Import of food products/agricultural goods
The import of food products/agricultural goods is generally subject to high customs duties in order to protect Norwegian agricultural production. If the importer does not take any action in connection with the import of food products/agricultural goods, the Customs Authority will charge the standard duty rates for the various tariff codes under which the goods are classified.
During periods when Norwegian agriculture is producing and selling domestic agricultural products, customs duties will be particularly high.
Opportunities for customs duty reduction
However, there are opportunities to obtain customs duty reductions for the import of food products, for example if the scope of goods is covered by free trade agreements that Norway has with other countries, or through duty reductions granted upon application to the Norwegian Agriculture Agency for each specific food product.
Customs duty reduction through free trade agreements
Through the EEA Agreement and trade agreements with other countries, Norway offers customs duty reductions on the import of many goods, provided the scope of goods is included in the free trade agreements. In such cases, the importer must document the origin of the products by presenting correct origin documentation at the time of import. The origin documentation must comply with the provisions of the relevant free trade agreements.
Under the EEA Agreement, the exporter must issue either a declaration of origin on the sales invoices forming the basis for the export, or a EUR.1 certificate as documentation. The origin of the products must meet the requirements for EEA origin in accordance with the processing rules described in the EEA Agreement for each specific tariff code.
Norway also has agreements with developing countries that allow for customs duty reductions on certain tariff codes for food products/agricultural goods. Exporters of goods from developing countries must present origin documentation, either in the form of a REX declaration on the invoices or a Certificate of Origin Form A.
Customs duty reduction upon application to the Norwegian Agriculture Agency
The Norwegian Agriculture Agency offers several schemes for customs duty reductions on the import of food products/agricultural goods. Raw Material Price Compensation (RÅK goods) is a scheme for processed agricultural products. “RÅK” stands for raw material price compensation and refers to processed agricultural products, which are therefore often called RÅK goods. These goods are listed with RT duty in the customs tariff, and it is possible to apply to the Norwegian Agriculture Agency for a duty reduction on them.
For these goods, a product sheet from the manufacturer must be obtained, showing the percentage content of all ingredients. The application must specify the percentage content of all products listed in the application. The Norwegian Agriculture Agency determines the customs duty rate for each product based on the amount of ingredients included in the application. The raw materials subject to customs duties under the RÅK scheme are defined in Annex 2 of the RÅK Import Regulation. Ingredients derived from raw materials subject to customs duties are categorised as dairy, meat, eggs, flour, groats, grain, potatoes/starch, glucose, and berry concentrate from raspberries, strawberries, and blackcurrants.
All registered importers may apply for customs duty reductions on such RÅK goods. The applicant must hold the role of “primary industries and foodstuffs” in Altinn.
An example of products covered by the RÅK scheme is tariff code 21069098, “Prepared foodstuffs, not elsewhere specified or included.” This tariff code includes various dietary supplements, antioxidants for use in food products, and other food items not described under other tariff codes in the customs tariff. The standard duty rate is NOK 31.71 per kg, but may be reduced to zero upon application to the Norwegian Agriculture Agency, as many of these products do not contain ingredients subject to customs duties.
If it is discovered after customs clearance that such RÅK goods were not subject to a duty reduction application prior to import, it is possible to apply retroactively to the Norwegian Agriculture Agency, and the customs declarations may be reprocessed with a reduced duty rate.
Tariff quotas with reduced customs duty rates
The Norwegian Agriculture Agency administers the tariff quotas for agricultural goods to Norway. A tariff quota grants the right to import a certain quantity of a product at a reduced duty rate or duty-free, either within a specific period or from a specific country. The Norwegian Agriculture Agency allocates the quotas either through auction or upon application. This applies particularly to agricultural goods such as meat—for example, corned beef and turkey roulade—cheese, animal feed, fruit, and vegetables.
Many quotas are allocated through auctions, where bidders compete for the right to import a product at a reduced duty rate or duty-free.
Some quotas are allocated upon application, where applicants must meet specific conditions and requirements.
Tariff quotas are a tool used to regulate the import of agricultural products and to protect Norwegian agriculture. They may be linked to international trade agreements, form part of Norway’s foreign policy towards developing countries, or be established to ensure access to essential raw materials.
Individual customs duty rates for products that do not compete with Norwegian products.
If you believe that the foodstuffs/agricultural products you are importing do not compete with Norwegian production of equivalent agricultural goods, and the product is not subject to a general reduction in customs duty, the Norwegian Agriculture Agency may consider granting an individual reduction in the customs duty rate. These criteria are set out in the Regulation on Administrative Reductions of Customs Duties for Agricultural Products (FAT).
The prerequisite for a reduced customs duty rate is that the product differs from Norwegian-produced goods, and that, following a comprehensive assessment of agricultural policy, it is not considered to compete with Norwegian agricultural products. The evaluation of the competitive situation takes into account potential effects on both the raw material and the processed products.
A reduction in customs duty may be granted to facilitate the import of food products as a supplement to Norwegian production, taking into account the interests of both consumers and the food industry.
Importers’ own checks to avoid overpaying customs duties.
It is important for importers of foodstuffs/agricultural products to familiarise themselves with the customs authority’s rules of origin and the schemes offered by the Norwegian Agriculture Agency in order to obtain possible customs duty reductions on the products being imported..
It is recommended to review the monthly customs declaration summaries in Altinn and verify the listed customs duty amounts. If there are shipments with high duty charges, it is advisable to examine the individual customs declaration and the corresponding invoice to assess whether there may be opportunities for customs duty reduction.
Before importing new foodstuffs/agricultural products, it is particularly important to check the product’s tariff number against the schemes for customs duty reduction.
As the tariff number determines both the applicable customs duty rate and the relevant customs duty reduction schemes, it is recommended to apply to the Customs Authority for a Binding Tariff Information (BTI).
Foodstuffs/agricultural products are often difficult to classify, and to avoid the risk of errors with potential consequences such as customs inspections and reassessments, it is recommended to apply for Binding Tariff Information (BTI). Mistakes can have significant consequences. The Customs Authority typically audits up to three years back and reassesses unpaid duties with surcharges and interest.