Norway, a member of the European Free Trade Association (EFTA) and the Schengen Area, is a highly developed country known for its high standard of living and robust economy. The country has a well-structured customs system in place to regulate imports, protect local industries, and generate government revenue. While Norway follows the European Union’s (EU) Common External Tariff (CET) in most cases due to its participation in the European Economic Area (EEA), there are specific customs duties and exemptions that apply to goods imported into the country.
Custom Tariff Rates for Products Imported to Norway
Norway’s tariff system is largely in line with the EU’s external tariff policies, although, as an EFTA member, the country may have some variations. The tariff rates are primarily governed by the Harmonized System (HS) codes, which classify goods based on their nature. Tariffs are generally applied ad valorem (as a percentage of the value) or as specific duties (based on quantity or weight).
1. Agricultural Products
Agricultural products are a significant part of Norway’s import tariff structure, as the country has limited arable land and depends on foreign countries to supply essential foodstuffs. The government applies tariffs to protect domestic agriculture, which is often focused on livestock farming, dairy, and specific crops suited to Norway’s cold climate. Some agricultural goods also face high tariffs to limit imports and support local food production.
Key Tariff Categories for Agricultural Products
- Dairy Products (HS Code 04)
- Tariff Rate: 0-30%
- Norway applies significant tariffs on dairy products, including cheese, milk, and butter. The rate varies by product, with high tariffs on products like cheese (up to 30%) to protect local dairy farmers. Some processed dairy products may be taxed at lower rates.
- Meat and Meat Products (HS Code 02)
- Tariff Rate: 0-40%
- Meat imports, especially beef and pork, are subject to tariffs ranging from 0% to 40%, depending on the type and cut of meat. These high tariffs are intended to protect Norway’s meat production, which is mainly focused on sheep, pigs, and cattle.
- Cereals and Grains (HS Code 10)
- Tariff Rate: 5-20%
- Norway imports substantial amounts of grains like wheat, barley, and oats. Tariffs range from 5% to 20% on these products, which are essential for food production and animal feed.
- Vegetables and Fruits (HS Code 07)
- Tariff Rate: 5-10%
- Tariffs on vegetables and fruits are relatively moderate, generally ranging from 5% to 10%. Norway imports significant quantities of fruits, such as apples, bananas, and citrus fruits, as well as vegetables like tomatoes and potatoes.
- Sugar (HS Code 17)
- Tariff Rate: 10-20%
- Sugar imports are subject to tariffs of around 10-20%. Norway has a high per capita consumption of sugar, particularly for confectionery and beverages, which makes this category significant for the country’s customs duties.
Special Import Duties for Agricultural Products
- Imports from EU and EEA Countries
- As a member of the EEA, Norway enjoys tariff-free or reduced tariffs on many agricultural products from EU member states, provided the products meet the EU’s regulatory standards. For instance, dairy and meat products from the EU benefit from lower tariffs, and certain fruits and vegetables are exempt from duties altogether.
- Imports from Developing Countries
- Norway applies preferential tariffs to agricultural products imported from Least Developed Countries (LDCs) and developing countries under schemes such as the Generalized System of Preferences (GSP). These preferential rates are intended to boost exports from these nations, particularly for fruits, vegetables, and tropical products.
2. Manufactured Goods and Industrial Products
Norway has a well-developed industrial base, but it still relies on imports of manufactured goods such as machinery, electronics, chemicals, and automotive products. The tariff rates on industrial products are typically moderate to encourage innovation and competition in the domestic market. However, products that are not produced locally or are considered vital to the country’s economy, such as machinery for energy production, may have reduced or zero tariff rates.
Key Tariff Categories for Manufactured Goods
- Machinery and Equipment (HS Code 84)
- Tariff Rate: 0-10%
- Machinery imports to Norway are typically subject to low tariff rates. These include construction machinery, agricultural machinery, and industrial equipment. The rates are generally 0-10%, with essential machinery for specific industries often exempt from tariffs to encourage innovation and development.
- Automobiles and Parts (HS Code 87)
- Tariff Rate: 10-25%
- Cars, trucks, and other motor vehicles are taxed at rates ranging from 10% to 25%, depending on the vehicle’s engine size, emissions, and whether it is fully assembled or in parts. Norway also imposes higher taxes on vehicles with high carbon emissions as part of its environmental policies.
- Electrical and Electronic Equipment (HS Code 85)
- Tariff Rate: 0-10%
- Electrical goods such as computers, telecommunications equipment, and household appliances generally face lower tariffs. The rate is typically between 0% and 10%, depending on the nature of the product and the market demand.
- Chemicals and Pharmaceuticals (HS Code 29, 30)
- Tariff Rate: 0-15%
- Chemicals and pharmaceutical products, including medical supplies and drugs, are subject to moderate tariffs, typically in the 0-15% range. Norway has a strong pharmaceutical sector, but it imports large quantities of medical and chemical products, especially for the health sector.
Special Import Duties for Manufactured Goods
- Imports from EFTA Countries
- As a member of the EFTA, Norway has preferential tariffs with countries like Switzerland, Iceland, and Liechtenstein. These products can enter Norway duty-free or at significantly reduced rates, especially in categories like machinery and equipment.
- Imports from China and Other Asian Countries
- China is a major source of manufactured goods for Norway, including textiles, electronics, and machinery. Products from China and other Asian countries typically face standard tariffs unless they qualify for preferential treatment under trade agreements such as the AfCFTA (African Continental Free Trade Area) or through bilateral deals.
- Imports from the United States and Japan
- The U.S. and Japan also export a variety of manufactured goods to Norway. These products may be subject to moderate tariffs but often benefit from exemptions or reduced rates due to their technological or industrial significance.
3. Consumer Goods
Consumer goods such as electronics, clothing, and furniture are essential imports for Norway’s high standard of living. As a prosperous country with a significant middle class, demand for foreign-made consumer goods is high. However, the government applies tariffs on some of these goods to support local industries and promote sustainability.
Key Tariff Categories for Consumer Goods
- Electronics and Electrical Equipment (HS Code 85)
- Tariff Rate: 0-10%
- Electronics such as smartphones, televisions, and computers are generally subject to low tariffs of 0-10%, with some exemptions for products like medical devices and telecommunications equipment.
- Clothing and Footwear (HS Code 61-62)
- Tariff Rate: 10-20%
- Imported clothing and footwear face tariffs of 10% to 20%. This is to protect the local textile and clothing industries, although Norway still imports a substantial amount of fashion products from countries like China, India, and Bangladesh.
- Furniture and Household Goods (HS Code 94)
- Tariff Rate: 5-10%
- Furniture and household goods typically face moderate tariffs, between 5% and 10%. Imported products like furniture, home appliances, and kitchenware are subject to these rates.
Special Import Duties for Consumer Goods
- Imports from EU and EEA Countries
- As part of the EEA, Norway enjoys tariff-free imports of most consumer goods from EU member states. However, this exemption may not apply to certain luxury goods or items subject to Norwegian environmental taxes.
- Imports from the United States
- The U.S. exports a significant number of consumer goods to Norway, especially electronics and high-quality brands. These products may qualify for reduced tariffs under trade agreements.
4. Raw Materials and Energy Products
Given that Norway is a leading producer of oil and natural gas, energy products like petroleum and gas are not subject to tariffs. However, other raw materials used in industries such as mining, forestry, and energy production are subject to moderate tariffs to regulate the import of goods that compete with domestic production or extraction.
Key Tariff Categories for Raw Materials and Energy Products
- Crude Oil and Petroleum Products (HS Code 27)
- Tariff Rate: 0%
- As one of the largest exporters of oil in the world, Norway does not impose import tariffs on crude oil. However, certain refined petroleum products such as petrol, diesel, and jet fuel may be subject to taxes or tariffs if imported in large quantities.
- Natural Gas (HS Code 2711)
- Tariff Rate: 0%
- Norway’s natural gas exports are significant, and it does not typically import natural gas, so tariffs are generally not applicable.
- Timber and Forest Products (HS Code 44)
- Tariff Rate: 5-10%
- Norway is a major producer of timber, but it still imports certain types of wood and forest products for the construction and paper industries. The tariff rate is typically around 5-10%, depending on the type of wood.
Special Import Duties for Raw Materials and Energy Products
- Imports from EU and EFTA Countries
- As with other product categories, raw materials from the EU and EFTA countries benefit from reduced or zero tariffs due to Norway’s trade agreements with these regions.
Country Facts
- Country Formal Name: Kingdom of Norway
- Capital City: Oslo
- Three Largest Cities:
- Oslo
- Bergen
- Stavanger
- Per Capita Income: Approx. $78,000 USD (2023 estimate)
- Population: Approx. 5.5 million
- Official Language: Norwegian
- Currency: Norwegian Krone (NOK)
- Location: Located in Northern Europe, on the western side of the Scandinavian Peninsula, bordered by Sweden to the east, Finland to the northeast, and Russia to the far northeast, with coastlines on the North Sea and the Barents Sea.
Geography, Economy, and Major Industries
Geography
Norway is renowned for its stunning natural landscapes, including fjords, mountains, and the Arctic tundra in the far north. The country has a long coastline and is characterized by a rugged terrain, which makes it particularly suited for activities like fishing, tourism, and hydropower production.
Economy
Norway is a wealthy nation with a high standard of living, backed by its abundant natural resources, particularly oil and gas. The country has successfully managed its oil wealth through the Government Pension Fund Global, which is one of the largest sovereign wealth funds in the world. In addition to oil, Norway’s economy is supported by fisheries, shipbuilding, tourism, and renewable energy industries.
Major Industries
- Oil and Gas: The oil and gas sector is the backbone of Norway’s economy, contributing a significant portion of GDP and export revenues.
- Maritime and Shipping: Norway has a strong maritime industry, including shipbuilding and logistics, which plays a key role in global trade.
- Renewable Energy: Norway is a leader in renewable energy, particularly hydropower, and is increasingly focusing on sustainable energy solutions.
- Fisheries and Seafood: Norway is one of the largest exporters of seafood, particularly salmon, and the fisheries sector is vital for the country’s economy.
