./.WORLD TRADE
ORGANIZATIONG/STR/N/5/ISL
1 October 1999
(99-4091)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on the Interpretation of Article XVII
ICELAND
The following communication, dated 29 September 1999, has been received from the
Permanent Mission of Iceland.
_______________
I. ENUMERATION OF STATE TRADING ENTERPRISES
The State Alcohol and Tobacco Monopoly (ATVR)
The ATVR has as of 1 December 1995 the following exclusive rights:
Retail distribution on alcoholic beverages that is all drinks with alcoholic content above 2.25
per cent alch/vol.
Importation and wholesale distribution of ethyl alcohol (CCCN 2207.1000) until 1 July 1998.
Importation, wholesale distribution and pr oduction of tobacco and tobacco products
II. REASONS AND PURPOSE
The ATVR is based on important health and social policy considerations but the purpose of
the Monopoly is also of a fiscal nature.
The activity of the ATVR is governed by Act no. 63/1969 on the Sale of Tobacco and
Alcoholic Beverages as amended by Act no. 95/1995, Regulation no 205/1998, on the State Alcohol
and Tobacco Monopoly, Rules no 117/1998 on the Purchase and Sale of Alcoholic Beverages andTerms of Business with Suppliers and rules no. 633/1998 on the Purchase and Sale of Tobacco and
Terms of Business with Suppliers.
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
The ATVR was founded in 1922. The company is divided into two departments, a
procurement department and a sales department.  The operation of the departments, assets, operational
expenses etc. are kept separate in the accounts.  The procurement department imports, procures and
distributes tobacco and tobacco products, manufactures snuff and sells ethyl alcohol. The salesG/STR/N/5/ISL
Page 2
department operates the retail outlets. In making its purchases the enterprise acts on the basis of
specific rules on the purchasing procedures.  It does not import or export alcoholic beverages or sell
them at the wholesale level and it does not export tobacco products. The management of the ATVR is
in the hands of a Board of Directors consisting of three persons who are appointed by the Minister of
Finance, but the company is under the supervision of the Ministry.
On 1 July 1998 the exclusive right on the importation of ethyl alcohol which the ATVR had
was abolished.
IV. STATISTICAL INFORMATION
The following tables do not contain any information on imports or sale of beer, wine and
spirit drinks since the ATVR does no longer have any exclusive rights for the importation orwholesale distribution of those kind of beverages. Iceland  therefore does not consider them covered
by the notification requirement.
TABLE 1
Imports of ethyl alcohol CCNO 2207.1000 (1997 a nd 1998). There is no national production.
Year Imports of ethyl alcohol 2207.1000 Average import
priceAverage wholesale
price
Quantity Value (CIF)
tonnes ISK million ISK
1997 114 9,4 82,456 96,000
1998* 42 3,6 83,150 97,200
* The reduction in import from 1997 is due to the fact that the exclusive right to import this product was abolished in 1998.
TABLE 2
Imports of tobacco and tobacco produc ts. National production (1997 and 1998).
Year Imports of tobacco & tobacco
productsNational
production
of snuffAverage import
priceAverage wholesale
price
Quantity Value (CIF) Quantity
tonnes ISK  million tonnes ISK ISK
1997 559 1040 10 1860 7003
1998 540 1060 10 1940 6915
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE IN PRODUCTS
AFFECTED.
Question irrelevant.
VI. ADDITIONAL INFORMATION
None.
__________