VI. TRADE REGULATIONS AND STANDARDS - Tariffs and Import Taxes Sweden's tariff structure is a single-column tariff using the Harmonized System of Classification. Import duties apply to all countries receiving most-favored-nation (MFN) treatment. At the present time, Sweden grants MFN treatment to all countries. Sweden maintains one of the lowest tariff levels in the world on industrial goods, averaging less than five percent ad valorem on finished goods, and around three percent on semimanufactures. Most raw materials, basic chemicals, pharmaceuticals, newsprint, pig iron, and some finished goods, including most ships and aircraft, are admitted duty free. Certain items, mainly machinery, of a type not produced in Sweden or produced in small quantities only, are admitted duty free. Certain agricultural products are subject to import fees which are imposed as a result of a Swedish Government program designed to support agriculture. Among the products subject to these fees are cattle, hogs, meat, poultry, butter, cheese, eggs, cereals, flour, and certain fats and oils. As a member of EFTA, Sweden maintains duty-free entry on practically all products originating in other EFTA countries. (Norway, Iceland, Switzerland, Austria, Finland). Sweden has a trade agreement with the EU that allows for duty-free entry of most manufactured products from the 12 members of the European Union. - Customs Valuation Virtually all Swedish import duties are on an ad valorem basis. The basis for valuation is the normal price of the merchandise plus costs of transportation and all other expenses, such as insurance and freight, connected with the sale and delivery of the merchandise up to the point of its introduction into Swedish customs territory. The Swedish Customs Authority charges a user fee to importers. It is a flat fee of 100 Swedish kronor per clearance. Imports are also subject to the value-added tax (in most cases 25 percent). Some products are subject to special taxes. Information can be obtained through the Swedish Board of Customs and Excises (see appendix C). - Import Licenses Sweden has few import restrictions and import licenses are usually not required. - Export Controls The U.S. Department of Commerce provides information on export licensing from the Office of Export Licensing, Bureau of Export Administration. - Import/Export Documentation The documents required by Sweden from the exporter include a commercial invoice, a bill of lading, and such special certifications as may be necessary. Consular invoices and regular certifications of origin are not required. There are no stipulations as to the form of commercial invoices, bills of lading, or other shipping documents. Swedish customs regulations specify that the invoice (in triplicate) must contain the seller's name, signature, and address; the buyer's name and address; date the invoice was prepared; date the purchase contract was concluded; number of cases, parcels, or containers; the denomination of the merchandise; type and gross and net weight plus marking and number; product's discounts (and the nature of discount); and also conditions of delivery and payment. Goods liable to an ad valorem duty shipped on consignment should be accompanied by an invoice as though they had been sold. Shipping documents may be made out in the English language. The usual bill of lading (or an airway bill) suffices for shipment to Sweden. The bill of lading must be completed in accordance with the invoice. "To order" bills of lading are accepted. Sanitary certificates, which must show the country of origin, are required for goods that may be suspected of bringing contagious animal or vegetable diseases into the country or for goods for which special stipulations are prescribed. Goods subject to these sanitary certificates of origin include live animals, certain animal products (including meat and meat products); used dairy hollow wares; used sacks; feedstuffs; potatoes; live plants; seeds; margarine, cheese, and fatty emulsion; syrup and molasses; preparations containing spirits; concentrated alcohol; and shaving brushes. The sanitary certificate of origin must be legalized by a Swedish consul or an official authority in the country of production or export. - Temporary Entry Sweden honors the ATA Carnet, an international customs document designed to simplify customs procedures for business and professional people taking commercial samples, advertising materials or film or medical or professional equipment into specified countries for a short period. More than 40 countries participate in the carnet system. The U.S. Council of the International Chamber of Commerce, 1212 Avenue of the Americas, New York, NY 10036-4480 (fax 212-944-0012, tel. 212-354-4480) has been designated by the U.S. Bureau of Customs as the U.S. issuing and guaranteeing organization. U.S. firms should write to the U.S. Council at its New York address to apply for ATA Carnets. - Labeling, Marking Requirements There is no general requirement in Sweden that imports be marked as to the country of origin. However, goods carrying incorrect designations of origin are prohibited, and a product which has been made to appear as though it has been produced or manufactured in Sweden may not be imported unless its foreign origin is clearly, conspicuously, and durably marked thereon. It would suffice if the marking in this case consisted only of the word "imported". There are, however, special marking regulations on a few products, e.g., shoes, pharmaceuticals, seeds, and certain foods. If not already marked before arrival, goods must be properly marked under customs supervision, within 30 days after arrival. Goods not properly marked may be reexported by the owner, under customs supervision, within the 30-day period after arrival. If neither properly marked nor reexported, the goods become the property of the state. There are no special regulations for marking outside cases or packages except that packages upon arrival must be marked to correspond with the bill of lading and the invoice, and gross weight must be marked on single packages exceeding one metric ton in weight (2,204 lbs). - Prohibited imports Goods carrying incorrect designations or origin are prohibited, and a product which has been made to appear as though it has been produced or manufactured in Sweden may not be imported unless its foreign origin is clearly marked thereon. - Standards Sweden uses the metric system. Products for sale in Sweden should be adapted to it whenever possible. The United States is the only major nation where the metric system is not in full use. U.S. exporters not using the metric system have a serious disadvantage in world markets since overseas buyers are reluctant to accept products that are non-metric. Information is available from the U.S. Department of Commerce Metric Program at (301) 975-3690. Electric current in Sweden is 50 hz, AC 230V/single phase and 400V three-phase. While Sweden might not become a member of EU until 1995 or later, it has begun to adjust some of its product standards and certification approvals to conform to those developed by the EU. Information about Swedish standards may be obtained from: Swedish Standards Institution P.O. Box 3295, S-103 66 Stockholm, Sweden Tel: Int/46/8-613 52 00, Fax: 46-8-11 70 35. Since the diversity of foreign standards, regulations, inspection procedures, and certification requirements can constitute a considerable barrier to increasing U.S. exports, American firms should keep abreast of standards abroad. Exporters can get up-to- date information about technical standards by contacting: National Institute of Standards and Technology (NIST) U.S. Department of Commerce Room A 163, Building 411 Gaithersburg, MD 20899 Tel. (301) 975-4038 Information about industrial standards may also be obtained from: The American National Standards Institute Inc. 11 West 42nd Street New York, NY 10018 Tel. (212) 642-4900 Companies can invite an independent party to audit their production and issue a certificate regarding the quality system in compliance with the demands in ISO 9000, or some equivalent standards system. In Sweden, there are so far six such companies that have been assessed and accredited as competent to issue such certificates. Information can be obtained from Swedac, a government entity with the following address: Swedac, Styrelsen for teknisk ackreditering Box 878, S-501 15 Boras Tel: Int/46/33-17 77 00, Fax: 46-33-10 13 93 - Free Trade Zones/Warehouses There are free port facilities at Stockholm, Goteborg, and Malmo where goods may enter without customs declaration or inspection. The facilities are municipal enterprises operated under the supervision of the Royal Board of Customs. The board has authority over all goods and traffic passing through the ports in order to ensure that Swedish laws and regulations are observed. Goods may be stored, sorted, repacked, sold, exported, or returned to the country of origin without payment of customs duties or other import charges. They may also be cleared through customs for domestic consumption. In order to carry on industrial operations in free port areas, special authorization must be obtained. Retail trade is prohibited, except as may be authorized to provision and service ships and aircraft. - Special Import Provisions There are some safety and other regulations that effectively bar certain merchandise, such as products harmful to public order, health or safety. Details can be obtained from the Swedish Bureau of Customs and Excises (see appendix C). - Membership in Free Trade Arrangements: Sweden, with other EFTA countries, reached agreement with the European Union to establish closer economic ties through the creation of a new European Economic Area, EEA (in Sweden still called EES), which became effective on January 1, 1994. EU accession negotiations have been completed for Sweden but official membership will be decided in a referendum to be held November 13, 1994.