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