G/STR/N/15/EU  
 
30 June 2014  
(14-3742)  Page: 1/6  
Working Party on State Trading Enterprises  Original: 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 
EUROPEAN UNION 
The following communication, dated 20 June 2014, is being circulated at the request of the 
Delegation of the European Union. 
 
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1  ENUMERATION OF STATE TRADING ENTERPRISES 
1.1  Identification of state trading enterprises 
Systembolaget AB 
 1.2  Description of products affected (inc luding tariff item number(s) encompassed in 
product description) 
Alcohol beverages (spirituous drinks, wines and strong beer)  
 2  REASON AND PURPOSE 
2.1  Reason or purpose for establishing an d/or maintaining state trading enterprise 
Systembolaget AB is a state-owned limited company that conducts retail sales of alcoholic 
beverages to the general public in Sweden; a retail monopoly. The reason for the monopoly is that 
the alcohol-related problems are reduced if alcohol is sold in the absence of a profit motive. 
Systembolaget aims to reduce the total alcohol consumption by limiting availability. Systembolaget further strives to help limit the medical and social harm caused by alcohol, and thereby improve 
public health. 
 2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
Systembolaget's mandate is governed by the Swed ish Alcohol Act, by Systembolaget's contract 
with the government and by the directives issued by the government in its capacity as our owner. 
 
3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
3.1  Summary statement providing overview  of operations of the state trading 
enterprise 
Systembolaget has a nationwide retail network comprising 427 stores and more than 500 agents 
(in smaller communities with an insufficient customer base for a store of their own). The agents acts for and by authority from Systembolaget; they are not themselves selling the items but G/STR/N/15/EU 
 
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  instead delivering the items on behalf of Systembo laget. The agents account for approximately 1% 
of Systembolaget's turnover and carry no items in stock, instead the consumers order the goods 
for collection. Systembolaget is responsible for ensuring that people shall have the option of purchasing alcoholic beverages wherever they may live in Sweden and exist in all municipalities in 
Sweden, but one. The Swedish Parliament sets th e guidelines for the stores' opening hours.  
  According to Systembolaget's contract with the go vernment, Systembolaget shall inform the public 
in Sweden about the risks combined with the consumption of alcoholic beverages. This undertaking 
is also mentioned in Systembolaget's Articles of Association. As one way of fulfilling this undertaking, Systembolaget has formed the subsidia ry IQ-Initiativet AB. IQ-Initiativet works to 
persuade people to reflect on their attitudes towards and behavior in relation to alcohol. The aim is 
to reduce alcohol consumption and thereby the harm caused by alcohol.  
 3.2  Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
Systembolaget holds the retail monopoly for alcoholic beverages in Sweden. 
 
3.3  Type of entities other than the state tr ading enterprise that are allowed to engage 
in importation/exportation and conditions for participation 
See above under B as regards retail. For other types of sale, see below under H. 
 
3.4  How import/export levels are estab lished by the state trading enterprise 
Systembolaget may not export any alcohol to other countries. Systembolaget is only entitled to 
import alcohol upon the request of individual co nsumers. If a customer wishes to buy a product 
that is not included in the range, Systembolaget shall according to the Alcohol Act import the 
product within the framework of its private import service.   
3.5  How export prices are determined 
As stated above, Systembolaget may not export any alcohol according to the Alcohol Act. 
 3.6  How the resale prices of im ported products are determined 
The resale price of an imported product is dete rmined by adding the following mark-ups to the 
supplier's offering price; (i) a variable mark-up (c urrently 19%), (ii) a fixed mark-up (that is added 
on all items sold by Systembolaget), (iii) a mark-up covering transport and administrative costs, 
(iv) estimated charge for customs (if applicable), (v ) recycling cost, (vi) the applicable Excise Duty 
on Alcohol and (vii) VAT .  
 
3.7  Whether long-term contracts are nego tiated by the state trading enterprise. 
Whether the state trading enterprise is used to fulfil contractual obligations entered into 
by the government 
i. Systembolaget has, as explained under section B, a contract with the government 
(Sw. Avtal mellan Systembolaget AB och staten) dated 28 September 2012.  
ii. As Systembolaget is a monopoly, it is obliged to treat all beverage suppliers equally. 
The principle of equal treatment means th at Systembolaget must apply the same 
terms and conditions to all beverage suppliers  at any given time, and is not at liberty 
to negotiate the wording of them with one or several individual suppliers. The purchasing terms are reviewed – and updated – in general twice each year. 
3.8  Brief description of market structure 
Systembolaget has a monopoly for off-premise retail sale in Sweden - for all alcohol beverages 
containing more than 2.25% alcohol by volume (wit h the exception of beer where the limit is 3.5% 
by volume). Beer with alcohol content between 2.8 and 3.5% by volume is taxed in Sweden by the 
same general rules as stronger beer whereas beer containing less than 2.8% alcohol by volume is G/STR/N/15/EU 
 
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  exempted from alcohol taxation. Beer with no more than 3.5% alcohol by volume can be sold in 
general stores and gasoline stations also selling food (and do not need a special license). Further, on-premise sale of alcoholic beverages takes place in restaurants, bars and cafés. A special license is required for on-premise sales of alcoholic be verages stronger than 3.5% alcohol by volume.  
 
The Alcohol Act permits wholesale trade in spirit drinks, wine and strong beer to the retail monopoly, holders of serving licenses and other wholesalers. Wholesale activities may be 
conducted by an authorized warehouse keeper or  registered consignee of alcoholic goods. The 
authorization and registration is conducted by the Swedish Tax Agency. A license issued by the 
Swedish National Institute of Public Health is required for the purchase of spirit drinks, wine and strong beer for commercial purposes, such as food production. 
 
The legal age limit for selling alcoholic beverages in Systembolaget stores is 20 years. The legal age limit for selling beer in general stores is 18 years. The legal age limit for on-premise sale of 
alcoholic beverages is 18 years for all alcoholic beverage categories. 
 4  STATISTICAL INFORMATION ( SEE ATTACHED TABLES I - III)  
5  REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE ( AS APPROPRIATE) 
According to the Swedish Alcohol Act, Systembolaget may not export alcoholic beverages. 
 6  ADDITIONAL INFORMATION ( AS APPROPRIATE) 
  
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TABLE I 
 
STATE TRADING: NAME OF STATE TRADING ENTERPRISE 
 
Systembolaget AB 
 
STATISTICAL INFORMATION – IMPORTS: 2012 and 2013 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
imported1  
(litres) Quantity imported 
by 
state trading 
enterprise1  
(litres) Average import 
price (per litre and 
including VAT) Average 
representative 
domestic sales 
price 
(per litre and 
including VAT) Mark-up2 National 
production (litres) 
1 
 
Alcoholic beverages; 
Spirituous drinks, 
wines and beer  
 2 
 
2012: 276 340 465 
2013: 281 224 201  3 
 
2012: 110 992 2013: 116 621  
 4 
 
2012: SEK 306.76  2013: SEK 312.49  5 
 
2012: SEK 67.97 2013: SEK 68.66 
 6 
 
n/a 
 7 
 2012: 545 000 000  2013: n/a  
  
 
  
 
  
                                               
1 In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 Members may report either under columns 4 and 5 or under column 6.  
  G/STR/N/15/EU  
 
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TABLE II 
 
STATE TRADING: NAME OF STATE TRADING ENTERPRISE 
 
Systembolaget AB 
 
STATISTICAL INFORMATION, EXPORTS 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
exported3 Quantity exported 
by 
state trading 
enterprise1 Average 
procurement price4 Average  
representative 
domestic sales 
price Average export 
price National 
production 
1 
N/A 
According to the 
Alcohol Act, 
Systembolaget may 
not export alcoholic 
beverages. 
 2 3 4 5 6 7 
 
 
 
 
 
                                               
3In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire. 
4In cases where the initial procurement price is augmented by ot her payments, additional payments should also be reported.  
  G/STR/N/15/EU  
 
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TABLE III 
 
STATE TRADING: NAME OF STATE TRADING ENTERPRISE 
 
Systembolaget AB 
 
STATISTICAL INFORMATION - DOMESTIC ACTIVITIES: 2012 and 2013 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise 
(excl Excise Duty on 
Alcohol) National production - 
Sales by Systembolaget  
of nationally produced item 
(litres) 
 Domestic sales by 
state trading enterprise 
(litres) National consumption 
1 
 
Alcoholic beverages; Spirituous 
drinks, wines and beer  
 2 
 
2012: SEK 11 636 147 045 2013: SEK 12 115 103 452 
 3 
 
2012: 181 265 702  2013: 182 074 034  4 
 
2012: 459 574 615  2013: 465 832 152  5 
 
2012: SEK 47 645 000 000 2013: n/a  
 
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