(Last updated: 2 Jul 2011)

Business etiquette

Business tips

Meetings can be arranged with ease and this extends to both the commercial and public sector. Ease of contact at all levels of the business community is a feature in almost every organisation. Due to the tight schedules of most Danish business people, it is recommended you arrange appointments well in advance. If you are going to be delayed you should call your host to notify and possibly set a new time.

At formal meetings and occasions surnames are used, but in the daily modern business environment use of first names is common.

Decision making is frequently by consensus, so on-the-spot decisions are rare and attempts to force a decision will be counter productive.

Danes like to entertain at home and it is customary to bring a small gift to the host. At dinners, particularly formal dinners, you should not drink from a glass on the table until the host has properly welcomed the guests. The Scandinavian custom of toasting individuals around the table is common and it is good manners to reciprocate holding eye contact for a suitable period with each guest around the table. The toast in Danish is ‘Skål’ (pronounced ‘skoll’).

English is spoken almost universally in Denmark and definitely in most restaurants. Lunch normally starts between 12 midday to 12.30pm while the evening dinners starts around 6.00pm–7.00pm.

Generally Danes have five weeks of holiday per year, and the annual vacation period is from late June to beginning of August. Visits to Denmark during this period should be avoided, as it will be difficult to arrange appointments and hotel accommodation. This also applies to the Christmas/New Year period.

It is advisable to ask whether it  isokay to smoke before lighting up in someone’s office or home.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

As a full member of the European Union (EU), most import requirements correspond to EU Commission regulations. As such, duty rates are applied cost, insurance and freight (CIF) basis to all dutiable products imported from non-EU countries with certain exceptions.

Australian exporters should stay attentive to three areas where barriers to intra-EU trade remain most prevalent. These areas include product specifications, product approval and documentation and labelling. Continuing problems with product specifications are expected, with many companies having encountered different requirements.

Denmark has separate import requirements on a number of products such as food. The separate requirements are generally more restrictive due to Denmark’s high veterinary standards. In general, Danish importers assume the responsibility for assuring that imported consumer-oriented products are in compliance with Danish Government and EU regulations.

Single-column tariff based on the Harmonised System. Most duties are ad valorem, based on the GATT valuation system approximately CIF value (Incoterms 2000).

As a member of the European Community (EC), Denmark offers duty free access to other full members of the EC. Preferences are given to associate members of the Community, developing countries and European Economic Area (EEA) members. Common External Tariff (CET) is applicable to other countries.

Customs authority contact details:

Permanent Secretary
Director General of Customs and Taxation
Ministry of Taxation Nicolai Eigtvdes Gade 28
DK-1402 Copenhague K
Tel: +45 33 923 392
Fax: +45 33 149 105

Non-tariff barriers

Import restrictions

Most goods may enter Denmark free from restriction. Import licences, issued by the Ministries of Industry, Agriculture or Fisheries are required only for a limited range of items. Import licences are required for agricultural products and textiles, as well as products originating in specified countries.

The validity period for licences is nine months, however, the period needs to be verified occasionally with certain sources for certain products, including:

For agricultural products
EU Direktoratet
Kampmannsgade 3
DK-1780 Copenhagen V
Tel: +45 33 958 000

For textile products
Erhvervsfremme Styrelsen
Dahlerups Pakhus, Langelinie Alle 17
DK- 2100 Copenhagen E
Tel: +45 35 466 000

Other general information

Foreign exchange is readily available through banks authorised by the Danmarks Nationalbank.

Products containing cadmium are prohibited.

A wide range of items are subject to mandatory testing by one of a number of specialist government agencies. Approval must be obtained prior to import.

Electrical equipment is subject to testing and approval prior to sale (see also 'Public health requirements').

Product certification, labelling and packaging

Hay, straw or grass may not be used for packing plants and their parts.

Used sacks may not be used for packing potatoes, fodder, meal or bran.

Outer containers should carry the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified. The weight should appear on packages weighing over one metric tonne.

A range of items must show country of origin. Specified items must be marked Udenlandsk (ie. 'foreign produce').

Honey for retail sale must be packed in glass jars.

Containers made of PVC, which come into contact with food, are subject to strict composition requirements.

Food and most other consumer commodities are subject to strict labelling controls.

Textile labels must list the fibre.

Specific requirements should be checked with the importer.

Special certificates

Livestock, animal products, plants and plant products must be accompanied by a health certificate issued by the approved authority in the country of origin (see 'Public health requirements'). Wine and spirit imports require certificates of origin.

Documentary requirements

Pro-forma invoice

May be requested by importers when goods are subject to licence control. It should also include the same details as the commercial invoice.

Commercial invoice

No prescribed form. The importer will specify the number of copies required. The invoice must include:

• The name and address of both shipper and consignee
• The dates of invoice and purchase
• The invoice price of each item
• The FOB and CIF values (Incoterms 2000)
• The payment and delivery terms
• Discounts, rebates and other conditions of sale
• A full description of items (including net, gross and tare weights)
• The HS classification
• A signed declaration that the value stated is full, correct and true

Bill of lading/airway bill

No special regulations. Two copies are required. To Order bills are acceptable.

Packing list

Not compulsory but facilitates clearance. Details should agree with those on other documents.

Insurance

Normal commercial practices (see also 'Methods of quoting and payment').

Weights and measures

The metric system

Public health requirements

Livestock, some food, animal products, plants and plant products require health certifications issued by an approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service (AQIS), the Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Pharmaceuticals and medicaments must be analysed and approved by the State Chemical Supervision Service prior to importation.

Use of colouring materials, preservatives and other additives in food is strictly controlled.

The Danish Board for Approval of Electrical Equipment (DEMKO) must approve all electrical products prior to them being offered for sale.

Methods of quoting and payment

Quotes in Danish Krone are preferred but any other major currency is acceptable (including Australian dollars if clearly defined as such).

CIR (Incoterms 2000) are preferred.

A pro-forma invoice may be requested if the goods are subject to licensing. Some importers maintain floating insurance policies and prefer quotations C&F (Incoterms 2000) only.

Payment within 30 or 90 days net cash is normal. Requests for payment by irrevocable letters of credit are not recommended.

Taxation

As a member country of the European Community, Denmark requires foreign traders who are liable for tax and have a permanent business operation in Denmark to be registered with the Customs and Tax Administration for a value added tax (VAT) number.

Income tax levels in Denmark are among the highest in the world. A VAT of 25 per cent applies in Denmark and the corporate tax rate is 30 per cent. Banking and financial services are exempt from VAT.

In addition, special taxes or excise duties are levied on various specified items, such as:

• motor vehicles
• confectionery
• tobacco
• alcoholic beverages
• petrol
• a range of household appliances

Supplementary taxes apply for:

• electric bulbs
• coffee and tea
• soft drinks
• motor vehicle insurance
• ice cream
• flights originating in Denmark
• gas
• bottled gas
• coal
• fuel oil
• diesel oil
• electricity

Supplementary taxes for cosmetics, perfume and white goods have been abolished.

Taxation has been introduced on products, which cause damage to or increase environmental pollution. The products are:

• waste
• batteries
• weed killers
• CFCs
• containers of glass
• plastics
• cardboard
• metal for beverages
• vinegar and edible oils (retail size)
• disposable tableware
• plastic bags
• soil
• gravel
• chalk
• water from waterworks and wells