(Last updated: 2 Jul 2011)

Business etiquette

Business tips

Generally speaking Swedes have a lot in common with Australians. They are easy to get along with, first name terms are widely accepted, and they enjoy nature and sports. There are of course differences and the following will assist in developing good relationships.

Business practices:

• Most business people have tight schedules so it is advisable to seek appointments well in advance of your visit.
• Punctuality is required both for business and social appointments.
• First name terms are more common in younger, modern businesses than in traditional circles or at formal occasions, but if you are unsure, leave it to your host to suggest first names.
• General greetings are by handshake, stating clearly both your first name and surname.
• It is customary to offer your business card at the commencement of a meeting.
• Decision-making is frequently by consensus, therefore, on the spot decisions are rare and attempts to force a decision will be counter productive.

Social customs:

• If invited to a home it is customary to bring flowers or a small gift.
• If tradition is followed, at the dinner table the host will say a few words of welcome and at the end of the meal it is customary for the guest-of-honour to make a short speech thanking the host for their hospitality.
• Swedes frequently thank the host of a previous dinner during subsequent contact or by a follow up phone call or written note.
• At a formal dinner one should not drink from a glass on the table until the host properly welcomes the guests.
• The Nordic custom of toasting individuals around the table is often practiced and it is good manners to reciprocate, holding eye contact for a suitable period.
• Eating out is expensive especially in the evening with spirit prices being exorbitant.
• The annual vacation period occurs from late June to beginning of August and should be avoided, as appointments will be difficult to arrange. This also applies to the Christmas and New Year period.

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

Since EU membership in 1995, the European Customs Tariff has fully replaced the former Swedish system of tariff codes, levies and duties. Compliance with EU and Swedish standards is the most important factor when doing business in Sweden. Customs and tariffs for manufactured goods are generally not significant barriers. Most tariffs duties are ad valorem (per cent) and EU quotas apply to some foodstuff and agricultural products such as beef and dairy products.

Further information is available from the Swedish Board of Customs – www.tullverket.se/en.

Labelling and packaging

Most Australian imports should be marked 'Made in Australia' or with the word 'Import'. All foods packaged for retail sale must be similarly marked.

Foodstuffs must be properly labelled in Swedish (English is acceptable in some cases) and provide specific details of the type and composition of the food. All ingredients and weights must be given, and the use of preservatives, colours, antioxidants, emulsifiers, thickening agents, etc. must be declared on the label. Other regulations include:

• Labels for foods containing sugar must show the types of sugar, including milk sugar, malt sugar, fruit sugar and grape sugar
• Food containing saccharin and cyclamates is subject to specific labelling
• Labels for prepacked food with a limited shelf life must indicate the use-by dates
• Labels for frozen foods must show storage and thawing instructions
• Labels for honey must show country of origin
• Labels for cheese must show the country of origin and fat content

Medicines are subject to special labeling requirements determined by the Medical Board.

Labels on containers for poisons must show the names and nature of the product, the manufacturer's and importer's name and addresses, and instructions that the poisons must be kept away from children.

Domestic refrigeration equipment must be labelled with details of energy consumption.

Packaging

No special packing requirements but, if possible, goods should be packed to facilitate classification and determination of weight. The use of hay, straw or used sacks as packing are not advisable. If used, a sanitary certificate should accompany them.

Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified. Transport packages exceeding one metric tonne in weight must be marked with their gross weight.

Special certificates

Plants and plant products require phytosanitary certification issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, the Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

A range of foods, prescribed by the Swedish National Food Administration and specified in the Import Ordinance (1992) of the Swedish Food Regulations, must be accompanied by a certificate issued by the public food authority or another controlling authority in the country of origin. The certificate (in Swedish or in English with an authorised Swedish translation) must show:

• at the time of exportation, the food was fit for human consumption and from a food hygiene point of view it was satisfactorily packaged and loaded
• where relevant, the food meets the requirements specified in the ordinance
• if the original of the certificate is not provided, a copy certified by an authorised authority (see 'Guidelines', section 2.3) is acceptable
• meat and meat products must be accompanied by a veterinary certificate establishing the epizootic conditions of the animal and of the country

Other goods which may be suspected of introducing contagious animal or vegetable diseases or goods subject to special quality controls normally require a certified health certificate. These goods include certain animal products, used sacks, dairy containers, various foods and fatty emulsions.

Documentary requirements

Commercial invoice

No prescribed form. Minimum of three copies are recommended. The invoice must indicate:

• the name and address of seller (supplier)
• the name and address of consignee
• the date of the invoice
• the date of purchase
• the number, type and gross weight of packages
• the kind of goods
• the quality of the goods
• an invoice price for each item (showing freight and insurance separately)
• discounts
• rebates
• conditions of payment
• terms of sale
• delivery
• the date that the invoice was prepared
• the date the contract was signed

Many importers are authorised to use a Simplified Declaration Procedure (Immediate Release System) and they may have special requirements about the presentation of invoice data. Veterinary certificates and/or plant protection certificates are required for agricultural products and foodstuffs.

Bill of lading/Airway bill

Normal commercial practice. To Order bills are acceptable. Details must agree with those on the invoice and should contain the name of the importer, thus enabling the shipping line to notify the importer prior to the arrival of the goods at the port of entry.

Packing list

Required for and facilitates customs clearance.

Certificate of origin

When requested, two copies are required with details conforming with those on other shipping documents. Should be issued by an approved authority (see 'Guidelines', section 2.3).

Public health requirements

distribution and handling of foodstuffs is regulated by the National Food Administration (see also 'Import restrictions' above). Import permits issued by the National Food Administration are required for specified foods.

Only approved preservatives and additives may be used and importers are required to submit a written declaration that the products are free of non-approved additives.

Stipulated food standards and labeling requirements must be adhered to.

Vitamin-enriched food requires prior approval from the Swedish Board of Trade.

Meat, fats, dairy products, eggs, margarine, flour, bread, sugar, honey, juices and jams, marzipan, nuts and nut pastes must satisfy prescribed standards of quality.

Food containing saccharin and cyclamates is subject to specific requirements.

Eggs must be marked with the word import and the name of the country of production (see also 'packing, marking and labelling' above).

Imports of cereal and bakery products containing potassium bromate are prohibited.

Cadmium and products containing cadmium are banned.

Stringent regulations govern the distribution of drugs, pesticides, poisons, narcotics and other materials dangerous to health.

Pharmaceuticals, poisons, arms and explosives may be imported only by authorised persons and institutions.

Medicines, pharmaceutical and bacteriological preparations, syringes, cannula, narcotics and contraceptives require import permits issued by the National Board of Health and Welfare. The official reference is the Swedish Pharmacopoeia.

Certain bacteriological preparations can be imported only by the State Bacteriological Laboratory.

Poisons are subject to special labelling requirements (see 'Packing, marking and labelling').

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Taxation

Sweden enacted a major tax reform in 1991 and since then there have been several conforming adjustments of the tax system. The tax reform broadened the tax bases for both corporate and individual income tax purposes as well as reducing the nominal income tax rates. Foreign investors should, however, be aware of the high rates of social security taxes, which are mainly paid by employers.

Sweden levies a value added tax (VAT) currently at the rate of 25 per cent on the sale of goods and services. A lower rate of 12 per cent is applied to food products, hotel charges and some other services. Specific taxes, which are relatively high in some cases, are charged on goods such as alcoholic beverages, tobacco and petrol products.

For further information please see Taxes in Sweden 2009.