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Country Commercial Guides
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CHAPTER VI. TRADE REGULATIONS, CUSTOMS, AND STANDARDSA. Trade Barriers, including Tariff and Non-Tariff Barriers
When Austria became a member of the EU on January 1, 1995, about two-thirds of existing tariffs were lowered or eliminated, while about one-third was raised. U.S. exports of chemicals, plastics, computers, photographic equipment, semiconductors, and integrated circuits were affected adversely by Austria's accession to the EU. The EU's common agricultural policy (CAP) also has had a negative impact on exports of U.S. agricultural products to Austria. Import duties for key U.S. agricultural products, such as tobacco and rice, rose considerably.
In general, there are no non-tariff barriers for U.S. companies entering the Austrian market. Nevertheless, some U.S. pharmaceutical companies have complained about restricted access to the Austrian market. A U.S firm seeking to market a drug in Austria must first obtain the approval by the Austrian Social Insurance Holding Organization (Hauptverband der Oesterreichischen Sozialversicherungstraeger). According to critics, the non-transparent procedures by which the Hauptverband approves drugs for reimbursement under Austrian health insurance regulations has perpetuated a closed market system favoring established suppliers. Pharmaceuticals not approved by the Hauptverband have higher out-of pocket costs for Austrian patients and therefore suffer a competitive disadvantage vis-à-vis approved products.
Over half of all products from non-EU countries enter without any tariff. The average EU tariff level for manufactured goods is relatively low at 3.5%, but some goods are taxed at a higher rate. For example, passenger cars and office machines are dutiable at about 10%. For certain kinds of shoes and special motor vehicles, the rate may be up to 18%.
Some goods are subject to tariff quotas, whereby after a certain quantity of the good has entered the EU at a low or zero duty rate, the rate is increased. These are primarily goods determined to be useful to the European economy only in certain quantities, generally raw materials or parts. The most important tariff quotas for manufactured goods are on chemicals and electronics. Both are administered on a first-come, first-served licensing basis. The Austrian importer can get information about the extent to which the quota has been filled through the Customs Office Suben, which has an on-line connection to Brussels, as well as through the Main Customs Offices (Hauptzollaemter) of the Ministry of Finance.
B. Customs Regulations and Tariff Rates
The Austrian customs regime is based on the "TARIC" (integrated tariff of the EU), determined in Brussels.
C. Import Taxes including Value Added Taxes
When a delivery is made to Austria, the products become liable to the import value-added tax (Einfuhrumsatzsteuer) upon entry in the Austrian customs area. The import value-added tax is assessed according to the customs value of imported goods. The importer is entitled to claim a refund of the import value-added tax from the tax office once the product is sold further in the distribution chain.
Finally, the end-user is liable to the Value Added Tax (VAT) which generally amounts to 20% in Austria. For food products the VAT is 10% only. Alcoholic beverages fall into the 20% VAT category.
The rates for the import value-added tax and the VAT are identical. The VAT is a pure tax on transactions, that solely affects the end-user and thus has no effect on the cost of transactions between businesses. In short, VAT has a purely transitory character.
D. Import License Requirements
The European Union, and therefore Austria, requires import licenses for a number of products, first and foremost for agricultural produce and products. This holds for all originating countries, including the United States. Special rules apply for imports of particular products and countries, such as shoes from the PRC. European Union import quotas are managed through the granting of import licenses to qualified firms. In general, an Austrian importer must possess an export license from the supplier country, and then obtain permission to import from the Austrian authorities (Einfuhrbewilligung). For imports of agricultural products, importers should contact Agrar Markt Austria (AMA), Dresdner Strasse 70, A-1201 Vienna, Tel: (43 1) 331 51-0. The licensing authority for most other goods is the Austrian Ministry of Economic Affairs, Landstrasser Hauptstrasse 55-57, A-1030 Vienna, Tel: (43 1) 711 02-0 (different offices depending on the product).
The import of war materiel requires a license and individual approval of each shipment. The licensing authority responsible for these products is the Austrian Ministry of the Interior (see Appendix E for contact information).
E. Temporary Goods Entry Requirements
There are no tariffs imposed on goods that enter Austria on a temporary basis for a particular purpose, such as transit goods or goods intended for demonstration or exhibition at trade fairs. A security deposit is required.
In the case of a commodity that is imported on a temporary basis to be used and returned (such as machinery), a compensatory levy of 3% per month applies if the commodity would be dutiable if imported permanently into Austria.
F. Special Import/Export Requirements
Austria complies with the special import provisions administered by the EU, including the Generalized System of Preferences, the Multi-Fiber Arrangement, as well as cooperation and association agreements with most Central and Eastern European countries.
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 (such as proof of country of origin) must be included. Where a tariff applies, the duty is collected immediately or, in cases where deferred payment can be made (such as import through a forwarding agency), is payable by the 15th of the following month.
Austrian exporters are required to report intended transactions to the Export Customs Authority if the value of the goods exceeds ATS 40,000. Most goods require no special permission for export (the exception pertains to strategic items). The content of the shipment is verified at an external border of the EU.
G. Labeling Requirements
Austrian labeling and marking requirements are in some respects not as strict as those in the United States. Nutritional information is not required on food products, nor are safety warnings mandated on electrical devices. The most important requirements include washing instructions on textiles, and certification of safety (the CE mark) on machines, toys, and baby accessories. It is not required that labeling be in German, though this may be advisable for marketing reasons.
Efforts are underway to harmonize EU labeling and marking requirements along with quality and safety standards. Ultimately, a CE mark will be required for most U.S. manufactured imports. Until that time, the regulations are a frustrating mix of national, EU, and international requirements.
Products that are inadequately labeled are not turned away at the border. The person importing the product bears the responsibility to ensure products are certified and properly marked before they are offered for sale. There is no special procedure required for importers claiming non-marked products at the border. In the future, a form will be required, enabling the product to be traced.
H. Prohibited Imports
The import of certain commodities into Austria is prohibited, usually the result of international sanctions and the like. A variety of goods and commodities are subject to import (and export) restrictions to protect the safety and lives of humans, animals and plants, safeguard national security, or to protect artistic, cultural or intellectual property. Examples would be restrictions on the import of food stuffs, wines, drugs, pharmaceuticals, seeds, war materiel, antiques, etc.
I. Warranty and Non-Warranty Repairs
If replacement parts for warranty or non-warranty repairs of a product are brought into Austria on a temporarily base and the products are re-exported after repair, no duties and taxes will be charged for this transaction. This would be handled by a carnet in the so-called excise bond procedure.
J. Export Controls
Austria is a member of key multilateral export control and non-proliferation arrangements including the Wassenaar Arrangement. The scope of Austrian export control regulations is not as inclusive as U.S. regulations, but the export of nuclear, biological and chemical goods, items and technologies, as well as dual-use items, is regulated by law.
In accordance with EU regulations, the export and re-export of goods to states under sanctions requires a special export license issued by the Austrian Ministry of Economic Affairs.
The export or transit of goods on the Wassenaar ammunition list requires a license from the Austrian Ministry of Economic Affairs. War materiel for export or transit is subject to a license by the Austrian Ministry of the Interior.
Contact person for further questions:
Dr. Helmut Krehlik
Austrian Ministry of Economic Affairs
Landstrasse Hauptstrasse 55-59
1030 Vienna, Austria
Tel.: (43 1) 711 02 345
Fax: (43 1) 715 83 47K. Standards
Austria is a signatory to the WTO (GATT) Agreement on Product Standards. As a member of the European Union, Austria is obligated to adopt European standards. While some European standards are already legally binding, others may still be in a transition phase, and still others may be awaiting national implementation. In the absence of a European standard, the national standard will apply.
National Standards: Austrian national standards are prepared and administered by the Austrian Bureau of Standards (Oesterreichisches Normungsinstitut -- ON), 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. The ON can also provide information on non-governmental standards.
Oesterreichisches Normungsinstitut (ON)
(Austrian Bureau of Standards)
Heinestrasse 38, Postfach 130
A-1021 Vienna, Austria
Tel: (43 1) 213 00-613
Fax: (43 1) 213 00-650The 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.
About 90% of the standards ON prepares are voluntary. The ISO 9000 series of quality management standards is one of the most important voluntary standards in Austria, and has become almost a requirement in many industries.
The ON also produces an annual catalogue of its standards, the ON-KATALOG, which is a compilation of all standards currently applied in Austria. A monthly magazine, CONNEX, provides information on the latest changes in national, European and international standards. ON InfoPoint is a commercial information service which will provide clients with updates on standards and technical regulations in Austria and abroad. Contact ON directly to access any of these publications or services.
EU Standards and Harmonization: The harmonization of standards requirements for the entire EU is being tackled on a product-by-product basis. In each case, full implementation follows only after a transition period. Until the United States and the EU ratify an agreement on mutual recognition of safety certification for a particular product area (i.e., a product needs to be tested just once before being marketed on either side of the Atlantic), most American products sold in the EU will require the "CE" mark (the certification that a product has met EU safety and quality standards) once all directives have been passed and all transition periods have expired. Austrian consumers look for these marks the same way Americans look for the "UL" mark.
The current mix of national and EU standards requirements can be frustrating for the U.S. exporter. Those products for which an EU directive has been issued are subject to EU standards requirements, that supersede any national requirements. Manufactured goods falling under an EU directive must be tested and certified, and carry the "CE" mark in those countries in which the transition period has expired. Those products for which no directive has been issued continue to be subject to national requirements. Assistance in determining which standards apply to particular products designated for export is available at CS Vienna.
Both EU requirements and the standards for an Austrian quality or performance mark will often 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.
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) 482-2155Inquiries regarding technical trade barriers should be directed to the Federal Ministry of Economics:
Bundesministerium fuer wirtschaftliche Angelegenheiten
(Austrian Federal Economic Ministry)
Abteilung 1/5
Stubenring 1
A-1011 Vienna, Austria
Tel.: (43 1) 711 00-5452
Fax: (43 1) 713 79 95U.S. contacts for foreign standards information:
National Institute of Standards and
Verification of Information
Building 820, Room 164
Gaithersburg, MD 20899
Phone: (301) 975-4040
Fax.: (301) 926-1559Ms. Kathryn Novelli
DAUSTR for Europe and Mediterranean
Office of the U.S. Trade Representative
600 17th Street, NW, Room 323
Washington, D.C. 20508
Phone: (202) 395-3320
Fax.: (202) 395-3974American National Standards Institute
11 West 42nd Street
13th Floor
New York, NY 10036
Phone: (212) 642-4900
Fax: (212) 302-1286L. 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. They are a convenient way to temporarily store transit goods without having to pay customs duties. They play little role in sales into Austria.
M. 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 all EU trade agreements, including:
- Association agreements (Europe agreements) involving political and economic elements in addition to tariff reductions. Agreements are in place with Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia. Association agreements have been signed with the Baltic states and Slovenia.
- Free trade agreements primarily involving reductions in tariffs. Agreements are in place with Estonia, Latvia, and Lithuania.
- Cooperation agreements concentrating on increasing trade and cooperation, in place with Belarus, Kazakhstan, Kyrgystan, Moldova, Russia, and Ukraine.
In addition, there are trade agreements in place with Cyprus, Malta, and Israel; a customs union agreement with Turkey; and agreements have been negotiated with Morocco, Tunisia, Egypt and Syria. The EU extends customs preferences to many African and Caribbean states.
N. Customs Contact Information
Hauptzollamt Wien (Central Customs Office-Vienna)
Zolldokumentationsstelle
Schnirchgasse 9
A-1030 Vienna, Austria
Tel.: (43 1) 795 90 3200
Fax: (43 1) 795 90 2399
E-mail: N/A
Web address: www.bmf.gv.at
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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