Exporting to Sweden

Sweden, or officially known as the Kingdom of Sweden, is a Northern European country with a population of 10 million. Sweden, which has an advanced e-commerce system, occupies an important economic position in the world. The economy of the country, which is generally based on energy systems, has strong foreign trade relations. In 2021, Sweden, which realized 187 billion dollars in imports, has very good trade relations with Turkey as well. Exporting to a country where nearly 150 million Turkish investments have been made in the last 20 years is easy. Sweden ranks 9th in terms of ease of doing business. Therefore, let’s take a closer look at how to export to Sweden, which provides business people with an easy trade experience for commercial activities.

How to Export to Sweden?

90% of the population of the 10 million people country consists of regular internet users with computers at home. With more than 7 million people being internet users for personal or business purposes, Sweden is a country open to foreign trade with its highly developed business world, which delights exporters for e-commerce activities. It is necessary to take advantage of this openness of Sweden to examine user data and to recognize the e-commerce users' demographics and behaviors. Considering that more than 100,000 Turks live in Sweden, it is easy to adapt to the country in terms of trade since there is some familiarity with Turkish sellers and products.

The majority of Sweden's commercial practices, shaped within the framework of EU membership, resemble those of European countries. Since it has adopted Europe’s common trade policy, there are no unexpected situations in taxation systems, certification applications, and commercial procedures. In recent years, due to fluctuating economic conditions, closely monitoring the exchange rate in foreign trade, recognizing the audience, and making accurate decisions have become more difficult. In this period, obtaining export consulting can be a guiding element for your business and you. As ODS Consulting, we prepare roadmaps for you in financial and strategic decisions regarding your business, helping you solidify your market position.

What are the Companies Exporting to Sweden?

Knowing the main e-commerce sites preferred by users in Sweden will facilitate exporters' work, guiding them in product selection and marketing techniques. Since the users of these sites are generally middle-aged, shaping your company's foreign trade activities based on the online behaviors of the audience will be beneficial for your company.

Sweden, the 19th largest e-commerce market in the world, earned 13 billion dollars from e-commerce activities in 2020. Apotea.se is one of the most widely used shopping sites in the country. Many categories of products are available on this site, which is primarily known for selling pharmaceuticals. The second site is CDON. This site, which primarily sells electronics, is one of the most popular sites. In addition to these sites, it is possible to find many products from A to Z at the Amazon Sweden branch of the widely used Amazon site around the world. Analyzing user data from these sites provides a significant advantage in understanding the market. The products sold on these sites and when looking at the overall export table, the selected products can vary in diversity. The automotive sector is the most prominent in terms of exports from Turkey to Sweden. This is followed by ready-to-wear, electrical-electronics, chemicals, and the iron sector. Sweden, which has imported over 1.2 billion from Turkey, maintains close trade relations with Turkey.

What Documents are Needed for Exporting to Sweden?

● The company requirement necessary for conducting commercial activities in any country is also applicable for Sweden. To export to Sweden, you must have a company, and you must prove the details, legality, and export compliance of this company to the authorized units of both countries.
● Establishing an e-commerce site under your company is essential to showcase your products and expand your market. E-commerce and e-export sites are of great importance for the development of companies' foreign trade markets in terms of effective export activities.
● To export to Sweden through micro-exporting, it is necessary to prepare the ETGB (Electronic Commerce Customs Declaration). With the ETGB, VAT refunds can be obtained for products within the limits of 7,500 Euros and 150 kg; thus, with this document, you can easily export your products falling within the scope of micro-export.
● You should prepare your commercial invoices and submit them to relevant authorities when necessary.
● There is a classification of circulation documents, which every country holds. You must obtain the A.TR circulation document that includes Sweden. It is crucial to obtain the necessary circulation document to ensure that your product passes to the importing country without facing customs issues.
● A certificate of origin must be obtained. This document proves that the product is produced in the importing country.
● In the export of chemical products, a special marking obligation has been imposed for products such as cosmetics, pharmaceuticals, etc., within the scope of the EU decision under the REACH (Registration, Evaluation and Authorisation of Chemicals) system. It is necessary to obtain the required information for such products.
● There should be overseas shipping and transportation documents, which must be held and submitted to relevant authorities when necessary.
● Care should be taken to ensure that your product possesses the necessary certificates according to its classified category and complies with the standards required by the EU.

What are the Export Taxes to Sweden?

Since 1995, Sweden has been an EU member, conducting its foreign trade activities with Turkey under the Common Trade Policy within the EU framework and the Common Customs Tariff also within the EU framework. The European Union, having a Customs Union Agreement with Turkey, has granted Turkey the right to circulate freely in Europe with ATR documents for industrial and processed agricultural products.

Exporters with the ETGB document can receive VAT refunds of up to 18% on products ranging from 7,500 Euros and 150 kg along with micro-exporting. Additionally, there is a tax exemption practice valid for foreign trade with a limit of 150 Euros. Products sent by mail or express cargo, worth 22 Euros per shipment, are exempt from Swedish tax. The country applies a tax of up to 20% on export products, and this rate can decrease to 5% depending on the type of product.

What Products are Exported to Sweden?

There are many products in various sectors that we export to Sweden. After the pandemic, there have been predominantly positive numerical changes in foreign trade. The products according to sectors and corresponding figures for Turkey's exports to Sweden are as follows:
● Cars = 241,778 (change from 2020 +%0.2)
● Copper ores and concentrates = 88,391 (+%257.2)
● Motor vehicles for the transport of goods = 60,812 (+%22.1)
● Refrigerators, freezers and other refrigerating and freezing devices and heat pumps = 57,349 (+%23.7)
● Women's and girls' suits, sets, jackets, blazers, dresses, skirts, pant skirts, etc. (excluding swimwear) = 52,009 (+%3.7)
● Chromium ores and concentrates = 48,887 (+%134.4)
● Pantyhose, tights, short and long socks, sockets (including varicose socks) and slippers (knitted) = 46,888 (+%16.8)
● Washing machines of the household or laundry type (including those having both washing and drying arrangements) = 41,502 (+%7.5)
● Iron or steel construction and construction components, iron or steel sheets and bars prepared for use in construction, etc. = 36,575 (+%184.8)
● Women's and girls' suits, sets, jackets, blazers, skirts, pants, overalls, and shorts (knitted, excluding swimwear) = 35,461 (+%41.4)
● Parts and accessories for road vehicles = 33,704 (+%32.7)
● Sweaters, pullovers, cardigans, vests, etc. (knitted) = 32,626 (+%23.0)
● T-shirts, vests, tank tops, undershirts, etc. (knitted) = 30,810 (+%24)
● Woven carpets and other floor coverings made of suitable textile materials = 30,781 (+%46.6)
● Dishwashing, bottle, etc. washing and drying machines, filling, labeling machines for bottles, boxes, bags, etc., packaging machines = 24,871 (+%37)

(Source: 2021 Trademap, Turkish data, values are in x1000 USD.)

What is the Trade Volume Between Turkey and Sweden?

Sweden and Turkey, which have not had interrupted political and economic relations for centuries and have not encountered problems between each other, seem likely to continue in this stability in the future. Sweden, which is one of our reliable partners in foreign trade, is today significantly engaged in import-export activities with Turkey. According to 2019 data, the trade volume between Sweden and Turkey has reached 3.011 billion dollars.