G/STR/N/18/EU  
 
6 July 2020  
(20-4651) Page: 1/17 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE 
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
EUROPEAN UNION 
The following communication, dated June 26, 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 1994, and in response to the call for no tifications set forth 
in document G/STR/N/18, the European Union notifies the following state trading enterprises.  
 
 
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, strong beer and other fermented alcoholic beverages) 
and non -beverage alcoholic preparations (Sw. alkoholdrycksliknande prep arat).  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
Systembolaget AB is a state -owned limited company that conducts retail sales of alcoholic beverages 
and as from 1 July 2019 also non -beverage al coholic preparations, 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.  
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 (2010:1622), by Systembolaget's 
contract with the government (2019:552) and by the directives issued by the governmen t in its 
capacity as the owner of Systembolaget.  G/STR/N/18/EU  
 
- 2 - 
 
  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 compris ing approx. 446 stores and more than 
490 agents (in smaller communities with an insufficient customer base for a store of their own). The 
agents act for and by authority from Systembolaget; they are not themselves selling the items but 
instead delivering t he items on behalf of Systembolaget. 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 and non -beverage alcoholic preparations wherever they may live in Sweden and 
thus Systembolaget is represented in all municipalities in Sweden. The Swedish Parliament sets the 
guidelines for the opening hours of Sy stembolaget's stores.  
According to Systembolaget's contract with the government, Systembolaget shall inform the public 
in Sweden about the risks combined with the consumption of alcoholic beverages and non -beverage 
alcoholic preparations. This undertaking is also mentioned in Systembolaget's Articles of Association. 
As one way of fulfilling this undertaking, Systembolaget has formed the subsidiary IQ -Initiativet AB. 
IQ-Initiativet works to persuade people to reflect on their attitudes towards and behavio ur in relation 
to alcohol. The aim is to reduce alcohol consumption and thereby the harm caused by alcohol.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
Systembolaget holds the retail monopoly for alcoh olic beverages and non -beverage alcoholic 
preparations 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 stated above, Systembolaget holds the retail monopoly for alcoholic beverages and non -beverage 
alcoholic preparations in Sweden.  
Other (non -state) entities are allowed to import and export alcoholic beverages. As described in 
section III.H below , wholesale activities may be conducted by an aut horised 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. Systembolaget is only entitled to 
import alcohol u pon the request of individual consumers and provided that the product is not already 
included in Systembolaget's range. 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 requested by 
the customer within the framework of Systembolaget's 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 pri ces of imported products are determined  
The resale price of an imported product from Systembolaget's supplier, at Systembolaget, is 
determined by adding the following mark -ups to the supplier's price to Systembolaget before Excise 
Duty on Alcohol and, if a pplicable, recycling fee; (i) a variable mark -up (currently 17%) and (ii) a 
fixed mark -up (that is added on all items sold by Systembolaget and varies according to type of 
item). Excise Duty on Alcohol and, if applicable, recycling fee, as well as VAT is t hen added.  
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 
government  G/STR/N/18/EU  
 
- 3 - 
 
  Systembolaget has, as explained under section II.B, a co ntract with the government 
(Sw. Tillkännagivande (2019:552) av avtal mellan Systembolaget Aktiebolag och staten)) dated 
19 June 2019.  
As Systembolaget is a monopoly; it is obliged to treat all suppliers of spirituous drinks, wines and 
strong beer and non-beverage alcoholic preparations in a non -discriminatory manner. The principle 
of non -discrimination means that Systembolaget must apply the same terms and conditions to all 
such suppliers at any given time, and is not at liberty to negotiate the wordin g of them with one or 
several individual suppliers. The purchasing terms are reviewed – and updated – in general twice 
each year in accordance with a pre -set procedure.  
H. Brief description of market structure  
Systembolaget has a monopoly for off -premise r etail sale in Sweden - for all alcohol beverages and 
non-beverage alcoholic preparations containing more than 2.25% alcohol by volume (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 i s taxed in Sweden by the same general rules as stronger beer whereas beer 
containing 2.8% or less alcohol by volume is exempted from alcohol taxation. Beer with no more 
than 3.5% alcohol by volume can be sold in general stores and gasoline stations also se lling 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, strong beer and other fermented 
alcoholic beverages as well as non -beverage alcoholic preparations to the retail monopoly, holders 
of serving licenses and other wholesalers. Wholesale activities m ay 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 seller and/or importer of alcoholic products that are not 
beverages such as for examp le denatured alcohol used for cooking, food additives and/or food 
products such as "pears in cognac" must notify the Public Health Agency of Sweden of its business.  
The legal age limit for buying alcoholic beverages in Systembolaget stores is 20 years. The  legal age 
limit for buying 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) 
  G/STR/N/18/EU  
 
- 4 - TABLE I  
STATE TRADING: SYSTEMBOLAGET AB  
STATISTICAL INFORMATION – IMPORTS: 2013 - 2019 
Year Description of 
product(s) 
including HS 
numbers  Total quantity 
imported 
(litres)*  Quantity imported 
by state trading 
enterprise (litr es)** Average import price 
(SEK incl. VAT)***  Average r epresentative 
domestic sales 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 534 000  
2014 281 384 606  132 909  339.95  70.17  n/a  575 000  
2015 282 959 444  140 605  299.19  73.45  n/a  544 000 0001 
2016 287 347 374  140 960  329.04  74.28  n/a  565 000 000  
2017 287 184 623  140 802  388.79  75.97  n/a  n/a2 
2018 299 179  329 135 008 405.96  76.52  n/a   
2019  301 664  387 138 947 414.26  78.66  n/a   
 
1 2015 statistics is submitted as the data on National production was missing at the time of the previous notification  
2 n/a = National production 2017; statistics as compiled by the Public Health Agency of Sweden are not available yet. The lates t figure co ncerns statistics 
regarding year 2016.   
  G/STR/N/18/EU  
 
- 5 - TABLE II  
STATE TRADING: SYSTE MBOLAGET AB  
STATISTICAL INFORMATION, EXPORTS  
NOT APPLICABLE  
 
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 
 
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, additiona l payments should also be reported.   
  G/STR/N/18/EU  
 
- 6 - TABLE III  
STATE TRADING: SYSTE MBOLAGET AB  
STATISTICAL INFORMATION - DOMESTIC ACTIVITIES: 2013 - 2019 
Year Description of product(s) 
including HS numbers  Domestic purchases by 
state trading enterprise 
(SEK excl. Excise Duty on 
Alcohol)*  National production 
(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  49 062 000 000  
2014 12 349 487 347  186 277 807  467 662 412  51 517 000 000  
2015 12 539 947  5905  184 651 091  467 610 433  54 228 000  0006 
2016 13 057 440 052 188 556 487  475 903 862  57 026 000 000  
2017 13 419 686 121  192 489 286  479 673 910  n/a7  
2018 14 360 907 249  202 143  352 501 322  681  
2019 15 183 744 923  206 479  901 508 144  287  
 
 
5 Earlier reported figure included non -alcoholic beverages, plastic bags and gift items. These items have been removed in the amended figure.  
6 2015 statistics are submitted as the data on National consumption was missin g at the time of the previous notification.  
7 n/a = National consumption 2017; statistics as compiled by the Public Health Agency of Sweden are not available yet. The late st figure concerns statistics 
regarding year 2016.  G/STR/N/18/EU  
 
- 7 - 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprises  
Alko Oy (Alko Inc.).  
B. Description of products affected (including tariff item number(s) encompassed in  
product description)  
Alcoholic beverages  (spirituous drinks, wines and strong beer over 5 .5%). 
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
Alko Inc. is a state -owned limited company having an exclusive right (monopoly) stipulated in th e 
Finnish Alcohol Act to the retail sale of alcoholic beverages containing over 5 .5% alcohol.  
Alko's monopoly and operations are based on the social and health policy objective of mitigating the 
adverse effects of alcohol consumption. The objective of the operations of Alko Inc. is to limit alcohol 
consumption and alcohol -related harms. The company is steered and supervised by the Ministry of 
Social Affairs and Health.  
B. Summary of legal basis for granting the relevant exclusive or special rights or privil eges, 
including legal provisions and summary of statutory or constitutional powers  
Alko's mandate is governed by the Finnish Alcohol Act (1102/2017) and the Government Decree on 
the enforcement of the Alcohol Act (151/2018).  
Alko Inc. belongs to the admini strative branch of the Ministry of Social Affairs and Health and the 
State's special assignment companies, "which have been assigned a certain task by the State ". 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement prov iding overview of operations of the state trading enterprise  
The sole purpose of Alko Inc. is to organize retail sales of above mentioned alcoholic beverages. It 
has a nationwide retail network comprising 356 stores and 60 order points.  
The aim of the arra ngement is to reduce alcohol consumption and thereby the harm caused by 
alcohol in several ways:  
• the system limits physical availability of alcoholic beverages (the amount and the opening 
days and hours of retail stores);  
• the system limits marketing and sa les promotion activities of alcoholic beverages in Alko's 
retail customer service (however Alko Inc. does not restrict the possibilities of producers and 
importers to advertise their products independently outside Alko's premises);  and 
• the system safeguards responsible sales of alcoholic beverages (informing the public about 
the health risks of alcohol consumption, ensuring age checks and no sales to intoxicated 
persons).  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
Alko Inc. has the exclusive right to the retail sale specified in the Alcohol Act for above mentioned 
alcoholic beverages in Finland. Alko's exclusive right for retail sale does not cover any restrictions of 
import or export of  alcoholic beverages, but it forbids any other retail sale of alcoholic beverages to 
consumers in Finland regardless of the origin of the seller.  G/STR/N/18/EU  
 
- 8 - 
 
  C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportat ion and conditions for participation  
According to the Alcohol Act all domestic and foreign enterprises, which include at present Alko Inc. 
itself, 186 producers, 350 wholesalers of alcoholic beverages, 6 ,000 retail shops selling alcoholic 
beverages of 2 .8 to 5.5% and 9 ,500 on premise restaurants, have the right to import and export 
alcoholic beverages without any licenses or quotas.  
However, Alko Inc holds the monopoly for retail sale of alcoholic beverages above 5 .5%. 
Furthermore, the 6 ,000 retail shops se lling alcoholic beverages of 2 .8 to 5 .5% and the 9 ,500 on -
premise restaurants need a license to sell alcoholic beverages to customers in Finland. No licence is 
needed for the sale of alcohol beverages of less than 2 .8% to customers in Finland.  
D. How impor t/export levels are established by the state trading enterprise  
The sole purpose of Alko Inc. is to organize retail sales of above mentioned alcoholic beverages.  
Any domestic or foreign producer or seller of alcoholic beverages may apply for a listing of t he 
product to Alko's general selection (currently 7 ,600 products are displayed and sold in the stores).  
Procedures for listing alcoholic beverages for retail sale in Alko apply similarly for domestic and 
foreign operators. Information is published in Alko' s website:  
https://www.alko.fi/en/alko -inc/for -suppliers/  
Additionally any domestic or foreign producer has the right to list their products to Alko's sale -to-
order selection (currently 3 ,800 p roducts to be transported to the nearest store for the consumer)  
by announcement only. Alko Inc. does not affect or limit the quantities of alcoholic beverages to be 
sold in general selection or sale -to-order selection. i.e. the products may stay in the se lection as 
long as customers want to buy them.  
Alko Inc. does not export any alcoholic beverages.  
E. How export prices are determined  
Alko Inc. does not export alcoholic beverages; hence it does not influence their pricing.  
F. How the resale prices of imported products are determined  
The retail prices of all domestic and imported products are determined in equal terms by adding the 
following  mark-ups to the "back -door price" determined by the supplier:  
• Alko's margin (Coefficients for different beverage categories currently between 1,50 and 
1,81) ; 
• possible bottle or can deposit ; 
• excise duty calculated according to the Council directive 92/83/E EC1 of 19 October 1992 ; 
• on the harmonization of the structures of excise duties on alcohol and alcoholic beverages;  
• environmental tax on retail containers ; and 
• VAT, 24%.  
Alko's  margins and other pricing information are openly published in Alko's website:  
https://www.alko.fi/en/alko -inc/for -suppliers/prices/price -calculator  
If a foreign producer  does not want to deliver the products to Alko shops, it may use any 
contractor/importer to do this or request the service from Alko (freight, insurance, warehouse and 
shop delivery costs are added).  
 
1 O.J. L 316, 31.10.1992:   
http://eur -lex.europa.eu/legal -content/EN/TXT/?qid=1491894841970&uri=CELEX:31992L0083  G/STR/N/18/EU  
 
- 9 - 
 
  G. Whether long -term contracts are negotiated by the sta te trading enterprise.  Whether 
the state trading enterprise is used to fulfil contractual obligations entered into  by the 
government  
According to 25§ of the Alcohol Act (1102/2017), it is obliged to treat all domestic and foreign 
beverage suppliers equally . The principle of equal treatment means that Alko Inc. must apply the 
same terms and conditions to all beverage suppliers at any given time, and is not at liberty to 
negotiate different terms with one or several individual suppliers.  
The general purchasin g terms are reviewed and updated twice each year.  
H. Brief description of market structure  
Alcoholic beverages, including spirituous drinks, wines and strong beer, over 5 .5% are sold to 
customers in 356 Alko shops. Additionally Alko has 60 delivery points in the rural areas, where 
customer's orders are transported to be picked by customers (no beverages on display in delivery 
points).  
Alcoholic beverages of 2 .8 to 5 .5% are sold to customers in 6 ,000 licensed retail grocery shops  and 
all beverages under 2 .8% freely without any license requirements.  
All alcoholic beverages are served to customers in 9 ,500 licensed restaurants and pubs.  
The total number of alcohol products in the market is around 22 ,000. 
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III) 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Not applicable.  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE) 
  G/STR/N/18/EU  
 
- 10 - TABLE I  
STATE TRADING: ALKO INC. 
STATISTICAL INFORMATION, IMPORTS  
Description of 
product(s)  
(including HS 
number(s))  Total quantity imported  
(litres)  Quantity imported by  
state trading 
enterprise 
(litres) Average import 
price Average 
representative  
domestic sales 
price Mark-up 
(per litre) National production  
(litres)  
1 2 3 4 5 6 7 
Alcoholic beverages  2014: 143  563 000  
2015: 144  672 000  
2016: 139  196 000 
2017: 135 207 000  
2018: 139  503 000  2014: 1 687  581  
2015: 1  921 310 
2016: 2  239 623 
2017: 1  643 102 
2018: 1  601 715+  2014: 13,30 €/l  
2015: 13,60 €/l  
2016: 13,75 €/l  
2017: 14,90 €/l  
2018: 14,95 €/l   
2014: 2.04 EUR  
2015: 2.10 EUR  
2016: 2.16 EUR  
2017: 2.21 EUR  
2018: 2.30 EUR  2014: 557  234 136 
2015: 570  607 851 
2016: 570  509 000 
2017: 566  000 000  
2018: 558  700 000  
+ this amount corresponds to the imported alcoholic beverages by Alko, as requested by the foreign seller. (Alternatively all f oreign producers and sellers have the 
right to import alcoholic beverages to Finland by themselves without any prior licensed or qu otas – see III C.).  
  
  G/STR/N/18/EU  
 
- 11 - TABLE II  
STATE TRADING: ALKO INC. 
STATISTICAL INFORMATION, EXPORTS  
NOT APPLICABLE  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
exported  Quantity exported by  
state trading 
enterprise1 Average procurement 
price Average 
representative  
domestic sales price  Average export price  National production  
1 2 3 4 5 6 7  
  G/STR/N/18/EU  
 
- 12 - TABLE III  
STATE TRADING: ALKO INC 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of product(s)  
(including HS number(s))  Domestic purchases by  
state trading enterprise  National production  
(litres)  Domestic sales by  
state trading enterprise  
(litres)  National consumption (litres)  
1 2 3 4 5 
Alcoholic beverages  2014: 96  708 066 
2015: 94  043 895 
2016: 93  506 972 
2017: 93  196 728 
2018: 85  266 536 2014: 557  234 136 
2015: 570  607 851 
2016: 570  509 000 
2017: 566  000 000 
2018: 558  700 000 2014: 96  708 066 
2015: 94  043 895 
2016: 93  506 972 
2017: 93  196 728 
2018: 85  266 536 2014: 589  545 000 
2015: 577  570 000 
2016: 574  031 000 
2017: 568  190 000 
2018: 568  327 000 G/STR/N/18/EU  
 
- 13 - 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprises  
British Wool Marketing Board (BWMB).  
B. Description of products affected (including tariff item number(s) encompassed in 
product description)  
Fleece wool (CN code: 5101110000).  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
The British Wool Marketing Board's purpose is to maximise the value of wool on behalf of 
approximately 40,000 produc ers. It does this by grading (sorting) their wool and amalgamating it 
by type to form commercially viable lots which are tested to IWTO standards and sold steadily 
throughout the year by public auction.  
B. Summary of legal basis for granting the relevant e xclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
The British Wool Marketing Board was established in 1950. Its powers are laid down under the British 
Wool Marketing Scheme (Approval) Ord er 1950 and the Agricultural Marketing Act 1958. The Order 
provides that no sales of wool are permitted except through the agency of the Board (as per 
paragraph 71). Whilst exemptions and therefore the right to sell wool independently are available 
at the discretion of the Board many producers opt to sell their wool outside of the scheme to one of 
British Wool's competitors. The scheme also puts an obligation on BWMB to collect wool from any 
producer with 4 sheep or more, this is in effect a Universal Servi ce Obligation. BWMB's competitors 
do not operate with this constraint.  
http://www.legislation.gov.uk/uksi/1950/1326/pdfs/uksi_19501326_en.pdf  
III. DESCRIPTION OF THE FUN CTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations of the state trading enterprise  
The Scheme exists to regulate the collection and marketing of UK fleece wool and obliges 
British  Wool to provide a service to any  producer with 4 sheep or more.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
Whilst in theory BWMB  holds the monopoly on the collection of fleece wool from producers this is 
not the case in practice. British Wool's market share is ~80% with two significant competitors buying 
direct from farm.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Exemptions exist for producers of wool from certain specified rare breeds of sheep, producers who 
sell small quantities of wool to handspinners, and producers who sell w ool directly to a buyer outside 
the UK where this results in the export of this wool from the UK. Skin wool is excluded from the 
Scheme. The Board arranges the collection of wool from producers and sells the wool, on their 
behalf, via auction. There was a government Guarantee for the price of wool until 1992 after which 
time the auction price, less costs, have been returned to producers. British Wool receives no financial 
support from the government. British Wool is sold at open auctions, organised by the B oard, in free 
competition with wool from other sources.  G/STR/N/18/EU  
 
- 14 - 
 
  The Board's activities are designed to ensure for producers an orderly collection and marketing of 
wool, without distorting the operation of the market. With UK wool only accounting for 1.5% of 
global  wool production, the Board has no role in determining market prices, although it can dictate 
a reserve price at auction.  
D. How import/export levels are established by the state trading enterprise  
BWMB does not import any wool, therefore non -UK producers (i.e. the producers of wool from non -
UK sheep) are not subject to the Scheme. The BWMB has no role in exports – the buyers are free to 
use the wool for whatever purposes they have bought it.  
E. How export prices are determined  
Merchants buy wool at auction  and may export this wool in both greasy and scoured form but as the 
BWMB has no role in exports, it has no control over export prices.  
F. How the resale prices of imported products are determined  
The BWMB does not import any wool/woollen products and, the refore, has no control over the resale 
prices.  
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 
government  
All UK wool is sold via auction and, therefore, the BWMB has no contractual obligations, either private 
or governmental.  
H. Brief description of market structure  
The BWMB is required to register all producers with four or more sheep (with the exception of 
Shetland, which has its own arrangement). It has an infrastructure of 11 grading Depots, 
18 Intermediate Depots and a network of collection centres and hauliers throughout the UK. The 
wool is graded and stored at the Depots until it is sold – no wool is released without payme nt being 
received. There are a number of Third Party Buyers who purchase wool directly from producers 
acting in competition with British Wool, some of which also buy at auction. British Wool is traded as 
a global commodity and, therefore, subject to global  market changes.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III) 
See Appendices  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Not applicable  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE) 
  G/STR/N/18/EU  
 
- 15 - TABLE I  
STATE TRADING: BRITI SH WOOL MARKETING BO ARD (BWMB)  
STATISTICAL INFORMATION, IMPORTS  
NOT APPLICABLE  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
imported9 Quantity imported by  
state tradin g 
enterprise1 Average import price  Average 
representative  
domestic sales price  Mark-up10 National production  
1 2 3 4 5 6 7 
 
9 In cases where no imports have taken place under columns 2 or 3, pro vide an explanation under Section V of this questionnaire. 
10 Members may report either under columns 4 and 5 or under column 6.  
  G/STR/N/18/EU  
 
- 16 - TABLE II  
STATE TRADING: BRITI SH WOOL MARKETING BO ARD (BWMB)  
STATISTICAL INFORMATION, EXPORTS  
NOT APPLICABLE  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
exported11 Quantity exported by  
state trading 
enterprise1 Average 
procurement price12 Average  representative  
domestic sales price  Average export 
price National production  
1 2 3 4 5 6 7 
 
11 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
12 In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.  
  G/STR/N/18/EU  
 
- 17 - TABLE III  
STATE TRADING: BRITI SH WOOL MARKETING BO ARD (BWMB)  
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  
Greasy Fleece Wool  
CN 5101110000  Nil 1 May – 30 April:  
2019E clip – 26.718 m kg  
2018 clip – 27.168 m kg  
2017 clip - 28.921 m kg  
2016 clip - 29.502 m kg  
2015 clip – 29.288 m kg   
2019E clip - £19.8m*  
2018 clip - £27.190 m  
2017 clip – £29.341 m  
2016 clip – £33.720 m  
2015 clip - £37.570 m  Estimated 15 m kg  
* THE DROP IN VALUE BETWEEN 1 MAY 2019 AND 30 APRIL 2020 IS LARGELY A FUNCTION OF THE COVID -19 SITUATION.  
 
__________