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Country Commercial Guides for FY 2000: Sweden Report prepared by U.S. Embassy Stockholm, released July, 1999 Note*

VI. TRADE REGULATIONS AND STANDARDS

- Tariffs and Import Taxes

After Sweden's entry into the European Union on January 1, 1995, the Swedish customs law and regulations were replaced by the EU law with coherent regulation which means that Sweden applies the external EU tariffs to imports from the United States and other non-EU countries. The EU tariff schedule utilizes the Harmonized System (HS) code. Most industrial products are charged between 2% to 14% duty. Many IT-products are free of duty following the IT agreement. Goods imported into Sweden are also subject to a value-added-tax (VAT). The general VAT rate is 25% with a lower VAT rate of 12% for food and certain services effective from 1996.

Customs procedures, including the classification and valuation of imported goods, are governed by EU rules.

Certain agricultural products are subject to import duties and/or fees, which are imposed in accordance with EU rules and regulations. Among the products subject to these duties and fees are cereals, flour, certain fats and oils, fishery products, butter, cheese, eggs, poultry, meat and some cattle and hogs. During a transitional period, due to animal health protection reasons, Sweden maintains stricter rules on imports of certain agricultural products than the EU. As a member of the EU, Sweden maintains duty-free entry on all products originating in other EU countries.

- Customs Valuation

Virtually all import duties are on an ad valorem basis. The basis for valuation is the normal price of the merchandise plus costs of transportation and all other expenses, such as insurance and freight, connected with the sale and delivery of the merchandise up to the point of its introduction into Swedish or other EU member states' customs territory. Imports are also subject to the value-added tax. Some products are subject to special taxes. Information can be obtained through the Swedish Board of Customs (see appendix E.).

- Import Licenses

After Sweden's entry into the European Union on January 1, 1995, import licenses are required for a number of commodities, especially textiles. Import licenses are also required for import of certain foodstuffs and live animals.

- Parallel Imports

Parallel imports on a large scale are a fairly recent phenomenon in Sweden. Parallel imports from countries both outside and inside the European Economic Area (EEA) are to be found in a large number of trade sectors, such as clothing, footwear, capital goods, cars, pharmaceuticals etc. In 1998, the European Court of Justice ruled in what has become known as the Silhouette Case. In brief, the ruling states that parallel imports from countries other than those belonging to the European Economic Area - i.e. the EU Member States plus Norway, Liechtenstein and Iceland - are no longer allowed. Parallel imports within the EEA zone, however, remain both permissible and desirable.

Private imports are quite considerable in certain sectors, like cars, alcoholic beverages and tobacco. Private imports differ in character from parallel imports in that they are not primarily for commercial ends but for the importer's own use. Recently, direct imports through private channels have increased with the growth of Internet trading. The private consumer products that at present are chiefly associated with trade over the Internet are CD's and books. Once further standards and security routines for the payment process are in place, a sharp increase in Internet trading can be expected.

- Export Controls

Export license applications for the National Inspectorate of Strategic Products (ISP) handles both military equipment and dual-use goods. Licensing decisions are taken by ISP, but matters of principal significance should be referred to the Swedish Government for decision. The legal basis for export control of military equipment is the Military Equipment Act (1992:1300), and the Military Equipment Ordnance (1992:1303). The legal basis for export control of dual use goods is the Council Regulation (EC) No. 3381/94 and on a national basis complemented by Act (1998:397) on Strategic Products and Ordnance (1998:400) on Strategic Products.

- Import/Export Documentation

The documents required by Sweden from the exporter include a commercial invoice, a bill of lading, and such special certifications as may be necessary. Certificate of origin or certification of origin stated on the invoice may be required for textile products according to EU legislation. There are no stipulations as to the form of commercial invoices, bills of lading, or other shipping documents. Swedish (and EU) customs regulations specify that the invoice must contain the seller's name, signature, and address; the buyer's name and address; date the invoice was prepared; date the purchase contract was concluded; number of cases, parcels, or containers; the denomination of the merchandise; type and gross and net weight plus marking and number; product's discounts (and the nature of discount); and also conditions of delivery and payment. An invoice should accompany goods liable to an ad valorem duty shipped on consignment as though they had been sold. Shipping documents may be made out in the English language. The usual bill of lading (or an airway bill) suffices for shipment to Sweden. The bill of lading must be completed in accordance with the invoice. "To order " bills of lading are accepted. Sanitary certificates, which must show the country of origin, are required for goods that may be suspected of bringing contagious animal or vegetable diseases into the country or for goods for which special stipulations are prescribed. Goods subject to these sanitary certificates includes live animals, animal products (including meat, meat products and feedstuffs) and vegetable products as potatoes, live plants and seeds. A competent authority in the country of production or export must legalize the sanitary certificate.

- Temporary Entry

Sweden honors the ATA Carnet, an international customs document designed to simplify customs procedures for business and professional people taking commercial samples, advertising materials or film or medical or professional equipment into specified countries for a short period. More than 40 countries participate in the carnet system. The U.S. Council of the International Chamber of Commerce, 1212 Avenue of the Americas, New York, NY 10036-4480 (fax 212-944-0012, tel. 212-354-4480) has been designated by the U.S. Bureau of Customs as the U.S. issuing and guaranteeing organization. U.S. firms should write to the U.S. Council at its New York address to apply for ATA Carnets.

- Labeling, Marking Requirements

There is no general requirement in Sweden that imports be marked as to the country of origin. However, goods carrying incorrect designations of origin are prohibited, and a product, which has been made to appear as though it has been produced or manufactured in Sweden, may not be imported unless its foreign origin is clearly, conspicuously, and durably marked thereon. It would suffice if the marking in this case consisted only of the word "imported."

Special marking regulations exist concerning a few products, e.g. pharmaceuticals and chemicals, Sweden has exacting labeling requirements for foods. Its health, sanitary and labeling rules are very strict and its laboratories have sophisticated capability to monitor product quality.

A retail-size food package must show the name of the manufacturer, packer or importer, commercial name of the product, net metric weights or volume, ingredients in descending order of weight, last recommended date of consumption, and storage instructions if perishable or intended for infants. Mandatory information described above must in principal be labeled in Swedish. Swedish importers are helpful in arranging for proper labeling information. Inspection and food labeling requirements were changed to conform to E.U. regulations when Sweden became a member of the E.U. on January 1, 1995.

- Prohibited Imports

Certain goods, such as weapons, explosives, drugs, poisons, etc., may be imported only by authorized persons and institutions, and require import licenses or special permits.

Standards

Sweden uses the metric system. Products for sale in Sweden should be adapted to it whenever possible. The United States is the only major nation where the metric system is not in full use. U.S. exporters not using the metric system have a serious disadvantage in world markets since overseas buyers are reluctant to accept products that are non-metric. Information is available from the U.S. Department of Commerce Metric Program at (301) 975-3690. Electric current in Sweden is 50 hz, AC 230V single-phase and 230/400V three-phase. Information about Swedish standards may be obtained from:

Swedish Standards Institution
P.O. Box 3295, S-103 66 Stockholm, Sweden
Tel: Int/46/8-610 30 00, Fax: 46-8-30 18 50

Companies can invite an accredited registration body to audit their production and issue a certificate regarding the quality system in compliance with the demands in ISO 9000, or some equivalent standards system. Information can be obtained from Swedac, a government entity with the following address:

Swedac, Styrelsen for Ackreditering och Teknisk Kontroll
Box 878, S-501 15 Boras
Tel: Int/46/33-17 77 00, Fax: 46-33-10 13 92

Since the diversity of foreign standards, regulations, inspection procedures, and certification requirements can constitute a considerable barrier to increasing U.S. exports, American firms should keep abreast of standards abroad. Exporters can get up-to-date information about technical standards by contacting:

National Institute of Standards and Technology (NIST)
U.S. Department of Commerce
Room A 163, Building 411
Gaithersburg, MD 20899
Tel. (301) 975-4038

Information about industrial standards may also be obtained from:

The American National Standards Institute Inc.
11 West 42nd Street
New York, NY 10018
Tel. (212) 642-4900

- Free Trade Zones/Warehouses

There are no free trade zones in Sweden at present; only free trade warehouses at Stockholm Harbor and Arlanda Airport, which are not open to all companies.

- Special Import Provisions

As a member of the European Union, EU customs union system applies to all imports to Sweden.

- Membership in Free Trade Arrangements:

Sweden is a member of the European Union and WTO. Via the European Union, Sweden is also a member of WCO (World Customs Organization).