Exporting guide to Norway
Consumer market
Norwegians are keen on British brands and products. They have high spending power and expect quality, well-packed and competitively priced products. The market is technologically and digitally advanced, and there is a growing interest in responsible consumption and healthy, sustainable products. Norwegians are early adopters of technology.
Business environment
Norway has a pro-British business environment and a transparent, egalitarian society with a flat business structure.
Proximity, ease of business
Norway is one of the UK’s closest neighbours. It can be reached in a 2-hour flight. English is widely spoken, and Norwegians are comfortable with UK culture.
Norway: at a glance
Currency
Norwegian krone
Business language
English is widely spoken
GDP per capita
$82,244
UK is $46,200 (IMF, 2021, projected figures)
Economic growth
3.0%
(IMF, 2021, projected figures)
Time zone
GMT +1
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Opportunities for exporters
There is a demand for UK-manufactured products and services across many sectors in Norway. This includes products and services for oil and gas, vehicles and finance. There is also demand for medical and pharmaceutical products, and a wide range of consumer goods.
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The offshore oil and gas sector dominates the economy. Electricity is generated mainly from hydropower and is traded through interconnectors. There are emerging opportunities for onshore and offshore wind.
Planned projects and developments
The offshore oil and gas sector provides opportunities for UK companies in: Field life extension, enhanced/improved oil recovery (IOR/EOR) technologies, maintenance and modification work (MMO), standardisation of solutions, and low carbon disruptive technologies.
No localised requirements
Norwegian oil and gas companies export globally, with the renewables energy sector also in high demand. Suppliers to Norwegian companies can expect their products and services to be re-exported to destinations other than Norway.
Innovation
The energy sector is an earlier adopter of new technology. There is an openness to apply solutions and technologies for improved service and efficiency. Companies in Norway are actively seeking solutions to reduce emissions to reach national and Paris agreement targets and gain competitive advantage.
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The Norwegian Government is investing heavily in infrastructure, including airport developments, rail network upgrades, track and road construction. The government and companies are looking at developing integrated intelligent transport systems and autonomous transport. This will help deliver on domestic emission reduction targets.
Green solutions
For infrastructure and construction sectors to deliver on national climate targets for emission reduction, there is a requirement for green solutions. Public procurement is actively seeking sustainable solutions for new buildings, roads and railways, as well as recycling materials to protect the built environment.
Planned investment
The national budget allocates NOK75.4 billion to the transport sector in 2020 (Statsbudsjettet.no, 2020). The largest ongoing projects are track maintenance and the current development of E39 as a continuous Coastal Highway Route; this includes replacing ferries with bridges and tunnels, improvement of road and research for a digital transport system.
Electric Vehicles
By 2025, Norway is aiming for all new cars sold to be electric and for ferries to be zero emission (regjeringen.no, 2020). Additionally, the goal is for short haul flights to be fully electric by 2040 (avinor.no, 2020). There are opportunities in innovation, research and development for solutions, material and batteries. The Norwegian market can act as a springboard to many other markets.
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In the security sector, Norway looks to the UK for its expertise, experience, products and services
Demand for UK expertise
There is a demand in Norway for UK expertise and products. The UK offer is considered well-established, attractive and enjoys a good reputation. There are opportunities for UK companies in civil technologies, cyber security and physical security.
Bilateral cooperation
Norway has a strong focus on building and sharing knowledge and competences in the security sector. Several initiatives have been taken in recent years to strengthen Norway’s ability to detect and withstand threats, leading to increased investment in security products and services, including many from the UK. This trend will continue.
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The demand for international food and drink products in Norway has grown over the last 10 to 15 years. Important factors to consider for the Norwegian market include health, traceability, quality and value for money. Environmental packaging is becoming a strong selling point.
Demand for new food categories
With an estimated 680,000 visits from Norway to the UK in 2019 (VisitBritain, 2020), familiarity with British food and drink is growing and giving retailers more reason to stock British products. Opportunities for UK producers exist within health, free-from, natural, vegetarian, vegan and plant-based foods, innovative products and own-label products.
Market access
Norway is a not a member of the EU but is a member of the EEA, so most regulations regarding imports are similar to those in the EU. The main exception is agricultural products, where Norway has some tariffs on imported products.
Retail
Norway has a relatively small population, but given the structure of the retail market a successful product can gain national coverage relatively quickly. The route to market is normally opened by an importer or distributor.
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Norway is looking for technological solutions that can be met by UK companies.
Low emission aviation
Norway’s commitment to have low emission (electric) domestic flights by 2040 offers opportunity for collaboration and R&D between the UK’s world-leading aviation industry and Norway's own. Norway is creating a testbed market, and is pursuing international cooperation in this area, while also introducing biofuels for long-haul flights.
Digitalisation
Developing a digital public sector is a priority, to ensure a well-functioning welfare state. Digitalisation and the use of information and communication technology, including 5G, can make a positive contribution to economic growth and productivity. The country is tech savvy but is sourcing competences internationally.
Healthtech and medtech
The Norwegian health sector has the potential to become one of the most important growth industries for Norway. Having had to face high pressure in the health services at the start of 2020, reviewing and investing in smarter, improved healthcare is at the forefront of the government’s agenda.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Norway
Preparing to export
Taxes and duties
Foreign businesses operating in Norway must comply with Norwegian VAT rules, and must be VAT registered if sales or withdrawals liable for VAT exceed 50,000 kroner over 12 months.
There are essentially 3 types of taxes on the import of goods from abroad – customs duty, VAT and special taxes. What a Norwegian customer or consumer must pay or report to the tax authorities depends on the type of goods and where they come from.
VAT rate (2020) in Norway is 25%, with exemptions including:
- 15% for food and drink
- 12% for certain cultural and sporting activities
- 11.11% for supply of raw fish
For further information on customs duties, VAT and special taxes, follow these leads:
- Calculating customs duty and taxes - on Toll Customs website
- VAT - specific information for foreign companies - on Altinn website
- Business and organisation - on the Norwegian Tax Administration website
- VAT and duties - on the Norwegian Tax Administration website
Regulation
The Norwegian Standards Authority is responsible for standardisation, certification and assessment of product standards.
Norway has adopted the EU’s CE mark on some products sold in the EU.
The Norwegian Food Safety Authority, Mattilsynet is responsible for regulating:
- Food and water
- Animals
- Fish and Aquaculture
- Cosmetics
- Plants
Direktoratet for Byggkvalitet is responsible for building regulations.
Services regulations
Information on rules for selling services and business travel to Norway is available on gov.uk.
Intellectual property
As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting.
All trademark and patent applications for Norway must be registered with Norway’s Patent Office Patentstyret.
Trade barriers
Check for any reported barriers to trading with Norway.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Norway
Norway is a sophisticated, established market with a long, trusted trading relationship with the UK. It has an educated, technologically advanced society looking for high-quality products and services. Regular meetings/visits are important to build relationships with customers. The market is competitive, and a strong unique selling point is essential.
Routes to market
Having local Norwegian speaking representatives and local knowledge is necessary in certain sectors:
- Importer/distributors/agents – are necessary in many sectors including food and drink, security, sales to public sector (where procurement is by tender), industrial supply chains
- Direct sales – are possible, and more normally an option for services
Payment terms
Norwegian companies are used to dealing in GBP, EUR and NOK. Payment terms are often (but not always) 21-28 days.
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
