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Country Commercial Guides for FY 2000: Slovenia Report prepared by U.S. Embassy Ljubljana, Released July, 1999 Note*

Chapter VI Trade Regulations and Standards

Trade Barriers, Including Tariffs, Non-Tariff Barriers, and Import Taxes

Slovenia has a relatively open trade regime, reflecting a view in officialdom of the importance of trade in overall economic liberalization and competitiveness. As of 1997, the weighted average tariff rate applied to most-favored nations (MFN) was 10.7 percent. In addition, Slovenia has concluded a number of new free trade agreements and further liberalization has occurred, notably that related to the Association Agreement with the EU. The effective rate of protection is calculated to be 3 percent -- down from 36 percent prior to liberalization.

In 1999, Slovenia adopted a temporary change in its trade regime permitting it to reduce its MFN tariff rate in step with its bilateral tariff reduction vis-a-vis the EU. The government intends to make such stepwise reductions a permanent feature, culminating with the wholesale adoption of the EU's Common External Tariff (CXT) upon EU accession. The effect of this measure will be to limit the disadvantages third country (including U.S.) exporters will face selling into the Slovenian market in advance of EU accession, as well as to limit disruption to individual sectors a discontinuous adjustment to the CXT would cause.

Customs rates are generally defined by law according to the following categories: 0-5 percent for raw materials; 5-10 percent for semi-finished products; 8-15 percent for equipment; and 15-27 percent for finished products or consumer goods. Import levies are payable upon the importation of most agricultural and food products. Levies are not charged if the agricultural or food product is exempt from duties pursuant to the Customs Law. These levies are also not payable on imports of products from countries with which Slovenia has signed bilateral trade agreements.

Customs Valuation

The primary basis for customs valuation is ad valorum on the transaction value of the goods, i.e., the price paid or the price that is to be paid for the goods to be imported, including all duties and taxes paid outside Slovenia.

Import Licenses

Ninety-eight percent of imports are free of quantitative restrictions. A few categories of goods are restricted by import quotas, and in some sectors importation is restricted by permits or licenses;

o Textiles and textile products are imported through a quota system;

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

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

Export Controls

Most technology can be exported from the United States to Slovenia under general export licenses. Some equipment still requires validated export licenses from the Bureau of Export Administration and/or Department of State.

Slovenia levies a special export tax on the export of strategic raw materials -- 10-20 percent on lumber, timber, and scrap raw materials.

Import/Export Documentation

A Slovene importer/exporter is responsible for providing the required import/export documentation, which consists of common trade, transport and customs documents, as well as certificates required for quality control and licenses where appropriate. For foods, a phyto-sanitary certificate or veterinary certificate as well as ecological control may be required. The Ministry of Agriculture and Forestry and the Ministry of Health are responsible for the control of food products.

Temporary Entry

Slovenia is a signatory to the ATA Convention on Temporary Imports and Exports. Products may be imported into Slovenia on a temporary basis and be totally exempted from customs duties in various cases, of which most important are the following:

o Goods to be released into free circulation exempted from customs duty under the Customs Act;

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

o Animals, instruments, requisites and other items required for artistic, sports, or other events and the production of motion pictures;

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

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

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

o Yachts, sailing ships, and other sea vessels with accessory floating moorings and anchoring equipment, if they are used for sport and tourism, on condition that they are temporarily imported by companies or individual entrepreneur registered for rental of foreign yachts, sailing ships, and other sea vessels on the basis of contracts concluded with foreign sport clubs and their associations, permitting them to rent them to foreign tourists, members of these clubs, and their associations for use in Slovenia;

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

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

The time limits for temporary imports are established on the basis of the purpose for which goods are temporarily imported, but may not exceed a period of 12 months.

Labeling, Marking Requirements

The following labeling information must be in Slovenian on the original package of products that are subject to quality control: title of the product; full address of the importer; net quantity/weight/volume; as well as information, where applicable, regarding ingredients; use and storage instructions; and other warnings important for the customer. Technically complicated products also have instructions for use, the manufacturer's specifications, a list of authorized maintenance offices, warrant, and other applicable data. All this information must be in Slovene and attached to each product before reaching customers.

A form ("FORM A") is issued by the Chamber of Economy to prove the Slovenian origin of goods for preferential treatment of goods according to preference schemes. Certificates of the Slovenian origin of goods issued by customs authorities and a declaration given by the exporter on an invoice (i.e., an invoice declaration) are used to assert preferential customs treatment.

Prohibited Imports

None.

Standards

The Standardization Act provides for a new approach to the determination of the legal nature of standards and technical regulations. According to this Act, standards do not become a binding requirement unless so designated by a competent ministry. Slovenia intends to harmonize its standards regime with European Union legislation. Free movement of goods will be ensured by the introduction of comparable procedures for evaluation of conformity, conditions for mutual recognition of documentation, and prevention of double testing and certification. For the time being, Slovenia still applies regulations (except regulations on compulsory standards) on the basis of the former federal (Yugoslav) Standardization Act.

Goods and services imported for sale in Slovenia typically must comply with prescribed standards and technical regulations and be certified. Certification is usually carried out by an authorized institution. Where there is no authorized institution for the certification, the Standards and Metrology Institute of the Republic of Slovenia will issue a certificate. Certificates issued abroad are valid in Slovenia if the issuing authority and the local issuing institution have signed an agreement on the mutual recognition of certificates. A health, veterinary, phytosanitary, or ecological control is obligatory for individual types of products such as foodstuffs and animals.

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

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

Information on particular Slovenian standards and about products that have to be certified can be obtained from the Slovenian Standards and Meteorology Institute (phone: 386/61/1312322; fax: 386/61/314882).

Free Trade Zones/Warehouses

Free trade zones (FTZs) are part of Slovenia's customs zones. Slovenia's FTZs are located in Celje, Ljubljana, Maribor, Nova Gorica, Sezana, and Koper.

According to the Free Trade Zones Act, from May 1998, FTZs may be used by domestic and foreign entities. The applicant to use a FTZ shall meet the following requirements: at least 51 percent of the turnover in the FTZ must be generated by the export of goods manufactured and services performed in the FTZ; activities in the FTZ shall be a new line of business for the company; the total number of company's employees must be increased by doing business in the FTZ; persons founding a new company or a new branch office in the FTZ must have paid all taxes and customs duties.

The following activities may be performed in an FTZ: production and service activities; wholesale; banking and other financial services; insurance and reinsurance of persons and property; as well as retail for other users in FTZs. Goods can be moved free of restrictions into FTZs and may be stored there for an unlimited duration. Goods brought into FTZs are duty-free. Goods or products of these goods can then be exported duty-free. The goods or products of these goods can also be imported into Slovenia. In such case, customs or other duties are normally payable on the importation of goods to Slovenia, as are storage costs and costs of other procedures concerned with the goods' processing in the FTZ and which are not part of the customs base.

Equipment intended for carrying out activities in FTZs as well as spare parts, tools, and accessories for the equipment are exempt from customs duties for as long as they remain in the FTZ. (This does not hold for office furniture, office equipment, and other administrative facilities, and motor vehicles that are not intended for exclusive use in FTZ.) Sales tax is not charged on equipment and raw materials entering FTZs on the condition that the equipment or materials are used for the production of goods for export.

Profit tax amounts to 10 percent. A tax deduction in the amount of 50 percent of the invested sum is offered for investments in tangible assets in the FTZ. The taxable income of companies in the zone shall be reduced by the amount equal to 50 percent of salaries paid to the trainees and other staff who have been registered as unemployed for at least six months.

Special Import Provisions

None.

Membership in Free Trade Arrangements

Slovenia acceded to the General Agreement on Tariffs and Trade (GATT) in September 1994 and was a founding member of the World Trade Organization (WTO). In January, 1996, Slovenia became a member of the Central European Free Trade Agreement (CEFTA) and assumed the CEFTA presidency in 1997. On June 10, 1996, Slovenia signed an Association Agreement with the European Union. Slovenia also has entered into free trade agreements with the following: European Free Trade Agreement (EFTA); Croatia, Israel, Liechtenstein, Lithuania, Latvia, Estonia, Bulgaria, FYR Macedonia, Romania, Ukraine and Turkey.