Advantages and challenges of exporting to Norway
Advantages and challenges of exporting to Norway
Be aware of the advantages and challenges of doing business in Norway.
There are advantages and also potential challenges for Northern Ireland companies doing business in Norway.
Advantages of exporting to Norway
Norway can offers numerous benefits to companies looking to do business in the region including:
- efficient business culture
- low levels of corruption
- English widely used as business language
- high living standards
- stable economy
- an open market
Challenges of exporting to Norway
You should also be aware of some challenges you could face when exporting to Norway including:
- Norway is not a member of the European Union (EU), but is a member of the European Economic Area (EEA). There are certain challenges regarding import and customs restrictions.
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Sectoral opportunities in Norway
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
There is a demand for UK-manufactured products and services across many sectors in Norway. This ranges from consumer products and environmental technologies, to e-vehicles and finance. There is also demand for medical and pharmaceutical products and physical and cyber security products.
Energy
Electricity is generated almost entirely from hydropower with around 10% from onshore wind. Norway enjoys a surplus of green electricity that is traded through interconnectors. An increasing demand for more electricity gives emerging opportunities for offshore wind, energy efficiency and storage technologies. The hydrogen value chain is a growing sector.
Infrastructure
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. These will be integral for Norway to deliver on communicated emission reduction targets.
Security
The UK is well known for advanced, innovative and specialised physical and cyber security equipment and solutions. Therefore, Norway frequently looks to the UK for its expertise and experience in the security sector.
Food and drink
The demand for, and interest in, international food and drink products in Norway continues to grow. Important factors to consider include a health aspect, traceability, strong branding, quality and value for money. Plant-based products, vegan and vegetarian sectors continue to grow, and environmental packaging is becoming a strong selling point.
Technology
Norway is an early adaptor of technology across many sectors and is open to looking at new technological solutions.
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Taxes, duty and legal considerations when exporting to Norway
Find out about the numerous things you need to consider before you start exporting to Norway.
There are a lot of things to consider before you start exporting to Norway. It's essential to find out about local rules and regulations on tax and duty in your intended market.
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 three 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 (2024) in Norway is 25%, with exemptions including:
- 15% for food and drink
- 6% for certain cultural and sporting activities
Find for further information on customs duties, VAT and special taxes:
- calculating customs duty and taxes
- VAT - specific information for foreign companies
- business and organisation
- VAT and duties
Regulations
The Norwegian Standards Authority is responsible for standardisation, certification and assessment of product standards.
Norway has adopted the EU’s CE mark for many products. View further information about product regulations in Norway.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
Read more about selling services and business travel to Norway.
Intellectual property
As a first step, you should 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.
Free trade agreement
Following the UK's exit from the European Union, Norway and the UK have negotiated a new free trade agreement (FTA) together with Iceland and Liechtenstein. The UK-EEA EFTA FTA was implemented for Norway on 1 December 2021, and replaced the Agreement on Trade in Goods.
You can use online tools Trade with the UK and Check how to export goods to check product-specific and country-specific information on tariffs and regulations that currently apply to UK trade in goods.
Trade barriers
You can check for any reported barriers to trading with Norway.
You can report any trade barriers that are affecting your business.
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.
Read more about researching export markets.
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.
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Support available for exporting to Norway
There are a range of support options available to help you export to Norway.
Developing exports to Norway could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a range of advice, plus additional support services for businesses trading with Norway.
- The selling outside Northern Ireland schemes includes support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support to assist with trading with Norway.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the
- DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
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