Exporting to Scandinavia - trzistesrbije.com to Scandinavia.pdf · Request by importer · 14 Contents 2Scandinavian ... Garments and home textiles · 30 ... Exporting to Scandinavia.

Exporting to ScandinaviaA Guide for Exporters from Developing Countries

The Danish Import Promotion Office DIPO · HSH - Norwegian Office of Import Promotion/Norad · The Swedish Chambers of Commerce

Norway

Sweden

Denmark

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at the time of publishing. It is, however, passed on to the readerwithout any responsibility on the part of the authors

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or the information contained therein. No obligation is assumed for updating or amending this publication

for any reasons, be it new or contrary information or changes in legislation, regulations or jurisdiction.

Foreword

The Millennium Development Goals, whichwere agreed upon by the 176 Heads of Stateand Government during the United Nations’Development Summit in New York inSeptember 2000, have established a globalagenda to reduce poverty. As members of theUN, the Scandinavian countries have commit-ted themselves to striving to achieve the goalof halving poverty in the developing countriesby the year 2015.

Development of the private sector in the devel-oping countries, and growth in their trade, areof paramount importance for poverty reductionin the third world countries. The industrialisedcountries are working at several levels to facili-tate developing countries’ access to their mar-kets.

However, the obstacles for developing coun-tries are numerous. Rules and regulations arecomplicated and many countries are not yet ina position to profit from the competitive advan-tages that they have acquired, for instancethrough the preferential customs schemes.

The Scandinavian countries have a long tradi-tion of promoting trade development in devel-oping countries and involving their own busi-ness community in the process. For manyyears Denmark, Norway and Sweden have hadimport promotion activities directed towardsexporters from developing countries wanting toenter the Scandinavian markets. This has result-ed in an ongoing cooperation and coordinationof these activities among the Scandinaviancountries.

This cooperation makes sense as the Scandi-navian countries – if looked upon individually– are small markets, but with many similarities.Apart from the many linguistic, cultural and his-torical similarities, the social welfare develop-ment in each country makes it relevant to talkabout a Scandinavian model of society that isunique at the international level.

Business culture, consumption patterns andconsumer preferences are basically similar.Although Norway is not a member of theEuropean Union – unlike Denmark andSweden – Norwegian legislation is to a greatextent harmonised with EU legislation, thus fa-cilitating one Scandinavian market.

The purpose of this guide is to provide ex-porters in developing countries with anoverview of the various issues that they willmost likely encounter when setting up an ex-port business in Scandinavia. The guide pro-vides basic information about Scandinavia andthe Scandinavian market as well as reference tonumerous sources for in-depth information.

It is the hope of the authors that this guide willpave the way for exporters in developing coun-tries wishing to enter the Scandinavian marketwith its 19 million consumers.

Exporting to Scandinavia

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1 This is Scandinavia

Scandinavia at a glance · 4

A region of similarities · 5

Life and consumption patterns · 5

Geography and climate · 6

3 Benefit from lower custom duties

Preferences for developing countries · 11

Which countries benefit from preferences? · 11

Classification of goods · 11

Rules of origin · 12

Proof of origin · 13

Transportation · 14

Request by importer · 14

Contents

2

2 Scandinavianeconomy

Denmark · 7

Norway · 8

Sweden · 9

4 Legal requirements

Product requirements · 15

The New Approach directives/CE directives · 16

Demonstration of compliance · 16

Packaging and labelling · 17

Foodstuffs · 17

Toys · 18

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5 Marketrequirements

Certification · 19

Terms of delivery and packaging · 21

Transport of goods · 21

Pricing · 21

Terms of payment · 23

6 How to access theScandinavian market

Getting in contact with potential buyers · 25

Business culture · 26

Adapt to the relevant business sector · 28

Case 1: The foodstuffs sector · 28

Case 2: Garments and home textiles · 30

Case 3: Handicrafts and gift articles · 31

7 Assistance to exporters from developing countries

Denmark: DANIDA · 33

The Danish Import Promotion Office DIPO · 33

Norway: Norad · 33

HSH - Norwegian Office of Import Promotion · 33

Sweden: Sida · 34

Trade Promotion Programme of the Swedish Chambers · 34

Open Trade Gate Sweden · 35

Other actors · 35

ITC: International Trade Centre · 35

CBI: Centre for the promotion of imports from developing countries · 36

Annexes

Acronyms · 37

Internet information sources · 38

Import statistics · 42

Least Developed Countries and

countries of preference · 43

Map of Scandinavia · 44

3

Exporting to Scandinavia

4

Scandinavia at a glance

Denmark Norway Sweden

Government Liberal Party and Labour coalition with Social democrat partyConservative party Socialist Left + Center Party

Constitution Monarchy with a multi-party, Monarchy with a multi-party, Monarchy with a multi-party, parliamentary democracy. parliamentary democracy. parliamentary democracy. Queen Margrethe II King Harald V King Carl XVI Gustav

Population 5.3 million 4.6 million 9.0 million

Number of households 2.4 million 1.75 million n.a.

Population density 123 inhabitants/km2 12 inhabitants/km2 22 inhabitants/km2

Area 43,095 km2 385,155 km2, 449,664 km2

incl. Svalbard 61,020 km2

Climate Four distinct seasons. Four distinct seasons and Four distinct seasons with large Country averages: large local variations: variations between south and north.July: average max. temp: Oslo: July: average temp: +16.4°C. Average temperatures and +19.8°C, min. temp: +11.5°C. January: average temp: -4.3°C. precipitations: January: average max. temp: Annual precipitation: 763 mm. Stockholm: January –3°C and+2.0°C, min. temp: -2.9°C. Bergen: July: average temp: +14.3°C. 30-40 mm, July 18°C and 80 mmSnow from December to March January: average temp: +1.3°C. Malmö: January 0°C and 50 mm,(average number of days 30). Annual precipitation: 2,250 mm. July 18°C and 70 mmAnnual precipitation: 712 mm Tromsø: July: average temp: +11.8°C. Kiruna: January –15°C and

January: average temp: -4.4°C. 30 mm, July 14°C and 80 mmAnnual precipitation: 1031 mm

Language Danish Norwegian Swedish

Business language English English English

Weights & Measures The metric system The metric system The metric system

Currency Danish krone DKK Norwegian krone NOK Swedish krona SEK

Capital Copenhagen Oslo Stockholm

Time zone Central European Time zone - one hour ahead of GMT. From the end of March to the end of Octobertwo hours ahead of GMT.

Business hours Monday to Thursday: Monday to Friday: Monday to Friday:9 a.m. - 5 p.m. 8 a.m. - 4 p.m. 8 or 9 a.m. - 5 p.m.Friday: 9 a.m. to 4 p.m.

Banking hours 10 a.m. - 4 p.m. 9 a.m. - 3 p.m. Thursday until 10 a.m. - 3 p.m. Thursday to 5:30 p.m. 4.30 p.m. except in the summer Monday to Friday

Public holidays New Year’s Day: 1 JanuaryEaster: (Maundy Thursday,Good Friday, Easter Monday)Great Praying Day Ascension Day Whitsun: Sunday and MondayConstitution Day 5 June(half-day holiday)Christmas: 24, 25 and 26December

New Year’s Day: 1 JanuaryEaster: (Maundy Thursday, Good Friday, Easter Monday)Labour Day: 1 May Constitution Day: 17 May Ascension DayWhitsun: Sunday and MondayChristmas: 25 and 26 December

* Eves preceding the public holidays, on which most offices are closed during the afternoon.

Twelfth night*: 5 January Twelfth day: 6 JanuaryEaster: (Maundy Thursday*, GoodFriday, Easter Monday)Walpurgis Night*: 30 AprilLabour Day: 1 May Ascension DayNational Day: 6 June Midsummer's Eve: Friday between20-26 JuneChristmas: 24, 25 and 26DecemberNew Year's Eve*: 31 December

A region of similaritiesScandinavia consists of the three countries:Denmark, Norway and Sweden. These coun-tries have an inter-linked historical backgroundand many cultural similarities. The languagesare similar enough to allow Scandinavians tocommunicate with each other using their ownmother tongue. Despite this, the economic andpolitical situation differs among the countries.Denmark and Sweden are members of theEuropean Union, while Norway remains out-side, having, however, established extensivecooperation agreements with the EU.

In business, few borders are known. Many ofthe large multinational Scandinavian compa-nies operate in all three countries. Foreignbusinessmen approaching the countries willnotice the similarities in demand, consumptionpatterns and business cultures. It is thereforenatural to view the three national markets asone.

Life and consumption patterns Some basic facts should be observed whenanalysing the Scandinavian market:

• The average income is high in internationalcomparison; the gross domestic product percapita is in the order of € 30,000 per year.

• The Scandinavian countries have some of thehighest tax levels in the world. The tax sys-tems are progressive, higher incomes paymore. It is quite common that people paymore than 50 % of their top income in tax.

• In comparison with many other European in-habitants, Scandinavians tend to use a rela-tively large part of the income on housingand relatively less on other areas. Housingaccounts for over 20 % of household expen-diture in the three countries, whereas food-stuffs and beverages only represent 13 – 15% of the average household expenditure.

• The Scandinavians live, to an increasing ex-tent, in single person households. On aver-age, this represents 38 % of the households(17 % of the population). University studentsmove away from home, people are gettingmarried late, and the divorce rate is high.Elderly people also tend to live by them-selves.

• 72 - 75 % of Scandinavian women betweenthe ages of 15 and 64 years (2002) workoutside the home: the high frequency ofwomen working reflects a highly-developedpublic sector with adequate day care institu-tions for children.

• 50 % of the population in Scandinavia havea high school degree, and nearly 20 % a uni-versity degree. Education is equally distrib-uted between the genders.

1 This is Scandinavia

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Household consumption (2003/2004)Denmark Norway Sweden

Distribution of private consumption (%)Foodstuffs & beverage 15.9 14.4 13.4Clothing 4.9 5.3 4.3Housing 22.7 21.5 23.1Electricity and heating 7.6 5.2 4.6Furniture & domestic goods 6.2 7.0 4.8Healthcare 2.6 2.8 2.6Transport 16.2 17.3 15.8Culture and leisure 11.0 12.6 17.7Other goods & services 12.9 13.9 13.7

Sources: Statistics Denmark, Statistics Norway, Statistics Sweden

Geography and climateDespite its semi-arctic latitude, theScandinavian countries have a relatively mildclimate due to the warm coastal Gulf Stream.However, there are large differences betweenthe south and the north.

Denmark is the smallest of the three countriesby area. It consists of the peninsula of Jutland andthe major islands of Funen, Zealand - on whichthe capital, Copenhagen, is situated. Denmarkshares a land boundary with Germany, and isconnected by a bridge to Sweden in the East. Therest of the country is bordered by the Baltic Sea,the North Sea and the Skagerak.

Denmark covers an area of 43,095 sq. km.Agricultural land accounts for 62 % of the totalarea, forests account for 12 % and inland wa-ters account for 1 %.

In addition to Denmark itself, the kingdom alsoincludes the Faeroe Islands and Greenland inthe North Atlantic. Both the Faeroe Islands andGreenland have home rule with an electedcouncil and are represented in the Danish par-liament. The Faeroe Islands and Greenland arenot members of the EU.

Norway shares borders with Sweden, Finlandand Russia. It is a mountainous country withhalf of the area above the timberline. 25 % of

the country is covered by forest, leaving only 3 % for arable land. The distance from north tosouth is more than 2000 km. Only 4.6 millionpeople live in Norway, primarily along thecoast and in the southern part of the country.Nearly 60 % of the population lives in urbanareas, including the four largest cities: Oslo,Bergen, Trondheim and Stavanger.

Sweden is the largest of the Scandinaviancountries, it is similar in size to the state ofCalifornia or Thailand, but has only 9 million in-habitants. 85 % of the population lives in thesouthern half of the country, and the mostdensely populated areas are around the threemajor cities, Stockholm, Gothenburg andMalmö. Sweden is characterised by its longcoastline, dense forests and numerous lakes.The forests cover more than 50 % of the area,farmland only 10 %. Sweden has a milder cli-mate than other areas on the same latitude,but due to the length of the country, the cli-mate is quite varied.

The north of Norway and the north of Swedenhave long and cold winters and sunny sum-mers with moderate temperatures; in June andJuly the sun never sets and daylight lasts 24hours. The temperatures in summer are higherin the southern parts, but only occasionally ex-ceed 25 degrees. In winter, the temperaturesoften fall below zero all over Scandinavia.

6

This is Scandinavia

Gross Domestic Product (2004)Denmark Norway Sweden EU

Gross domestic product at 194,421 201,387 279,008 10,280,060market prices (current prices), € m

GDP per capita in Purchasing 27,200 34,200 25,900 22,400Power Standards, €

GDP per capita in Purchasing 121,7 153,1 116,1 100Power Standards, index

Source: Eurostat

The Scandinavian countries have all experi-enced rapid economic growth since World WarII and are among the wealthiest in the world.The countries are now post-industrial societieswith around two thirds of the workforce em-ployed in the service sector.

All three countries have highly developed for-eign trade. Over the last 20 years European in-tegration has increased through the develop-ment of the European Single Market. Until 1May 2004 this comprised the 15 WesternEuropean member countries of the EuropeanUnion, plus Norway, Iceland and Lichtenstein.The enlargement in 2004 expanded the EUwith another 10 states, most of them inCentral and Eastern Europe.

The table illustrates the GDP of the three coun-tries compared with the average of theEuropean Union.

DENMARK

Specialised industry with a predominance of SMEs Unlike most other industrial nations, industrialdevelopment in Denmark is not linked to theoccurrence of national raw materials. Danishindustry is largely made up of light manufactur-ing and reprocessing, and production is oftencharacterised by a high degree of specialisationin a particular, well-defined field.

Danish industry is, therefore, predominantlybased on SMEs, small and medium-sized com-panies. More than 80 % of all manufacturingcompanies employs less than 20 people. Only1,000 companies have more than 100 em-ployees, but more than half of the industrialworkforce is employed in these companies.The manufacturing industry is dominated bysmall or medium-sized niche productions of ahigh technological standard and mainly intend-ed for professional users. Due to this verycomplex and versatile structure, Danish manu-facturing industry as a whole is not as sensitiveto changes in the world market as other coun-tries where industry is concentrated in a fewsectors.

In total 333,766 businesses (2005) are regis-tered as companies that must adhere to thevalue added tax (VAT) laws. Most of these arein the service sector, less than10 % are manu-facturers and 20 % are trading companies.

Foreign TradeIn 2004 Danish exports (goods only) amount-ed to € 61.3 bn. The largest export markets areGermany, Sweden and the UK. The majority ofexports, 76 %, consist of industrial products(excluding canned meat and canned milk aswell as ships). About 12 % are agricultural, ani-mal produce. Primary export groups are ma-chinery and electrical instruments, pharmaceu-ticals, chemicals, meat and dairy products, fish,furniture, motors and ready-made garments.

In 2004 Danish imports (goods only) amount-ed to € 53.7bn of which 72 % came fromother EU countries. Goods for direct use intrade and industry represent the largest share.The majority are manufactured goods whichare re-exported after further processing.

The second largest group of imports is con-sumer goods representing 30 % of imports.

Imports of fuel represent around 3 % of im-ports. Today, Denmark is essentially self-suffi-cient in energy.

2 Scandinavian economy

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The primary industries represent only 2 % ofNorway’s GDP. Agriculture is limited due toharsh climatic and geographic conditions.Forestry and fishing are still important. In re-cent years, fish farming (notably of salmon)has grown into an industry equally importantas traditional fisheries, representing 1.5 % ofNorwegian exports.

Norway is one of the great shipping nations ofthe world, accounting for 7 % of the world’sfleet.

In total, 439,000 companies (2005) are regis-tered in Norway. Most of these are in the ser-vice sector, while 16 % are in trade.

Foreign TradeNorway is a small country with an open eco-nomy and large foreign trade. Foreign tradecorresponds to 73 % of the GDP. In 2004, ex-ports amounted to € 65.7 bn and imports to €38.5 bn, leaving a trade surplus of € 27.2 bn.The surplus is due to the export of oil and gas,whereas traditional goods have a trade deficit.

The most important trading partners areWestern Europe and the USA.

The geographical structure of imports reflectsNorway’s general foreign trade pattern, whereEurope dominates. Imports from developingcountries in Africa and South America are only1 – 2 %. In Asia, Japan dominates, while new-ly-industrialised nations and China are on theincrease.

The largest group of import products is inter-mediate goods for industrial use whichaccounts for 36 %. Consumption goods arethe second largest group (24.5 %) and capitalgoods number the third largest (21 %).

NORWAY

Petroleum-based economyOffshore production of oil and gas in the NorthSea and further north dominates Norwegianeconomy. This industry represents 20 % of theGDP and about 45 % of the export value, butthe contribution to employment is low. Whilethe industry explains Norway’s high GDP, theeffect on consumption is limited. Most of thesurplus is invested abroad through thePetroleum fund, now totalling more than € 125m.

About 75 % of the Norwegian workforce isemployed in the service sector (2002), with41 % of this percentage working in the publicsector. Employment in secondary industries(manufacturing, mining, construction, utilitiesetc.) accounts for 21 %. The employment in in-dustry has been reduced by more than 50 %from 1980 to 2005.

Swedish industry is to a great extent an assem-bly industry, depending largely on importedraw materials and components. The total ofgoods imported amounted to € 80.9 bn(2004), of which 70 % were goods for the as-sembly industry. The major imports are ma-chinery and transport equipment (47 %),chemicals (12 %) and minerals (8 %). Twothirds of Swedish imports come from the EU,with the major import partners being Germany(18 %) and the UK (8 %). Over the last fewdecades, import from rapidly developing Asiancountries has been increasing.

Scandinavian economy

9

SWEDEN

An industrial country moving awayfrom industry to a large knowledge-based service sectorNatural resources such as timber, hydropowerand iron are used to constitute the resourcebase of the Swedish economy. The manufac-turing industries still have a strong position dueto the availability of raw materials; they consti-tute 17 % of total employment. At the sametime, historically important sectors such as agri-culture and forestry now only account for 3 %of the employment in Sweden.

Resulting from a deliberate transformation ofindustry, Sweden is now one of the leadingnations as regards knowledge-based industryand technology development, such as the in-formation technology and communication sec-tor (ITC). The ITC manufacturing sector consti-tutes 16 % of the total turnover and 10 % ofthe total employment in the private sector.

Another area that has become increasingly im-portant in recent years is the service sector. Itnow has the largest share of employmentcompared with any other sector, and accountsfor more than 75 % of all employment.Notably, a substantial increase is occurring inthe creative industries. The fast-growing devel-opment of design, music and fashion providesSweden with a new source of export incomewhich is steadily increasing.

In total, 885,103 businesses are registered inSweden (2005).

Foreign TradeSweden is an internationalised economy with alarge number of multinational corporations. Theexport amounted to € 99.8 bn (2004). Thevast majority of export commodities constitutemachinery and transport equipment includingcars (48 %), chemicals and manufacturedgoods including paper and wood articles aswell as telecommunication equipment (40 %).Sweden exports mostly to countries within theEU, with the exception of the US (11 %) andNorway (8 %).

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Foodstuffs, live animals, beverages and tobacco

Crude materials, inedible oils and fats

Mineral fuels, lubricants and related materials

Chemicals, manufactured goods

Machinery and transport equipment

Export per major product group (2004)(in % of total exports)

0 10 20 30 40 50 60 70 80 90 100 %

Source: OECD

Foodstuffs, live animals, beverages and tobacco

Crude materials, inedible oils and fats

Mineral fuels, lubricants and related materials

Chemicals, manufactured goods

Machinery and transportation equipment

Import per major product group (2004)(in % of total imports)

0 10 20 30 40 50 60 70 80 90 100 %

Source: OECD

Europe

Africa

Asia

Australia/Oceania

North America 1)

South America 2)

Import by continent (2004)(in % of total imports)

0 10 20 30 40 50 60 70 80 90 100 %

Total imports and exports in 2004 (in bn Euro)

0 10 20 30 40 50 60 70 80 90 100 bn Euro

Sources: Statistics Denmark, Statistics Norway, Statistics Sweden. 1) The figure for Norway includes Central America. 2) The figures for Denmark and Sweden include Central America


Total exports

Total imports

Preferences for developing countriesFor more than 30 years, developing countrieshave benefited from preferential treatmentwhen exporting to developed countries.

The preferences are arranged in the GeneralizedSystems of Preferences (GSP), which applies tothe three Scandinavian countries, although thereare slight differences between the Norwegianand the EU GSP. GSP preferential treatmentmeans that industrial products, with certain ex-ceptions, are entitled to reductions of duty whenexported to the Scandinavian market. For agricul-tural products the system is more complex, ascommented on below.

With the exceptions of bananas, rice and sugar,the Least Developed Countries have beengranted duty- and quota-free access for allproducts under the GSP, including agriculturalproducts. In the EU this initiative is referred toas the Everything But Arms initiative. For ba-nanas, rice and sugar the EU has an exemp-tion, since duty and quota-free access will notapply until 2006 for bananas and 2009 for riceand sugar. However, during the transition peri-od duty-free access is possible within the quo-ta limits. In Norway, the LDCs obtained duty-free access for all products (except arms) from1 July 2002.

The remaining tariff preferences vary consider-ably depending on the country of exportationand the origin of the product. In total, the EUGSP covers about 170 developing countriesand territories in 2005, including the LeastDeveloped Countries (LDCs). Further to theGSP there are other preferential agreements,for instance the Cotonou Agreement whichcovers 79 developing countries in Africa, theCaribbean and the Pacific Ocean (ACP).

Products included in the GSP regime are divid-ed into a sensitive and a non-sensitive catego-ry. Non-sensitive products carry zero duty andsensitive products carry a certain reduction induty. Non-sensitive products are primarily in-dustrial goods, but there are exceptions, suchas textiles. A limited number of agriculturalproducts are also classified as non-sensitive,for example some types of nuts, saffron, grape-fruits and aquarium fish. However, almost allagricultural products included in the GSP areclassified as sensitive.

Norway largely follows the EU GSP, but thereare some deviations. Therefore it is advisableto check the rules on the websites of theEuropean Union http://europa.eu.int and inthe case of Norway at www.toll.no.

For certain agricultural products there may beduty-free quotas, while full or reduced duty ap-plies if the quotas are exceeded. There are alsoseasonal regulations, and defined procedures(such as auctions) for allocating the quotas toimporters.

Which countries benefit from preferences?Within the GSP, developing countries are divid-ed into three groups, Least DevelopedCountries (LDCs), Ordinary GSP Countries andGSP+ countries. As mentioned, the LDCs aregiven more favourable conditions than the ot-her GSP countries.

In order for a country to obtain the GSP it isnot enough to be entitled to the preferences,the GSP must also be implemented by thecountry for the preferential rules to apply.Annex 4 indicates which countries qualify atpresent under the EU and the Norwegian GSPschemes.

Classification of goodsCorrect and accurate classification of goods isof utmost importance for obtaining the prefer-ences. All products that are being traded glob-ally are classified according to an internationalclassification system called the HarmonizedCommodity Description and Coding System,normally referred to as the HarmonizedSystem, or simply the HS.

When the exporter knows the correct HS codehe can then check the product coverage in therelevant agreement or arrangement to seewhether the product is eligible for a preferenceor not. A helpdesk is available in the EU for thispurpose, http://export-help.cec.eu.int.

Customs duties are often applied on a percent-age basis with reference to the customs valueof the goods. For agricultural products so-calledspecific duties, which are based on for examplequantity or weight, may apply. Furthermore, theduties on agricultural products are frequentlycombined, having the consequence that aproduct can have both a specific and a per-centage-based duty.

3 Benefit from lower custom duties

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If a country or product is not covered by anyfree-trade agreement or other preferentialarrangements, the importer has to pay the nor-mal customs duty applicable for the product. Ifmore than one agreement or arrangement isapplicable, the exporter is free to choose theone that is most favourable to him.

Rules of OriginRules of Origin are a set of rules to determinein which country the products have originated.To benefit from lower customs duties, the ex-port product has to originate in a countrycovered by a free-trade agreement or a prefer-ential arrangement. A product is generally saidto confer origin in a country if it is wholly ob-tained or sufficiently processed in that country.

A product can contain elements from othercountries than the country where the goodsare produced. In such cases, the rules of originare applied to determine how much of the ma-terials can come from other countries, or howmuch the product must be processed in orderto allow the product to have originated statusin the producing country.

Benefit from lower custom duties

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How to benefit from lower customs duties - The product must originate in a developing country for which the EU and/or

the Norwegian GSP scheme has been implemented- The product must be covered by the scope of products contained in the rele-

vant GSP scheme (EU or Norway)- The product must satisfy the Rules of Origin - The product must be covered by satisfactory documentation (proof of origin)- Transportation must be directly from the country of origin to Scandinavia (or via

another EU country or Switzerland)- The importer must request (claim) preferential treatment at the time of cus-

toms clearance

Countries belonging to certain groups: ASEAN(South East Asia), SAARC (South Asia) and theAndean Community (in South America) havethe right to use materials from other countriesin their group in the production without losingthe status as country of origin. This is calledcumulation. Exporters from LDCs to the EU canin some cases be granted exemption from therules of origin.

The concept of wholly obtained often refers toan agricultural product grown in the countryand not further processed. For manufacturedgoods, with inputs from other countries, it isnecessary to check the so-called list ruleswhich are available for each product (HS code)and to determine whether the product has un-dergone sufficient processing.

It is essential that the exporter makes sure thatthe product meets the rules of origin, in orderto benefit from preferential treatment. If therules of origin are not met, the importer has topay the normal duty. It is advisable to checkdetails on the websites.

Proof of Origin To prove that the rules of origin are fulfilled,the exporter has to provide the necessary doc-umentation. A GSP proof of origin must be is-sued by the exporter in the developing countryand certified by the customs authorities of theexporting country. The following documents oforigin are valid:• Certificate of origin Form A• Invoice declaration


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The internet address to Form A is includedamong the websites in Annex 2. Instructionson how to complete the certificate can befound on http://export-help.cec.eu.int

The invoice declaration is a standard text (alsoto be found on the websites), which is madeon an invoice (or any other commercial docu-ment) by any exporter. At the time of writing,this is valid only for shipments not exceeding atotal value of € 6,000 in the EU, or NOK25,000 (approximately € 3,000) in Norway.

The exporter should make sure that the infor-mation given to certify the origin of the goodsis accurate and that the certificate or the in-voice declaration is filled in correctly. Alsocheck that the required authorisation, for exam-ple a stamp, has been obtained.

If a product contains material originating from acountry within the European Union, a EUR 1certificate proving the origin of the goods mustbe included in the documentation.

TransportationNormally, the product has to be transported di-rectly from the developing country toScandinavia. This is to guarantee the origin ofthe product and that the product has not beenmanipulated during transport. However, someexceptions do exist, for example regarding tran-sit arrangements from landlocked export coun-tries. It is possible that the product is first ex-ported to other EU countries or Switzerland,and then re-exported to Scandinavia.

Request by importerThe importer must request the relevant prefer-ential tariff treatment at the time of customsclearance. There is no automatic consideration.GSP preferential rates of duty applied must al-ways be documented by a valid proof of originissued in the GSP country concerned.

Importing goods to Scandinavia is governed bya complex set of EU and national directives,laws, regulations and standards. The aim is toensure consumer safety, to protect the environ-ment and limit other risk factors. Differentproduct groups are governed by different typesof legislation.

The importer is responsible for compliancewith the legislation, and local authorities in theimporting country will check compliance.Consequently, the importer will require fromsuppliers that products meet requirements.

The European practice is in accordance withthe international agreements of the WorldTrade Organisation. Control measures for pro-ducts are mainly to be found in the TechnicalBarriers to Trade Agreement (TBT) and theAgreement on the Application of Sanitary andPhytosanitary Measures (SPS). The TBT agree-ment deals mostly with industrial goods, whilethe SPS agreement deals with food safety, ani-mal and plant health.

The control measures comprise two categories: (1) Technical and other requirements imposed

on products (2) Requirements regarding conformity

assessment.

Conformity assessment includes testing, certifi-cation and other measures in order to demon-strate that the product satisfies the product re-quirements.

The requirements are valid not only in the 25Member States of the EU, but also in threecountries that together with the EU make upthe European Economic Area (EEA): Norway,Iceland and Lichtenstein. All 28 countries areobliged to implement the EU legislation in theirown legislation, however, since this can bedone in different ways, there are certain differ-ences among these countries.

Product requirements In the EU, legislation is passed in the form ofDirectives. Each country implements the direc-tives in their national legislation as laws or re-gulations. For many products, the specific re-quirements are included in European stan-dards.

In order to check the requirements regardingyour product for one of the Scandinavian coun-tries, you may need to consult the nationalWTO Enquiry Point or the national authority inquestion.

Further to this, a special contact point inSweden has been established to assist ex-porters from developing countries: www.opentradegate.se.

The TBT and SPS Enquiry Points and the mostimportant authorities are referred to in Annex2. The specific requirements for each of theScandinavian countries and for many productgroups are also available in the Dutch databaseCBI AccessGuide: www.cbi.nl/accessguide.

The Product Safety Directive is an importantdirective relevant for almost all products. Thebasic requirement is that products placed onthe European market must be safe.Furthermore, importers must provide con-sumers with the necessary information, eitherby labelling the product or by giving instruc-tions for the use of the product. Finally, the im-porters should monitor the safety of their pro-ducts and take measures to avoid any hazards.

4 Legal requirements

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If a consumer can prove that a product hascaused him damage, he can seek financialcompensation from the distributor according tothe Product Liability Directive. The distributor isentitled to pass on the claim to the importer,exporter, manufacturer or whoever comes be-fore him in the distribution chain.Some products which are considered to be es-pecially sensitive, such as foodstuffs andchemicals, are covered by separate legislation.

Standards are another important source of in-formation regarding product requirements.Technical standards have been developed byEuropean standardisation bodies and imple-mented as national standards in all the 28countries of the EEA. In Scandinavia, the na-tional standardisation bodies are DanskStandard, Standard Norge and SwedishStandards Institute. The standards can bebought through one of the national standardsbodies or their sales organisations. However,since all the national standards have the sameorigin and usually contain the original text, it issufficient to obtain one copy pertaining to yourproduct group, and this can be used in all 28

countries. The websites of the standards bod-ies are found in Annex 2.

New Approach directives/CE directivesSome of the most important EU directives arethe New Approach directives also known asthe CE directives. These cover more than 20different product groups which represent a po-tential risk for the consumer. All directives areavailable on the website:www.newapproach.org.

The New Approach directives/CE directives on-ly contain the essential requirements regardingthe products. The detailed requirements arecontained in standards, and normally it is suffi-cient to consult the standard for your productgroup. In special cases you can prove compli-ance directly to the essential requirements.

In order to demonstrate that a product is incompliance with all relevant New Approach/CEdirectives the product must be marked withthe CE mark. The marking is the responsibilityof the importer. You are not allowed to affixthe CE mark to any other product, which is notcovered by a New Approach directive. The pro-cedure leading up to the CE mark varies fromone product group to another. Step by stepprocedures can be found on: www.cbi.nl/accessguide.

Demonstration of complianceImporters have to document compliance withlegal requirements. For low risk products, theremay be no specific requirements, or aManufacturer’s declaration may be sufficient.For higher risk products, product propertiesmay have to be documented through laborato-ry test reports or inspection reports.Independent certification that the productcomplies with requirements may be needed inother cases. The requirements regarding thedemonstration of compliance are laid down indirectives and other legislation; practical proce-dures may vary from country to country.

In the case of test reports and certificates thereis always the issue of recognition. Not all labo-ratories and certification bodies are recognisedin Europe. Accreditation by an internationallyrecognised accreditation body will greatly en-hance the value of the test report or certificate.Accreditation is a systematic and independentverification to confirm the competence of theorganisation in question. In cases where

Legal requirements

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New Approach directives/CE directivesFor the areas listed below, the producer has to affix the CE mark to confirm thatthe product satisfies all relevant requirements in the New Approach directives:

• Low voltage equipment• Simple pressure vessels• Safety of toys• Construction products• Electromagnetic compatibility• Personal protective equipment• Non-automatic weighing instruments• Active implantable medical devices• Appliances burning gaseous fuels• New hot-water boilers fired with liquid or gaseous fuels• Explosives for civil use• Medical devices• Equipment and protective systems intended for use in potentially explosive

atmospheres• Recreational craft• Lifts• Pressure equipment• Machinery safety• In vitro diagnostic medical devices• Radio equipment and telecommunications terminal equipment• Cableway installations designed to carry persons• Measuring instruments

European authorities do not recognise the do-cumentation, additional testing or inspectionmay be required when the product arrives inEurope, adding costs and delays. In certain ca-ses, the EU may send inspectors to the coun-try of origin.

Packaging and labellingThe overall aim of packaging is to ensure thesafe and intact arrival of the goods, but thereare also a number of legal requirements forpackaging and labelling. The requirements de-pend on the nature of the goods and whetherthe product is destined for industrial use or di-rect consumer use. A number of EU require-ments have been developed to protect con-sumer health and safety and aims at providingconsumers with relevant information about theproducts.

One EU directive specifies which materials;types of plastic and cardboard are allowed tobe used in packaging in direct contact withfoodstuffs. A number of materials, mainly plas-tics, are not allowed in direct contact with theproducts. Another example is the Directive96/74 EC on Textile Names, which lays down

the rules for the labelling of textiles. Such la-belling is compulsory for the retail trade.

FoodstuffsFood safety is an important issue in Europe,and foodstuff products are governed by an ex-tensive set of regulations. Several incidents inrecent years, where food safety was threaten-ing public health, indicated that the legislationwas not satisfying its objectives. New principleswere laid down in the Food Law RegulationNo 178/2002 based on the food chain “fromthe farm to the fork” principle. All EU memberstates (and the other EEA countries) have im-plemented new legislation accordingly. At thetime of writing, national variations exist, but the

Legal requirements

17

General rules for labelling:• Consumer products must be labelled in the national language of the de-

stined market• Labels and marking must accurately describe the contents of packages• Weight and measures must be stated in the metric system, if applicable• Information on safe use must be included, if applicable• Certain foodstuffs must be marked with the country of origin• For many products CE marking is mandatory

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EU aims at full harmonization of the legislationby 1 January 2006.

The legislation is being continuously devel-oped. Product requirements cover such areasas contaminants, maximum residue levels, hy-giene (HACCP systems), irradiation, labellingand much more depending on the product.The current situation should be investigated forthe product in question.

Meat products, seafood etc. can represent aconsiderable health risk. Therefore, food pro-ducts of animal origin must come from an es-tablishment approved by the EU. The exportingcountry’s food safety/animal health controlssystem also needs approval.

Many products, like fresh meat and fish areinspected and tested upon arrival in the EU.Before being released the products have to beapproved.

More information can be found on: http://europa.eu.int/comm/food

Organic foodstuffs Foodstuffs that are sold as “organic“ mustcomply with EU regulations and be certifiedand labelled accordingly. Certification of theproducts must be conducted by an inde-pendent body and can be quite costly.

The general requirements are laid down inCouncil Regulation (EEC) 2092/91 and specialrequirements to exports from developing coun-tries are laid down in Council Regulation (EC)1788/2001. Each consignment must be ac-companied by a certificate and formalities haveto be dealt with in advance. The strict formali-ties add to the cost of organic products. The EUhas issued a guide to organic farming. TheInternet reference is included in Annex 2.

ToysChildren are considered as especially vulnera-ble consumers and toys represent a productgroup covered by extensive legislation. A spe-cific Toy Safety Directive under the NewApproch/CE directives lays down the essentialrequirements, but the manufacturer needs torefer to the EN 71 standards to find the specificrequirements. Compliance with the standard isconsidered proof that the toy complies withthe requirements of the directive. However,there are many additional regulations such asDirective for Electromagnetic Compatibility (ra-dio noise etc.) which will apply if the toy in-cludes an electronic device. When the require-ments of the relevant New Approch direc-tives/CE directives are satisfied, the producer isentitled to affix the CE mark to the toy.

In addition to this, there are many substancesnot allowed in toys, such as benzene, heavy-metals in electronics, azo-dyes in textiles or ph-thalates in PVC. Finally, toys like other productshave to satisfy the Product Safety Directive.

Legal requirements

The Swedish Ecological label

The Norwegian Ecological label

The EU Ecological Label

The Danish Ecological Label

Further to legal requirements, the market itselfhas developed a number of standards andrequirements. Although their specific naturecan differ from sector to sector, an exporter tar-geting the Scandinavian market must live up toa set of standard expectations from buyers inorder to enter the market successfully.

The competition is likely to be fierce, no matterwhich market you are targeting in Scandinavia.A new business relationship with a Scan-dinavian importer often means that the im-porter will be switching from an existing suppli-er to the new one. If the exporter, in the im-porter’s view, represents a more distant andpotentially risky supplier, a professional andwell-prepared approach will do much to en-hance buyer confidence.

CertificationIn addition to, for instance, the CE mark whichis mandatory for many products, the markethas developed a large number of different cer-tifications which are in principle voluntary, butmay in reality be mandatory. The certificationscan refer to different aspects of a product or toprocedures and standards in the company.Normally, the importer will convey his wishesin terms of certification. A good overview ofthe different types of certification is available atwww.cbi.nl/accessguide, which contains speci-fic information for many product groups.National websites are also available.

Certification of product qualityProduct certification confirms that a productcomplies with specified requirements, or thatprocess requirements are satisfied. A certifica-tion mark or label is often attached to theproduct. Labels can contribute to a positive dis-tinction of your product compared with non-la-belled products and can be effective marketinginstruments. In Europe, a large number of certi-fication and labelling schemes are in operation.

The Scandinavian countries have long experi-ence in environmental labelling. The Swan la-bel is well known all over Scandinavia and itcovers around 60 product groups. The productgroups range from stationery to detergents, fur-niture, and hotels. The requirements concernthe manufacturing, use and disposal of theproduct.

5 Market requirements

Basic customer requirementsCertain customer requirements are common for all business sectors and shouldalways be kept in mind. Some of the most important are:

QualityIt is of vital importance that the product satisfies requirements regarding func-tion, design, durability, reliability, environmental friendliness and other features.Deliveries must be in accordance with the agreed specifications, without errorsor deficiencies. Certain tolerances are often agreed and may be included in theagreement as acceptance criteria. Not only the product itself, but also the pack-aging, documentation etc. may be subject to customer requirements. If the cus-tomer has a complaint, he will expect effective and efficient handling. Productswhich do not conform to these requirements should be corrected without delayand at the supplier’s own expense.

Ability to deliverReliability with respect to delivery is essential. Scandinavian importers are ope-rating on tight schedules and selling seasons are short. Importers will expect theorder to be complete, the quantities as agreed, and the delivery on time. Certainbusiness sectors demand short delivery times and expect willingness to adjustorders at short notice. An exporter’s ability to secure safe and reliable deliveriesis increasingly becoming a competitive advantage equal in importance to price.The future of a new business relationship will therefore depend on the ex-porter’s ability to state a realistic delivery time that can be kept.

Communication Efficient communication requires skills in the English language, which is the onlynon-Scandinavian language you can depend on. Today, e-mail is essential fordaily communication, while fax is used to transmit formal documents. All market-ing information, brochures and websites must be in English and professional as-sistance when translating is recommended. Poor translation will convey the im-pression that the company is not professional.

PricePrice is always of importance, but a low price alone is not sufficient to attractcustomers. Scandinavians tend to consider Value for Money – the value of theproduct and service they receive in relation to the cost.

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Developing countries have also established la-bels in order to enhance confidence in theirproducts and production processes. One exam-ple is the important cut flower export industryin Kenya. Kenya Flower Council has establishedthe Silver Code of Practice, which is bench-marked to EUREPGAP.

Management systems These systems are requirements regarding howthe organisation works, not regarding the re-sulting product. The systematic approach aimsto improve the process as well as the resultingproduct.

The most common form is quality manage-ment systems. Systems according to the inter-national standard ISO 9000 have certified im-plementation in more than 500,000 organisa-tions world-wide. The standard relates to bothmanufacturing and service industries. There arerequirements regarding management and or-ganisation, resource management, process con-trol and improvement. The objectives are to in-crease product and process quality, efficiencyand reliability. ISO certification is also a valuabletool in a company's international marketing toattract Scandinavian buyers seeking effectiveand reliable business partners.

Another widespread form is environmentalmanagement systems. Worldwide, more than66,000 certificates have been issued accordingto ISO 14000. This international standard re-quires the organisation to identify and monitorthe relevant environmental aspects, and to im-prove its performance. However, the standarddoes not set specific targets, for example forpollution levels. Environmentally sound pro-duction (ESP) may be a part of an environ-mental management system, or it may be aseparate system.

In the foodstuffs sector, food safety is the ob-ject of much attention along the entire chainfrom farming, to processing, to the shelves ofScandinavian supermarkets. The HazardAnalysis and Critical Control Point (HACCP)system described earlier is a legal requirementin certain cases but increasingly, the market re-quires much wider application of HACCPsystems.

For additional information on certificationsystems, you may refer to your national stan-dards body. In most cases, the address isfound on www.iso.org.

Codes of conductA code of conduct is a voluntary written policycommitting the supplier to social and ethicalbusiness operations. Companies often basetheir social codes of conduct on the conven-tions of the ILO (International LabourAssociation). A wide variety of social codes ofconduct have been developed over the years.Many companies use their codes as a meansof promotion and marketing.

In the textile and garment industry, most of thecodes are developed by individual companiesand they are specifically addressed to suppliersand contractors through the whole supplychain. Still, requirements may be similar. Forexample, the two large Scandinavian fashionchains H & M and Dressmann both include thefollowing in their supplier requirements:Occupational health and safety, based on ILOconventions regarding child labour, forcedlabour, minimum wages, working hours, moni-toring and inspection of suppliers. The samerequirements apply to subcontractors.

Occupational Health and Safety (HSE) systemsare intended to prevent injuries and diseasesrelated to work conditions. Most countries havelegal requirements regarding this effect, but therequirements are highly variable. In Scandinavia,the standard of HSE is very high, andScandinavian consumers are very sensitive tosubstandard working conditions in companiesproducing for export to Scandinavia. In recentyears, international standards including basiclabour standards based on ILO Conventionshave been developed in an attempt to harmo-nize requirements.

Market requirements

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The Swan label

An integrated management system for foodstuffsThe EUREPGAP initiative has been developed by the main European retailers,based on the concepts of Good Agricultural Practice (GAP). GAP has evolved asa result of the concerns and commitments of a wide range of stakeholdersabout foodstuffs production and security, food safety and quality, and the envi-ronmental sustainability of agriculture. GAP applies recommendations and avail-able knowledge to addressing environmental, economic and social sustainabilityfor on-farm production and post-production processes. EUREPGAP includes spe-cific standards for the production of fruits and vegetables, combinable crops, live-stock, feed, flowers and coffee. The system specifically targets producers outsideEurope.

Terms of delivery and packaging The importance of fast and reliable delivery asa competitive parameter has increased steadilyover the past few years. In many businesses aguarantee of safe and reliable delivery is con-sidered as important as the price of the pro-duct. There is often a zero tolerance of delays,which might lead to cancellation of orders andprobably an early termination of the co-opera-tion.

It is therefore of the utmost importance thatthe exporter, from the start of a new co-opera-tion, states a realistic delivery time. Importersoften plan a long time ahead and it may notbe a problem that the delivery time is long,when this is made clear from the outset.

Packaging serves several purposes. First of all itmust protect the product during the transport,and depending on the type of product, the im-porter may have special requests in relation topackaging and labelling. The importance of ap-propriate packaging should not be underesti-mated in relation to communicating the quali-ties of the product.

Most often products for the retail business arerepacked in order to suit special consumerrequirements or in order to market and pro-mote the product. Such adaptation of the pack-aging is most often agreed in close co-opera-tion with the importer who has access to mar-ket information and requirements.

Transport of goods The transport of goods from developing coun-tries to Scandinavia represents a considerablecost. The cost and the importance of safe andreliable transport make research necessary inorder to find the best possible means of trans-port.

In order to specify who pays for which parts ofthe transport, and where the liability transfersfrom the one party to the other, theScandinavian importers will normally refer tothe Incoterms.

The Incoterms 2000 form an internationallyrecognized tool, developed by the InternationalChamber of Commerce, clarifying the responsi-bility for arranging and paying for the transportand insurance. A good descriptive presentationof the various forms and definitions can befound on www.iccwbo.org/index_incoterms.asp.

The chosen type of Incoterm will be reflectedin the export price. Often the importer will beresponsible for paying the transport and, if newto the market, may want information and ad-vice from the supplier on relevant options.

In most cases it is recommended for all butthe most experienced exporters to workthrough a forwarding agent or shipping agencywhen initialising export to Scandinavia. Mostinternational freight forwarders have offices inthe Scandinavian capitals and are able to pro-vide a range of different services. The use oflocal postal services for international transportof goods tends to be slow and unreliable andshould be avoided, unless specifically agreedwith the importer.

PricingIn calculating the export price, a number of fac-tors apart from your own costs and profit, mustbe taken into account. Some of the most im-portant are:

The type of product and marketThe price will vary depending on the supplysituation and whether there is a shortage ofthe product. Regardless of the supply situation,products in different categories tend to havevery different price structures. On consumerproducts such as garments or accessories, theretailer mark up can be up to 300 % depend-ing on the type of garments. Basic consumerproducts such as daily necessities have muchlower mark-ups.

The competitive situation in the marketPricing cannot only be based on cost levelsand mark-ups. In the end, the price has to becompetitive compared to other products in themarket. Market research should include theprice level of competing products in your targetmarket.

The number of intermediariesAll intermediaries in the distribution chain arein business to deliver a service and earn aprofit. In recent years the tendency has beento reduce the number of intermediaries in or-der to keep prices down. Many large retailersskip the wholesaler and buy directly from theimporter, or they handle the import themselvesin order to keep down prices.

Market requirements

21

Transport, insurance and duty costsTransport and insurance costs must always betaken into consideration when setting the ex-port price. The Incoterms 2000 clarifies the re-sponsibility for arranging and paying for thetransport and insurance. If you offer Free onBoard (FOB) the importer will carry the cost ofthe main carriage and will expect a lower pricethan if you offer Cost, Insurance, Freight (CIF),where the seller carries the cost of the maincarriage.

Value added tax (VAT) and surtaxesValue Added Tax (VAT) is levied on practically allproducts in Scandinavia, imported as well as do-mestic. The general rate is 25 % (2005), butNorway and Sweden have reduced rates for cer-tain goods, such as foodstuffs and transpor-tation. Furthermore, there are excise dutieslevied on a national basis for certain productssuch as motorcars, alcohol and tobacco. Suchduties may be substantially heavier than the VAT.

Market requirements

22

From export price to retail price

FOB (exporter's selling price): 100

Freight, insurance etc.: 15

CIF price: 115

Duty (if applicable, 5-14 %): 13

Landed cost: 128

Importer's/wholesaler's mark-up* (10-50 %) 45

Wholesale price: 173

Retailer's mark-up* (40-120 %): 104

Retail price (excluding VAT): 277

VAT (25 %): 69

Selling price to consumer: 346* The mark-ups depend on type of product, distribution channels used and the competitive situation.

Exporters often quote CIF Copenhagen/Stock-holm/Oslo prices to Scandinavian importers.The CIF price thus includes all domestic freightcosts, ocean/air freight and insurance, but notimport duty or VAT. The rate of duty usuallyranges from 5 – 14 % on industrial products,(except imports from LDC countries, which arenormally duty-free). Based on the landed costthe importer will calculate his mark-up, de-pending on the type of product etc.

In order to be competitive in price it is increas-ingly common that the importer sells directly tothe retailer and skips the wholesaler link – theimporter and the wholesaler are merged intoone link.

Terms of paymentTerms of payment are normally an issue of ne-gotiation between the importer and exporter.The importer will be interested in getting thebest possible conditions in terms of credit,whereas the exporter will be interested in fastand reliable payment. The most commonlyused terms of payment are: Cash in advance,Letter of credit, Documentary collections, andOpen Account.

Cash in advanceCash in advance provides 100 % reliability forthe payment, and the cash flow is positive.This term is, however, rarely used if the co-op-eration is new, since it requires complete trustfrom the importer without prior experience ofthe supplier's dependability. Cash in advance issometimes used when the exporter producesan exclusive range of products based on theimporter’s specification. However, if the co-op-eration continues, the importer will normallyrequire a period of credit.

Market requirements

23

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Letter of CreditLetter of Credit (L/C) is a frequently used termof payment. The importer instructs his bank toissue an L/C in favour of the exporter. The L/Cis advised through the exporter’s bank.Payment is made to the exporter against thepresentation of documents that comply withthe L/C. An L/C favours both parties in thesense that the exporter is sure to receive hispayment after having met his obligations, whilethe importer avoids the risk of paying in ad-vance. An L/C is, however, quite costly in termsof high banking fees for the importer. Normallythe importer will accept a request for an L/Cfor the first few shipments but will subsequent-ly wish to negotiate smoother, cheaper andless bureaucratic terms of payment.

Documentary collectionsWhen using the term Documentary collections,the exporter, after shipping the goods, presentsa set of documents (invoices, transport docu-

ments etc.) to his bank. The bank forwards thedocuments to a bank in the importer’s country.The documents are released to the importeragainst his acceptance of a Bill of Exchange(Documents against Acceptance) or his pay-ment (Documents against Payment/Cashagainst Documents). Using DocumentaryCollections can represent a risk for the exporterif the importer for one reason or anotherchooses not to receive the documents and theproducts. In this case the exporter could findhis goods stranded in the import country.

Open AccountThe least bureaucratic, but also the most riskyterm from the exporter's point of view, is anOpen Account. After shipping the goods, theexporter sends a set of documents (invoices,transport documents etc.) directly to the im-porter. The importer makes payment when it isdue, as specified in the invoice.

Market requirements

Getting in contact with potential buyersEntering a new market requires long-term plan-ning and substantial efforts. This includeslearning the business culture and commercialpractices. Before identifying the potential cus-tomers it is crucial to analyse the market cha-racteristics, major players and opportunities.

The competition on the Scandinavian market isfierce and newcomers have to make a sus-tained effort to keep up with market demands.However, once a functioning customer relation-ship is established, there are good chances oflong-term commitment from the Scandinavianside.

Searching the internetToday, the internet is the major source of infor-mation on new markets. Many companies pub-lish information on their product range and dis-tribution networks, but are less open with de-tails on their purchasing practices. Contact de-tails are often found more accessible in onlinedatabases. Examples are www.kompass.comand www.europages.com. Links to other rele-vant websites are presented in Annex 2.

Trade fairsTaking part in and visiting trade fairs is an effi-cient way of getting acquainted with a newmarket. At the leading fairs, the main actors inthe sector will be present. Before exhibiting it isoften advisable to participate in the fair as avisitor. A thoroughly prepared and well-execut-ed visit to a trade fair can be a cost-efficientmarket research. At Scandinavian fairs, manyexhibitors are wholesalers or importers andtheir target group is the retailers. Approachingthe exhibitors with information on new pro-ducts is a very efficient way of getting in con-tact with the buyers.

Visiting a trade fair will also provide the ex-porter with information on the latest develop-ment, trends and fashions of the sector. Thiswill enable the exporters to adapt their offer inorder to make it relevant for Scandinavian im-porters.

To get more information on Scandinavian fairs,visit Fairlink, the Scandinavian Trade FairCouncil at www.fairlink.se. All fairs in theScandinavian countries are listed on this web-site.

6 How to access the Scandinavian market

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There is a growing trend that Scandinavian im-porters visit producers in developing countriesbefore starting a new co-operation. Many importpromotion offices are active in organising grouptours for interested businessmen.

The trade promotion services in Denmark,Norway and Sweden offer useful services.

Business cultureEach of the Scandinavian countries has theirown national culture, but there are so manysimilarities that it makes sense to talk about aScandinavian culture and a correspondingScandinavian business culture. Here are anumber of key points that are worth studyingwhen starting co-operation with a Scandinavianpartner:

Rules before relationsIn business, Scandinavians put rules before re-lations and normally there is a clear distinctionbetween personal and professional relations.The Scandinavian may not seem very interest-ed in getting to know his trade partners per-sonally, but this does not mean that he is notinterested in doing business with them.

How to access the Scandinavian market

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Business tripsOnce the market opportunities have beenexamined, the exporter needs to approach thebuyers, preferably for a personal meeting. Theimporter will expect the exporter to be preparedfor the meeting on a level where he can an-swer all relevant questions regarding price,quality, terms of delivery etc. An exporter mayhave to meet the potential buyer several timesbefore a deal is concluded and should not ex-pect too much from his first visit to Scandinavia.Before the visit, the exporter should investigatethe relevant legislation and market require-ments applying to his products.

Exporters from most developing countries willneed a visa to enter the Scandinavian coun-tries. Visas should be applied for at Danish,Norwegian and Swedish embassies severalmonths before departure. Before issuing a visa,many embassies require substantial documen-tation, and sometimes an invitation from thebusiness partner. The procedure needs to beinitiated in due time. Arranging business dele-gations to Scandinavia between the middle ofJune and the middle of August is not advis-able, as this is the holiday season.

PunctualityBeing punctual is not only regarded as a sign ofrespect but also of efficiency. Being late for anappointment is regarded as lack of respect forthe person you are meeting and his time.Scandinavian businessmen will have little un-derstanding for the cultural variations on thissubject. Punctuality in arriving at meetings willbe looked upon as an indicator of the punctua-lity of supplying the goods. Should a delayoccur, it is important to give notice as soon aspossible. If an exporter is late for a meetingwithout having given notice, the Scandinavianpartner is likely to consider him unprofessional.

The stressing factor of time can also been seenin everyday business contacts; it is commonpractice to set a deadline for something to bedone or a decision to be made and deadlinesare expected to be kept.

Power distanceScandinavians are very keen on equality.Compared with many other countries the busi-ness hierarchy is fairly 'flat', and the power dis-tance relatively small between persons on dif-ferent company levels. It is important to be po-lite and respect staff members on all levels ofthe hierarchy.

Negotiating business termsThe Scandinavian business partner is likely tobe totally frank regarding what he expects fromyou and what he himself can contribute with. Itis important to be very precise when negotiat-ing terms. Exporters should not accept anyterms that they are unable to fulfil. “No”, is aperfectly acceptable word in Scandinavia andnobody will be offended by an explanation thatdelivery according to a certain specification isnot possible as long as the specification hasnot been agreed on. In many cases it ispossible to make allowances from the Scan-dinavian side to make the deal come throughanyway.

It is of paramount importance, however, not tomake promises that cannot be kept 100 %.Delivery time is crucial in many sectors. If theimporter knows that the delivery time is 3months he is often able to work with that, butif the promise was 3 weeks and the deliveryarrives after 2 months the cooperation is likelyto end immediately. No further orders will beplaced as the importer will find that this ex-porter cannot be trusted.

The contractScandinavians like written contracts. In somecultures a contract is a letter of intent, and thebusiness partner is satisfied if the exporterdoes his best to live up to the terms. This isnot the case in Scandinavia where the busi-ness contract is considered irrevocable and apartner will expect the contract to be fulfilledto the letter. If the trade partner does not com-ply, he will be considered unprofessional oreven dishonest. Do not sign a contract unlessyou are 100 % sure that you can live up to allterms for as long as the contract stands.

Dress code and communication styleScandinavians are often more informallydressed than people of other cultures. This isnot to be taken as a sign of disrespect; rather itshould be kept in mind when approachingnew connections, that a casually dressed per-son may be the CEO. Scandinavians are verystraightforward and informal and prefer to gostraight to the point. At a business meetingthere is not likely to be much small talk.Feedback and criticism is made openly in ne-gotiations and business discussions. Such feed-back should be considered as a sign of seriousinterest, not disrespect.

Women in businessScandinavia has the world’s highest rate ofwomen in the workforce. Exporters are likely tomeet women at any level of the companiesand exporters should be prepared to work withwomen at all levels.

GiftsIt is not common for business associates togive each other gifts, and legislation againstbribes is severe. In order not to embarrass yourScandinavian business partner the best choiceis to only present gifts of low value.


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The industrial marketThe majority of foodstuffs imported from de-veloping countries to Scandinavia are raw ma-terials and food ingredients which are meantfor the processing industry, where the productsare further processed before being exported orsold locally.

In general, Scandinavia's foodstuffs sector iscurrently experiencing a process of internation-alisation where the tendency is fewer and larg-er players, a tendency which is very significanton the industrial market.

The import of foodstuffs to the foodstuffs pro-cessing industry is often handled by specializedbuying companies and to a lesser degree bythe industry itself. Non-stocking sales agents arealso common in this sector. The purchasing isdominated by a very high degree of profession-alism. The buyers are specialised and thereforehave in-depth knowledge of the products.

The reseller marketInternationalisation affects both the structureand range of goods on offer in the foodstuffssector. There is a strong trend towards fewerand larger players, with growing integrationbetween wholesaling and retailing.


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Adapt to the relevant business sectorEntering a market requires sound knowledgeon the specific sector. Three sectors are tradi-tionally of special interest for exporters fromdeveloping countries.

Case 1: The foodstuffs sectorAlthough Denmark is a major exporter of food-stuffs, Scandinavia's geography limits agricultu-ral production and makes food products a keyand necessary import. Thus, a large part of im-ports consists of products that cannot begrown economically in Scandinavia, or productsthat are not produced at all, such as wine, cer-tain vegetables and fruits, sweet corn, rice, oils,raw coffee, tea and cocoa, as well as a rangeof seafood.

Several of the larger retail chains are also theirown importers.The imports of fresh fruit and vegetables fromoutside Europe is dominated by three large im-porters: Lembcke in Denmark, Bama inNorway and the Saba Group (owned by Dole)in Sweden. Other large importers are DSG andNAF International in Denmark, and the ICAGroup in Sweden and Norway.

Scandinavia's hotel, restaurant and institutionfoodstuffs service sector has grown consider-ably over the past decade. This is attributed to achanging lifestyle and reflects an increasinglyconvenience-oriented and time-conscious po-pulation. It is estimated that today more than20 % of meals are eaten outside of the home.Moreover, sales in this sector are expected toincrease by 10 % per year in the next fiveyears. Supply of groceries to this sector is domi-nated by a few specialized wholesalers in eachcountry: Dagrofa and Metro in Denmark,NorgesGruppen and the Reitan Group inNorway, and Axfood/Servera and the ICA Groupin Sweden.

In addition, there is a flourishing group ofmedium-sized wholesalers that import andtrade foodstuffs and beverages. Some of theseindependent wholesalers are focused on prod-ucts to the growing market for ethnic and certi-fied organic food products.

Consumer trends and business prospectsScandinavians have a taste for new food styles,which has increased the demand for ethnicfood products from around the world as wellas exotic fruits and vegetables, especially thosethat can be supplied all year round.


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Distribution channelsAs a consequence of the centralisation, theScandinavian distribution system is todaydominated by five large trading groups thataccount for over 80 % of both the retail andwholesale market:

• Coop Norden (owned by the retail coopera-tive organizations in Denmark, Norway andSweden) is Scandinavia's largest consumergoods retailer with 30 % of the market. CoopNorden is a member of NAF Internationalwhich imports foodstuffs from all over theworld through their offices in Copenhagen toDenmark and Norway. Saba Trading is re-sponsible for the imports of fruits and vegeta-bles to Coop Sweden.

• The ICA Group has retail and wholesale activ-ities in Sweden and Norway and holds about25 % of the market. Imports are carried outin cooperation with Kesko, Finland's leadinggrocery retailer, and together with the pan-European AMS buying group.

• United Nordic is a purchasing organizationowned by Dagrofa/Supergros in Denmark,NorgesGruppen in Norway, and Axfood inSweden and Finland. The United Nordicpartners account for about 25 % of themarket.

• DSG (Dansk Supermarked Group),Denmark's second largest foodstuffs retailer,is also expanding its foodstuffs retailing activi-ties into Sweden as well as other Europeancountries.

• The Reitan Group, based in Norway, is en-gaged in retail activities in Norway, Denmarkand Sweden.

Several foreign retail chains have in recentyears started to penetrate the Scandinaviangrocery market, both through partnershipagreements and by entering certain segmentsof the market, for example the discount andcash & carry markets. This means increasedcompetition which will particularly influencethe lower-priced segment.

Specialized wholesalersThe distribution of foodstuffs to certain seg-ments is carried out through specialized whole-salers, of which some are integrated with thelarge retail groups and some independent. As arule, these wholesalers also act as importers.

Scandinavians are also health conscious, with astrong concern for the environment, which hastranslated into a growing demand for organicfoodstuffs and health foodstuffs. Ethical valuesare also high on the agenda, not the least inthe media; resulting in increased consumerawareness and a growing pressure on trade toimplement Code of Conduct programmes andto introduce Fair Trade labelled products.

Furthermore, the Scandinavian countries pos-sess one of the highest food safety standards inEurope, with regulations sometimes stricter thanEU requirements. In addition, all large whole-salers have introduced quality programmescovering the products from raw materialrequirements, through processing and handling,to packaging demands.

The best prospects for exporters are in areaswhere domestic production is not sufficient ornon-existent. Additionally, there is a growingdemand for ethnic foodstuffs that are uniquelyassociated with different parts of the world.

Case 2: Garments and home textilesThe garment and home textile markets aresimilar all over Scandinavia. The Scandinavianmarket is characterised by seasonal changes ofclimate. The market also experiences quickchanges due to trend-sensitivity. Informationabout Scandinavian fashion trends can beobtained at www.moderadet.se.

The turnover of clothing is in the order of€ 3.5 bn both in Norway and Denmark, and € 6.0 bn in Sweden. Home textiles have aturnover of approximately € 400 – 600 m ineach of the three countries.

Distribution channels Clothing and home textile products are import-ed into the Scandinavian markets mainly by re-tailers and wholesalers (traditional, brand sup-pliers and sourcing companies). In most casesthe initiative to trade is coming from the im-port side.

The GATT Agreement on Textiles and Clothing(the Multifibre Agreement) expired on 31December 2004 and the entire textile and gar-ment trade became a free market withoutquotas. Until the end of 2007, however, thereare quotas on selected types of garments fromChina (e.g. t-shirts, shirts, trousers, sweaters,bras). Consequently an export license is stillnecessary for these products before shipmentfrom China. However, always check http://europa.eu.int/comm/trade/index_en.htmfor further changes in future.

The Norwegian and Swedish markets are moreconcentrated than the Danish. The Danishwholesalers are important suppliers to the re-tailers in Sweden and Norway. Denmark is forthis reason the second largest supplier countryof clothing to Sweden, second only to China.

Swedish retail chains cross the Scandinavianborders to a larger extent than their competi-tors in Norway and Denmark, but Norwegianand Danish retailers are also found all overScandinavia. Examples of countrywide chains,some of them found all over Scandinavia, areH&M, Lindex, Dressmann and Bestseller. InDenmark more than 20 % of clothing is soldin food hypermarkets. Some of the importantactors in the home textile sector are IKEA, Jysk,Hansen & Dysvik. International chains aresteadily increasing their presence but still repre-sent a small share.

Trade fairsThe most important clothing fair on theScandinavian market is the CopenhagenInternational Fashion Fair (CIFF) which is heldtwice a year. Visit the website www.ciff.dk formore information. The CPD in Düsseldorf,Germany is another important fair visited byScandinavian buyers.

For home textiles, the most important fairs takeplace in Frankfurt, Germany. The Heimtextil,Tendence Lifestyle and Ambiente are the mostimportant. Local fairs can be found in eachScandinavian country.


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Case 3: HandicraftsScandinavians will attach a different value tohandicrafts from their own country than tohandicrafts imported from developing coun-tries. Scandinavian handicrafts are often of ex-cellent quality, but due to the high labourcosts, they are also quite expensive. The highprices, though, also limit the size of this con-sumer segment. Consequently, the large ma-jority of handicraft products are imported fromcountries where labour costs are lower; oftenadapted and developed to fit Scandinavianconsumer preferences.

There are mainly four market segments forhandicrafts in Scandinavia:

Seasonal productsSeasonal products constitute the largest seg-ment in terms of import value. They cover de-corating products used on special festive occa-sions. The most important holidays inScandinavia are Christmas and Easter, whenhomes are decorated with seasonal orna-ments; contrasting with the otherwise simpleand practical home decorating style favouredby Scandinavians. The types of product usedon these occasions are only sold aroundChristmas and Easter and are therefore subjectto great seasonality.

The utility segmentThe utility segment is the second largest interms of import value, and by far the most im-portant. Scandinavian consumers prefer deco-rative articles that also serve a practical pur-pose. People buy products for personal usethat address a practical need in the home en-vironment. The articles are bought when theneed arises. Examples are baskets in which tostore other items, flower pots, and candle hold-ers etc.

The purchase of products within this categorycan be done in a variety of shops, from super-markets and department stores to specialisedgift shops. Value for money is the key factor forconsumers when purchasing utility products.

Art objectsThe art objects segment contains productswith an artistic, but no functional value, suchas woodcarvings, masks or statuettes.

Depending on artistic quality these objects canbe purchased in specialised stores, art galleries,in retail or gift stores. As Scandinavians tend tofavour functionalism, this segment is of a verylimited size.

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The souvenir segmentScandinavians may pay a high price for handi-crafts domestically produced, while traditionalhandicrafts from far-away countries tend to beperceived as ‘ethnic’ and fetch low prices.Tourists on holiday will buy products that theywould never buy at home; as a memento ofthe time, place and people they want to re-member.

Exporters should, therefore, not draw the con-clusion that best-selling articles to tourists intheir local market could be exported. Exportprice levels are also much lower than the localprices paid by visiting tourists.

Consequently, the market for souvenir productsfrom developing countries is very limited inScandinavia, unless, by chance, they fit into acurrent fashion or seasonal trend.

Trends and fashionMost handicraft articles are subject to seasonalchanges in fashion. The Scandinavian marketsare considered to be among the most trend-sensitive in the world, and buyers are alwayslooking for novelty. For example, a traditionalbasketry design will not be attractive to a buyerwho has already had the same design on salein a former season. Market information andproduct development are essential to stay at-tractive in a market where styles, colours andmaterials change by the season and the year.Exporters need to collaborate with importers inorder to develop and adapt their products to fitcurrent market trends.

Handicrafts are often displayed and marketedto consumers in collections, where one pro-duct matches the other through a unifyingtheme, pattern, colour, etc. Apart from makingan attractive presentation, when the productsmatch they also help to sell each other. Thisshould be kept in mind when new productsare being developed, since the increased salesgenerated by such matching collections alsomake them more appealing to importers.

Channels of distributionImporting wholesalers selling to retailers domi-nate the import of handicrafts to Scandinavia.Some of the bigger retailing groups do theirown importing. Agents are very seldom used inthis business.

Many Scandinavian buyers visit trade fairs inthe Far East to meet suppliers and look for newproducts. Many wholesalers exhibit at the lead-ing fairs. In Sweden, these are Formex, held inStockholm twice a year, www.formex.se andIndex, held in May every year in Gothenburg,www.indexgbg.se. In Norway, the fair Gave &Interiør (Gift and Interior Trade Fair,www.messe.no/gave) is held in late Januaryand August each year and in Denmark the fairFormland www.formland.dk is held twice ayear in February and August in Herning. In ad-dition, the European fairs Ambiente/Tendancein Frankfurt, Germany and Maison & Objet inParis, France are important venues for manyScandinavian handicrafts importers.


Denmark: DANIDAThe Danish International DevelopmentAssistance. DANIDA operates under theMinistry of Foreign Affairs. The developmentaid is focused on a number of the poorest de-velopment countries. Development of the pri-vate sector in these countries has been a priority for a number of years and DANIDAoperates with a number of different pro-grammes:

Business Sector Support Programmes areprogrammes aimed at building up the privatesector in the countries, by supporting localorganisations, providing capacity building, im-proving the legal framework etc.

The Private Sector Development Programmeis a match-making programme aimed at creat-ing long- term co-operations between Danishcompanies and companies in developingcountries.

Subsidy to import from developing coun-tries is a facility where Danish importers canapply for support in order to start or expandimport from developing countries.

IFU The Industrialization Fund for DevelopingCountries provides risk capital for investmentsin developing countries and the Mixed CreditsScheme provides favourable repayment condi-tions on loans for the financing of Danish sup-plies of capital equipment for projects.

DIPO The Danish Import Promotion Office DIPO’s aim is to assist exporters from develo-ping countries in their efforts to enter theDanish market. DIPO also assists export pro-motion organisations and embassies.

DIPO operates under a contract between theDanish International Development Assistance(Danida) and the Danish Chamber ofCommerce (HTS). The office is integrated inthe Chamber of Commerce, but is financed byDanida.Besides DIPO, Danida operates a number ofother programmes in order to import to the pri-vate sector and support export from developingcountries. For more information visit the websitewww.um.dk/en.

DIPO assists exporting companies in the de-

veloping countries by helping them to findcontacts among Danish importers and by pro-viding them with market information about theDanish market. DIPO receives and assists tradedelegations and arranges meeting programmesfor delegations and individual business people.Priority is given to exporters from the 16 focuscountries for Denmark’s development co-ope-ration, the so-called Programme Countries:Benin, Burkina Faso, Egypt, Ghana, Kenya,Mozambique, Tanzania, Uganda, Zambia,SouthAfrica, Bangladesh, Bhutan, Nepal, Vietnam,Bolivia and Nicaragua.

Visit DIPO's website www.dipo.dk for more in-formation about the services provided. UnderRegister you business offer on the website youcan register your company and business offer.Suitable business offers are advertised on theMarket place on the website and business of-fers screened by DIPO will be sent directly torelevant importers by e-mail. On request DIPOassists Danish importers to identify suppliers indeveloping countries. All services are free ofcharge.

Norway: NoradNorad is the Norwegian Agency forInternational Development, an agency underthe Ministry of Foreign Affairs. Norad providesthe aid administration with technical advice, fi-nances Norwegian and international aid organi-sations and provides quality assurance andevaluation of poor countries.

Norad supports the development of trade inmany ways, mainly by developing the supplyside and the infrastructure in developing coun-tries and by facilitating imports to Norway andthe international market. More informationabout Norad is available on the websitewww.norad.no.

HSH - Norwegian Office of ImportPromotionThe operational contact with exporters and im-porters is handled by the Federation ofNorwegian Commercial and ServiceEnterprises (HSH). HSH represents both thetrade sector (wholesalers, retailers, importers,agents and a wide range of industries) and theservice sector (travel agencies, rental business-es, advertising agencies and many more).Exporters from developing countries, businesssupport organisations (working as an interme-

7 Assistance to exporters

33

diary organisation for business developmentand trade promotion) and Norwegian im-porters are invited to register at the website ofthe Office for Import Promotion (OIP),www.hsh-org.no. You will then be able to ac-cess customised information. Priority is givento low and middle-income developing coun-tries.

Under their agreement with Norad, HSH OIPpromotes imports from developing countries invarious ways, such as capacity building, studiesof private sector development, the organizationof trade missions from Norway to developingcountries and audits of manufacturing plants.

The HSH OIP website gives access to a data-base where suppliers in developing countrieswho are interested in the Norwegian marketcan register. The database is operated by theCBI (see below) and companies are screenedby CBI before they are added to the database.Companies in Norway who are interested inimporting from developing countries may regis-ter in the database and check potential suppli-ers.

The HSH OIP website also gives access tostudies of the Norwegian market for specificsectors such as textiles and clothing, handi-crafts etc.

Sweden: SidaThe Swedish Agency for International Develop-ment Cooperation, Sida, is a governmentagency under the Ministry for Foreign Affairs.The goal of the Swedish development co-oper-ation is to help create conditions that will en-able poor people improve their lives. Sida’strade support therefore aims to assist develop-ing countries integrate into the world economyin a way that makes it possible for them tobenefit from trade, promoting sustainable,poverty-reducing growth.

In this work, Sida supports trade development,including the capacity to fulfil quality require-ments of export markets and export promotion,which is closely related to the activities interms of private sector development. It also in-cludes establishing regulations and structuresto ensure that imports meet national consumerhealth and safety standards.

Trade Promotion Programme of theSwedish Chambers of CommerceThe Swedish Chambers of Commerce have aspecific programme in order to support ex-porters from developing countries. The pro-gramme is co-funded by the SwedishInternational Development CooperationAgency, Sida and is open to all developingcountries in Africa, Asia, Latin America, Easternand Central Europe. The programme assists business supportorganisations in developing countries and theembassies based in Sweden with trade promo-tion. Sector and product development projects arealso carried out in a number of developingcountries. Detailed information on all services providedcan be found at: www.cci.se/tradeContact: [email protected]

Market information. The Chambers ofCommerce produce market information for alarge number of sectors and product groups.The market briefs provide information on im-port patterns, product descriptions, distributionchannels and business opportunities and canbe downloaded at www.cci.se/marketbriefs

Business contacts. Chamber Trade is an inter-net-based meeting point for companies all overthe world. Exporters can register their businessoffers and search for partners and customers.Registration is free of charge, and the databaseis promoted towards Swedish and internationalbusiness communities. Visit www.chambertrade.come-mail [email protected].

Incoming delegations. The Chambers can as-sist in coordinating programmes for incomingbusiness delegations from a number of de-veloping countries. Special matchmaking withSwedish importers can be arranged as well asspecific training arrangements.

Assistance to exporters

34

Open Trade Gate Sweden is a special facility set up by the Government ofSweden to strengthen the capacity of develop-ing countries to trade and export to Sweden. Open Trade Gate Sweden provides exporters indeveloping countries with free information ontrade rules and regulations applicable to theSwedish and the EU market. Exporters will alsoget assistance to interpret trade rules and regu-lations that exporters need to comply with.

Open Trade Gate Sweden will also investigateand help overcoming any trade barriers in theSwedish trade regulations, if applicable.

Website www.opentradegate.se Contact: [email protected]

Other actors:

ITC: International Trade CentreITC is the technical cooperation agency of theUnited Nations Conference on Trade andDevelopment (UNCTAD) and the World TradeOrganisation (WTO) for operational, enterprise-oriented aspects of trade development. ITCsupports developing and transition economies,and particularly their business sectors, andworks in six areas: Product and market devel-opment; development of trade support ser-vices; trade information (including market sur-veys); human resource development; interna-tional purchasing and supply management;needs assessment, programme design fortrade promotion.

ITC regularly issues a World Directory of TradePromotion Organisations and other ForeignTrade Bodies. More information is available onITC’s website www.intracen.org.


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36

CBI: Centre for the promotion of imports from developing countriesThis agency of the Dutch Ministry of ForeignAffairs was established in1971 and promotesimport to the European market through a rangeof products. More information about CBI isavailable on www.cbi.nl. The website is fre-quently updated and free of charge; however,you are required to register.

CBI AccessGuide www.cbi.nl/accessguide is aweb-based information service that provides adetailed review of requirements regarding theEuropean market, which in effect are importantnon-tariff trade barriers. Both legal and themore informal market requirements (such aslabels, management systems and codes ofconduct) are covered. The database relates toprimary industry products (agricultural, forestryor fishery), consumer products, industrial pro-ducts and services; more than 30 market sec-tors are included. There are links to a largenumber of additional websites. In 2005, thedatabase was extended to include specific re-quirements in Norway that vary from the EUrequirements.

EU market information database is an exten-sive and up-to-date market information data-base containing EU market information such asmarket size, distribution, prices and margins,marketing guidelines and EU market access re-

quirements. Market surveys are available forabout 40 product groups. The surveys are re-gularly updated and are available both in paperand electronic format. Several studies are spe-cific to the Norwegian market and are availableon the HSH OIP website, see above.Furthermore, several trade related manuals canbe downloaded. From 2006, the database willinclude information presently found in theAccessGuide. This part of the database will beextended to include specific requirements re-garding Denmark and Sweden, in addition toNorway.

Export development programmes are de-signed to assist entrepreneurs in developingcountries in entering and thereafter succeedingon the EU market. Selected participants receiveindividual support over several years throughon-site consultancy, training schemes, trade fairparticipation, business-to-business activitiesand general market entry support. More limitedtraining programmes are also offered.

The export readiness test available onwww.cbi.nl can help you to assess your exportreadiness and guide you in preparing yourbusiness for the EU market. The test takes onlya few minutes to complete and provides youwith feedback on strong sides and areas forimprovement.

ACP African, Caribbean and Pacific Ocean

CBI Centre for Promotion of Imports from Developing Countries

CE Common European marking of products under New Approach directives

CEN The European Standards Organisation

CENELEC European Committee for Electro-technical Standardization

CEO Chief Executive Officer

CIF Cost, Insurance and Freight included

DANIDA The Danish International Development Assistance

DIPO Danish Import Promotion Office for Products from Developing Countries

€ Euro, the European monetary unit

EEA European Economic Area

ETSI European Telecommunications Standards Institute

EU European Union

FOB Free On Board

GAP Good Agricultural Practice

GATT General Agreement on Tariffs and Trade

GDP Gross Domestic Product

GMT Greenwich Mean Time

GSP General System of Preferences

HACCP Hazard Analysis and Critical Control Points

HS Harmonised Commodity Description and Coding System

HSE Occupational Health and Safety

HSH Federation of Norwegian Commercial and Service Enterprises

HTS Danish Chamber of Commerce

ILO International Labour Organisation

ISO International Organisation for Standardisation

ITC Information Technology and Communication

ITC International Trade Centre

L/C Letter of Credit

LDC Least Developed Country

Norad Norwegian Agency for Development Cooperation

OECD Organisation for Economic Cooperation and Development

Sida Swedish International Development Cooperation Agency

SME Small and Medium-sized Enterprise

SPS Sanitary and Phytosanitary Requirements

TBT Technical Barriers to Trade

UN United Nations

VAT Value Added Tax

WTO World Trade Organisation

Annex 1: Acronyms

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This Annex lists a range of websites of a gene-ral nature as well as specific websites for oneof the Scandinavian countries or for certainproducts. Internet searches are the most effi-cient method to obtain updated information.

1. This is Scandinaviawww.visitdenmark.comGeneral information about Denmark

www.visitnorway.comGeneral information about Norway

http://english.norge.noGeneral information about Norway

www.norway.noInformation of Norwegian embassies anddelegations

www.odin.noInformation from the Norwegian governmentand ministries.

www.sweden.seGeneral information about Sweden

www.sweden.gov.seOfficial information from the Swedish govern-ment

www.wwlink.se/gateway/englishGateway to Sweden

2. Scandinavian Economywww.investindk.dkInvest in Denmark is part of the Danish TradeCouncil in the Ministry of Foreign Affairs ofDenmark

www.statistikbanken.dkStatBank Denmark contains detailed statisticalinformation on the Danish society.

www.odin.noInformation from the Norwegian government andministries, including addresses of embassies

www.ssb.noStatistics Norway. Detailed statistical informa-tion on Norway

www.scb.seStatistics Sweden

www.isa.seInvest in Sveden Agency

3. Benefit from lower customs dutieshttp://export-help.cec.eu.int The European Union offers information on e.g.duty rates, customs preferences and HS codesonline at the website of the EuropeanCommission, Expanding Exports Helpdesk. In

order to find the HS code, click Imports & ta-riffs and then Product code.

www.wto.orgWorld Trade Organization. Including the TBTand SPS agreements

http://europa.eu.intEuropean Union

http://europa.eu.int/comm/tradeDirectorate General Trade of the EuropeanCommission

http://europa.eu.int/comm/taxation_customs/customs/customs_duties/rules_origin/index_en.htmDirectorate General Taxation and Customs of theEuropean Commission, including information aboutrules of origin and documentation in the EU

http://europa.eu.int/comm/taxation_customs/resources/documents/guide-annex_4-en.pdfCertificate of origin Form A

Annex 2: Internet information sources

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www.skat.dkInformation regarding the Danish customs sys-tems. Click “International”

www.toll.no. Information regarding the Norwegian customssystems. Click the British flag.

www.toll.no/index_emne1.htmHandbook on the Norwegian GeneralizedSystem of Preferences (GSP)

www.tullverket.seInformation regarding the Swedish customs systems

4. Legal Requirementswww.newapproach.orgThe ‘New Approach Standardisation in theInternal Market’ website with information onCE-standardisation

http://europa.eu.int/comm/foodThe EU food safety website – from the farm tothe fork

www.efsa.eu.intEuropean Food Safety Authority

www.cbi.nl/accessguideA database for legal and other requirements re-garding about 20 product groups, including na-tional requirements in a number of Europeancountries

www.msl.dkDanish Environmental Protection Agency

www.ds.dkDansk Standard, the Danish national standardsbody, which includes the WTO enquiry pointfor TBT issues

www.foedevarestyrelsen.dkDanish Veterinary and FoodstuffsAdministration

www.fvm.dkDanish Ministry of Food, Agriculture andFisheries, which includes the WTO enquirypoint for SPS issues

www.dsb.noDirectorate for Civil Protection and EmergencyPlanning. The responsibility of the directorateincludes general product safety (ex. chemical),fire, explosions and electrical safety in Norway.

www.odin.dep.no/lmdNorwegian Ministry of Agriculture, which in-cludes the WTO enquiry point for SPS issues.

www.mattilsynet.noNorwegian Food Safety Authority is the surveil-lance authority for healthy and safe foodstuffsand safe drinking water in Norway. TheAuthority promotes human, plant, fish and ani-mal health, environmentally-friendly produc-tion, and ethically acceptable farming of ani-mals and fish.

www.sft.noNorwegian Pollution Control Authority is thesurveillance authority for a range of pollutionand chemical product safety issues in Norway.The website contains specific information onNorwegian legislation.

www.standard.noStandard Norge, the national standards body ofNorway, which includes the WTO enquiry pointfor TBT issues.

www.pronorm.noThe sales organisation for standards in Norway

www.kommers.seThe Swedish National Board of Trade, which in-cludes the WTO enquiry point for TBT and SPSissues

www.naturvardsverket.seSwedish Environmental Protection Agency

www.slv.seSwedish National Foodstuffs Administration

www.sjv.seSwedish Board of Agriculture

www.sis.seSwedish Institute of Standards: the nationalstandards body of Sweden.


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5. Market Requirementswww.cbi.nl/accessguideA database for legal and other requirements re-garding about 20 product groups, including na-tional requirements in a number of Europeancountries

www.cci.se/marketbriefsThe website of the Swedish Chambers offersmore than 50 guides to different products andbusiness sectors

www.iccwbo.org/index_incoterms.aspThe website of Incoterms giving information ofconditions for transport and liability in that re-spect. Try for instance the "Incotermswallchart", which gives a descriptive illustrationof precisely when and where the transfer of lia-bility happens.

www.iso.orgInternational Organisation for Standardisation

www.finansraadet.dk/englishThe Danish Bankers Association

www.bankforeningen.noThe Norwegian Bankers Association

www.dnv.comDet Norske Veritas. A major international certifica-tion body for products, management systems etc.

www.bankforeningen.se/members.aspxBanks in Sweden

6. Access to the Scandinavian Marketwww.kompass.comInternational company registry

www.europages.comEuropean company registry

www.fairlink.seScandinavian Fair Registry

Denmarkwww.bellacenter.dkDenmark’s largest exhibition centre

www.ciff.dkCopenhagen International Fashion Fair

www.cphvision.dkThe Scandinavian Design and StreetwearExhibition

www.furniturefair.dkCopenhagen International Furniture Fair

www.formland.dkThe largest purchasing fair in Scandinavia forgift items, furnishing accessories, design andinterior products.

www.danishexporters.dkA commercial guide about Denmark andDanish exporters

www.di.dkThe Confederation of Danish Industries

www.hvr.dkThe Danish Federation of Small and Medium-Sized Enterprises

www.agriculture.dkThe Danish Agricultural Council

www.hts.dkThe Danish Chamber of Commerce

www.dhs.dkDanish Commerce and Services

www.danmarksagentforening.dkThe Danish Association of Commercial Agents

www.statistikbanken.dkStatBank Denmark contains detailed statisticalinformation on the Danish society

www.danmarksrederiforening.dkDanish Shipowners' Association

Norwaywww.bizkit.noNorwegian company registry including specificcompany information


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www.gulesider.noNorwegian Yellow Pages

www.messe.noNorges Varemesse. The largest exhibition cen-tre of Norway

www.nho.noConfederation of Norwegian Enterprise

www.nortrade.comThe official Norwegian trade portal and exportdirectory

www.rederi.noNorwegian Shipowners’ Association

Swedenwww.wwlink.se/gateway/englishGateway to Sweden

www.svensktnaringsliv.seConfederation of Swedish Enterprises

www.agenturforetagen.seSwedish Association of Agents

www.swedishtrade.seSwedish Trade Council – promoting Swedishexport

www.cci.seSwedish Chambers of Commerce

www.svenskhandel.seSwedish Federation of Trade/Import PromotionOffice

www.itsweden.com IT Sweden

www.teko.seSwedish Textile and Clothing IndustriesAssociation

www.plastkemiforetagen.sePlastics and Chemicals Federation

www.transportgruppen.seThe Transport Group

www.lif.seThe Swedish Association of the PharmaceuticalIndustry

www.branchgrupperna.seTrade Associations within the SwedishEngineering Industries

7. Assistance to exporters

www.um.dk/enMinistry of Foreign Affairs of Denmark.Including DANIDA – Danish InternationalDevelopment Agency

www.diis.dkThe Danish Institute for International Studies

www.dipo.dkDIPO – Danish Import Promotion Office

www.hsh-org.noHSH, the Federation of Norwegian Commercialand Service Enterprises

www.norad.noNorwegian Agency for DevelopmentCooperation

www.odin.no/ud/english/bn.htmlThe Norwegian Ministry of Foreign Affairs

www.sida.seSwedish International DevelopmentCooperation Agency

www.cci.se/tradeSwedish Chambers Trade PromotionProgramme

www.opentradegate.seOpen Trade Gate Sweden

www.cbi.nlThe Dutch Centre for Promotion of Importsfrom Developing Countries

www.cbi.nl/accessguideA database for legal and other requirements re-garding about 20 product groups, including na-tional requirements in a number of Europeancountries

www.intracen.orgITC – International Trade Centre in Geneva


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Imports by commodity (2003)

€ mill % € mill % € mill %

Total 4 9912.2 100.0 35 405.9 100.0 73 782.3 100.0

Meat and meat preparations 610.7 1.2 57.3 0.2 563.5 0.8

Dairy products and birds' eggs 398.8 0.8 40.8 0.1 314.0 0.4

Fish, crustaceans, molluscs 1 239.6 2.5 295.0 0.8 915.8 1.2

Animal fodder 716.6 1.4 239.0 0.7 222.5 0.3

Other foodstuffs and live animals 2 087.0 4.2 1 378.9 3.9 2 660.9 3.6

Beverages and tobacco 741.8 1.5 384.5 1.1 825.9 1.1

Cork and wood 632.2 1.3 459.9 1.3 680.8 0.9

Metalliferous ores, metal scrap 57.1 0.1 1 405.2 4.0 636.1 0.9

Other crude materials, except fuels 1 044.8 2.1 578.5 1.6 996.4 1.4

Animal and vegetable oil, fats and waxes 253.9 0.5 169.4 0.5 186.3 0.3

Coal, coke and briquettes 333.0 0.7 95.2 0.3 242.0 0.3

Petroleum, petroleum products 1 824.5 3.7 975.6 2.8 5 651.1 7.7

Gas, natural and manufactured 2.7 0.0 71.7 0.2 353.2 0.5

Electric current 168.7 0.3 500.7 1.4 675.2 0.9

Medical and pharmaceutical products 1 525.7 3.1 962.3 2.7 1 955.6 2.7

Other chemicals and related products 4 046.2 8.1 2 605.8 7.4 5 981.5 8.1

Paper, paperboard and there of articles 1 344.6 2.7 787.5 2.2 1 086.7 1.5

Textile yarn, fabrics, and related products 1 048.3 2.1 529.7 1.5 1 033.1 1.4

Non-metallic mineral manufactures 788.5 1.6 544.4 1.5 851.9 1.2

Iron and steel 1 540.3 3.1 952.9 2.7 2 792.6 3.8

Non-ferrous metals 647.7 1.3 707.9 2.0 1 211.0 1.6

Manufacture of metals 1 600.3 3.2 1 347.8 3.8 2 019.1 2.7

Other manufactured goods 1 033.3 2.1 759.4 2.1 1 484.7 2.0

Power-generating machinery 876.5 1.8 669.7 1.9 2 184.0 3.0

Special industrial machinery 1 563.0 3.1 1 236.6 3.5 1 761.0 2.4

General industrial machinery 2 370.2 4.8 1 837.2 5.2 3 788.2 5.1

Office machines and adp machines 2 607.6 5.2 1 646.1 4.7 3 078.6 4.2

Telecommunications, sound-recording apparatus 2 487.9 5.0 1 364.1 3.9 3 844.3 5.2

Electrical machinery, apparatus, appliances 2 733.0 5.5 1 868.4 5.3 5 059.3 6.9

Prefabricated buildings 332.5 0.7 318.7 0.9 354.1 0.5

Furniture and associated parts 816.3 1.6 857.7 2.4 1 228.3 1.7

Travel goods, handbags 97.7 0.2 73.9 0.2 105.4 0.1

Clothing and clothing accessories 2 375.7 4.8 1 370.5 3.9 2 212.0 3.0

Other manufactured articles 4 097.3 8.2 3 249.8 9.2 5 543.6 7.5

Road vehicles 3 270.4 6.6 3 416.0 9.7 7 914.1 10.7

Other transport equipment 1 606.8 3.2 1 510.4 4.3 1 184.7 1.6

Other machinery and transport equipment 189.1 0.4 109.3 0.3 361.2 0.5

Other commodities and transactions 801.9 1.6 27.9 0.1 1 823.3 2.5

Source: Nordic Statistical Yearbook 2004

Annex 3: Import statistics

42


Annex 4: Least Developed Countries and countries of preference

43

AFGHANISTANANGOLABANGLADESHBENINBHUTANBURKINA FASOBURUNDICAMBODIACAPE VERDE ISLANDSCENTRAL AFRICAN REPUBLICCHADCOMOROSDEMOCRATIC REPUBLIC OF CONGODJIBOUTIEAST TIMOREQUATORIAL GUINEAERITREAETHIOPIAGAMBIAGUINEAGUINEA-BISSAUHAITIKIRIBATILAOSLESOTHOLIBERIAMADAGASCARMALAWIMALDIVESMALIMAURITANIAMOZAMBIQUEMYANMARNEPALNIGERRWANDASAMOASAO TOMÉ AND PRINCIPESENEGALSIERRA LEONESOLOMON ISLANDSSOMALIASUDANTANZANIATOGOTUVALUUGANDAVANUATUYEMENZAMBIA

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XXXXXXXXXXXXXXXXX

XXXXX

X

X

X

XXX

X

XXXXXXX

XX*)XX

X

XXX

X

X

Name of country*) The Norwegian GSP system hasbeen implemented

The EU GSP systemis applicable

Source: OECD. Dac list dated 1 January 2003*) Excluded as from 30 May 1997 and until further notice

Stockholm

Aarhus

Odense

Oslo

Copenhagen

Bergen

Trondheim

Tromsø

Kiruna

Goteborg

Malmö

44

Annex 5: Map of Scandinavia

DENMARK

NORWAY

SWEDEN

Colophon

Published byThe Danish Import Promotion Office DIPO HSH - Norwegian Office of Import Promotion/Norad The Swedish Chambers of Commerce Copyright 2005

PhotographerØyvind Hagen, StatoilMartin Magntorn, Astra ZenecaHenning Jørgensen, Himmelblaa Kommunication ApS

Design byHimmelblaa Kommunication ApSwww.himmelblaa.dk

PrintAKA-Print A/SDecember 2005

ISBN87-988548-2-8

Denmark

The Ministry of Foreign AffairsThe Danish International Development Assistance DANIDAAsiatisk Plads 2DK-1448 Copenhagen KDenmarkTel.: +45 3392 0000Fax: +45 3254 0533Internet: www.um.dk www.danida.dke-mail: [email protected]

The Danish Chamber of CommerceThe Danish Import Promotion Office DIPOBoersenSlotsholmsgadeDK-1217 Copenhagen KDenmarkTel.: +45 7013 1200Fax: +45 3312 0525Internet: www.dipo.dk e-mail: [email protected]

Norway

NoradNorwegian Agency for Development CooperationP. O. Box 8034 Dep, NO-0030 Oslo, NorwayRuseløkkveien 26Tel: +47 22 24 20 30Fax: +47 22 24 20 31Internet: www.norad.noe-mail: [email protected]

HSH - Norwegian Office of Import Promotion Federation of Norwegian Commercial and Service EnterprisesP. O. Box 2900 Solli, NO-0230 Oslo, NorwayDrammensveien 30Tel: +47 22 54 17 00Fax: +47 22 56 17 00Internet: www.hsh-org.noe-mail: [email protected]

Sweden

SidaSwedish International Development Cooperation AgencySE-105 25 Stockholm, SwedenSveavägen 20Tel: +46 8 698 50 00Fax: +46 8 20 88 64Internet: www.sida.see-mail: [email protected]

The Swedish Chambers of CommerceP.O. Box 16050, SE-103 21 Stockholm, SwedenVästra Trädgårdsgatan 9Tel: +46 8 555 100 00Fax: +46 8 566 316 30Internet: www.cci.se/tradee-mail: [email protected]