FREQUENTLY
ASKED QUESTIONS |
- How do I begin an export business?
- Are there sources of legal assistance
for businesses that are new to exporting?
- I'm part of a manufacturing small and
medium-sized enterprise and want some help strengthening our competitiveness
and increasing our profits. Can the government provide any assistance?
- How can I get information on importing
products into the United States?
- What is a Harmonized System number?
- What's the difference between the Schedule
B codes (for exports) and the Harmonized Tariff Schedule (HTS) codes
?
- Why do I need a Harmonized System/Schedule
B Number?
- How do I determine my HS or Schedule
B Number?
- What is a commercial invoice?
- Is there a standard form for a commercial
invoice?
- What type of duties and taxes can
I expect to pay for exports to Central/Eastern European countries?
- What is the VAT tax?
- Do I need an export license to ship
my product to a particular market? How do I get a license?
- What are the guidelines for Certificates
of Origin?
- What signatures are required on
a Certificate of Origin form?
- Where can I obtain a copy of the
Certificate of Origin form?
- What type of shipments require a
Shipper's Export Declaration?
- Where can I obtain Shipper's Export
Declaration (SED) forms?
- Does the U.S. federal government
have any programs to help advertise my products overseas?
- As a U.S. exporter or service provider,
how can I establish U.S. contacts to conduct business globally?
- Where can I find a list of foreign
companies in a particular industry or sector?
- Where can I find a list of American
manufacturers and companies?
- Where can I find a list of U.S. firms
operating in CEE?
- How do I find information about a
particular overseas company?
- What are Incoterms?
- What is an Air Waybill and Bill
of Lading?
- Where can I find information about
travel conditions in CEE and whether I need a visa to travel to CEE
countries?
- As a businessperson, how can I get
funding to travel to CEE to explore opportunities?
- I work for a NGO, trade association,
or trade multiplier. Are there any U.S. government funds to help me
provide assistance to my clients?
- Where can I find trade and investment
statistics on CEE countries?
- Where can I find information about
trade sanctions?
- What are the average wages for manufacturing
and nonagricultural employees in CEE?
If you have not already established
a business: First use the nationwide network of business development
centers established by the Small Business Administration to assist
beginning entrepreneurs with the fundamentals. To locate the Small
Business Development Center (SBDC) near you, call 1-800-U-ASK-SBA.
The Small Business Administration also has a web page at http://www.sba.gov
This site covers a range of topics including how to get started,
developing a business plan, and sources of financing.
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There is a
list of attorneys in Central and Eastern Europe available on the
CEEBIC website at: http://www.mac.doc.gov/ceebic/attorneys.htm.
In addition, the U.S. Small Business Administration International
Trade Program sponsors the Export Legal Assistance Network (ELAN)
program. Under the ELAN program, international trade attorneys
from the Federal Bar Association provide free initial consultations
to small businesses interested in starting export operations.
For more information about the ELAN program, see the website:
http://www.fita.org/elan/
or call the Small Business Answer Desk at 1-800-8-ASK-SBA.
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The Manufacturing
Extension Partnership (MEP) consists of a nationwide network of
manufacturing experts ready to help small manufacturers improve
their productivity, strengthen their competitiveness and increase
their profits. Please visit MEP's website at http://www.mep.nist.gov/
for more information.
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The U.S. Government does not offer
import promotion programs such as those available to U.S. exporters.
However, there are alternative sources of information:
For information on the procedures
to import products into the United States, the publication Importing
into the United States: A Guide for Commercial Importers may be
ordered from the Government Printing Office (GPO). The publication
(stock number 048-002-00132-0) may be ordered by contacting GPO
at 202-512-1800 or through the GPO online bookstore: http://www.access.gpo.gov/su_docs/sale.html
Importing into the United States: A Guide for Commercial Importers,
is also located online at: http://www.cbp.gov/nafta/cgov/pdf/iius.pdf.
Foreign governments help their firms
export to the United States, so you may want contact the commercial
officer or the trade attaché of the country from which you would
like to purchase goods. A list of foreign embassies or trade offices
in the United States is available from the Central and Eastern
Europe Business Information Center's web site at: http://www.mac.doc.gov/eebic/ceebic.html
Follow the link for "Key Contacts " and then the link for "Central
and Eastern European Embassies"
To obtain U.S. tariff rates for
specific imported products, to check on regulations such as import
quotas, or for general import information, contact your local
Customs Service office. To locate the Customs office near you,
please refer to the U.S. Customs website at: http://www.cbp.gov/xp/cgov/toolbox/contacts/cmcs/.
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The Harmonized Tariff System (HTS)
is a universal classification system that is used to provide duty
rates for virtually every item that exists. Every item that is
exported is assigned a unique 10-digit identification code. Every
10-digit item is part of a series of progressively broader product
categories. For example, the harmonized system number for concentrated
frozen apple juice is: 2009.70.0010. The concentrated frozen apple
juice is assigned a 10-digit identifier that is aggregated into
a broader category assigned a 6-digit identifier described as
apple juice (2009.70.) The 6-digit identifier described as apple
juice is aggregated into a broader category assigned a 4-digit
identifier (2009) described as fruit juices and vegetable juices,
etc. The 4-digit identifier is further aggregated into a broader
category assigned a 2-digit identifier (20) described as Preparations
of Vegetables, Fruit, Nuts etc. The first 6-digits of the classification
number are universal, the last four may vary from country to country.
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All of the imports and export codes
used by the United States are based on the Harmonized Tariff System
(HTS). The HTS assigns 6-digit codes for general categories. Countries
which use the HTS are allowed to define commodities at a more
detailed level than 6-digits, but all definitions must be within
that 6-digit framework.
The U.S. defines products using
10-digit HTS codes. Exports codes (which the U.S. calls Schedule
B) are administered by the U.S. Census Bureau. Import codes are
administered by the U.S. International Trade Commission (USITC).
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In order to determine duty rates for
each individual country you must first obtain the Schedule B/Harmonized
System number. The Central and Eastern Europe Business Information
Center (CEEBIC) can provide unofficial tariff rates for non-agricultural
products for certain countries as well as contact information
for foreign Customs authorities. Certain express carriers may
also require you to list the Schedule B number on their airway
bill or the commercial invoice.
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A commercial invoice is a bill for
the goods from the seller to the buyer. Commercial invoices are
utilized by customs officials to determine the value of the goods
in order to assess customs duties and taxes.
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In general there is no standard form
for a commercial invoice although they tend to contain many of
the following features:
- seller's contact information
- buyer's contact information
- consignee's contact information
(if it is different from the buyers)
- invoice date
- a unique invoice number
- sales terms (usually in incoterm
format)
- payment terms
- currency of sale
- full quantities and description
of merchandise (Generally this includes unit price and total
price. Product descriptions should be consistent with the buyer's
purchase order. Including the Harmonized System commodity codes
can be helpful, especially in countries that are WTO members.)
- certification that the invoice
is correct (Standard language is "We certify that this invoice
is true and correct."
For country specific requirements,
please visit CEEBIC's website at: http://www.mac.doc.gov/eebic/ceebic.html
and review the "How to Export Guide" for the relevant country.
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Duties and taxes need to be paid at
customs to clear the goods into a country. Duties vary by the
good that is exported. Customs valuation is based on the negotiated
purchase price denominated in the foreign currency. The dutiable
value is assessed on cost, insurance and freight (CIF). CEEBIC
can provide unofficial tariff rates for non-agricultural products
for certain countries as well as contact information for foreign
Customs authorities. Please call or e-mail the Central and Eastern
Europe Business Information Center with a specific Harmonized
System number, please call (202) 482-2645 or e-mail ceebic@ita.doc.gov
Note: The U.S. Government
cannot provide tariff rates for products shipped from one foreign
country to another.
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The Value Added Tax (VAT) is similar
to a U.S. sales tax. VAT is assessed on all goods sold by domestic
and foreign manufacturers. VAT is assessed on the cost, insurance,
freight, and duty. Additionally, some countries assess an import
tax and/or a customs handling fee. The rates for the Value Added
Taxes and additional fees for the countries of Central and Eastern
Europe can be found here.
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Most goods do not need a license,
and can be cleared by entering "NLR" (no license required) on
the Shipper's Export Declaration. Licenses are generally required
for high tech or strategic goods or goods shipped to certain countries
where national security or foreign policy controls are important.
The Department of Commerce's Bureau of Industry and Security (BIS)
administers export licenses and regulations. The Export Administration
Regulations (EAR) require a license for certain activities and
items, e.g. commodities, software, and technology, if one of ten
general prohibitions applies and the export or re-export is not
eligible for a license exception.
An exporter can call BIS to determine
if he/she needs a license. BIS holds numerous seminars each year
on export licensing requirements and documentation. BIS can be
reached at (202) 482-4811 (Fax: 202-482-3617) on the East Coast,
or (714) 660-0144 on the West Coast. BIS also maintains a home
page which provides information on their regulations and procedures,
at http://www.bis.doc.gov
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A Certificate of Origin is a document, required by foreign governments,
declaring that goods in a particular international shipment are
of a certain origin. Even though the commercial invoice usually
includes a statement of origin, some countries require that a
separate certificate be completed. Customs offices will use this
document to determine whether or not a preferential duty rate
applies on the products being imported and whether a shipment
may be legally imported during a specific quota period.
A Certificate of Origin is a signed
statement as to the country of origin of the exported products
for a particular shipment. The country of origin is NOT
the country from where the product is shipped. The country of
origin is the country where the product was manufactured or last
underwent a substantial change or modification, for WTO members,
goods can be considered originating if there is a shift of at
least two chapters in the harmonized code.
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The certificate of origin must be
signed by the exporter and be certified by a local chamber of
commerce. The chamber must have access to the commercial invoice
in order to verify that the exporter claims the goods originated
in the U.S. Local chambers of commerce can only certify goods
that originate in the United States. Goods from other countries
will need to be certified in their country of origin.
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You can obtain a single copy of the
Certificate of Origin form from a local Chamber of Commerce. General
certificates of origin forms can be obtained in bulk from the
Government Printing Office (202-512-1800); freight forwarders;
trade document companies, such as UNZ & Company (800-631-3098),
Export Forms Co. (800-251-4083) or Sha Bach Supplies (888-742-2224);
and, some local chambers of commerce.
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A Shipper's Export Declaration is
required for all shipments which require an export license
The Shippers Export Declaration
(SED or Form 7525-V) is used to compile trade statistics and help
in interdicting illegal exports. The SED must be filled out for
any shipment valued at $2,500 or above (If the shipment is valued
at over $2,500 but is made up of various commodities falling under
several Schedule B numbers none of which is valued at $2,500 or
higher, no SED is required.) Anytime an ECCN number is required,
a SED must be filled out.
Shipments valued at less than $2,500
do not require an SED. However, the exporter must include one
of the following statements on the bill of landing, air waybill,
or other loading document he/she provides to the carrier: "No
SED Required--Section 30.55 (h) FTSR." or, "No SED Required--Valued
$2,500 or Less."
-Exceptions
If the shipment is valued at over
$2,500 but is made up of various commodities falling under several
Schedule B numbers none of which is valued at $2,500 or higher,
no SED is required. However, the exporter must include the following
statement on the bill of lading, air waybill, or other loading
document the exporter provides to the carrier: "No SED Required-No
Individual Schedule B Number Valued $2,500 or Higher."
For merchandise after importation
for repairs or alterations where the value of such repairs is
$2,500 or less, no SED is required. However, the exporter must
include the following statement on the bill of lading, air waybill,
or other loading document: "No SED Required--Value of Repairs
$2,500 or Less."
No Shipper's Export Declaration
is required when shipping electronically.
The Automated Export System (AES)
is the electronic filing of the Shipper's Export Declaration (SED).
AES can be used by U.S. Principal Parties in Interest (USPPIs),
forwarders, or anyone else responsible for export reporting. For
information on the Automated Export Service and other items visit:
http://www.aesdirect.gov/
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Shipper's Export Declaration (SED) forms are available for online
review and downloading. You can fill out the form using your browser
and/or Adobe Acrobat and then print it on your local printer.
If you download and print the SED to use it to complete your documentation
requirements for exporting, the following guidelines must be followed:
- The complete document MUST be
printed on standard weight 8 1/2" by 11" paper.
- All information on the form must
be included on the printed copy in the exact location and must
be readable.
- The document should be printed
on buff or goldenrod colored paper.
The SED may be
downloaded from the internet at: http://www.census.gov/foreign-trade/regulations/forms/index.html
Generally a freight forwarder has
the SED forms or can tell the exporter where to get one. Copies
of this form may be purchased from the Superintendent of Documents,
Government Printing Office, Washington D.C. 20402 or from a local
U.S. Customs office.
The SED and instructions on how
to fill it out are available from the U.S. Census Bureau's home
page (http://www.census.gov/foreign-trade/www).
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Commercial News USA: a catalog-magazine
published 10 times a year to promote U.S. products and services
in overseas markets. It is disseminated to business readers worldwide
via U.S. embassies and consulates and international electronic
bulletin boards, and selected portions are also reprinted in certain
newsletters. Exporters can advertise U.S.-made products or services
in Commercial News USA by calling ABP International at (212) 490-3999,
visiting the Internet web site http://www.cnewsusa.com
or contacting your local Department of Commerce District Office.
Advertisement fees are based on the size of the listing.
International Broadcasting Bureau
(IBB): U.S. exporters can also advertise through the International
Broadcasting Bureau (IBB), which is part of the United States
Information Agency. IBB is the umbrella organization which includes
Voice of America (VOA), Worldnet TV, and Radio Free Europe/Radio
Liberty. Voice of America broadcasts almost 700 hours of programming
to an estimated audience of 86 million each week. They can peg
a company's ads to different language broadcasts about a particular
subject, eg., science and technology, health and medicine, or
target the ads to a specific region or country. For additional
information, contact IBB at (202) 260-9052.
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MyExports is
a public-private partnership of the U.S. Department of Commerce
and Global Publishers LLC. Their goal is to give U.S. exporters
and service providers a simple, fast and convenient way to establish
contacts and conduct business. On their website, you can create
a business profile to add to the U.S. Exporters' Yellow Pages,
in addition to exploring the U.S. Trade Assistance Directory,
where you can find export service providers that will help develop
your global business. Please visit their website at http://www.myexports.com/
for more information.
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The Central and Eastern Europe
Business Information Center does not have comprehensive lists
such as these, but can direct callers to helpful resources:
On the Central and Eastern Europe
Business Information Center's website companies can find Market
Research information for a variety of industry sectors. The Market
Research Reports also contain some foreign company information
as well as foreign trade associations, which you can contact to
obtain a list of their members.
The International Partner Search
is a program offered by the U.S. Department of Commerce, which
is a customized search on behalf of U.S. companies seeking foreign
representation. U.S. commercial officers abroad conduct the agent/distributor
search based on requirements specified by the requesting firm.
The search for agents and distributors takes 60-90 days and costs
$600 per market. You can place an order for this service through
your local Export Assistance Center (EAC). You can locate the
nearest EAC on the CEEBIC website at: http://www.mac.doc.gov/eebic/ceebic.html.
Then, under the drop-down menu "Other Resources", click
on "Key Contacts" and you will find a listing under
"U.S. Department of Commerce Programs."
Foreign Trade Associations can also
provide valuable information on industries and companies within
your country of interest. This information can be found in the
Appendix of the Country Commercial Guides (CCG's) and in the Market
Research reports for various industry sectors. Also the Central
and Eastern Europe Business Information Center's website at: http://www.mac.doc.gov/eebic/ceebic.html
may have links to the Chambers of Commerce and Industry for the
countries of Central and Eastern Europe. Click on the country
of your choice and then, under the drop down menu on "Country
Information", select "Useful Resources" and then
"WWW Related Links."
Private corporations which maintain
information on overseas companies include:
The Warsaw Business Journal and
Budapest Business Journal maintain lists of companies for each
of their respective countries. For a list of companies in Hungary
visit: the Budapest Business Journal at: http://www.bbj.hu/
and click on "Companies." For a list of companies in Poland visit:
the Warsaw Business Journal at: http://www.wbj.pl/
and click on "Companies."
The Directory of Major Companies
published by World Publications Service, provides listings of
the major companies around the world. They can be reached at 1-800-507-4383
or (202) 531-0760.
Foreign Trade Register published
by Thomas Register, provides listings of foreign manufacturers
worldwide. They can be reached at phone 1-800-699-9822 or at http://www.thomasregister.com
Kompass International Trade Directories
provide references to a country's industry, and contain product
and service classifications. They provide directories for individual
countries, product references, and executives names in over 60
Countries. They can be reached at 034-233-5862, or at http://www.kompass.com.
Thomas Register of European Manufacturers
produces a CD-ROM with directories for Australia, Austria, Bahrain,
Belgium, Bulgaria, Brunei, Brazil, Canada, Czech Republic, Denmark,
Egypt, Finland, France, Germany, Greece, Holland, Iceland, India,
Ireland, Israel, Italy, Japan, Korea, Luxembourg, Malaysia, Morocco,
Norway, Philippines, Poland, Portugal, Singapore, Spain, Sweden,
Switzerland, Taiwan, Thailand, Tunisia, Turkey, and United Arab
Emirates. The CD-ROM costs $345.00 and can be ordered at 1-800-699-9822.
Note: This document does not
include all private sector sources of trade information nor does
it represent an endorsement of any particular service or source
by the U.S. Department of Commerce.
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The American
Chambers of Commerce in the region might be a useful source of
information. The mission of the AmChams is to be the leading representative
for U.S. and international business in its respective country,
and to promote the global competitiveness of the country. For
each AmCham's contact information, go to the CEEBIC website at
http://www.mac.doc.gov/ceebic/.
Select a country page from the column on the left-hand side. Then
under the drop-down menu "Country Information", select
"Useful Resources", then "WWW Related Links".
You will find a link to that country's AmCham under business contacts.
Also on each country page under "Country Information"
and then "Useful Resources", you can find a list of
"U.S. Companies operating in
". Finally, to access
a directory of American firms operating in foreign countries,
please visit http://www.uniworldbp.com/.
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Various public and private resources
have services designed to help U.S. exporters find information
about overseas companies:
International Company Profile (ICP)
is a program offered by the U.S. Department of Commerce for some
countries, which portrays the reliability of prospective trading
partners. Information provided includes type of organization,
year established, size, general reputation, territory covered,
sales, product lines, principal owners, financial information,
and trade references, with recommendations from on-site U.S.-commercial
officers as to suitability as a trading partner. The results of
your request will take 30-45 days and costs $100 per report. You
can place an order for this service through your local Export
Assistance Center (EAC). You can locate the nearest EAC on the
CEEBIC website at: http://www.mac.doc.gov/eebic/ceebic.html.
Then, under the drop-down menu "Other Resources", click
on "Key Contacts" and you will find a listing under
"U.S. Department of Commerce Programs."
Private corporations which maintain
information on overseas companies include:
Dun & Bradstreet Information Services
provides country profiles, risk analysis, lists and publications
such as America's Corporate Families and International Affiliates.
They also compile Economic Risk and Payment Review reports available
by country, region, or globally. They can be reached at 1-800-932-0025,
or on the internet at http://www.dnb.com.
Standard & Poor's Rating Service
provides country profile reports, risk analysis, credit reports.
They also compile Economic Risk and Payment Review reports available
by country, region, or globally. They can be reached at (212)
208-1146. Graydon America, Inc. provides business services in
the fields of credit management and marketing information on overseas
companies. They can be reached at (212) 385-3490.
Other private corporations which
provide credit reporting services include: J. I. International
can be contacted at phone (860) 589-1698,
or e-mail at jiintl@connix.com.
Piguet International, Inc. can be reached at phone (800)
766-9922 or (203) 584-8088.
LIDA Credit Agency, Inc. can be reached at phone (800)
423-0026 or (516) 678-4600.
Veritas can be contacted at phone (800) 929-8374 or (203)
328-7918, and online at www.veritas-usa.com.
Note: This document does not include all private sector sources
of trade information nor does it represent an endorsement of any
particular service or source by the U.S. Department of Commerce.
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Incoterms are a collection of 13 internationally
used terms of sale that standardize the terminology used in international
trade to identify who is responsible for different activities in
the delivery process. The scope of Incoterms is limited to matters
relating to the rights and obligations of the parties to the contract
of sale with respect to the delivery of goods sold, but excluding
"intangibles" like computer software. Incoterms should be listed
on your commercial invoice and in your contract. Every Incoterm
has its own unique three character abbreviation, Every Incoterm
must be accompanied by the name of a geographic place or range of
places. The Incoterms are maintained by the International Chamber
of Commerce.
Further information on Incoterms
can be found on the International Chamber of Commerce website:
http://www.iccwbo.org/index.asp
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Air Waybills & Bills of Lading are
the documents, which are usually prepared by the freight forwarder,
to ship the merchandise. Air Waybills are used for shipments being
shipped by air and bills of lading are used for shipments being
shipped by ocean. A copy of these documents is needed in order
to clear the shipments through customs at the port of entry.
Air Waybills & Bills of Lading will
contain the contact information for the shipper and consignee,
the carrier information, port of entry and departure, handling
information, number of pieces, weight and shipping costs.
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There is no
funding available from the USG for private sector businesses to
travel to CEE. However, NGOs and trade associations might be able
to locate travel funds. Also, firms within the private sector
have numerous opportunities for funding to assist with the financing
of deals that have already been located.
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The Market
Development Cooperator Program (MDCP) is a competitive matching
grants program that builds public/private partnerships by providing
federal assistance to non-profit export multipliers such as states,
trade associations, chambers of commerce, world trade centers
and other non-profit industry groups that are particularly effective
in reaching small and medium-sized enterprises (SMEs). For more
information, please see their website at http://www.export.gov/mdcp.
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Please visit
the website of the Office of Foreign Assets Control (OFAC), which
administers and enforces economic and trade sanctions based on
U.S. foreign policy and national security goals against targeted
foreign countries, terrorists, international narcotics traffickers,
and those engaged in activities related to the proliferation of
weapons of mass destruction. More specifically, see 'Sanctions
Program and Country Summaries' and 'SDN and Blocked Persons' on
the main OFAC website at http://www.ustreas.gov/offices/eotffc/ofac/.
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In the Czech
Republic, according to CzechInvest, the average monthly gross
wages in 2002 were $480 or CZK 15,707.
In Romania, the average monthly earnings in manufacturing
in April 2003 were $168 or ROL 5,733,790 (Source: ILO Database).
In Slovenia, the gross wage per manufacturing employee
in February 2003 was $926.75 or SIT 197,457 (Source: Slovenian
Economic Mirror).
In Slovakia, the average monthly wages in manufacturing
in the first quarter of 2003 was $360.45 or SKK 13,576 (Source:
Slovak government, www.statistics.sk).
In Poland, monthly earnings in manufacturing as of November
2002 were $531.17 or PLN 2099.2 (Source: ILO Database).
In Hungary, monthly earnings in manufacturing as of August
2001 were $425.85 or HUF 98,370 (Source: ILO Database).
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