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# Doing Business in Slovenia: 2008 Country Commercial Guide for U.S. Companies

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# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In Slovenia](#ch1)

-   [Chapter 2: Political and Economic Environment](#ch2)

-   [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)

[[]{#ch1 .anchor}Return to table of contents](#section)

# Chapter 1: Doing Business in Slovenia

-   [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**](#ch1)

-   A small transition economy with a population of 2 million, the
    United States considers Slovenia an important model of success and
    political stability for its neighbors in the former Yugoslavia.
    Strategically located at the "gateway" to the Balkans, Slovenia has
    been a star performer since its independence in 1991. It has
    registered dramatic gains in per capita and aggregate wealth,
    established a stable and well-functioning democracy, and raised the
    standard of living for Slovenes to a level on par with the smaller
    Western European economies. Slovenia joined the European Union in
    May 2004, the euro zone on January 1, 2007, the Schengen zone
    December 21, 2007, and currently holds the EU Presidency through
    June 2008.

-   Today, Slovenia is one the best economic performers in central and
    eastern Europe, with a GDP per capita in PPP in 2006 at € 19,200.
    Slovenia has enjoyed healthy growth figures for the past 8 years,
    averaging 4.0% annual GDP growth. The European economic slowdown
    reduced the pace of growth, somewhat, beginning in 2001. GDP grew by
    5.2% in 2006. An estimate for 2007 had growth at 6.3%. Slovenia\'s
    economy is highly dependent on foreign trade. About two-thirds of
    Slovenia\'s trade is with the EU. Additionally, the country has
    successfully penetrated markets to the south and east, including the
    former Soviet Union region. Trade with the U.S. comprises only 2.5%
    of overall trade.

-   Slovenia's success is in large part based on pre-existing conditions
    that positioned the country extremely well for transition. These
    included a highly educated population, sound infrastructure, and an
    economy more oriented to the West than most transition countries.
    These advantages allowed Slovenia to take a more gradual approach to
    change, avoiding the social strife that much of Central and Eastern
    Europe experienced during the 1990s. Today, however, Slovenia is
    faced with growing challenges. Much of the economy remains in state
    hands and foreign direct investment (FDI) in Slovenia is one of the
    lowest in the EU on a per capita basis. Taxes are relatively high,
    the labor market is often seen as inflexible, and legacy industries
    are showing signs of increasing competitive pressures from China,
    India, and elsewhere. The current, center-right government, elected
    in October 2004, pledged to accelerate privatization in a number of
    large state holdings, but has been slow to move forward on these
    promises.

-   This high level of openness makes Slovenia extremely sensitive to
    economic conditions in its main trading partners and changes in its
    international price competitiveness. Keeping labor costs in line
    with productivity is a key challenge for Slovenia\'s economic
    well-being. Services contributed the most to the national output in
    2006, accounting for 62% of GDP. Industry and construction comprised
    34.7% of GDP; and, agriculture, forestry, and fishing accounted for
    2.3% of GDP.

-   The primary competition for American companies in the Slovenian
    marketplace is European companies, especially Austrian, German, and
    Italian.

## Market Challenges [**Return to top**](#ch1) 

-   Slovenia has a small domestic market of 2 million people.

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-   Slovenia has a highly skilled but small and stationary workforce,
    with wage demands increasing with the increase in GDP growth.

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-   Slovenia has been slow to privatize strategic companies and the
    Government plans to privatize very slowly.

## Market Opportunities [**Return to top**](#ch1)

-   The investment climate in Slovenia is a stable one, with excellent
    infrastructure, a well-educated workforce, and an excellent, central
    location between western and eastern Europe.

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-   The major growth industries in Slovenia are the high-tech sector,
    especially information and communication technology (ICT), financial
    services, and logistics.

## Market Entry Strategy [**Return to top**](#ch1)

-   Although all market strategies are applicable, Slovenian business
    people like to develop relationships; building personal contacts
    with Slovenian business people and working with a local
    representative are common ways U.S. companies enter the Slovenian
    market. More information on doing business in Slovenia is available
    at the U.S. Embassy in Slovenia's website,
    [http://slovenia.usembassy.gov](http://slovenia.usembassy.gov/) and
    [www.buyusa.gov/slovenia/en](http://www.buyusa.gov/slovenia/en)*.*
    U.S. exporters and investors seeking general export
    information/assistance and country-specific commercial information
    should contact the U.S. Department of Commerce, Trade Information
    Center by phone at 1-800-USA-TRAD(E) or by fax at (202) 482-4473.

[Return to table of contents](#section)

[[]{#ch2 .anchor}Return to table of contents](#section)

# 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/3407.htm>

[Return to table of contents](#section)

[[]{#ch3 .anchor}Return to table of contents](#section)

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

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

-   [Data Privacy](#data-privacy-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)

The use of a carefully selected local agent or distributor can be
cheaper and more efficient than direct sales by a U.S. exporter
unfamiliar with the Slovene market. Reliable and capable partners can be
found, but care should be exercised. The U.S. Embassy in Slovenia can
assist companies in screening potential Slovene partners. More
information on how the U.S. Embassy can help you identify potential
business partners can be found at <http://www.buyusa.gov/slovenia/en/> .

Due to a general lack of financial discipline, late payment to suppliers
is a common problem in Slovenia. Therefore, U.S. firms are advised to
obtain a confirmed irrevocable letter of credit as the basis for
conducting business with a new local partner. Dunn & Bradstreet's agent
in Slovenia "I d.o.o." ([www.idoo.si](http://www.idoo.si/), email:
<imojstri@idoo.si>, phone: +386-1-234-2940; fax: +386-1-234-2958) or the
Slovenian Chamber of Commerce (email: <infopika@gzs.si>, phone:
+386-1-5898-127; fax: +386-1-5898-100, attn: INFOLINK Office) may be
helpful in determining the creditworthiness of a potential local
partner.

The following are some well-known American companies with local
agent/distributor or representative offices: Goodyear, Merck, Sharp &
Dohme, Coca-Cola Amatil, UPS, IBM, Nike, DHL, Philip Morris, Oracle,
Hewlett Packard, 3M, Microsoft, Air Routing International, Pfizer,
Wrigley, Deloitte & Touche, Cisco, Chrysler, Ernst & Young, Johnson &
Johnson, Masterfoods, Pharmacia & Upjohn, Proctor & Gamble, Schering
Plough, Eli Lilly, and Compaq.

In Slovenia, foreigners may establish any legal organizational form
described in the Companies Act (limited-liability companies, joint-stock
companies, limited partnerships with share capital, limited
partnerships, general partnerships, and silent partnerships). All
companies acquire the status of a legal person upon their entry into the
court register. Prior to the entry into the court register, a number of
formalities must be performed. It is therefore beneficial to consult a
lawyer as soon as possible to prevent unnecessary difficulties that may
arise during the process of founding a company (from adopting the
memorandum and articles of association to their certification by a
notary public and entry into the court register). Foreigners may be
exclusive or part owners of companies.

In conducting business in Slovenia, foreign companies have the same
rights, obligations, and responsibilities as domestic companies. When a
company is entered into the court registry, it becomes a Slovene legal
entity, regardless of the origin of capital. The principles of
commercial enterprise, free operation, and national treatment apply to
the operations of foreign as well as domestic companies. Basic rights
are guaranteed by the Companies Act and the Law on Foreign Transactions,
namely: the right to manage or participate in the management of
companies in proportion to invested funds; the right to transfer
contractual rights and obligations to other foreign and domestic natural
and legal persons; the right to participate in profits in proportion to
invested funds; the right to free transfer and reinvestment of profits;
and the right to recover investments in companies and their share in net
assets after the dissolution of companies.

Restrictions are, however, placed on foreign investments in certain
sectors of strategic or other special significance. Foreigners cannot
establish their own companies in the manufacture or sale of arms and
military equipment.

More detailed information on the types of legal entities, as well as on
how to establish a company, can be found at
<http://www.investslovenia.org/> . For certain activities, such as road
transport, catering, and other professions, a certification is required.
A complete list of activities requiring a special permit or
certification is available at <http://www.pcmg.si/index.php?id=1825>

Companies wishing to use distribution, franchising, and agency
arrangements need to ensure that the agreements they put into place are
in accordance with European Union (EU) and Member State national laws.
Council Directive 86/653/EEC establishes certain minimum standards of
protection for self-employed commercial agents who sell or purchase
goods on behalf of their principals. In essence, the Directive
establishes the rights and obligations of the principal and its agents;
the agent's remuneration; and the conclusion and termination of an
agency contract, including the notice to be given and indemnity or
compensation to be paid to the agent. U.S. companies should be
particularly aware that the Directive states that parties may not
derogate certain requirements. Accordingly, the inclusion of a clause
specifying an alternate body of law to be applied in the event of a
dispute will likely be ruled invalid by European courts.

Key Link:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31986L0653:EN:HTML

The European Commission's Directorate General for Competition enforces
legislation concerned with the effects on competition in the internal
market of such \"vertical agreements.\" Most U.S. exporters are small-
and medium-sized companies (SMEs) and are therefore exempt from the
Regulations because their agreements likely would qualify as
\"agreements of minor importance,\" meaning they are considered
incapable of affecting competition at the EU level but useful for
cooperation between SMEs. Generally speaking, companies with fewer than
250 employees and an annual turnover of less than €50 million are
considered small- and medium-sized undertakings. The EU has additionally
indicated that agreements that affect less than 10 percent of a
particular market are generally exempted as well (Commission Notice
2001/C 368/07).

Key Link:

http://eur-lex.europa.eu/LexUriServ/site/en/oj/2001/c_368/c_36820011222en00130015.pdf

The EU also looks to combat payment delays with Directive 2000/35/EC.
This covers all commercial transactions within the EU, whether in the
public or private sector, primarily dealing with the consequences of
late payment. Transactions with consumers, however, do not fall within
the scope of this Directive. In sum, the Directive entitles a seller who
does not receive payment for goods/services within 30-60 days of the
payment deadline to collect interest (at a rate of 7 percent above the
European Central Bank rate) as compensation. The seller may also retain
the title to goods until payment is completed and may claim full
compensation for all recovery costs.

Key Link: http://ec.europa.eu/comm/enterprise/regulation/late_payments/

Companies' agents and distributors can take advantage of the European
Ombudsman when victim of inefficient management by an EU institution or
body. Complaints can be made to the European Ombudsman only by
businesses and other bodies with registered offices in the EU. The
Ombudsman can act upon these complaints by investigating cases in which
EU institutions fail to act in accordance with the law, fail to respect
the principles of good administration, or violate fundamental rights.

Key Link:
[http://www.ombudsman.europa.eu](http://www.ombudsman.europa.eu/)

## Data Privacy [**Return to top**](#ch3)

The EU's general data protection Directive (95/46/EC) spells out strict
rules concerning the processing of personal data. Businesses must tell
consumers that they are collecting data, what they intend to use it for,
and to whom it will be disclosed. *Data subjects* must be given the
opportunity to object to the processing of their personal details and to
opt-out of having them used for direct marketing purposes. This opt-out
should be available at the time of collection and at any point
thereafter. This general legislation is supplemented by specific rules
set out in the \"Directive on the processing of personal data and the
protection of privacy in the electronic communications sector\"
(2002/58/EC). This requires companies to secure the prior consent of
consumers before sending them marketing emails. The only exception to
this opt-in provision is if the marketer has already obtained the
intended recipient's contact details in the context of a previous sale
and wishes to send them information on similar products and services.

Key Link: http://ec.europa.eu/justice_home/fsj/privacy/index_en.htm

*Transferring Customer Data to Countries Outside the EU*

The EU\'s general data protection Directive provides for the free flow
of personal data within the EU but also for its protection when it
leaves the region's borders. Personal data can only be transferred
outside the EU if adequate protection is provided for it or if the
**unambiguous consent** of the data subject is secured. The European
Commission has decided that a handful of countries have regulatory
frameworks in place that guarantee the adequate protection of data
transferred to them -- the United States is not one of these.

The Department of Commerce and the European Commission negotiated the
Safe Harbor agreement to provide U.S. companies with a simple,
streamlined means of complying with the adequacy requirement. It allows
those U.S. companies that commit to a series of data protection
principles (based on the Directive), and who publicly state that
commitment by \"self-certifying\" on a dedicated website, to continue to
receive personal data from the EU. Signing up is voluntary but the rules
are binding on those who do. The ultimate means of enforcing Safe Harbor
is that failure to fulfill the commitments will be actionable as an
unfair and deceptive practice under Section 5 of the FTC Act or under a
concurrent Department of Transportation statute for air carriers and
ticket agents. While the United States as a whole does not enjoy an
adequacy finding, companies that join up to the Safe Harbor scheme will.
Companies whose activities are not regulated by the FTC or DoT (e.g.
banks, credit unions, savings and loan institutions, securities dealers,
insurance companies, not-for-profit organizations, meat packing
facilities, or telecommunications carriers) are not eligible to sign up
to the Safe Harbor.

EU based exporters or U.S. based importers of personal data can also
satisfy the adequacy requirement by including data privacy clauses in
the contracts they sign with each other. The Data Protection Authority
in the EU country from where the data is being exported must approve
these contracts. To fast track this procedure the European Commission
has approved sets of model clauses for personal data transfers that can
be inserted into contracts between data importers and exporters. The
most recent were published at the beginning of 2005. Most transfers
using contracts based on these model clauses do not require prior
approval. Companies must bear in mind that the transfer of personal data
to third countries is a processing operation that is subject to the
general data protection Directive regardless of any Safe Harbor,
contractual or consent arrangements.

EU countries' Data Protection Authorities (DPAs) and large multinational
companies are also developing a third major approach to compliance with
EU rules on transfers of personal data to countries outside the EU. This
is based on country-by-country approval of "binding corporate rules"
(BCRs). Companies that set up BCRs that satisfy European DPAs will be
able to use the presumption of conformity that these approvals provide
to transfer personal data from the EU to any location in the world --
not just the United States. BCRs can be a tool for compliance with
privacy rules on a global scale. The process of negotiation and approval
of the BCRs is currently lengthy and complex, and has not been attempted
by small or medium-sized companies.

Key Links: http://www.export.gov/safeharbor/

<http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm>

<http://ec.europa.eu/justice_home/fsj/privacy/workinggroup/wpdocs/2007_en.htm>

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

Opportunities for franchising are limited due to Slovenia's small market
size. McDonald's, American Express, and Diners\' Club are the best-known
U.S. franchises in Slovenia. The majority of McDonalds' restaurants in
Slovenia are franchised. There are no special legal requirements for
gaining franchise license posed by the local market. For local (tax)
reporting purposes, a legal entity must be the holder of franchise
license.

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

Direct marketing is growing year by year in Slovenia. This growth,
however, has caused an increase in consumers' preference not to receive
this kind of advertising. The postal service has provided Slovene
residents with special stickers indicating, if positioned on the
mailbox, the individual's preference not to receive any direct marketing
mail. The sale of mailing lists of individuals is not common and
mail-order houses are rare. Amway is the only U.S. direct marketing
company with an office in Slovenia. Studio Moderna offers direct
marketing of U.S. products through infomercials on local television
stations in several countries in the region.

There is a wide range of EU legislation that impacts the direct
marketing sector. Compliance requirements are stiffest for marketing and
sales to private consumers. Companies need to focus, in particular, on
the clarity and completeness of the information they provide to
consumers prior to purchase, and on their approaches to collecting and
using customer data. The following gives a brief overview of the most
important provisions flowing from EU-wide rules on distance selling and
on-line commerce. Companies are advised to consult the information
available via the hyper-links, to check the relevant sections of
national Country Commercial Guides, and to contact the Commercial
Service at the U.S. Mission to the European Union for more specific
guidance.

*Processing Customer Data*

The EU has strict laws governing the protection of personal data,
including the use of such data in the context of direct marketing
activities. For more information on these rules, please see the privacy
section above.

*Distance Selling Rules*

-   Distance and Door-to-Door sales

> The EU's Directive on distance selling to consumers (97/7/EC) sets out
> a number of obligations for companies doing business at a distance
> with consumers. It can read like a set of onerous \"do's\" and
> \"don'ts,\" but in many ways it represents nothing more than a
> customer relations good practice guide with legal effect. Direct
> marketers must provide clear information on the identity of themselves
> as well as their supplier, full details on prices including delivery
> costs, and the period for which an offer remains valid -- all of this,
> of course, before a contract is concluded. Customers generally have
> the right to return goods without any required explanation within
> seven days, and retain the right to compensation for faulty goods
> thereafter. Similar in nature is the Doorstep Directive (85/577/EEC)
> which is designed to protect consumers from sales occurring outside of
> a normal business premises (e.g., door-to-door sales) and essentially
> assure the fairness of resulting contracts.
>
> Key Link:
> <http://ec.europa.eu/consumers/cons_int/safe_shop/index_en.htm>

-   Distance Selling of Financial Services

> Financial services are the subject of a separate Directive that came
> into force in June 2002 (2002/65/EC). This piece of legislation amends
> three prior existing Directives and is designed to ensure that
> consumers are appropriately protected in respect to financial
> transactions taking place where the consumer and the provider are not
> face-to-face. In addition to prohibiting certain abusive marketing
> practices, the Directive establishes criteria for the presentation of
> contract information. Given the special nature of financial markets,
> specifics are also laid out for contractual withdrawal.
>
> Key Link:
> <http://ec.europa.eu/consumers/cons_int/fina_serv/index_en.htm>

*Direct Marketing Over the Internet*

The e-commerce Directive (2000/31/EC) imposes certain specific
requirements connected to the direct marketing business. Promotional
offers must not mislead customers and the terms that must be met to
qualify for them have to be easily accessible and clear. The Directive
stipulates that marketing e-mails must be identified as such to the
recipient and requires that companies targeting customers on-line must
regularly consult national opt-out registers where they exist. When an
order is placed, the service provider must acknowledge receipt quickly
and by electronic means, although the Directive does not attribute any
legal effect to the placing of an order or its acknowledgment. This is a
matter for national law. Vendors of electronically supplied services
(such as software, which the EU considers a service and not a good) must
also collect value added tax (see Electronic Commerce section below).

Key Link: <http://ec.europa.eu/internal_market/e-commerce/index_en.htm>

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

In addition to establishing their own companies, foreigners can also
invest in existing companies. For private companies and
limited-liability companies, investments are allowed with the agreement
of the partners and by joining in the partnership agreement. Takeovers
of joint-stock companies are much more frequent and depend less on the
individual partners/shareholders as the shares are in the form of stocks
and are quoted on the Stock Exchange (shares of closed companies are an
exception).

Takeovers can be accomplished through mergers or acquisitions. The 1997
Law on Takeovers and the Companies Act regulate takeovers. This law
establishes conditions for the purchase of stocks/shares sold by
individual companies and issuers of stocks when specific legal or
natural persons acquire or wish to acquire a stake in a company that
gives the buyer more than 25% of the voting rights. Takeovers occur of
both: public companies with stocks quoted in the market and private
companies through direct offers to shareholders. If the company
conducting a takeover acquires a controlling interest in another
company, it is obliged to inform the issuer of shares, the Securities
Market Agency (SMA), and the Stock Exchange within seven days of the
date that it acquires a majority stake. The issuer, who has received
such a notice, must publish it within ten days in daily newspapers or on
the premises of the Stock Exchange (Official Gazette no. 47/97).

Both domestic and foreign legal and natural persons may freely conclude
all types of commercial contracts (agency contracts, distribution
contracts, license contracts, etc.). Slovene legislation does not
stipulate different administrative procedures for the performance of
individual foreign trade transactions or contracts. Contractual parties
in international legal transactions may select the law that will
regulate their mutual relationships and the court (arbitration tribunal)
of competent jurisdiction that will hear disputes.

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

The procedure used by state agencies and state controlled companies for
purchases is prescribed by the [Public Procurement
Act](http://www.uradni-list.si/1/ulonline.jsp?urlid=200436&dhid=68908),
published in the Official Gazette no. 36/2004. The most often used form
of procurement is a public tender. In most cases foreign and domestic
bidders have the same rights. In public tenders funded by EU funds, the
requirement is usually EU origin of goods or services. However, US-owned
companies can qualify if they have a representative office somewhere in
EU. Slovenia is not a signatory to the WTO agreement on government
procurement (GPA).

As a NATO member, Slovenia is required to dedicate two percent of its
GDP to military purchases. Some of the projects for the near future
include expansion and upgrade of the NATO military airport in Cerklje,
purchase of military transport aircrafts, additional equipment for
recently purchased armored vehicles and 8x8. For more information on
foreign military sales opportunities, contact the Embassy.

The EU public procurement market, including EU institutions and Member
States, totals around US\$ 2.352 billion[^1] (EUR 1,600 billion). This
market is regulated by two Directives:

-   Directive 2004/18 on Coordination of procedures for the award of
    public works, services and supplies contracts, and

-   Directive 2004/17 on Coordination of procedures of entities
    operating in the Utilities sector, which covers the following
    sectors: water, energy, transport and postal services.

Remedies directives cover legal means for companies who face
discriminatory public procurement practices. These directives are
implemented in the national procurement legislation of the 27 EU Member
States.

The US and the EU are signatories of the World Trade Organization's
(WTO) Government Procurement Agreement (GPA), which grants access to
most public supplies and some services and works contracts published by
national procuring authorities of the countries that are parties to the
Agreement. In practice, this means that U.S.-based companies are
eligible to bid on supplies contracts from European public contracting
authorities above the agreed thresholds.

However, there are restrictions for U.S. suppliers in the EU utilities
sector both in the EU Utilities Directive and in the EU coverage of the
Government Procurement Agreement (GPA). The Utilities Directive allows
EU contracting authorities in these sectors to either reject non-EU bids
where the proportion of goods originating in non-EU countries exceeds
50% of the total value of the goods constituting the tender, or are
entitled to apply a 3% price difference to non-EU bids in order to give
preference to the EU bid. These restrictions are applied when no
reciprocal access for EU companies in the U.S. market is offered. Those
restrictions however were waived for the electricity sector.

For more information, please visit the U.S. Commercial Service at the
U.S. Mission to the European Union website dedicated to EU public
procurement. This site also has a database of all European public
procurement tenders that are open to U.S.-based firms by virtue of the
Government Procurement Agreement. Access is free of charge.

Key Link:
[http://www.buyusa.gov/europeanunion/eu_tenders.html](http://www.buyusa.gov/europeanunion/eu_funds.html)

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

Several distribution channels are open to U.S. goods on the Slovene
marketplace, including wholesaling and retailing, as well as
franchising, joint ventures, and licensing.

There are a large number of merchants, agents, intermediaries,
wholesalers, and retailers available in Slovenia. Since 1990, when the
transition to a market economy began, foreign trade has ceased to be the
exclusive domain of a few specialized companies. Today, any firm may
carry out both foreign and domestic trade.

Slovenia's major distribution centers are located in Brnik and Koper.
The port of Koper is Slovenia's only port and is located in the western
part of the country on the Adriatic Sea. Airport Joze Pucnik is the
nation's largest commercial airport and is located in the center of the
country, 20 kilometers north of the capital and largest city Ljubljana.
Smaller distribution centers can also be found in major cities such as
Ljubljana and Maribor, the second largest city.

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

Operating hours of most businesses in Slovenia are Monday through Friday
from 8 am to 4 pm, and the majority of retail stores close by 7 or 8 pm,
with a few staying open until 9 pm. Most stores are open on Saturday
mornings and several shopping centers are open all day on Saturdays.
Larger grocery stores and larger shopping centers are opened until 3 pm
on Sundays.

Many Slovenian consumers prefer to pay in monthly installments, even for
lower cost goods. Other factors/technologies critical to success are
close and frequent contact with buyers, motivated and trained
intermediaries, and aggressive market promotion.

User manuals for technical equipment and content declaration (with
appropriate labeling requirements) for goods must be presented in
Slovene language.

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

Even though there are quite a few online stores available, buying online
and paying with credit cards is not very common in Slovenia.

In July 2003, the EU started applying Value Added Tax (VAT) to sales by
non-EU based companies of Electronically Supplied Services (ESS) to EU
based non-business customers. U.S. companies that are covered by the
rule must collect and submit VAT to EU tax authorities. European Council
Directive 2002/38/EC further developed the EU rules for charging Value
Added Tax. These rules are currently set to expire at the end of 2008.

U.S. businesses mainly affected by the 2003 rule change are those that
are U.S. based and selling ESS to EU based, non-business customers or
those businesses that are EU based and selling ESS to customers outside
the EU who no longer need to charge VAT on these transactions. There are
a number of compliance options for businesses. The Directive created a
special scheme that simplifies registering with each Member State. The
Directive allows companies to register with a single VAT authority of
their choice. Companies have to charge different rates of VAT according
to where their customers are based, but VAT reports and returns are
submitted to just one authority. The VAT authority responsible for
providing the single point of registration service is then responsible
for reallocating the collected revenue among the other EU VAT
authorities.

Key Link:
<http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/index_en.htm>

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

All the normal channels for advertising are available and are widely
used in Slovenia, including newspapers, internet banners, magazines,
television, radio, and outdoor billboards/signs. Other promotional
techniques commonly employed are sales promotions, public relations, and
trade fairs. Slovenia's major newspapers are
[*Delo*](http://www.delo.si/), [*Dnevnik*](http://www.dnevnik.si/),
[*Slovenske Novice*](http://www.slovenskenovice.si/), and
[*Vecer*](http://www.vecer.si/). Newspapers and magazines are also most
commonly used for printed as well as internet based advertising (on
their webpages). The major business journals are
[*Finance*](http://www.finance-on.net/), *Manager*, *Podjetnik*, and
[*Slovenian Business Report*](http://www.sbr.si/). The major television
stations are *Radio Televizija Slovenia* (network), and *POP TV*. The
major "out-of-home" advertiser is *Proreklam* *Europlakat* (billboards,
bus stations, city lights, etc.)

For a listing of all fairs in 2008 in Slovenia, visit this website:
<http://www.gzs.si/sejmi/zadetki.asp?koda=MAT>

Fair grounds that organize trade shows:

Ljubljana Fair Grounds: <http://www.ljubljanafair.com/>

List of events: <http://www.ljubljanafair.com/fairs/>

Celje Fair grounds: <http://www.ce-sejem.si/index.php?cid=0_0_0&l=1>

List of events: <http://www.ce-sejem.si/show_sejmi.php?cid=1_2007&l=1>

Portoroz: <http://www.internautica.net/>

Gornja Ragdona: <http://www.pomurski-sejem.si/ang-kzs/kzs.htm>

*General Legislation*

Laws against misleading advertisements differ widely from Member State
to Member State within the EU. To respond to this imperfection in the
Internal Market, the Commission adopted a Directive, in force since
October 1986, to establish minimum and objective criteria regarding
truth in advertising. The Directive was amended in October 1997 to
include comparative advertising. Under the Directive, misleading
advertising is defined as any \"advertising which in any way, including
its presentation, deceives or is likely to deceive the persons to whom
it is addressed or whom it reaches and which, by reason of its deceptive
nature, is likely to affect their economic behavior or which for those
reasons, injures or is likely to injure a competitor.\" Member States
can authorize even more extensive protection under their national laws.

Comparative advertising, subject to certain conditions, is defined as
\"advertising which explicitly or by implication identifies a competitor
or goods or services by a competitor.\" Member States can, and in some
cases have, restricted misleading or comparative advertising.

The EU's Television without Frontiers Directive lays down legislation on
broadcasting activities allowed within the EU. From 2009 the rules will
allow for US-style product placement on television and the
three-hour/day maximum of advertising will be lifted. However, a
12-minute/hour maximum will remain. Child programming will be subject to
a code of conduct that will include a limit of junk food advertising to
children.

Following the adoption of the 1999 Council Directive on the Sale of
Consumer Goods and Associated Guarantees, product specifications, as
laid down in advertising, are now considered as legally binding on the
seller. (For additional information on Council Directive 1999/44/EC on
the Sale of Consumer Goods and Associated Guarantees, see the legal
warranties and after-sales service section below.)

The EU adopted Directive 2005/29/EC concerning fair business practices
in a further attempt to tighten up consumer protection rules. These new
rules will outlaw several aggressive or deceptive marketing practices
such as pyramid schemes, \"liquidation sales\" when a shop is not
closing down, and artificially high prices as the basis for discounts in
addition to other potentially misleading advertising practices. Certain
rules on advertising to children are also set out.

Key Link:
http://ec.europa.eu/comm/consumers/cons_int/safe_shop/fair_bus_pract/index_en.htm

*Medicine*

The advertising of medicinal products for human use is regulated by
Council Directive

2001/83/EC. Generally speaking, the advertising of medicinal products is
forbidden if market authorization has not yet been granted or if the
product in question is a prescription drug. Mentioning therapeutic
indications where self-medication is not suitable is not permitted, nor
is the distribution of free samples to the general public. The text of
the advertisement should be compatible with the characteristics listed
on the product label, and should encourage rational use of the product.
The advertising of medicinal products destined for professionals should
contain essential characteristics of the product as well as its
classification. Inducements to prescribe or supply a particular
medicinal product are prohibited and the supply of free samples is
restricted.

The Commission plans to present a new framework for information to
patients on medicines in 2008. The framework would allow industry to
produce non-promotional information about their medicines while
complying with strictly defined rules and would be subject to an
effective system of control and quality assurance.

Key Link:

http://ec.europa.eu/eur-lex/pri/en/oj/dat/2001/l_311/l_31120011128en00670128.pdf

*Food*

Regulation 1924/2006, applicable as of July 1, 2007, sets new EU rules
on nutrition and health claims. The annex to Regulation 1924/2006 lists
the nutrition claims such as \"low fat\" and \"light\" that will be
allowed throughout the EU and the conditions for using them. An EU
positive list of health claims, based on generally accepted scientific
advice such as \"X is good for your bones,\" is yet to be established.
The EU positive list will include health claims based on generally
accepted science and well understood by the consumer, not those based on
emerging science. New health claims and disease reduction claims will
have to be assessed by the European Food Safety Authority (EFSA) and
approved by the Commission.

Key Link:
<http://ec.europa.eu/food/food/labellingnutrition/claims/index_en.htm>

*Food Supplements*

Regulation 1925/2006, applicable as of July 1, 2007, harmonizes rules on
the addition of vitamins and minerals to foods. The regulation lists the
vitamins and minerals that may be added to foods and sets criteria for
establishing minimum and maximum levels.

Key Link: http://useu.usmission.gov/agri/foodsupplements.html

*Tobacco*

The EU Tobacco Advertising Directive bans tobacco advertising in printed
media, radio, and internet as well as the sponsorship of cross-border
events or activities. Advertising in cinemas and on billboards or
merchandising is allowed though these are banned in many Member States.
Tobacco advertising on television has been banned in the EU since the
early 1990s and is governed by the TV Without Frontiers Directive.

Key link:
<http://ec.europa.eu/health/ph_determinants/life_style/Tobacco/tobacco_en.htm>

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

The price level in Slovenia is relatively high due to the high cost of
labor and lack of competition in certain sectors. The market generally
determines prices. The price of gasoline, however, is set through a
pricing model, which adjusts to world prices every two weeks. The
government also controls the prices of oil, natural gas, railway
transport, and some other products. The government may also influence
the pricing policies of companies under its direct or indirect control.

All prices generally include 20% VAT. Food items only include a VAT of
8.5%.

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

Sales service, after sale services, and customer support are relatively
poorly developed as marketing tools in Slovenia.

Conscious of the discrepancies among Member States in product labeling,
language use, legal guarantee, and liability, the redress of which
inevitably frustrates consumers in cross-border shopping, the EU
institutions have launched a number of initiatives aimed at harmonizing
national legislation. Suppliers within and outside the EU should be
aware of existing and upcoming legislation affecting sales, service, and
customer support.

######## Product Liability

Under the 1985 Directive on liability of defective products, amended in
1999, the producer is liable for damage caused by a defect in his
product. The victim must prove the existence of the defect and a causal
link between defect and injury (bodily as well as material). A reduction
of liability of the manufacturer is granted in cases of negligence on
the part of the victim.

Key link:
[http://ec.europa.eu/enterprise/regulation/goods/liability_en.htm](http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/defect_prod/index_en.htm)

*Product Safety*

The 1992 General Product Safety Directive introduces a general safety
requirement at the EU level to ensure that manufacturers only place safe
products on the market. It was revised in 2001 to include an obligation
on the producer and distributor to notify the Commission in case of a
problem with a given product, provisions for its recall, the creation of
a European Product Safety Network, and a ban on exports of products to
third countries that are not deemed safe in the EU.

Key link:
[http://ec.europa.eu/consumers/safety/prod_legis/index_en.htm](http://ec.europa.eu/comm/consumers/cons_safe/prod_safe/index_en.htm)

######## Legal Warranties and After-sales Service

Under the 1999 Directive on the Sale of Consumer Goods and Associated
Guarantees, professional sellers are required to provide a minimum
two-year warranty on all consumer goods sold to consumers (natural
persons acting for purposes outside their trade, businesses or
professions), as defined by the Directive. The remedies available to
consumers in case of non-compliance are:

\- repair of the good(s);

\- replacement of the good(s);

\- a price reduction; or

\- rescission of the sales contract.

Key link:
<http://ec.europa.eu/comm/consumers/cons_int/safe_shop/guarantees/index_en.htm>

Other issues pertaining to consumers' rights and protection, such as the
New Approach Directives, CE marking, quality control and data protection
are dealt with in Chapter 5 of this report.

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

Slovenia has a comprehensive legal framework for the protection of
intellectual property rights. Slovenia signed the WTO Uruguay Round
Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPs) and has implemented those commitments. The number of
intellectual property complaints has been quite low, although U.S.
industry representatives have raised some concerns about the pace and
scope of action taken by the government against infringement.

Industrial property rights (patents, designs, trademarks and service
marks, and appellations of origin) are protected in Slovenia through
registration at the Slovenian Intellectual Property Office (SIPO)
(website: <http://www.uil-sipo.si/GLAVAGB.htm>, email:
<info@uil-sipo.si>, phone: +386-1-478-3154; fax: +386-1-478-3110). A
list of Slovenian patent agents is available from the Patent Office of
the SIPO (<http://www.uil-sipo.si/GLAVAGB.htm>).

Slovenia is a party to the following intellectual property agreements:

-   Convention Establishing the World Intellectual Property
    Organization;

-   Agreement on Trade-Related Aspects of Intellectual Property Rights;

-   Paris Convention for the Protection of Industrial Property;

-   Madrid Agreement Concerning the International Registration of Marks;

-   Nice Agreement Concerning the International Classification of Goods
    and Services for the Purposes of the Registration of Marks;

-   Locarno Agreement Establishing an International Classification for
    Industrial Designs;

-   Hague Agreement Concerning the International Deposit of Industrial
    Design;

-   Patent Cooperation Treaty;

-   Bern Convention for the Protection of Literary and Artistic Works;

-   Rome Convention for the Protection of Performers, Producers of
    Phonograms and Broadcast Organizations;

-   1973 Geneva Phonograms Convention; and

-   Brussels Convention Related to the Distribution of Program-Carrying
    Signals Transmitted by Satellite.

In the event of an Intellectual Property Right infringement, U.S.
companies are advised to hire a local attorney who can then pursue the
matter in local commercial court.

*Copyright*

The EU's legislative framework for copyright protection consists of a
series of Directives covering areas such as the legal protection of
computer programs, the duration of protection of authors' rights and
neighboring rights, and the legal protection of databases. Almost all
Member States have fully implemented the rules into national law; and
the Commission is now focusing on ensuring that the framework is
enforced accurately and consistently across the EU.

The on-line copyright Directive (2001/29/EC) addresses the problem of
protecting rights holders in the online environment while protecting the
interests of users, ISPs and hardware manufacturers. It guarantees
authors' exclusive reproduction rights with a single mandatory exception
for technical copies (to allow caching), and an exhaustive list of other
exceptions that individual Member States can select and include in
national legislation. This list is meant to reflect different cultural
and legal traditions, and includes private copying \"on condition right
holders receive fair compensation.\"

Key Link: http://ec.europa.eu/internal_market/copyright/index_en.htm

*Patents*

EU countries have a \"first to file\" approach to patent applications,
as compared to the \"first to invent\" system currently followed in the
United States. This makes early filing a top priority for innovative
companies. Unfortunately, it is not yet possible to file for a single
EU-wide patent that would be administered and enforced like the
Community Trademark (see below). For the moment, the most effective way
for a company to secure a patent across a range of EU national markets
is to use the services of the European Patent Office (EPO) in Munich. It
offers a one-stop-shop that enables rights holders to get a bundle of
national patents using a single application. However, these national
patents have to be validated, maintained and litigated separately in
each Member State.

Key Links: <http://ec.europa.eu/internal_market/indprop/index_en.htm>

http://www.european-patent-office.org/

*Trademarks*

The EU-wide Community Trademark (CTM) can be obtained via a single
language application to the Office of Harmonization in the Internal
Market (OHIM) in Alicante, Spain. It lasts ten years and is renewable
indefinitely. For companies looking to protect trademarks in three or
more EU countries the CTM is a more cost effective option than
registering separate national trademarks.

On October 1, 2004, the European Commission (EC) acceded to the World
Intellectual Property Organization (WIPO) Madrid Protocol. The accession
of the EC to the Madrid Protocol establishes a link between the Madrid
Protocol system, administered by WIPO, and the Community Trademark
system, administered by OHIM. As of October 1, 2004, Community Trademark
applicants and holders are allowed to apply for international protection
of their trademarks through the filing of an international application
under the Madrid Protocol. Conversely, holders of international
registrations under the Madrid Protocol will be entitled to apply for
protection of their trademarks under the Community Trademark system.

Key Links: <http://oami.europa.eu/>

http://www.wipo.int/madrid/en

##### 

*Designs*

The EU adopted a Regulation introducing a single Community system for
the protection of designs in December 2001. The Regulation provides for
two types of design protection, directly applicable in each EU Member
State: the registered Community design and the unregistered Community
design. Under the registered Community design system, holders of
eligible designs can use an inexpensive procedure to register them with
the EU's Office for Harmonization in the Internal Market (OHIM), based
in Alicante, Spain. They will then be granted exclusive rights to use
the designs anywhere in the EU for up to twenty-five years. Unregistered
Community designs that meet the Regulation's requirements are
automatically protected for three years from the date of disclosure of
the design to the public.

Key Link: <http://oami.europa.eu/>

*Trademark Exhaustion*

Within the EU, the rights conferred on trademark holders are subject to
the principle of \"exhaustion.\" Exhaustion means that once trademark
holders have placed their product on the market in one Member State,
they lose the right to prevent the resale of that product in another EU
country. This has led to an increase in the practice of so called
\"parallel importing\" whereby goods bought in one Member State are sold
in another by third parties unaffiliated to the manufacturer. Parallel
trade is particularly problematic for the research-based pharmaceutical
industry where drug prices vary from country to country due to national
price Regulation.

Community wide exhaustion is spelled out in the Directive on harmonizing
trademark laws. In a paper published in 2003, the Commission indicated
that it had no plans to propose changes to existing legal provisions.

Key Link: http://ec.europa.eu/internal_market/indprop/tm/index_en.htm

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

The Commercial Service at the U.S. Embassy in Ljubljana offers an
"International Company Profile" service, which provides detailed
information on a company, their financials, and possible media exposure.
For more information, visit
<http://www.buyusa.gov/slovenia/en/international_company_profile.html>

The following firms operating in Ljubljana can assist in performing the
important task of due diligence on potential Slovenian partners:

I Poslovne informacije d.o.o. (Dunn & Bradstreet's agent in Slovenia)

Zrinjskega cesta 4

1000 Ljubljana

Tel: +386-1-234-29-40

Fax: +386-1-234-29-58

Web: <http://www.idoo.si/>

Email: <imojstri@idoo.si>

Creditreform d.o.o.

Linhartova cesta 7

1000 Ljubljana

Tel: +386-1-438-16-71

Fax: +386-1-438-16-70

Web: [www.creditreform.si](http://www.creditreform.si/)

Email: <info@creditreform.si>

Coface Intercredit d.o.o.

Cankarjeva cesta 3

1000 Ljubljana

Tel: +386-1-425-90-65

Fax: +386-1-425-91-30

Web:[www.cofaceintercredit.si/](http://www.cofaceintercredit.si/)

Email: <office@coface.si>

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

Slovenia does not recognize U.S. legal accreditation, and regulations
regarding licenses to practice in-country are restrictive. Some Slovene
law firms conduct business in English and are familiar with U.S. law.

Local service providers focusing on EU law, consulting, and business
development can be viewed on the website maintained by the Commercial
Service at the U.S. Mission to the European Union at:
www.buyusa.gov/europeanunion/services.html.

For information on professional services located within each of the EU
member states, please see EU Member State Country Commercial Guides
which can be found at the following website:
http://www.export.gov/mrktresearch/index.asp under the Market Research
Library.

A list of English-speaking attorneys can be found at
<http://slovenia.usembassy.gov/attorneys_list.html>

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

Commercial Service at U.S. Embassy Ljubljana

<http://www.buyusa.gov/slovenia/en/>

Slovenian Intellectual Property Office

<http://www.uil-sipo.si/sipo/office/tools/home/>

Invest in Slovenia

<http://www.investslovenia.org/>

Trade shows in Slovenia:

<http://www.gzs.si/sejmi/zadetki.asp?koda=MAT>

Fair grounds that organize trade shows:

Ljubljana Fair Grounds: <http://www.ljubljanafair.com/>

List of events: <http://www.ljubljanafair.com/fairs/>

Celje Fair grounds: <http://www.ce-sejem.si/index.php?cid=0_0_0&l=1>

List of events: <http://www.ce-sejem.si/show_sejmi.php?cid=1_2007&l=1>

Portoroz: <http://www.internautica.net/>

Gornja Ragdona: <http://www.pomurski-sejem.si/ang-kzs/kzs.htm>

Public Procurement Act

<http://www.uradni-list.si/1/ulonline.jsp?urlid=200436&dhid=68908>

Print media:

Delo <http://www.delo.si/>

Dnevnik <http://www.dnevnik.si/>

Slovenske Novice <http://www.slovenskenovice.si/>

Vecer <http://www.vecer.si/>

Finance <http://www.finance-on.net/>

Slovenian Business Report <http://www.sbr.si/>

Information on English Speaking Lawyers in Slovenia

<http://slovenia.usembassy.gov/attorneys_list.html>

[Return to table of contents](#section)

[]{#ch4 .anchor}

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

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

-   [Commercial Sectors](#commercial-sectors-return-to-top)

    -   [Health Care Equipment (MED)](#_Health_Care_Equipment)

    -   [Environmental Equipment (ENV)](#environmental-equipment-env)

    -   [Electrical Power Systems (ELP) and
        Energy](#electrical-power-systems-elp-and-energy)

    -   [Computer Hardware and Software
        (CSF)](#computer-hardware-and-software-csf)

    -   [Information Technology (INF)](#leadingsectors5)

    -   [Chemical and Pharmaceutical Sector & Biotechnology
        (BTC)](#chemical-and-pharmaceutical-sector-and-biotechnology-btc)

    -   [Automobile Sector (APS)](#leadingsector7)

    -   [Logistics and Distribution](#logistics-and-distribution-trn)

    -   [Machine Treatment of Metals and
        Metalworking](#machine-treatment-of-metals-and-metalworking-mtl)

    -   [Electronics (ELC)](#electronics-elc)

    -   [Food Processing (FOD)](#food-processing-fod)

-   [Agricultural Sector](#agricultural-sector-return-to-top)

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

Slovenia\'s legacy of worker self-management continues to be felt in the
economy. A high degree of decentralization and a tendency to discourage
the flow of resources from declining firms to growing ones has led to
large gaps between top and bottom performers in all sectors. These
performance disparities are likely to disappear as the privatization
process continues and resources are allocated more efficiently among
sectors. For the time being, however, it is difficult to identify
specific sectors where growth is likely to be concentrated. Given cost
factors, viable businesses of the future are likely to have the
following characteristics: moderate to low reliance on manual labor
input; moderate to low use of real estate; and \"environmentally
friendly\" undertakings.

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

The Showcase Europe program run by the U.S. Department of Commerce's
offices throughout Europe provides U.S. exporters a broader perspective
on the European market. It is organized around eight leading sectors
(listed alphabetically): aerospace & defense, automotive, energy,
environmental, information & communications technologies, medical &
pharmaceutical, safety & security and travel & tourism. For more
information on how to receive an assessment of your company's product
potential in Europe, please visit: http://www.buyusa.gov/quicktake.

## Health Care Equipment (MED)

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

Slovenia's health care equipment market is dominated by imports because
there is limited domestic production. In 2006, the approximate market
size was \$280 million. Imports to Slovenia mainly come from Germany,
Italy, Austria, the United States and Switzerland. The market has seen
some growth over the last ten years, but the real potential lies ahead.
The vast majority of equipment in public hospitals is outdated, and is
expensive to maintain. The government has announced plans to restructure
the healthcare sector, most likely through public-private partnerships,
and there will likely be increased demand for innovative instruments and
equipment. In 2007, the Oncology Institute moved in to a new facility; a
new pediatrics clinic is currently being built.

The Ministry of Health is the main player in the Slovenian medical
equipment market. The Ministry develops health policies, proposes the
health care budget and the investment program for the sector, and
monitors the work of state-owned health institutions. Due to fiscal
problems with the national health account, the Ministry was forced to
check purchasing programs and decided to centralize hospital tenders.
These new measures have begun to show some results, mainly with
increased transparency of public procurement. Dental services are mainly
in private hands.

The Slovenian market is very price-sensitive. Institutions are, however
prepared to pay well for state-of-the-art equipment.

## Environmental Equipment (ENV)

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

Slovenia's environmental legislation is harmonized with that of the
European Union and its latest directives. Although waste and pollution
control mechanisms in Slovenia have improved over the last five years,
Slovenia has to intensify activity for better environmental protection.
The major concerns in Slovenia are: insufficient level of treatment and
coverage for municipal and industrial wastewater; uncontrolled dumping
of solid and hazardous wastes; lack of proper disposal sites; lack of
recycling facilities and incinerators; control of air pollution
emissions in industrial areas. Increase of hazardous waste is of
particular concern. In July 2002, Slovenia ratified the Kyoto protocol,
according to which Slovenia has to reduce greenhouse gases by 8% between
2008 through 2012.

Slovenia produces 423 kilograms (kg) of waste per capita, which is below
the EU-25 average of 526 kg per capita. The majority of the waste is
deposited into land fills (330 kg per capita, which is above the EU-25
average of 227 kg per capita). Only 1 kg of waste per capita is actually
incinerated, which is drastically below the EU-25 average of 97 kg per
capita. (2005 data from statistical portrait 2007)

In 2006, almost 6 million tons of industrial waste was created in
Slovenia, which is a 6% increase from 2005 statistics. The largest share
(39%) was created in processing industries; 26% in the production of
electricity, natural gas, and hot water; 19% in construction; and 16% in
other industries. In 2006, 59% of industrial waste and 42% of all waste
was treated.

## Electrical Power Systems (ELP) and Energy

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

The government of Slovenia owns an 80% stake in Holding Slovenske
Elektrarne (HSE), the major electricity producer in Slovenia. The
government has indicated an interest in a partial privatization of HSE
and its associated distribution companies in the coming years.

The government's vision for the energy sector through 2015, as outlined
in its Strategy of Electrical Energy Production, foresees significant
investments over the next ten years. Increased hydroelectric power
generation is one of the strategic objectives of the government's energy
policy. Further upgrading of the upper stations on the Sava River is
planned as well as construction of a chain of six new plants on the
lower Sava. Construction of the first two plants began in 2004; a
construction permit for the third one was obtained in November 2005.
While final documents for the fourth plant were prepared in the
beginning of 2007, construction of the remaining two plants is foreseen
in the period between 2008 and 2014. The upgrading of three plants on
the Drava River will be completed by 2010. Feasibility studies are
underway for additional small run-of-river and storage plants and for
the exploitation of other renewable energy sources. Together with the
new plants, these renovations will create an additional 470 MW of
hydroelectric capacity by 2015.

Plans for conventional thermal power (i.e. coal-fired) generation are
based on maintaining production at existing plant locations and building
facilities at new sites, primarily for combined heat and power
generation. Investments will be required to improve pollution controls
to meet environmental standards, to increase rapid response and peaking
capacity, and for renovation of control systems at existing plants.
Construction of a new production block with a 500 MW capacity at Thermal
Plant Sostanj is planned for 2008 and should begin operation in 2011.
The government also foresees construction of two oil-fired facilities,
including a 60 MW unit in Sostanj. A second oil-fired plant in
Brestanica with a capacity of 143 MW is scheduled for completion by
2011.

Investment plans through 2015 in the transmission and distribution
system include the modernization of national dispatching and local
distribution control centers, the renovation of the transmission grid,
better control of reactive power in the system, and the completion and
renovation of the east-west 400 kV transmission lines with a connection
to Hungary and a 400 kV substation. However, a lack of financial
resources has already postponed these priority investment projects for a
number of years.

In the past few years, plans have been made to build three wind-operated
power plants in the Primorska region, where the Bora wind could produce
significant quantities of electrical power. All three plants would
consist of 150 wind powered turbines. None of them have been constructed
yet as they are still in the process of gaining all necessary approvals
(mainly environmental) for the project. The local community (represented
by a birdwatcher NGO) strongly opposes the project and uses every
possible legal instrument to stall the project. Thus far it has
succeeded.

### Quick facts about the ENERGY sector: [**Return to top**](#ch4)

While the gas and oil market is privatized, the electricity production
is still in state hands. Holding Slovenske Elektrarne (HSE) is a large
holding owning and managing a series of electricity production plants
(predominately hydro power). Even though its privatization has been
mentioned several times, no exact plans and time schedules for
privatization have been announced recently.

+-----------------------------------+-----------------------------------+
| Number of Companies:              | 130                               |
+-----------------------------------+-----------------------------------+
| Number of people employed in      | 12,619                            |
| sector                            |                                   |
+-----------------------------------+-----------------------------------+
| Revenues                          | US\$ 6.47 [^2] (4.4 billion       |
|                                   | Euros)                            |
+-----------------------------------+-----------------------------------+
| Import items:                     | -   Brown coal and lignin,        |
|                                   |                                   |
|                                   | -   oil derivatives,              |
|                                   |                                   |
|                                   | -   liquid gas,                   |
|                                   |                                   |
|                                   | -   natural gas,                  |
|                                   |                                   |
|                                   | -   electricity                   |
+-----------------------------------+-----------------------------------+

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

-   trade (wholesale) with fuels and lubricants

-   trade (retail) with motor fuels

-   distribution of electricity, gas, heat, and hot water

-   mining

### Leading Companies in Sector [**Return to top**](#ch4)

Oil: • Petrol, d.d. (www.petrol.si)

> • OMV Slovenija (www.omv.si)

Gas: • Geoplin, d.o.o. (www.geoplin.si)

Electricity: • Holding Slovenske Elektrarne, d.o.o. (www.hse.si)

> • Eles, d.o.o. ([www.eles.si](http://www.eles.si/))

### Computer Hardware and Software (CSF)

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

The software market in Slovenia is estimated to be approximately US
\$280 million per year. Some 80% of Slovenian demand is met by imports
and is dominated by U.S. vendors. The most promising sub-sectors are
business software (for financial institutions or financial packages for
companies), CAD/CAM applications, and entertainment software.

Imports and exports of hardware are very liberal. Top vendors have
strong subsidiaries in Slovenia or have built good relations with
existing domestic computer companies. Because of the strength of the
U.S. IT industry, American companies or their distributors win many
major IT contracts. The Slovenian market for computers and peripherals
is approximately \$380 million per year, with U.S.-based multinationals
controlling more than 70% of the market share. Demand is expected to
continue to grow at a steady pace in the coming years.

## Information Technology (INF)

The information technology sector features opportunities on two sides of
the development spectrum. On one side there is a series of highly
developed IT companies with established services and research projects.
On the other end, small rising companies with young entrepreneurs and
high potential are wide open for investment and joint venture
opportunities. Many of these young companies are concentrated in
technology parks such as Technology Park Brdo-Ljubljana, and Technology
part Tehnopolis in Celje.

National telecommunication company Telekom Slovenije is currently state
owned. It is going through the process of privatization, but the process
has stalled several times due to differences in opinions within the
government on when and how much to privatize "strategic sectors."

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

  ----------------------------------- -----------------------------------
  Number of Companies:                1,380

  Number of people employed in sector 13,000

  Revenues                            US\$ 2.94 billion[^3] (2 billion
                                      Euros)

  Export                              US\$ 483 million (329 million
                                      Euros)
  ----------------------------------- -----------------------------------

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

-   planning and implementation of communicating networks

-   e-banking

-   software systems for back-up files

-   IT Solutions

-   logistics

### Leading Companies in Sector [**Return to top**](#ch4)

Machinery

• AGB LAB ( www.agblab.com )

• Insilica ( www.insilica.si )

Telecommunication

• Iskra Transmission ( www.iskratr.si )

• Iskratel ( www.iskratel.si )

• Mobitel ( www.mobitel.si )

• Si.Mobil ( www.simobil.si )

• Telekom Slovenije ( www.telekom.si )

IT Solutions

• Actual I.T. ( www.actual-it.si )

• Halkom ( www.halcom.si )

• Hermes SoftLab ( www.hermes-softlab.com )

• S&T Hermes Plus ( www.hermes-plus.si/ )

• Špica ( www.spica.com )

## Chemical and Pharmaceutical Sector and Biotechnology (BTC)

Since the chemical industry is very strong in Slovenia, the need for raw
materials is substantial. The pharmaceutical sector is mainly comprised
of two big companies, Lek and Krka, manufacturing generic products. Lek
was purchased by Novartis in 2002. Krka's shares are listed on the
Ljubljana Stock Exchange.

Jozef Stefan Institute, Slovenia's premiere research institute, is
linked to the University of Ljubljana and is highly involved in research
and development in fields such as creating new materials,
nanotechnology, and biotechnology.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                620

  Number of people employed in sector 25,000

  Revenues                            US\$ 4.7[^4] (3.2 billion Euros)

  Export                              US\$ 3.2 (2.2 billion Euros)
  ----------------------------------- -----------------------------------

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

-   base chemicals

-   pesticides and agrochemicals

-   paints, lacquers, and glazes

-   pharmaceuticals and soaps

-   products for cleaning and scents

-   other chemical products

-   artificial fibers

-   rubber and plastics

### Leading Companies in Sector [**Return to top**](#ch4)

• Belinka ( www.belinka.si )

• Bia Separations ( www.biaseparations.com )

• Cinkarna Celje ( www.cinkarna.si )

• Helios ( www.helios.si )

• Institut Jožef Stefan ( www.ijs.si )

• Krka ( www.krka.si )

• Lek ( www.lek.si )

• Sava ( www.sava.si )

## Automobile sector (APS)

A long tradition of car manufacturing in Slovenia yielded a substantial
number of companies in different markets. While the largest auto
company, Revoz, produces cars solely for French auto company Renault,
there are companies addressing very specific niche markets such as
racing exhaust systems manufactured by Akrapovic. There are also several
companies producing car parts, primarily seats, and recreational
trailers and campers. Since this is a large industry in Slovenia, there
exists significant opportunities in supplying parts and raw materials,
as well as new technologies and robotics.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                90

  Number of people employed in sector 13,000

  Revenues                            US\$ 1.4 billion[^5] (950 million
                                      Euros)

  Export                              US\$ 1.2 billion (800 million
                                      Euros)
  ----------------------------------- -----------------------------------

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

-   cars

-   seats and spare parts for seats

-   spare parts and interior materials

-   automobile parts

-   spare parts for braking systems

-   moving parts for engines

-   steering systems and parts for them

-   manufacturing of tools for automobile industry

-   research and development in the sector

### Leading Companies in Sector [**Return to top**](#ch4)

• Adria Mobil ( www.adria-mobil.si )

• Slovenski avtomobilski grozd -- ACS ( www.acs-giz.si )

• Akrapovič ( www.akrapovic-ai.si )

• Cimos ( www.cimos.si )

• Hidria ( www.hidria.si )

• Iskra Avtoelektrika ( www.iskra-ae.com )

• Kolektor ( www.kolektor.si )

• Prevent ( www.prevent.si )

• Revoz ( www.revoz.si )

• TCG Unitech ( www.unitech.at )

• TPV ( www.tpv.si )

• Unior Zreče ( www.unior.si )

## Logistics and Distribution (TRN)

The geographical location of Slovenia puts it on at the intersection of
the 5^th^ and 10^th^ Pan-European corridors, making it one of the major
transportation connectors between the Adriatic Sea and the Balkans. The
port of Koper (on the northern part of the Adriatic Sea) is a major
cargo port in this part of Europe. Joze Pucnik Airport, located in the
center of the country, houses a few major logistical companies for air
and land cargo transport.

In the near future, the government plans to update the infrastructure of
the airport and railroads in order to improve the connectivity and speed
of transport.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                1,100

  Number of people employed in sector 17,200

  Revenues                            US\$ 1.47 billion[^6] (1 billion
                                      Euros)

  Export                              US\$ 817 million (556 million
                                      Euros)
  ----------------------------------- -----------------------------------

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

-   cargo shipping

-   ship cargo transport

-   storing of goods

-   maritime and inland logistics

-   services at terminals

### Leading Companies in Sector [**Return to top**](#ch4)

• BTC, d.d.( www.btc.si )

• Eurotek ( www.eurotek.si )

• Intereuropa ( www.intereuropa.si )

• Aerodrom Ljubljana ( www.lju-airport.si )

• Luka Koper ( www.luka-kp.si )

• Slovenske železnice ( www.slo-zeleznice.si )

• Viator Vektor ( www.viator-vektor.com )

• Schenker ( www.schenker.si )

## Machine Treatment of Metals and Metalworking (MTL)

The former Yugoslavia's emphasis on heavy industry resulted in the
development of numerous companies in the metalworking industry in
Slovenia. These companies were very strong in the past, and although
they do not currently dominate the economy, they still offer substantial
opportunities for companies exporting ore and other materials needed for
metal production (e.g. sheet metal and steel) and metal tools.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                1,850

  Number of people employed in sector 46,000

  Revenues                            US\$ 5.73 billion[^7] (3.9 billion
                                      Euros)

  Export                              US\$ 4.26 billion (2.9 billion
                                      Euros)
  ----------------------------------- -----------------------------------

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

-   cars

-   metal parts (frames, built-in elements, ...)

-   metal casts,

-   other metal parts

### Leading Companies in Sector [**Return to top**](#ch4)

• EMO Orodjarna ( www.emo-orodjarna.si )

• Gorenje Orodjarna ( www.gorenje-orodjarna.si )

• Kovinoplastika Lož ( www.kovinoplastika.si )

• Litostroj Ei ( www.litostroj-ei.si )

• Lama ( www.lama.si )

• Metal ( www.sz-metal.si )

• Sistemska tehnika ( www.st-ravne.si )

• Trimo ( www.trimo.si )

• Unior ( www.unior.si )

## Electronics (ELC)

The areas for export opportunities in the electronics sector are in
electronic component parts, upgrades to medical and dental equipment,
and development of new technologies and materials for the market.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                760

  Number of people employed in sector 36,000

  Revenues                            US\$ 4.1 billion[^8] (2.8 billion
                                      Euros)

  Export                              US\$ 2.9 billion (2 billion Euros)
  ----------------------------------- -----------------------------------

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

-   electrical motors and machines

-   household appliances

-   telecommunication equipment

-   electronic measuring (scaling) systems

-   medical and optical equipment

### Leading Companies in Sector [**Return to top**](#ch4)

• Danfoss ( www.danfoss-trata.si )

• Domel ( www.domel.si )

• Eti Izlake ( www.eti.si )

• Gorenje ( www.gorenje.com )

• Hidria ( www.hidria.si )

• Iskratel ( www.iskratel.si )

• Iskra Avtoelektrika ( www.iskra-ae.com )

• Kolektor ( www.kolektor.si )

• Ydria Motors ( www.ydria-motors.si )

## Food Processing (FOD)

While there are few opportunities for meat exports, there are
substantial opportunities for export of cereals (e.g. wheat). Due to
increased prices in recent years of agricultural commodities (cereals,
oils, etc.) and the weak dollar, American agricultural commodities are
becoming more attractive to European food processing industries.

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

  ----------------------------------- -----------------------------------
  Number of Companies:                424

  Number of people employed in sector 18,140

  Revenues                            US\$ 2.6 billion[^9] (1.8 billion
                                      Euros)

  Export                              US\$ 441.7 million (300.5 million
                                      Euros)
  ----------------------------------- -----------------------------------

### Sector Breakup [**Return to top**](#ch4)

By sales

-   processed meat products (24%)

-   milk products (15%)

-   baked products - bread and pastries (13%)

By exports

-   non-alcohol and alcohol beverages, vinegar (22%)

-   milk products, eggs, honey (14%)

-   meat (9%)

-   meat products (13%)

-   wheat, cereals (6%)

-   sugar, sugar products (5%)

### Leading Companies in Sector [**Return to top**](#ch4)

• milk products:

-- Ljubljanske mlekarne, d.d. (www.lj-mlek.si/)

-- Mlekarna Celeia, d.o.o. (www.mlekarna-celeia.si)

-- Pomurske mlekarne, d.d. (www.pomurske-mlekarne.si)

• meat, meat products:

-- Perutnina Ptuj, d.d. (www.perutnina.si)

-- MIP, d.d. (www.mip.si)

-- Kras, d.d. (www.kras.si)

-- Jata Emona, d.d. ([www.jata-emona.si](http://www.jata-emona.si/))

-- Droga Kolinska, d.d.
([www.drogakolinska.si](http://www.drogakolinska.si/))

• non-alcohol, alcohol beverages, vinegar:

-- Pivovarna Laško, d.d. (www.pivo-lasko.si)

-- Pivovarna Union, d.d. (www.pivo-union.si)

-- Fructal, d.d. (www.fructal.si)

• wheat, cereals:

-- Žito, d.d. (www.zito.si)

• sugar, sugar products

-- TSO, d.d. (www.spletomat.com/tso/)

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

According to the Statistical Office there are over 77,000 agricultural
holdings in Slovenia that perform agricultural activities. Average
agricultural holdings use 6.3 hectares (ha) of agricultural area and
breed 5.5 livestock units. An agricultural census (using EU standards)
from 2000 showed that for family farms in Slovenia, medium-sized
holdings predominated, with the largest percentage (27.3%) owning 5-10
hectares of land. The census also showed that, within the category of
non-family enterprises, almost half were holdings with over 20 hectares
of land. The statistical office suggests there is total of almost 500
thousand hectares of agricultural land. The portion of agriculture in
Slovenian GDP is slightly decreasing each year. In 2006, it only
amounted to 1.5% of total GDP.

In Slovenia, the predominant crops are maize for grain (production is
nearly 300,000 tons/year), wheat (135 tons/year), potatoes, and fruits.
The largest production is for animal feed. Over one million tons of
maize and other types of fodder are grown annually.

While the number of people employed in the agriculture sector decreased
by 15% from 2000, it has been steady for the past years.

#### 

**Best Market Prospects for U.S. Exports to Slovenia**

U.S. food products that should benefit from lower tariffs due to
Slovenia's EU accession and have the best sales potential include edible
dried beans, cocoa, dried fruits, fruit juices, pet foods, wines and
whiskey. The 2007 shortage of wheat and the subsequent increase in
domestic prices has made it an interesting crop to import.

U.S. exports of agricultural, fish and forest products to Slovenia have
fluctuated widely over the past several years. Moreover, most official
statistics understate actual U.S. exports, as they do not account for
products transshipped through other EU countries.

**Eco Farming**

The Slovene Ministry of Agriculture supports the fledgling ecological or
organic farming industry in Slovenia, particularly as it relates to
agricultural tourism. Rural development through ecological farming and
agricultural tourism is also strongly encouraged for areas less
favorable for agriculture, namely the alpine region.

**Coexistence and Biotech**

According to the EU legislation, none of the EU member states can ban
biotech products or prohibit biotech farming within their borders. In
Slovenia, there are currently no biotech crops being farmed, due to lack
of proper coexistence legislation. The coexistence law has been in
preparation for the past two years. The European Commission rejected
Slovenia's proposed draft due to its overly restrictive measures. There
is no suggested timeframe for when the legislation will be presented to
the parliament for procedure again; however, it is unlikely to expect it
in the election year (2008), since coexistence is a controversial topic.

Due to the relatively high production of corn in Slovenia, adoption of
coexistence legislation would present an attractive market opportunity
for biotech seed and plants. Nevertheless, it is important to be aware
of the relatively high consumer resistance to biotechnology and its
negative connotation, often promoted by various environmental
non-governmental organizations.

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

U.S. Department of Agriculture -- Austria and Central European Region:

<http://www.usembassy.at/en/usda/>

For more information regarding Agricultural policy, projects and
legislation development, please visit the Slovene Ministry of
Agriculture, Forestry and Food at

<http://www.mkgp.gov.si/index.php?id=576&L=1>

[Return to table of contents](#section)

[[]{#ch5 .anchor}Return to table of contents](#section)

# 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](#labeling-and-marking-requirements-return-to-top)

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

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

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

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

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

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

When Slovenia joined the EU in 2004, it adopted the EU's customs
legislation. Even though EU regulation provides an overall legal
foundation, some parts of the customs regulations are country specific.
Hence, Slovenia adapted some parts of the EU regulations to national
legislation.

The basic legal framework of the Customs System in the Republic of
Slovenia is provided by: Customs Law \[together with implementing acts
(applied January 1st, 1999 and compliant with the EC Customs Code) (OG
RS 1-3/95)\], Customs Service Law, and Customs Tariff Law (OG RS 66/00).

Further information on Slovenian customs legislation can be found at:

<http://www.carina.gov.si/en/informacije_za_ciljne_skupine/businesses/>

Import levies are payable upon the importation of most agricultural and
food products. Levies are not charged if the agricultural or food
product is exempt from duties pursuant to the Customs Law.

The primary basis for customs valuation is ad valorem on the transaction
value of the goods, (i.e., the price paid or the price that is to be
paid for the goods to be imported), including all duties and taxes paid
outside Slovenia. For more than 95% of imports, customs value is
established on the basis of transaction value. Besides customs duties
paid according to rates provided by the Customs Tariff or preferential
agreements, imports are also liable for VAT payment.

Brochure on customs in new EU countries:

<http://europa.eu.int/comm/taxation_customs/resources/documents/enlarg_transition_en2.pdf>

More on EU customs: <http://europa.eu.int/scadplus/leg/en/s28000.htm>

#### 

#### Excise Duties

Additional duties, i.e. excise duties, are required for certain type of
product groups. The excise duty rates applicable in the Member States of
the European Union are contained in three separate information documents
found on the website:

[http://ec.europa.eu/taxation_customs/taxation/gen_info/tax_policy/index_en.htm](http://ec.europa.eu/taxation_customs/taxation/excise_duties/gen_overview/index_en.htm)

-   Part I on [**alcoholic
    beverages**](http://europa.eu.int/comm/taxation_customs/taxation/excise_duties/alcoholic_beverages/rates/index_en.htm)\
    (click on the link or use URL:
    <http://europa.eu.int/comm/taxation_customs/resources/documents/excise_duties-part_I_alcohol-en.pdf>
    )

-   Part II on [**energy products and
    electricity**](http://europa.eu.int/comm/taxation_customs/taxation/excise_duties/energy_products/rates/index_en.htm)\
    (click on the link or use URL:
    <http://europa.eu.int/comm/taxation_customs/resources/documents/excise_duties-part_II_energy_products-en.pdf>
    )

```{=html}
<!-- -->
```
-   Part III on [**manufactured
    tobacco**](http://europa.eu.int/comm/taxation_customs/taxation/excise_duties/tobacco_products/rates/index_en.htm)

> (click on the link of use URL:
> <http://europa.eu.int/comm/taxation_customs/resources/documents/excise_duties-part_III_tobacco-en.pdf>
> )

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

-   **Customs**

> While EU entrance eliminated customs for products/services originating
> within the EU, customs still apply to products from elsewhere. The
> basis on which import duties are determined can be found at:
>
> <http://www.carina.gov.si/en/informacije_za_ciljne_skupine/businesses/>

-   **Excise Duties**

> Imports of alcoholic beverages, wines, and tobacco products are
> subject to excise duties.

-   **Labeling**

> According to EU directives, certain product groups (cosmetics,
> clothing, shoes, auto parts, and foodstuffs) sold in Slovenia must be
> labeled in Slovene. The declaration on the products must include
> information about the product's content, origin, manufacturer,
> importer, for foodstuffs a "best before end" date, and directions for
> use. For all products requiring user manual or instructions for use
> and warranty, these documents must be translated into Slovene. For
> more information on labeling also see [Labeling and Marking
> Requirements](#_Labeling_and_Marking) below.
>
> For more detailed information on labeling of cosmetics, you can
> contact the local association of cosmetics:
>
> KPC - Association of Cosmetics and Detergents Producers of Slovenia
> (part of the Association of Chemical Industries)\
> Dimiceva 13\
> SI-1504 Ljubljana
>
> Mrs. Helena Gombac Rozanec, Secretary General \
> Tel: +386 1 58 98 263\
> Fax: +386 1 58 98 100\
> e-mail: <helena.gombac@gzs.si>

-   **Quotas**

> There are currently no quota restrictions for imports from the U.S.

-   **Costs pertaining to WEEE**

> EU Directive
> [2002/96/EC](http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00240038.pdf)
> dictates that all EU member states have the obligation to collect and
> recycle electronic and electrical waste. This environmental directive
> is based on the theory that providers of electronic and electrical
> equipment (manufacturers, distributors, and importers/exporters) must
> ensure that equipment will not burden the environment after the end of
> its useful life.
>
> Electrical and electronic equipment is divided into 10 classes:

-   Large household appliances,

-   Small household appliances,

-   IT and telecommunication equipment

-   Consumer electronics

-   Lighting equipment

-   Electronic and electric tools

-   Toys, sport and recreational equipment

-   Medical equipment

-   Instruments for monitoring and control

-   Machines (vending, gaming, etc.)

In January 2006, the operational and financial responsibility fell on
the companies that produce the type of equipment listed above. From that
date on, in order to avoid fines and penalties, manufacturers,
distributors, and importers, must sign appropriate contracts with
collection and recycling companies for the processing of electronic
waste.

For information on existing trade barriers, please see the National
Trade Estimate Report on Foreign Trade Barriers, published by USTR and
available through the following website:
<http://www.ustr.gov/Document_Library/Reports_Publications/2007/2007_NTE_Report/Section_Index.html?ht>=
.

Information on agricultural trade barriers can be found at the following
website: <http://www.useu.usmission.gov/agri/usda.html>.

To report existing or new trade barriers and get assistance in removing
them, contact either the Trade Compliance Center at
<http://www.trade.gov/tcc> or the U.S. Mission to the European Union at
<http://www.buyusa.gov/europeanunion>.

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

The majority of imports are free from quantitative restrictions. Import
quotas restrict a few categories of goods, and in some sectors
importation is restricted by permits or licenses:

-   Textiles and textile products are imported through a quota system
    (except for imports from WTO countries, effective January 2005);

-   Import licenses are required from the competent ministry for the
    import of drugs and some chemicals, waste products and raw
    materials, articles of cultural heritage, gold, waste and scrap of
    precious metals and coins, nuclear reactors and weapons; and

-   A quality certificate is required for the import of some animals,
    meat and vegetables, and other food products.

The Integrated Tariff of the Community, referred to as TARIC (Tarif
Intégré de la Communauté), is designed to show various rules applying to
specific products being imported into the customs territory of the EU
or, in some cases, when exported from it. To determine if a license is
required for a particular product, check the TARIC.

The TARIC can be searched by country of origin, Harmonized System (HS)
Code, and product description on the interactive website of the
Directorate-General for Taxation and the Customs Union. The online TARIC
is updated daily.

Many EU Member States maintain their own list of goods subject to import
licensing.

For example, Germany\'s \"Import List\" (Einfuhrliste) includes goods
for which licenses are required, their code numbers, any applicable
restrictions, and the agency that will issue the relevant license. The
Import List also indicates whether the license is required under German
or EU law. For information relevant to Member State import licenses,
please consult the relevant Member State Country Commercial Guide.

Key Link:
http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm

*Import Documentation*

*Non-agricultural Documentation*

The official model for written declarations to customs is the Single
Administrative Document (SAD). European Free Trade Association (EFTA)
countries including Norway, Iceland, Switzerland, and Liechtenstein also
use the SAD. However, other forms may be used for this purpose.
Information on import/export forms is contained in Title VII, of Council
Regulation (EEC) No. 2454/93, which lays down provisions for the
implementation of Council Regulation (EEC) No. 2913/92 establishing the
Community Customs Code (Articles 205 through 221). Articles 222 through
224 provide for computerized customs declarations and Articles 225
through 229 provide for oral declarations.

Additional information on import/export documentation can be found in
Title III, of Council Regulation (EEC) No. 2913/92 of October 12, 1992,
establishing the Community Customs Code (Articles 37 through 57). Goods
brought into the customs territory of the Community are, from the time
of their entry, subject to customs supervision until customs formalities
are completed.

Goods presented to customs are covered by a summary declaration, which
is lodged once the goods have been presented to customs. The customs
authorities may, however, allow a period for lodging the declaration,
which cannot be extended beyond the first working day following the day
on which the goods are presented to customs. The summary declaration can
be made on a form corresponding to the model prescribed by the customs
authorities. However, the customs authorities may permit the use, as a
summary declaration, of any commercial or official document that
contains the particulars necessary for identification of the goods. It
is encouraged that the summary declaration be made in computerized form.

The summary declaration is to be lodged by:

-   the person who brought the goods into the customs territory of the
    Community or by any person who assumes responsibility for carriage
    of the goods following such entry; or

-   the person in whose name the person referred to above acted.

Non-EU goods presented to customs must be assigned a customs-approved
treatment or use authorized for such non-Community goods. Where goods
are covered by a summary declaration, the formalities for them to be
assigned a customs-approved treatment or use must be carried out:

-   45 days from the date on which the summary declaration is lodged in
    the case of goods carried by sea;

-   20 days from the date on which the summary declaration is lodged in
    the case of goods carried other than by sea.

Where circumstances so warrant, the customs authorities may set a
shorter period or authorize an extension of the period.

The Modernized Customs Code (MCC) of the European Union is expected to
be passed into law in the first half of 2008. The MCC will replace the
existing Regulation 2913/92 and simplify various procedures such as
introducing a paperless environment, centralized clearance, and more.
Check the EU's Customs website periodically for updates:
<http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/index_en.htm>.

*Batteries*

EU battery rules changed in September 2006 following the publication of
the Directive on batteries and accumulators and waste batteries and
accumulators (Directive 2006/66). This Directive replaces the original
Battery Directive of 1991 (Directive 91/157). The updated Directive
applies to all batteries and accumulators put on the EU market including
automotive, industrial and portable batteries. It aims to protect the
environment by restricting the sale of batteries and accumulators that
contain mercury or cadmium (with an exemption for emergency and alarm
systems, medical equipment and cordless power tools) and by promoting a
high level of collection and recycling. It places the responsibility on
producers to finance the costs associated with the collection,
treatment, and recycling of used batteries and accumulators. The
Directive also includes provisions on the labeling of batteries and
their removability from equipment. EU Member States must implement the
EU Directive into their national law by September 26, 2008. For more
information, see our market research report:
http://www.buyusainfo.net/docs/x_8086174.pdf

*REACH*

REACH is a major reform of EU chemicals policy that was adopted in
December 2006 and became national law in the 27 EU Member States in June
2007. Virtually every industrial sector, from automobiles to textiles,
could be affected by the new policy. REACH stands for the
\"Registration, Evaluation and Authorization of Chemicals.\" As of June
1 2008, REACH will require all chemicals produced or imported into the
EU in volumes above 1 ton per year to be registered with a central
European Chemicals Agency (ECHA), including information on their
properties, uses and safe ways of handling them. Most chemicals
currently imported into the EU are eligible for pre-registration which
provides ECHA with basic information on the substance and allows the
continued imports until a later registration deadline. ECHA will accept
pre-registrations from 1 June 2008 until 1 December 2008. US companies
should take advantage of the pre-registration period if possible. The
full registration period for chemicals which are pre-registered ranges
from three to eleven years depending on the volume of the substance and
its hazard properties. Substances not pre-registered must be registered
to stay on the market. Chemicals of very high concern, like carcinogens,
will need an authorization for use in the EU. U.S. exporters to Europe
should carefully consider this piece of EU environmental legislation.
For more information, see the CSEU REACH webpage at:
<http://www.buyusa.gov/europeanunion/reach.html>.

###### WEEE & RoHS

EU rules on waste electrical and electronic equipment (WEEE), while not
requiring specific customs or import paperwork, may entail a financial
obligation for U.S. exporters. They require U.S. exporters to register
the products with a national WEEE authority, or arrange for this to be
done by a local partner. Similarly, related rules for EEE restricting
the use of the hazardous substances (RoHS) lead, cadmium, mercury,
hexavalent chromium, PBBs, and PBDEs, do not entail customs or
importation paperwork. However, U.S. exporters may be asked by a
European RoHS enforcement authority or by a customer to provide evidence
of due diligence in compliance with the substance bans on a case-by-case
basis. U.S. exporters seeking more information on WEEE and RoHS
regulations should visit:
<http://www.buyusa.gov/europeanunion/weee.html>

*Agricultural Documentation*

Phytosanitary Certificates: Phytosanitary certificates are required for
most fresh fruits, vegetables, and other plant materials.

Sanitary Certificates: For commodities composed of animal products or
by-products, EU countries require that shipments be accompanied by a
certificate issued by the competent authority of the exporting country.
This applies regardless of whether the product is for human consumption,
for pharmaceutical use, or strictly for non-human use (e.g., veterinary
biologicals, animal feeds, fertilizers, research). Many of these
certificates are uniform throughout the EU, but the harmonization
process has not been finalized yet. During this transition period,
certain Member State import requirements continue to apply. In addition
to the legally required EU health certificates, a number of other
certificates are used in international trade. These certificates, which
may also be harmonized in EU legislation, certify origin for customs
purposes and certain quality attributes. Up-to-date information on
harmonized import requirements can be found at the following website:
<http://useu.usmission.gov/agri/certificates-overview.html>.

Sanitary Certificates (Fisheries): In April 2006, the European Union
declared the U.S. seafood inspection system as equivalent to the
European one. Consequently, a specific public health certificate must
accompany U.S. seafood shipments. Commission Decision 2006/199/EC places
specific conditions on imports of fishery products from the U.S.
Sanitary certificates for live shellfish are covered by Commission
Regulation (EC) 1664/2006 and must be used for gastropods, bivalve
mollusks, tunicates and echinoderms. The two competent Authorities for
issuing sanitary certificates are the FDA and the U.S. Department of
Commerce, National Marine Fisheries Service (NMFS/NOAA/USDC).

Since May 1, 2007, with the implementation of the second Hygiene
Package, aquaculture products coming from the United States must be
accompanied by a public health certificate according to Commission
Decision 2006/199/EC and the animal health attestation included in the
new fishery products certificate covered by Regulation (EC) 1664/2006.
This animal health attestation is not required in the case of live
bivalve mollusks intended for immediate human consumption (retail).

For detailed information on import documentation for seafood, please
contact the NOAA Fisheries office at the U.S. Mission to the EU
(<stephane.vrignaud@mail.doc.gov>) or visit the following FDA dedicated
web site: http://www.cfsan.fda.gov/.

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

Most technology can be exported from the U.S. to Slovenia under general
export licenses. Some equipment still requires validated export licenses
from the Commerce Department's Bureau of Industry and Security and/or
the Department of State. For further information on U.S. export
controls, please see the following website:
[http://www.bis.doc.gov](http://www.bis.doc.gov/)

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

Slovenia is a signatory to the ATA Convention on Temporary Imports and
Exports.

**More information on ATA:** The purpose of the Convention on temporary
admission is to simplify procedures on temporary imports of certain
kinds of goods (professional equipment, goods for exhibitions, etc.).
The ATA Carnet is a customs document to perform temporary importation
and temporary exportation and it also serves as a transit document for
transit of goods to the country of temporary importation. The ATA System
Guarantee Association in Slovenia is the [Chamber of Commerce of
Slovenia](http://www.gzs.si/), which is also authorized to issue ATA
Carnets.

Products may be imported into Slovenia on a temporary basis and be
exempt from customs duties in various cases, of which the most important
are the following:

-   Goods to be released into free circulation exempt from customs duty
    under the Customs Act;

-   Goods temporarily imported for exhibitions or testing, if the
    foreign owner has made them available free of charge and for a
    specific period of time;

-   Animals, instruments, and other items which are required for
    artistic, sports, or other events and the production of motion
    pictures;

-   Packaging materials, freight, and security equipment, etc. required
    for the delivery or dispatch of foreign-owned goods;

-   Equipment for governmental and non-governmental international or
    bilateral organizations, or international or bilateral commissions,
    with a seat in the customs territory, or having representative
    office with a seat in the customs territory;

-   Equipment required to avert imminent danger of epidemics, elementary
    or other natural disasters, or to mitigate the immediate
    consequences of such disasters;

-   Yachts, sailing ships, and other sea vessels with accessory floating
    moorings and anchoring equipment, if they are used for sport and
    tourism (under the conditions:\
    - that they are temporarily imported by companies or individual
    entrepreneurs registered for the rental of foreign yachts, sailing
    ships, and other sea vessels\
    - contracts concluded with foreign sport clubs and their
    associations permit them to rent the sea vessels to foreign
    tourists, members of these clubs, and their associations for use in
    Slovenia);

-   Household items temporarily imported by domestic and foreign natural
    persons entering Slovenia for a temporary sojourn; and

-   Equipment that is temporarily imported by permanent correspondents
    or editorial offices of foreign media registered in the customs
    territory.

The time limit for temporary imports is based on the purpose for which
goods are temporarily imported, but may not exceed a period of 12
months. Partial exemption from payment of customs duty may be granted
for the temporary import of goods not mentioned above, if they remain
the property of foreign persons. The amount of duty to be paid for
temporary imports of goods with a partial exemption from customs duty is
3% of the duty that would have to be paid for these goods if they were
released for free circulation. There is no information on warranty and
non-warranty items entering Slovenia for repair available.

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

The following labeling information must be in Slovene on the original
package of products subject to quality control:

-   Title of the product

-   Full address of the manufacturer

-   Full address of the importer

-   Net quantity/weight/volume

-   Information, where applicable, regarding ingredients

-   Use and storage instructions

-   Other warnings important for the customer.

Technically complicated products must also include instructions for use,
the manufacturer's specifications, a list of authorized maintenance
offices, a warranty, and other applicable data. All this information
must be in Slovene and attached to each product before reaching
customers.

More information on labeling and marking requirements are available at
Slovene Chamber of Commerce at <http://www.gzs.si/slo/>

An overview of EU mandatory and voluntary labeling and marking
requirements has been compiled in a market research report that is
available at: <http://www.buyusainfo.net/docs/x_4171929.pdf>.

The subject has been also been covered in the section about standards
(see below).

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

As long as appropriate permits are obtained for certain goods (such as
pharmaceuticals, military equipment, etc.), there are no specific
prohibitions on the import of legal products.

The TARIC is designed to show various rules applying to specific
products being imported into the customs territory of the EU or, in some
cases, when exported from it. To determine if a product is prohibited or
subject to restriction, check the TARIC for that product for the
following codes:

CITES Convention on International Trade of Endangered Species

PROHI Import Suspension

RSTR Import Restriction

For information on how to access the TARIC, see the Import Requirements
and Documentation Section above.

Key Link:
http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm

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

Address: The Customs Administration of the Republic of Slovenia

> Šmartinska 55, 1523 Ljubljana, Slovenia

Telephone: +386-1-478-38-00

Fax: +386-1-478-39-00

Toll free +386 2222 1122

<http://www.carina.gov.si/en/contact_us/>

Email: <carina@gov.si>

Web: <http://www.carina.gov.si/en/>

Regulation 648/2005 is the "Security Amendment" to the Customs Code
(Regulation 2913/92) and outlines the implementing provisions for
Authorized Economic Operators, risk management procedures, pre-departure
declarations, and improved export controls.

Tariffs and Import Taxes: Information on customs valuation is contained
in Title II, Chapter Three, of Council Regulation (EEC) 2913/92,
establishing the Community Customs Code, titled, \"Value of Goods for
Customs Purposes\" (Articles 28 through 36). The primary basis for
determining customs value set out in Articles 29 is: \"\... the
transaction value, that is, the price actually paid or payable for the
goods when sold for export to the customs territory of the
Community\...\" Article 29 lists the following conditions, which must be
met in determining customs value:

-   There are no restrictions as to the disposal or use of the goods by
    the buyer, other than restrictions which are imposed or required by
    a law or by the public authorities in the community, limit the
    geographical area in which the goods may be resold, or do not
    substantially affect the value of the goods;

-   The sale or price is not subject to some conditional consideration
    for which a value cannot be determined with respect to the goods
    being valued;

-   No part of the proceeds of any subsequent resale disposal or use of
    the goods by the buyer will accrue directly or indirectly to the
    seller, unless an appropriate adjustment can be made in accordance
    with Article 32; and

-   The buyer and seller are not related, or, where the buyer and seller
    are related, that the transaction value is acceptable for customs
    purposes.

The \"price actually paid or payable\" in Article 29 refers to the price
for the imported goods. Thus the flow of dividends or other payments
from the buyer to the seller that do not relate to the imported goods
are not part of the customs value.

Articles 32 and 33 provide for adjustments to the value for customs
purposes. Article 32 lists charges that are added to the customs value,
such as, commissions and brokerage, costs of containers, packing,
royalties and license fees, and the value of goods and services supplied
directly or indirectly by the buyer in connection with the production
and sale for export of the imported goods. Article 33 lists charges that
are not included in the customs value, such as, charges for transport,
charges incurred after importation, charges for interest under a
financing arrangement for the purchase of the goods, charges for the
right to reproduce imported goods in the Community, and buying
commissions.

Effective July 1, 1995, the Commission amended Article 147(1) of
Regulation 2454/93 of the Customs Code which affects valuation in the
case of successive sales. This amendment \"defaults\" valuation to the
last sale, but allows the value of an earlier sale if it can be
demonstrated that such a sale took place for export to the EU. The
evidentiary requirements to support the bona fides of any earlier sales
will be based upon commercial documents such as purchase orders, sales
contracts, commercial invoices, and shipping documents.

Key Link: http://ec.europa.eu/taxation_customs/customs/index_en.htm

For contact information at national customs authorities, please visit:

http://ec.europa.eu/taxation_customs/common/links/customs/index_en.htm

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

-   [Overview](#overview-return-to-top-12)

-   [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)

-   [Contacts](#contactsstandards)

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

The Standardization Act provides a new approach to determining the legal
nature of standards and technical regulations. According to this Act, a
standard does not become a binding requirement unless so designated by a
competent ministry; thus, standards are optional/voluntary. Since
Slovenia is part of the EU, it recognizes all EU and international
standards.

Goods and services imported for sale in Slovenia must comply with
prescribed standards and technical regulations and be certified by an
authorized institution, if it is so prescribed by the appropriate
ministry. The Slovenian Standards Institute will answer all questions
pertaining to standards (Email: <info@sist.si>). Where there is no
authorized institution for certification, the Standards and Metrology
Institute of the Republic of Slovenia will issue a certificate.
Certificates issued abroad are valid in Slovenia if the issuing
authority and the local issuing institution have a mutual recognition
agreement. Health, veterinary, phytosanitary, or ecological control is
obligatory for some types of products such as foodstuffs and animals.

Technical instructions, a written guarantee statement, and, if
necessary, instructions for use, must be enclosed with technical goods
and consumer durables imported into Slovenia. In addition, the importer
must guarantee the servicing of products and supply of spare parts. A
declaration consisting of the name and type of product, name of
manufacturer and other prescribed data should be affixed to the product.
The documents and the declaration must be written in Slovene.

If a contract with a foreign person, regulations of a foreign country,
or a bilateral or international agreement requires that goods (to be
exported or imported) be shipped with documents certified by a competent
authority, the Chamber of Economy of Slovenia or an authorized customs
organization is the competent authority. If the regulations of the
country in which the documents are to be used stipulate that the
documents have to be issued by a state body, the Ministry of Foreign
Affairs is the competent issuing authority in the Republic of Slovenia.

Products tested and certified in the United States to American standards
are likely to have to be retested and re-certified to 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.

European Union standards created under the New Approach are harmonized
across the 27 EU Member States and European Economic Area countries 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 function as barriers to trade if U.S.
standards are different from those of the European Union.

The European Union is currently undertaking a major revision of the New
Approach that will enhance some aspects, especially in the areas of
market surveillance. To follow the revision, please visit:
[http://ec.europa.eu/enterprise/regulation/internal_market_package/index_en.htm](http://ec.europa.eu/enterprise/newapproach/review_en.htm)

*Agricultural Standards*

The establishment of harmonized EU rules and standards in the food
sector has been ongoing for several decades, but it took until January
2002 for the publication of a general food law establishing the general
principles of EU food law. This Regulation introduced mandatory
traceability throughout the feed and food chain as of Jan 1, 2005. For
specific information on agricultural standards, please refer to the
Foreign Agricultural Service's website at:
<http://useu.usmission.gov/agri/>.

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

Information on particular Slovene standards and certification
requirements can be obtained from the Slovenian Institute for
Standardization (phone: +386-1-478 3013; fax: +386-1-478 3094) webpage
[www.sist.si/index.htm](http://www.sist.si/index.htm), email
<info@sist.si>. The institute is responsible for national standards
(technical as well as quality standards).

#### NIST - Notify U.S. Service

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT Agreement) to
report to the WTO all proposed technical regulations that could affect
trade with other Member countries. **Notify U.S.** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical regulations that can affect your
access to international markets. Register online at Internet URL:
[http://www.nist.gov/notifyus/](http://www.nist.gov/notifyus/%0D)

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/Cenelec/Homepage.htm>)

ETSI, European Telecommunications Standards Institute
(<http://www.etsi.org/>)

CEN, European Committee for Standardization, handling all other
standards

([http://www.cen.eu/cenorm/homepage.htm](http://www.cen.eu/cenorm/index.htm))

Standards are created or modified by experts in Technical Committees or
Working Groups. The members of CEN and CENELEC are the national
standards bodies of the Member States, which have \"mirror committees\"
that monitor and participate in ongoing European standardization. CEN
and CENELEC standards are sold by the individual Member States standards
bodies. ETSI is different in that it allows direct participation in its
technical committees from non-EU companies that have interests in Europe
and gives away its individual standards at no charge on its website. In
addition to the three standards developing organizations, the European
Commission plays an important role in standardization through its
funding of the participation in the standardization process of small-
and medium-sized companies and non-governmental organizations, such as
environmental and consumer groups. The Commission also provides money to
the standards bodies when it mandates standards development to the
European Standards Organization for harmonized standards that will be
linked to EU technical Regulations. In the last year, the Commission
began listing their mandates on line and they can be seen at
<http://ec.europa.eu/enterprise/standards_policy/mandates/>. All the EU
harmonized standards, which provide the basis for CE marking, can be
found on <http://www.newapproach.org/>.

Due to the EU's vigorous promotion of its regulatory and standards
system as well as its generous funding for its business development, the
EU's standards regime is wide and deep - extending well beyond the EU's
political borders to include affiliate members (countries which are
hopeful of becoming full members in the future) such as Albania,
Croatia, FYR of Macedonia, and Turkey. Another category, called
\"partner standardization bodies\" includes the standards organizations
of Bosnia and Herzegovina, Republic of Moldova, Egypt, Serbia, the
Russian Federation, Tunisia, the Ukraine, Armenia and Australia, which
are not likely to join the EU or CEN any time soon, but have an interest
in participating in specific CEN technical committees. They agree to pay
a fee for full participation in certain technical committees and agree
to implement the committee's adopted standards as national standards.
Many other countries are targets of the EU's extensive technical
assistance program, which is aimed at exporting EU standards and
technical Regulations to developing countries, especially in the
Mediterranean and Balkan countries, Africa, as well as programs for
China and Latin America.

To know what CEN and CENELEC have in the pipeline for future
standardization, it is best to visit their websites. CEN's \"business
domain\" page provides an overview by sector and/or technical committee
whereas CENELEC offers the possibility to search its database. ETSI's
portal (<http://portal.etsi.org/Portal_Common/home.asp>) leads to
ongoing activities.

With the need to adapt more quickly to market needs, European standards
organizations have been looking for \"new deliverables\" which are
standard-like products delivered in a shorter timeframe. While few of
these \"new deliverables\" have been linked to EU Regulations,
expectations are that they will eventually serve as the basis for
EU-wide standards.

Key Link: <http://www.cenorm.be/cenorm/workarea/sectorfora/index.asp>.

## 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.

Key Link: <http://ec.europa.eu/enterprise/newapproach/nando/>

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. ETSI does not offer conformity
assessment services.

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

To sell products on the EU market of 27 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 section provides some background and clarification.

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 marking and issues a declaration of conformity. With
these, the product will be allowed to circulate freely within the EU. A
manufacturer can choose not to use the harmonized EU standards, but then
must 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 marking 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 Member State
inspectors, the consumer may well perceive it as a quality mark.

The CE marking 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 marking, 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)

Independent certification bodies, known as notified bodies, have been
officially accredited by competent authorities to test and certify to EU
requirements. However, under U.S.-EU Mutual Recognition Agreements
(MRAs), notified bodies based in the United States and referred to as
conformity assessment bodies, are allowed to test in the United States
to EU specifications, and vice versa. The costs are significantly lower
which results in U.S. products becoming 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 (on hold),
recreational craft (in force) and marine equipment (in force). The U.S.
Department of Commerce, National Institute of Standards and Technology
(NIST), has a link on its website to American and European Conformity
Assessment bodies operating under a mutual recognition agreement.

Key Link: <http://ts.nist.gov/Standards/Global/mra.cfm>

Accreditation is handled at Member State level. \"European
Accreditation\"
([http://www.european-accreditation.org/default_flash.htm](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 on the internet 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/lex/JOIndex.do?ihmlang=en>). It lists the
standards reference numbers linked to legislation
(<http://www.newapproach.org/Directives/DirectiveList.asp>). National
technical Regulations are published on the Commission's website
<http://ec.europa.eu/comm/enterprise/tris/> to allow other countries and
interested parties to comment.

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT) Agreement to
report to the WTO all proposed technical Regulations that could affect
trade with other member countries. **Notify U.S.** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical Regulations that can affect your
access to international markets. Register online at Internet URL:
<http://tsapps.nist.gov/notifyus/data/index/index.cfm>

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

The following labeling information must be in Slovene on the original
package of products subject to quality control:

-   Title of the product

-   Full address of the manufacturer

-   Full address of the importer

-   Net quantity/weight/volume

-   Information, where applicable, regarding ingredients

-   Use and storage instructions

-   Other warnings important for the customer.

Technically complicated products must also include instructions for use,
the manufacturer's specifications, a list of authorized maintenance
offices, a warranty, and other applicable data. All this information
must be in Slovene and attached to each product before reaching
customers.

An overview of EU mandatory and voluntary labeling and marking
requirements has been compiled in a market research report that is
available at: <http://www.buyusainfo.net/docs/x_4171929.pdf>.

The subject has been also been covered in the section about standards
(see below).

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 right 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 2007/45/EC, to replace 80/232/EC in April
2009, harmonizes packaging of wine and spirits throughout the EU.
Existing national sizes will be abolished with a few exceptions for
domestic producers.

Key Link:
[http://ec.europa.eu/enterprise/prepack/packsize/packsiz_en.htm](http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML)

*The Eco-label*

EU legislation in 1992, revised in 2000, distinguishes environmentally
friendly products and services through a voluntary labeling scheme
called the Eco-label. Currently, the scheme applies to 7 product groups:
cleaning products, appliances, paper products, clothing, lubricants,
home and garden products and tourism services. 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 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.

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% 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.

Key Links: <http://buyusainfo.net/docs/x_4284752.pdf>

<http://ec.europa.eu/comm/environment/ecolabel/index_en.htm>

<http://www.eco-label.com/>

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

Slovenia has been a member of WTO since 1995
(<http://www.wto.org/English/thewto_e/countries_e/slovenia_e.htm>)

List of bilateral agreements between the Republic of Slovenia and the
Government of United States of America:

Agreement on Investment Incentives.

Signed in Washington, on 04.26.1994

Convention on International civil Aviation

Signed in Chicago, on 12.07.1944

Statute of the International Monetary Fund

Signed in Washington, on 01.01.1945

Statute of the International Financial Corporation

Signed in Washington, on 04.11.1955

Statute of the International Bank for Reconstruction and Development

Signed in Washington, on 12.27.1945

Accord on Transit in the International Air Space

(Accord relative au Transit des Services Aeriens Internationaux)

Signed in Chicago, on 12.07.1944

For a list of trade agreements with the EU and its Member States, as
well as concise explanations, please see
http://tcc.export.gov/Trade_Agreements/index.asp.

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

Information on Slovenian customs legislation:

<http://www.carina.gov.si/en/informacije_za_ciljne_skupine/businesses/>

<http://www.carina.gov.si/en/>

Brochure on customs in new EU countries:

<http://europa.eu.int/comm/taxation_customs/resources/documents/enlarg_transition_en2.pdf>

More on EU customs: <http://europa.eu.int/scadplus/leg/en/s28000.htm>

Information on excise duty:
[http://ec.europa.eu/taxation_customs/taxation/gen_info/tax_policy/index_en.htm](http://ec.europa.eu/taxation_customs/taxation/excise_duties/gen_overview/index_en.htm)

National Trade Estimate Report on Foreign Trade Barriers, published by
USTR:
<http://www.ustr.gov/Document_Library/Reports_Publications/2007/2007_NTE_Report/Section_Index.html?ht>=
.

Agricultural trade barriers:
<http://www.useu.usmission.gov/agri/usda.html>.

Trade Compliance Center at <http://www.trade.gov/tcc>

U.S. Mission to the European Union at
<http://www.buyusa.gov/europeanunion>.

http://ec.europa.eu/taxation_customs/common/databases/taric/index_en.htm

EU's Customs website:
<http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/index_en.htm>

Information on batteries: http://www.buyusainfo.net/docs/x_8086174.pdf

REACH: <http://www.buyusa.gov/europeanunion/reach.html>.

WEEE and RoHS: <http://www.buyusa.gov/europeanunion/weee.html>

Up-to-date information on harmonized import requirements:
<http://useu.usmission.gov/agri/certificates-overview.html>

U.S. export controls: [http://www.bis.doc.gov](http://www.bis.doc.gov/)

EU mandatory and voluntary labeling and marking requirements:
<http://www.buyusainfo.net/docs/x_4171929.pdf>.

Slovenian Standards Institute: [www.sist.si](http://www.sist.si/)

Foreign Agricultural Service: <http://useu.usmission.gov/agri/>.

Labeling: Key Links: <http://buyusainfo.net/docs/x_4284752.pdf>

<http://ec.europa.eu/comm/environment/ecolabel/index_en.htm>

<http://www.eco-label.com/>

European Accreditation:
[http://www.european-accreditation.org/default_flash.htm](http://www.european-accreditation.org/)

Trade agreements with the EU and its Member States:
http://tcc.export.gov/Trade_Agreements/index.asp.

<http://www.wto.org/English/thewto_e/countries_e/slovenia_e.htm>

More resources are available at <http://www.poslovniportal.si/>

The portal offers up-to-date information pertaining to legal and
regulatory framework in Slovenia.

[Return to table of contents](#section)

[[]{#ch6 .anchor}Return to table of contents](#section)

# Chapter 6: Investment Climate

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

-   [Conversion and Transfer
    Policies](#conversion-and-transfer-policies-return-to-top)

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

-   [Dispute Settlement](#thirtyfour)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top-1)

-   [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](#fortytwo)

-   [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-3)

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

A European Union member since May 1^st^, 2004 and a eurozone member as
of January 1, 2007, Slovenia has a strong mix of qualities to recommend
it as an investment location. With excellent infrastructure, a major
port on the Adriatic Sea and a highly educated work force, Slovenia can
be an attractive place for the investor to access the markets of Central
and Southeastern Europe. In addition, the center-right government,
inaugurated in 2004, adopted a 5-year program to encourage foreign
direct investment (FDI) in the high-tech and services sectors. In August
2005, the government published a Cost Sharing Grant Scheme, which
invites investors initiating ventures of more than €1 million to
negotiate an investment bonus package with the government. In September
2007, the Cost Sharing Grant Scheme received additional funds for
projects in 2008. In October 2006, the Government listed state-owned
company shares on the Ljubljana Stock Exchange for the first time when
it listed Telekom Slovenije.

The overall volume of foreign direct investment (FDI) in Slovenia is one
of the lowest in the EU. At the end of 2006, Slovenia's cumulative FDI
reached approximately €6.8 billion (\$9.9 billion)[^10]. FDI has slowed
since 2002 largely because the former Government of Slovenia (GOS)
shelved the planned privatization of state-owned companies. Although the
current government initially launched a package of economic reform
proposals, which included plans for reduced involvement of the
government in the private sector, the government stepped back from
making radical reforms and implementing immediate privatization.

Despite the stated commitment by the government to improve the situation
for foreign investors, a number of practical impediments to increased
FDI persist:

(i) the legal framework regulating corporate activities is incomplete,
    with continued administrative barriers to business;

(ii) securing land and business premises, especially for industrial use,
     remains difficult;

(iii) the failure to begin a comprehensive restructuring process has
      prevented recently privatized companies from searching for foreign
      strategic partners, although there are some major development
      projects being planned which could result in the creation of new
      industrial parks;

(iv) Slovenia's ambivalent attitude toward FDI continues to create
     uncertainty for potential investors;

(v) the GOS has yet to implement an aggressive FDI policy; and

(vi) a rigid labor force.

The government, with its economic reform proposals, has committed to
making Slovenia more competitive and addressing these long-standing
barriers to investment. In 2007, the Government completed privatization
of the steel industry. In December 2007, the Government sold 49% of the
second largest commercial bank, Nova Kreditna Banka Maribor (NKBM), to
small investors. The Government plans to sell an additional 25% in the
next two years. The Government intends to repeat the NKBM privatization
model for two other major financial organizations: the largest insurance
company Triglav and largest commercial bank Nova Ljubljanska Banka
(NLB). The latest privatization plan targets the summer of 2008. The
majority stake in the national telecom, Telekom Slovenije, is currently
on sale, although the government may change its mind and decide not to
go through with its privatization.

Slovenia welcomes foreign direct investment that does not have a
negative impact on the environment. Slovenia particularly welcomes those
investments that create jobs in the high-tech sector and have links to R
and D activities, for which special tax incentives are available.
Slovenia is a high-tax country but, in January 2007, the government
introduced tax cuts that will significantly reduce business costs. The
payroll tax will be eliminated by 2008. The corporate tax rate will drop
from 23% in 2007, to 22% for 2008, 21% for 2009 and level off at 20% for
2010 and beyond.

There are no formal sectoral or geographic restrictions to foreign
investment. In some regions, Slovenia offers special facilities and
services to foreign investors. Slovenia offers financial and tax
incentives within EU parameters to firms undertaking projects in
economically depressed and underdeveloped areas.

Slovenia has a tremendous opportunity to leverage its key assets in
order to expand the domestic economy and compete successfully for FDI
with other Central European countries. However, without swift
implementation of reforms and solid commitment by the GOS to make
Slovenia as attractive as its Hungarian, Slovak and Czech neighbors, FDI
will not increase. Although the center-left opposition supports
privatization as necessary, it has accused the current government of
privatizing successful state-owned enterprises precipitously. Also, the
current governing coalition is split on how privatization should move
forward. This conflict has slowed down the speed of privatization and
has caused the Government to be more cautious with existing
privatization tenders. This will probably continue until the
parliamentary elections in the fall of 2008 and beyond.

### FDI Promotion Scheme

In summer 2007, the current GOS adopted an FDI Promotion Program that
aims to make the most of Slovenia\'s comparative advantages,
specifically: 1) geographical location in the heart of Europe with good
communication and transport infrastructure; 2) relatively well-developed
and technologically advanced industry; 3) well-educated labor force; 4)
the relative openness of its economy; and 5) political and economic
stability. The program also seeks to overcome the main weaknesses of
Slovenia's current policies related to FDI. Foreign companies report
these weaknesses to be: the Government's passivity in promoting FDI, the
inaccessibility of building sites for conducting business activities,
the lack of financial incentives for greenfield investors, and the low
mobility of the labor force. While the program has yet to produce any
significant successes, the current government is currently developing
privatization programs for industries in which the government has a
stake. The successful privatization of the steel industry and NKBM in
2007 encouraged the Government to continue with privatization in the
banking, insurance and telecommunications sector before the next
parliamentary elections, scheduled for the fall of 2008.

### Financial Incentives

Companies investing (or considering investing) in Slovenia may be
eligible for financial assistance in the form of grants from the
Slovenian Public Investment Promotion Agency (JAPTI). Information and
application forms are available from JAPTI or on their website
[www.investslovenia.si](http://www.investslovenia.si/). Incentives will
be provided for projects that create at least 100 new jobs. This
requirement is reduced to 50 new jobs in less developed regions and to
10 new jobs if the investment is in the field of R&D. The Government
also provides free training and retraining employment grants to
employers who intend to hire unemployed persons.

### Local Incentives

Municipalities offer different forms of incentives, which may be
negotiated on a case-by-case basis. These incentives may include, but
are not limited to, easy access to industrial sites, utility connections
and local tax holidays.

### FDI inflows 2006-2007

Despite plans for privatization in the energy, banking, and
telecommunications sectors dating from 2001, little has been
accomplished to date. Privatization of the banking sector began in early
2002, but stalled until December 2007, when partial privatization of
NKBM was successfully completed. The current ruling coalition (elected
in October 2004) has repeatedly affirmed its interest in selling
state-owned stakes in businesses, but has been slow to actualize its
intentions. As of January 2008, the Government has sold stakes in almost
100 small and medium-sized enterprises (SMEs) and it has announced
privatization in banking, insurance and telecommunications for 2008. The
shares in SMEs have brought in some foreign capital; the large
state-owned enterprises have had significant interest from foreign
companies and investment firms.

Despite the challenges listed herein, the GOS expects that FDI inflows
will increase in the near to medium term, as more foreign investors look
to Slovenia to establish a regional presence or to strengthen their
position in the area. FDI is expected to increase from the following
sources:

\(i\) Acquisitions of already privatized companies;

\(ii\) Privatization of state-owned assets;

\(iii\) Expansion of foreign-owned companies. (Historically, this has
been the largest source of new jobs in the manufacturing sector);

\(iv\) Privatization funds and other state-run funds will continue to
consolidate their portfolios as a way to increase liquidity; and

\(v\) Greenfield investments.

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

Since September 1, 1995, Slovenia has adhered to Article VIII of the IMF
Article of Agreement, thus committing itself to full current account
convertibility and the full repatriation of dividends. Slovenia replaced
its previous currency, the Slovenian tolar, with the Euro in January
2007. In practice, to repatriate profits, joint stock companies must
provide the following: evidence of the settlement of tax liabilities;
notarized evidence of distribution of profits to shareholders; and proof
of joint stock company membership (Article of Association). All other
companies need to provide evidence of the settlement of tax liabilities
and the company\'s act of establishment.

For the repatriation of shares in a domestic company, the company must
submit its act of establishment, a contract on share withdrawal, and
evidence of the settlement of tax liabilities to the authorized bank.

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

[]{#thirtyfour .anchor}According to Article 69 of Slovenia's
Constitution, the right to possession of immobile property can be taken
away or limited, with compensation in kind or financial compensation
under conditions determined by law on the basis of public interest.

There are no current expropriation-related investment disputes in
Slovenia. National law gives adequate protection to all investments.

However, there is an ongoing dispute over property expropriated by the
socialist Yugoslav government after World War II. The 1991
Denationalization Act allowed for claims to be submitted for recovery of
such property. Of a total 39,626 denationalization claims submitted, 491
were filed by U.S. citizens. None of these U.S. citizen claimants were
U.S. citizens at the time the property was expropriated. All U.S.
citizen claimants are either individuals who acquired U.S. citizenship
subsequent to their property being expropriated, or the heirs of
individuals whose property was seized when the owners were not U.S.
citizens. Of these claims, 430, or 88%, had been resolved as of August
31, 2007.

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

Slovenia is a signatory to the 1958 New York Convention on Recognition
of Foreign Arbitral Awards and the 1961 European Convention on
International Commercial Arbitration.

### Legal System

Slovenia has a well-developed, structured legal system. It is based on a
five-tier (district, regional, appeals, supreme, and administrative)
court system. These courts deal with a vast array of legal cases
including criminal, domestic relations, land disputes, contracts, and
other business-related issues and probate. A separate social and labor
court with regional, appeals, and supreme courts, deals strictly with
labor disputes, pensions, and other social welfare claims. Similar to
most European countries, Slovenia also has a Constitutional Court that
hears complaints alleging violations of human rights and personal
freedoms, expresses its opinions on the constitutionality of
international agreements and state statutes, and deals with other high
profile political issues. In keeping with European legal standards, in
1997 the Slovene Parliament established an administrative court to
handle disputes among local authorities, between state and local
authorities, and between local authorities and executors of public
authority.

The Parliament passed a law on Legal Proceedings in July 1999 to speed
up court proceedings. The law stipulates a stricter and more efficient
procedure for serving court documents and providing evidence. For
commercial cases, defendants are now required to file their defense
within 15 days of receiving notice of a claim. Despite the efforts to
improve the effectiveness of the Slovene court system, the court
backlogs at all levels are still significant and cases can drag on for
years. Slovenia has received warnings from the EU on this matter several
times. Because the problem is a major concern of the public as well, in
February 2006, the current government introduced a program to cut the
backlogs. The program targets a 50% decrease in open cases and a
significant cut in the time courts have to solve an open case. Over the
next five years, the program will cut the average processing time of a
case from 18 months to 6 months. In order to accomplish this, the
Ministry of Justice has started creating a better working environment in
courts, funding additional staff, changing remuneration of judges and
administrative staff, and improving IT tools used in the judicial
sector. To further reduce backlog, the government threw out all
misdemeanor cases filed prior to December 2005. These efforts led to a
reduction of backlogs by 7.5% in 2005, an additional 4% reduction in
2006, and a further 6% reduction as of June 2007.

### Arbitration

Unless parties have agreed to binding arbitration for disputes, the
regional court specializing in economic issues has jurisdiction over
business disputes. However, the parties may agree in writing to settle
disputes in another court of jurisdiction.

The parties may also exclude the court as the adjudicator of the dispute
if they agree in writing that contractual disputes be solved by
arbitration, whether ad hoc or institutional. In the former case, the
applicable procedure and law must be determined. In the case of
institutional arbitration, the type of arbitration must be clearly
defined. The Permanent Court of Arbitration within the Chamber of
Economy is an independent institution that solves domestic and
international disputes arising out of business transactions among
companies.

The procedure before the Permanent Court of Arbitration at the Chamber
of Economy of Slovenia is governed by the Regulations on the Procedure
before the Permanent Court of Arbitration at the Chamber of Economy of
Slovenia. Arbitration rulings are final and subject to execution.

### Bankruptcy

Competition is keen in Slovenia and bankruptcies are an established and
reliable means of working out firms\' financial difficulties.

Slovene law provides three procedural methods for handling bankrupt
debtors. The first, Compulsory Settlements, allows the insolvent debtor
to submit a plan for financial reorganization with the Court. The
Compulsory Settlement Plan is then voted upon by the creditors and must
be accepted by those creditors whose claims represent more than 60% of
the total claimed. If the settlement is accepted, the debtor is excused
from the obligation to pay the creditor the amount that exceeds the
percentage of payment set forth in the confirmed settlement. The payment
terms are then extended in accordance with the conditions of forced
settlement. Confirmed compulsory settlement affects creditors who have
voted against compulsory settlement and creditors who have not reported
their claims in the settlement procedure.

The creditor or debtor may also initiate bankruptcy procedures. The
court names a bankruptcy administrator who sells the debtor's property
according to the bankruptcy senate president\'s instructions and
supervision. As a rule, the debtor's property is sold by public auction.
Otherwise, the creditors' committee may prescribe a different mode of
sale such as collecting offers or placing conditions for potential
buyers. The legal effect of completed bankruptcy is the termination of
the debtor's legal status to conduct business, and the distribution of
funds created from the sale of assets to creditors according to their
share of total debt.

The third method, bankruptcy as forced liquidation, is distinguished
from voluntary liquidation (without court intervention) as set forth in
the Law on Commercial Companies. Forced liquidation is imposed on a
debtor, for whom the law determines the liquidation procedure and the
legal conditions for ending his existence as a business entity. This
would occur, for example, if the management does not operate for more
than twelve months, if the court finds the registration void, or by
court order.

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

No performance requirements are imposed as a condition for establishing,
maintaining, or expanding an investment. There are some incentives
offered to potential investors through the "FDI Incentive Scheme." The
Inward Investment Cost-Sharing Grant Scheme will co-fund investments in
industry, strategic services, or research and development that will
result in as least 10 -- 50 new jobs. More information and application
forms can be found at www.investslovenia.org. On the other hand, the
rigid procedures necessary to acquire work permits serve as an
impediment for foreign investors. It can take two to three months to
obtain a work permit. The Ministry of Labor has established a fast-track
procedure for foreigners who are registered in the court registry as
authorized persons or representatives of companies, managers of branch
offices, and for foreigners who are temporarily sent to work in
organizational units for foreign legal persons registered in Slovenia.
More info on work permits and employment services at
<http://www.ess.gov.si/eng/Introduction/Introduction.htm>.

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

No performance requirements are imposed as a condition for establishing,
maintaining, or expanding an investment. There are some incentives
offered to potential investors through the "FDI Incentive Scheme." The
Inward Investment Cost-Sharing Grant Scheme will co-fund investments in
industry, strategic services, or research and development that will
result in as least 10 -- 50 new jobs. More information and application
forms can be found at www.investslovenia.org. On the other hand, the
rigid procedures necessary to acquire work permits serve as an
impediment for foreign investors. It can take two to three months to
obtain a work permit. The Ministry of Labor has established a fast-track
procedure for foreigners who are registered in the court registry as
authorized persons or representatives of companies, managers of branch
offices, and for foreigners who are temporarily sent to work in
organizational units for foreign legal persons registered in Slovenia.
More info on work permits and employment services at
<http://www.ess.gov.si/eng/Introduction/Introduction.htm>.

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

Private enterprise and ownership are promoted and protected in Slovenia,
both by statute and the Constitution. Slovenia's laws on foreign
investment are fully harmonized with EU legislation. As provided for in
the Law on Commercial Companies, all business activities within Slovenia
are open to domestic and foreign natural and legal persons who may
establish wholly or partially owned companies in any legal form provided
by the Commercial Companies Act (Limited, General, and Silent
Partnerships; Joint Stock Companies, Limited Liability Companies, and
Partnerships Limited by Shares; and Economic Interest Groups). Foreign
investors may freely invest in Slovene companies in most industries
except in banking and insurance industries, where a permit from the Bank
of Slovenia or Insurance Supervision Agency is needed. Furthermore,
current regulations limit the foreign ownership stake in gaming
interests to 20%. Foreign investors are permitted to obtain concessions
for the exploitation of renewable and non-renewable natural and public
goods. In addition, foreign and domestic investors have the same
reporting requirements to the Bank of Slovenia.

There are also some restrictions on foreign investment in the field of
military supply. For example, direct investments made by non-residents
in companies or other entities that are engaged in the production of, or
trade in, weaponry and military equipment are allowed only if
specifically authorized by the Government of the Republic of Slovenia.

Any company registered in Slovenia is granted the status of a Slovenian
legal entity under which they enjoy national treatment. Foreign
investors are subject to the same legal treatment as domestic companies
and enjoy the same rights and obligations. The registration process is
rather simple and usually takes between three weeks and one month to
complete. Registered foreign-owned companies may also become members of
the Ljubljana Stock Exchange.

Foreign-owned companies are entitled to own property in Slovenia. All
citizens and enterprises of the European Union or the U.S. have the same
purchase rights and rights of use of land and natural resources as
citizens and domestic enterprises. If a foreign citizen or legal person
from a third (i.e., non-EU) country decides to establish a company in
Slovenia, this company is considered a Slovenian legal person and as
such can buy, own and sell real estate. However, while the law provides
for these rights, some foreign companies have experienced unexplainable
delays in obtaining land even after all the necessary paperwork is in
order.

Foreign shareholders are entitled to free and unrestricted transfer of
their profits abroad in foreign currency, providing that they meet their
tax obligations. The 23% corporate tax rate in Slovenia applies to
domestic and foreign companies and is among the lowest rates in Europe.
In 2007, the government announced further reduction of the corporate
rate from 23% in 2007, to 22% for 2008, 21% for 2009 and 20% for 2010
and beyond.

Credits and guarantees between residents and non-residents are regulated
by the Foreign Exchange Act. The law differentiates between commercial
and financial credits. Commercial credits are those credits relating to
trade and rendering international services that involve a resident as
one of the contracting parties. Commercial credits include contractual
trade credits (deferred payments and/or advances) and their financing by
banks. Factoring operations are also considered to be commercial
credits, on the condition that the underlying operations from which the
claims arise have the nature of commercial credits. All other operations
are considered to be financial credits, including mortgage-backed and
consumer loans as well as financial leasing operations.

All credit transactions, except commercial credits with payment delay or
prepayments less than 12 months, must be in written form and contain all
obligatory parts of the credit business. Authorized banks undertake
credit operations with non-residents for their own accounts and in their
own name or in their own name and for someone else\'s account as his
proxy. Residents other than banks undertake credit operations with
non-residents for their own accounts and in their own name. Residents
must report all credit operations with non-residents to the Bank of
Slovenia within 10 days of signing the loan contract.

Larger banks in Slovenia also have specialized International Desks,
which offer bank services to foreign companies and persons.

The 1999 Law on Banking allows foreign banks to establish branch offices
in Slovenia. Since 1999, local borrowers have faced no restriction
regarding borrowing from abroad, which was strictly regulated before the
new legislation. Once Slovenia joined the EU, its banking regulation was
entirely harmonized with the banking regulation of the EU.

As of June 2001, all restrictions on portfolio investments by foreigners
in Slovenia have been abolished and the purchase of foreign equities by
Slovenes has been fully liberalized.

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

### Mortgages

There is no law, statute, or regulation that specifically deals with
mortgage banking services in Slovenia. However, the Government has
committed itself to creating a mortgage banking system to include
property assessments and deeds that will replace the current Land
Registry system. Currently there are no special mortgage banks in
Slovenia. Accordingly, only a few Slovenian banks offer mortgage loans
per se. Nevertheless, banks provide loans that are secured by mortgages.
They are frequently granted to corporate clients and entrepreneurs as
well as to private individuals.

In order for mortgages to be effective against any owner of real estate,
the mortgage must be registered in the Land Registry Book at the Land
Registry Office. The Land Registry Book was introduced within the
present territory of Slovenia in the 19th century and serves to inform
the general public of the owner of land, buildings, and parts of
buildings. Within the legal system, the Land Registry Book is connected
in part with substantive civil law, which regulates default procedures
on real estate.

Even though many banks give priority to the cash flow statements before
the collateral of the loan, the use of mortgages to finance real estate
developments is common in Slovenia. Mortgages are used as collateral for
corporate financing of development projects. The creditor often requires
the debtor to own, in equity, one and a half to two times the amount of
the loan, depending on the debtor's credit rating. Once the mortgage is
consummated between the creditor and debtor, it is registered in the
Land Registry Book. If the mortgager defaults on the loan, the law
provides for a foreclosure procedure on the mortgaged property.

Slovene banks also offer project financing services for construction and
development projects. Under this program, the banks offer up to 70%
financing (30% of the project cost is usually required from the
investor's own sources). The banks also offer advisory services
pertaining to Slovene regulations on building and sales of real estate
as well as transfer of ownership of the mortgaged real estate. As
collateral, the bank usually requires a mortgage on the building being
built.

### Intellectual Property

Slovenia has enacted highly advanced and comprehensive legislation for
the protection of intellectual property that fully reflects the most
recent intellectual developments in the TRIPS Agreement (Trade Related
Aspects of Intellectual Property) and various EU directives. Slovenia
negotiated its TRIPS commitments as a developing country and implemented
its commitments as of January 1, 1996. Slovenia is a full member of the
TRIPS Council of the World Trade Organization (WTO) and the World
Intellectual Property Organization (WIPO). Slovenia has already ratified
the WIPO Copyright Treaty and the Cyber Crime Convention.

Slovenia's Intellectual Protection Office actively participates in the
Intellectual Property Working Party of the Council of the EU, the
Trademark Committee and other EU working bodies in formulation of new EU
legislation. The Copyright and Related Rights Act amended in 2001 and
2004 deals with all fields of modern copyright and related rights law,
including traditional works and their authors, computer programs,
audiovisual works, as well as rental and lending rights. The act also
takes into account new technologies such as storage and electronic
memory, original databases, satellite broadcasting, and cable
re-transmission. The 2004 harmonization with the EU legislation
introduced a new system of collective management of intellectual rights
following the latest directive.

The 1994 Law on Courts gives the District Court of Ljubljana exclusive
subject matter jurisdiction over intellectual property disputes. The aim
of the law is to ensure specialization of the judges and the speed of
relevant proceedings. Concerning the TRIPS Agreement's enforcement
provision, Slovene law provides for a number of civil legal sanctions,
including injunctive relief and the removal of the infringement, the
seizure and destruction of illegal copies and devices, the publication
of the judgment in the media, compensatory and punitive damages, border
(customs) measures, and the securing of evidence and other provisional
measures without the prior notification and hearing of the other party.
Furthermore, these infringements also constitute a misdemeanor with
fines ranging from €417 (\$613) [^11] to €41,729 (\$ 61,000) for legal
persons and a range of fines, from €41.73 (\$61) to €2,086 (\$3,066),
for supervisors of individual offenders provided that the reported
offenses are not criminal in nature. In such a case, the Slovenian
Criminal Code would apply, which may result in fines or in extreme
cases, imprisonment. While Slovene laws regarding intellectual property
are clearly defined, there have been complaints by foreign investors
about the slow nature of the court system.

Since the enactment of the Law on Copyright and Related Rights Act,
there have been relatively few reported prosecutions for infringement
violations. Most notably are cases of computer software piracy. In 2002,
the Koper District Prosecution Office successfully completed a case
against a small computer company, which illegally installed software on
its customers' hard disk drives in 1997. In January 2004, a long-running
software piracy court case ended with a jail sentence and monetary fine.
Since piracy prosecution is still in the early stages of implementation,
Slovenia has dedicated resources to the training of prosecutors and
public authorities. Slovenia continues to address the preservation of
evidence in infringement procedures and border measures by amending
existing legislation. Moreover, the Ministry of Culture established the
Intellectual Property Fund, the Slovene Copyright Agency, and the
Anti-Piracy Association of Software Dealers (BSA) to combat the problem
of piracy in a collective manner.

### Patents and Trademarks/Licensing

The Law on Industrial Property grants and protects patents, model and
design rights, trademark and service marks, and appellations of origin.
The holder of a patent, model, or design right is entitled to:
exclusively work the protected invention, shape, picture, or drawing;
exclusively market any products manufactured in accordance with the
protected invention, shape, picture, or drawing; dispose of the patent,
model, or design right; prohibit working of the protected invention,
model, or design and legal transactions in respect of them, by any
person not having his consent.

The holder of a trademark has the exclusive right to use the mark in the
course of trade to designate his products or services. The authorized
user of a protected appellation of origin has the right to use the
appellation in the course of trade for marking products to which the
appellation refers.

The patent and trademark rights granted by the Law on Industrial
Property take effect from the date of filing the appropriate
applications. Patents are granted for twenty years from the date of
filing and model and design rights are granted for ten years. Trademarks
are granted for ten years, but may be renewed an unlimited number of
times. The term of an appellation of origin is unlimited. All patents
and trademarks are registered through the Slovenian Intellectual
Property Office with all registers open to the public. Patent and
trademark applications filed in member countries of the International
Union for the Protection of Industrial Property are afforded priority
rights in Slovenia. The priority period is twelve months for patents and
six months for model and design rights.

Any person who infringes upon a patent or trademark right may be held
liable for damages and prohibited from carrying on the infringing acts.

The Law on Industrial Property also provides for the contractual
licensing of patents, model and design rights, and marks. All license
agreements must be in writing and specify the duration of the license,
the scope of the license, whether the license is exclusive or
non-exclusive, and the amount of remuneration for the use if
compensation is agreed upon.

Compulsory licenses may be granted to another person when the invention
is in the public interest or the patentee misuses his rights granted
under the patent. A misuse of a patent occurs when the patentee does not
work or insufficiently works a patented invention and refuses to license
other persons to work the protected invention or imposes unjustified
conditions on the licensee. If a compulsory license is granted, the
patentee is entitled to compensation. Slovene industrial property
legislation fully complies with EU standards.

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

[]{#fortytwo .anchor}Foreign companies conducting business in Slovenia
have the same rights, obligations, and responsibilities as domestic
companies. The principles of commercial enterprise, free operation, and
national treatment apply to the operations of foreign companies as well.
Their basic rights are guaranteed by the Law on Commercial Companies and
the Law on Foreign Transactions.

Generally, the bureaucratic procedures and practices are sufficiently
streamlined and transparent for the foreign investor wishing to start a
business in Slovenia. In order to establish a business in Slovenia, the
foreign investor must produce a sufficient minimum amount of capital,
and €8,763 (\$12,880) for a limited liability company and €25,038
(\$36,800) for a stock company, establish a business address, and file
appropriate documentation with the court. The entire process usually
takes from three weeks to one month, but may take longer in Ljubljana
due to backlogs in the court. Previously, the registration process took
up to a year, but Slovenia has made great efforts to reduce the delay.

Slovenia signed a reciprocal taxation treaty with the U.S. in June 1999.
The rate of taxation of profits in Slovenia is lower than in the United
States. Slovenia introduced the Value Added Tax (VAT) in July 1999.
Slovenian VAT only has two grades, 8.5% and 20%. The standard VAT is 20%
with 8.5% for some specialty items.

### Protection of Competition

In Slovenia, highly concentrated market structures are not illegal per
se; however, the abuse of market power is. The Law on the Protection of
Competition prohibits acts that restrict competition in the market,
conflict with good business practices relating to market access, or
involve prohibited speculation. The law, which is fully harmonized with
EU legislation, is applicable to corporate bodies and natural persons
engaged in economic activities regardless of their legal form,
organization, or ownership. The law also applies to the actions of
public companies.

Restriction of competition through cartel agreements, unfair competition
(i.e., false advertising, promises/gifts in exchange for business, trade
secrets, etc.), illicit speculation during times of irregular market
situations, and dumping and subsidized imports are all prohibited. The
Government may, however, prescribe market restrictions in the following
instances: in cases of natural disasters, epidemics, or in a state of
emergency; in cases of appreciable market disturbances due to the
shortage of goods; or when necessary to satisfy requirements for the
products, raw materials, and semi-finished goods of special or strategic
importance to the defense of the nation.

The Competition Protection Office (CPO) is charged with ensuring fair
competition in the marketplace. Investigations can be initiated by the
CPO or conducted at the request of private companies. The CPO can issue
a decree against any company found to have violated the Law on the
Protection of Competition, although the power to fine companies rests
solely in the hands of the courts. Any party trading in goods or
services on the market may initiate legal proceedings in cases of unfair
competition. Injured parties are entitled to compensation and the
injunction of the unfair acts.

The court may issue a penalty of €125,188 (\$185,000) to €375,563
(\$552,000) against companies found to have engaged in cartel
agreements, abused a dominant market position, committed an act of
unfair competition, or engaged in illicit speculation. The managers and
directors of the sanctioned company may be liable for a minimum fine of
€4,173 (\$6,100). Self-employed persons found to have committed any of
the legally prohibited actions are liable for no less than €41,729
(\$61,000). There are also fines for not complying with the CPO in the
range of €2,086 to €4,173 (\$3,066 --\$6,100) for every week that
requested documentation is not submitted. The same range of fines also
applies if the sanctions are not carried out.

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

The financial sector remains relatively underdeveloped for a country
with Slovenia\'s prosperity. Enterprises rarely raise capital through
the stock market. The shallowness of the sector hinders economies of
scale and**,** despite shortcomings in the banking sector, capital is
cheaper to acquire through banks than through more direct equity or debt
sales.

### Banking

The banking sector in Slovenia is marked by a relatively **high degree
of concentration** (the three largest banks account for half of total
banking assets and the top seven hold nearly 80% of the market),
**excess capacity** (21 banks, 3 savings banks in a country of 2 million
people), and a **low level of services**. As a result, a number of banks
are unable to exploit economies of scale and have relatively low
productivity levels, with the consequences being high margins and low
returns on equity.

In the past several years, a number of Slovene banks have been partially
or fully taken over by foreign banks. In addition, a number of Slovene
banks have announced mergers. In 2001, France's Societe Generale took
over Slovenia's largest private bank, SKB Banka. In October 2001,
Italian banking group San Paolo IMI purchased 82% of Bank of Koper, the
fifth largest bank. In spring 2002, the Government sold 34% of the
largest commercial bank, Nova Ljubljanska Banka (NLB), to the Belgian
KBC Group, with another 5% sold to the European Bank for Reconstruction
and Development (EBRD). The Government has stated that it intends to
invite further investment in NLB. The two largest banks, NLB and Nova
Kreditna Banka Maribor (NKBM), are majority-owned by the state but the
current government avers that it is committed to privatizing them.
Because the Government could not find a strategic partner for NKBM, it
offered 49% of the bank to small investors in December 2007. The
Government announced a further decrease of state shares down to 25% over
the next two years. Because the sale of NKBM among small investors was
publicly well received, the Government announced similar privatization
for NLB prior to parliamentary elections in the fall of 2008.

The balance sheets of Slovenia's banks are relatively strong, reflecting
an early and aggressive program of bank rehabilitation launched by the
Government in 1992. However, the wide differences between the balance
sheets of the largest and the smallest banks seem to indicate that the
ultimate consolidation of the banking sector is inevitable. The
Government has encouraged bank mergers as a means of dealing with the
sector\'s excess capacity.

New banking legislation authorizes commercial banks, savings banks, and
stock brokerage firms to purchase securities abroad. Investment funds
may also purchase securities abroad provided that certain
diversification requirements are met.

### Securities Markets

The Ljubljana Stock Exchange (LSE) was established in 1990. A Commodity
Exchange

(CE) was established in 1994, but ceased operation in 1998. The LSE
underwent its most rapid growth during the period from 1994 to 1997,
aided by the listing of new companies in the first phase of
privatization in Slovenia. The LSE serves more as a vehicle for
achieving the transformation of enterprises than as a means for raising
capital.

A very illiquid exchange, the LSE has been working to encourage the
government to list shares of strong, state-owned companies such as
Telekom Slovenije or NLB in order to boost market activity. As of
January 2008, Telekom Slovenije and NKBM bank are the only state-owned
companies listed on the Ljubljana Stock Exchange. Although the initial
Telekom Slovenije and NKBM trade volume was low, doors are open for an
investor. The LSE also held discussions with larger European stock
exchanges about the possibility of joint operations.

In 1997, the LSE became a full member of the International Association
of Stock Exchanges (FIBV). The LSE has two official listings -- A and B
-- depending on the amount of a listing\'s capital, audited financial
statements, size of the class of securities, and securities
distribution. The over-the-counter (C) market has less stringent
requirements. In spite of the market boom since 2002, securities markets
remain relatively underdeveloped in Slovenia. Despite appreciation of
the market capitalization of the LSE in recent years, it remains a very
illiquid market, with annual turnover similar to a single day's trading
on the NYSE.

In 1995, the Central Securities Clearing Corporation (KDD) was
established. KDD runs the central registry securities and trade
clearings concluded on the LSE electronic trading system. The Securities
Market Agency (SMA), established in 1994, has powers similar to the SEC
in the U.S. The SMA supervises investment firms, the LSE, the KDD,
investment funds, and management companies, and shares responsibility
with the Bank of Slovenia for supervision of banking and investment
services.

The LSE uses different dissemination systems, including real time
on-line trading information via REUTERS or the BDS System. The LSE also
publishes information on the Internet at
[http://www.ljse.si](http://www.ljse.si/).

### Insurance

A high level of concentration characterizes the insurance sector in
Slovenia with the largest company, state-owned Triglav d.d., holding 43%
of the total market in gross premiums and the 5 largest companies
accounting for 91% of market share. Insurance companies invest their
assets primarily in non-financial companies, state bonds, and
bank-issued bonds.

There have been significant changes in the legislation regulating the
insurance sector since 2000. The Ownership Transformation of Insurance
Companies Act, designed to accomplish the privatization of insurance
companies, was postponed several times due to ambiguity concerning the
estimated share of state-controlled capital. Although insurance sector
privatization discussions have been ongoing since 2005, no concrete
plans have been implemented. In October 2007 the government's decision
to give the disputed 35% stake of Triglav to state fund KAD for sale to
investors was challenged by the opposition's request for a referendum,
which forced the government to change its decision. Encouraged by the
successful public sale of NKBM bank, the government announced similar
privatization for Triglav insurance company in summer 2008.

Currently, there are three health insurance companies registered in
Slovenia and 13 companies offering other kinds of insurance. However,
under EU regulation, any insurance company registered in the EU can
market its services in Slovenia as well, given that the insurance
supervision agency of the country where this company is registered has
notified the Slovenian Supervision Agency of the company's intentions.

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

Except for a brief, 10-day conflict in 1991 over Slovene independence,
there have been no incidents of political violence in Slovenia. A NATO
member since March 2004, Slovenia maintains normal diplomatic and
commercial relations with all former Yugoslav republics.

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

Similar to many other European countries, Slovenia does not have a
bribery statute equal in stature to the U.S. Foreign Corrupt Practices
Act. However, Chapter 24 of the Slovene Criminal Code (S.C.C.) provides
statutory provisions for criminal offenses in the economy. Corruption in
the economy can take the form of corruption among private firms or
corruption among public officials.

The S.C.C. provides for criminal sanctions against officials of private
firms for the following crimes: forgery or destruction of business
documents; unauthorized use or disclosure of business secrets; insider
trading; embezzlement; acceptance of gifts under certain circumstances;
money laundering; and tax evasion.

Specifically, Articles 247 and 248 of the S.C.C. make it illegal for a
person performing a commercial activity to demand or accept undue
rewards, gifts, or other material benefits that will ultimately result
in the harm or neglect of his business organization. While Article 247
makes it illegal to accept gifts, Article 248 prohibits the tender of
gifts in order to gain an undue advantage at the conclusion of any
business dealings.

Public officials are held accountable under Article 267 of the S.C.C.,
which makes it illegal for a public official to request or accept a gift
in order to perform or omit an official act within the scope of his
official duties. The acceptance of a bribe by a public official may
result in a fine or imprisonment of no less than one year, with a
maximum sentence of five years. The accepted gift/bribe is also seized.

While Article 267 holds public officials accountable, Article 268 holds
the gift's donor accountable. Article 268 makes it illegal for natural
persons or legal entities to bribe public officials with gifts.
Violation of this article carries a sentence of up to three years.
However, if the presenter of the gift discloses such bribery before it
is detected or discovered, punishment may be omitted. Generally, the
gift is seized. However, if the presenter of the gift disclosed the
violation, the gift may be returned to him/her.

The state prosecutor's office is responsible for the enforcement of the
foregoing anti-bribery provisions. The number of cases of actual bribery
is small and is generally limited to instances involving inspection and
tax collection. Although the prosecutor's office may suspect bribery and
related corruption practices in government procurement offices,
obtaining evidence is difficult, thereby making it equally difficult to
prosecute. Corruption in Slovenia is on a minor scale. 2001 saw
Slovenia's first and only serious scandal involving a high public
official convicted of accepting a bribe.

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

Slovenia has signed Bilateral Investment Treaties (BITs) with Albania,
Australia, Austria, Belgium -- Luxembourg Economic Union, Bosnia &
Herzegovina, Bulgaria, Chile, China, Croatia, Cuba, Czech Republic,
Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Israel, Italy, Kuwait, Lithuania, Macedonia (F.Y.R.), Malaysia,
Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russian
Federation, Singapore, Slovak Republic, Spain, Sweden, Switzerland,
Thailand, Turkey, Ukraine, the United Kingdom, Uzbekistan, and Serbia
and Montenegro. Slovenia is currently negotiating BITs with Argentina,
Brazil, Saudi Arabia and Vietnam. Slovenia does not have a BIT with the
United States due to ongoing discussions between the US and the EU on
how member states without a BIT treaty will accede to the US-EU BIT
agreement.

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

The U.S. Overseas Private Investment Corporation (OPIC) and Slovenia
signed a bilateral agreement on April 24, 1994. There are currently a
number of OPIC investment finance and insurance programs available in
Slovenia, including loan guarantees, direct loans, and political
violence and expropriation insurance.

The U.S. Export-Import Bank offers short-, medium-, and long-term
private sector as well as short-term public sector programs in Slovenia.
In July 1999, the Slovenian Export Corporation (SEC) and the U.S.
Export-Import Bank signed a memorandum on cooperation in financing,
insuring, and reinsuring exports to Southeast European countries. In
January 2007, the SEC restructured to become the Slovenian Export and
Development Bank. More information is available on their website
[www.sid.si](http://www.sid.si/).

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

Continuing the positive trend in the Slovene labor market, the number of
employed persons grew by 3.5% in the first nine months of 2007. The
labor force expanded by 1.4%. At the same time the number of registered
unemployed fell by 17.9%. Employment increased mainly in the service
sector, construction and car manufacturing, while it continued to fall
in farming, mining, and processing industries. As of September 2007, the
9-month unemployment rate for 2007 was 4.5% (according to the ILO
method). The official forecast for unemployment in 2008 is 5.0.

Slovenia fully harmonized labor legislation with the EU on May 1, 2004.
Slovenia has opted for no transition period in connection with workforce
movement within the EU, but has kept the right to intervene through 2009
in case of market distortion. In line with new legislation, Slovenia has
retained strict rules on issuing work permits to non-EU applicants. The
2001 Employment of Aliens Act introduces a quota system for work permits
and simplifies the procedure for obtaining work permits for foreigners
who have worked and lived in Slovenia over a long period of time.

Despite a generally decreasing rate of unemployment caused by record
growth rate, the problem of structural unemployment persists. A number
of "old-line" businesses have announced layoffs for the coming years
which could put thousands of people out of work, significant in a
country where the total workforce numbers less than one million. The
economic reforms propose to address this problem through a combination
of retraining and investment in new technologies. The regions of highest
unemployment in Slovenia are mostly in the northeast.

Slovenia's wage-setting practice follows the "social partners" mode,
designed to contain upward pressure by centralizing wage decisions. In
practice, however, high wage expectations have pushed Slovenia's wage
levels far above those of its central European neighbors, reaching about
half the cost of Austrian labor. However, its well-educated labor force
and position as the most productive transition economy allows it to
remain competitive in niche markets.

In December 2007, employer and employee associations agreed on 3.2% wage
increase on top of general guidelines for wage policy in the private and
public sectors because of higher than expected inflation in the second
half of 2007. In order to maintain macroeconomic stability, wage policy
should preserve the lagging of wage behind labor productivity growth.
However, trade unions announced a general strike in February if wages do
not increase enough to compensate for significant increases in prices of
food.

Slovenia adopted a new Employment Relationship Act that entered into
force in January 2003. The Act defines a full time workweek as 36 to 40
hours (made up of 6 to 8-hour days including a 30-minute lunch break),
increases protection of critical working groups (including women and
children), and eases the conditions under which an employer may
terminate employees.

Slovenia's labor force performs well in the higher value-added
activities that utilize its skilled technicians and engineers at a
somewhat lower cost than in the developed West. However, Slovenia would
benefit from a workforce with stronger managerial skills, most notably
in the banking and insurance sectors. Despite the introduction of
greater labor market flexibility, the market for workers remains quite
rigid and investors will find that termination of workers is more
difficult than in the U.S. In addition, the labor market remains
relatively over-protected, and pay scales in public service are very
complicated and do not reward performance. The government's economic
reform package proposes significant changes to the labor market, and
would add greater flexibility in terms of moving employees from one job
skill to another as well as enabling companies to terminate more easily
underperforming employees.

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

There are two kinds of Free Trade Zones in Slovenia: Free Economic Zones
and Free Customs Zones.

### Free Economic Zones

Free economic zones (FEZ) exist in Koper and Maribor. FEZs may be
established by one or more domestic legal persons. The founders must
provide the resources necessary for the establishment and commencement
of operation, as well as suitable technical, organizational, ecological,
and other conditions for the performance of business activities.

The following activities may be performed within free economic zones:
production and services; wholesale trade; banking and other financial
services; and insurance and reinsurance regarding the above mentioned
activities.

After obtaining an appropriate tax authority decision, users of FEZs are
entitled to the following benefits:

-   VAT exemption for imports of equipment, production materials, and
    services necessary for export production or performance of other
    permitted activities;

-   a reduction in corporate tax rates from the normal 23% to 10%;

-   a tax allowance amounting to 50% of invested resources on
    investments in tangible assets in the FEZ; and

-   a reduction in the taxable base amounting to 50% of the salaries of
    apprentices and other workers formerly unemployed for at least 6
    months.

The agreement on establishment of free economic zones is subject to
governmental approval within 30 days of submitting the application. The
founder must also obtain an operating license and a customs authority
decision on the fulfillment of conditions for performing customs
inspection in the free zone.

According to the Economic Zones Act, the Parliament adopted the Decree
on Economic Zones, outlining the procedures for obtaining all necessary
permits for the establishment and operation of FEZs. Only companies
registered in Slovenia may establish an FEZ. Companies not registered in
Slovenia may operate inside an FEZ through a contract with the domestic
company that established the FEZ.

The application for establishment of FEZs must be filed with the
Ministry of Economy. In addition to the information required by Article
7 of the Free Economic Zones Act, the application must contain a
sufficiently detailed description of intended activities to enable an
economically viable decision regarding the establishment of the FEZ and
the effective customs supervision of business operations. Properly
completed applications are forwarded to the Ministry of Economy,
Ministry of Finance, and Customs Administration for further
consideration.

Before commencing operations, the customs authorities inspect the FEZ
premises for the purpose of ensuring conditions for effective customs
control and approving the method of keeping the records of goods as
prescribed by the Free Economic Zones Act. Tax authorities then issue a
decision entitling the FEZ operator to the favorable tax treatment
mentioned above.

While FEZ Koper is fully operational, only a few companies are present
in FEZ Maribor. According to the Law on Free Economic Zones, operations
in FEZs are guaranteed until at least January 1^st^, 2010.

### Free Customs Zones

As of January 2008, the only free customs zone (FCZ) in Slovenia is the
Port of Koper.

Under the Customs Act, subjects operating in FCZs are not liable for
payment of customs duties, nor are they subject to other trade policy
measures until goods are released into free circulation.

Duties and rights of users include the following:

-   Separate books must be kept for activities undertaken in FCZs;

-   Users may undertake business activities in a FCZ on the basis of
    contracts with the founders of FCZs;

-   Users are free to import goods (customs goods, domestic goods for
    export) into FCZs;

-   Goods imported into FCZs may remain for an indefinite period, except
    agricultural produce, for which a time limit is set by the
    government;

-   Entry to and exit from FCZs is to be controlled;

-   Founders and users must allow customs or other responsible
    authorities to execute customs or other supervision; and

-   For the purposes of customs control, users must keep records of all
    goods imported into, exported from, or consumed or altered in FCZs.

The Customs Act also allows the establishment of open FCZs regulated by
more liberal provisions regarding their organization and customs
authorities' supervision.

In such FCZs, users may undertake the following activities:

-   Production and service activities, including handicrafts, defined in
    the founding act or contract, and banking and other financial
    business transactions, property and personal insurance and
    reinsurance connected with the activities undertaken;

-   Wholesale transactions; and

-   Retail sales, but only for other users of the zone or for use within
    the FCZ.

Customs authorities must be previously notified of the performance of
the above-mentioned activities. Activities in FCZs must not endanger
health, life, or the environment. Goods that leave a FCZ may be
re-exported from the customs territory or taken to another part of the
customs territory after payment of customs duties.

#### 

### Purchase rights 

Businesses incorporated or founded in Slovenia have equal purchase
rights, land, and natural resources use as Slovenian enterprises
regardless of the share of foreign capital. Businesses not incorporated
or founded in Slovenia have the same rights if they have
subsidiaries/enterprises with headquarters in the EU and all
transactions are justified by the primary activity of the business.
Businesses not falling into either of the above categories should
contact the Slovenian Public Investment Promotion Agency (JAPTI) for
further information at
[www.investslovenia.si](http://www.investslovenia.si/).

Private EU citizens may purchase or sell land and acquire rights to
natural resources. However, Slovenia has reserved the right to impose
restrictions until 2008 in case of market distortions. For individual
U.S. citizens, however, the situation is different. Slovenia is a
successor of the 1881 Treaty between the United States of America and
Serbia. Among other matters, the Treaty governs the issue of acquiring
real property. Under the Treaty, United States citizens enjoy the right
of acquiring real property in Slovenia. However, the Treaty is still
pending ratification by the National Assembly of Slovenia. Until the
Treaty has been ratified, i.e., until a new bilateral agreement is
adopted, the situation concerning individual United States citizens'
ownership of real property in Slovenia is unclear and authorization of
purchases are generally treated on a case by case basis by the legal
authorities. As such, JAPTI normally recommends that United States
citizens use the real property purchase option available to nationals of
all third countries, namely, establishing a company.

#### 

### Key business locations 

Slovenia has recently developed sites designed for greenfield
investments. Most of the newly developed industrial zones have direct
access to highways and rail service. The infrastructure in place is well
developed. In some instances, prices for fully equipped land in
industrial zones may be acquired at a reasonable rate since
municipalities and the State often subsidize infrastructure and land
costs. Above all, local authorities are interested in new employment
opportunities. Land prices can vary greatly. In Lendava, a town located
in the eastern part of the country, price per square meter of land is
roughly €5, while prices in the vicinity of Ljubljana can run to €50 or
more. Potential investors may also count on a full range of free
services and concessions provided by local development agencies for
start-ups. The assistance may also include assistance in completing all
the necessary paper work (permits) and, in some cases, organizing and
financing construction in line with the investors' requirements. The
table given here is indicative of prices in areas around Slovenia.
Interested investors can contact the U.S. Embassy in Ljubljana for
further information.

+--------+--------------+-----+-------------+-------------------------+
| Area/  | Tow          | E   | Size        | Contact                 |
|        | n/industrial | UR/ |             |                         |
| Region | park         |     |             |                         |
|        |              | sq  |             |                         |
|        |              | m   |             |                         |
+--------+--------------+-----+-------------+-------------------------+
| P      | Lendava      | 15  | 158         | Poslovni park Lendava   |
| omurje |              |     | hectares    | d.o.o.                  |
+--------+--------------+-----+-------------+-------------------------+
| P      | Murska       | 25  | 52.5        | MURA (Regional          |
| omurje | Sobota       |     | hectares    | Development Agency)     |
+--------+--------------+-----+-------------+-------------------------+
| Po     | Slovenska    | 47  | 27 hectares | Municipality of         |
| dravje | Bistrica     |     |             | Slovenska Bistrica      |
+--------+--------------+-----+-------------+-------------------------+
| P      | Slovenska    | 25  | 38 hectares | Municipality of Brežice |
| osavje | vas          |     |             |                         |
+--------+--------------+-----+-------------+-------------------------+
| P      | Drnovo       | 27  | 80 hectares | Municipality of Krško   |
| osavje |              |     |             |                         |
+--------+--------------+-----+-------------+-------------------------+
| Gor    | Naklo        | 23  | 87.5        | Municipality of Naklo   |
| enjska |              |     | hectares    |                         |
+--------+--------------+-----+-------------+-------------------------+
| Sav    | Celje        | not | 32 hectares | Municipality of Celje,  |
| injska | (Gaberje)    | yet |             |                         |
|        |              | sta |             | Celje Regional          |
|        |              | ted |             | Development Agency      |
+--------+--------------+-----+-------------+-------------------------+
| Notr   | Postojna     | 4\* | 23 hectares | Municipality of         |
| anjska | (Studenec)   |     |             | Postojna                |
+--------+--------------+-----+-------------+-------------------------+
| Bela   | Metlika      | 25  | 13 hectares | Municipality of Metlika |
| K      |              |     |             |                         |
| rajina |              |     |             |                         |
+--------+--------------+-----+-------------+-------------------------+
| Bela   | Črnomelj     | 1   | 100         | Rudnik Kanižarica       |
| K      | (Kanižarica) | 2.5 | hectares    |                         |
| rajina |              |     |             |                         |
+--------+--------------+-----+-------------+-------------------------+
| Osredn | Komenda      | 62. | 93 hectares | Municipality of Komenda |
| je-slo |              | 5 - |             |                         |
| venska |              | 125 |             |                         |
+--------+--------------+-----+-------------+-------------------------+

\*the price stands for land only (no infrastructure)

Source: JAPTI 2007

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

Foreign Direct Investment (FDI) in Slovenia is very low, despite
Slovenia's overall good mix of qualities as an investment location.
Total FDI stock in Slovenia at the end of 2006 was \$9.96 billion. As
with trade, the bulk of FDI in Slovenia is European in origin. U.S. FDI
in Slovenia, as calculated by the U.S. Embassy, is around 10% of the
total, or roughly \$800 million. (N.B.: The Bank of Slovenia (BoS), in
its official data, lists U.S. FDI at approximately \$216.1 million or
2.2% of total FDI. However, this amount does not take into account
significant investments by U.S. firms, notably Goodyear. This data is
not listed as U.S. in origin by the BoS as U.S. funds were routed
through a third country. Goodyear's investment in Sava Tires, for
example, came to Slovenia via a bank in Luxembourg. Based on our
discussions with U.S. firms, we believe our estimate of \$800 million is
a more accurate representation of the true U.S. FDI presence in
Slovenia.)

###### [Foreign Direct Investment in Slovenia -- Stock on 31.12. 2006 (major investors)]{.underline} 

Country Total Value Share of

(Millions of Euros) Total (%)

Austria 2,187.7 32.3

Switzerland 933.4 13.8

Netherlands 618.8 9.1

France 588.1 8.7

Germany 537.2 7.9

Italy 374.3 5.5

Luxemburg 295.3 4.4

Croatia 278.0 4.1

Belgium 248.5 3.7

USA (*official BoS data, see note above*) 146.7 2.2

Other 566.9 8.4

Total 6,774.9 100.0

###### [Foreign Direct Investment in Slovenia by sector -- Stock on 31.12. 2006]{.underline}

Sector Total Value Share of

(Millions of Euros) Total (%)

Financial intermediation, not insurance 1,306.2 19.3

Mfr. chemicals & chemical products 904.5 13.3

Other business activities 768.8 11.3

Wholesale, commission, not motors 564.9 8.3

Mfr. of rubber & plastic products 326.3 4.8

Sale/repair of motors and machinery 303.9 4.5

Retail Trade 252.1 4.0

Mfr. of motor vehicles 267.8 4.0

Mfr. of pulp, paper & paper products 255.6 3.8

Electricity, gas, steam, and hot water 252.0 3.7

Mfr. of machinery & equipment 198.1 2.9

Other 1,361.8 20.1

Total 6,774.9 100.0

###### [Slovene Foreign Direct Investment abroad -- Stock on 31.12. 2006]{.underline}

Country Total Value Share of

(Millions of Euros) Total (%)

Croatia 926.9 26.8

Serbia and Montenegro 790.1 22.9

Netherlands 354.8 10.3

Bosnia and Herzegovina 343.6 9.9

Poland 138.8 4.0

Russian Federation 120.9 3.5

Macedonia 117.3 3.4

Germany 74.1 2.1

Austria 70.9 2.0

Liberia 63.4 1.8

USA 47.3 1.7

Other 401.0 11.6

Total 3,457.2 100.0

###### [Slovene Foreign Direct Investment abroad by sector -- Stock on 31.12. 2006]{.underline}

Sector Total Value Share of

(Millions of Euros) Total (%)

Other business activities 589.4 17.0

Mfr. chemicals & chemical products 398.0 11.5

Retail trade, not motors; repairs 515.2 14.9

Financial intermediation, not insurance 272.2 7.9

Mfr of food products & beverages 228.7 6.6

Wholesale, commission, not motors 211.1 6.1

Mfr. of machinery & equipment 162.4 4.7

Sale/Repair of motors and machinery 162.4 4.7

Sale/Repair of motor vehicles, etc 100.5 2.9

Manufacture of motor vehicles, etc 77.6 2.2

Other 743.3 21.5

Total 3,457.2 100.0

### Major U.S.-based Investors:

The following is a short list of U.S. firms holding investments or with
a presence in Slovenia.

Amway

ANR-Amer Nielsen Research

Caterpillar

3M

Coca-Cola Corporation

Colgate-Palmolive

Cisco

Deloitte & Touche

DHL International

DuPont

Ecolab

Eli Lilly

Ernst & Young

Emerson Electronics

Goodyear

Hewlett-Packard Company

IBM

Johnson & Johnson

Liberty Global

Marsh

Masterfoods

Merck, Sharp & Dohme

Microsoft

McDonald's

Motorola

Oracle Corporation

Pfizer Corporation

Philip Morris

Pricewaterhouse Coopers

Procter & Gamble

Schering-Plough

United Global Communications

Wrigley

Xerox

### Other Major Foreign Investors in Slovenia:

Alcan, Canada

AmBev, Brazil

BankAustria Creditanstalt AG, Austria

Belisce, Croatia

Bramac International, Austria

Brig&Bergmeister, Austria

Chiorino, Italy

Citroen, France

Danfoss, Denmark

Debitel AG, Germany

EBRD, United Kingdom

EGO, Switzerland

E. Leclerc, France

Faurecia, France

GKN, United Kingdom

Grammer Automotive, Germany

Grupo Bonazzi, Italy

Hella, Germany

Henkel Central, Austria

Horizonte Enterprise Development, Netherlands

IBRD, United Kingdom

Imperial Tobacco, United Kingdom

Inexia AB, Sweden

ISS Central Europe, Austria

IHC Holland, Netherlands

KBC, Belgium

KM Moebl, Germany

Lafarge Perlomooger, Austria

Mannesann Rexroth, Germany

Messer Griesheim, Germany

Mobilcom, Austria

Nijaz Hastor, Bosnia and Herzegovina

Novartis, Switzerland (Sandoz Group)

Novem, Germany

Pfledider, Germany

Podravka, Croatia

Renault, France

Rexel, France

Roto Frank AG, Germany

San Paolo IMI, Italy

Safilo, Italy

Siemens AG, Germany

Societe Generale, France

Sodexho Alliance, France

Spar, The Netherlands

STE Troyes, France

Styria Federn, Austria

TCG Unitech AG, Austria

Vogt, Germany

Wieneberger, Austria

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

Employment Service of Slovenia:
<http://www.ess.gov.si/eng/Introduction/Introduction.htm>

Ljubljana Stock Exchange:
<http://www.ljse.si/cgi-bin/jve.cgi?doc=1468&sid=IZcm9itkX3Nnu9H6>

Public Agency for Entrepreneurship and Foreign Investment:
<http://www.japti.si/index.php?root=4>

Slovenian Intellectual Property Office:
<http://www.uil-sipo.si/sipo/office/tools/home/>

Slovenian Export and Development Bank Inc., Ljubljana:
<http://www.sid.si/sidang.nsf>

Bank of Slovenia: <http://www.bsi.si/en/>

[Return to table of contents](#section)

[[]{#ch7 .anchor}Return to table of contents](#section)

# 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)

-   [U.S. Banks and Local Correspondent
    Banks](#foreign-exchange-controls-return-to-top)

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

-   [Project Financing](#project-financing-return-to-top)

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

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

The usual methods of payment in Slovenia include cash, bank debit cards,
and major credit cards. Many vendors offer installment payments,
especially for goods valued over USD 100. In cooperation with a local
bank, vendors also offer on-the-spot "mini-loans" for purchases from
approximately USD 500 to USD 1,500.

For larger purchases (furniture, cars, real-estate), an invoice or
proforma invoice is issued. The client then wires the money directly to
seller's bank account to avoid large withdrawals and deposits of cash.
While larger transactions or transactions marked urgent are done in real
time (Real Time Gross Settlements -- RTGS), other payments are cleared
every two hours, starting at 8am with the last clearance at 4pm.

Other types of payment, such as letter of credit, documentary
collections, and factoring, are also used.

Local credit rating company I d.o.o. is Dun & Bradstreet's partner in
Slovenia. It provides credit rating of local companies within few days.
( [www.idoo.si](http://www.idoo.si/) )

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

The banking sector in Slovenia remains fairly rudimentary. Unlike many
of the transition economies\' banking industries, Slovenian banks have
rather strong capital bases and robust loan portfolios. In many cases,
however, banks are limited to a narrow range of traditional activities
and have yet to engage in new consumer services, investment banking, and
management of more complex financial instruments. Nevertheless, the
financial statements of Slovenian banks are in compliance with
international standards and audited by internationally recognized
auditors. Because of the relative immaturity of the banking sector,
identifying financing for domestic projects can be problematic. Banks
typically seek 100% collateral in most cases. Currently, there are no
American banks registered in Slovenia.

Slovenia has taken some important steps to liberalize its financial
markets. A combination of market forces and changes in the Bank of
Slovenia's regulations and national legislation are moving this sector
in a more globally oriented direction. In the future, it will likely
become easier and more transparent to make both portfolio and direct
investments in Slovenia and to conduct many financial operations,
including banking, securities brokering, and undertaking various credit
transactions. The banking sector is also showing signs of stirring from
its relative torpor, as many banks have consolidated under the pressures
of competition.

The referential interest rate in Slovenia is EURIBOR. Interest rates are
usually expressed as 3, 6 or 12-month EURIBOR + margin. The Consumer
Price Index (CPI) is used as a measure of inflation.

Other sources of financing are available, although only for a limited
range of activities. The U.S. Export-Import Bank provides medium-term
and long-term loans and guarantees, and OPIC offers loan guarantees and
direct loans. The European Investment Bank (EIB) and the International
Finance Corporation are involved in funding large infrastructure
projects, while the European Bank for Reconstruction and Development
(EBRD) provides financing for banking sector privatization as well as
financing for the privatization of other sectors.

In July 1999, the Slovenian Export Corporation (SEC) and the U.S.
Export-Import Bank signed a memorandum on cooperation in financing,
insuring, and reinsuring exports to Southeast European countries.

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

Currently, there are no U.S. banks operating in Slovenia. However, all
Slovene banks have correspondent banks in the U.S., hence money
transfers to and from the U.S. are not problematic.

Banks operating in Slovenia:

+-----------------------------------+-----------------------------------+
| **ABANKA VIPA d.d.**              | Slovenska cesta 58, 1517          |
|                                   | Ljubljana\                        |
| Address:\                         | +386 1 471 81 00\                 |
| Phone:\                           | +386 1 432 51 65, +386 1 432 93   |
| Fax:\                             | 22\                               |
| Internet:\                        | [www.ab                           |
| E-mail:                           | anka.si/](http://www.abanka.si/)\ |
|                                   | <info@abanka.si>                  |
+-----------------------------------+-----------------------------------+
| **UNICREDIT BANKA SLOVENIJA       | Šmartinska 140, 1000 Ljubljana\   |
| d.d.**                            | +386 1 587 66 00\                 |
|                                   | +386 1 587 66 84\                 |
| Address:\                         | <http://www.unicreditbank.si/>\   |
| Phone:\                           | <info@unicreditgroup.si>          |
| Fax:\                             |                                   |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **BANKA CELJE d.d.**              | Vodnikova 2, 3000 Celje\          |
|                                   | +386 3 422 10 00\                 |
| Address:\                         | +386 3 422 11 00\                 |
| Phone:\                           | <http://www.banka-celje.si/>\     |
| Fax:\                             | <info@banka-celje.si>             |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **NLB BANKA DOMŽALE d.d.**        | Ljubljanska 62, 1230 Domžale\     |
|                                   | +386 1 724 53 00\                 |
| Address:\                         | +386 1 721 68 21\                 |
| Phone:\                           | http:[//www.banka-domzale.si/\    |
| Fax:\                             | ](http://www.banka-do             |
| Internet:\                        | mzale.si/)<info@banka-domzale.si> |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **BANKA KOPER d.d.**              | Pristaniška 14, 6502 Koper\       |
|                                   | +386 5 666 11 00\                 |
| Address:\                         | +386 5 666 20 19\                 |
| Phone:\                           | <http://www.banka-koper.si/>\     |
| Fax:\                             | <info@banka-koper.si>             |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **BANKA SPARKASSE d.d.**          | Cesta v Kleče 15, 1000 Ljubljana\ |
|                                   | +386 1 583 66 66\                 |
| Address:\                         | +386 1  583 23 33\                |
| Phone:\                           | <http://www.sparkasse.si/>\       |
| Fax:\                             | <info@sparkasse.si/>              |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **NLB BANKA ZASAVJE d.d.**        | Trg revolucije 25 c, 1420         |
|                                   | Trbovlje\                         |
| Address:\                         | +386 3 562 62 33, +386 3 562 12   |
| Phone:\                           | 33\                               |
| Fax:\                             | +386 3 562 61 93\                 |
| Internet:\                        | <http://www.banka-zasavje.si/>\   |
| E-mail:                           | <info@banka-zasavje.si>           |
+-----------------------------------+-----------------------------------+
| **BAWAG BANKA d.d.**              | Tivolska cesta 30, 1000           |
|                                   | Ljubljana\                        |
| Address:\                         | +386 1 230 07 00\                 |
| Phone:\                           | +386 1 230 07 50\                 |
| Fax:\                             | [www                              |
| Internet:\                        | .bawag.si](http://www.bawag.si/)\ |
| E-mail:                           | <info@bawag.si>                   |
+-----------------------------------+-----------------------------------+
| **DEŽELNA BANKA SLOVENIJE d.d.**  | Kolodvorska 9, 1000 Ljubljana\    |
|                                   | +386 1 472 71 00\                 |
| Address:\                         | +386 1 472 74 05\                 |
| Phone:\                           | <http://www.dbs.si/>\             |
| Fax:\                             | <info@dbs.si>                     |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **FACTOR BANKA d.d.**             | Tivolska cesta 48, 1000           |
|                                   | Ljubljana\                        |
| Address:\                         | +386 1 230 66 00\                 |
| Phone:\                           | +386 1 230 77 60\                 |
| Fax:\                             | <http://www.factorb.si/>\         |
| Internet:\                        | <info@factorb.si>                 |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **GORENJSKA BANKA, d.d., KRANJ**  | Bleiweisova cesta 1, 4000 Kranj\  |
|                                   | +386 4 208 40 00\                 |
| Address:\                         | +386 4 202 15 03, +386 4 202 16   |
| Phone:\                           | 13 <http://www.gbkr.si/>\         |
| Fax:\                             | <info@gbkr.si>                    |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **HYPO ALPE-ADRIA-BANK d.d.**     | Dunajska cesta 117, 1000          |
|                                   | Ljubljana\                        |
| Address:\                         | +386 1 580 40 00\                 |
| Phone:\                           | +386 1 580 40 01\                 |
| Fax:\                             | <http://www.hypo-alpe-adria.si/>\ |
| Internet:\                        | <hypo-bank@hypo.si>               |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **NLB KOROŠKA BANKA d.d.**        | Glavni trg 30,  2380 Slovenj      |
|                                   | Gradec\                           |
| Address:\                         | +386 2 870 42 20\                 |
| Phone:\                           | +386 2 823 81 71\                 |
| Fax:\                             | <http://www.koroska-banka.si/>\   |
| Internet:\                        | <info@koroska-banka.si>           |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **NOVA KREDITNA BANKA MARIBOR     | Ulica Vita Kraigherja 4, 2505     |
| d.d.**                            | Maribor\                          |
|                                   | +386 2 229 22 90\                 |
| Address:\                         | +386 2 252 43 33, +386 2 252 43   |
| Phone:\                           | 71\                               |
| Fax:\                             | [http://www.nkbm.si\              |
| Internet:\                        | ](h                               |
| E-mail:                           | ttp://www.nkbm.si/)<info@nkbm.si> |
+-----------------------------------+-----------------------------------+
| **NOVA LJUBLJANSKA BANKA d.d.**   | Trg republike 2, 1520 Ljubljana\  |
|                                   | +386 1 425 01 55, +386 1 476 39   |
| Address:\                         | 00\                               |
| Phone:\                           | +386 1 252 24 22, +386 1 252 25   |
| Fax:\                             | 00 <http://www.nlb.si/>\          |
| Internet:\                        | <info@nlb.si>                     |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **POŠTNA BANKA SLOVENIJE d.d.** - | Ulica Vita Kraigherja 5,   2000   |
| bančna skupina Nove Kreditne      | Maribor\                          |
| banke Maribor d.d.                | +386 2 228 82 00\                 |
|                                   | +386 2 228 82 10\                 |
| Address:\                         | <http://www.pbs.si/>\             |
| Phone:\                           | <info@pbs.si>                     |
| Fax:\                             |                                   |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **PROBANKA d.d.**                 | Svetozarevska ulica 12,   2000    |
|                                   | Maribor\                          |
| Address:\                         | +386 2 252 05 00\                 |
| Phone:\                           | +386 2 252 05 78\                 |
| Fax:\                             | <http://www.probanka.si/>\        |
| Internet:\                        | <info@probanka.si>                |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **RAIFFEISEN KREKOVA BANKA d.d.** | Slomškov trg 18, 2000 Maribor\    |
|                                   | +386 2 229 31 00\                 |
| Address:\                         | +386 2 252 22 61, +386 2 252 35   |
| Phone:\                           | 02\                               |
| Fax:\                             | <http://www.r-kb.si/>\            |
| Internet:\                        | <info@r-kb.si>                    |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **SKB BANKA d.d. LJUBLJANA**      | Ajdovščina 4, 1513 Ljubljana\     |
|                                   | +386 1 433 21 32, +386 1 471 51   |
| **(SOCIETE GROUP)**               | 00\                               |
|                                   | +386 1 231 45 49\                 |
| Address:\                         | [http://www.skb.si/\              |
| Phone:\                           | ](ht                              |
| Fax:\                             | tp://www.skb.si/)<skb.net@skb.si> |
| Internet:\                        |                                   |
| E-mail:                           |                                   |
+-----------------------------------+-----------------------------------+
| **SID - SLOVENSKA IZVOZNA IN      | Ulica Josipine Turnograjske 6,    |
| RAZVOJNA BANKA, d.d., LJUBLJANA** | Ljubljana                         |
|                                   |                                   |
|                                   | +386 1 200 75 00                  |
|                                   |                                   |
| Address:\                         | +386 1 200 75 75                  |
| Phone:\                           |                                   |
| Fax:\                             | [http://                          |
| Internet:\                        | www.sid.si/](http://www.sib.si/)\ |
| E-mail:                           | [info@sid.si](mailto:sib@sib.si)  |
+-----------------------------------+-----------------------------------+
| **VOLKSBANK - LJUDSKA BANKA       | Dunajska cesta 128 a,   1101      |
| d.d.**                            | Ljubljana\                        |
|                                   | +386 1 530 74 00, +386 1 530 74   |
| Address:\                         | 02                                |
| Phone:\                           |                                   |
| Fax:\                             | +386 1 530 75 55\                 |
| Internet:\                        | <http://www.volksbank.si/>\       |
| E-mail:                           | <banka@volksbank.si>              |
+-----------------------------------+-----------------------------------+

Link to banks currently operating in Slovenia:
<http://www.bsi.si/en/banking-and-commercial-sector.asp?MapaId=668>

Bank holidays in Slovenia:
<http://www.zbs-giz.si/eng/banking_sector/banHol.htm>

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

Since January 1st, 2007, Slovenia is a part of the Euro zone. Doemstic
currency (Euro) is thus regulated through the Euroepan Central Bank.
(<http://www.ecb.int/home/html/index.en.html>)

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

Project financing is slowly developing as a form of financing of larger
scale construction projects. Many experts have discovered that Slovenia
is lagging significantly behind the EU average as far as project
financing of public infrastructure is concerned. Usually, public
infrastructure projects come with state financial guarantees to the
contractors, which is a partial reason for undeveloped project
financing. Another reason for this situation is lack of public private
partnerships (PPP), which often drive project financing in other
countries. Involvement of private capital in public infrastructure
projects in Slovenia is very rare.

Project financing for the private sector is somewhat more evolved.
Slovene banks offer project financing services for construction and
development projects. Under this program, the banks offer up to 70%
financing (30% of the project cost is usually required from the
investor's own sources). The banks also offer (in some cases demand)
advisory services pertaining to Slovene regulations on building and
sales of real estate as well as transfer of ownership of any mortgaged
real estate. For transparency reasons, banks often require investors to
establish a separate company and bank account that will manage the
project and through which all cash flows pertaining to the project are
funneled. As collateral, the bank usually requires a mortgage on the
real estate being developed.

EU financial assistance programs provide a wide array of grants, loans,
loan guarantees and co-financing for feasibility studies and
infrastructure projects in a number of key sectors (e.g., environmental,
transportation, energy, telecommunications, tourism, public health).
From a commercial perspective, these initiatives create significant
market opportunities for U.S. businesses, U.S.-based suppliers, and
subcontractors.

The EU supports projects within its Member States, as well as EU-wide
\"economic integration\" projects that cross both internal and external
EU borders. In addition, the EU provides assistance to accession
countries in Eastern and Southern Europe and Turkey, as well as some of
the former Soviet republics.

The European Union provides project financing through grants from the
European Commission and loans from the European Investment Bank. Grants
from the Structural Funds are distributed through the Member States'
national and regional authorities, and are only available for projects
in the 27 EU Member States. All grants for projects in non-EU countries
are managed through the EuropeAid Cooperation agency in conjunction with
various European Commission departments, called
\"Directorates-General.\"

*The CSEU Tenders Database*

The U.S. Commercial Service at the U.S. Mission to the European Union
offers a tool on its website to help U.S.-based companies identify
European public procurement opportunities. The database features all
current public procurement tenders issued by all national and regional
public authorities in the 27 Member States of the European Union, plus
four other European countries, and that are open to U.S.-based firms
under the terms of the Government Procurement Agreement (GPA)
implemented in 1995. The database is updated twice weekly and is easy to
use with a range of search options, including approximately 20 industry
sectors. The database also contains tenders for public procurement
contracts relating to structural funds. Readers may access the database
at <http://www.buyusa.gov/europeanunion/eu_tenders.html>.

*EU Structural Funds*

The EU Structural Funds, including the European Regional Development
Fund, were created in 1975 to assist economically depressed regions of
the European Union that required industrial restructuring. The EU
earmarked EUR 308 billion for projects under the Structural Funds and
the Cohesion Fund programs for the 2007-2013 period for the EU-27. In
addition to funding economic development projects proposed by Member
States or local authorities, EU Structural Funds also support
specialized projects promoting EU socioeconomic objectives. Member
States negotiate regional and "sectoral" programs with officials from
the regional policy Directorate-General at the European Commission. For
information on approved programs that will result in future project
proposals, please visit:
<http://ec.europa.eu/regional_policy/atlas2007/fiche_index_en.htm>.

For projects financed through the Structural Funds, Member State
officials are the key decision-makers. They assess the needs of their
country; investigate projects; evaluate bids; and award contracts. To
become familiar with available financial support programs in the Member
States, it is advisable for would-be contractors to meet with local
officials to discuss local needs.

Tenders issued by Member States' public contracting authorities for
projects supported by EU grants are subject to EU public procurement
legislation if they meet the EU minimum contract value requirement for
the eligible sector. Below this threshold, tender procedures are subject
to national procurement legislation. There are no overt prohibitions
against the participation of U.S. companies, either as developers or
concessionaires of projects supported partially by the Structural Funds,
or as bidders on subsequent public tenders related to such projects, but
it is advisable to team up with a local partner. All Structural Fund
projects are co-financed by national authorities and most may also
qualify for a loan from the European Investment Bank. The private sector
is also involved in project financing. For more information on these
programs, please see the market research section on the website of the
US Mission to the EU: <http://www.buyusa.gov/europeanunion/mrr.html>

*The Cohesion Fund*

The Cohesion Fund is another instrument of EU structural policy. Its EUR
61.5 billion (2007-2013) budget seeks to improve cohesion within the EU
by funding transport infrastructure and environmental projects in
Portugal, Spain, Greece and the twelve new (since 2004) EU Member States
from Central and Eastern Europe. These projects are generally
co-financed by national authorities, the European Investment Bank, and
the private sector.

Key Link: <http://ec.europa.eu/regional_policy/funds/cf/index_en.htm>

*The Trans-European Networks*

The European Union also provides financial support to the Trans-European
Networks (TENs) to develop infrastructure, strengthen cohesion and
increase employment across greater Europe. Launched at the Essen Counsel
(Germany) in 1994, the TENs are a series of transport,
telecommunications and energy projects that are continually being
expanded and upgraded. The TENs are largely financed by private sector
and non-EU sources. The EU does, however, provide grants from the
Cohesion Fund, loans from the European Investment Bank (and loan
guarantees from the European Investment Fund), and partial feasibility
study grants for the TENs. There are no overt EU restrictions on the
participation of U.S. firms in the TENs.

Key Link: <http://ec.europa.eu/ten/transport/index_en.htm>

*Other EU Grants for Member States*

Another set of sector-specific grants offers assistance to EU Member
States in the fields of science, technology, communications, energy,
environmental protection, education, training and research. Tenders
related to these grants are posted on the various websites of the
directorates-generals of the European Commission. Conditions for
participation are strict and participation is usually restricted to EU
firms or tied to EU content. Information pertaining to each of these
programs can be found on: <http://europa.eu.int/grants/index_en.htm>

*External Assistance Grants*

The EuropeAid Cooperation Office is the European Commission agency in
charge of managing the EU's external aid programs. This Agency is
responsible for the management of the entire project cycle, from
identification to evaluation, while the Directorates-General in charge
of External Relations and Development, are responsible for the drafting
of multi-annual programs. The EuropeAid website offers extensive
information on the range of grant programs, the kind of projects that
are eligible, as well as manuals to help interested parties understand
the relevant contract law. However, participation to calls for tender
for contracts financed by EuropeAid is reserved for enterprises located
in the EU Member States and require that the products used to respond to
these projects are manufactured in the EU or in the aid recipient
country. European subsidiaries of U.S. firms are eligible to participate
in these calls for tender.

Key Link: <http://europa.eu.int/comm/europeaid/index_en.htm>

All tenders related to EU-funded programs outside the territory of the
European Union (including the accession countries) are located on the
EuropeAid Cooperation Office website:
<http://europa.eu.int/comm/europeaid/tender/index_en.htm>.

*Loans from the European Investment Bank*

Headquartered in Luxembourg, the European Investment Bank (EIB) is the
financing arm of the European Union. Since its creation in 1958, the EIB
has been a key player in building Europe. As the EIB\'s lending
practices evolved over the years, it became highly competent in
assessing, reviewing and monitoring projects. As a non-profit banking
institution, the EIB offers cost-competitive, long-term lending in
Europe. Best known for its project financial and economic analysis, the
Bank makes loans to both private and public EU-based borrowers for
projects in all sectors of the economy, such as telecommunications,
transport, energy infrastructure and environment.

While the EIB mostly funds projects within the EU, it lends outside the
EU as well (e.g., in Central, Eastern and Southeastern Europe; Latin
America; and Pacific and Caribbean states). In 2006, the EIB approved
loans for projects worth EUR 53.3 billion, of which around 14% was lent
outside the EU. The EIB also plays a key role in supporting EU
enlargement with loans used to finance improvements in infrastructure,
research and industrial manufacturing to help those countries prepare
for eventual EU membership.

Projects financed by the EIB must contribute to the socioeconomic
objectives set out by the European Union, such as fostering the
development of less favored regions; improving European transport and
telecommunication infrastructure; protecting the environment; supporting
the activities of SMEs; assisting urban renewal; and, generally
promoting growth, competitiveness and employment in Europe. Last year,
the EIB created a list of projects to be considered for approval and
posted the list on its website. As such, the EIB website is a source of
intelligence on upcoming tenders related to EIB-financed projects:
<http://www.eib.org/projects/>.

The EIB presents attractive business opportunities to U.S. businesses.
EIB lending rates are lower than most other commercial rates. Like all
EIB customers, however, U.S. firms must apply the loan proceeds to a
project that contributes to the European objectives cited above.

The EIB's i2i (Innovation 2010 Initiative) is designed to highlight
projects that support innovative technology in the European Union, in
particular by financing broadband and multimedia networks; the physical
or virtual infrastructure providing local access to these networks; and
research and development infrastructures, especially in the less
developed regions of the European Union. i2i will also finance projects
to computerize schools and universities and to provide information
technology training in conjunction with public authorities.

Key Link:
<http://www.eib.org/Attachments/thematic/innovation_2010_initiative_en.pdf>

The US Mission to the European Union in Brussels has developed a
database to help US-based companies bid on EIB public procurement
contracts in non-EU countries in particular. The EIB-financed contracts
that are open to US-based companies are featured in this database. All
the tenders in this database are extracted from the EU's Official
Journal. The EIB database contains on average 50 to 100 tenders and is
updated twice per week.

Key Link: <http://www.buyusa.gov/europeanunion/eu_tenders.html>

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

[EU websites:]{.underline}

[\
]{.underline}EuropeAid Co-operation Office:
<http://europa.eu.int/comm/europeaid/index_en.htm>

EU Grants and Loans index: <http://ec.europa.eu/grants/index_en.htm>

The European Investment Bank: <http://www.eib.org/>

The EU regional policies, the EU Structural and Cohesion Funds:
<http://ec.europa.eu/regional_policy/index_en.htm>

[U.S. websites:]{.underline}

European Union Tenders Database:
<http://www.buyusa.gov/europeanunion/euopportunities.html>

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/)

[Return to table of contents](#section)

[[]{#ch8 .anchor}Return to table of contents](#section)

# 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-5)

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

During the period of socialism, the former Yugoslav federation was not a
fully integrated part of the Eastern bloc. It had a unique
\"self-management\" economic system where management decisions were made
at the firm level and frequently reflected market responsiveness. As a
result, Slovenian business managers are quite familiar with
market-based, Western-style economic philosophies and customs.

The management style in Slovenia tends to concentrate decision-making at
the senior levels. The delegation of authority in companies is
relatively poor. Thus, in principle, a negotiation should not be
considered concluded until confirmed by the general manager or a clearly
acknowledged decision maker. Slovenes place a premium on personal
contacts and correspondence, and visits play significant roles in the
conducting business. Clarity and continuity in communication are
important.

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

No travel advisories have been issued for Slovenia. More information on
travel to Slovenia is available at
<http://travel.state.gov/travel/cis_pa_tw/cis/cis_1020.html>.

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

Visas for U.S. citizens are not necessary for visits lasting less than
three months. A visa to remain in Slovenia for an extended period of
time must be applied for outside of the country. An entry visa for the
purpose of work, education, training, or other professional activity can
be obtained at any Slovenian Embassy or Consulate.

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/>

U.S. Embassy in Ljubljana, Visa Information:
<http://slovenia.usembassy.gov/visas2.html>

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

Slovenia has efficient postal and telephone services. Fax machines are
widely used. E-mail is widely available. Telephone calling card services
are not available in-country and long-distance charges tend to be high,
even by European standards. In many areas only pulse telephone lines are
available, though tone-dialing availability is increasing.

The dialing code for Slovenia is 386, followed by the appropriate area
code: Ljubljana (1), Maribor (2), Celje (3), Kranj (4), and Nova Gorica
(5). Codes for GSM mobile phones are 31, 40, 41, 51. When dialed within
Slovenia, the codes are 031, 040, 041, 051, and 070 followed by a
six-digit telephone number. To dial internationally from Slovenia, you
must dial 00 plus the country code.

Mobile telephony is widespread. Every business person has a mobile phone
and many companies also have a general (reception/information desk)
mobile number, because calling from a mobile phone to a stationary line
is substantially more expensive than calling mobile-to-mobile phone.

Directory assistance is 1188.

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

Ljubljana is easily accessible by air. Joze Pucnik Airport is an
international airport located 27 kilometers (approx. 17 miles) outside
of Ljubljana, the capital city. The airport is serviced by the national
carrier, Adria Airways (a Star Alliance member), as well as other
international airlines including Austria Airlines, CSA Czech Airlines,
JAT Airways, Malev, Air France, and EasyJet. (More info on Airport
Ljubljana at <http://www.lju-airport.si/eng/default.asp> )

There are other airports in the general vicinity of Slovenia. The
distance by car is listed in parentheses.

Graz, Austria (90 minutes to Maribor)

Venice, Italy (2.5 hours from Ljubljana)

Vienna, Austria (3 hours to Maribor)

Slovenia's transportation system is very good. Highways connect most
cities and numerous border crossings into neighboring countries are
easily accessible. Air travel within Slovenia is not available, but is
not necessary given the small size of the country. Rail is a popular and
convenient form of travel. Major cities in Slovenia have efficient
public transportation systems, relying mainly on buses and taxis.
Tokens, called zetons, used on buses can be purchased at newspaper
stands or post offices. Bus fares can also be paid in cash at a somewhat
higher rate. Taxi service is readily available at designated taxi stands
or can be requested by telephone.

On December 21, Slovenia joined the Schengen zone. Land border check
points with Austria, Italy and Hungary were removed. Slovenia will
implement Schengen for air travel in March 2008. With the entry into the
Schengen zone, the border control on the border with Croatia was
enhanced to accommodate "Schengen border control regulations".

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

The official language in Slovenia is Slovene, a southern Slavic language
with some resemblance to Croatian and Serbian. Slovene is written in the
standard Roman alphabet with a few additional letters. Most businessmen
in Slovenia speak at least one foreign language, English being the most
common. German is also useful in some parts of the country and Italian
is sometimes spoken in the Italian border area. When necessary,
translators can be hired at the Slovene Association of Conference
Interpreters (phone: +386(0)41-648-416, email: info@zdruzenje-kts.si)

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

There is no immunization or special health concerns related to Slovenia.

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

Local time is GMT + 1

Daylight savings time is between March 30 and October 26, 2008.

To check local time at this moment, click on
<http://www.buyusa.gov/slovenia/en/>

#### Slovenian Holidays in 2008

Jan 1 and 2 (Tues/Wed) - New Year's Day

Feb 8 (Fri) - Slovenian Cultural Day

March 23 and 24 (Sun/Mon) - Easter and Easter Monday

April 27 (Sun) - Resistance Day

May 1 and 2 (Thur/Fri) - Labor Day

Jun 25 (Wed) - Day of Slovene Sovereignty

Aug 15 (Fri) - Assumption Day

Oct 31 (Fri) - Reformation Day

Nov 1 (Sat) - All Saints' Day

Dec 25 (Thur) - Christmas Day

Dec 26 (Fri) - Independence Day

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

(Insert text here)

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

Slovene Tourist Board:
<http://www.slovenia.info/en/STO.htm?_ctg_about_sto=0&lng=2>

[Return to table of contents](#section)

[Return to table of contents](#section)

# 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)

U.S. and Country Contacts

**Embassy of the United States of America**

Ambassador (vacant) -- Maryruth Coleman, Charge d'Affaires

Grace Shelton, Political/Economic/Commercial Chief

Julianna Kim, Economic/Commercial Officer

Matjaz Kavcic, Senior Economic/Commercial Specialist

Spela Falatov, Economic/Commercial Specialist

Prešernova ulica 31, 1000 Ljubljana, Slovenia

Phone: +386-1-200-5500

Fax: +386-1-200-55-29, 200-5555

Web site: <http://slovenia.usembassy.gov/>;
http://[www.buyUSA.gov/slovenia/en](http://www.buyUSA.gov/slovenia/en)

**Multilateral Development Bank Operations**

**International Trade Administration**

U.S. Department of Commerce

Ronald Reagan Building, Mezzanine Level, Washington, DC20230

Phone: (202) 482-3399

Fax: (202) 482-3914

email:
[MDBO.banks@mail.doc.gov](http://www.mac.doc.gov/eebic/finangov/mldb.html)

**U.S. Department of Agriculture**

Foreign Agricultural Service

Trade Assistance and Promotion Office

Phone: (202) 720-7420

Web site: [www.fas.usda.gov](http://www.fas.usda.gov/)

Regional representative office (U.S. Embassy Vienna)

Quintin Gray, Agricultural Counselor

Phone: +43 (1) 313 39 2364

Fax: +43 (1) 310 8208

**U.S. Department of Commerce**

Cherie L. Rusnak, Desk Officer for Slovenia

Washington, D.C. 20230

Phone: (202) 482-5277

Fax: (202) 482-4505

Email: Cherie_Rusnak@ita.doc.gov

Business Associations

**American Chamber of Commerce in Slovenia**

Mr. Janez Moder, Secretary General

Pod hribom 55, 1000 Ljubljana, Slovenia

Phone: +386-1-581-6285

Fax: +386-1-581-6111

E-mail: <office@amcham.si>

**JAPTI -- Public Agency for Entrepreneurship and Foreign Investment**

Mr. Peter Jesovnik, Director

Dunajska 156, 1000 Ljubljana, Slovenia

Phone: +386-3-42-53-150

Fax: +386-3-42-51-180

Email: <zare.tomsic@japti.si>

Web site: <http://www.japti.si/index.php?root=4>

**Slovenian Chamber of Commerce and Industry**

Mr. Samo Hribar Milic, President

Dimičeva 13, 1000 Ljubljana, Slovenia

Phone: +386-1-5898-000

Fax: +386-1-5898-100

Email: <infolink@gzs.si>

Web site: [www.gzs.si](http://www.gzs.si/)

<http://www.gzs.si/eng/>

**Slovene Government**

**Bank of Slovenia**

Governor Marko Kranjec

Slovenska 35, 1000 Ljubljana, Slovenia

Phone: +386-1-471-9000

Fax: +386-1-251-5516

Web site: [www.bsi.si](http://www.bsi.si/)

**Embassy of the Republic of Slovenia in Washington D.C.**

H.E. Samuel Žbogar, Ambassador

2410 California Street, N.W.

Washington, D.C. 20008

Phone: (+) 1 202 667 5363

Fax: (+) 1 202 667 4563

E-mail: <vwa@gov.si>

Website: <http://washington.embassy.si/en>

**Institute for Macroeconomic Analysis and Development**

Dr. Bostjan Vasle, Director

Gregorčičeva 27, 1000 Ljubljana, Slovenia

Phone: +386-1-478-1012

Fax: +386-1-478-1070

Email: <gp.umar@gov.si>

Web site: <http://www.gov.si/zmar/aindex.php>

**Ljubljana Stock Exchange**

Dr. Marko Simoneti, President of the Management Board

Slovenska 56, 1000 Ljubljana, Slovenia

Phone: +386-1-471-0211

Fax: +386-1-471-0213

Web site:
<http://www.ljse.si/cgi-bin/jve.cgi?doc=1468&sid=fKNCD6E75CqX6FUi>

Email: <info@ljse.si>

**Ministry of Agriculture, Forestry and Food**

Minister Iztok Jarc

Dunajska 56-58, 1000 Ljubljana, Slovenia

Phone: +386-1-478-9102

Fax: +386-1-478-9013

Web: <http://www.mkgp.gov.si/index.php?id=576&L=1>

Phytosanitary Department

Mrs. Katarina Groznik, Department Head

Einspielerjeva 6, 1000 Ljubljana, Slovenia

Phone: +386 1 3094 379

Fax: +386 1 3094 335

Web: <http://www.furs.si/en/Index.asp>

Veterinary Administration

Dr. Vida Cadonic Spelic,. Chief Veterinary Officer

Dr. Simona Salamon, Deputy Chief Veterinary Officer

Parmova 53, 1000 Ljubljana

Phone: + 386 1 300 13 00, +386 1 300 13 15

Fax: +386 1 30 15 57

Web: <http://www.vurs.gov.si/>

Email: <vurs@gov.si>

**Ministry of Culture**

Mr. Vasko Simoniti , Minister

Maistrova 10, 1000 Ljubljana, Slovenia

Phone: +386-1-36-95-00

Fax: +386-1-36-95-01

Web site: <http://www.kultura.gov.si/>

Email: <gp.mk@gov.si>

**Ministry of Defense**

Mr. Karl Viktor Erjavec, Minister

Vojkova 55, 1000 Ljubljana, Slovenia

Phone: +386-1-471-22-11

Fax: +386-1-471-29-78

Web: <http://www.mors.si/?id=home&L=1>

Email: <glavna.pisarna@mors.si>

**Ministry of the Economy**

Mr. Andrej Vizjak, Minister

Kotnikova 5, 1000 Ljubljana, Slovenia

Phone: +386-1-400-3311

Fax: +386-1-400-1031

Web: <http://www.mg.gov.si/en/>

Email: gp.mg@gov.si

**Ministry of Education and Sport**

Dr. Milan Zver, Minister

Kotnikova 38, 1000 Ljubljana, Slovenia

Phone: +386-1-478-42-00

Fax: +386-1-478-43-29

Web: <http://www.mss.gov.si/index.php?id=55&L=1>

Email: gp.mss@gov.si

**Ministry of Higher Education, Science and Technology**

Mojca Kucler Dolinar, Minister

Trg OF 13, 1000 Ljubljana, Slovenia

Phone: +386-1-478-47-08

Fax: +386-1-478-47-23

Web: <http://www.mvzt.gov.si/index.php?id=94&L=1>

Email: <gp.mvzt@gov.si>

**Ministry of Environment and Spatial Planning**

Dr. Janez Podobnik, Minister

Dunajska 48, 1000 Ljubljana, Slovenia

Phone: +386-1-478-7400

Fax: +386-1-478-7422

Web: http://www.mop.gov.si/

Email: gp.mop@gov.si

**Ministry of Finance**

Dr. Andrej Bajuk, Minister

Zupančičeva 3, 1000 Ljubljana, Slovenia

Phone: +386-1-369-66-31

Fax: +386-1-369-66-59

Web site: <http://www.gov.si/mf/angl/index.htm>

Email: <gp.mf@gov.si>

**Ministry of Foreign Affairs**

Dr. Dimitrij Rupel, Minister

Zupančičeva 25, 1000 Ljubljana, Slovenia

Phone: +386-1-478-2000

Fax: +386-1-478-2341

Web site: <http://www.mzz.gov.si/index.php?id=6&L=2>

Email: info.mzz@gov.si

**Ministry of Health**

Zofija Mazej Kukovic, Minister

Štefanova 5, 1000 Ljubljana, Slovenia

Phone: +386-1-478-6001

Fax: +386-1-478-6058

Web: <http://www.mz.gov.si/index.php?id=670&L=1>

Email: <gp.mz@gov.si>

**Ministry of the Interior**

Mr. Dragutin Mate, Minister

Štefanova 2, 1000 Ljubljana, Slovenia

Phone: +386-1-432-51-25

Fax: +386-1-251-43-30

Web site: <http://www.mnz.gov.si/index.php?id=2049&L=1>

Email: gp.mnz@gov.si

**Ministry of Justice**

Dr. Lovro Šturm, Minister

Zupančičeva 3, 1000 Ljubljana, Slovenia

Phone: +386-1-369-52-00

Fax: +386-1-369-57-83

Web site: <http://www.mp.gov.si/index.php?id=717&L=1>

Email: gp.mp@gov.si

**Ministry of Labor, Family and Social Affairs**

Ms. Marjeta Cotman, Minister

Kotnikova 5, 1000 Ljubljana, Slovenia

Phone: +386-1-369-7700

Fax: +386-1-369-7832

Web: <http://www.mddsz.gov.si/>

Email: gp.mddsz@gov.si

**Ministry of Transport**

Mr. Radovan Zerjav, Minister

Langusova 4, 1000 Ljubljana

Phone: +386-1-478-8000

Fax: +386-1-478-8139

Web: http://www.mzp.gov.si/en/

Email: gp.mzp@gov.si

**National Customs Administration**

Mr. Rajko Skubic, Director General

Šmartinska 55, 1523 Ljubljana

Phone: +386-1-478-38-00

Fax: +386-1-478-39-00

Email: <carina@gov.si> (rajko.skubic@gov.si)

Web site: <http://carina.gov.si/index.htm>

**Office for Protection of Competition**

Mr. Jani Sorsak, Director

Kotnikova 28, 1000 Ljubljana, Slovenia

Phone: +386-1-478-3597

Fax: +386-1-478-3608

Web: <http://www.sigov.si/uvk/index_eng.php>

Email: uvk.mg@gov.si

**Office for Protection of Intellectual Property (SIPO)**

Dr. Biserka Strel, Director

Kotnikova 6, 1000 Ljubljana, Slovenia

Phone: +386-1-478-3154

Fax: +386-1-478-3110

Web: <http://www.uil-sipo.si/index.php?id=lang>

Email: <sipo@uil-sipo.si>

**Slovenian Export and Development Bank -- SID Bank**

Mr. Sibil Svilan, President

Ul. Josipine Turnograjske 6, 1000 Ljubljana, Slovenia

Phone: +386-1-200-75-00

Fax: +386-1-200-75-75

Web: http://www.sid.si/sidang.nsf

Email: info@sid.si

**Slovenian Institute for Standardization**

Mr. Bogdan Topič, Director

Smartinska 140, 1000 Ljubljana, Slovenia

Phone: +386-1-478-3013

Fax: +386-1-478-3094

Web: http://www.sist.si/eng/g1/g1.htm

Email: sist@sist.si

**Statistical Office of the Republic of Slovenia**

Ms. Irena Krizman, Director

Vožarski pot 12, 1000 Ljubljana, Slovenia

Phone: +386-1-241-5104

Fax: +386-1-241-5344

Web site:
[http://www.stat.si/eng/index.asp](http://www.stat.si/index.asp)

Email: <info.stat@gov.si>

**Audit/Accounting**

[PricewaterhouseCoopers d.d.]{.underline}

Mr. Francois Mattelaer, director

Parmova 53, 1000 Ljubljana, Slovenia

Phone: +386-1-4750-100

Fax: +386-1-4750-109

Web:
<http://www.pwcglobal.com/Extweb/home.nsf/docid/30715A716318F25080256E4A00587E3B>

[Deloitte & Touche revizija d.o.o.]{.underline} (audit company)

Mr. Yuri Sidorovich

Dunajska cesta 9, 1000 Ljubljana, Slovenia

Phone: +386-1-307-2800

Fax: +386-1-307-2900

Web:
[http://www.deloitte.com/dtt/home/0,1044,sid%253D10307,00.html](http://www.deloitte.com/dtt/home/0,1044,sid%253D10307,00.html )

[Deloitte & Touche svetovanje d.o.o.]{.underline} (consulting company)

Dunajska cesta 9, 1000 Ljubljana, Slovenia

Phone: +386-1-307-2800

Fax: +386-1-307-2900

Email: [pgrasek@deloitte.com](mailto:pgrasek@deloitte.com )

[KPMG Slovenija d.o.o]{.underline}. Audit and Tax Advisory Service

Mr. Marjan Mahnic

Zelezna cesta 8, 1000 Ljubljana, Slovenia

Phone: +386-1-420-11-60

Fax: +386-1-420-11-58

Email:
[kpmg.lj@kpmg.si](mailto:kpmg.lj@kpmg.si?subject=Poizvedba iz Rumenih Strani)

Web: <http://www.kpmg.si/index.thtml/>

## 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 only available to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

Companies that perform market research in Slovenia:

AC Nielsen d.o.o.

Cesta na Brdo 10a, 1000 Ljubljana, Slovenia

Phone: +386-1-242-7520

Fax: +386-1-242-7514

Web:
[http://www2.acnielsen.com/profile/profile_SI/index.php?landid=74](http://www.acnielsen.com/)

Email: <tina.kerstein@acnielsen.siol.net>

RM PLUS d.o.o.

Svetozarevska ulica 10/III.

2000 Maribor

Phone: +386 2 234 25 21

Fax: +386 2 252 37 83

Director: Žnuderl Branko

Web: [http://www.rmplus.si](http://www.rmplus.si/)

MIT Marketing

Mr. Marko Korač, President

Koseska cesta 8, 1000 Ljubljana

Phone: +386-1-92-35

Fax: +386-1-92-44

Web: <http://www.mit-marketing.si/>

FRONTAL, d.o.o. DRUŽBA ZA KOMUNIKACIJSKI MANAGEMENT

Plese 9A

9000 Murska Sobota

Phone: +386 2 530 82 02

Faks: +386 2 530 82 03

Director: Magdič Kristjan

Web: [http://www.frontal.si](http://www.frontal.si/)

CATI d.o.o.

Tržaška cesta 2

1000 Ljubljana

Phone: +386 1 241 00 72

Faks: +386 1 421 19 70

Director: Cvetko Uroš

Web: <http://www.cati.si/eng/index.html>

FIT MEDIA d.o.o.

Bežigrajska cesta 9

3000 Celje

Phone: +386 3 426 67 00

Fax: +386 3 426 67 02

Director: Volfand Jože

Web: <http://www.fitmedia.si/>

GFK GRAL - ITEO d.o.o.

Kotnikova ulica 28

1000 Ljubljana

Phone: +386 1 472 08 00

Fax: +386 1 472 08 34

Director: Tavčar Rudi

Web: <http://www.gfk.si/eng/index.php>

PRISTOP d.o.o., LJUBLJANA

Trubarjeva cesta 79

1000 Ljubljana

Phone: +386 1 239 12 00

Fax: +386 1 239 12 10

Director: Razpet Aleš

Web: [http://www.pristop.si](http://www.pristop.si/)

AGENCIJA NET d.o.o.

Stara cesta 23

1360 Vrhnika

Phone: +386 1 750 48 46

Fax: +386 1 750 54 73

Director: Zajc Tomaž

Web: [http://www.agencijanet.si](http://www.agencijanet.si/)

CONTEX NOVI d.o.o.

Blatnica 1

1236 Trzin

Phone: +386 1 530 46 30

Fax: +386 1 530 46 36

Director: Konstanjšek Tomo

KGK CELJE d.o.o.

Gosposka ulica 3/1

3000 Celje

Phone: +386 3 490 14 70

Fax: +386 3 490 14 70

Director: Klinar Bojan

MARKETING MANAGER Perko Slavko s.p.

Ulica Ane Galetove 4

1290 Grosuplje

Phone: +386 1 786 20 14

Fax: +386 1 786 20 14

Director: Perko Slavko

SEPIK Fajs Sonja s.p.

Orehovica 19

8310 Šentjernej

Phone: +386 7 307 10 88

Director: Fajs Sonja

SVETOVANJE Olenšek Vlado s.p.

Zavrh nad Dobrno 21D

3204 Dobrna

Phone: +386 3 577 89 57

Fax: +386 3 577 89 57

Director: Olenšek Vlado

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

For a listing of all fairs in 2008 in Slovenia, visit this web site
<http://www.gzs.si/sejmi/zadetki.asp?koda=MAT>

Fair grounds that organize trade shows:

Ljubljana Fair Grounds: <http://www.ljubljanafair.com/>

List of events: <http://www.ljubljanafair.com/fairs/>

Celje Fair grounds: <http://www.ce-sejem.si/index.php?cid=0_0_0&l=1>

List of events: <http://www.ce-sejem.si/show_sejmi.php?cid=1_2007&l=1>

Portoroz: <http://www.internautica.net/>

Gornja Ragdona: <http://www.pomurski-sejem.si/ang-kzs/kzs.htm>

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

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

[www.poslovniportal.si](http://www.poslovniportal.si/)

[Return to table of contents](#section)

[[]{#ch10 .anchor}Return to table of contents](#section)

# 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.

<http://buysusa.gov/slovenia>

[Return to table of contents](#section)

# 

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.

[^1]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^2]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^3]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^4]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^5]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^6]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^7]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^8]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^9]: Jan 2008 official exchange rate = US\$ 1.470/Euro

[^10]: Jan 2008 official exchange rate = \$1.470/Euro

[^11]: All USD amounts have been calculated at 0.680 Euro/\$.