WORLD TRADE
ORGANIZATIONG/STR/N/4/NOR
13 January 1999
(99-0084)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full Notification Pursuant to Article XVII:4(a) of the GATT 1994 and
Paragraph 1 of the Understanding on the Interpretation of Article XVII
NORWAY
The following communication, dated 21 December 1998, has been received from the
Permanent Mission of Norway.
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I. ENUMERATION OF THE STATE TRADING ENTERPRISE
A. A/S Vinmonopolet (The  State Wine and Spirits Monopoly).
B. Spirits, liqueurs and other spirituous beverages (HS 22.08).
Wine and fruitwine (HS 22.04, 22.05 and 22.06).
Beer containing more than 4.75 per cent alcohol by volume (HS 22.03).
II. REASON AND PURPOSE
A. In order to reduce the negative consequences of alcohol consumption, the Norwegian alcohol
policy is, among other means, based on strict regulation of the availability of alcohol. The flow ofbeer, wine and spirits has to be controlled.  A/S Vinmonopolet has been established for this purpose,
and given exclusive rights to retailing of spirits, liqueurs and other spirituous beverages, of wine and
fruitwine and of beer containing more than 4.75 per cent alcohol by volume.
Through the state owned monopoly competition is made impossible, and the Government can
instead regulate the number of outlets allowed to sell strong alcoholic beverages in accordance with
the need for such retail outlets.  The Monopoly is an administrative body under full authority of the
Government (The Ministry of Health and Social Affairs).
B. The Monopoly’s exclusive rights are granted by Alkoholloven (The Act on Alcohol),
Chapter 3, Section 3-1, 1. subsection: ” The retailing of spirits, wine and beer containing more than
4.75 per cent alcohol by volume (strong beer) may only be carried on by A/S Vinmonopolet on the
basis of a municipal licence”.G/STR/N/4/NOR
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III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE
A. A/S Vinmonopolet has certain excl usive rights with regard to retailing  of strong alcoholic
beverages.  Until 1 January 1996 A/S Vinmonopolet also had the exclusive rights to production,
import, export and wholesale of spirits, liqueurs and other spirituous beverages, and to import andwholesale of wine and fruitwine.  Apart from  the exclusive right to production of spirituous
beverages, which is given to the firm Arcus Produkter AS, all these exclusive rights have now been
abolished.  A/S Vinmonopolet is no longer allowed to engage in imports, exports or wholesale of
alcoholic beverages, nor is it allowed to engage in other businesses.
B. A/S Vinmonopolet is given the exclusive rights of:
- retailing  of spirits, liqueurs and other spirituous beverages
- retailing of wine and fruitwine
- retailing  of beer containing more than 4.75 per cent alcohol by volume.
See also point II-B above.
C. A/S Vinmonopolet is not allowed to engage in importation or exportation.
D. See point C.
E. See point C.
F. See point C.G. See point C.H. Since the changes in the Alcohol Act of 1 January 1996 the State Wine and Spirits Monopoly
is engage only in retailing on the domestic market.  At the end of 1997 The State Wine and Spirits
Monopoly has 114 shops throughout the country.
The Monopoly purchases the commodities from licensed wholesalers and producers.  At the
end of 1997 there were 102 licensed wholesalers and producers of alcoholic beverages in Norway.
In 1997 the total sales in Norway of spirits were 9.5 million litres and the total sales of wine
were 37.9 million litres.  (The total volume of the sales of strong beer is not available.)
Approximately 86 per cent of the spirits was sold through the outlets of A/S Vinmonopolet.  The
corresponding figure for wine was approximately 85 per cent.  The retail sales of strong beer are lessthan 1 per cent of beer as a whole (i.e. both strong beer end beer with less than 4.75 per cent alcohol
by volume).  The remaining volumes were sold to end-users by on-premise outlets (restaurants, bars
etc.) and grocery shops licensed to sell beer containing less than 4.75 per cent alcohol by volume.
The on-premise outlets can since 1996, buy wine and spirits directly from wholesalers.G/STR/N/4/NOR
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IV. STATISTICAL INFORMATION
Table III.  Domestic Activities 1995
(Mill. litres)
Description of
products
(HS numbers)Domestic purchase by
state trading
enterpriseNational
productionDomestic sales by
state trading
enterpriseNational
consumption
Beer 22.03 0.8   0.8   1.6
Wine 22.04, 22.05
& 22.06 0.3 30.8 30.8
Spirits 22.08 2.4   8.8   8.8
Domestic Activities 1996
(Mill. litres)*
Description of
products
(HS numbers)Domestic purchase
by state trading
enterprise **National
productionDomestic sales by
state trading
enterpriseNational
consumption
***
Beer 22.03  0.72  1.68
Wine 22.04, 22.05
& 22.06 30.66 33.13
Spirits 22.08  8.54   8.99
Domestic Activities 1997
(Mill. litres)*
Description of
products
(HS numbers)Domestic purchase
by state trading
enterprise  **National
productionDomestic  sales by
state trading
enterpriseNational
consumption
***
Beer 22.03   0.63 -
Wine 22.04, 22.05
& 22.06 34.00 37.93
Spirits 22.08   8.21   9. 58
*Due to the legal changes from 1996, the statistical information collected by The State Wine
and Spirits Monopoly is less comprehensive than previous years.
**The State Wine and Spirits Monopoly does not divide between domestic and foreign
products.
***Source:  Central Bureau of Statistics of Norway.
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE
See point III-C.G/STR/N/4/NOR
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VI. ADDITIONAL INFORMATION
Norway has examined whether the working defi nition of state trading enterprises implies an
obligation to notify A/S Vinmonopolet.  In order to be  consistent with its updating notification of state
trading enterprises in 1997, which took place after the changes in 1996 of the exclusive rights of A/S
Vinmonopolet, and in an effort to provide full transparency, Norway has decided to include A/S
Vinmonopolet in the present notification.  However, Norway would invite other Members to express
their views regarding the question of notification obligation of A/S Vinmonopolet, as well as the
notification practice of other Members in respect of retail monopolies expressly forbidden to engage
in imports, exports or wholesale.  In the future  Norway does not intend to notify A/S Vinmonopolet
unless views expressed by other Members should imply a continuation of the present notification
practice by Norway.
Norway’s 1997 updating notification included statis tical information in respect of Arcus AS’s
production of spirituous beverages and other spirits.  The activities of Arcus are under review, and
Norway intends to notify the outcome of this review.
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