GENERAL AGREEMENT ON TARIFS AND TRADE RESTRICTED l/1014/add.ll 9 December 1959 limited Distribution Original: English STATETRADING ENTERPRISES Notifications Received Pursuant to Article XVII 4(a) in Reply to the New Questionnaire, Contained in Document 1/1014 of 3 July 1959? FINLAND I. Enumeration of StateTradingEnterprises Enterprise (a) Alcohol Company (b) State granary Products Wine Spirit Alcoholic liquors Substances containing sore than 2.25 weight percentage of ethyl alcohol 2 Grains The following publications received from governments have been reproduced in addenda to document 1/1014: Australia Ceylon Denmark Fed.of Malaya Fed.of Rhodesia & Nyasaland Add. 9» 7 " 5 " 10 it A. Ghana India New Zealand Sweden Union of South Africa Add.8 ii 2 n 3 " 6 n 1 Tariff numbers see annex 1.
l/1014/add.u Page 2 II» Reason and Purpose for Introducing and Maintaining StateTrading Enterprises III. Description of the functioning of the StateTrading Enterprises (a) Alcohol Company On 2 February 1932 the Finnish Diet promulgated a law on alcoholic Tiererages in which the foundation of Oy» Alkoholiliike Ab, was laid down. The majority of the shares of the company are Stateowned, The company has the sole right to import wines, spirits and alcoholic liquors, i.e. substances containing more than 2.25 weight percentage of ethyl aloohol, and to manage the production of alcoholic beverages in Finland, It may, however, transfer production rights by contract to private enterprises for a fixed time. The company itself has the sales monopoly. Moreover, it should be mentioned that the Alkoholiliike follows a policy that aims at both the removal of illegal sales and.reduction of consumption in general as much as possible (Alcohol law, paragraph 5). The import and export of alcoholic beverages are the exclusive right of the Alkoholiliike. However, private persons and companies to which the Alkoholiliike has granted the right to manufacture alcoholic beverages are allowed to export their products. For suoh an export, the authorization of the Board of Directors of the Alkoholiliike is required separately in each oase* The export is determined by the amount of products available and by foreign demand. Import is determined by the national needs. Export prices are fixed on basis of the production costs and the prices on on the world market. Import prices are fixed by adding to the production costs, calculated on a normal basis, the gain to be obtained by the monopoly. The prices of imported goods and of national products are fixed on a similar basis. There is no practical basis for a comparison between these prices, on one hand, and export prices, on the other. There are no long term import agreements. As far as exports are concerned, such, agreements are sometimes made, due to engagements assumed by the government in connexion with commercial treaties with certain countries (e.g. the Soviet Union). The prices are, however, fixed in this case also In accordance with the situation on free markets.
1/1014/Md.H Page 3 (b) State Granary The activity of the State granary is prescribed by the law of 26 October 1951, which replaces the law of 1930 on the establishment of the State granary. The purpose of the State granary is to maintain the supply of grain in Finland by purchases and storing, keeping stable at the same time demand for and prices of domestic grain. Moreover, the State granary is the purchaser of grain needed by institutions and establishments belonging to the State, The Council of State is entitled to rule that only the State granary is allowed to import grain. A decision to this effect was made en 18 February 1954. It does not, however, include imports of grain in quantities under five tons, neither imports of seed grain or malting barley* In foreign trade the main activity of the State granary is the importation of cereals. Exports are limited to oases where they are necessary in order to avoid storing difficulties or for other similar reasons. Private persons can also import and export cereals if the State granary considers it appropriate. The State granary is not itself engaged in production. It sells the foreign cereals for further processing to all Finnish mills under the same conditions. The mills can buy Finnish cereals freely, but the State granary, nevertheless, buys certain quantities of Finnish cereals in order to ensure a certain price level for the Finnish production. Products made with cereals are not submitted to price control, but this level is in practice set by the price of the mixture of raw materials which is used by the mills for grinding. The price of this mixture, again, is fixed by the government» When imports and eventual exports are calculated, the total need of cereals for consumption, the quality and the possibilities for s toring and financing are, among other facts, taken into consideration» The import prices of cereals are determined by world market prices on the date of purchase. The export prices also follow the general price level of the moment. The price of foreign cereals resold in the country does not depend on the prioe level on the world market. It is fixed by a decision of the government, and it depends on the price of the mixture of cereals used for grinding and of the price of corresponding Finnish cereals as well as on the share of Finnish cereals in the mixture of cereals used for grinding. The trade of the cereals imported from the USSR is based on annual agreements made within the frame of long term agreements on the total trade between the two countries.
l/1014/md.ll Page 4 IV. Statistical Information Statistical information concerning products handled by the Alcohol Company are attached in annexes II to V and concerning grains in annex 71 V» Reason why no Foreign Trade has Taken Place (if this le the case) in the Products Affected Does not apply* VI, Additional Information None.
1/1014/Add.ll Bage 5 âle I Finland Tariff Numbers Malt liquors; mead; cider with an alcoholic content not exceeding 6 per cent by volume; 22002 in containers of more than 2 litres 22003 in other containers Sparkling wines and effervescent wines; 22004 in containers of more than 2 litres in other containers? 22105 wines with special certificate 22205 others Light winesj with an alcoholic content not exceeding 15 per cent by volume, which are not to be placed under another heading: 22006 in containers of more than 2 litres in other containers: 22107 wines with special certificate 22207 others Strong wines, with an alcoholic content exceeding 15 per cant but not exceeding 24 per cent by volume, not to be placed under another heeling: 22008 in containers of more than 2 litres 22009 in other containers Liqueurs and other aicohojic beverages, with an alcoholic content exceeding 24 per cent by volume and with an extract content exceeding 4 per cent: 22010 in containers of more than 2 litres 22011 in other containers Brandies and other alcoholic beverages with an alcoholic content exceeding 24 per cent and an extract content not exceeding 4 per cent, not to be placed under another heading: in containers of more than 2 litres
I l/1014/add.u Page 6 22112 22212 gin others in other containers: 22113 22213 gin others 22014 22015 22016 22017 22018 22119 22219 Cognac : in containers of more in other containers Whisky: in containers of more in other containers Hum and arrack: in containers of more in other containers: rum other than 2 litres than 2 litres than 2 litres
ANNEX II FifiiSûi Import of Alcoholio Beverages In 195658 Customs Tariff Title 22002 22003 22004 22105 22205 22006 22107 22207 22008 22009 22010 22011 22112 22212 22113 22213 22014 22015 22016 22017 22018 22119 22219 Lbs. ii. n H II KgSc Lbs. II Amount 1956 79,475 35,069 78,024 18.500 2,673,732 114,443 100,850 637,231 175,087 9,240 89,873 64,261 59,364 106,115 1,288,819 282,487 108,113 146,951 210,113 18,969 FM c.i.f. 5,854,800 3,711,275 28,305,105 6,203,954 148,913,263 30,899,008 27,719,309 43,853,950 36,373,017 1,906,985 33,428,312 5,228,260 12,454,580 21,461,348 313,842,045 115,155,348 35,462,415 48,124,118 20,359,861 4,235,224 Amount 1957 57,659 10 48,563 6,189 2,740,952 118,575 85,065 740,677 171,738 10,453 96,299 59,810 66,589 99,022 827,975 190,170 89,051 146,638 204,396 10,415 3 FM c.i.f. 5,029,919 2,348 22,456,018 2,994,717 187,860,649 42,608,986 29,385,136 52,121,465 43,269,406 1,747,355 41,129,941 5,584,810 16,066,101 22,883,553 223,921,783 81,337,155 30,842,890 58,315,230 20,229,330 2,906,407 7,642 Amount 1958 FM c.i..f. 8 67,642 36 49,824 9,213 1,549,313 54,887 60,696 575,528 130,150 40,020 63,077 17,382 75,718 99,161 101,082 119,546 89,204 157,710 101,799 12,949 1,770 200 7,609,644 15,760 27,201,241 4,556,717 164,352.758 21,394,235 26,208,394 59,786,868 38,853,564 5,921,460 31,851,035 1,635,575 21,943,146 30,058,485 58,945,236 80,036,498 34,848,150 73,394,924 13,582,092 5,312,620 938,305 1 P
ANKBC III. Finland Production Figures for 195( Production of yeast Production of vinegar Bottling of vinegar Production of sulphite spirit of which containing metanol without metanol waterfree (containing metanol) Purification of sulphite spirit of which at RajamSki at Koskenkorva Production of corn brandy of which at RajamSki at Koskenkorva Purification of corn brandy Bottling of alcoholic beverages of which at RajamSki in Helsinki 5 bottles loo# H»i bottles litres bottles bottles 5,571,000 949,200 1,011,600 22,111,556 8,297,938 11,881,210 1,932,408 4,997,577 4,430,740 516,837 915,831 390,940 524.891 822,250 35,255,429 18,794,794 18,416,541 16,838,888 5,628,613 685,956 800,780 23,292,098 7,950,012 13,903,797 1,438,289 5,048,937 4,492,720 556,217 949,537 426,834 522,703 864,760 31,609,500 16,809,557 16,662,374 14,947,126 5,638,730 711,780 905,840 24,112,692 8,346,415 15,477,950 288,327 4,128,112 3,645,690 482,422 665,837 380,673 285,164 713,460 29,915,787 15,624,543 18,322,311 11,593,476
ANNEX 17 Finland Export of Alcoholic Beverages in 195658 litre 1956 FM f.o.b. Litre 1957 FM f.o.b. Litre 1958 FM f.o.b. Boor and other brewed bevoragos Wines 6,797 1,116 1,002,505 907,930 43 13,155 80 2,096 8,128 747,246 Brandies 4,002 4,087,357 805 125,395 2,920 568,334 Liqueurs 1,229 606,865 2,539 913,592 2,687 1,848,953 Other alcoholic beverages 634 943,433 1 160 II o
L/1014/Add.ll Itoge 10 ANNEX Y Finland Export of Spirit (ethyl alcohol) In 195658 100% m 1956 7,512,721 148, Wf, 309 1957 10,056,467 312,756,996 1958 15,882,381 691,415,239 ANNEX VI The figures concerning the import and export of cereals and the production of Finnish cereals will be transmitted later.