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Country Commercial Guides FY 2000: Denmark Report prepared by U.S. Embassy Copenhagen, released July 1999 Note*

VI. TRADE REGULATIONS, CUSTOMS AND STANDARDS

Trade Barriers, Tariffs, Import Taxes: Denmark has historically maintained a no-barrier policy. It is often in the lead in the international combat against non-tariff barriers. Denmark has the best record of all EU countries regarding implementation of Single Market directives. Denmark applies no unilateral trade barriers against the U.S.A. It is a full member of the European Union (EU) and external duty tariffs apply to all products entering from non-EU countries including the United States. Duties run from 5 to 14% on industrial goods. Once goods have cleared customs in one EU country they may circulate freely within the Union. Although not an import tax, all goods imported into Denmark are also subject to a 25 percent Value-added-tax (VAT). The VAT is applied on a non-discriminatory basis to all goods and most services, whether imported or locally produced.

As a consequence of Denmark's membership of the EU, certain agricultural products imported from non-EU countries are governed by the Common Agricultural Policy (CAP). Duties on these items -- which include cereal grains, rice, milk and milk products, beef and veal, olive oil and sugar -- are supplemented with a system of variable levies or other charges; the purpose of which is to equalize prices of imported commodities with those produced within the Community. In addition to the bound duties, the EU subjects most imported consumer-ready products to additional import charges based on the percentage of sugar, milk fat, milk protein and starch in the product. While these additional import charges have made some imported processed food products non-competitive in the European market, the situation should improve over the next few years because such charges will be converted to fixed tariff equivalents and reduced under the Uruguay Round Multilateral Trade Agreement. Note: advice on current import charges for consumer-ready products can be obtained from the Agricultural Affairs Office of the U.S. Mission to the European Union in Brussels, Belgium.

Customs Valuation: Customs procedures, including the classification and valuation of imported goods entering Denmark, are governed by EU rules. For information on import duties and tariffs, U.S. exporters may contact the Danish Customs Office listed in Appendix #E,1.a.

Import Licenses: With very few exceptions (alcoholic beverages, weapons and arms, certain drugs and chemicals, and certain food products) Denmark requires no import licenses. There are no special import restrictions or license requirements which constitute problems for U.S. industrial product exporters.

Export Controls: Denmark is a member of NATO and therefore participates in the successor regime to COCOM regulating export and re-export of strategic commodities.

Import/Export Documentation: The clearance of goods through customs and payment of duties in Denmark and other EU countries are the responsibility of the importer or his appointed customs broker. A commercial invoice from the U.S. exporter is always required for the importer or his agent to clear goods through customs. Additional documentation requirements exist for agricultural products, chemical substances, and other selected goods (see "import licenses" above). U.S. exporters are advised to follow the documentation requirements of their local importers. Once goods have been cleared and duty paid in one EU country, these goods may move freely within all EU member states.

Temporary Entry: Most foreign businesses needing to export temporarily into Denmark chose to do so by using an ATA Carnet. In the United States, this document is issued by an American Chamber of Commerce office.

Labeling, Marking Requirements: The marking and labeling requirements for products sold in Denmark are numerous and vary from product to product. The requirements may stem from either Danish or EU laws and regulations. For the exporter to comply, the assistance of the Danish importer is essential. As a general rule, consumer products must be labeled in Danish or in a language which differs from Danish only slightly in spelling. As a practical matter this means Norwegian and in some instances Swedish. Certain products must be marked clearly with the country of origin. In some cases, marking can be done by the importer after arrival of the goods in Denmark. Weights and measures must be stated in the metric system. Labels and marking must accurately describe the contents of packages. The responsibility for compliance with Denmark's marking and labeling regulations falls on the importer. Exporters, however, should carefully follow importer's instructions because failure to do so can cause customs delays and extra expenses which may harm future business. A substantial number of products must now be CE marked prior to sale in Denmark and the rest of the EU. CE Marking (CE = Communite Europeen or European Community) is a statement by the manufacturer of a finished product, or his authorized representative in the EU, that the product meets the essential requirements for that product as stipulated in all relevant EU directives. The purpose of the directives is to replace various national laws and requirements with harmonized European requirements, thus ensuring a free movement of goods within the EU. Some of the most important directives calling for CE marking are:

* The Machinery Directive (89/392/EEC), which comprises all types of machinery. * The EMC Directive (89/336/EEC), where EMC means Electro Magnetic Compatibility. This directive comprises all electrical and electronic appliances, equipment, installations and components.

* The Low Voltage Directive (73/23/EEC), which comprises consumer goods and equipment designed to operate from 50V to 1,000V alternating current and from 75V to 1,500V direct current. This typically includes domestic electrical appliances, hand tools, lighting equipment and electrical wiring. * The "CE Marking Directive" (93/68/EEC), which is the administrative directive modifying the rules for CE-Marking.

Guidance on compliance with EU directives is available from the USFCS office at the U.S. Mission to the EU in Brussels, Belgium.

Labeling of Food Products: All food products must be labeled in accordance the Government Labeling Announcement (Maerknings-bekendtgoerelsen No. 165/91). In general terms, compliance with local labeling regulations is the responsibility of the importer or the local retailer.

Food products sold on the Danish market must be labeled with information about the individual product. The label can be in the form of a stick-on label and must be easy to read and clearly visible. The label must be in the Danish language or in another language marginally different in spelling from Danish (Swedish or Norwegian). English or other EU languages can be used provided they are supplemented by a Danish translation.

The Danish legislation in this field consists partly of EU provisions and partly of Danish national provisions.

The following requirements apply to consumer-ready food products: -- Identification of the production run, batch or lot to which each particular unit belongs. The Danish rules require that this number starts with the letter L (for lot);

-- The name or trademark and address of the producer or packer or the address of an agent or distributor in the EU;

-- A description of the product and its ingredients. All ingredients must be listed individually stating the quantity of each ingredient at the point of production;

Additives must be specified with their chemical identity or their "standard identity" (the E-number mentioned below). It must also be stated to which group of additives the actual additive belongs i.e. preserve, artificial sweetener or color;

Nutritional information must be included if the manufacturer is marketing specific qualities or characteristics for instance "light";

-- Net mass or weight. The actual contents of a container or a package must be stated as well as the weight of the produce without pickle or other liquid;

-- The last date of sale stated as day, month, and year. For certain products such as wine, salt, and sugar the last date of sale need not be stated;

For specific fresh meat products, the date and time of production and packing must be included;

-- The country of origin must be stated for a number of products such as manufactured seafood and meat;.

-- Information on how to store or use the product, if necessary in order to use or store correctly.

Please note that there may be additional requirements in specific areas such as organic or biodynamic food products.

Bar codes are used widely, but are normally not international standard and are purely for internal identification purposes. An increasing number of supermarkets implement computer equipment for cashier and stock monitoring purposes based on internal bar codes. If these traders are a target group of US exporters, it may be appropriate to offer goods labeled with legible codes to enhance a smooth distribution flow.

Effective January 1, 1993, the EU instituted its Single Market program; which sought to remove the technical, physical and fiscal barriers hindering the movement of all goods, services, capital and people. Border delays were estimated to be adding 15 percent to the costs of transporting many types of goods including agricultural produce. One of the main reasons for the problems of the latter was differing veterinary and phytosanitary policies among EC member states. Almost 80 percent of the Single Market EC Commission directives deal with agricultural products, whose harmonization should facilitate the movement of food products throughout the EC.

Denmark has separate import standards on a number of food products. The separate requirements are generally more restrictive due to Denmark's high veterinary and food standards.

In general, Danish importers assume the responsibility for assuring that imported consumer-oriented food products are in compliance with Danish Government and/or EU regulations. Nevertheless, U.S. suppliers should note the following EU/national restrictions:

-- Imported food products are subject to the Veterinary and Food Directorate's "Positive list", which is an extensive list of the additives and the amount of additives permitted in food products sold in Denmark. The "positive list" also describes the labeling requirements for additives. The list can be obtained from the National Food Agency of Denmark (see address below).

The legal requirements for permitted types and quantities of additives are extensive in Denmark. In fact, they are presently more extensive than in other EU member states. The actual additives permitted in foodstuffs sold on the Danish market are stated on a positive list prepared by the National Food Agency of Denmark and revised on an annual basis. The list encompasses 420 different types of additives.

The positive list defines the chemical nature of the permitted additives, specific additives permitted in specific food products and maximum quantities permitted in specific food products. Additives not mentioned in the list might be used, but require prior permission from the Veterinary and Food Directorate in each individual case, and products including these additives may not be introduced on the Danish Market until approval has been granted.

Further information can be obtained from the Veterinary and Food Directorate, Ministry of Food, Agriculture and Fisheries. Please see Appendix E.

Special Import Provisions: See above.

Membership in Free Trade Arrangements: Denmark is a full member of the EU and the WTO.