Recently, the Swedish Government proposed a new legislation regarding tax on chemicals in certain consumer products. Accordingly, the following procedures are proposed:

(i) Products subject to excise duty are defined using the tariff classification in the European Community’s Combined Nomenclature (CN codes), and thus the proposed legislation lists a number of CN codes for the products intended to be taxed.

(ii) The proposed excise duty rate is approx. US$1 per KG for kitchen appliances and approx.

(iii) The taxable persons are commercial manufacturers and importers of the relevant goods. There is also a possibility to become taxable by registering as an approved warehouse holder.

(iv) The tax is due when the taxable goods are manufactured or brought into Sweden. Also, approved warehouse holders can defer the tax until the goods are delivered to someone who is not an approved warehouse holder, moved to one of the approved warehouse holders’ stores for retail sale or used for purposes other than sales and when the approval as warehouse holder is revoked.

(v) A deduction of 50% of the excise duty should be allowed for electronic products that do not contain additive compounds of bromine, chlorine or phosphorus.

(vi) Distance sales of the relevant goods by foreign producers/retailers directly to Swedish consumers are not taxed.

Furthermore, there is no tax liability for goods delivered to approved warehouse holders. Goods that have already been taxed, delivered to customers in other countries, completely destroyed by unforeseen events or force majeure, left for recycling or have been reused in the manufacturing of taxable goods are not taxable for approved warehouse holders.

This law will be effective from 1 April 2017 and applicable from 1 July 2017.