WORLD TRADE
ORGANIZATIONG/STR/N/7/NOR
15 November 2001
(01-5818)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on the Interpretation of Article XVII
NORWAY
The following communication, dated 14 November 2001, has been received from the
Permanent Mission of Norway.
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I. ENUMERATION OF STATE TRADING ENTERPRISES
(a) Identification:  Arcus Produkter AS
(b) Products affected:
- Spirituous beverages (HS 22.08)
- Spirits for technical/medical use (HS 22.07)
II. REASON AND PURPOSE
(a) In order to reduce the negative consequences of alcohol consumption, the Norwegian alcohol
policy is based among other things on regulating the availability of alcohol. AS Vinmonopolet (the
state-owned wine and spirits retailing monopoly) and Arcus Produkter AS have been established to
serve this purpose. Arcus, which started operations in 1996, has been granted an exclusive right toproduce spirituous beverages in Norway.  The company also has exclusive rights for the sale and
distribution of spirits for technical/medical use.
(b) The exclusive right to sell spirituous beverages has its legal basis in Alkoholloven (the
Alcoholic Beverages Act), Chapter 6, section 6-1, subsection 4:  “A licence for the production ofspirits may only be granted to one company.”
The exclusive rights concerning spirits for technical/medical use have their legal basis in
Regulations No. 1042 of 22 December 1995, see Acts of 19 June 1964 No. 1 and 4 June 1954 No. 2.
The Norwegian Government has taken steps towards abolishing the production monopoly for
spirituous beverages.G/STR/N/7/NOR
Page 2
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING
ENTERPRISE
(a)  Arcus Produkter AS has the following activities:
 - Production of spirituous beverages and fruit wines
- Bottling of the company’s own products and of spirits and wines imported inbulk
- Marketing and sale of own brands, of lice nsed bottled brands and of agency products,
both domestically and for export
- Sale and distribution of spirits for purposes other than consumption (i.e. for
technical/medical use)
(b) Arcus Produkter AS is granted an exclusiv e right in Norway to produce spirits for
consumption.
(c) The company has also been granted an exclusive right for the sale and distribution of spirits
for technical/medical use. These products are not exported by Arcus.
(c) All producers and wholesale traders of alcoholic beverages in Norway are subject to a licence
system which is administered by a directorate (Rusmiddeldirektoratet, the Directorate for the
Prevention of Alcohol and Drug Problems) under the Ministry of Health and Social Affairs.
(d) Arcus Produkter AS is one supplier of brand products and competes with other companies
both domestically and in the export markets.  The volumes of imports andexports are therefore
determined by the market and the company’s ability to compete.
(e) The export price of Arcus’ products is based on the company’s assessment of the price level,
which considers supply and demand in the relevant market.
(f) The price at which Arcus sells its products to AS Vinmonopolet and to domestic wholesalers
is a result of competition between suppliers.
(g) Arcus has entered into long-term contracts regarding imports, domestic distribution and
exports.  Such contracts are based on mutual interests and are not linked to or affected by the
exclusive rights granted to Arcus.
(h) The sale of spirituous beverages, wine and strong beer to individual consumers in Norway is
done through the outlets of AS Vinmonopolet and by licensed restaurants and bars.  All sales to AS
Vinmonopolet have to go through a Norwegian importer holding a licence issued by
Rusmiddeldirektoratet. Restaurants and bars may buy from AS Vinmonopolet at retail prices or fromimporters/wholesalers at wholesale prices.
IV. STATISTICAL INFORMATION
See enclosed Tables I, II and III.
V. ADDITIONAL INFORMATION
Arcus Produkter AS is a wholly owned subsidiary of Arcus ASA. Arcus ASA is owned 34 per
cent by the Norwegian state and 66 per cent by Sucra AS, a private group of investors.  Sucra AS
became a shareholder in Arcus ASA in August 2001 through a share purchase agreement with the
Norwegian Ministry of Trade and Industry.G/STR/N/7/NOR
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Spirits for technical/medical use (HS 22.07)
Products:  Ethanol and isopropanol
The annual sale by Arcus Produkter of spirits for technical/medical use amounted to 16-
17 million litres in the period 1998-2000.  All sales are in the domestic market; the company does not
export these products.
Arcus Produkter imported approximately 6 million litres per year in 1998 and 1999 and
9 million litres in 2000.  The balance of the total volume sold is purchased domestically.G/STR/N/7/NOR
Page 4
TABLE I
STATE TRADING:  ARCUS PRODUKTER AS
STATISTICAL INFORMATION, IMPORTS
Description of
product(s)
(including HS
number(s))Total
quantity
importedQuantity
imported by
state trading
enterpriseAverage
import priceAverage
representative
domestic sales
priceMark up National
production
1234567
SPIRITS
(HS 22.08)
1998 6.7 0.7 19.80 32.07 3.2
1999 6.8 0.6 18.57 33.50 3.1
2000 6.4 0.5 17.39 36.53 3.8
(HS 22.07)
1998 6.4 6.4 3.80 5.60 9.6
1999 6.2 6.2 4.14 5.70 9.8
2000 9.1 9.1 3.64 5.40 7.9
The figures in columns 2, 3 and 7 are in million litres.
Columns 4 and 5 are in NOK per litre.USD = NOK 7.54 in 1998, NOK 7.80 in 1999 and NOK 8.80 in 2000 (average exchange rates).G/STR/N/7/NOR
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TABLE II
STATE TRADING:  ARCUS PRODUKTER AS
STATISTICAL INFORMATION, EXPORTS
Description of
product(s)
(including HS
number(s))Total
quantity
exportedQuantity
exported by
state trading
enterpriseAverage
procurement
priceAverage
representative
domestic sales
priceAverage
export priceNational
production
1234567
SPIRITS
(HS 22.08)
1998 1.3 1.3 n.a. n.a. n.a. 3.2
1999 1.4 1.4 16.94 30.24 36.63 3.1
2000 1.5 1.5 17.87 36.53 41.01 3.8
(HS 22.07)
1998 0 0 9.6
1999 0 0 9.8
2000 0 0 7.9
The figures in columns 2, 3, and 7 are in million litres.
Columns 4, 5 and 6 are in NOK per litre.Exchange rate NOK/USD: 1998: 7.54, 1999: 7.80 and 2000: 8.80G/STR/N/7/NOR
Page 6
TABLE III
STATE TRADING:  ARCUS PRODUKTER AS
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of
product(s) (including
HS number(s)Domestic purchases
by state trading
enterpriseNational production Domestic sales by
state trading
enterpriseNational
consumption
12345
SPIRITS
(HS 22.08)
1998 3.0 3.2 3.3 9.5
1999 3.0 3.1 3.3 10.2
2000 3.4 3.8 3.8 10.4
(HS 22.07)
1998 9.6 9.6 16.0 16.0
1999 9.8 9.8 16.0 16.0
2000 7.9 7.9 16.95 16.95
The figures in columns 2, 3, 4 and 5 are in million litres.
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