Sweden's Import Controls

105 .0284

The importation of certain commodities is centralized in state-owned or state-controlled organizations. The right to import sugar is held by the Swedish Sugar Factory (Svenska Socker-Fabriks A/B) while grain may be imported only by the Swedish Grain Company (Svenska Spanmals A/B). The right to import tobacco and tobacco products is held by the state tobacco monopoly-the Swedish Tobacco Monopoly Company (A/B Svenska Tobaksmonopolet). The importation of wines and spirits is in the hands of a special company formed for the purpose, the Wine and Spirit Monopoly (A/B Vin & Spiritcentralen). Companies carrying on retail trade, known as system companies, operating under the Swedish state liquor control system, may import wines and spirits with the permission of the Royal Control Board (Kungl. Kontrollstyrelsen).

Importations of animals, certain seeds, and plants are also under special control to prevent the spread of animal and plant diseases or parasites. Pharmaceuticals, drugs, poisons, and explosives may be imported only by approved parties such as druggists, drug wholesalers, and drug manufacturers and licensed dealers in explosives. A private monopoly, authorized

by the Government, also exists with respect to the importation of almanacs and calendars.

Under the royal decree of March 14, 1947, only those goods on a special "free list" could be imported without an import license. The goods included on this list are: Books, sheet music, newspapers and periodicals, maps, Braille materials, certain printing mats, and ice. Subsequent administrative action permitted other printed matter, samples and models, patents and drawings, and certain free advertising material to enter without an import license. Gift parcels not exceeding a specified value were also exempt from import license.

Import Licensing

Under the March 14, 1947, decree certain agricultural products, fertilizers, and foods were placed under the licensing control of the State Agricultural Board, while all other commodities were made subject to the license control of the State Trade License Board.

As Sweden's foreign exchange position has improved, the treatment of commodities subject to general import license control has been liberalized-first, with respect to those originating in the OEEC countries and, later, to dollar-area goods.

All imports (except for the few on the general import free list) from countries outside the dollar area and from countries other than those covered by the OEEC import free list are subject to import license control.

OEEC import free list.-As a participant in the trade liberalization program of the Organization for European Economic Cooperation, Sweden has liberalized over 90 percent of its imports from OEEC countries, sterling-area countries and territories, French franc-area countries and territories (excluding Indochina), the Dutch guilder area, the Portuguese escudo area, and Finland, Yugoslavia, and Indonesia.

Dollar import free list.-On October 1, 1954, the Swedish Government removed import license requirements for a large number of commodities originating in the dollar area. Since then it has added many more products to the dollar import free list until today a

high percentage of important American export com-
modities may enter Sweden freely.

HF

Information as to whether or not particular com-
modities are on the Swedish dollar import free list can
be obtained from any Field Office of the U. S. De,
partment of Commerce or from the European Division,
Bureau of Foreign Commerce, U. S. Department of
Commerce, Washington 25, D. C.

In announcing the establishment of this dollar im-
port free list the Swedish Government referred to dis-
cussions which had taken place in Western Europe on
the problem of attaining a more general system of
currency convertibility, and noted its belief that a
gradual easing of import restrictions on dollar goods
would facilitate a move to convertibility. By its action
Sweden also joined with a number of other Western
European countries in efforts to improve productivity
and reduce costs and prices by increased competition.

Requirement for license-free entry of goods on dollar
import free list. In order for goods on the dollar im-
port free list to come into Sweden without an import
license they must meet the following stipulations:
(1) The country of origin (i.e., the country of manu-
facture or production) must be a country considered
as part of the dollar area; (2) the country of purchase
(i.e., the country in which the commodity has been
purchased or dispatched to Sweden, whether direct
or via a third country, whether for the purpose of sale

Changes in Sweden's licensing and other con-
trols are reported in Foreign Commerce Weekly,
published by the Bureau of Foreign Commerce.

A subscription for this magazine may be en-
tered at $4.50 a year ($6 to foreign addresses)
with the Superintendent of Documents, U. S.
Government Printing Office, Washington, D. C.,
or through the nearest Department of Commerce
Field Office. Remittance should accompany the
order.

or for any other purpose) must be a country belonging
to the dollar area, a country or area of the European
Payments Union, or Finland, Indonesia, or Yugoslavia;
and (3) in settling payment for the commodity, pro-
visions governing the settlement of payments between
Sweden and the relevant country of purchase shall
apply. However, payment for a commodity purchased
from a country belonging to the dollar area which is
not the country of origin may be settled, alternatively,
direct with the country of origin.

Transit dollar import list. In addition to the dollar
import free list, the Swedish Government established
a so-called "transit dollar list," also effective October
1, 1954. In establishing this list the Swedish Govern-
ment announced that it was prepared to issue import
licenses for goods on this transit dollar list provided
the following conditions applied: (1) The commodi-
ties must originate in the dollar area; and (2) pay-
ment must be made by the Swedish importer either in
so-called transit dollars, obtainable from commercial
banks at a small premium, or through triangular trans-
actions with non-dollar-area countries. (Transit dollars
are dollar exchange which Swedish commercial banks

are authorized to obtain from abroad at a premium
price.)

Commodities on the transit dollar list of particular
interest to United States exporters are relatively few
and include the following: Fresh citrus fruit and
grapes; coffee and coffee substitutes; copra; certain
vegetable oils and fatty acids; sauces; fat emulsions;
tobacco products; crude copper; lead, tin, and zinc;
and airplanes.

To obtain a license to import commodities on the
transit dollar list, the Swedish importer must submit
with the license application a certificate issued by a
Swedish commercial bank to the effect that the re-
quired transit dollars will be made available and, in
addition, an invoice or a confirmation of the order
or other document issued by the foreign vendor as
evidence that the commodity was purchased from a
seller domiciled in the dollar area.

Residual list of goods subject to general import
license.-Commodities still subject to import license
from the dollar area which have not been included on
the transit dollar list consist primarily of fresh apples
and pears; dairy products and eggs; certain kinds of
malt and spirituous beverages; coal and coke; petro-
leum; automobiles and parts for assembly; and arms
and ammunition.

In general, the Swedish Government has been liberal
in granting licenses for products still subject to import
license requirements. In the case of fresh apples and
pears, the period during which licenses are freely
granted varies from year to year depending on the
domestic crop.

Import license application; block licenses.-Licenses
to import agricultural products and fertilizers are is-
sued by the State Agricultural Board, while licenses
for all other commodities subject to control are granted
by the State Trade License Board.

An import license is usually valid for 6 months and
a tolerance of 5 percent is generally allowed.

In order to obtain foreign exchange to pay for goods
covered by the import licenses, and in order to clear
the goods through customs, each license must be regis-
tered with the Foreign Exchange Control office of the
Riksbank or a commercial bank authorized by the
Foreign Exchange Control Office to handle foreign ex-
change transactions (see also section, Exchange Con-
trol on Imports).

Although the granting of import licenses is based
on a general import plan, the Swedish import control
authorities publish no specific import quota informa-
tion for individual commodities.

Individual importers may obtain a so-called block
license, which permits a certain quantity of goods to be
imported within a specified period without obtaining a
separate license for each shipment. Such licenses are
granted to importers who have operated a regular
establishment as manufacturer, handicrafter, whole-
saler, or retailer within a particular branch of trade
or industry during a specified base period.

Exchange Control on Imports

Foreign exchange is provided automatically for goods
on the import free lists which meet the criteria estab-
lished for their importation and for goods for which
import licenses have been issued.

Under law No. 350 of June 22, 1939, only the Riks-
bank (the central bank of Sweden) and banks author-
ized by the Riksbank (foreign exchange banks) may
carry on transactions relating to foreign exchange.
Foreign exchange control was introduced in Sweden
by an Order-in-Council of February 25, 1940, in con-
formity with the foreign exchange law of June 22, 1939.
Under the provisions of this order the Foreign Ex-
change Control Office (Valutakontoret) was established
as the organ of the Riksbank to handle transactions
subject to the exchange control regulations. The
Foreign Exchange Control Office operates in close
cooperation with other Swedish authorities, particularly
the State Trade License Board, which regulates the
import and export of merchandise.

Payment for goods imported from countries with
which Sweden has clearing agreements are governed
by the terms of the respective clearing agreements.

The importation of securities is subject to special
regulations of the Riksbank and may take place only
through the Riksbank or a foreign exchange bank.

Sweden's Export Controls

Royal decree No. 324 of June 9, 1950, placed the ex-
portation of commodities from Sweden under general
export license control. Exempt from this general
control are a small list of goods manufactured or
produced in Sweden of much the same type as those
exempt from the general import license control, namely:
Printed books, sheet music, newspapers, periodicals,
pictures, maps and globes, and certain other printed
matter. This decree of June 9, 1950, superseded an
earlier decree of March 1941 governing exports.

The general export license regulations were originally
established for short-supply reasons. In the postwar
period the license control has been maintained both
for short-supply and exchange-control purposes.

Similar to the general import license control pro-
cedure, export licenses are granted by the State Food
Commission for agricultural and certain miscellaneous
products and by the State Trade License Board for
other products.

In addition to the general export license control,
separate export regulations established by individual
decrees govern the exportation of certain cultural ob-
jects; war materiel; certain works of stone; narcotics;
securities; unworked gold and gold currency; certain
pictures and reproductions thereof; beryllium, thorium,
uranium, and compounds thereof; certain maps; some
live animals and agricultural products; and certain
kinds of fish and shellfish.

Export Licensing

An application for an export license must be sub-
mitted by the exporter to the proper licensing authority
on a special application form setting forth the complete
information required by the form.

Additional export free list.—In addition to the special
list of goods exempt from general export control, the
Swedish Government issued an extensive conditional
export free list as a part of the 1950 decree. This list
was revised and expanded by decree No. 178 of Sep-
tember 30, 1953. Under the provisions of this decree,
a wide range of goods produced or manufactured in

Sweden may be exported without a license to OEEC
countries and their currency territories, and to the
United States and other Western Hemisphere coun-
tries with the exception of Argentina.

In order to export commodities on the conditional
export free list the following conditions must be met:
1. The exporter must be listed in the Swedish busi-
ness firm, association, or corporation register.

2. The export commodity must have been produced
or manufactured in Sweden.

3. The export commodity must be sold on such con-
ditions that full payment is made in accordance with
the payments agreement in force between Sweden and
the country of consumption, or, if no payments agree-
ment is in force, in accordance with regulations issued
by the Foreign Exchange Control Office to the foreign
exchange banks regarding payments between Sweden
and the country in question or in United States dollars,
free Swiss francs, or Swedish crowns from the general
United States account at the Swedish foreign exchange
bank.

4. The export commodities must be sold under such
conditions that full payment is made within 6 months,
calculated from the day the goods are reported to the
customs for export or delivered to the post office for
direct shipment abroad.

Exemption from the export license requirement
granted under the above conditions does not apply to
goods sent abroad on consignment, for demonstration,
or for testing.

In every case of export the exporter must submit to
the customs or the post office (when goods are sent
by mail and there is no local customhouse) an export
statement which has been registered with the State
Trade License Board certifying that the conditions
governing license-free exports have been complied with.
The exporter's registered commitment must be sub-
mitted in at least two copies on a specially prepared
form.

General export license.-A general export license
allows the transit of goods via Sweden between two
foreign places (countries) on the condition that pay-
ment for the goods is not to be made by any enter-
prise in Sweden and that the holder of the general
license handling the transit shipment has established
this fact by presentation of a copy of the invoice or
other documentary evidence.

Exchange Control Over Exports

In general all foreign exchange acquired from ex-
ports must be offered to the Riksbank or a foreign ex-
change bank.

United States Controls

Exports

At present all exports from the United States or its
possessions to Sweden are subject to the rules and
regulations of the Bureau of Foreign Commerce, U. S.
Department of Commerce, except for exports of arms,
ammunition, and implements of war, which are licensed
by the U. S. Department of State; gold and narcotics,
licensed by the U. S. Department of the Treasury; and
certain source material and facilities for the produc-