G/STR/N/16/EU  
 
30 September 2016  
(16-5225) Page: 1/6 
Working Party on State Trading Enterprises  Original: English  
 
 STATE TRADING  
NEW AND FULL NOTIFIC ATION  PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND  PARAGRAPH  1 OF THE UNDERSTANDI NG ON  
THE INTERPRETATION O F ARTICLE  XVII 
EUROPEAN UNION 
The following communication, dated 29 September 2016, is being circulated at the request of the 
Delegation of the European Union . 
 
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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) enc ompassed 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 company th at 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 red uce 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.  
 
B. Summary of legal basis for granting the relevant exclusive or spec ial 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 directives issued by the gove rnment in its capacity as the owner.  
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
 
A. Summary statement providing overview of operations of the state trading enterprise  
 
Systembolaget has a nationwide retail network comprising 436 s tores 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 
instead delivering the items on beha lf of Systembolaget. The agents account for approximately 1% G/STR/N/16/EU  
 
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  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 
purch asing alcoholic beverages wherever they may live in Sweden and exist in all municipalities in 
Sweden, but one. The Swedish Parliament sets the guidelines for the stores' opening hours.  
 
According to Systembolaget's contract with the government, Systembola get 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 t he subsidiary IQ -Initiativet AB. IQ -Initiativet works to 
persuade people to reflect on their attitudes towards and behaviour  in relation to alcohol. The aim 
is to reduce alcohol consumption and thereby the harm caused by alcohol.  
 
B. Specification of excl usive 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 conditions for participation  
 
As said above, Systembolaget holds the retail monopoly for alcoholic beverages in Sweden.  
Other (non state) entities are allowed to import and export alcoholic beverages. As described 
below under p.3.8 wholesa le activities may be conducted by an authorised warehouse keeper or 
registered consignee of alcoholic goods.  
 
D. How import/export levels are established by the state trading enterprise  
 
Systembolaget may not export any alcohol to other countries. Systembo laget 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 Alcohol Act import the 
product within the framework of its priv ate import service.  
 
E. How export prices are determined  
 
As stated above, Systembolaget may not export any alcohol according to the Alcohol Act.  
 
F. How the resale prices of imported products are determined  
 
The resale price of an imported product, at Sy stembolaget , is determined by adding the 
following mark -ups to the supplier's price; (i) a variable mark -up (currently 19%), (ii) a fixed 
mark-up (that is added on all items sold by Systembolaget and varies according to type of item). 
In addition, but outs ide the scope of Systembolagets business, the importers of alcoholic 
beverages to Sweden add usual import costs and profit margins in order to cover costs such as: (i) 
transport and administrative costs, (ii) charge for customs (if applicable), (iii) recyc ling costs, (iv) 
the applicable Excise Duty on Alcohol and (v) VAT.  
 
G. Whether long -term contracts are negotiated by the state trading enterprise. Whether 
the state trading enterprise is used to fulfil contractual obligations entered into by the 
governme nt 
 
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 in a 
non-discriminato ry manner. The principle of non -discrimination 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. T he purchasing terms are reviewed – and updated – in 
general twice each year.  G/STR/N/16/EU  
 
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  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% alcohol by volu me (with 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 
exempted f rom 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 beverages 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 
Public Health Agen cy of Sweden is required for the purchase of spirit drinks, wine and strong beer 
for commercial purposes, such as food production.  
 
The legal age limit for buying 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 purchase 
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, Systembolaget may not export alcoholic beverages.  
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
 
 
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  G/STR/N/16/EU  
 
- 4 - TABLE I  
STATE TRADING: NAME OF STATE TRADING ENT ERPRISE  
SYSTEMBOLAGET AB  
STATISTIC AL INFORMATION – IMPORTS: 2013 - 2015 
Year Description of product(s) 
including HS numbers  Total quantity 
imported (litres)*  Quantity imported 
by state trading 
enterprise ( litres )** Average import 
price (SEK incl. 
VAT)***  Average 
representative 
domestic sal es 
price (SEK incl. 
VAT)****  mark -up National 
production1 
 1 2 3 4 5 6 7 
2013 
Alcoholic beverages; 
spirituous drinks, wines and 
beer 281 224 201  116 621  312.49  68.66  n/a 534 0001  
2014 281 384 606  132 909  339.95  70.17  n/a 575 000  
2015 282 959 418  140 605 299.19  73.32  n/a n/a2 
 
 
                                                
1 2013 statistics is submitted as the data on National production was missing at the time of the previous notification . 
2 n/a = National production 2015; statistics as compiled by the Public Health Agency of Sweden is not available yet. The latest figure concerns statistics regarding 
year 2014 .  
  G/STR/N/16/EU  
 
- 5 - TABLE II  
STATE TRADING: NAME OF STATE TRADING ENT ERPRISE  
SYSTEMBOLAGET AB  
STATISTICAL INFORMAT ION, EXPORTS  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
exported3 Quantity exported 
by 
state trading 
enterpr ise1 Average 
procurement price4 Average  
representative  
domestic sales 
price  Average export 
price  National 
production  
1 1 3 4 5 6 7 
N/A 
According to the 
Alcohol Act, 
Systembolaget may 
not export alcoholic 
beverages.        
                                                
3 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
4 In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.   
  G/STR/N/16/EU  
 
- 6 - TABLE III  
STATE TRADING: NAME OF STATE TRADING ENT ERPRISE  
SYSTEMBOLAGET AB  
STATISTICAL INFORMAT ION - DOMESTIC ACTIVITIES:  2013 - 2015 
Year Description of product(s) 
including HS numbers  Domestic purchases by 
state trading enterprise 
(SEK excl. Excise Duty on 
Alcohol)*  National producti on 
(litres) 1 Domestic sales 
(litres) by state 
trading 
enterprise**  National 
consumption2 
1 2 3 4 5 
2013 
Alcoholic beverages; spirituous 
drinks, wines and beer  12 115 103 452  182 074 034  465 832 152  49 062 000 0005 
2014 12 349 487 347  186 277 807  467 662 412  51 517 000 000  
2015 12 730 282 988  184 651 015  467 610 433  n/a6 
 
 
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5 2013 statistics is submitted as the data on National consumption was missing at the time of the previous notification . 
6 n/a = Na tional consumption 2015; statistics as compiled by the Public Health Agency of Sweden is not available yet. The latest figure  concerns statistics 
regarding year 2014 .