Policies and Norms of Austria for tourism industry

Institutional Framework & Policy

The main aim of the Austrian tourism policy is the promotion of the destination Austria and the economical growth of tourism. The section for tourism and leisure business of the ministry for economics and labour69 sees its main duties in the support of the optimal development of tourism and the long-term profitability of tourism. National policy towards a sustainable tourism was first formulated in the National Environmental Plan (NUP). This plan was a wide-ranging project, under the leadership if the ministry of environment, with the purpose to establish a frame and the guidelines for an environmental policy. It was the result of an extensive working process, which lasted three years. Seven working groups were installed .Five of them dealt with the relevant sectors (Industry and trade, Energy, Traffic and transport, Agriculture forestry and water, Tourism and recreation) and two working groups dealt with cross-sectoral issues (resource management and the consumer). The composition of the working groups was mainly influenced by the public administration and the legal representations of commerce, industry and agriculture. Environmental NGOs and representatives of the employees were also part of the process, but not to the same extent as the other institutions. In 2006, the Ministry commissioned a study 'Strategic Direction in Tourism by 2015' to the Austrian Institute of Economic Research. On the basis of this study the following main issues have been identified: Promoting/establishing a high-quality and all season tourism Internationalisation of origin markets Positioning of SME as networks and innovative co-operative and competitive entities and destinations Providing qualified employees for tourism In 2007, a coordination platform of all nine States and the Ministry has been established. It meets on a regular basis with the objective of assuring Austria as a long-term, sustainable tourism destination and to increase competitiveness of tourism industry.

The working group for tourism and recreation was relatively smaller compared to the other groups. There was neither a participant from an NGO nor from the trade union. There was only one representative from an enterprise, a ski-lift operator. The federal provinces mostly involved in tourism also did not participate in the working group. There was a high representation from the ministry of commerce (responsible for tourism issues) and from the ministry of the environment. Nevertheless, the working group set up a very detailed list of aims and principles: Intact nature Quality before quantity Principle of subsidiarity Secure the livelihood of local residents Professionalism Formulate and put forward alternative solutions Develop indicators to assess sustainability Sustainable product and service assessment Ecological criteria for public subsidies Consider ecological, economical and social capacities

The Austrian Constitution allocates responsibility for tourism to the 9 Federal Provinces the Federal Government is held accountable for the general economic policy, public transport, financing instruments and subsidies - all questions which are directly or indirectly related to tourism. The Federal Ministry of Economy, Family and Youth coordinate the tourism-related activities of the provincial governments and all other institutions concerned.

National level
It is responsible for: - Commercial law - Labour legislation: Working Time Act, Working Rest Act, Children and Youth employment Act, - Maternity Protection Act - Internal security - Fiscal system - Partly: environmental laws - Tourism funding - Tourism statistics: - International agreements of tourism-related matters.

 State level
It is responsible for: - Tourism laws and regulations - Partly: environmental laws and regulations - Regional/spatial planning - Infrastructural issues - Tourism funding on State level Regional and Community Level Development of regional and local marketing and promotion concepts by local Tourist Boards or Community Administrations have to comply with provincial and national tourism development plans.

Policies and Norms of India for import and export to the Austria Provisions regarding imports and exports 1. Compliance with Laws
Every exporter or importer shall comply with the provisions of FT (D&R) Act, the Rules and Orders made there-under, FTP and terms and conditions of any Authorisation granted to him. All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical specifications, environmental and safety norms as applicable to domestically produced goods. No import or export of rough diamonds shall be permitted unless accompanied by Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC (GJEPC). 2. Procedure DGFT may, specify procedure to be followed for an exporter or importer or by any licensing or any other competent authority for purpose of implementing provisions of FT (D&R) Act, the Rules and the Orders made there under and FTP. Such procedures shall be published by means of a Public Notice, and may, in like manner, be amended from time to time. 3. Exemption from Policy/ Procedure DGFT may pass such orders or grant such relaxation or relief, as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade. DGFT may, in public interest, exempt any person or class or category of persons from any provision of FTP or any procedure and may, while granting such exemption, impose such conditions as he may deem fit. 4. Restricted Goods Any goods, export or import of which is restricted under ITC(HS) may be exported or imported only in accordance with an Authorisation or in terms of a public notice issued in this regard. 5. Terms and Conditions of a licence / Certificate / Permission / Authorisation Every authorisation shall be valid for prescribed period of validity and shall contain such terms and conditions which are as under: (a) Quantity, description and value of goods; (b) Actual User condition; (c) Export obligation; (d) Value addition to be achieved; and (e) Minimum export / import price.

6. Penalty If an authorisation holder violates any condition of such authorisation or fails to fulfill export obligation, he shall be liable for action in accordance with FT (D&R) Act, the Rules and Orders made there under, FTP and any other law for time being in force. 7. State Trading Any goods, import or export of which is governed through exclusive or special privileges granted to STE(s), may be imported or exported by STE(s) as per conditions specified in ITC. (DGFT may, however, grant an authorisation to any other person to import or export any of these goods. Such STE(s) shall make any such purchases or sales involving imports or exports solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale in a non discriminatory manner and shall afford enterprises of other countries adequate opportunity, in accordance with customary business practices, to compete for participation in such purchases or sales. 8. Importer-Exporter Code (IEC) Number No export or import shall be made by any person without an IEC number unless specifically exempted. 9. Passenger Baggage Bonafide household goods and personal effects may be imported as part of passenger baggage as per limits, terms and conditions thereof in Baggage Rules notified by Ministry of Finance. Samples of such items that are otherwise freely importable under FTP may also be imported as part of passenger baggage without an authorisation. Exporters coming from abroad are also allowed to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage without an authorisation.
10. Grievance Redressal Committee (GRC)

In order to facilitate speedy redressal of grievances of trade and industry, a new grievance redressal mechanism has been put in place in the form of GRC by a Government resolution. The Government is committed to resolving all outstanding problems and disputes pertaining to past policy periods through GRC set up on 2.7.10.2004, for condoning delays, regularizing breaches by exporters in bonafide cases, resolving disputes over entitlements, granting extensions for utilization of authorisations.

 Promotional Measures
1. Market Access Initiative Under MAI scheme, financial assistance is provided for export promotion activities on focus country, focus product basis. Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Government, Indian Commercial Missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. A whole range of activities can be funded under MAI scheme. These include, amongst others, i. Market studies/surveys, ii. Setting up of showroom / warehouse, iii. Participation in international trade fairs, iv. Displays in International departmental stores, v. Publicity campaigns, vi. Brand promotion, vii. Reimbursement of registration charges for pharmaceuticals and expenses for carrying out clinical trials etc., in fulfillment of statutory requirements in the buyer country, viii. Testing charges for engineering products abroad. 2. Meeting expenses for statutory compliances in buyer country for Trade Related Matters DOC provides for reimbursement of charges/expenses for fulfilling statutory requirements in the buyer country, including registration charges for product registration for pharmaceuticals, bio-technology and agro-chemicals products on recommendation of EPCs. Financial assistance is also provided for contesting litigation(s) in the foreign country concerning restrictions/anti dumping duties etc. on particular product(s) of Indian origin, as provided under the Market Access Initiative (MAI) Scheme of DOC.

 Duty exemption and other schemes

1. Advance authorisation

An Advance authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed /utilized to obtain export product, may also be allowed. DGFT, by means of Public Notice, may exclude any product(s) from purview of Advance authorisation. 2. Free of Cost Supply by Foreign Buyer Facility of Advance authorisation shall also be available where some or all inputs are supplied free of cost to exporter by foreign buyer. In such cases, for calculation of value addition, notional value of free of cost inputs along with value of other duty free inputs shall be taken into consideration. 3. Duty free import authorization(DFIA) scheme DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product. DGFT, by means of Public Notice, may exclude any product(s) from purview of DFIA. This scheme is in force from 1st May, 2006. 4. Export against Supply by Foreign Buyer Where export orders are placed on nominated agencies/ status holder / exporters of three years standing having 55 an annual average turnover of Rs. Five crores during preceding three licensing years, foreign buyer may supply in advance and free of charge, gold / silver / platinum, alloys, findings and mountings of gold / silver / platinum for manufacture and export. Such supplies can also be in advance and may involve semi-finished jewellery including findings / mountings / components for repairs / re-make and export subject to minimum value addition of 1 0%. However, if so imported semi finished gold / silver /platinum jewellery is exported as studded jewellery, value addition of 15 % shall be achieved. In such cases of export, wastage of 2 % may be permitted. Exports may be made by nominated agencies directly or through their associates or by status holder / exporter. Import and Export of findings shall be on net to net basis.

Present trade barrier for Import or Export

Number of barriers to the export and import of goods have been established by governments. These barriers serve a number of purposes such as protecting industries, national employment levels, and improving trade balances. Austria and many other nations have made efforts to lower trade barriers, although many countries still have an intricate network of barriers that greatly impact the world export market. The two major classes of trade restrictions are tariff and nontariff. In tariffs are duties imposed on goods leaving or coming into the country. Among other uses, tariffs are used to penalize other countries for trade or political actions. And second is nontariff barriers include quotas, taxes, and exchange rate controls. These can be broken down into six major categories that include specific trade limitations, customs and administrative entry restrictions, standards, government participation, import charges, and miscellaneous categories. Many governments offer various world export initiatives to encourage free trade. The General Agreement on Tariffs and Trade (GATT), which was signed by the United States and the majority of developed and developing countries, calls for a decrease of both tariff and nontariff barriers worldwide. Other important developments include the North American Free Trade Agreement of 1993, and the European Union's gradual evolution toward economic unity. These agreements significantly reduce trade barriers within the affected regions. In the United States, most governments support specific industries or companies through financial aid, lower tax rates, loans, and grants. 1. Tariffs and other Charges on Imports Indias import regime is characterized by pronounced disparities in bound versus applied rates. According to the WTO, Indias average bound rate tariff is 48.6 percent, while its applied tariff forFY2007 (latest data available) was 14.5 percent across all goods. Over the past several years, the government has steadily reduced MFN tariffs applied to nonagricultural goods, including a reduction in the applied duty on most industrial products from 15 percent in FY2005-06, to 12.5 percent in FY2006-07, and to 10 percent in FY200708. 2. Import Licensing India maintains a negative import list of products subject to various forms of nontariff regulation. The negative list is currently divided into three categories: banned or prohibited items (e.g., tallow, fat, and oils of animal origin); restricted items that require an import license (e.g., livestock products, certain chemicals); and "canalized" items (e.g., petroleum products, some pharmaceuticals, and bulk grains) importable only by government trading monopolies subject to cabinet approval regarding timing and quantity. India, however fails to observe customary transparency requirements, such as publication of information in the Official Gazette or notification to WTO Committees and in practice, these requirements act as a barrier to trade.