# ![](media/image1.jpeg){width="0.7395833333333334in" height="0.78125in"}  Doing Business In Luxembourg A Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In
    ...](#chapter-1-doing-business-in-luxembourg)

-   [Chapter 2: Political and Economic
    Environment](#chapter-2-political-and-economic-environment)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

#   {#section .unnumbered}

# Chapter 1: Doing Business In Luxembourg

-   [Market Overview](#market-overview-return-to-top)

-   [Market Challenges](#market-challenges-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#chapter-1-doing-business-in-luxembourg)

Economic Indicators

  ---------------------------------- --------- --------- ---------- --------
                                     2003      2004      2005       2006

  Nominal GDP (billion US\$ PPP)     23.5      24.6      25.7       27.2

  \% Change                          2.9       2.9       2.5        2.5

  GDP per capita (US\$ PPP)          51180     53310     55630      58610

  \% Inflation                       1.3       2.5       2.0        2.0

  \% Unemployment                    3.8       3.1       2.9        2.7
  ---------------------------------- --------- --------- ---------- --------

Trade Indicators

  ---------------------------------- --------- --------- ---------- --------
                                     2003      2004      2005       2006

  Total exports                      9986      11534     12140      18579

  Total Imports                      13643     16581     17911      18579
  ---------------------------------- --------- --------- ---------- --------

Luxembourg has many major trading partners

Import Trading Partners: Belgium (35%), Germany (15%), and the United
States (2%).

Export Trading Partners: Germany (27%), France (20%), Belgium (12%), and
the United States (2%)

## Market Challenges [**Return to top**](#chapter-1-doing-business-in-luxembourg) 

(Insert text here)

## Market Opportunities [**Return to top**](#chapter-1-doing-business-in-luxembourg)

Luxembourg\'s recent economic growth results largely from its success as
one of the world\'s biggest financial centers and most sophisticated
service-oriented economies. Specifically, it has prevailed in
counteracting the decline of its traditionally prominent steel industry
by diversifying into financial and insurance services. Although the iron
and steel industry, located along the French border, remains an
important sector of the economy, its current growth now lags behind the
more dynamic financial sector. Luxembourg has several other thriving
world-class growth sectors, including fund management and offshore
banking; cargo shipping; satellite transmission; and television/radio
broadcasting.\
\
The steel sector, which was the backbone of Luxembourg\'s phenomenal
economic growth in the 1950s, 1960s and 1970s, has undergone major
restructuring over the past two decades.  After Luxembourg\'s steel
producer ARBED merged with France\'s USINOR and Spain\'s ACERALIA in
2001, the resulting steel production company -now called ARCELOR and
headquartered in Luxembourg - is currently the world\'s largest, with a
highly diversified product range and production sites in Luxembourg,
Spain, France, China, Germany, Belgium, and Brazil.  The government of
Luxembourg owns 6.7 percent of ARCELOR.  ARBED successfully diversified
in the 1980s and 1990s and continues to search for further niche markets
for processed or semi-processed, highly specialized steel products. It
is a market leader in a variety of products such as galvanized metal
sheet and galvanized metal wire.\
\
After years of double-digit growth of the employment figures in
Luxembourg\'s financial services sector, growth stabilized at 27,699
people (June 2003).  Luxembourg\'s 167 banks now employ 12.6 percent of
the domestic working population in Luxembourg compared with the 2001 EU
bank employment of fewer than 2 percent.  Luxembourg\'s investment fund
sector is now considered Europe\'s second largest after Paris, managing
assets of over \$1026.667 billion as of May 2004 managed in 1,917
Undertakings for Collective Investment (UCI\'s).  There are also 158
active businesses in the Professionals of the Financial Sector (PFS)
with a balance sheet total of \$31.889 billion and net profit of
\$212.79 million as of May 2004.  The government has also been working
actively with the financial sector to encourage diversification of
services and to promote e-commerce and high tech solutions.\
\
Media and communications are also considered principal growth sectors.
Luxembourg is home to the powerful television, radio and internet
services conglomerate RTL Group. RTL Group is the result of a 2000
merger between CLT-UFA, Europe\'s biggest commercial broadcaster, and
the television division of Pearson. In May 2001, the European Union
approved Bertelsmann AG\'s acquisition of a controlling share in the
group, which will remain headquartered in Luxembourg. Luxembourg\'s
Société Européenne des Satellites (SES), which operates the Astra
satellite network, is now one of the world\'s largest satellite
broadcasting services providers. SES transformed itself into a global
broadband communications system and purchased GE Americom in 2001,
becoming SES Global on March 28, 2001. \
\
Government of Luxembourg also actively promotes the national as well as
international film productions.  Luxembourg\'s movie industry, which
counts several production companies, over 50 specialized service
providers, 3 animation studios and 3 distribution companies counts some
600 workers in this sector and has produced more than 250 national and
international productions since 1988. 

## Market Entry Strategy [**Return to top**](#chapter-1-doing-business-in-luxembourg)

(Insert text here)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

#   {#section-1 .unnumbered}

# Chapter 2: Political and Economic Environment

For background information on the political and economic environment of
the country, please click on the link below to the U.S. Department of
State Background Notes.

> <http://www.state.gov/r/pa/ei/bgn/3182.htm>

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch3 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising-return-to-top)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

Intermediaries may take one of three primary forms under Luxembourg law:
distributor, agent, or salaried representative.\
\
*Distributor*\
A distributor is an individual or legal entity that purchases goods
directly from a producer for the purpose of resale. The distributor
operates independently, and is only bound by the written provisions of
the distribution agreement. These agreements, however, are subject to
specific rules and regulations regarding exclusive distribution and
price-fixing.\
\
The conditions of contract termination are an important concern, and
vary with the type of distribution agreement. Either party without prior
notification or indemnification may terminate a distribution agreement
of specified duration at the end of the contract period. If the
termination takes place before the end of the contract period, the
terminating party may be sued for breach of contract.\
\
After a fair notice period, usually six months, either party may
terminate a distribution agreement of an unspecified duration without
indemnification. The termination of such a contract by the producer
without fair notice may be grounds for damage claims by the
distributor.\
\
*Agent*\
This category covers commercial agents as well as those persons acting
as agents but not fulfilling the requisites of commercial agent status.
Unlike distributors, agents do not actually purchase goods for resale.
Instead, they match up buyers and sellers on a commission basis. All
agents exercise their activities in an independent manner, and their
principals are exempt from payment of payroll taxes. Agents assume their
own fiscal (i.e. business license tax and value-added tax) and social
charges.\
\
*Commercial Agent*\
Agents with a written contract have the status of \"agents commerciaux\"
(commercial agents) if they exercise their activity as a sustained
independent profession and fulfill certain conditions. They negotiate
sales and purchases on behalf of producers, manufacturers or dealers; do
not have a written employment contract; and are registered with the
Tribunal of Commerce as commercial agents.\
\
A commercial agent is independent and free to act on the behalf of any
other firm. However, in the case where the agent wishes to represent one
of his or her principal competitors, consent of the principal must be
secured.\
\
The principal may justifiably terminate the commercial agent contract
only if the agent shows substantial deficiency in carrying out his or
her obligations. Otherwise, contract termination gives the agent a right
to indemnification, often equal to two years commission.\
\
*Other Agents*\
Persons who do not fulfill all the requirements for commercial agency
and who are not in a position of subordination to the company they
represent are considered agents. Notarized acts or private agreements
can effect authorizations of an agent. Either party may terminate the
agency agreement at will, but the non-terminating party has a right to
indemnification of losses.\
\
*Salaried Representatives*\
Unlike agents, salaried representatives have employment contracts. They
and their employers share the burden of payroll taxes, contributions to
social security, unemployment compensation, and retirement/pension plan
contributions.\
\
*Statutory Representatives*\
Regardless of qualifications or title, persons are considered statutory
representatives if they exercise their activity as a sustained
independent profession and fulfill certain conditions, including:\
· Engaging in the activity of a sales representative for the account of
one or more employers\
· Desisting from executing commercial operations on their own behalf\
· Instituting mutual commitments with employers regarding the nature of
the goods or services offered for sale, the region of activity or the
category of clients, and the rate of compensation.\
\
*Non-statutory Salaried Representatives*\
Representatives who are subordinate to their employers and who do not
fulfill the requisites for statutory representative status fall into a
separate category and are considered regular employees.\
\
*Finding a Partner*\
The U.S. Department of Commerce\'s International Trade Administration
offers several services to help the would-be exporter identify potential
foreign representatives. The three primary services available from the
U.S. Commercial Service in Luxembourg are the Gold Key Matching Service,
the International Partner Search (IPS) and Business Facilitation
Service. Brief overviews of the key services are as follows:\
\
*Gold Key Matching Service and Video Gold Key Matching Service\--*Custom
tailored services that combine orientation briefings, market research,
appointments with potential partners, interpreter service for meetings,
and assistance in developing follow up strategies. Video services also
can be provided.\
\
*International Partner Search (IPS)*\--Customized overseas search for
qualified agents, distributors, and representatives for U.S. firms. For
each IPS, commercial officers identify up to six foreign prospects that
have expressed interest in the U.S. firm\'s product.\
\
To request any one of these services, firms should contact the nearest
U.S. Department of Commerce District Office.\
\
In addition, the U.S. Department of Commerce offers a Franchise Partner
Search Service (FPSS), Customized Market Analysis (CMA), and Flexible
Market Research (FMR) reports.  For more information, visit
[www.BuyUSA.gov/luxembourg](http://www.BuyUSA.gov/luxembourg). \
\
*Contacting and Evaluating Potential Representatives*\
Once an American company has identified several potential
representatives, it should contact them directly in writing. Just as the
American firm is seeking information on the Luxembourg
representative, this person is also interested in corporate and product
information on the American firm. The American firm should provide full
information on its history, resources, personnel, the product line, and
previous export activity as well as any other pertinent information.\
\
At the same time the firm is providing information on itself, it should
also engage in a thorough investigation of the potential representative.
The following is a list of important facts the firm should endeavor to
find out:\
\
· current status and history, including background on principal
officers, personnel and other resources\
· sales territory covered\
· current sales volume\
· typical customer profiles\
· methods of introducing new products into the sales territory\
· names and nature of American firms currently represented\
· trade and bank references\
· and, assessment of whether the American firm\'s special requirements
can be met and view of in-country market potential for the American
firm\'s products.\
\
The American firm should not hesitate to ask potential representatives
or distributors detailed questions. Exporters have the right to explore
the qualifications of those who propose to represent them overseas.

## Establishing an Office [**Return to top**](#ch3)

(Insert text here)

## Franchising [**Return to top**](#ch3)

(Insert text here)

## Direct Marketing [**Return to top**](#ch3)

(Insert text here)

## Joint Ventures/Licensing [**Return to top**](#ch3)

Numerous individuals, professional organizations, service companies,
financial organizations, and consultants from all disciplines are
prepared to advise and assist parties considering joint ventures and
licensing in Luxembourg. The American Chamber of Commerce
([www.amcham.lu](http://www.amcham.lu/)) is particularly active and has
several effective action committees.

## Selling to the Government [**Return to top**](#ch3)

Although the objective of EU Directives has been to open government
procurement to foreign companies, in practice it is still advisable to
work with a locally established company that has the appropriate
contacts and local market expertise. Purchases by government or local
entities are subject to procurement by public tender. Thresholds for
public tenders are as follows:\
\
· Works Directive (93/37/EEC):\
USD 5.35 million\
 \
· Supplies Directive (92/36/EEC):\
USD 214,000\
 \
· Services Directive (92/50/EEC):\
USD 214,000\
 \
· Utilities Directive (93/38/EEC):\
USD 428,000 (water, energy, & transport) \
\
USD 640,000 (telecom)\
  \
USD 5.35 million (works)\
 \
For an explanation of the European Union and its governing European
Directives (laws), please refer to the EU Commercial Guide.

## Distribution and Sales Channels [**Return to top**](#ch3)

Increasing numbers of companies are selling into the Luxembourg market
through distributors and agents. The new-to-market American company will
find well-established representatives in virtually every industry sector
in Luxembourg. Frequently, their territory is larger than just
Luxembourg, and often extends to the Benelux region (Belgium, the
Netherlands, and Luxembourg) and other neighboring European countries as
well. Well-established distributors in certain sectors may be reluctant
to take on new product lines due to various business constraints,
notably the lack of access to quick and affordable financing and high
social costs for additional employees.\
\
Considering the host of distribution options available in Luxembourg, it
is important for future exporters to select the method best suited to
their product. Luxembourg buyers generally prefer to purchase through an
intermediary; selling directly to the end-user is not a common practice.
However, sales of higher-priced, technically sophisticated goods are an
exception to this rule.

## Selling Factors/Techniques [**Return to top**](#ch3)

In addition to being very competitive and sophisticated, language may be
a factor when selling products in Luxembourg. Goods must be labeled in
one of the three official languages: French, German, or Luxembourgish
(Lëtzebuergesch).\
\
U.S. companies are advised to quote prices on a Cost Insurance Freight
(CIF), based on the Belgian sea or airport basis. This is standard
practice for most exporters since it facilitates comparisons with EU
supplier prices, which need no further adjustment for import duties and
are usually quoted on a delivered warehouse basis.

## Electronic Commerce [**Return to top**](#ch3)

(Insert text here)

## Trade Promotion and Advertising [**Return to top**](#ch3)

The American Chamber of Commerce
([www.amcham.lu](http://www.amcham.lu/)), which represents American
companies operating in Luxembourg and Luxembourg firms with U.S.
business interests, also publishes a magazine which is sent to
its members. Rates are available from the AmCham by telephone at +352/
431756 or e-mail: <contact@amcham.lu>.\
\
**Local Publications**\
*\
Daily (major newspapers)*\
\
Letzebuerger Journal (German/French)\
123, rue Adolphe Fischer\
L-1940 Luxembourg\
Tel: +352/ 49 30 33 1\
Fax: +352/ 49 20 65 \
Web: [www.journal.lu](http://www.journal.lu/)\
\
Le Quotidien (French)

32, Dernier Sol

L-2543 Luxembourg

Tel: +352/ 44 77 771

Fax: +352/ 44 77 331

Luxemburger Wort (German/French)\
2, rue Christophe Plantin\
L-2988 Luxembourg\
Tel: +352/ 49 93 1\
Fax: +352/ 49 93 384 \
Web:  [www.wort.lu](http://www.wort.lu/)\
\
Tageblatt (German)\
44, rue du Canal\
L-4050 Esch-Sur-Alzette\
Tel: +352/ 54 71 31 1\
Fax: +352/ 54 71 30 \
Web: [www.tageblatt.lu](http://www.tageblatt.lu/)\
\
*Weekly*\
\
Le Jeudi (French newspaper)\
13, rue du Marché aux Herbes\
L-1728 Luxembourg\
Tel: +352/ 22 05 50\
Fax: +352/ 22 05 44\
Web: [www.le-jeudi.lu](http://www.le-jeudi.lu/)\
\
Letzebuerger Land (German/French)\
59, rue Glesener\
L-1631 Luxembourg\
Tel: +352/ 48 57 57 1\
Fax: +352/ 49 63 09\
Web:  [www.land.lu](http://www.land.lu/)\
\
*Monthly*\
\
Agefi (French business/finance newspaper)\
111b, route d\'Arlon\
L-8311 Capellen\
Tel: +352/ 30 57 57 1\
Fax: +352/ 30 56 01\
Web: [www.agefi.lu](http://www.agefi.lu/)\
\
Echo d\'Industrie (French business journal)\
7, rue Alcide de Gasperi\
L-1615 Luxembourg\
Tel: +352/ 43 53 66 1\
Fax: +352/ 43 23 2

## Pricing [**Return to top**](#ch3)

Luxembourg is a highly competitive market. The Luxembourg importer is
looking for the best quality at the lowest price. While Luxembourg is an
important market in its own right, it is also the country of entry for
many imports to be redistributed throughout Europe. This environment
gives Luxembourg buyers access to a wide range of products at
competitive prices in their own market.

## Sales Service/Customer Support [**Return to top**](#ch3)

(Insert text here)

## Protecting Your Intellectual Property [**Return to top**](#ch3)

The intellectual property rights granted under U.S. patent, trademark or
copyright law can only be enforced in the United States, its territories
and possessions. The EU, for its part, has taken a number of initiatives
to provide intellectual property protection, but not all measures have
been implemented. In case of non-implementation, national laws still
prevail

## Due Diligence [**Return to top**](#ch3)

To assist companies to conduct due diligence prior to entering into a
financial or other agreement, the Commercial Service recommends that
the U.S. firm contact a company that offers commercial information
reports.  For more information contact us at
<brussels.office.box@mail.doc.gov>.

## Local Professional Services [**Return to top**](#ch3)

(Insert text here)

## Web Resources [**Return to top**](#ch3)

(Insert text here)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch4 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 4: Leading Sectors for U.S. Export and Investment 

-   [Agricultural Sector](#agsectors)

**Commercial Sectors**

-   [Transportation](#transportation)

-   [Steel](#steel)

-   [Film](#film)

-   [Media](#media)

-   [Telecommunications](#overview-return-to-top-4)

-   [Finance](#finance)

## Transportation

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    

  Total Local Production                               

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

(Insert footnote information here)

Luxembourg\'s Findel airport is a strategic center for air transport in
the heart of Europe. It is located five miles from the city center.
There are excellent opportunities for American companies looking to do
business in the expanding airport and air transport sectors. Two growing
national carriers are based at Findel; Luxair, its passenger airline,
which flew over 1,200 million passengers in 2002 and Cargolux, its
international airfreight carrier. Cargolux was founded in 1970 and is
now one of the world\'s largest air cargo carriers, handling 359,746
metric tons of airfreight in 2002. Cargolux operates regularly to
numerous destinations worldwide, including U.S. destinations such as New
York, Houston, Seattle, San Francisco, and Los Angeles. Recently, Findel
has been expanding its passenger and cargo handling capacity to
accommodate the growth of its carriers. Despite the country\'s small
size, it is an important logistical point serving the large community of
EU officials, international financial services personnel, and the
growing number of travelers from the neighboring Saarland and Lorraine
regions.\
\
Cargolux operates an all-Boeing 747-400F fleet of twelve aircraft,
giving it the most modern and youngest fleet of any leading
international cargo airline, with an average age of only 2.3 years. In
2002, a contract was signed with Boeing to deliver an additional
747-400F. In conjunction with its acquisition of the world\'s first
B747-400F simulator, Cargolux has completed its building of a new
training facility in Luxembourg. Cargolux had an operating profit of USD
15.4 million and a revenue of USD 731 million. The acquisition of its
new aircraft and an alliance with Swisscargo will allow Cargolux to
maintain its position among the top five international airfreight
carriers.\
\
To develop its European traffic, Luxair has continued to expand as a
major regional European carrier by investing in new jets in order to
migrate to an all-jet fleet. In total, the Luxair fleet counts 8 Embraer
ERJ 145, 5   Boeing 737 and 3 Fokker 50. In 2003, Luxair placed orders
for 3 additional aircrafts, 2 of which have been delivered already., and
one which will be delivered at the beginning of 2005, in order to
develop their activities and to add new destinations to the timetable.

### Best Products/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Steel

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    

  Total Local              2736                        
  Production^1^                                        

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

^1In\ 1000\ tons^

After the Luxembourg ARBED Group\'s 2001 merger with France\'s USINOR
and Spain\'s ACERALIA, the resulting steel producer was christened
ARCELOR in February 2002 and headquartered in Luxembourg. ARCELOR is
currently the world\'s largest steel producer, with a highly diversified
product range and production sites in Luxembourg, Spain, France,
Germany, Belgium and Asia.

ARCELOR viewed the continuing process of restructuring and consolidation
in the European steel industry as an important factor in its future
health. The ARCELOR Group\'s consolidated turnover in the financial year
2002 amounted to a record 27 billion Euro. In Luxembourg the ARCELOR
group employs nearly 7,000 persons.

### Best Prospects/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Film

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    

  Total Local Production                               

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

(Insert footnote information here)

Luxembourg\'s government has played a vital role in the development of
the filmmaking and related industries.  Its active encouragement of the
native audiovisual sector dates to 1989, when its Chamber of Deputies
approved funding for special certificates for Audiovisual Investment
(CIAV), a mechanism it still uses to subsidize investment in the sector.
The CIAV subsidy comprises a tax rebate of about 30 cents for every
eligible dollar invested. The only option for U.S. film companies
seeking to take advantage of this aid is co-production with licensed
Luxembourgish producers.

### Best Prospects/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Media

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    

  Total Local Production                               

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

(Insert footnote information here)

In line with the EU\'s policy of television without frontiers, the
Luxembourg government supported the creation of the private satellite
company Société Européenne des Satellites (SES). It was started in 1985
to operate a communication system by satellite for transmission of
television programs throughout Europe.\
\
The ASTRA satellite broadcasting system and one of Europe\'s biggest
commercial TV companies, Compagnie Luxembourgeoise de Télédiffusion,
operate from SES headquarters. These very successful companies were
created as a result of Luxembourg\'s decision to grant a franchise to
private investors to exploit the satellite positions it had been
allocated. The plan was to send satellites into space that were capable
of beaming TV and radio signals back to earth, and then to rent their
capacities to broadcasters. A decade later, demand has far outstripped
the original forecasts, due partly to the development of digital
technology. Currently, the fleet of thirteen ASTRA satellites broadcasts
to over 210 million households throughout Europe and carries more than
1,000 digital and analogue TV and radio services.\
\
In 2001 and the first six months of 2002, ASTRA attained strong growth
in revenues. Revenues rose 58.5% in the first six months of 2002, profit
however decreased by 15.3 percent due to the financial charges of the GE
Americom acquisition in 2001. In addition to strong growth, ASTRA also
announced other banner events such as the joint venture of SES Global
with Gilat Satellite network and Alcatel space.\
\
In 2000, the merger of Luxembourg-based European media leader CLT-UFA
and the television division of Pearson created RTL Group, a powerful new
media conglomerate. In May 2001, the European Union approved German firm
Bertelsmann AG\'s acquisition of a controlling (67 percent) share in RTL
Group. The conglomerate, which will remain headquartered in Luxembourg,
is a leader in the European radio and television industry, spanning
broadcasting, content, and online activity. It is the largest
independent distribution company outside the U.S., distributing over 200
programs in 35 countries and controlling 18 radio stations and 24
television channels in 10 countries.  

### Best Prospects/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Telecommunications

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    

  Total Local Production                               

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

(Insert footnote information here)

Luxembourg was slow in implementing the European Directives to fully
liberalize the telecommunications sector. P&T Luxembourg\'s voice
telephony and public telecommunications monopoly was abolished on July
1, 1998. Applications for licensing can be obtained from the Institute
of Telecommunications - Luxembourg (ILT) at
[www.etat.lu/ILT](http://www.etat.lu/ILT). ILT further forwards
recommendations to the Minister of Communications, who ultimately grants
or declines applications. Since 1999, nineteen licenses have been
granted to a variety of companies covering the fixed telephony,
pre-/post-paid mobile, calling card, and Internet markets.\
\
For further information, view the telecommunications industry reports
available at [www.export.gov](http://www.export.gov/) or contact the
Commercial Service at <brussels.office.box@mail.doc.gov>.

### Best Prospects/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Finance

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004 (estimated)

  Total Market Size                                    672.8 bn

  Total Local Production                               

  Total Exports                                        

  Total Imports                                        

  Imports from the U.S.                                
  ------------------------ -------------- ------------ -------------------

(Insert footnote information here)

Banking and insurance have long overtaken steel as the most important
sector in the economy. In 2002, the financial sector employed
approximately 14 percent of the total workforce but the economy has
suffered in the current climate of global economic downturn.
Luxembourg\'s real GDP growth rate was 1 percent in 2002. This number is
the lowest in decades due to the fact that at least 20 percent of
Luxembourg\'s GDP relies directly or indirectly on the financial
sector.\
\
In the first months of 2003, the balance sheet total of the banks
established in Luxembourg decreased slightly (0.22 percent).\
\
The two pillars of Luxembourg\'s financial sector - Fund management and
Private Banking - have been the keys to Luxembourg\'s prosperity and
also the reason for the recent downturn. In 2002, Luxembourg domicilated
funds fell by 9 percent to 844.5 billion Euros.  Private investment
increased during 2002 as a result of a 7.5 percent corporate tax rate
cut. \
\
Tax rebates, assistance in obtaining credit, and a host of other
incentives are offered to companies intending to set up in Luxembourg.
Fiscal legislation, which dates from 1929, favors banks and holding
companies. A severe law against the laundering of drug money has been in
effect since 1992. In 1999, this law was extended to include the
laundering of money resulting from all criminal activity.\
\
167 banks, 1,927 investment funds, 410 insurance and re-insurance
companies, and 13,819 domiciled holding companies, (many being
\"letter-box\" companies) benefit from a favorable tax environment and
bank-secrecy legislation. This presence represents the largest banking
concentration in all of the European Union.\
\
Large insurance and re-insurance companies have set up subsidiaries in
the capital. Luxembourg is positioned to become one of the major
European centers in this sector: It is reputed to handle a major share
of the EU\'s insurance business as a result of the favorable fiscal
regime it provides to insurance companies.\
\
Clearstream International is one of the largest financial institutions
in Luxembourg. On May 14, 1999, Cedel Group and Deutsche Börse Clearing
announced a merger resulting in New Cedel International to be the basis
for a single European clearing organization on the model of the
Depository Trust Company (DTC). The company was renamed Clearstream
International on October 28, 1999. The goal of the new organization is
to create a pan-European clearinghouse. Clearstream is divided into
Clearstream Banking Luxembourg (CBL), Clearstream Banking Frankfurt, and
Clearstream Services, and is headquartered in Luxembourg. This creation
of the European clearinghouse has enabled the new CBL to offer their
customers standardized procedures and access to the entire securities
market.\
\
Luxembourg has a small but active stock exchange
([www.bourse.lu](http://www.bourse.lu/)) which has a preeminent position
in the Eurobond Sector. The Luxembourg stock exchange has entered into a
cooperation agreement with EURONEXT, the new Brussels, Paris, and
Amsterdam exchange, which began operations in early 2001.

### Best Products/Services [**Return to top**](#ch4)

(Insert text here)

### Opportunities [**Return to top**](#ch4)

(Insert text here)

### Resources [**Return to top**](#ch4)

(Insert text here)

## Agricultural Sectors [**Return to top**](#ch4)

A generation ago \_\_\_

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking Requirements](#twentyone)

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

-   [Customs Regulations and Contact
    Information](#customs-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

-   [Web Resources](#web-resources-return-to-top-1)

## Import Tariffs [**Return to top**](#ch5)

-   As a member of the EU, Luxembourg applies the EU common external
    tariff to goods imported from non-EU countries. For goods imported
    into Luxembourg from other EU countries, no customs duties apply
    unless the goods contain components imported from outside the EU
    upon which customs duties have not been paid in another EU country.
    Import duties are based on Cost Insurance Freight (CIF) price paid
    for the goods.

-   Tariff rates can be found in [PDF
    format](http://www.trade.gov/td/tic/tariff/EuropeanUnion.pdf) by
    BITD company or by using the [EU Customs Union Online
    Database](http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm)
    by The European Union Commission

## Trade Barriers [**Return to top**](#ch5)

-   Luxembourg maintains an excellent and open trading climate for
    American companies, its leaders are very supportive of free trade

-   As a member of the EU, Luxembourg applies the European Community's
    common customs tariff, all of the Community regulations affecting
    customs legislation, as well as the Common Agricultural Policy

## Import Requirements and Documentation [**Return to top**](#ch5)

If your company wants to be the importer of record rather than your
sales representative, most products may be imported or exported without
prior license. However, certain listed products and products from
certain countries are subject to an import license, for further
information contact:\
\
**Ministry of Economic Affairs**\
6 , Boulevard Royal\
L-2449 Luxembourg\
Tel: 352/ 478-1\
Fax: 352/ 46-0448\
Web:  [http://www.eco.public.lu/](http://www.etat.lu/eco/)

European Community Ministers agreed in 1991 to abolish virtually all
customs documentation on goods moving between EU countries by January 1,
1993. However, countries outside the EU are still required to obtain
proper customs documentation. The following is a summary of the
documentation needed for U.S. exporters of goods to Luxembourg, which is
however, subject to rapid change without notice. U.S. exporters should
always consult a reputable freight forwarder regarding recent changes in
customs documentation and import/export regulations.

-   **Shipping Documents**\
    Mail and parcel post shipments require postal documentation in place
    of bills of landing.  Air cargo shipments require airway bills (in
    place of bills of lading) with the number of copies issued based on
    the requirements of the importer and the airline used. Follow IATA
    and/or ICAO (International Civil Aviation Organization) in addition
    to all other applicable national and/or international regulations
    governing labeling and packing of dangerous and restricted goods, as
    well as issuance of the special shipper\'s certificate required
    under IATA rules for such items (airlines will supply this form).
    ICAO rules may also require documents covering such shipments
    (airlines will supply information and forms, if so required). U.S.
    exporters must also follow U.S. government requirements regarding
    export control documents, including the shipper\'s export
    declaration.

-   **Consular/Customs Invoice**\
    Neither document is required in Luxembourg.

-   **Commercial Invoice**\
    The commercial invoice must be produced in triplicate. There are no
    requirements in form but it must contain the following: date and
    place of shipment, name/firm; address of seller and buyer; mode of
    transport; number; kind and markings of the packages and their
    numerical order; and an exact description of goods (a customary
    commercial description according to kind, quality, grade, and
    weight, both gross and net, in metric units. Special emphasis should
    be placed on any factors which increase or decrease the value of the
    goods; agreed price of goods\--unit cost, total cost F.O.B. factory
    plus shipping, insurance and other charges; delivery and payment
    terms; country of origin of goods; and the signature of the
    exporting firm. It is useful if the commercial invoice contains the
    HTS code (Harmonized Tariff Schedule/Schedule B).\
    \
    This is not mandatory, but helps customs authorities recognize the
    commodity and properly classify it for customs purposes. The first
    four digits of the eight-digit code are harmonized worldwide. 
    Additional information may be requested by the importer, under terms
    of a letter of credit, or due to the nature of a particular trade.

-   **Pro-forma Invoice**\
    A pro-forma invoice is acceptable in lieu of a commercial invoice.
    It should include a complete description and the value of the goods
    shipped. It is mostly used in cases where no actual invoicing
    between the shipper and the consignee exists.

-   **Bills of Lading (B/L)**\
    Generally, to order bills are acceptable. Bills of lading should
    bear the name of the party to be notified. The consignee needs the
    original bill of lading to take possession of the goods. Express
    bills of lading are also acceptable. These B/L\'s help speed up the
    process in cases where bank financing is not necessary. With an
    express bill of lading, goods are automatically transferred to the
    designated consignee without presentation of the original B/L. This
    is ideal for internal company shipments of goods sold on open
    account.

-   **Packing List**\
    This is not a mandatory document. However, including a packing list
    facilitates customs\' clearance of goods.

-   **Certificate of Origin**\
    A certificate of origin is generally not required under Luxembourg
    regulations for imports from the U.S., provided the goods are of
    U.S. origin and marked as such. The importer, bank, or a clause in
    the letter of credit may request a certificate of origin. There are
    no regulations concerning the form and preparation of the
    certificate, but the Chamber of Commerce must certify the data and
    will often require an additional notarized copy for its files. Under
    EU regulations, certificates of origin may be required for
    stipulated goods, including goods subject to surveillance and/or
    quota requirements. Goods covered by either of the systems usually
    require certificates of origin irrespective of the actual origin of
    the goods. Importers will instruct their suppliers when certificates
    of origin need to be issued.

-   **Insurance Certificate**\
    Normal commercial practices apply. Follow the instructions of the
    importer and the insurance company.

## U.S. Export Controls [**Return to top**](#ch5)

The Bureau of Industry and Security (BIS) is responsible for the
licensing of exports out of the United States. There is no longer a
distinction between validated licenses and general licenses\--either you
need a license or you do not need a license (NLR: No License Required). 
An export license would be required for reasons of national security,
foreign policy, and short supply. You can submit form 748P to BIS to
determine your license requirements. The form can be obtained at your
local Commercial Service Export Assistance Center (find location
at [www.BuyUSA.gov](http://www.BuyUSA.gov/)).  For more information on
the BIS, visit their website at
[www.bis.doc.gov](http://www.bis.doc.gov/).\
\
As a member of the EU and the former COCOM (Coordinating Committee for
Multilateral Export Controls), Luxembourg follows the common regime, and
applies the proscribed lists generated by both organizations. As the
COCOM regime is replaced by the Wassenaar Arrangements on Export
Controls for Conventional Arms and Dual-Use Goods and Technologies and
as new lists develop, Luxembourg will utilize those lists to apply the
export control procedures outlined above.

## Temporary Entry [**Return to top**](#ch5)

Luxembourg is a member of the worldwide ATA Carnet System, which can
serve as your Merchandise Passport. An ATA Carnet is an international
Customs document that simplifies Customs procedures for the temporary
importation of commercial samples, professional equipment, and goods for
exhibitions and fairs. The Carnet facilitates international business by
avoiding extensive Customs procedures, eliminating payment of duties and
value-added taxes (minimum 20% in Europe), and eliminating the purchase
of temporary import bonds. ATA Carnets save time, effort, and money. For
more information contact the United States Council for International
Business:\
\
**USCIB ATA Carnet Customer Service Department**\
(212) 354-4480\
Email: atacarnet@uscib.org\
**http://www.uscib.org**\

## Labeling and Marking Requirements [**Return to top**](#ch5)

Until recently, each EU country individually regulated its domestic
industries for packaging and labeling. As a part of the EU\'s 1992
Single Market program, the EU is now attempting to remove technical
barriers by harmonizing existing European legislation and establishing
new rules, where necessary, so that goods sold in one EU country can be
marketed easily in any other EU country. However, differences still
exist from country to country. In addition, national requirements exist
side by side with EU-wide requirements. The following is a review of
packaging and labeling regulations in Luxembourg affecting U.S.
exporters. The review covers both national and EU-wide aspects of
packaging and labeling in Luxembourg.\
\
*What language(s) to use*\
Although Luxembourgish (Lëtzebuergesch) is the national language of
Luxembourg, it is most appropriate to label in either French or German.\
\
*Labeling and other Requirements*\
With only minor exceptions, there are no general labeling requirements
for Luxembourg imports. Requirements for specific products should be
obtained from the importer. Certain commodity imports, including
numerous foodstuffs, are subject to special labeling regulations that
require the label show the name of the manufacturer, composition,
content (in metric units) and country of origin. These special, highly
detailed, and diverse regulations relate largely to health and quality
standards and are embodied in formal Luxembourg legislation and EU
Directives. Given the complexity of this field, information should be
requested from the importer prior to shipment.\
\
An EU Directive was introduced which would prohibit labeling in both the
English and metric systems. Originally planned to be implemented in
2000, this Directive has tentatively been pushed back to 2010.

## Prohibited and Restricted Imports [**Return to top**](#ch5)

Few products are prohibited for importation into Luxembourg. Among these
limited items are endangered species, including those listed in the
CITES convention. Also prohibited from importation are weapons such as
swordsticks, daggers, bludgeons, rifles above 20 caliber, and
antipersonnel mines. American-raised beef treated with hormones also may
not be imported under EU regulations. \
\
For additional information contact the U.S. Commercial Service at
<brussels.office.box@mail.doc.gov> or visit the Luxembourg Embassy and
Consulate in Washington, D.C. website
at [www.luxembourg-usa.org](http://www.luxembourg-usa.org/)

## Customs Contact Information [**Return to top**](#ch5)

#### Administration de Douanes et Accises

26, Place de la Gare

L-1651 Luxembourg

Tel: +352/290191-1

Fax: +352/498790

Web: <http://www.etat.lu/DO>

Email: douanes@do.etat.lu

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-6)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Conformity Assessment](#conformity-assessment-return-to-top)

-   [Product Certification](#product-certification-return-to-top)

-   [Accreditation](#accreditation-return-to-top)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

###  Overview [**Return to top**](#standards-return-to-top)

Products tested and certified in the U.S. to American standards are
likely to have to be retested and re-certified to European Union (EU)
requirements as a result of the EU's different approach to the
protection of the health and safety of consumers and the environment.
Where products are not regulated by specific EU technical legislation,
they are always subject to the EU's General Product Safety Directive as
well as to possible additional national requirements.
(<http://europa.eu.int/comm/consumers/cons_safe/prod_safe/index_en.htm>)

European Union standards created in recent years under the New Approach
are harmonized across the 25 EU member states and European Economic Area
countries in order to allow for the free flow of goods. A feature of the
New Approach is CE marking. While harmonization of EU legislation can
facilitate access to the EU Single Market, manufacturers should be aware
that regulations and technical standards might also become barriers to
trade if U.S. standards are different from those of the European Union.

###  Standards Organizations [**Return to top**](#standards-return-to-top)

EU Standards setting is a process based on consensus initiated by
industry or mandated by the European Commission and carried out by
independent standards bodies, acting at the national, European or
international level. There is strong encouragement for non-governmental
organizations, such as environmental and consumer groups, to actively
participate in European standardization.

Many standards in the EU are adopted from international standards bodies
such as the International Standards Organization (ISO). The drafting of
specific EU standards is handled by three European standards
organizations:

> CENELEC, European Committee for Electrotechnical Standardization
> (<http://www.cenelec.org/>)
>
> ETSI, European Telecommunications Standards Institute
> ([www.etsi.org](http://www.etsi.org/))

CEN, European Committee for Standardization, handling all other
standards (<http://www.cenorm.be/>)

###  Conformity Assessment [**Return to top**](#standards-return-to-top)

Conformity Assessment is a mandatory step for the manufacturer in the
process of complying with specific EU legislation. The purpose of
conformity assessment is to ensure consistency of compliance during all
stages of the production process to facilitate acceptance of the final
product. EU product legislation gives manufacturers some choice with
regard to conformity assessment, depending on the level of risk involved
in the use of their product. These range from self-certification, type
examination and production quality control system, to full quality
assurance system. You can find conformity assessment bodies in
individual member state country in this list by the European Commission
<http://europa.eu.int/comm/enterprise/nando-is/home/index.cfm>[.]{.underline}
To promote market acceptance of the final product, there are a number of
voluntary conformity assessment programs. CEN's certification systems
are the Keymark, the CENCER mark, and the European Standard Agreement
Group. CENELEC has its own initiative
[www.cenelec.org/Cenelec/Homepage.htm](http://www.cenelec.org/Cenelec/Homepage.htm)
ETSI does not offer conformity assessment services.

###  Product Certification [**Return to top**](#standards-return-to-top)

To sell their product on the EU market of 25 member states as well as
Norway, Liechtenstein and Iceland, U.S. exporters are required to apply
CE marking whenever their product is covered by specific product
legislation. CE marking product legislation offers manufacturers a
number of choices and requires decisions to determine which
safety/health concerns need to be addressed, which conformity assessment
module is best suited to the manufacturing process, and whether or not
to use EU-wide harmonized standards. There is no easy way for U.S.
exporters to understand and go through the process of CE marking, but
hopefully this chapter provides some background and clarification.

In the eighties, the New Approach was launched to overcome the lengthy
adoption process of "old approach" type legislation. The goal of the
European Union\'s harmonization program under the New Approach is to
streamline technical harmonization and the development of standards for
certain product groups, including, among others, machinery, toys,
construction products, electromagnetic compatibility, personal
protective equipment, non-automatic weighing instruments, medical
devices, gas appliances, hot water boilers, and radio and
telecommunications terminal equipment (RTTE). Under the New Approach,
Directives cover essential safety, health and environmental
requirements. The three regional European standards organizations, CEN,
CENELEC and ETSI, are mandated by the Commission to develop technical
standards that are consistent with the essential requirements of EU
Directives.

Products manufactured to standards adopted by CEN, CENELEC and ETSI, and
published in the Official Journal as harmonized standards, are presumed
to conform to the requirements of EU Directives. The manufacturer then
applies the CE Mark and issues a declaration of conformity. With these,
the product will be allowed to circulate freely within the European
Union. A manufacturer can choose not to use the harmonized EU standards,
but must then demonstrate that the product meets the essential safety
and performance requirements. Trade barriers occur when design, rather
than performance, standards are developed by the relevant European
standardization organization, and when U.S. companies do not have access
to the standardization process through a European presence.

The CE mark addresses itself primarily to the national control
authorities of the Member States, and its use simplifies the task of
essential market surveillance of regulated products. Although CE marking
is intended primarily for inspection purposes by EU Member State
inspectors, the consumer may well perceive it as a quality mark.

The CE mark is not intended to include detailed technical information on
the product, but there must be enough information to enable the
inspector to trace the product back to the manufacturer or the
authorized representative established in the EU. This detailed
information should not appear next to the CE mark, but rather on the
declaration of conformity, the certificate of conformity (which the
manufacturer or authorized agent must be able to provide at any time,
together with the product\'s technical file), or the documents
accompanying the product.

###  Accreditation [**Return to top**](#standards-return-to-top)

The independent certification bodies, known as notified bodies, have
been officially accredited by competent authorities to test and certify
to EU requirements. However, under the U.S./EU Mutual Recognition
Agreements (MRAs), notified bodies based in the United States and
referred to as conformity assessment bodies, will be allowed to test in
the United States to EU specifications, and vice versa. The costs will
be significantly lower and U.S. products will, as a result, become more
competitive. At this time, the U.S./EU MRAs cover the following sectors:
EMC (in force), RTTE (in force), medical devices (in transition),
pharmaceutical (in transition), and recreational craft (in force). This
link lists to American and European Conformity Assessment bodies
operating under a mutual recognition agreement
<http://ts.nist.gov/ts/htdocs/210/gsig/mra.htm>

Accreditation is handled at member state level. "European Accreditation"
([www.european-accreditation.org](http://www.european-accreditation.org/))
is an organization representing nationally recognized accreditation
bodies. Membership is open to nationally recognized accreditation bodies
in countries in the European geographical area that can demonstrate that
they operate an accreditation system compatible with EN45003 or ISO/IEC
Guide 58.

###  Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

#  The Official Journal is the official gazette of the European Union. It is published daily and consists of two series covering draft and adopted legislation as well as case law, questions from the European Parliament, studies by committees, and more ([**http://europa.eu.int/eur-lex/en/index.html**](http://europa.eu.int/eur-lex/en/index.html)). It lists the standards reference numbers linked to legislation. ([**www.newapproach.org/Directives/DirectiveList.asp).**](http://www.newapproach.org/Directives/DirectiveList.asp).) National technical regulations are published on the Commission's website [**http://europa.eu.int/comm/enterprise/tris/**](http://europa.eu.int/comm/enterprise/tris/) to allow other countries/interested parties to comment. 

###  Labeling and Marking [**Return to top**](#standards-return-to-top)

Manufacturers should be mindful that, in addition to the EU's mandatory
and voluntary schemes, national voluntary labeling schemes might still
apply. These schemes may be highly appreciated by consumers, and thus,
become unavoidable for marketing purposes.

Manufacturers are advised to take note that all labels require metric
units although dual labeling is also acceptable until end of December
2009. The use of language on labels has been the subject of a Commission
Communication, which encourages multilingual information, while
preserving the freedom of Member States to require the use of language
of the country of consumption.

The EU has mandated that certain products be sold in standardized
quantities. Council Directive 80/232/EC provides permissible ranges of
nominal quantities, container capacities and volumes of a variety of
products.
<http://europa.eu.int/eur-lex/en/consleg/main/1980/en_1980L0232_index.html>

The Eco-label The EU adopted legislation in 1992, revised in 2000, to
distinguish environmentally friendly production through a voluntary
labeling scheme called the Eco-label. The symbol, a green flower, is a
voluntary mark. The Eco-label is awarded to producers who can show that
their product is less harmful to the environment than similar such
products. This "green label" also aims to encourage consumers to buy
green products. However, the scheme does not establish ecological
standards that all manufacturers are required to meet to place product
on the market. Products without the EU Eco-label can still enter the EU
as long as they meet the existing health, safety, and environmental
standards and regulations.

There are concerns in the United States that the EU Eco-labeling program
may become a de facto trade barrier; may not enhance environmental
protection in a transparent, scientifically sound manner; may not be
open to meaningful participation by U.S. firms; and may discriminate
unfairly against U.S. business. The EU Eco-label is a costly scheme (up
to EUR 1,300 for registration and up to EUR 25,000/ year for the use of
the label, with a reduction of 25 percent for SMEs) and has therefore
not been widely used so far. However, the Eco-label can be a good
marketing tool and, given the growing demand for green products in
Europe, it is likely that the Eco-label will become more and more a
reference for green consumers.

## Trade Agreements [**Return to top**](#ch5)

See Chapter 6 Investment Climate: section ["Bilateral Investment
Agreements"](#bilateral-investment-agreements-return-to-top)

## Web Resources [**Return to top**](#ch5)

(Insert text here)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch6 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer Policies](#thirtytwo)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-and-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

-   [Web Resources](#web-resources-return-to-top-2)

## Openness to Foreign Investment [**Return to top**](#ch6)

The Grand-Duchy of Luxembourg offers a very favorable and welcoming
attitude toward FDI. Successive governments have effectively attracted
new investment in medium, light and high-tech industries through the use
of incentives, including deferred corporate tax payment schedules,
capital investment subsidies and financing of plant equipment.

The recent European Union (EU) directive on services provided
electronically has caused a number of companies to establish and
consider basing European headquarters in Luxembourg, with its low VAT
rates (lowest in Europe at 15 percent maximum rate as opposed to
Ireland\'s 21 percent for example). Services offered by a company
registered outside the EU are subject to the VAT levy of the customer\'s
country of residence, whereas if registered in an EU member state, the
VAT of company headquarters is applied. In the past two years, major
U.S. electronic service providers have chosen Luxembourg as their
European base of operations, including America Online (AOL), Amazon,
Apples i-Tunes.

U.S. firms are among the most prominent foreign investors in Luxembourg,
producing tires (Goodyear), chemicals (DuPont), glass (Guardian
Industries) and a wide range of industrial equipment.

The major laws affecting incoming foreign investment through
acquisitions, mergers, takeovers, and \"greenfield\" (starting from
nothing) investments are based on the Luxembourg company laws, which are
regularly updated.

The Luxembourg judicial system upholds sanctity of contracts. There is
no overall economic or industrial strategy that has discriminatory
effects on foreign- owned investors. There are no limits on foreign
ownership or control, only general screening of foreign investment;
screening mechanisms are routine and non- discriminatory.

Luxembourg generally boasts a liberal investment regime. There are no
officially \"closed\" sectors; however, a few industries, primarily
utilities, are still dominated by majority state-owned companies, such
as electric power (Cegedel), telecommunications (P&T), and cable
television (one provider per region such as Eltrona).

That said, there are no major sectors/matters in Luxembourg in which
foreign investors are denied national treatment (equivalent to domestic
firms).

Foreign investors are allowed to participate equally in ongoing
privatization programs, and the bidding process is transparent with no
barriers erected against foreign investors at the time of the initial
investment or after the investment is made. Moreover, there are no laws
or regulations specifically authorizing private firms to adopt articles
of incorporation or association which limit or prohibit foreign
investment, participation, or control, and there are no other practices
by private firms to restrict foreign investment, participation in, or
control of domestic enterprises.

As one of the most competitive countries in the world with favorable
economic conditions, the government\'s proactive policies in attracting
FDI contribute to consistent investment growth and strong projections
for future investment. Many international firms find it convenient to
locate European headquarters or holding companies in Luxembourg as a
result of the country\'s openness to foreign cultures and excellent
balance between the high quality of life and high purchasing power.
Approximately 40 percent of Luxembourg residents and over 65 percent of
the workforce are composed of foreigners (non-Luxembourgers), mainly
from EU countries.

## Conversion and Transfer Policies [**Return to top**](#ch6)

There are no restrictions on converting or transferring funds associated
with an investment (including remittances of investment capital,
earnings, loan repayments, lease payments) into a freely usable currency
and at a legal market-clearing rate. There have also not been any recent
changes to remittance policies with respect to access to foreign
exchange for investment remittances. There is no difficulty in obtaining
foreign exchange.

The average delay period currently in effect for remitting investment
returns such as dividends, return of capital, interest and principal on
private foreign debt, lease payments, royalties and management fees
through normal, legal channels is quite brief, approximately 24 hours.
Investors can remit through a legal parallel market including one
utilizing cash and convertible negotiable instruments (such as dollar-
denominated host government bonds issued in lieu of immediate payments
in dollars). There is no limitation on the inflow or outflow of funds
for remittances of profits, debt service, capital, capital gains,
returns on intellectual property, or imported inputs.

## Expropriation and Compensation [**Return to top**](#ch6)

The laws governing expropriation of property are quite complex, and the
process can be arduous and lengthy, depending on the building. The
Ministry of the Interior, along with the Ministry of Justice, set forth
the specific regulations according to each type of case. There have been
no known expropriatory actions in the recent past or policy shifts which
would lead to believe there may be expropriatory actions in the near
future, and there appear to be no tendencies of the host government to
discriminate against U.S. investments, companies or representatives in
expropriation. There are also no sectors (e.g., mining, banking,
telecommunications, large land holdings, etc.) that are more at risk for
expropriatory or similar actions, and no laws that force local
ownership.

Instances of \"creeping expropriation\" or governmental action
tantamount to expropriation, such as confiscatory tax regimes, that
might warrant special investigation (particularly by OPIC prior to
offering coverage), have not been found.

## Dispute Settlement [**Return to top**](#ch6)

There are arbitrage possibilities available for domestic dispute
settlements with the Luxembourg Chamber of Commerce and, on an
international level with the International Chamber of Commerce. There
have been no known investment disputes over the past few years involving
U.S. or other foreign investors or contractors in Luxembourg.

The country\'s legal system is based on the Napoleonic Code. Luxembourg
has assimilated the laws of neighboring countries according to the
nature of the laws: German tax law, French civil law, and Belgian
commercial law (written and consistently applied). Judgments of foreign
courts are accepted and enforced by the local courts, and Luxembourg
does have a written and consistently applied bankruptcy law, which is
based, like other European countries, on EU-wide legislation. Monetary
judgments are usually made in local currency.

The government accepts binding international arbitration of investment
disputes between foreign investors and the state, and the courts
recognize and enforce foreign arbitral awards. International arbitration
is accepted as a means for settling investment disputes between private
parties, and there is indeed a domestic arbitration body within the host
economy.

## Performance Requirements and Incentives [**Return to top**](#ch6)

Luxembourg maintains measures that are consistent with WTO TRIMs
requirements, and in general the country adheres to WTO regulations in
conformity with internal EU market directives. Performance requirements
and incentives are applied uniformly and systematically to both domestic
and foreign investors.

Luxembourg is considered to be a very attractive tax location for doing
business: low effective corporate tax rates (30.3 percent); the lowest
VAT (value-added tax) rates in Europe at 3 percent, 6 percent, 12percent
and 15 percent, according to the good or service purchased; limited
personal tax burden for high- income individuals (lowest individual
rates in the EU with a maximum of 38.9 percent); and a variety of tax
incentives (investment tax credits, new business tax credit, audiovisual
certificates for film productions, venture capital investment
certificates, small business incentives, regional and national
incentives, research and development incentives, environmental
incentives).

Establishing a holding company is of particular value in Luxembourg.
Holding companies set up under the law of July 31, 1929 (so-called 1929
holding companies) are generally exempt from income taxes (corporate
income tax, municipal business tax) and withholding tax on dividends
paid, and are only subject to an annual subscription tax and the capital
tax. Luxembourg generally provides for three types of 1929 holding
companies: ordinary; billionaire holdings, requiring minimum
capitalization of EUR 24 million and provide for further tax exemptions;
and financial holdings which provide for greater flexibility for
intragroup financing.

Luxembourg is one of the world\'s largest financial investment centers,
surpassing USD 1 trillion in assets under management in
Luxembourg-domiciled funds. These funds are generally exempt from
corporate income tax, municipal business tax, and withholding tax on
dividends and are only subject to the subscription and capital taxes.
For nearly two generations, Luxembourg has been one of the world\'s
leading financial centers. Banks, securities depositaries, insurance and
reinsurance companies, as well as other financial service companies, may
benefit from preferential regulations when establishing their taxable
basis for corporate income tax.

Several other available incentives are not given in the context of
taxation but rather as general business or financial incentives, such
as: loans at reduced interest rates; government guarantees on loans;
real estate development assistance in certain industrial sites and
buildings; cash grants (for high-technology investments, reorganizations
of economically justified sectors, research and development of
innovative products, services or manufacturing processes); and financial
incentives for audiovisual productions using production facilities and
locations in Luxembourg.

Performance requirements are imposed on a case-by-case basis, for
example with respect to employment, as a condition for establishing,
maintaining or expanding the investment, or for access to tax and
investment incentives. There is no requirement that investors purchase
from local sources or export a certain percentage of output, however, or
only have access to foreign exchange in relation to their exports. In
the case of foreign investments, there is no requirement that nationals
own shares, that the share of foreign equity be reduced over time, or
that technology be transferred on certain terms. The government does not
impose \"offset\" requirements, whereby major procurements are approved
only if the foreign supplier invests in manufacturing, R&D, or service
facilities related to the items being procured.

The government uses incentives to favor investment in certain locations
and specific geographic areas, for example, abandoned or vacant
industrial sites as in Esch/Alzette, where a new concert hall facility
is being erected. In Dommeldange, The Carousel Picture Company received
incentives to establish their film production studio and sound stages on
part of the old Mecan-Arbed steel plant site. These incentives are
dependent on the size of the operation and nature of the investment.
There are no enforcement procedures for performance requirements; U.S.
and other foreign firms are able to participate in government-financed
and/or subsidized research and development programs on a national
treatment basis, and there is an absence of any discriminatory or
excessively onerous visa, residence, or work permit requirements, or
similar requirements inhibiting foreign investors\' mobility. There are
also no discriminatory or preferential export policies or import
policies affecting foreign investors.

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

According to common laws, there is a right of foreign and domestic
private entities to establish and own business enterprises and engage in
all forms of remunerative activity in Luxembourg. There is also a right
of private entities to freely establish, acquire, and dispose of
interests in business enterprises. In fact, competitive equality is the
standard applied to private enterprises in competition with public ones
with respect to access to markets, credit, and other business
operations, such as licenses and supplies.

## Protection of Property Rights [**Return to top**](#ch6)

Secured interests in property in Luxembourg, both movable and real, are
recognized and enforced through intellectual property laws and community
laws. The legal system that protects and facilitates acquisition and
disposition of all property rights, such as land and buildings is based
on a \"land register\" called \"cadastre\" in French, where each parcel
of property is documented in terms of ownership and duration. There is
adherence to key international agreements on intellectual property
rights, as well as adequate protection for: intellectual property,
patents, copyrights, trademarks, and trade secrets.

Adequate steps have also been taken to implement and enforce the WTO
TRIPS agreement (Trade-Related aspects of Intellectual Property Rights).
The regulation stipulating the measures to prohibit the release for free
circulation, export, re-export or entry for a suspensive procedure of
counterfeit and pirated goods states that the authority competent to
receive applications must be a customs authority. In Luxembourg, this is
the Litigation and Research Department (Division des Contentieux et
Recherches) of the Directorate of Customs and Excise (Direction des
Douanes et Accises). The merits of a case are decided by judicial
proceedings, so the ordinary law courts are responsible for deciding
whether there are grounds for a case. A number of provisions within the
agreement deal with different intellectual property rights and allow for
the possibility of confiscating, or even destroying, counterfeit goods
and the tools or implements used for their production. The Luxembourg
customs authorities may impose measures for a period of six months,
which may be renewed at the request of the right-holder.

The main rules of civil procedure are contained in the Luxembourg Code
of Civil Procedure and in the Administration of Justice Act. In the
absence of specific rules concerning material and local jurisdiction for
certain intellectual property rights, ordinary law applies.

## Transparency of Regulatory System [**Return to top**](#ch6)

The Government of Luxembourg (GoL) uses transparent policies and
effective laws to foster competition and establish \"clear rules of the
game\". The legal system is quite welcoming with respect to FDI. Tax,
labor, environment, health and safety, and other laws and policies in no
way distort or impede investment. Bureaucratic procedures, including
those for licenses and permits, are sufficiently streamlined and
transparent, and there is far less \"red tape\" than in larger European
countries. There are no informal regulatory processes managed by
nongovernmental organizations or private sector associations; all
procedures are managed by government entities. Proposed laws and
regulations are published in draft form for public comment. In addition,
the legal, regulatory, and accounting systems are transparent and
consistent with international norms. There are no private sector and/or
government efforts to restrict foreign participation in industry
standards-setting consortia or organizations.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

Luxembourg government policies facilitate the free flow of financial
resources to support the product and factor markets. Credit is allocated
on market terms, and foreign investors are easily able to get credit on
the local market, thanks to the sophisticated and extremely developed
international financial sector. The private sector has access to a
variety of credit instruments, and there is an effective regulatory
system established to encourage and facilitate portfolio investment. The
only area with certain restrictions concerns the financing of small and
medium- size businesses, however somewhat less than in neighboring
European countries.

Luxembourg\'s banking system is sound and strong. As of October 31,
2004, a total of 166 banks were operating, with estimated total assets
of EUR 679 billion and approximately 22500 employees. There are no
\"cross- shareholding\" and \"stable shareholder\" arrangements used by
private firms to restrict foreign investment through mergers and
acquisitions. Also, measures to prevent hostile takeovers by foreign
investors do not exist, since the situation is largely non-applicable.

## Political Violence [**Return to top**](#ch6)

Luxembourg is consistently ranked among the overall safest or lowest
risk countries and most politically stable in the world. There have been
no recent incidents involving politically motivated damage to projects
or installations, and the environment is not growing increasingly
politicized such that civil disturbances would be more likely. There are
no known nascent insurrections, belligerent neighbors or other
politically motivated activities.

This year, the World Markets Research Centre of London rated Luxembourg
number one as the \"least risky place to do business\" in the world. The
risk ratings were noted all \"insignificant\" for the following reasons:
political risk (existence of institutional permanence, internal and
external political consensus); economic risk (existence of forward
planning, a diverse and resilient economy); legal risk (existence of
innovative legislation, transparency, independence and experience); tax
risk (coherent and fair taxation system, low \"effective\" corporate and
personal income tax rates below EU average); and operational risk
(supportive attitudes toward foreign investment, high quality of
infrastructure, existence of \"social peace\" with Tripartite system of
negotiation process involving labor, employers and government, low
bureaucracy and corruption).

## Corruption [**Return to top**](#ch6)

The Grand-Duchy of Luxembourg has laws, regulations, and penalties to
combat corruption effectively, and they are enforced impartially with no
disproportionate attention to foreign investors or any other group. The
country ranks very favorably on the World Bank corruption index (very
low). In particular, Luxembourg has made anti-money laundering and
suppression of terrorism financing a priority, given its status as a
leading world financial center. The government has taken the lead in
freezing bank accounts suspected to be connected to terrorist networks,
and in November 004 extended the law against money-laundering and
terrorist financing to additional professional groups (including
auditors, accountants, attorneys, and notaries).

Regulations are enforced by the strong but flexible Financial Sector
Surveillance Commission (CSSF, which is equivalent to the Securities and
Exchange Commission). U.S. firms have not identified corruption as an
obstacle to FDI in Luxembourg. There are no areas or sectors where
corruption is pervasive, whether in government procurement, transfers,
performance requirements, dispute settlement, regulatory system, or
taxation. Giving or accepting a bribe is a criminal act subject to the
penal code. Senior government officials take anti-corruption efforts
seriously. International, regional or local nongovernmental \"watchdog\"
organizations do not operate in the country, given the lack of need.

According to industry advisors, a local company cannot deduct a bribe to
a foreign official from taxes.

## Bilateral Investment Agreements [**Return to top**](#ch6)

Luxembourg has a bilateral taxation as well as aviation treaty with the
United States, and there are no taxation issues of concern to U.S.
investors.

Other countries with which Luxembourg has bilateral agreements are:

Austria

Bahrain (aviation)

Barbados (aviation)

Belgium

Brazil

Bulgaria

Canada

Chile (aviation)

China

Costa Rica (aviation)

Croatia (aviation)

Cyprus (aviation)

Czech Republic

Denmark

Finland

France

Gabon (aviation)

Gambia (aviation)

Germany

Greece

Hong Kong (aviation)

Hungary

Iceland

India (aviation)

Indonesia

Irak (aviation)

Ireland

Israel (aviation)

Italy

Japan

Jordan (aviation)

Kenya (aviation)

Kuwait (aviation)

Lebanon (aviation)

Macao (aviation)

Malaysia

Malta

Mauritius

Mexico

Mongolia

Morocco

Nepal (aviation)

Netherlands

New Zealand (aviation)

Norway

Philippines (aviation)

Poland

Portugal

Romania

Russia

Singapore

Slovakia

Slovenia

South Africa

South Korea

Spain

Sweden

Switzerland

Syria (aviation)

Thailand

Togo (aviation)

Trinity and Tobago

Tunisia

Turkey

Ukraine

United Kingdom

Uzbekistan

Vietnam

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

Luxembourg is a member of the Multilateral Investment

Guarantee Agency (MIGA).

## Labor [**Return to top**](#ch6)

As stated above, Luxembourg boasts a very stable, diverse, multilingual
and qualified labor market, benefiting from the over 100,000 readily
available cross-border commuter workers (both industrial and service
employees) who come to work in Luxembourg on daily basis from the
neighboring countries of Belgium, France and Germany. Foreign
(non-Luxembourger) workers re treated the same as nationals.

Foreign investors often cite Luxembourg\'s labor relations as a primary
reason for locating in the Grand- Duchy. Unemployment in 2004 has
averaged approximately4 percent, usually the lowest in the EU, and labor
relations have been peaceful since the 1930s. Most industrial workers
are organized by unions, linked to one of the major political parties;
Luxembourg is proud of the system of representatives of business, unions
and government participating in a \"tripartite\" process in the conduct
of major labor negotiations.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

There are no foreign trade zones, free trade zones, or

free ports in Luxembourg.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

Together with the United Kingdom (UK) and France, Luxembourg is among
the main actors in FDI flows external to the 25 EU member states. In
2003, Luxembourg followed the UK as the EU\'s second largest investor in
the rest of the world, with outflows of EUR 31 billion. With regard to
extra-EU inflows, Luxembourg was the main EU recipient of FDI, with
inflows of EUR 38 billion and a 49 percent share of the EU25 total. The
predominant role of Luxembourg in EU FDI is mainly explained by the
importance of its financial intermediation activity. With inflows higher
than outflows by EUR 6 billion, Luxembourg was the largest net recipient
of FDI from the rest of the world, followed by Ireland, at EUR 5
billion.

In 2002, financial intermediation accounted for 94 percent of
Luxembourg\'s outward FDI flows to the rest of the world, and 98 percent
of inward flows from the rest of the world. FDI include data on capital
invested in or by holding companies. This type of company accounts for a
high proportion of the FDI inflows and outflows of Luxembourg. Although
a precise quantification is not possible, it is reasonable to suppose
that a large part of extra-EU FDI inflows going to Luxembourg are
reinvested by holding companies elsewhere in the EU, and that a large
part of extra-EU outflows are channeled through Luxembourg from other EU
member states. Additional FDI data can be found through Eurostat\'s
\"NewCronos\" database.

## Web Resources [**Return to top**](#ch6)

(Insert text here)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 7: Trade and Project Financing

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#fiftyseven)

-   [Web Resources](#web-resources-return-to-top-3)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

(Insert text here)

## How Does the Banking System Operate [**Return to top**](#ch7)

(Insert text here)

## Foreign-Exchange Controls [**Return to top**](#ch7)

There are no foreign exchange regulations or limitations on the transfer
of capital or profits in Luxembourg, except in exceptional situations,
i.e., UN sanctions.  Luxembourg has run a persistent trade deficit over
the past ten years, but enjoys an overall balance of payments surplus.
This is due to revenues from the financial services sector.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

**Citibank Luxembourg SA**\
58 Boulevard Grande-Duchesse Charlotte\
L-1330 Luxembourg\
Tel: +352/ 45 14 14-1\
Fax: +352/ 45 14 14-75\
Web:  [www.citibank.lu](http://www.citibank.lu/)\
\
**JP Morgan Chase \
**5 Rue Plaetis\
L-2012 Luxembourg\
Tel: +352/ 46 26 85-1\
Fax: +352/ 46 26 85 416\
Web:  [www.jpmorgan.com](http://www.jpmorgan.com/)\
\
**Morgan Stanley Investment Management**\
6B, Route de Treves\
L-2633 Luxembourg\
Tel: +352/ 34 64 61\
Fax: +352/ 34 64 6220\
Web:  [//sicav.msdw.com/](http://sicav.msdw.com/)\
\
**\
Major Luxembourg Banks**\
\
**Banque et Caisse d\'Épargne de l\'État**\
(State and Savings Bank)\
Place de Metz 1-2\
L-2954 Luxembourg\
Tel: +352/ 40 15-1\
Fax: +352/ 40 15-2099\
Web:  [www.bcee.lu](http://www.bcee.lu/)\
\
**Banque Internationale à Luxembourg**\
69 Route d\'Esch\
L-2953 Luxembourg\
Tel: +352/ 4590 4826\
Fax: +352/ 4590 2010\
Web:  [www.bil.lu](http://www.bil.lu/)\
\
**Clearstream International SA**\
67 Boulevard Grande-Duchesse Charlotte\
L-2967 Luxembourg\
Tel: +352/ 44 99 21\
Fax: +352/ 44 99 28 210\
Web:  [www.clearstream.lu](http://www.clearstream.lu/)

## Project Financing [**Return to top**](#ch7)

In Luxembourg, public aid for business and investment projects is
available in many different forms. Facilities are provided by the state
and the European Union (EU), and include the following incentives:\
\
· Funds may be raised through a capital grant awarded by the State or,
if preferred, through a minority shareholding by the Société Nationale
de Credit et d\'Investissement (National Credit and Investment
Corporation)\
· Long term capital may be borrowed in the form of reduced-rate loans
from the Société Nationale de Credit et d\'Investissement or from the
EU.\
· Loans contracted from private credit institutions may be eligible for
an interest rebate from the Luxembourg Government or be underwritten by
the Luxembourg State.\
· Industrial land may be made available by local authorities and the
government\
· Up to 50% of the cost of research and development projects may be
financed by the government\
· Government grants are available for organizational studies.\
· Various forms of tax relief are available as an incentive to new
investment in Luxembourg.

## Web Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: <http://www.tda.gov/>

SBA\'s Office of International Trade: <http://www.sba.gov/oit/>

USDA Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

(Insert a link to the applicable Multilateral Development Bank here and
any other pertinent web resources.)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-4)

## Business Customs [**Return to top**](#ch8)

(Insert text here)

## Travel Advisory [**Return to top**](#ch8)

(Insert text here)

## Visa Requirements [**Return to top**](#ch8)

Americans planning to stay in Luxembourg longer than 90 days must apply
for a visa.\
Please visit <http://www.amembassy.lu/consul/visa.html> for information.

U.S. Companies that require travel of foreign businesspersons to the
United States should be advised that security options are handled via an
interagency process. Visa applicants should go to the following links.

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov: <http://www.unitedstatesvisas.gov/>

## Telecommunications [**Return to top**](#ch8)

Over the past 10 years, substantial improvements have taken place in
Luxembourg's telecommunications environment. P&T Luxembourg
(http://www.telecom.lu), formerly the country's telecom monopoly and
still primary supplier, has lowered prices and expanded services so that
the culture shock for someone used to American-style phone companies has
been considerably reduced. ISDN is in widespread use for both business
and residential phone lines and Luxembourg's mobile GSM networks are
fully competitive with and, in many ways superior to, those in the US.

## Transportation [**Return to top**](#ch8)

Luxembourg's Findel Airport (LUX) receives flights from most major
European cities. It is connected to the city by a regular bus service.
Luxembourg is also connected to Basel, Berlin, Brussels, Paris, and
Frankfurt by direct train lines. Train times and prices can be checked
via the Internet at [www.bahn.de](http://www.bahn.de/)

Inside Luxembourg there is a network of train lines operated by Chemins
de fer Luxembourgeois (CFL). More information can be found at
<http://www.cfl.lu/>

## Language [**Return to top**](#ch8)

Luxembourgish, also spelled Lëtzebuergesch, is the native language
spoken in the majority of homes. It has been recognized as the national
language since 1984; both French and German remain official languages.
German is the language of instruction beginning in first grade; French
begins shortly thereafter. French is the official language of the
administration, jurisdiction, parliament, education, and some literary
circles. Daily newspapers are written mainly in German with some
articles written in French. Many Luxembourgers, especially those in the
business and government sectors, also speak English.

## Health [**Return to top**](#ch8)

(Insert text here)

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

GMT +1 (same as Amsterdam, Berlin, Brussels, Madrid, Paris, Rome,
Vienna, etc.)

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

(Insert text here)

## Web Resources [**Return to top**](#ch8)

(Insert text here)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

(Insert text here)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service
please go to the following website:
[http://www.export.gov/marketresearch.html](http://www.export.gov/marketresearch.html )
and click on Country and Industry Market Reports.

Please note that these reports are available only to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Please click on the link below for information on upcoming trade events.

<http://www.export.gov/tradeevents.html>

<http://www.buyusa.gov/luxembourg/en/19.html>

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research

-   Promote your products and services to qualified buyers

-   Meet the best distributors and agents for your products and services

-   Overcome potential challenges or trade barriers

For more information on the services the U.S. Commercial Service offers
U.S. businesses, please click on the link below.

(Insert link to Products and Services section of local buyusa.gov
website here.)

[Return to table of
contents](#doing-business-in-luxembourg-a-country-commercial-guide-for-u.s.-companies)

# 

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.