WORLD TRADE  
ORGANIZATION   
G/STR/N/13/EU 
G/STR/N/14/EU 
17 October 2012 
 (12-5625) 
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 28 June 2012,  is being circulated at the request of the 
Delegation of the European Union.    
_______________ 
 
 
 Pursuant to Article XVII:4(a) of GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the GATT 199 4, and in accordance with the decision on the 
frequency of notifications
1, the European Union makes the following new and full notification of its 
state trading enterprises, covering the period since the last notification (in 2009).   
 
                                                      
1 Contained in document G/STR/8. G/STR/N/13/EU 
G/STR/N/14/EU 
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  I. ENUMERATION OF STATE TRADING ENTERPRISES  
 
A. Identification of state trading enterprises. 
 
 Systembolaget AB.  B. Description of products affected (including tariff item number(s) encompassed in product 
description). 
  Alcohol beverages (spirituous drinks, wines and strong beer). 
 II. REASON AND PURPOSE 
 
A. Reason or purpose for establishing and/or maintaining state trading enterprise. 
  Systembolaget AB is a state-owned limited co mpany 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 tota l alcohol consumption by limiting availability.  
Systembolaget further strives to help limit the medical and social harm caused by alcohol, and 
thereby improve public health. 
 
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of  statutory or constitutional powers. 
 
 Systembolaget's mandate is governed by the Swedish Alcohol Act, by Systembolaget's 
contract with the government and by the directiv es issued by the government in its capacity as 
our owner. 
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
 
A. Summary statement providing overview of opera tions of the state trading enterprise. 
 
 Systembolaget has a nationwide retail network comprising 418 stores and more than 
500 agents (in smaller communities with an insu fficient 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 instead delivering the items  on behalf of Systembolaget.  The agents 
account for approximately 1 per cent of Systembol aget's turnover and carry no items in stock, 
instead the consumers order th e 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 muni cipalities in Sweden, but one.  The Swedish 
Parliament sets the guidelines for the stores' opening hours.  
 
 According to Systembolaget's contract with the government, Systembolaget shall inform the 
public in Sweden about the risks combined with  the consumption of al coholic beverages.  
This undertaking is also mentioned in Systembol aget's Articles of Association.  As one way 
of fulfilling this undertaking, Systembolaget h as formed the subsidiary 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 alc ohol consumption and thereby the harm caused by 
alcohol. 
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  B. Specification of exclusive or special rights or  privileges enjoyed by the state trading 
enterprise.  
 
 Systembolaget holds the retail monopoly for alcoholic beverages in Sweden. 
 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and c onditions for participation. 
 
 See above under III.B as regards retail.  Fo r other types of sale, see below under H. 
 
D. How import/export levels are established 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 consumers.  If a customer wishes to buy a 
product that is not included in the range, Systembolaget shall according to the Swedish 
Alcohol Act import the product within the framework of its private import service.  
 
E. How export prices are determined. 
 
 As stated above, Systembolaget may not export any alcohol according to the Swedish Alcohol 
Act. 
 
F. How the resale prices of imported products are determined. 
  The resale price of an imported product is determined by adding the following mark-ups to 
the supplier's offering price;  (i) a variable mark-up (currently 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 fo r customs (if applicable), (v) recycling cost, 
(vi) the applicable Excise Duty on Alcohol and (vii) VAT .  
 
G. Whether long-term contracts are negotiated by th e 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 II.B, a contract with the government 
(Sw. Avtal mellan Systembolaget AB och staten) dated 9 May 2011. 
 
(ii) As Systembolaget is a monopoly, it is obliged to treat all beverage suppliers equally.  
The principle of equal treatment means that 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 upda ted– in general twice each year. 
 
H. 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 per cent alcohol by volume (with the exception of beer 
where the limit is 3.5 per cent by volume).  B eer with alcohol content between 2.8 and 3.5 per 
cent by volume is taxed in Sweden by the same general rules as stronger beer whereas beer 
containing less than 2.8 per cent alcohol by volum e is exempted from alcohol taxation.  Beer 
with no more than 3.5 per cent alcohol by volum e can be sold in general stores and gasoline 
stations also selling food (and do not need a special license).  Further, on-premise sale of G/STR/N/13/EU 
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  alcoholic beverages takes place in restaurants, bars and cafés.  A special license is required for 
on-premise sales of alcoholic beverages str onger than 3.5 per cent alcohol by volume.  
 
 The Swedish 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 authorised warehouse keeper or registered consignee of alcoholic goods.  
The authorisation and registration is conducted by the Swedish Tax Agency.  A license issued 
by the Swedish National Institute of Public Hea lth 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. 
 IV. STATISTICAL INFORMATION ( SEE ATTACHED TABLES I-III)  
 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE) 
  According to the Swedish Alcohol Act, Syst embolaget may not export alcoholic beverages. 
 VI. ADDITIONAL INFORMATION (AS APPROPRIATE)   
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 Page 5TABLE I 
 
Systembolaget AB 
 
STATISTICAL INFORMATION, IMPORTS 
 
 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
imported1 Quantity imported by 
state trading 
enterprise1 Average import price Average representative 
domestic sales price Mark-up2National production 
1 
Alcoholic 
beverages; 
Spirituous drinks, 
wines and beer 2 
Quantity imported 2010;  
263,168,000 litres 3 
Quantity imported 2010;  
97,173 litres 4 
Average import price 2010;  
SEK 279.74 per litre 
(including VAT) 5 
Average Representative 
Domestic Sales Price 2010;  
SEK 66.23 per litre 
(including VAT) 6 7 
National production 2010;  
502,000,000 litres 
 Quantity imported 2011;  
275,870,237 litres Quantity imported 2011;  
108,408 litres Average import price 2011;  
SEK 271.07 per litre 
(including VAT) Average Representative 
Domestic Sales Price 2011;  
SEK 66.28 per litre 
(including VAT)  National production 2011;  
statistics as compiled by the 
Swedish National Institute 
of Public Health is not 
available yet. 
 
 
 
 
                                                      
1 In cases where no imports have taken place under columns 2 or 3, provide an explan ation under Section V of this questionnaire.  
2 Members may report either under columns 4 and 5 or under column 6.  
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Page 6 TABLE II 
 
Systembolaget AB 
 
STATISTICAL INFORMATION, EXPORTS 
 
 
Description of product(s) 
(including HS number(s)) Total quantity 
exported1 Quantity exported 
by state trading 
enterprise1 Average 
procurement price2 Average  
representative 
domestic sales price Average export 
price National 
production 
1 
N/A 
According to the Swedish Alcohol 
Act, Systembolaget may not export 
alcoholic beverages. 2 3 4 5 6 7 
 
 
 
 
 
                                                      
1In cases where no exports have taken place u nder columns 2 or 3, provide an explanat ion under Section V of this questionnaire. 
2In cases where the initial procurement price is augmented by other payments, additional paymen ts should also be reported.  
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 Page 7TABLE III 
 
Systembolaget AB 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise National production Domestic sales by 
state trading enterprise National consumption 
1 
Alcoholic beverages; 
Spirituous drinks, wines and 
beer  2 
Domestic total purchases 2010 
(excl. Excise Duty on Alcohol);  
SEK 10,803,377,178 3 
Sales by Systembolaget 2010 
of nationally produced items;  
181,197,271 litres 4 
Domestic Sales 2010;  
453,866,382 litres 5 
National consumption 2010; 
SEK 47,817,000,000 
 Domestic total purchases 2011 
(excl. Excise Duty on Alcohol);  
SEK 11,097,186,000 Sales by Systembolaget 2011 
of nationally produced items;  
182,255,749 litres Domestic Sales 2011;  
457,708,803 litres National consumption 2011;  
statistics as compiled by the 
Swedish National Institute of 
Public Health is not available 
yet 
 
 
 
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