Denmark, located in Northern Europe, is a highly developed and open economy that relies extensively on international trade for economic growth. As a member of the European Union (EU), Denmark applies the EU’s Common External Tariff (CET) on imports from non-EU countries, while benefiting from tariff-free trade within the EU single market. Denmark’s customs tariff system regulates the importation of a wide range of products, ensuring fair competition, protecting local industries, and generating government revenue. Additionally, Denmark enjoys preferential tariff rates on goods imported from countries with which the EU has free trade agreements (FTAs), including the United States, Japan, Canada, and others.
Tariff Categories for Imported Products
Denmark follows the EU’s Common External Tariff (CET), which applies to imports from non-EU countries. The rates vary depending on the type of product, its origin, and trade agreements in place. Below is a detailed breakdown of tariff rates for major product categories.
1. Agricultural Products
Agriculture plays a significant role in Denmark’s economy, but the country imports various agricultural products to meet domestic consumption needs. Import tariffs on agricultural products are designed to protect local farmers while ensuring the availability of essential foodstuffs.
1.1 Tariff Rates for Major Agricultural Products
- Fruits and Vegetables:
- Fresh fruits (e.g., apples, oranges, bananas): 8%-12%
- Vegetables (e.g., onions, tomatoes, potatoes): 8%-10%
- Frozen fruits and vegetables: 8%-12%
- Dried fruits: 5%-10%
- Grains and Cereals:
- Wheat: 0%-5%
- Rice: 5%-10%
- Corn: 0%-5%
- Barley: 5%-8%
- Meat and Poultry:
- Beef: 10%-20%
- Pork: 10%-20%
- Poultry (chicken, turkey): 10%-20%
- Processed meats (sausages, bacon): 15%-25%
- Dairy Products:
- Milk: 0%-10%
- Cheese: 10%-20%
- Butter: 10%-20%
- Edible Oils:
- Sunflower oil: 10%-15%
- Palm oil: 8%-15%
- Olive oil: 8%-12%
- Other Agricultural Products:
- Sugar: 10%-15%
- Coffee and tea: 5%-10%
1.2 Special Import Duties for Agricultural Products
- EU Trade Preferences: Agricultural products imported from other EU member states are subject to zero tariffs under the EU single market, encouraging intra-EU trade. This system ensures that Denmark imports fresh and high-quality agricultural products at competitive prices.
- Non-EU Countries: Agricultural products imported from non-EU countries, including the United States, China, and Brazil, are subject to the CET. In some cases, additional quotas or higher tariffs may apply to agricultural imports from non-EU countries, especially if they exceed pre-established limits.
- Preferential Trade Programs: Denmark, as part of the EU, benefits from preferential tariffs on agricultural products from developing countries under the EU’s Generalised Scheme of Preferences (GSP) and other free trade agreements, reducing or eliminating tariffs on certain agricultural goods.
2. Industrial Goods
Denmark imports a wide range of industrial goods, including machinery, raw materials, and equipment to support its robust manufacturing and construction sectors. Tariffs on industrial goods are structured to protect local industries while allowing access to essential inputs.
2.1 Machinery and Equipment
- Heavy Machinery (e.g., cranes, bulldozers, excavators): 0%-5%
- Industrial Equipment:
- Manufacturing machinery (e.g., textile machines, food processing equipment): 0%-5%
- Construction equipment: 0%-5%
- Energy-related equipment (generators, turbines): 0%-5%
- Electrical Equipment:
- Electric motors: 3%-5%
- Transformers: 5%
- Cables and wiring: 5%
2.2 Automobiles and Auto Parts
Denmark imports a large number of vehicles and auto parts, and tariffs on these products are designed to regulate imports while promoting the use of newer, more environmentally friendly vehicles.
- Passenger Vehicles:
- New vehicles: 10%
- Used vehicles: 10%-12% (depending on vehicle age and emission standards)
- Commercial Vehicles:
- Trucks and buses: 5%-10%
- Auto Parts:
- Engines and mechanical components: 3%-5%
- Tires and brake systems: 3%-5%
- Vehicle electronics (e.g., lighting, audio systems): 3%-5%
2.3 Special Import Duties for Industrial Goods
- EU Trade Preferences: Industrial goods imported from other EU countries are subject to zero tariffs, encouraging trade within the EU single market.
- FTAs: Denmark benefits from the EU’s free trade agreements with countries like Canada (CETA), Japan, and South Korea. Industrial goods imported from these countries may qualify for reduced or zero tariffs.
3. Consumer Electronics and Appliances
Denmark imports a significant portion of its consumer electronics and home appliances from Asia, Europe, and North America. Tariffs on these goods are relatively low to promote access to modern technology and consumer goods.
3.1 Consumer Electronics
- Smartphones: 0%-5%
- Laptops and Tablets: 0%-5%
- Televisions: 3%-5%
- Audio Equipment (e.g., speakers, sound systems): 3%-5%
- Cameras and Photography Equipment: 3%-5%
3.2 Home Appliances
- Refrigerators: 3%-5%
- Washing Machines: 3%-5%
- Microwave Ovens: 3%-5%
- Air Conditioners: 3%-5%
- Dishwashers: 3%-5%
3.3 Special Import Duties for Electronics and Appliances
- EU FTAs: Consumer electronics and home appliances imported from countries with which the EU has free trade agreements, such as Japan and South Korea, benefit from reduced or zero tariffs.
- Non-EU Countries: Consumer electronics and appliances from non-EU countries, such as China and the United States, are subject to the CET, typically ranging from 3% to 5%.
4. Textiles, Clothing, and Footwear
Denmark imports a significant share of its textiles, clothing, and footwear due to limited domestic production. Tariffs in this sector aim to balance the need for imports with protecting local manufacturers.
4.1 Clothing and Apparel
- Standard Clothing (e.g., t-shirts, jeans, suits): 12%-15%
- Luxury and Designer Brands: 15%-20%
- Sportswear and Athletic Apparel: 10%-15%
4.2 Footwear
- Standard Footwear: 10%-15%
- Luxury Footwear: 15%-20%
- Athletic Shoes and Sports Footwear: 10%-15%
4.3 Raw Textiles and Fabrics
- Cotton: 0%-5%
- Wool: 0%-5%
- Synthetic Fibers: 5%-10%
4.4 Special Import Duties for Textiles
- GSP Preferences: Under the EU’s Generalised Scheme of Preferences (GSP), textiles and clothing imported from developing countries may benefit from reduced tariffs or duty-free access.
- FTA Preferences: Textiles and clothing imported from countries with which the EU has free trade agreements, such as Vietnam and Canada, may qualify for lower or zero tariffs under the agreement.
5. Pharmaceuticals and Medical Equipment
Denmark imports a variety of pharmaceuticals and medical equipment to support its advanced healthcare system. Tariffs on these products are generally low to ensure affordable access to healthcare goods.
5.1 Pharmaceutical Products
- Medicines (generic and branded): 0%-5%
- Vaccines: 0%
- Supplements and Vitamins: 5%-10%
5.2 Medical Equipment
- Diagnostic Equipment (e.g., X-ray machines, MRI machines): 0%-5%
- Surgical Instruments: 0%-5%
- Hospital Beds and Monitoring Equipment: 0%-5%
5.3 Special Import Duties for Medical Products
- Zero Tariffs for EU Imports: Pharmaceuticals and medical equipment imported from other EU countries enter Denmark tariff-free, facilitating easy access to essential healthcare goods.
- FTA Preferences: Medical products imported from countries with EU free trade agreements, such as Japan and Canada, may benefit from reduced or zero tariffs.
6. Alcohol, Tobacco, and Luxury Goods
Denmark imposes higher tariffs on alcohol, tobacco, and luxury goods to regulate consumption and generate revenue. These products are also subject to excise taxes in addition to customs duties.
6.1 Alcoholic Beverages
- Beer: 15%-20%
- Wine: 15%-20%
- Spirits (whiskey, vodka, rum): 20%-30%
- Non-Alcoholic Beverages: 10%-15%
6.2 Tobacco Products
- Cigarettes: 30%-40%
- Cigars: 25%-35%
- Other Tobacco Products (e.g., pipe tobacco): 25%-35%
6.3 Luxury Goods
- Watches and Jewelry: 20%-30%
- Designer Handbags and Accessories: 20%-30%
- High-End Electronics: 10%-15%
6.4 Special Import Duties for Luxury Goods
- Non-EU Imports: Luxury goods imported from non-EU countries face higher tariffs, generally ranging from 20% to 30%, depending on the product. These goods may also be subject to additional taxes or excise duties.
- Excise Taxes: Alcohol, tobacco, and luxury goods are subject to excise taxes in Denmark, which are applied in addition to customs tariffs.
Country Facts about Denmark
- Formal Name: Kingdom of Denmark
- Capital City: Copenhagen
- Three Largest Cities:
- Copenhagen
- Aarhus
- Odense
- Per Capita Income: Approx. $67,000 USD (2023 estimate)
- Population: Approx. 5.9 million (2023 estimate)
- Official Language: Danish
- Currency: Danish Krone (DKK)
- Location: Northern Europe, bordered by Germany to the south and surrounded by the North Sea and the Baltic Sea.
Geography of Denmark
Denmark is a small, flat country located in Northern Europe. It consists of the Jutland Peninsula and an archipelago of over 400 islands, of which around 70 are inhabited. The country is known for its temperate climate, fertile farmland, and extensive coastline.
- Peninsulas and Islands: Denmark consists mainly of the Jutland Peninsula and several major islands, including Zealand (Sjælland), Funen (Fyn), and Lolland. These landforms shape the country’s economy, particularly its agriculture and maritime industries.
- Rivers and Lakes: Denmark has no major rivers, but its numerous small rivers and lakes support agricultural activities and add to its scenic landscape.
- Coastline: Denmark’s long coastline spans approximately 7,400 kilometers, providing access to the North Sea and the Baltic Sea. This coastal location has fostered Denmark’s strong maritime tradition and supports its thriving fishing industry.
- Climate: Denmark has a temperate maritime climate, with mild summers and cool winters. The country experiences frequent rainfall throughout the year, contributing to its fertile soil and agricultural productivity.
Economy of Denmark and Major Industries
Denmark’s economy is highly developed and diversified, with strong industries in agriculture, manufacturing, renewable energy, and services. As one of the most prosperous countries in the world, Denmark enjoys a high standard of living and ranks among the top nations in terms of economic competitiveness, sustainability, and social welfare.
1. Agriculture
- Denmark has a highly efficient agricultural sector, which plays a crucial role in the country’s economy. The country is a major producer of pork, dairy, and grain products, exporting a significant portion of its agricultural output.
- Key Exports: Pork, dairy products, and grain (especially barley and wheat) are among Denmark’s top agricultural exports, with key markets in the EU, the Middle East, and Asia.
2. Manufacturing
- Denmark has a well-developed manufacturing sector, focusing on high-value products such as pharmaceuticals, machinery, electronics, and food processing. The country is home to globally recognized companies like Novo Nordisk (pharmaceuticals) and Danfoss (industrial solutions).
- Key Sectors: Pharmaceuticals, machinery, electronics, and food processing are leading sectors in Danish manufacturing. The country’s products are exported to markets around the world, with the EU being a primary destination.
3. Renewable Energy
- Denmark is a global leader in renewable energy, particularly in wind energy. The country’s commitment to reducing carbon emissions and transitioning to sustainable energy sources has resulted in significant investments in wind power and other renewable technologies.
- Wind Energy: Denmark is one of the world’s largest exporters of wind turbines and is known for pioneering offshore wind farms. The country has set ambitious targets for achieving carbon neutrality in the coming decades.
4. Information Technology and Services
- The Danish economy has a growing IT and services sector, with a focus on innovation and digital transformation. Denmark has a strong presence in IT services, fintech, and green technologies, positioning itself as a tech hub in Northern Europe.
- Tech Startups: Denmark’s tech startup scene is expanding, supported by a highly skilled workforce, strong digital infrastructure, and government initiatives promoting innovation.
5. Tourism
- Tourism is an important contributor to Denmark’s economy, with millions of visitors attracted by the country’s rich cultural heritage, historic landmarks, and scenic landscapes. Copenhagen is a popular destination, known for its architecture, museums, and modern design.
- Popular Destinations: In addition to Copenhagen, other popular tourist destinations include Aarhus, the Viking Ship Museum in Roskilde, and the Legoland theme park in Billund.
