Sweden

Distributing a product

Evolution of the sector

In 2004, the Swedish retail trade reached 45.2 billion EUR, that is a growth of 3.3% in comparison with 2003. Generally speaking, Sweden has followed the same pattern of evolution as other Western countries over the last 20 years, i.e. the appearance of huge shopping malls located on the outskirts of towns, whose growth is to the detriment of the retailers situated in the city center. Distribution remains very structured and dominated by a few large groups, but there are a large number of specialized retailers offering more top of the range goods. The Swedish market often serves as a bridgehead for reaching the Scandinavian markets and the Baltic countries. Many European companies are present in this competitive market.

Market shares

Swedish distribution of consumer goods is very structured even though there is still a large number of specialized retailers. Food distribution, for example, is concentrated around 3 groups:
- Ica Sveridge AB ( Ahold group) 1883 outlets.
Axfood AB, 883 outlets, it is specialized in "soft discount", i.e. very large discount stores.
Coop Sveridge AB(KF), 879 outlets, it is losing market share.
But a new group has appeared, the Bergendalhs group, 139 outlets.

The non-food sector is dominated by Swedish groups mainly (H&M in clothing or Ikea in furniture). However, new foreign brands are setting up progressively in Sweden (Mango, Zara in clothing).

Organizations in the retail sector

Svensk Handel (Swedish Trade Federation)

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies
Party of the International coffee agreement 2001

International economic cooperation

Member of the European Union
Member of the European Economic Area which guarantees, since 1 January 1993, the free movement of most goods between European countries.
Multilateral agreements and bilateral agreements with many countries.

Non tariff barriers

As it is a member of the European Union, Sweden applies the Community regulations which are valid throughout the Union.

If the EU has quite a liberal foreign trade policy, there are a certain number of restrictions, especially at the level of agricultural products, ensuing from the implementation of the CAP (Common Agricultural Policy): applying compensations when importing and exporting agricultural products to favor the development of agriculture within the EU implies a certain number of systems to control and regulate goods entering EU territory.
Moreover, for sanitary reasons, as regards the presence of Genetically Modified Organisms, if they are allowed in Europe, their presence must, for example, be systematically specified on packaging. It is also prohibited to import beef fed on hormones. The BSE crisis (called "mad cow disease") has encouraged the European authorities to reinforce phytosanitary measures to ensure the quality of meat entering and circulating in EU countries. The principle of precaution is now more widely favored: in case of doubt, import is prohibited until the non- noxiousness of the goods is proved.

Customs duties and taxes on imports

Transactions carried out within the EEA are exempt from duties.
The Common Customs Tariff (CCT) of the European Union is applied to goods from outside the EU. In general, duties are not very high, especially for industrial products (4.2% on average).

Customs classification

The European Community (EC) Combined Nomenclature integrates the Harmonized System Nomenclature and comprises supplementary subdivisions with eight digits and its own legal terms created for Community purposes.

Import procedures

When goods are imported into Sweden, it is the responsibility of the importer or his agent to make the Customs declaration. The SAD (single administrative document) is used for this. The document may be presented in Swedish, Norwegian, Danish, English or German. An invoice must be presented with the SAD duly filled out.

The case of samples

For importing, exporting and re-exporting commercial samples, the ATA carnet may be used.

For further information

Tullverket (Swedish Customs)
Ministry of Finance

Organizing goods transport

Main useful means

Distribution of domestic goods transport: road 64% (39.9 billion tkm, a growth of 3.5% in 2005-2006), train 36% (22.3 billion tkm, a growth of 2.7% in 2005-2006). Sea transport is vital for Sweden with its 2 700 km of coastline and its many islands. Almost all international transactions are carried out by sea as well as half of domestic trade.

Ports

Port of Stockholm
Port of Göteborg
Port of Trelleborg
All Swedish ports

Airports

Stockholm Arlanda International Airport
Gothenburg City Airport
Gothenburg-Landvetter Airport
Malmö Airport
List of Swedish airports

Sea transport organizations

Swedish Maritime Administration (Sjofartsverket)

Air transport organizations

Swedish Civil Aviation Administration

Road transport organizations

Swedish Road Administration (Vägverket)

Rail transport organizations

Ministry of transport and communication
Swedish Rail Administration (Banverket)