted.
Foreign direct investment is restricted only when competing with state-
owned companies, monopolies, and utilities. License requirements and
reciprocity rules apply to foreign investments in the banking and
insurance sectors. Specific regulations concerning requirements for
joint ventures do not exist.
7. Protection of Property Rights
Austria has a patent law, a trademark law, a law protecting industrial
designs and models, and a copyright law, all of which offer holder's
protection. Legislation also protects three-dimensional semiconductor
chip layout design.
Austria is a party to the European Patent Convention, the Patent
Cooperation Treaty, the World Intellectual Property Organization, and
the Budapest Treaty on the International Recognition of the Deposit of
Microorganisms for the Purpose of Patent Procedure. Patents on
inventions are valid up to 18 years after application. Since both the
United States and Austria are members of the "Paris Union" International
Convention for the Protection of Industrial Property, American investors
are entitled to the same kind of protection under Austrian patent
legislation as are Austrian nationals.
Austria is also a member of the Madrid Trademark Agreement. The
protection period for trademarks is ten years and may be extended by
another ten years, if registration is renewed in time.
Trade secrets are protected by various regulations. For example the
right to privacy, data protection regulations, and the federal
statistics law prevent publication of production data, provided there
are four producers or less.
The copyright law grants the author the exclusive right to publish,
distribute, copy, adapt, translate, and broadcast his work. However,
infringement proceedings under Austrian copyright law can be time
consuming and complicated.
8. Regulatory System: Laws and Procedures
Although enforcement procedures are bureaucratic and cumbersome, tax and
labor laws, as well as health and safety standards, are applied
uniformly and do not influence the sectoral allocation of investments.
Over the years, in preparation for entry into the EU, Austrian
regulations have been brought into compliance with those of the EU. As
a result, the Austrian business climate has become more liberal and
entrepreneurial. As a new EU member, Austria must adopt additional
regulations to foster competition.
9. Efficient Capital Markets and Portfolio Investment
A broad variety of credit and portfolio investment instruments are
traded in an open and efficient capital market. Foreign firms have
access to this local market without restrictions and are free to use
foreign credit markets as well. A 1993 amendment to the stock exchange
act provides for more stock market transparency and establishes criminal
penalties for insider trading.
The legal, regulatory, and accounting systems are transparent and
consistent with international norms.
Austria has a highly developed and sound banking system with worldwide
correspondent relationships, as well as representative offices and
branches in the United States and other major financial centers. Total
assets of Austria's five largest banks amounted to AS 2,000 billion in
1994.
10. Political Violence
There have been no reports of politically motivated damage to projects.
Civil disturbances are extremely rare.
B. Bilateral Investment Agreements
Austria has bilateral investment agreements in force with Cape Verde,
China, Hungary, Malaysia, Poland, Romania, South Korea, and Turkey.
Agreements with Albania, Argentina, Estonia, Latvia, Morocco, Paraguay,
and Vietnam have been signed, but are not yet in effect. Additional
agreements with Algeria, Armenia, Georgia, Tunisia, and Uzbekistan have
been initialled. An agreement with former Czechoslovakia is applied
provisionally to both the Czech Republic and Slovakia. An agreement
with the former Soviet Union is applied provisionally to Russia, and one
with former Yugoslavia is applied provisionally to Croatia and Slovenia.
All provisionally applied agreements will have to be renegotiated and
new agreements concluded with the other successor states of the former
Soviet Union.
Under these agreements, investment disputes that cannot be settled
amicably may be submitted to the International Centre for Settlement of
Investment Disputes or an arbitration court according to the UNCITRAL
arbitration regulations.
C. OPIC and other Investment Insurance Programs
OPIC programs are not available for Austria. OPIC has a cooperation
agreement with Austria's Finance Guarantee Company, enabling U.S. firms
to secure joint-venture investments with Austrian partners in Central
and Eastern Europe. Austria is not a member of the Multilateral
Investment Guarantee Agency (MIGA) and has no plans to join it.
D. Labor
Austria has a highly educated labor force of 3.7 million. Government
policies limit the number of foreign workers to 9 percent of the
salaried workforce or about 291,000. Scope for the employment of
additional foreign labor is severely constrained and probably would
require an application to exempt some groups from the present quota.
While demographic trends indicate little growth in the labor force in
the 1990's, productivity gains, industrial restructuring, and measures
to increase female employment and to raise the actual retirement age
will ensure an adequate labor supply over the medium term. Shortages of
highly specialized labor may occur.
Terms of employment are closely regulated by law, include working hours,
minimum vacation time, maternity leave, juvenile work allowances,
statutory separation notice, protection against dismissal (except for
reasons stipulated by law), and the right to severance payment.
Collective bargaining is concerned mainly with wage adjustments, fringe
benefits, and reduction of the work week. Flexible working hours were
introduced several years ago and enjoy great popularity. While the law
still provides for a maximum of 40 hours per week, collective bargaining
agreements provide for a work week of 38 or 38.5 hours per week for more
than half of all employees. Labor demands for a minimum wage of AS
10,000 per month clearly has high priority.
Despite a relatively low unemployment rate, the government is
formulating programs to prevent the persistence of unemployment at high
levels - a phenomenon seen in other EU-member countries. The
government's strategy calls for the services sector to absorb excess or
redundant labor from the shrinking industrial sector.
About 60 percent of the work force is unionized. Shop stewards must be
consulted on various issues. Co-determination rights of employees are
regulated by law. One third of the members of a corporation's board of
directors must come from the firm's staff. Labor-management relations
are generally harmonious and strikes are rare. In 1994, no strikes
occurred. Austria generally adheres to the International Labor
Organization (ILO) conventions protecting workers rights.
Austrian social insurance is compulsory and comprises health insurance,
old-age pension insurance, unemployment insurance, and accident
insurance. Social insurance contributions are a percentage of total
monthly earnings and are shared by employers and employees.
E. Foreign-Trade Zones/Free Ports
Austria has four foreign trade zones, in Vienna, Linz, Graz, and Solbad
Hall, where products of foreign origin may be stored, displayed,
sampled, mixed, sorted, repacked or reexported without the obligation to
pay duty. Their impact has been limited, and foreign investors have
shown little interest.
F. Capital Outflow Policy
There are no restrictions on cross-border capital movements, for inflows
or outflows.
Austrian firms investing abroad are eligible for financing and guarantee
programs. Financing programs consist of the refinancing of commercial
bank loans for Austrian firms to acquire and participate in firms
abroad, start-up loans on favorable terms for financing Austrian
investment and joint ventures in developing countries that serve to
promote Austrian exports, and financing for projects in industrialized
countries for marketing, maintenance, and assembly of goods made in
Austria, or promoting the sale of Austrian services. To be eligible for
these finance programs, government guarantees to cover both economic and
political risks are required. A separate guarantee program operated by
the East-West Fund provides risk sharing guarantees for direct
investments abroad and insolvency risk guarantees.
G. Foreign Direct Investment Statistics
See Appendix D.
H. Major Foreign Investors
Close to 300 U.S. firms hold investments in Austria, which range from
simple sales offices to major production facilities. The following is a
short list of U.S. firms holding major investments in Austria.
American Express Bank Ltd.
AT&T
Chrysler International Corp.
Cincinnati Milacron, Inc.
Citibank Overseas Investment Corp.
Coca Cola Export Corp.
Control Data Corp.
CPC International Inc.
Eastman Kodak Company
The Emcom Group, Inc.
Exxon Corporation
General Electric Capital Corporation
General Motors Corp.
Goulds
Harman International Industries Inc.
Hercules Inc.
Honeywell Inc.
IBM World Trade Europe/Middle East/Africa Corp.
ITT Corp.
Johnson and Johnson Int.Otis Elevator Co.
Mannesmann Tally Corp.
Mars Inc.
Merrill Lynch and Co., Inc.
Mobil Oil Corporation
Nalco Chemical Company
Pioneer Overseas Corp.
PQ International Inc.
Reynolds International Inc.
Schlumberger Ltd.
Joseph E. Seagram and Sons, Inc.
TRW Inc.
WEA International Inc.
Wm. Wrigley Jr. Company
Following is a brief list of firms headquartered in other countries than
the U.S. holding major investments in Austria.
AEG AG, Germany
Alcatel, France
Allianz AG, Germany
ASEA Brown Boveri, Switzerland and Sweden
Assicurazioni Generali, Italy
Axel Springer Verlag, Germany
Bahlsen, Switzerland and Germany
Bancario San Paolo di Torino, Italy
BASF, Germany
Bayer AG, Germany
Bayerische Landesbank, Germany
Bayerische Motorenwerke (BMW), Germany
Bayerische Vereinsbank AG, Germany
Berliner Handelsgesellschaft Frankfurter Bank, Germany
Bombardier, Canada
Robert Bosch AG, Germany
Colonia Versicherungs AG, Germany
Continental Gummiwerke AG, Germany
Deutsche Bank, Germany
Hafslund Nycomed, Norway
Head-Tyrolia-Mares, Japan and U.S.
Henkel, Germany
Hipp, Germany
Hoechst AG, Germany
Hungarian National Bank, Hungary
Interhoerbiger, Switzerland
Jacobs Suchard, Switzerland and U.S.
Karl Kaessbohrer Fahrzeugwerke, Germany
Kone Oy, Finland
Liebherr, Germany
Magna, Canada
MAN, Germany
Mannesmann AG, Germany
Mazda Corp., Japan
Milupa, Germany
Nestle S.A., Switzerland
NV Koninklijke KNP Paper Company, Netherlands
Papierwerke Waldhof Aschaffenburg, Germany
Philips Gloeilampenfabrieken, Netherlands
Piaggio, Italy
Pilkington Overseas, U.K. (through Flachglas AG, Germany)
Rhone-Poulenc, France
Riunione Adriatica di Sicurta (RAS), Italy
Rothenberger, Germany
Russian Central Bank, CIS
Sandoz AG, Switzerland
Schickedanz (Quelle), Germany
Shell Petroleum N.V., Netherlands
Siemens, Germany
Solvay et Cie, Belgium
Sony, Japan
Svenska Cellulosa AB, Sweden
Thyll Managemant AG, Switzerland
Tsuzuki Spinning Co., Japan
Unilever N.V., Netherlands
Voith, Germany
Westdeutsche Allgemeine Zeitung (WAZ), Germany
CHAPTER VIII. TRADE AND PROJECT FINANCING
A. Synopsis of Banking System
Austria has a highly developed banking system, with worldwide
correspondent relations, as well as offices and branches in the United
States and other major financial centers. A wide range of credit and
financial instruments is offered by Austrian banks, all of which are
full-service banks. Large Austrian banks also have branches,
subsidiaries, and joint venture operations in Central and Eastern
Europe. Major foreign banks, including American, have operations in
Austria.
B. Foreign Exchange Controls Affecting Trading
Austria has had a fully liberalized foreign exchange regime since 1991.
There are no limitations on any cross-border payments, whether related
to foreign trade, capital investments, or other transactions, except to
countries under UN sanctions.
C. General Financing Ability
General financing to establish foreign operations in Austria is readily
available. Foreign firms enjoy access to Austrian credit and capital
markets without restrictions.
D. How to Finance Exports/Methods of Payment
American exporters to Austria may use domestic or foreign financing to
make a wide range of payment arrangements, from advances to letters of
credit and bank guarantees. Austrian banks can also help arrange
financing for export and investment transactions in Central and Eastern
Europe. The Austrian Government has neither a countertrade policy nor
specific regulations in this field.
E. Types of Available Export Financing and Insurance
OPIC generally does not operate in Austria, although it has a
cooperation agreement with the Austrian Finance Guarantee Company to
insure investments in Central and Eastern Europe. EXIM has no active
programs in Austria in recent years. Country risk is a very low for
U.S. exporters.
F. Project Financing Available
Commercial financing is readily available from Austrian banks and
institutions on normal market terms. Multilateral institutions are not
active in Austria. Concessionary financing may be available for U.S.
firms in association with Austrian companies for projects in neighboring
countries with economies in transition.
G. List of Banks with Correspondent U.S. Banking Arrangements
Austrian Branches/Subsidiaries of U.S. Banks:
American Express Bank Ltd. Commercial and private
Kaerntnerstr. 21-23
A-1015 Vienna, Austria
Phone: (43 1) 515 67-0
Fax: (43 1) 515 67-3
Citibank Austria All banking services
Lothringerstr. 7
A-1015 Vienna, Austria
Phone: (43 1) 717 17
Fax: (43 1) 712 97 07
Merrill Lynch Bank Private banking
Bauernmarkt 2
A-1010 Vienna, Austria
Phone: (43 1) 531 40
Fax: (43 1) 535 02 27
Mercurbank Leasing financing
Kaerntner Ring 8
A-1015 Vienna, Austria
Phone: (43 1) 501 32-0
Fax: (43 1) 501 32-341
Austrian Banks with Subsidiaries in the U.S.:
Bank Austria Bank Austria
Am Hof 2 565 Fifth Avenue
A-1010 Vienna, Austria New York, NY 10017
Phone: (43 1) 711 91-0 Phone: (212) 880 1000
Fax: (43 1) 711 91-6155 Fax: (212) 880 1110
Creditanstalt Bankverein Creditanstalt
Schottengasse 6 245 Park Ave, 27th Floor
A-1010 Vienna, Austria New York, NY 10167
Phone: (43 1) 531 31-0 Phone: (212) 856 1000
Fax: (43 1) 531 31-7566 Fax: (212) 856 1234
GiroCredit GiroCredit
Schubertring 5 Park Avenue Tower
A-1010 Vienna, Austria 29th Floor 65 East 55th
Phone: (43 1) 711 94-0 65 East 55th Street
Fax: (43 1) 713 70 32 New York, NY 10022
Phone: (212) 655 0660
Fax: (212) 421 2719
Raiffeisen Zentralbank DG-Bank House
Am Stadtpark 9 609 Fifth Avenue
A-1030 Vienna New York, NY 10017-1021
Phone: (43 1) 717 07-0 Phone: (212) 593 7593
Fax: (43 1) 717 07-1715 Fax: (212) 593 9870
CHAPTER IX. BUSINESS TRAVEL
A. Business Customs
Business practice and etiquette is much the same in Austria as it is in
America, with only a few exceptions. First, when making appointments
with prospective buyers or clients, it is considered courteous to meet
them wherever it is most convenient for them. Second, appointments
should be made in writing or by phone and well in advance. Finally, and
perhaps most importantly, Austrians tend to be tradition-conscious and
attach importance to titles and the recognition implied through their
use.
Correspondence and visits play a significant role in the conduct of
business in Austria. Clarity and continuity in communications is very
important. Prompt handling of correspondence is very much appreciated
and helps to compensate for the distance between the two countries.
When possible, offers and documentation should be in German. Marketing
and sales policies should be oriented toward establishing lasting
business relationships.
Austrians are generally well disposed toward Americans. Showing
understanding for the Austrian way of doing things and observing certain
unwritten rules of conduct will prove rewarding for the American
business person.
B. Travel Advisory and Visas
There have been no travel advisories for Austria. There are no visas
necessary for visits to Austria lasting less than three months.
Application for a visa allowing an extended stay must be made from
outside the country.
C. Holidays
The following holidays will be observed in Austria from October 1, 1995,
to December 31, 1996:
October 26, 1995 Thursday National Day
November 1, 1995 Wednesday All Saints Day
December 8, 1995 Friday Immaculate Conception
December 25, 1995 Monday Christmas Day
December 26, 1995 Tuesday St. Stephen's Day
January 1, 1996 Monday New Year's Day
January 6, 1996 Saturday Epiphany
April 8, 1996 Monday Easter Monday
May 1, 1996 Wednesday Labor Day
May 16, 1996 Thursday Ascension Day
May 27, 1996 Monday Whit Monday
June 6, 1996 Thursday Corpus Christi Day
August 15, 1996 Thursday Assumption Day
October 26, 1996 Saturday National Day
November 1, 1996 Friday All Saint's Day
December 8, 1996 Sunday Immaculate Conception
December 25, 1996 Wednesday Christmas Day
December 26, 1996 Thursday St. Stephen's Day
D. Business Infrastructure
Transportation
Austria's transportation system is excellent. Modern highways connect
most cities, and numerous border crossings into neighboring countries
are easily accessible. Air travel between major cities is available,
and overland travel by train is comfortable and very reliable.
Major Austrian cities have efficient public transportation systems,
including buses, subways, and streetcars. Taxi service is readily
available. It should be kept in mind, however, that taxis are generally
requested by telephone or at designated taxi-stands, it being difficult
to hail cabs in the street. A variety of car rental agencies are
located in major cities, with all major U.S. rental agencies
represented.
Language & Communications
The official language of Austria is German. The importance of German
language trade literature, catalogs, and instructions for the use and
servicing of products cannot be overemphasized. The agent or local
representative in Austria who has such material is in a far better
competitive position than one who must show prospective customers trade
literature in English.
Most large commercial and industrial enterprises, especially those
specializing in international trade, can correspond in English, French,
Spanish, and often one or more slavic languages, in addition to German.
As many Austrian firms operate as a kind of bridge to East/Central
Europe, it is common that the languages of that region also be
correspondence languages of many Austrian firms.
Austria has efficient postal and telephone services. Fax machines are
widely used and telex facilities may also be available. E-mail and
other Internet communications are still in an early stage of
development. Larger firms and firms specializing in computer and
communications technology, however, are beginning to integrate these new
means of communication into their procedures.
Accommodations and Food
Business accommodations are readily available, provided by a wide
variety of hotels and guest houses throughout the country. The food is
excellent, with a variety to suit all tastes. Prices vary, ranging from
the homey 'Gasthaus', which offers local dishes at very affordable
prices, to the elegant restaurants of five-star hotels. Tap water is
potable.
CHAPTER X. APPENDICES
APPENDIX A. COUNTRY DATA
1. Profile
Population 8.040 million
Population Growth Rate 0.7 percent
Religion(s)
Roman Catholic - 78 percent
Protestant - 6 percent
Government Constitutional Parliamentary Democracy
Language German - 98 percent
Work Week 37.5-40 Hours, depending on the industry
APPENDIX B. DOMESTIC ECONOMY
1994 1995 1996
------------------------------------------------------------
GDP (USD billion,
(current prices) (1) 196.6 207.9 218.5
GDP Growth Rate (in percent) 6.0 5.8 5.1
GDP per Capita (USD) (1) 24,501.0 25,832.0 27,058.0
Government Spending
(percent of GDP) 32.6 31.7 30.9
Inflation (percent) 3.0 2.7 2.5
Unemployment (percent) 4.4 4.2 4.2
Foreign Exchange Reserves
(USD billion) (1) 19.1 N/A N/A
Average Exchange Rate
for USD 1.00 11.42 N/A N/A
Foreign Debt (USD billion) (1) 22.1 25.0 27.4
Debt Service Ratio (2) 3.0 4.5 4.3
Footnotes:
(1) all figures converted at the 1994 annual average exchange rate of
U.S. Dollar 1.00 equalling Austrian Schillings 11.42.
(2) ratio of principal and interest payments on foreign debt to foreign
income from exports of goods and services.
APPENDIX C. TRADE
(USD million, except where noted) (1)
1994 1995 1996
-----------------------------------------------------------
Total Austrian exports (fob) 44,878.0 49,360.0 54,550.0
Total Austrian imports (cif) 55,068.0 58,060.0 63,210.0
U.S. exports to Austria 2,403.0 2,620.0 2,850.0
U.S. imports from Austria 1,562.0 1,640.0 1,740.0
U.S. Share of Austrian imports
(in percent) 4.4 4.5 4.5
Trade Balance with Three
Leading Partners
Germany -4,943.0 N/A N/A
Italy -1,221.0 N/A N/A
Switzerland 611.0 N/A N/A
Footnote:
(1) all figures converted at the 1993 annual average exchange rate of
U.S. Dollar 1.00 equalling Austrian Schillings 11.42.
APPENDIX D. INVESTMENT STATISTICS
Table 1:
Foreign Direct Investment in Austria 1987-1992
Number of firms Nominal Total
with direct capital equity (1)
Year foreign participation ------(AS billion)------
-----------------------------------------------------------------------
1987 2,370 44.3 74.8
1988 2,492 48.6 85.6
1989 (2) 2,193 51.5 94.4
1990 2,221 55.2 105.5
1991 2,172 58.5 115.2
1992 2,209 61.1 127.4
Footnotes:
(1) Total equity comprises nominal capital, statutory and voluntary
reserves, profits/losses carried forward, and long-term loans;
(2) Starting 1989, the survey covered only firms with at least AS 1
million nominal capital.
Table 2:
Foreign Direct Investment by Country of Origin 1987-1992
(in percent of total capital)
Year U.S. Switzerland Germany Others Austria
(1) (2)
----------------------------------------------------------------------
1987 7 16 24 26 27
1988 6 14 22 23 34
1989 6 14 26 26 28
1990 6 14 27 26 27
1991 6 13 27 28 26
1992 6 14 29 28 23
Footnotes:
(1) Includes Liechtenstein;
(2) Austrian share holding in foreign influenced firms.
Table 3:
Foreign Direct Investment In Austria by Industry Sectors in 1992
Sector Total equity Employees
(AS billion) in 1,000
-----------------------------------------------------------------
Industry:
Metals, vehicles 19.1 45
Electrical engineering 5.7 35
Petroleum, chemicals 14.5 23
Paper, wood 3.7 11
Textiles, clothing, leather 2.9 14
Food, drink, tobacco 1.8 5
Building and allied trades 4.6 15
miscellaneous (incl. holding comp.)
22.4 3
-------- -------
Subtotal Industry 74.7 151
Non-industry:
Energy, transport 2.2 10
Trade 24.0 57
Tourism 2.6 7
Small-scale industry and crafts 4.1 7
Banking, finance 6.7 3
Insurance 8.0 22
Miscellaneous 5.0 7
-------- -------
Subtotal Non-industry 52.7 113
TOTAL 127.4 264
Note: Differences due to rounding.
Table 4:
Austrian Direct Investment Abroad 1987-1992
Number of firms Nominal Total assets
with Austrian capital (1)
Year direct investment ------(AS billion)------
------------------------------------------------------------------------
--------
1987 1,028 10.6 15.0
1988 1,170 12.7 17.1
1989 (2) 839 16.8 30.4
1990 1,127 28.4 45.6
1991 1,187 38.5 59.7
1992 1,284 45.3 86.5
Footnote:
(1) Total assets comprises nominal capital, other equity including
exchange rate adjustments, and long-term foreign assets/liabilities;
(2) Starting 1989, the survey covered only firms with at least AS 1
million nominal capital.
Table 5: Austrian Direct Investment Abroad by Country of Destination
1987-1992 (in percent of nominal capital)
Year US Switzerland (1) Germany U.K. Hungary Others
------------------------------------------------------------------------
1987 13 20 38 N/A N/A 29
1988 14 18 35 3 2 33
1989 12 18 33 4 4 29
1990 7 15 24 6 12 36
1991 7 12 21 11 19 30
1992 8 10 20 10 21 31
Footnote:
(1) Includes Liechtenstein.
Table 6:
Austrian Direct Investment Abroad by Industry Sectors in 1992
Sector Nominal capital Employees
(AS billion) in 1,000
-------------------------------------------------------
Industry:
Metals, vehicles 6.1 12.8
Electrical engineering 1.1 6.6
Petroleum, chemicals 6.1 11.7
Paper, wood 2.5 9.1
Textiles, clothing, leather 0.4 5.0
Food, drink, tobacco 2.0 4.7
Building and allied trades 1.9 9.5
Miscellaneous (incl.
holding companies) 8.7 0.2
-------- ------
Subtotal Industry 28.8 59.5
Non-industry:
Energy, transport 0.6 1.1
Trade 2.7 19.9
Tourism 0.5 3.2
Small-scale industry/crafts 1.1 7.5
Banking, finance 8.9 4.3
Insurance 1.3 3.4
Miscellaneous 1.4 1.3
-------- ------
Subtotal Non-industry 16.5 40.7
Total 45.3 100.2
Note: Differences due to rounding.
APPENDIX E. U.S. & AUSTRIAN CONTACTS
1. Austria Government Agencies
Embassy of Austria in the United States
3524 International Court
Washington, DC 20008
Phone: (202) 895-6700
Federal Agency for Industrial Cooperation and Development
In the U.S.: In Austria:
ICD Austria ICD Austria Ges.m.b.H.
747 Third Avenue Opernring 3-5
New York, NY 10017 A-1010 Vienna, AUSTRIA
Phone: (212) 980 7970 Phone: (43 1) 588 58-0
Fax: (212) 980 7975 Fax: (43 1) 586 86 59
Austrian Ministry of Agriculture and Forestry
Stubenring 1
A-1010 Vienna, AUSTRIA
Phone: (43 1) 711 00-0
Fax: (43 1) 713 79 95
Austrian Economic Ministry
Stubenring 1
A-1010 Vienna, AUSTRIA
Phone: (43 1) 711 00-0
Fax: (43 1) 713 79 95
2. Austrian Trade Associations/ Chambers of Commerce
Austrian Trade Commission operates offices in the U.S. at the following
locations:
Office in New York: 150 East 52nd Street
32nd Floor
New York, NY 10022
Phone: (212) 421 5250
Fax: (212) 751 4675
Office in Illinois: 500 North Michigan Avenue
Suite 1950
Chicago, IL 60611
Phone: (312) 644-5556
Fax: (312) 644-6526
Office in Georgia: 1 Peach Tree Center
Suite 4130
303 Peach Tree Street, N.E.
Atlanta, GA 30308
Phone: (404) 522 3335
Fax: (404) 525 2663
Office in California: 1601 Wilshire Blvd.
Suite 2420
Los Angeles, CA 90025
Phone: (310) 477 9988
Fax: (310) 477 1643
Office in D.C.: 1350 Connecticut Avenue N.W.
Suite 501
Washington, DC 20036
Phone: (202) 835-8962
Fax: (202) 835-8960
American Chamber of Commerce in Austria
Porzellangasse 35
A-1090 Vienna, AUSTRIA
Phone: (43 1) 319 57 51
Fax: (43 1) 319 51
Fachverband der Elektro- und Elektronikindustrie Oesterreichs
(Association of the Electric and Electronic Industry)
Mariahilfer Strasse 37-39
A-1060 Vienna, Austria
Phone: (43 1) 588 39-0
Fax: (43 1) 586 69 71
ADV Arbeitsgemeinschaft fur Datenverarbeitung
(EDP Association)
Tratternhof 2
A-1010 Vienna, Austria
Phone: (43 1) 533 09 13
Fax: (43 1) 533 09 13-77
Oesterreichische Computer Gesellschaft
(Austrian Computer Association)
Wollzeile 1-3
A-1010 Vienna, Austria
Phone: (43 1) 512 02 35
Fax: (43 1) 513 77 35
Wirtschaftskammer Oesterreich
Arbeitsgemeinschaft Umweltschutz der Arbeitgeberverbaende
(Austrian Federal Chamber of Commerce/Association for Environmental
Protection)
Wiedner Hauptstrasse 64
A-1045 Vienna, Austria
Phone: (43 1) 501 05-4196
Fax: (43 1) 502 06-270
OEGUT - Oesterreichische Gesellschaft fuer Umwelt und Technik
(Austrian Association for Environment and Technology)
Reisnerstrasse 40
A-1030 Vienna, Austria
Phone: (43 1) 718 33 03
Fax: (43 1) 718 33 03-22
3. Austrian Market Research Firms
Consent Betriebsberatung Ges.m.b.H
Dommayergasse 4
A-1130 Vienna, Austria
Phone: (43 1) 877 30 03-0
Fax: (43 1) 876 47 04
Dr. Fessel GfK Institut fur Marktforschung
Franz-Josefs Kai 47
A-1010 Vienna, Austria
Phone: (43 1) 534 96
Fax: (43 1) 534 96-194
GmB Gesellschaft fur Marketingberatung
Arnethgasse 50
A-1160 Vienna, Austria
Phone: (43 1) 45 57 01
Fax: (43 1) 45 49 57
Integral Markt- und Meinungsforschungs Ges.m.b.H.
Mohsgasse 2/6
A-1030 Vienna, Austria
Phone: (43 1) 799 19 94-0
Fax: (43 1) 799 19 94-18
Institut fur Markt- und Meinungsforschung Ges.m.b.H.
Kaiserstrasse 55
A-1070 Vienna, Austria
Phone: (43 1) 526 55 84-0
Fax: (43 1) 526 55 84-42
Dr. Alkier Ges.m.b.H.
Lindengasse 10
A-1070 Vienna, Austria
Phone: (43 1) 523 62 63
Fax: (43 1) 523 92 65
4. Austrian Commercial Banks
The major Austrian banks are:
Creditanstalt-Bankverein AG Bank Austria AG
Schottengasse 6 Am Hof 2
A-1010 Vienna A-1010 Vienna
Austria Austria
Phone: (43 1) 531 31-0 Phone: (43 1) 711 91-0
Fax: (43 1) 531 31-7566 Fax.: (43 1) 711 91-6155
Girocredit Bank AG Raiffeisen Zentralbank
Shubertring 5 Oesterreich AG
A-1011 Vienna Am Stadtpark 9
Austria A-1030 Vienna
Phone: (43 1) 711 94-0 Austria
Fax: (43 1) 713 70 32 Phone: (43 1) 717 07-0
Fax: (43 1) 717 07-1715
5. The Commercial Service
U.S. Embassy in Austria To mail from the United States:
Boltzmanngasse 16 American Embassy Vienna
A-1091 Vienna, Austria Department of State
Phone: (43 1) 313 39 Washington, DC 20521-9900
Fax: (43 1) 310 69 17
6. Washington-Based U.S. Government Contacts
Brenda Fisher/John Larsen
Austria Desk, Room 3049
U.S. Department of Commerce
14th & Constitution Ave, N.W.
Washington, DC 20230
Phone: (202) 482-2435 (B. Fisher)
Phone: (202) 482-2434 (J. Larsen)
Fax: (202) 482-2897
Merritt Chesley
Inter-America & Western Europe Division
Room 5520S
U.S. Department of Agriculture
Washington, DC 20250-1000
Phone: (202) 720-1322
Fax: (202) 720-0069
Brenda Ebeling
The Multilateral Development Bank Office
14th and Constitution Ave, N.W.
Washington, D.C. 20007
Phone: (202) 482-3399
Fax.: (202) 482-5179
7. U.S.-Based Multipliers
The Association for Manufacturing Technology
7901 Westpark Dr.
McLean, VA 22102-4269
Phone: (703) 893-2900
Health Industry Manufacturers Association
1200 G. Street, N.W. Suite 400
Washington, DC 20005
Phone: (202) 783-8700
American Electronics Association
5201 Great America Parkway 1225 Eye Street, N.W.
Santa Clara, CA 95054 Washington, DC 20005
Phone: (408) 987-4200 Phone: (202) 682-9110
Dental Manufacturers of America
1118 Land Title Bldg.
Broad & Chestnut Cst.
Philadelphia, PA 19110
Phone: (215) 563-2588
National Electrical Manufacturers Association
Diagnostic Imaging & Therapy Systems Div.
2101 L Street, N.W.
Suite 300
Washington, DC 20037
Phone: (202) 457-8400
Telecommunications Industry Association (TIA)
2001 Pennsylvania Ave, N.W.
Suite 800
Washington, D.C. 20006-1813
Phone: (202) 457 4912
Environmental Industry Association
4301 Connecticut Ave, N.W.
Washington, D.C. 20008
Phone: (202) 244 4700
U.S.-Austrian Chamber of Commerce
165 West 46th Street
New York, NY 10019
Phone: (212) 819-0117
APPENDIX F. MARKET RESEARCH
1. Foreign Agricultural Service Commodity Reports/Market Briefs
Annual reports on the following sectors have been issued during
FY '95:
1. Dairy (November 1994)
2. Forest Products (December 1994)
3. Oilseeds & Products (March 1995)
4. Grain & Feed (April 1995)
5. Tobacco (May 1995)
6. Market Information Report (July 1995)
7. Livestock (August 1995)
8. Fresh Deciduous Fruit (September 1995)
9. Agricultural Situation Report (September 1995)
The following annual reports will be issued during FY '96:
1. Dairy (November 1995)
2. Forest Products (December 1995)
3. Oilseeds & Products (March 1996)
4. Grain & Feed (April 1996)
5. Tobacco (May 1996)
6. Market Information Report (July 1996)
7. Livestock (August 1996)
8. Fresh Deciduous Fruit (September 1996)
9. Agricultural Situation Report (September 1996)
NOTE: FAS reports are available from the Reports Office, USDA/FAS,
Washington, DC 20250.
2. Department of Commerce Industry Subsector Analyses
The following is a list of industry subsectors that have been covered by
ISAs during FY '95:
1. Electronic and Analytical Laboratory Instruments
(February 1995)
2. Blood Plasma, Sera and Fractions
(July 1995)
3. Golf Equipment
(July 1995)
4. Aircraft Sales and Parts
(July 1995)
5. Electro-Medical Apparatus
(August 1995)
6. Selling to the Telecommunication Company in Austria
(August 1995)
7. Electrical Generating Equipment
(September 1995)
8. Avionics and Airborne Navigation Equipment
(September 1995)
9. Solid Waste Management
(September 1995)
10. Mobile Communications
(September 1995)
11. Active Electronic Components
(September 1995)
The following ISA's are planned to be drafted during FY '96:
1. Air Traffic Controls
(July 1996)
2. Pollution Control Equipment
(August 1996)
3. Electro-Diagnostic Apparatus
(August 1996)
4. ISDN and Broad Band Technologies
(September 1996)
5. Equipment and Services for Upgrading/Refurbishing of
Power Generation Facilities
(September 1996)
6. Microcomputer Systems
(September 1996)
NOTE: Department of Commerce Reports are available in the National
Trade Data Bank (NTDB).
APPENDIX G. TRADE EVENT SCHEDULE
1. Scheduled Agricultural/Food Trade Events
A.1. EVENT NAME: "ALLES FUER DEN GAST"
2. SECTOR: Tourism and Food Trade Fair
3. DATE: November 4 - 8, 1995
4. LOCATION: Salzburg
5. FAS VIENNA CONTACT & PHONE NUMBER: ANDREA FENNESZ-BERKA,
MARKETING SPECIALIST - Tel.: 313 39, ext. 2364
B.1. EVENT NAME: KUECHE UND KELLER (KuK)
2. SECTOR: Tourism and Food Trade Fair
3. DATE: October 1 - 5, 1995
4. LOCATION: Vienna
5. FAS VIENNA CONTACT & PHONE NUMBER: ANDREA FENNESZ-BERKA,
MARKETING SPECIALIST - Tel.: 313 39, ext. 2364
C.1. EVENT NAME: FAFGA - FACHMESSE FUER FREMDENVERKEHR &
GASTRONOMIE
2. SECTOR: Tourism, Catering and Food Trade Fair
3. DATE: April 15 - 18, 1996
4. LOCATION: Innsbruck, Tirol
5. FAS VIENNA CONTACT & PHONE NUMBER: ANDREA FENNESZ-BERKA,
MARKETING SPECIALIST - Tel.: 313 39, ext. 2364
D.1. EVENT NAME: AGRICULTURA/GASTRONOMIA
2. SECTOR: Agricultural & Catering fair
3. DATE: April 27 - May 5, 1996
4. LOCATION: Graz, Styria
5. FAS VIENNA CONTACT & PHONE NUMBER: ANDREA FENNESZ-BERKA,
MARKETING SPECIALIST - Tel.: 313 39, ext. 2364
E.1. EVENT NAME: GAST '96 KLAGENFURT
2. SECTOR: Tourism and Food Trade Fair
3. DATE: March 9 - 13, 1996
4. LOCATION: Klagenfurt, Carinthia
5. FAS VIENNA CONTACT & PHONE NUMBER: ANDREA FENNESZ-BERKA,
MARKETING SPECIALIST - Tel.: 313 39, ext. 2364
2. Scheduled Trade Events of the Commercial Service Vienna
A.1. EVENT NAME: Showcase Europe/Gateway to Eastern
Europe Matchmaker Trade Mission
2. SECTOR: All Best Prospect Industries
3. DATE: September 26 - 27, 1995
4. LOCATION: Vienna
5. USDOC recruited with local co-sponsors (Austrian Federal
Economic Chamber, American Chamber of Commerce in Austria)
B.1. EVENT NAME: Showcase Europe/Telecom Seminar at TELCOM '95
in Geneva, Switzerland
2. SECTOR: Telecommunications
3. DATE: October 3 - 11, 1995
4. LOCATION: Geneva, Switzerland
5. Attended by Commercial Counselor and Telecommunications
Industry Specialist.
C.1. EVENT NAME: Visit USA Seminar
2. SECTOR: Tourism
3. DATE: January 18, 1996
4. LOCATION: Vienna
5. Post recruited in cooperation with the American Chamber of
Commerce in Austria and USTTA Frankfurt as co-sponsors.
D.1. EVENT NAME: Showcase Europe/Council of American States
in Europe Trade Day Vienna
2. SECTOR: All Best Prospects Industries
3. DATE: May 9, 1996
4. LOCATION: Vienna
5. Post organized in cooperation with CASE.
Comment: This will be a four stop event with business
consultation days in Ljubljana (Slovenia), Vienna (Austria), Bratislava
(Slovakia), and Prague (Czech Republic).
E.1. EVENT NAME: Showcase Europe/Environmental Technology Seminar
2. SECTOR: Environmental Technology
3. DATE: June 1996
4. LOCATION: Vienna
5. Post recruited in cooperation with local co-sponsors.
Comment: This seminar will be planned as a three stop event
with seminars in Vienna (Austria), Bratislava (Slovakia),
and Budapest (Hungary).
NOTE: Interested firms should consult the Export Promotion Calendar on
the NTDB or contact the Commercial Service Vienna (Tel.: 43/1/313 39,
Fax.: 43/1/313 39-2911) in order to receive the latest information.
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