Business opportunities
The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Luxembourg:
- Government offices are open between 8.00am-12.30pm, and 1.30pm-5.00pm, Monday to Friday.
- Banks are open between 9.00am-4.30pm, Monday to Friday. Some smaller branches may close from noon to 2.00pm.
- Private companies are open 8.00am-6.00pm, Monday to Friday.
- Shops are open between 9.00am-6.00pm,Tuesday to Saturday and Monday afternoon only. Small shops may close from noon to 2.00pm for lunch.
Business practices:
- The dress code for business is formal. A suit and tie is appropriate for men; conservative clothing for women. Some dining rooms and clubs demand formal dress.
- Reconfirm appointments in advance. Avoid business visits during the Christmas/New Year period, Easter, and July and August.
- Shake hands on arrival and departure.
- Exchange business cards if you are meeting for the first time.
- Find out in advance in which language the meeting will be conducted. If necessary have an interpreter on hand.
- If you are invited to your host’s home, take a small gift such as flowers or sweets. Dress smartly.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
As a member of the European Union (EU), Luxembourg applies the EU’s common customs tariff and all regulations affecting customs legislation, as well as the Common Agricultural Policy.
For goods imported into Luxembourg from other EU countries, no customs duties apply unless the goods contain components imported from outside the EU on which customs duties have not been paid in another EU country. Import duties are based on Cost Insurance Freight price paid for the goods. Value Added Tax is 15 per cent, currently the lowest in the EU.
Import licences are required for a limited number of items, mainly agricultural products. Special rules apply for imports of particular products and countries. The Ministry of Economic Affairs has further information, or contact your distributor.
Mail and parcel post shipments require postal documentation in place of bills of lading, and air cargo shipments require airway bills. The number of copies issued depends on the requirements of the importer and the airline. As a guide, follow IATA and/or International Civil Aviation Organisation regulations governing labelling and packing of dangerous and restricted goods.
The commercial invoice must be produced in triplicate. It must contain the following information:
- the date and place of shipment
- name/firm
- address of seller and buyer
- mode of transport
- number
- markings of the packages and their numerical order
- an exact description of goods (according to kind, quality, grade, and weight, both gross and net, in metric)
A commercial invoice containing the HTS code (Harmonised Tariff Schedule/Schedule B) is useful as it helps customs authorities classify it for customs purposes.
A pro-forma invoice, acceptable in lieu of a commercial invoice, should include a full description of and list the value of the goods.
To order bills are acceptable. Bills of lading should bear the name of the party to be notified. The consignee must have the original bill of lading to take possession of the goods. Express bills of lading are also acceptable.
Under EU regulations, certificates of origin may be required for stipulated goods, including goods subject to surveillance and/or quota requirements. Check with your importer.
Livestock, food, animal products, plants and plant products are subject to detailed regulations and controls. Imports must be accompanied by sanitary health certificates issued by the approved authority in the country of origin. This is usually done by The Australian Quarantine and Inspection Service (AQIS) and the Department of Agriculture, Fisheries and Forestry Australia (AFFA). The establishment number must be quoted on the certificate. Meat & Livestock Australia or the State Department of Agriculture will also provide advice to meat exporters.
Plants for propagation and some plant products require phytosanitary certificates issued by the approved authority in the country of origin. A certificate of origin is also required. Fruit and plants require phytosanitary certificates issued by the approved authority in the country of origin. Details can be obtained from AQIS PHYTO.
Labels should be in either French or German. Foodstuffs are subject to special labelling regulations. These labels must show the name of the manufacturer, composition, content (in metric) and country of origin. Check with your importer.
Certain products can only be sold if they conform to the appropriate EU directives and show a CE Mark. European manufacturers are increasingly requesting that suppliers be ISO 9000 registered.
For further information, contact the Department of Customs and Excise (Administration des Douanes et Accises) (in French only). Information on EU regulations is also available.
Taxation
Foreign investors in Luxembourg may qualify for personal income tax or corporation tax relief. Assistance is only applicable on tangible assets not including buildings, agricultural livestock, and mineral or fossil reserves made during the accounting year. The rate of tax relief on additional investments is 12 per cent.
In recent years, the government has abolished corporate capital gains tax, decreased personal income and reduced corporate tax to 30 per cent.
New companies producing new products may apply for tax relief, while investments made by existing companies may qualify for tax credits.
As a substantial percentage of national revenue is generated by small- and medium-sized companies the government is eager to attract such businesses and has introduced measures including enhanced tax breaks for new start-ups. The government plans to reduce company tax and remove administrative barriers to get rid of further red tape for small businesses.
Business travel
The national railways, Chemins de Fer Luxembourgeois (CFL), is fully integrated with the bus network. Reductions are offered for weekend and holiday return tickets. CFL rail services and CFL/CRL buses in Luxembourg are covered by the Benelux Tourrail rail pass which covers Belgium, the Netherlands and Luxembourg. This gives unlimited travel on any five days within a 30-day period throughout the year. The Luxembourg Card, valid for one-three days, allows unlimited travel on public transport. Single day tickets are also available.
The network of roads and highways in Luxembourg is excellent. Cars drive on the right. The wearing of seat belts is compulsory and drink/driving is heavily penalised. All major car rental companies are found in Luxembourg.
Taxis cannot be hailed in the street. There is a minimum charge and a 10 per cent surcharge is applied from 10.00pm-6.00am. Luxembourg City has an efficient public bus system. For the moment there is no underground railway or tram service. A 'short distance' ticket is valid for one hour (or for a maximum of 10 kilometres). Cross-country buses are punctual and operate between all major towns. For further details, contact the Automobile Club du Grand-Duché de Luxembourg.
Luxembourg’s airport, Findel, is well serviced by major airlines and there are direct flights connecting to destinations throughout Europe, the UK and North Africa. Information on flights and airport services is available from Luxair.
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