SPICES AND HERBS

A survey of the market for Spices and Herbs in Denmark

The Danish Import Promotion Programme DIPP offers free services to exporters in developing countries in terms of
contact mediation to Danish importers and market information about the Danish market. DIPP is operated by The Danish
Chamber of Commerce and financed by The Danish International Development Assistance, DANIDA

April 2006
The Scandinavian Market
There are many similarities among the Scandinavian
countries with regard to culture, language, political and
social systems etc. Also when it comes to consumer
behaviour and product preferences you find many
similarities.
When entering one of the Scandinavian markets it therefore
might be relevant to consider the possibilities in the other
Scandinavian countries as well.
All Scandinavian countries have import promotion facilities.
Below you will find a short presentation of the import
promotion organisations in Denmark, Norway and Sweden.

Inhabitants: Denmark 5.4 million

Norway 4.6 million
Sweden 9.1 million

Norway Denmark Sweden

Denmark Norway Sweden

The Danish Import Promotion The Norwegian Office for Import Within the trade promotion
Programme (DIPP) is integrated in the Promotion (OIP) operates under a programme of the Swedish
Danish Chamber of Commerce and contract between HSH Chambers assistance is provided
operates under a contract between (The Federation of Norwegian to exporters from Africa, Asia and
The Danish International Development Commercial and Service Enterprises) Latin America. The overall aim of
Assistance (DANIDA) and the Danish and NORAD (Norwegian Agency for the programme is to contribute to
Chamber of Commerce. Development Cooperation). HSH OIP sustainable economic growth in
The objective of DIPP is to assist is integrated in HSH - but is fully developing countries by
exporters/producers in Africa, Asia sponsored by NORAD. strengthening the capacity and
and Latin America to enter the Danish From the website www.hsh-org.no competitiveness of exporters.
market. you can read more about HSH. From the website www.cci.se/trade
At DIPP's website www.dipp.eu you HSH OIP promotes imports from you can learn more about the
can read more about DIPP and its developing counries. www.hsh-org.no programme, download or order
activities, download or order market gives access to a database where market reports as well as register
information material regarding the suppliers in developing countries your business inquiry free of charge
Danish market or register your interested in the Norwegian market in the database Chamber Trade
business offer to be advertised on can register. Studies of the (www.chambertrade.com).
the website. Norwegian market for specific sectors The prgramme is funded by the
can be downloaded from the website. Swedish International Development
Contact details: Co-operation Agency (Sida) and the
The Danish Chamber of Commerce / Contact details: Swedish Chambers of Commerce.
DIPP HSH – Norwegian Office of Import
Boersen, Slotsholmsgade Promotion Contact details:
DK-1217 Copenhagen K, Denmark The Confederation of Norwegian Swedish Chambers of Commerce
Phone: +45 72 25 50 00 Commercial and Service Enterprises Trade Promotion
Fax: +45 72 25 50 01 P.O. Box 2900 Solli, PO Box 16050
E-mail: dipp@htsi.dk NO-0230 Oslo, Norway SE-10321 Stockholm, Sweden
Webpage: www.dipp.eu Tel: +47-2254 1700 Phone: +46-8-555 100 00
Direct tel: +47-2254 1752 Fax: +48-8-566 316 30
Fax: +47-2256 1700 E-mails: tradeoffice@chamber.se
E-mail: e.d.gjeruldsen@hsh-org.no info@chambertrade.com
Webpage: www.hsh-org.no

Market Survey - Spices and Herbs DIPP April 2006

This market brief is published by DIPP, April 2006.

DIPP

The Danish Import Promotion (DIPP) Programme operates in accordance with an agreement between the Danish
Chamber of Commerce and The Danish International Development Assistance (Danida). The office is situated in
the Chamber of Commerce but is financed by Danida.

The aim of DIPP is to provide service to exporters in the developing countries in their endeavours to enter the
Danish market. The office can assist with market information and with establishing contacts to Danish importers.
Business offers are published free of charge at DIPP’s website (www.dipp.eu).

DIPP
Danish Chamber of Commerce
Boersen
DK-1217 Copenhagen K
Denmark
Phone: +45 72 25 50 00
Fax: +45 72 25 50 00
E-mail: dipp@htsi.dk
www.dipp.eu

Disclaimer

The information provided in this market brief is believed to be accurate at the time of publishing. It is, however, passed on to the
reader without any responsibility on the part of DIPP or the authors and it does not release the reader from the obligation to comply
with all applicable legislation.

Neither DIPP nor the authors of this publication make any warranty, expressed or implied, concerning the accuracy of the information
presented, and will not be liable for injury claims pertaining to the use of this publication or the information contained therein.

No obligation is assumed for updating or amending this publication for any reasons, be it new or contrary information or changes in
legislation, regulations or jurisdiction.

Market Survey - Spices and Herbs DIPP April 2006

Acronyms
ACP African, Caribbean and Pacific States
ASTA American Spice Association
ASEAN Association of South East Asian Nations
CIF Cost, Insurance and Freight
CN Combined Nomenclature
EBA Everything But Arms
ESA European Spice Association
EU European Union
EUR Euro (European Union Common Currency)
FLO Fair Trade Labelling Organisations International
FOB Free On Board
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GSP Generalised System of Preference
HACCP Hazard Analysis and Critical Control Point
HS Harmonized System
IFAT The global network of Fair Trade Organizations
ILO International Labour Organisation
IMF International Monetary Fund
LDC Least Developed Countries
NATO North Atlantic Treaty Organisation
NGO Non-governmental Organisation
OECD Organisation for Economic Co-operation and Development
SAARC South Asian Association for Regional Cooperation
SP Special Pension
TBT Technical Barriers to Trade
UN United Nations
USD United States Dollar
VAT Value-Added Tax
WTO World Trade Organisation

Market Survey - Spices and Herbs DIPP April 2006

Table of Contents
1. INTRODUCTION TO DENMARK .............................................................................................................. 2
Economic Outlook................................................................................................................................................. 2
Standard of Living ................................................................................................................................................ 3
Household Consumption ....................................................................................................................................... 3
Infrastructure....................................................................................................................................................... 4
Membership of the European Union ....................................................................................................................... 4
General Trade Figures........................................................................................................................................... 4
Industrial Pattern.................................................................................................................................................. 5
Language Skills .................................................................................................................................................... 6
Visitor’s Visa......................................................................................................................................................... 6
2. MARKET DEFINITION ............................................................................................................................ 7
3. MARKET ANALYSIS ................................................................................................................................ 8
Market Size .......................................................................................................................................................... 8
Consumer Trends ............................................................................................................................................... 12
Product Characteristics........................................................................................................................................ 12
Market Access .................................................................................................................................................... 12
Distribution ........................................................................................................................................................ 12
Price and Mark-Ups............................................................................................................................................. 13
4. COMMERCIAL PRACTICE ..................................................................................................................... 14
Business Appointments ....................................................................................................................................... 14
Contacting the Importer...................................................................................................................................... 15
Meeting with the Importer .................................................................................................................................. 15
Delivery and Transport of Goods ......................................................................................................................... 15
Ethics and Code of Conduct................................................................................................................................. 15
5. LEGAL REQUIREMENTS, CUSTOMS DUTY, IMPORT REGULATIONS AND TRADE AGREEMENTS.......... 17
Product Requirements......................................................................................................................................... 17
Packaging Requirements ..................................................................................................................................... 19
Labelling ............................................................................................................................................................ 19
Organic Production ............................................................................................................................................. 20
Custom Duty and Import Regulations .................................................................................................................. 20
Trade Agreements .............................................................................................................................................. 21
6. TRADE FAIRS ....................................................................................................................................... 24
7. IMPORTANT ADDRESSES..................................................................................................................... 25
8. USEFUL INTERNET SITES..................................................................................................................... 26
APPENDIX 1 – DISTRIBUTION OF PRIVATE CONSUMPTION....................................................................... 27
APPENDIX 2 – ADDITIONAL TRADE AGREEMENTS ...................................................................................... 28
Cotonou Agreement............................................................................................................................................ 28
EU-ASEAN Bilateral Trade Relations ..................................................................................................................... 28
World Trade Organisation (WTO) ........................................................................................................................ 28
APPENDIX 3 – CLASSIFICATION OF COUNTRIES ........................................................................................ 30
APPENDIX 4 – WTO MEMBER COUNTRIES................................................................................................... 31

Market Survey - Spices and Herbs DIPP April 2006

Map of Denmark and the European Union

Facts about Denmark

Area: 43,095 sq. kilometres Other large counties:
Population: 5,411,405 Aarhus: 661,370 inhabitants
Urban population: 85% Funen (Odensen): 478,347 inhabitants
Life expectancy: 77.62 years North Jutland (Aalborg): 495,090 inhabitants
Capital: Copenhagen County (618,529 inhabitants)
Language: Danish
English is the predominant second
language
GDP (2004): EUR 194,680 million Distances:
GDP per capita EUR 35,976 Copenhagen – Aarhus 300 kilometres
(2004): Copenhagen – Odense 165 kilometres
Currency: Krone (DKK) (1 DKK = 100 øre) Copenhagen – Aalborg 400 kilometres
Denmark has not adopted the EURO, but
prices are stated in EURO and EURO is an
accepted form of payment.

Exchange rate: US$: 1 US$ = 6.15 DKK Ports and harbours: Aalborg, Aarhus,
EUR: 1 EUR = 7.46 DKK Asnaesvaerkets, Copenhagen,
(as per 2 January 2006) Elsinore, Ensted, Esbjerg,
Denmark's currency is pegged to the euro. Fredericia, Frederikshavn,
Graasten, Kalundborg, Odense,
Roenne
Time Zone: CET (GMT + 1) Public Holidays
(2006):
Business hours: Monday to Friday, 9.00 am to 5.00pm News Year’s Day January 1st
Palm Sunday April 9th
Weight and The metric system Maundy Thursday April 13th
measures: Good Friday April 14th
Easter April 16th
Climate: Temperate; humid and overcast; mild, Easter Monday April 17th
windy winters and cool summers. The Common Prayer Day May 12th
average temperature in July ranges from Ascension Day May 25th
12 to 20 degrees Celsius, opposed to the Whit Sunday June 4th
average temperature of January, which With Monday June 5th
ranges from –3 to +2 degrees Celsius. Constitution Day June 5th
Christmas December 24th
Member of EU, UN, NATO, OECD, WTO, IMF and the Christmas Day December 25th
international Nordic Council Boxing Day December 26th
organisations:

Market Survey - Spices and Herbs April 2006 1

2. Introduction to Denmark

Denmark is the southernmost country of both Scandinavia and of the so-called Nordic Region (which additionally
includes Finland and Iceland). Denmark’s geography contrasts with its northern neighbours in being
characteristically non-mountainous with a flat and fertile terrain.

The form of government is a parliamentary democracy. Elections are conducted according to proportional
representation, with every citizen over the age of 18 entitled to vote. The present government, formed after a
general election in November 2001, is a coalition of the Liberals and the Conservatives.

The system of production is capitalist (economic liberalism) with private ownership of businesses and production.
The state and other public authorities, however, exercise a considerable regulatory control and provide
comprehensive services for the citizens.

This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate
industry, extensive government welfare measures, comfortable living standards, a stable currency, and high
dependence on foreign trade. Denmark is a net exporter of food and energy and enjoys a comfortable balance of
payments surplus. Government objectives include streamlining the bureaucracy and further privatization of state
assets.

Economic Outlook
New national accounts data point to strong gross domestic product (GDP) growth in 2005, approximately 3.2%.
Strong momentum going into 2006 means that GDP should grow by 2.8%. As a consequence, the unemployment
rate will fall to approximately 5.5% of the labour force this year, expected to level off in 2007 at about 5.1% of
the labour supply (See table 1).

The expected large economic surpluses in 2005 and 2006 are affected by unusual factors, not least the large
income from oil fields in the North Sea and a greater tax base following suspension of Special Pension (SP)-
contributions.

The increase in oil prices will cause an increase in inflation and thus a slight decrease in household income
growth. This will affect household consumption, but the effect will be offset by lower interest rates, stronger
growth in house prices, and a further suspension of the SP-contributions into 2007. The growth in household
consumption is expected to be 2.5% in 2006.

Table 1 – Forecast Summary

Forecast Summary (% unless otherwise indicated)

2004 2005 2006 2007
Real GDP growth 2.1 3.2 2.8 2.1
Industrial production growth 0 1.6 2.5 1.3
Unemployment rate (average) 6.4 5.4 5.5 5.1
Consumer price inflation (average; national measure) 1.2 1.8 2.1 2
Short-term interbank rate 2.2 2.2 2.6 3.3
Government balance (% of GDP) 1.7 3.3 1.9 1.1
Exports of goods fob (USD billion) 75.1 89.9 98.1 105.4
Imports of goods fob (USD billion) 65.5 78.3 87.2 94.7
Current-account balance (USD billion) 5.9 7.8 6.3 5.8
Current-account balance (% of GDP) 2.4 3.1 2.4 2
Exchange rate DKK:USD (average) 5.99 5.99 5.97 5.57
Exchange rate DKK:¥100 (average) 5.54 5.44 5.25 5.33
Exchange rate DKK:EUR (average) 7.45 7.45 7.45 7.45
Source: Economist Intelligence Unit 2006

Market Survey - Spices and Herbs April 2006 2

Standard of Living
On the basis of a high GDP per capita, welfare benefits, a low income distribution, and political stability, the
Danish people enjoy high living standards.

As evident from table 2 below, households consisting of either 2 adults (Married or cohabitant) or a family with
children have the highest average annual income. Married and cohabiting couples as a group also constitute the
largest number of households in Denmark in 2005 according to table 3.

Table 2 – Average Income per Year per Family Type (2003)

Family Type DKK

Couples 337,993

Singles 143,081

Households with no children 102,104

Households with children 167,620

Source: Statistics Denmark

Table 3 – Number of Households according to Type of Household (2005)

Number of Households according to Type of Household (2005)

Single Male 450,127

Single Female 611,069
Married Couple 864,223
Couples (excl. married couples) 279,419
Family with children living at home 158,778
Households incl. more than one family 133,808
Source: Statistics Denmark

Household Consumption
According to the latest statistics, consumer spending remained buoyant throughout 2005. This reflects several
factors, such as new mortgage products and the continued effects of the spring fiscal package of tax cuts in June
2004.
Table 4 – Private Consumption Spending

Private Consumption Spending 2003 2004 2005

(% change year on year unless otherwise indicated;
seasonally adjusted; at 1995 prices unless otherwise
indicated) 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr

Private consumption 2.3 3.2 3.8 3.5 4.6 4.7 5 4.5

Durable goods 2.6 4.6 4.3 5.7 9.1 4.8 7.7 6
Semi-durable goods 4.5 6.1 5.9 8.3 10 4.6 7.3 4.9
Non-durable goods 2.4 1.8 1.7 1.2 1.1 0.2 0.4 -0.2
Purchase of vehicles -11.6 26.5 39.3 33.3 40 31.5 24.5 23.5
Services 1.9 1.1 1.4 1.5 1.6 1.5 1.5 1.9
Consumer confidence indicator (net balance; %) 2 3 8 8 7 8 7 10
Households' financial situation (net balance; %) 6 7 12 13 12 13 11 13
Source: Statistics Denmark

In comparison to many other European citizens, Danes tend to use a relatively large part of the income on
housing and relatively less on other areas. Housing accounts for over 20% of household expenditure, whereas
foodstuffs and beverages only represent 15-16%, clothing 4.9% and furniture and domestic goods 6.2% of the
average household expenditure.

Market Survey - Spices and Herbs April 2006 3

Table 5 – Distribution Private Consumption

Distribution of Private Consumption (%) (2003/2004)

Food 11.1
Beverage and tobacco 4.8
Clothing 4.9
Housing 22.7
Electricity and heating 7.6
Furniture and domestic goods 6.2
Healthcare 2.6
Transportation and communication 16.2
Culture and leisure 11
Other goods and services 12.9
Source: Statistics Denmark

See Appendix 1 for a Distribution of Private Consumption by level of income.

Infrastructure
Denmark has a well-developed network of motorways. The high-quality motorway network means swift and easy
access to all markets in the Northern European region. Through the opening of the Oeresund bridge in July 2000
Denmark is now the gateway to the Scandinavian countries and the Baltic area. There is direct access from
Copenhagen to the city of Malmoe in Sweden either by train or car via the Oeresund bridge.

Copenhagen Airport is the main hub in Northern Europe. It is the national airline carrier’s principal airport and it
has been retained by DHL (the international courier) as its Northern European hub. Besides Copenhagen,
Denmark has three other international airports, Aarhus, Aalborg, and Billund, all located in the peninsula of
Jutland.

The major industrial ports offer daily connections to overseas destinations and regular connections to major ports
in Europe, freeport and bonded warehousing facilities and ro-ro/lo-lo facilities. The international port in
Copenhagen has the shortest turnaround times, 24-hour service, some of the cheapest rates in Europe and
cooperates closely with Malmoe Port of Sweden.

Denmark has one of the most advanced telecommunication infrastructures in Europe and the network is fully
digitalized. Denmark’s penetration of mobile telephone subscriptions is ahead of the average European level.
Denmark is also characterised as a top-ranked country with regard to penetration rates for PCs and household
Internet (broadband) access.

Membership of the European Union

As a member of the EU, Denmark enjoys open market access to the other EU countries. Within the EU a Customs
Union has been formed, allowing goods to move freely across borders without customs or taxes. For non-EU
countries, however, specific rules apply (please refer to chapter on “Customs Duty and Import Regulations”).

Denmark also enjoys membership of international organizations, such as the OECD and the WTO, and is
traditionally striving to actively remove obstacles to free trade within these frameworks.

General Trade Figures

Denmark has a small, open economy highly dependent on trade with other countries. As foreign trade accounts
for most of the GDP, Denmark has a strong interest in the free exchange of goods and services between
countries.

Foreign trade accounts for 2/3 of GDP and around 2/3 of the total foreign trade is with other EU countries.
Germany is Denmark’s main trading partner, but Sweden and Great Britain are also important. Outside the EU,
Norway, the US and Japan are important trading partners. Among the new market economies in Central and
Eastern Europe, the trade with Poland has grown particularly rapidly in recent years.

Consumer goods constitute around 30% of imports, while raw materials and semi-manufactured products,
including energy, machinery, other capital equipment and means of transport, account for the rest.

Market Survey - Spices and Herbs April 2006 4

With regard to total imports to Denmark in 2004, imports from other EU countries accounted for 72.3%. Other
European countries accounted for 9.2%, Asia and Oceania accounted for 11.8%, the Americas for 5.8%, and only
0.9% of total imports came from Africa.

Figure 1 – Imports to Denmark, % of total imports by geographic region, 2004

6% 1%
12%

EU Countries
9%
Other European Countries
Asia and Oceania
The Americas
Africa

72%

Source: Statistics Denmark

Table 6 - Danish Imports from Danida Programme Countries* incl. South Africa (All Products, DKK)

(*All Danida's Programme Countries are eligible for financial support provided by the Danish Government)
Country 2003 2004 2005 % Change**

South Africa 1,121,937,989 1,044,838,169 1,093,460,076 4.65

Vietnam 730,867,828 737,152,339 695,065,408 -5.71
Bangladesh 692,227,101 775,618,896 534,408,765 -31.10
Ghana 85,593,682 201,606,021 105,310,021 -47.76
Egypt 67,057,105 64,176,022 74,971,688 16.82
Uganda 21,974,502 25,685,207 18,598,593 -27.59
Kenya 27,163,951 24,942,663 18,382,680 -26.30
Zambia 807,350 1,640,971 7,441,487 353.48
Mali 2,929,211 9,597,831 6,767,060 -29.49
Benin 29,463,018 55,811,615 4,693,059 -91.59
Tanzania 7,780,421 4,132,826 4,538,058 9.81
Burkina Faso 28,284,388 4,707,966 3,381,856 -28.17
Bolivia 7,529,534 3,194,151 3,122,063 -2.26
Nicaragua 3,677,745 3,719,383 1,592,593 -57.18
Mozambique 561,984 236,831 26,504 -88.81
Bhutan 28,571 131,347 6,244 -95.25
**From 2004 to 2005
Source: Statistics Denmark

Industrial Pattern
The Danish production industry is dominated by small and medium-sized niche productions of a high technical
standard. Compared to other industrialized countries, even the largest Danish companies are, with few exceptions,
only medium sized.

Except for heavy industries such as mining, car and plane industries etc., practically all business sectors exist in
Denmark. Due to an increasing specialisation, division of tasks, and seasonality, however, a large range of

Market Survey - Spices and Herbs April 2006 5

products is also imported to Denmark. The Danish industry is mainly constituted of light manufacturing and
reprocessing, and production is often characterized by a high degree of specialization in a particular, well-defined
field. Products, which have made Denmark known internationally, are primarily meat and dairy products,
pharmaceuticals, furniture, beer, electronic products and advanced metal industry.

Language Skills
Denmark’s international outlook is reflected in the fact that the population commands excellent language skills,
English being considered a natural second language. Cross-border communication in Scandinavia is aided by the
fact that Danes, Norwegians and Swedes are highly adept at understanding each other's languages. Among the
younger generations especially, it is common to be skilled in several European languages, including German,
French and Spanish.

Visitor’s Visa
For visitors from overseas countries a visa is usually required to visit Denmark. A letter of invitation from the
Danish business partner will often help in obtaining the visa. The exporter must apply for a visa at the Danish
Embassy or Consulate in his or her home country.

A visa is issued for the purpose of a short stay (less than 3 months) in Denmark and other Schengen countries.
Parties to the Schengen Agreement are: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Iceland,
Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain and Sweden.

Employment is not permitted during the stay covered by the visa.

Foreign citizens who are exempted from basic visa requirements can stay, but not work, in the Schengen region
up to 3 months.

According to the Schengen Agreement, a visitor's or business visa allowing the holder to stay up to 90 days per
six-month period, transit or airport visa granted by one Schengen country entitles the holder, for the same
purpose and for the duration of the visa's validity, to enter without border checks other Schengen countries as
well.

Visit the Danish Ministry of Foreign Affairs’ website (www.um.dk) for further information on visa rules and
regulations.

Market Survey - Spices and Herbs April 2006 6

3. Market Definition

This market survey covers spices and herbs:

• Spices: pepper, paprika, capsicum, caraway, anise, vanilla, cinnamon, cloves, nutmeg, mace,
cardamoms, fennel seeds, coriander, cumin, caraway, juniper berries, ginger, saffron, turmeric, curry, and
other spices
• Herbs: Parsley, marjoram, oregano, thyme, bay leaves, rosemary, basil, mint, savoury, dill, tarragon,
sage, and other herbs

In order to avoid misunderstandings the classification of spices and herbs in this market survey will be based on
the Combined Nomenclature (CN).

The CN is the 8-digit trade classification system used by the European Union for tariff purposes. The system is
directly linked to the 6-digit Harmonized System (HS) used by the vast majority of trading nations throughout the
world. The CN codes used in this market brief are:

Table 7 – Overview of CN Codes

CN Code Description

0904 Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta
0905 Vanilla
0906 Cinnamon and cinnamon-tree flowers
0907 Cloves (whole fruit, cloves and stems)
0908 Nutmeg, mace and cardamoms
0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries
0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices
Spices and herbs not mentioned under the above CN codes are classified under the CN code 0910 (other spices).

When exporting to countries within the EU, it is necessary to state the exact CN number of the specific type of
spice or herb. More information and details on the Combined Nomenclature is available on
http://europa.eu.int/comm/taxation_customs.

Market Survey - Spices and Herbs April 2006 7

4. Market Analysis

Despite high levels of promotion through TV and cooking programmes, as well as a trend towards spicy ethnic
food, the market for spices and herbs has declined throughout the past three years, as evident from tables 8 and
10. But, prices of spices vary considerably from year to year as does the amount importers keep in stock, which
taken together can cause large fluctuations in consumption figures, as evident from tables 10 and 11. Therefore,
given the ongoing popularity of novel international cuisine, high demand for more exotic, ethnic sauces, dressings
and condiments is expected to characterise the forecast period. While it is difficult to predict which types of cuisine
will enjoy sustained growth beyond a more ephemeral trend, it is arguably the more exotic and unusual flavours
that will inject new life into sales and consumer demand.
Table 8 – Annual Total Consumption per Household (DKK)

% Share of
% Change Total
2000/2001 2002/2003
(2000 – 2003) Consumption
(2002/2003)

Annual Total Consumption per Household 229,234.4 233,606.7 2

Food 25,803.2 26,030.6 1 11

Spices and Herbs 188.9 174.2 -8 n/a
Source: Statistics Denmark
Table 9 - Price Level Index for Food

Purchasing Power Parity and Price Level Index for Food 2002 2003 2004

Actual Individual Consumption

Price Level Index (Index EU-15 = 100) 130,00 133,20 132,60
GNP per capita (Index EU-15 = 100)) 104,00 103,60 -

Food
Price Level Index (Index EU-15 = 100) 128,00 129,80 127,40
Source: Statistics Denmark

Market Size
The market for spices and herbs can be subdivided into three segments: the consumer, the institutional (HoReCa
– hotels, restaurants and cafés) and the industrial market (see figure 2 below). Similar to other European
countries, the industrial sector in Denmark is by far the largest consumer of spices and herbs as these are used in
the processing of meat, fish, canned products, sauces, soups, and bakery goods etc.

Figure 2 – Market share by consumer segment, Market for Spices and Herbs, Denmark

20%

Industrial sector
Catering sector
Retail sector
13%

67%

Market Survey - Spices and Herbs April 2006 8

There is no commercial cultivation of spices and herbs in Denmark, since most of these are grown in tropical or
subtropical climates.

As evident from table 12 the main exporters to the Danish market are other European countries with Germany,
Sweden and the Netherlands as the biggest ones. Most spices are produced in the developing world and
thereafter shipped to large distribution centres in the EU, particularly in Germany, Sweden and the Netherlands
and then re-exported to other EU-countries, including Denmark. Not surprisingly, India is one of the major
exporters to the Danish market with Indonesia and China just outside top 10.
Table 10 - Trade Statistics - Value (DKK)

2003 2004 2005 % Change

(2003 – 2005)

*Own Production and Sale to Home Market 17,672,000 13,285,000 1,805,000 -89.79
Export 74,302,650 62,519,344 68,200,813 -8.21
Import 167,831,730 200,446,403 152,916,335 -8.89

Import from Developing Countries 19,946,168 23,275,578 19,535,615 -2.06

Import from Danida Programme Countries incl. RSA 1,607,265 2,515,204 2,622,651 63.17

Market Size (Own Production + Imports – Exports) 111,201,080 151,212,059 86,520,522 -22
* Own production refers to re-processing of imported goods, since spices are not grown locally, and sale of spices and herbs to home
market.
Source: Statistics Denmark

Table 11 – Trade Statistics – Volume (Kilos)

2003 2004 2005 % Change

(2003 – 2005)

Own Production and Sale to Home Market 180,000 152,000 74,000 -58.89
Export 2,365,160 1,728,584 2,462,752 4.13
Import 7,840,560 7,317,620 5,773,423 -26.36

Source: Statistics Denmark

The significant decrease in own production and sale to home market from 2004 to 2005 was due to outsourcing of
production to Sweden by Santa Maria - the biggest producer of spices, barbecue products, Tex Mex, Thai and
Indian products in the Nordic countries. Santa Maria accounts for approximately 90% of the Danish market for
spices and herbs, and in addition to marketing and producing own label products the company also produces for
supermarkets’ private labels.

Market Survey - Spices and Herbs April 2006 9

Table 12 - Top 10 Exporting Countries to the Danish Spices and Herbs Market, 2003-2005 (DKK)

% Share of
% Change
Country 2003 2004 2005 Total Import
(2003 – 2005)
(2005)

Germany 68,327,977 86,823,176 61,422,899 -10.11 40.17

Sweden 21,006,756 34,042,675 29,148,379 38.76 19.06
The Netherlands 25,563,564 24,383,195 16,604,363 -35.05 10.86
India 9,984,521 9,232,720 8,933,777 -10.52 5.84
France 11,437,507 11,179,722 8,149,933 -28.74 5.33
Spain 2,726,363 2,608,713 4,110,755 50.78 2.69
Thailand 2,695,076 3,514,851 3,827,159 42.01 2.50
United States 3,724,909 2,749,695 2,614,160 -29.82 1.71
Italy 2,617,909 3,606,980 2,242,251 -14.35 1.47
United Kingdom 5,086,615 2,991,126 1,706,093 -66.46 1.12
Indonesia 2,216,701 3,018,362 1,351,739 -39.02 0.88
China 652,860 2,043,763 1,070,311 63.94 0.70
Source: Statistics Denmark

Table 13 - Imports to the Danish Market from Danida Programme Countries incl. South Africa, 2003 – 2005, DKK
% Share of
Total Import by
% Change
Country 2003 2004 2005 Developing
(2003 - 2005)
Countries
(2005)

Bangladesh 0 0 0 n/a n/a

Benin 0 0 0 n/a n/a
Bhutan 0 0 0 n/a n/a
Bolivia 107 0 0 -100.00 n/a
Burkina Faso 0 0 0 n/a n/a
Egypt 185,781 66,092 8,179 -95.60 0.04
Ghana 0 3,244 1,133 n/a n/a
Kenya 0 0 0 n/a n/a
Mali 0 0 0 n/a n/a
Mozambique 0 0 0 n/a n/a
Nicaragua 0 0 0 n/a n/a
South Africa 208,555 130,609 238,852 14.53 1.22
Tanzania 3,445 459 0 -100.00 0.00
Uganda 77,752 68,169 335,604 331.63 1.72
Vietnam 1,131,625 2,246,631 2,038,883 80.17 10.44
Zambia 0 0 0 n/a n/a
Source: Statistics Denmark

The most important spices and herbs, in value terms, are CN Codes 09.10, 09.04 and 09.05 as evident from tables
14 to 17. Again, Germany and Sweden are the main exporters of these three categories, however, these statistics
do not take into account the country of origin if the product has entered Denmark through another EU country,
hence, the statistics should not be taken at face value.

Market Survey - Spices and Herbs April 2006 10

Table 14 - Top 5 Spices and Herbs Import Articles, 2005 (´000 DKK)

CN Code Articles ´000 DKK Top 5 Export

Countries (2005)

09.10 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and 80,541 Germany
other spices Netherlands
Sweden
France
India
09.04 Pepper of the genus Piper; dried or crushed or ground fruits of the 39,937 Sweden
genus Capsicum or of the genus Pimenta Germany
Netherlands
India
Singapore
09.05 Vanilla 14,535 Germany
France
Sweden
French Polynesia
United States
09.06 Cinnamon and cinnamon-tree flowers 5,861 Sweden
Germany
Netherlands
Indonesia
China
09.09 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper 5,330 Germany
berries Sweden
Thailand
Netherlands
Finland

Table 15 – Export of Selected CN Groups (´000 DKK)

CN Code Articles 2003 2004 2005 % Change % Share of

(2003- Market Size
2005) (2005)

09.04 Pepper of the genus Piper; dried or 13,558 9,745 9,901 -26.98 11.44
crushed or ground fruits of the genus
Capsicum or of the genus Pimenta
09.05 Vanilla 2,699 3,517 832 -69.18 0.96
09.06 Cinnamon and cinnamon-tree flowers 799 485 376 -52.91 0.43
09.07 Cloves (whole fruit, cloves and stems) 258 212 198 -23.04 0.23
09.08 Nutmeg, mace and cardamoms 1,098 1,272 1,453 32.36 1.68
09.09 Seeds of anise, badian, fennel, coriander, 613 651 684 11.44 0.79
cumin or caraway; juniper berries
09.10 Ginger, saffron, turmeric (curcuma), 55,278 46,637 54,757 -0.94 63.29
thyme, bay leaves, curry and other spices

Table 16 – Import of Selected CN Groups (´000 DKK)

CN Code Articles 2003 2004 2005 % Change % Share of

(2003- Market Size
2005) (2005)

09.04 Pepper of the genus Piper; dried or 45,634 54,117 39,937 -12.49 46.16
crushed or ground fruits of the genus
Capsicum or of the genus Pimenta
09.05 Vanilla 29,160 26,525 14,535 -50.15 16.80
09.06 Cinnamon and cinnamon-tree flowers 4,094 7,912 5,861 43.14 6.77
09.07 Cloves (whole fruit, cloves and stems) 1,145 2,430 1,937 69.10 2.24
09.08 Nutmeg, mace and cardamoms 8,723 9,362 4,776 -45.25 5.52
09.09 Seeds of anise, badian, fennel, coriander, 4,535 5,064 5,330 17.53 6.16
cumin or caraway; juniper berries
09.10 Ginger, saffron, turmeric (curcuma), 74,540 95,035 80,541 8.05 93.09
thyme, bay leaves, curry and other spices

Market Survey - Spices and Herbs April 2006 11

Consumer Trends
Ethnic Food
In recent years Danish consumers have taken an increasing interest in ethnic food, i.e. cuisine from especially
India, East Asia as well as from Latin America and the Mediterranean countries. This tendency is reflected in the
growth and number of ethnic restaurants in Denmark; in the types of products that the food industry is producing;
in the increasing variety of spices and ingredients for these types of food found on the shelves in Danish
supermarkets; as well as in the rise in numbers of television cookery programmes and recipes in magazines
promoting the cuisines of nationalities other than Danish. The increasing interest in these international cuisines
means that spices not traditionally used in the Danish cuisine are gaining ground on the Danish market.

Organic Spices and Herbs

An increasing interest in organic food on the Danish market has been noticeably over the last decade, which has a
positive spill over effect on the demand and consumption of organic spices and herbs. Especially, in the Danish
food industry producers of organic meat and cheese products demand organic spices for their production of purely
organic food and dishes.

Product Characteristics
Danish importers of spices and herbs often stress the combination of price and quality. This, however, does not
mean that a low price is the most important factor for the purchasing decision - a reasonable price combined with
a product of high quality is just as important. Generally, the main quality factors considered for spices and herbs
are appearance, flavour, aroma, colour, volatile oil content and cleanliness of the products.

Private Labels
There is an increasing interest in the production of private labels of spices demanded from the food industry,
catering firms as well as from retailers. Manufacturers of spices experience an increasing demand from these
players in having different custom-made blends of spices produced according to these players’ specific needs and
line of business.

Market Access
The market for spices and herbs in Denmark can be characterized as buyer’s market as Danish importers can pick
and choose from many uninvited offers from foreign exporters all over the world who want to gain a foothold on
the Danish market.

As it is the case in many different business relationships mutual trust and reliability between the exporter and
importer of spices and herbs are also of paramount importance if a fruitful relationship should be established.
Many Danish importers stress the importance of a foreign exporter being certified (for example ISO certification or
following an approved HACCP system (Hazard Analysis and Critical Control Point, see for example:
http://vm.cfsan.fda.gov/~lrd/haccp.html)) or being highly recommended by other customers in Denmark or
Europe. Some Danish importers also see a membership of the European Spice Association (ESA)1, or ASTA, the
American Spice Trade Association, as an indicator of the foreign supplier’s professionalism and trustworthiness.
Therefore, if the foreign exporter of spices and herbs can refer to any of the above-mentioned factors this should
be communicated to the Danish importer targeted as it can heighten the possibility of getting the attention of the
importers. This type of communication effort will help the professional and qualified spice exporter to stand out
from the crowd.

If the foreign exporter is dealing with organic spices and herbs, the producer of organic products must be subject
to control from government authorities and hold the proper documentation and certification for being an organic
producer. For more information on rules and regulation, see also the internet site:
http://europa.eu.int/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&numdoc=31991R2092&
model=guichett as well as DIP’s Market Brief on Organic Foods.

Distribution
In Denmark, the market for spices is characterized by oligopoly with few dominant players holding the majority of
the market share. Danish importers of spices generally focus on supplying either the food industry and/or the
catering sector or supplying different types of retailers. Supply to the food industry and catering sector is mainly

1
ESA represents national associations within the European seasoning and spice trade whose membership are involved in the
processing, marketing, distribution and trading of herbs, spices and seasoning mixes. Full membership is open to European Countries
only. ESA members: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Turkey,
United Kingdom. Associated member: India.

Market Survey - Spices and Herbs April 2006 12

taken care of by 6-7 dominant Danish importers that hold approximately 90 percent of the total market share for
this segment whereas supply to the retail sector is dominated by 2-3 large Danish importers.

The large Danish importers of spices and herbs often have their own production facilities where the spices and
herbs are being cleaned, processed, grinded and packed before the final spice products are sent out to the end
users. Usually, spices are imported whole and ungrounded into Denmark. After importation the spices are cleaned
mechanically by the Danish importer in order to sort out pebbles and other impurities from the spices and
thereafter treated with some kind of specialised thermotherapy or high-pressure steam treatment in order to
eliminate bacteria and spores. Today, fumigation and irradiation are more seldom used to process spices and
herbs.

As explained above, spices and herbs are not always imported directly to Denmark from the countries of origin,
but imported through Germany, Sweden or the Netherlands, which are the three main destinations for spices and
herbs being imported into the EU markets. Being the hub for spices in the EU some Danish importers also choose
to source from these two countries or act as agents on the Danish market for German and/or Dutch importers.

Price and Mark-Ups

The price structure of spices or herbs naturally varies depending on the spices or herbs in question. The margins
charged by the different intermediaries in the trade are also influenced by different factors such as the current
and expected future harvest situation, the availability of the spice, the level of demand, the trend in prices etc.
Therefore, it is very difficult to state the exact margins for the different groups of spice importers, but the
following numbers can be given as a general and roughly estimated guideline on the mark-up added to the
purchasing price by each intermediary:

Agents: 2 – 5% Ö Importers/ processors: 30 – 60% Ö Retailers: 50 – 300%

Market Survey - Spices and Herbs April 2006 13

5. Commercial Practice

Due to the increasing use of the Internet, Danish importers of spices and herbs receive many offers on a daily
basis from foreign suppliers who wish to do business in Denmark. Therefore, a foreign exporter of spices and
herbs must be aware that a Danish importer can pick and choose among many uninvited offers from qualified
suppliers. The new supplier will often have to replace an already existing relationship with competent suppliers
and therefore, the first impression and the first contact is of great importance to the subsequent success of entry
into the Danish market.

Business Appointments
Danes work shorter hours than many other nationalities. The standard work week is 37 hours. Mandatory vacation
is five weeks. At least three weeks are taken during summer. School summer vacation is from around June 20 to
around August 8 and business is generally slow during this period with many executives out and some companies
closed. It is not advisable to schedule business meetings or other business activities in Denmark from late June to
early August, from December 20 - January 5, or in the week of Easter.

Danish business people can appear somewhat formal at first, but are likely to quickly show a more informal side of
themselves, just as the dress code sometimes may seem a little relaxed to a foreign business person. However,
they are likely to get down to business right away and are generally conservative and efficient in their approach to
business meetings. Handshakes are the accepted form of greeting. Danes shake hands both for greetings upon
arrival and departure from a meeting. Business entertaining is usually done at lunch, and more rarely at dinner in
a restaurant.

The following lists a number of key points worth studying when starting co-operation with a Danish partner:

Rules before Relations

In business, Danes put rules before relations and normally there is a clear distinction between personal and
professional relations. The Danes may not seem very interested in getting to know their trade partners personally,
but this does not mean that they are not interested in doing business with them.

Punctuality
Being punctual is not only regarded as a sign of respect but also of efficiency. Being late for an appointment is
regarded as lack of respect for the person you are meeting and his time. Danish businessmen will have little
understanding for the cultural variations on this subject. Punctuality in arriving at meetings will be looked upon as
an indicator of the punctuality of supplying the goods. Should a delay occur, it is important to give notice as soon
as possible.

Negotiating Business Terms

The Danish business partner is likely to be totally frank regarding what he expects from you and what he himself
can contribute with. It is important to be very precise when negotiating terms. Exporters should not accept any
terms that they are unable to fulfil. “No”, is a perfectly acceptable word in Denmark and nobody will be offended
by an explanation that delivery according to a certain specification is not possible as long as the specification has
not been agreed on. It is of paramount importance, however, not to make promises that cannot be kept 100%.

The Contract
Danes like written contracts. In some cultures a contract is a letter of intent, and the business partner is satisfied
if the exporter does his best to live up to the terms. This is not the case in Denmark where the business contract
is considered irrevocable and a partner will expect the contract to be fulfilled to the letter. If the trade partner
does not comply, he will be considered unprofessional or even dishonest. Do not sign a contract unless you are
100% sure that you can live up to all terms for as long as the contract stands.

Gifts
It is not common for business associates to give each other gifts. In Denmark bribery is an illegal form on
conduct. Therefore, in order not to embarrass your Danish business partner the best choice is to only present gifts
of low value.

Market Survey - Spices and Herbs April 2006 14

Contacting the Importer
First step is to send a business offer containing a precise product description along with brochures or perhaps
samples. Price should also be introduced as close to the best price possible. It is of vital importance that contact
details such as phone and fax number and e-mail address are stated correctly as inaccurate information will give a
bad first impression and might cause the importer to immediately loose interest in the product. Some importers
also stress that fast communication through e-mails is important as well as having an English-speaking staff.

It should never be assumed that the Danish importer will follow up on the business offer – the follow up is always
expected to be made by the exporter. A follow up call will give an idea of the need and purchase pattern of the
Danish importer, which can help evaluate the compatibility of the product.

Meeting with the Importer

Personal contact established through a business visit is also important sometimes. Danish importers travel widely
and most likely will also at some point in time want to visit the supplier for an inspection of the location and
facilities.

If the product is of relevance to the importer’s line of business, it will normally not be a problem to set up
meetings directly. Danish business people are generally result oriented and well versed within their particular field.
Therefore, it is advisable to be well prepared and ready to respond to very direct questions about quality, prices,
quantities and deliveries.

It is often said that Danes are informal, which is true to some extent. The informality does not, however, apply to
being careless in respecting appointments.

Delivery and Transport of Goods

Delivery
Reliability with respect to delivery is essential. Danish importers are operating on tight schedules and they will
expect the order to be complete, the quantities as agreed, and the delivery on time. An exporter’s ability to secure
safe and reliable deliveries is increasingly becoming a competitive advantage equal in importance to price. The
future of a new business relationship will therefore depend on the exporter’s ability to state a realistic delivery
time that can be kept. It is therefore necessary that the exporter states the realistic delivery time right from the
very beginning of a new co-operation. The tolerance towards delay and products, which do not live up to
agreements, is very limited and may lead to orders being cancelled.

Transport of Goods
The transport of goods from developing countries to Denmark represents a considerable cost. The cost and the
importance of safe and reliable transport make research necessary in order to find the best possible means of
transport. In order to specify who pays for which parts of the transport, and where the liability transfers from the
one party to the other, the Danish importers will normally refer to the Incoterms.

The Incoterms 2000 form an internationally recognized tool, developed by the International Chamber of
Commerce, clarifying the responsibility for arranging and paying for the transport and insurance. A good
descriptive presentation of the various forms and definitions can be found on
www.iccwbo.org/index_incoterms.asp.

The chosen type of Incoterm will be reflected in the export price. Often the importer will be responsible for paying
the transport and, if new to the market, may want information and advice from the supplier on relevant options.
In most cases it is recommended for all but the most experienced exporters to work through a forwarding agent
or shipping agency when initialising export to Denmark.

Ethics and Code of Conduct

Over the last decade, consumers in Denmark have increasingly paid more attention to the ethical conduct of
business, which has given rise to the term “political consumers.”

A code of conduct is a voluntary written policy committing the supplier to social and ethical business operations.
Companies often base their social codes of conduct on the conventions of the ILO (International Labour
Organisation). A wide variety of social codes of conduct has been developed over the years. Many companies use
their codes as a means of promotion and marketing.

Market Survey - Spices and Herbs April 2006 15

The “political consumers” term implies that there is a strong tendency towards Danish consumers placing greater
demand on Danish importers and manufacturers. They must be able to guarantee that the products imported from
developing countries have not been subject to, for example child labour or has caused industrial pollution or
otherwise harmed the environment when manufactured. Therefore, by getting involved with Danish importers
many suppliers from developing countries will be asked to sign a contract or statement guaranteeing that the
production is carried out without violating the above mentioned issues.

Furthermore, bribery is almost non-existent in Denmark. Recent studies have shown that Denmark is at the
bottom of the list of countries in which bribery or corruption is found.

The Danish legal, regulatory and accounting systems for the business sector can be described as transparent and
consistent with EU directives.

Market Survey - Spices and Herbs April 2006 16

6. Legal Requirements, Customs Duty, Import Regulations and
Trade Agreements

Goods imported to Denmark are governed by a complex set of EU and national directives, laws, regulations and
standards. The aim is to ensure consumer safety, to protect the environment and limit other risk factors. The
importer is responsible for compliance with the legislation, and local authorities in Denmark will check compliance.
Consequently, the importer will require from suppliers that products meet requirements.

The European Spice Association has in its “Quality Minima Document” listed a number of legal requirements for
spices and herbs in the EU. These requirements are listed together with other important requirements in the
below. See also www.esa-spices.org/

The list of requirements is not all inclusive and requirements should always be checked by the exporter – for
example with the importer.

Product Requirements
In the EU, legislation is passed in the form of Directives. Denmark has implemented the directives in its national
legislation as laws or regulations. EU Regulations can among others be found by searching the EU Official Journals
using the below OJ references. See http://europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en for journals from
1998 to present and http://europa.eu.int/eur-lex/lex/RECH_reference_pub.do for other years.

For many products, the specific requirements are included in European standards. In order to check the
requirements regarding your product you may need to consult the WTO Enquiry Point for Technical Barriers to
Trade Agreement (TBT) which is situated at Dansk Standard, the Danish national standards body (www.ds.dk).
Here you can also buy technical standards for your product group.

General Regulations
Two types of overall EU regulations are important to bear in mind when exporting herbs and spices to Denmark:

• Regulation 178/2002/EC (OJ L-031 01/02/2002) known as the General Food Law, adopted in 2002, deals with
the general requirements and principles of food legislation in the EU. The regulation came into force in
January 2005. It addresses amongst others, risk analysis, precautionary principle, food safety requirements,
traceability. Furthermore, in view of fulfilling food and feed safety conditions in the EU, specifically in relation
with requirements for traceability, importers are required to keep documentation available that can identify
the exporter in the country of origin.
See also http://www.europa.eu.int/comm/food/food/foodlaw/principles/index_en.htm

• The general rules of hygiene for foodstuffs and procedures for verification of compliance with these rules are
laid down in Directive 93/43/EC (OJ L-175 19/07/1993). All imported foodstuffs must comply with these rules
so that they ensure their safety and wholesomeness. These measures cover preparation, processing,
manufacture, packaging, storage, transport, distribution, handling, sale and supply of foodstuffs.

Health inspection in Denmark has to be applied for by the importer or his representative prior to the importation,
accompanied by an enclosure of the mandatory certificates related to the goods in question. In addition to the
verification of the documents, the authorities at the customs points of entry will inspect the products upon arrival
by identity and/or physical checks. Sampling procedures for quality analyses can be carried out at designated
control laboratories. Additional checks can be executed at all stages of the supply chain. If the results of the
inspection procedures have been proven to be favourable for the importation of the goods, the commodities can
be released for free circulation.

It is the responsibility of the exporter to provide the importer with relevant information and to ensure that the
products live up to appropriate standards. The importer will inform the exporter about the information needed.

In the absence of European legislation Danish food legislation is applicable.

Contaminants in Foodstuffs
As spices and herbs are primarily added to food products in order to influence taste, strict rules and regulations
are laid down with regard to the handling and condition of spices and herbs in order to avoid contamination of the
food products to which spices and herbs are added.

Market Survey - Spices and Herbs April 2006 17

In general, the admissible levels of pesticides and herbicides allowed in products are strict and different means of
severe testing procedures are carried out in order to detect microbiological contamination. The EU has set
standards for the maximum level of different toxins being present in spices (such as aflatoxin and ochratoxin), and
strict control is carried out in order to ensure the absence of salmonella in the spices and herbs imported into the
EU.

For aflatoxins EU legislation covers only the spices Capsicum ssp (dried fruits including chilies, chili powder,
cayenne and paprika), Piper ssp. (fruits thereof including white and black pepper), Myristica fragrans (nutmeg),
Zingiber officinale (ginger), Curcuma longa (turmeric). For all other spices Danish (aflatoxin) legislation is
applicable.

The following regulations are of specific importance for the producer:

• Commission Regulation 466/2001/EC of 8 March 2001 setting maximum levels for certain contaminants in
foodstuffs (O.J. L 77, 16. March 2001) amended by Commission Regulation 472/2002/EC of 12 March 2002
(O.J. L 75, 16. March 2002). This regulation covers amongst others, mycotoxins and heavy metals such as
cadmium, lead, and mercury.

Additives
Regarding additives, directives of specific importance for the producer are:

• Directive 94/36/EC of 30 June 1994 on colours for use in foodstuffs (O.J. L 23, 10.9.94).

• Directive 95/2/EC of 20 February 1995 on food additives other than colours and sweeteners (O.J. L 61,
18.3.95).

Radiation
Irradiation of spices and herbs are allowed in order to sterilise the products, but in case that this practise is used,
spices and herbs must be especially marked, showing that these products have been treated by irradiation or
ionisation.

The following requirements should be taken into account by the producer:

• Directive 1999/2/EC of 22 February 1999 on the approximation of the laws of the Member States concerning
foods and food ingredients treated with ionizing radiation (O.J. L 66, 13.3.1999).

• Directive 1999/3/EC of 22 February 1999 on the establishment of a Community list of foods and food
ingredients treated with ionizing radiation (O.J. L 66, 13.3.1999).

• Communication from the Commission on foods and food ingredients authorized for treatment with ionising
radiation in the Community (O.J. C 241, 29.8.2001).

• List of Member States’ authorisations of food and food ingredients which may be treated with ionizing
radiation (O.J. C 56, 11.3.2003).

• Commission Decision of 23 October 2002 adopting the list of approved facilities in third countries for the
irradiation of foods (O.J. L 287, 25.10.2002).

• Commission Decision of 7 October 2004 amending Decision of 23 October 2002 adopting the list of approved
facilities in third countries for the irradiation of foods (O.J. L 314, 13.10.2004).

Genetically Manipulated Products

If spices and herbs are genetically manipulated, EU authorities must approve these products before they can be
sold on the EU markets, including the Danish market. Moreover, genetically manipulated spices and herbs must be
especially marked, informing consumers that the products are genetically manipulated.

Market Survey - Spices and Herbs April 2006 18

Packaging Requirements
The objective of packaging is to make sure that the product you have produced arrives safely and undamaged at
its destination. However, a number of legal requirements are connected to packaging. The requirements depend
on the nature of the goods and whether the product is destined for industrial use or direct consumer use.

A number of EU requirements have been developed to protect consumer health and safety and aims at providing
consumers with relevant information about the products. Among the EU requirements there are limits for the
presence of heavy metals (lead, cadmium, mercury and hexavalent chromium) in packaging material.

Packaging includes all products made of any materials of any nature to be used for the containment, protection,
handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the
user or the consumer.

The EU Directive for packaging and packaging waste 94/62/EC was adopted in 1994. Packaging marketed within
the EU must comply with the general requirements which aim at protecting the environment as well as with the
specific provisions designed to prevent any risk to the health of consumers. To read more about the Directive
which has been amended by commission decision 1999/177/EC and 2001/171/EC see
http://www.newapproach.org/Directives/DirectiveList.asp

Specific provisions related to package sizing are established in Directives 75/106/EC and 80/232/EC.

Labelling
All foodstuffs marketed in the European Union must comply with EU labelling rules, which aim at ensuring that
consumers get all the essential information to make an informed choice while purchasing their foodstuffs.

With regard to the labelling of the products when exporting herbs and spices to Denmark, it should always be
possible to trace the herbs and spices back to the foreign producer and exporter of the products. As a minimum,
labels should therefore contain information about the country of origin, the date, month, year of packaging as well
as the name of the producer and exporter of the herbs and spices.

Labels of foodstuffs according to the general rules laid down by Council Directive 2000/13/EC (OJ L-109
06/05/2000) must contain the following particulars2:
• The name under which the product is sold. No trademark, brand name or fancy name may substitute the
generic name but rather may be used in addition. Particulars as to the physical condition of the foodstuff
or the specific treatment it has undergone (powdered, freeze-dried, deep-frozen, concentrated, smoked,
irradiated or treated with ionizing radiation) must be included in cases where leaving out such information
may confuse the purchaser.
• The list of ingredients, preceded by the word "Ingredients", must show all ingredients (including
additives) in descending order of weight as recorded at the time of their use in the manufacture and
designated by their specific name. In the case of those products that may contain ingredients liable to
cause allergies or intolerances a clear indication should be given on the label by the word “contains”
followed by the name of the ingredient. However, this indication will not be necessary provided the
specific name is included in the list of ingredients.
• The net quantity of pre-packaged foodstuffs in metric units (litre, centilitre, millilitre) for liquids and
(kilogram, gram) for non-liquids.
• The date of minimum durability consisting of day, month and year in that order and preceded by the
words "best before" or "best before end" or the "use by" date for highly perishable goods.
• Any special conditions for keeping or use.
• The name or business name and address of the manufacturer, packager or importer established in the
EU.
• Place of origin or provenance.
• Instructions of use, where appropriate.
• Lot marking on pre-packaged foodstuffs with the marking preceded by the letter "L".

Information intended for the final consumer must be inscribed in Danish on the label and on the product package,
if applicable. In addition, the product information may be provided on the label in other languages, too.

In order to facilitate trade it has been decided that, at stages prior to sale to the ultimate consumer, only
information on the essential elements (the name under which it is sold, the date of durability or use-by-date and

2 See also – see http://europa.eu.int/eur-lex/en/consleg/pdf/2000/en_2000L0013_do_001.pdf

Market Survey - Spices and Herbs April 2006 19

the name of manufacturer) should appear on the outer packaging and the above mandatory particulars that must
appear on a pre-packaged foodstuff need appear only on commercial documents.

Provisions in relation with the labelling of certain products are established in specific EU legislation. User-friendly
fact sheets which summarise EU legislation are available in the ScadPlus website (http://europa.eu.int/scadplus/),
see among others food safety.

Surveillance and inspection of the conformity of foodstuffs to the information provided on their labels are to be
carried out at different stages of the supply chain which, in case of imported products, ranges from customs
clearance to retail outlets. Checks are also carried out at the premises of companies dealing in foodstuffs.

The requirements regarding packaging and labelling should always be agreed upon and specified in the contract
between the exporter and the Danish importer in order to meet expectations and to comply with EU regulations.
Usually, the importer informs the foreign supplier of the requirements to packaging and labelling.

Organic Production
A number of specific rules and regulations are attached to organically produced food. An important regulation is
the Regulation 2092/91/EC of 24 June 1991 on organic production of agricultural products and indications
referring thereto on agricultural products and foodstuffs (O.J. L 198, 22. 7. 1991).

For more information please see DIP’s Market Brief on organic foods.

For an elaboration of the different types of regulations, the following internet sites could be helpful:
• For information on EU directives and regulations:
http://europa.eu.int/eur-lex/en/search/index.html
• For information on different aspects of EU food safety regulations:
http://europa.eu.int/comm/food/index_en.html

See also http://europa.eu.int/comm/food/international/trade/interpretation_imports.pdf

Custom Duty and Import Regulations

Rates of Duty
The rates for import duties as of January 2006 are shown in table 17. These rates of duty cover the sub-
categories within the CN-numbers 0904 to 0910 and apply to all countries, which are not subject to preferential
trade.

Table 17 – Rate of Duty, January 2006

CN-Number Rate of Duty, %

Pepper 0904 11 0
Pepper, ground 0904 12 4
Sweet peppers 0904 20 10 9.6
Dried capsicum 0904 20 30 0
Paprika powder 0904 20 90 5
Vanilla 0905 6
Cinnamon 0906 0
Cloves 0907 8
Nutmeg 0908 10 10 0
Mace 0908 10 20 0
Cardamom 0908 30 00 0
Anis / badian seeds 0909 10 0
Coriander seeds 0909 20 0
Cumin seeds 0909 30 0
Caraway seeds 0909 40 0
Fennel seeds, juniper 0909 50 0
Ginger 0910 10 0
Saffron, whole 0910 20 10 0
Saffron, ground 0910 20 90 8.5
Turmeric 0910 30 0
Wild thyme 0910 40 11 0
Other thyme 0910 40 13 7

Market Survey - Spices and Herbs April 2006 20

 Thyme, ground 0910 40 19 8.5
Bay leaves 0910 40 90 7
Curry 0910 50 0
Mixtures, whole 0910 91 10 0
Mixtures, ground 0910 91 90 12.5
Other spices, fenugreek 0910 99 10 0
Other spices, whole 0910 99 91 0
Other spices, ground 0910 99 99 12.5
Source: http://export-help.cec.eu.int/

However, special rates of duty apply to countries under the GSP scheme. Countries, which are classified as least
developed countries as well as countries included in the special program to fight narcotics, all enjoy duty free
entry of their spices and herbs to the European market. For other developing countries it is possible to obtain a
reduction of the normal duty rate. Please refer to Appendix 3 for a list of countries eligible for preferential
treatment. The section on import tariffs at http://export-help.cec.eu.int/ provides information to take full
advantage of the EU’s preferential trade regimes. Here you can get information on import tariffs related directly to
your product and country.

In the case of Brazil, the above-mentioned rules do not apply with regards to spices as Brazil does not benefit
from the preferential treatment, but has to pay duty at full or reduced rate. See COUNCIL REGULATION (EC) No
980/2005 of 27 June 2005 applying a scheme of generalised tariff preferences at
http://europa.eu.int/comm/trade/issues/global/gsp/legis/index_en.htm

It must be stressed, though, that rules and regulations regarding duty are sometimes changed. It is therefore
advisable always to check the rate of duty in the individual case, based on the product and the country of origin.
GSP duty rates should, for example, be checked with your local customs authorities. Another source of information
is the above-mentioned helpdesk homepage http://export-help.cec.eu.int/.

Import Quotas
Currently, there are no quotas on spices and herbs imported to Denmark from Danida’s programme countries.
However, as is the case concerning import duty rates, it is of equal importance that the foreign exporter stays
updated with regards to the latest changes in import quota regulations.

It is the specific CN number (8 digits) regarding spices and herbs, which determines if the particular spice or herb
product is subject to import quotas. Therefore, import quotas should always be checked, for example with your
local customs authorities.

The Commission shall publish a notice announcing the opening of quotas in the Official Journal of the European
Communities, setting out the allocation method chosen, the conditions to be met by licence applications, time
limits for submitting them and a list of the competent national authorities to which they must be sent.
http://europa.eu.int/scadplus/leg/en/s05020.htm

Import and Export Licenses

Import or export licences authorise the import or export of products which are subject to quotas. Licences are
issued immediately by the Member States when the "first come, first served" principle is used. In other cases, they
are issued within ten days of notification of the Community decision indicating the quantities to be distributed.

They are valid throughout the Community, except in situations where a quota is limited to one or more regions of
the Community, in which case these licences are only valid in the Member State(s) of the region(s) in question.
These licences are valid for four months.

See also http://europa.eu.int/scadplus/leg/en/s05020.htm

Value-Added Tax (VAT)

Value Added Tax (VAT) is levied on practically all products in Denmark, imported as well as domestic. The Danish
Value-Added Tax (VAT) constitutes 25 percent (2006) and is among the highest rates within the EU. The 25
percent VAT is levied on all sales, regardless of product type, country of origin etc. For further information on VAT
and duties in Denmark for specific products see http://export-help.cec.eu.int.

Trade Agreements
As a member of the EU, Denmark follows the rules and regulations and applies the Common Customs tariff of the
EU.

Market Survey - Spices and Herbs April 2006 21

The European Union
The EU economy is already one of the most open to trade: the EU average level of customs duty protection
amounts to around 4% on industrial goods. EU tariffs for industrial products are among the lowest in the world.
Moreover imports from many of the EU's suppliers of industrial products enter the Community at preferential rates
under the terms of bilateral agreements, the Generalised System of Preference (GSP) or tariff suspension regimes.

The EU has the most open regime vis-à-vis Sub-Saharan Africa and the other African, Caribbean and Pacific
countries: in 2003 African Caribbean and Pacific countries paid full duty on only 3% of their exports to the EU. The
remaining 97% entered at zero duty or at reduced rates of duty. See more on
http://europa.eu.int/comm/trade/issues/sectoral/industry/tntb/index_en.htm

For an overview of import tariffs, requirements and taxes related directly to your product please see http://export-
help.cec.eu.int/

The Generalised System of Preferences (GSP)

The EU GSP is the system of preferential trading arrangements through which the EU extends preferential access
to its markets to developing countries and economies in transition.

The GSP allows manufactured products and some agricultural products exported by developing countries access to
the Community market with total or partial exemption from customs duties.

On 21 December 2005, the EU granted important preferences (duty and quota-free access) to an additional 15
vulnerable developing countries that have implemented sustainable development and good governance policies
under the "GSP+" incentive. The GSP+ benefits have been granted to the 5 Andean countries (Bolivia, Columbia,
Ecuador, Peru and Venezuela), 6 Central America countries (Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama), Moldova, Georgia, Mongolia and Sri Lanka.

Countries under the special program to fight narcotics also enjoy duty free access to the EU markets for most
goods. (Please refer to Appendix 3)

Moreover, the EU has also entered into separate agreements with different groups of countries in order for them
to enjoy duty-free access for selected products into the EU, such as the ACP (African, Caribbean and Pacific)
countries covered by the Cotonou Agreement and the ASEAN (Association of South East Asian Nations) countries
covered by the TREATI framework.

Everything but Arms Initiative (EBA)

In February 2001, the Council of the European Union adopted the so-called Everything But Arms (EBA) Regulation
(Regulation (EC) 416/2001), granting duty-free access to imports of all products from least developed countries
(LDC) without any quantitative restrictions, except to arms and munitions. Only imports rice and sugar are not
fully liberalised immediately. Duties on those products will be gradually reduced until duty free access will be
granted for sugar in July 2009 and for rice in September 2009. In the meantime, there will be duty free tariff
quotas for rice and sugar. These quotas will increase annually.

The EBA Regulation foresees that the special arrangements for LDCs should be maintained for an unlimited period
of time and not be subject to the periodic renewal of the Community's scheme of generalised preferences.

Preferences under the EBA apply to imports into the customs territory of the EU, of products from the LDCs. The
products have to originate in the beneficiary country. To be considered as originating in the exporting country,
products have to meet certain requirements which are laid down in the rules of origin (See section “Rules of
Origin” below).

See Appendix 2 for additional trade agreements.

Classification of Goods
Correct and accurate classification of goods is of utmost importance for obtaining the preferences. All products
that are being traded globally are classified according to an international classification system called the
Harmonized Commodity Description and Coding System, normally referred to as the Harmonized System, or
simply the HS. When the exporter knows the correct HS code he can then check the product coverage in the
relevant agreement or arrangement to see whether the product is eligible for a preference or not. You can find
help on http://export-help.cec.eu.int. Customs duties are often applied on a percentage basis with reference to
the customs value of the goods.

Market Survey - Spices and Herbs April 2006 22

If a country or product is not covered by any free-trade agreement or other preferential arrangements, the
importer has to pay the normal customs duty applicable for the product. If more than one agreement or
arrangement is applicable, the exporter is free to choose the one that is most favourable to him.

Rules of Origin
Rules of Origin are a set of rules to determine in which country the products have originated. To benefit from
lower customs duties, the export product has to originate in a country covered by a free-trade agreement or a
preferential arrangement. A product is generally said to confer origin in a country if it is wholly obtained or
sufficiently processed in that country.

A product can contain elements from other countries than the country where the goods are produced. In such
cases, the rules of origin are applied to determine how much of the materials can come from other countries, or
how much the product must be processed in order to allow the product to have originated status in the producing
country.

Countries belonging to certain groups: ASEAN (South East Asia), SAARC (South Asia) and the Andean Community
(in South America) have the right to use materials from other countries in their group in the production without
losing the status as country of origin. This is called cumulation. Exporters from LDCs to the EU can in some cases
be granted exemption from the rules of origin.

The concept of wholly obtained often refers to an agricultural product grown in the country and not further
processed. For manufactured goods, with inputs from other countries, it is necessary to check the so-called list
rules which are available for each product (HS code) and to determine whether the product has undergone
sufficient processing. It is essential that the exporter makes sure that the product meets the rules of origin, in
order to benefit from preferential treatment. If the rules of origin are not met, the importer has to pay the normal
duty. It is advisable to check details on the websites – see among others http://export-help.cec.eu.int.

Proof of Origin
To prove that the rules of origin are fulfilled, the exporter has to provide the necessary documentation. A GSP
proof of origin must be issued by the exporter in the developing country and certified by the customs authorities
of the exporting country. The following documents of origin are valid:

• Certificate of origin Form A

• Invoice declaration

Certificates of origin Form A are issued by the EU-recognised competent governmental authorities of the exporting
country (usually ministerial bodies) if they find that the exports meet the requirements of the rules of origin.
The internet address to Form A is included among the websites listed the end of the brief. Instructions on how to
complete the certificate can be found on http://export-help.cec.eu.int The invoice declaration is a standard text
(also to be found on the websites), which is made on an invoice (or any other commercial document) by any
exporter. At the time of writing, this is valid only for shipments not exceeding a total value of EUR 6,000 in the
EU.

The exporter should make sure that the information given to certify the origin of the goods is accurate and that
the certificate or the invoice declaration is filled in correctly. Also check that the required authorisation, for
example a stamp, has been obtained.

If a product contains material originating from a country within the European Union, a EUR 1 certificate proving
the origin of the goods must be included in the documentation.

The importer must request the relevant preferential tariff treatment at the time of customs clearance. There is no
automatic consideration. GSP preferential rates of duty applied must always be documented by a valid proof of
origin issued in the GSP country concerned.

Market Survey - Spices and Herbs April 2006 23

7. Trade Fairs

Participation in trade fairs can provide valuable insight into overseas markets, product trends and competition and
can serve as an important marketing communications tool for exporters. Furthermore, trade fairs are important in
order to create contact to future business partners as the main actors in the sector will be present at the leading
fairs. The presence of other people in your trade is one of the major advantages of specialised trade fairs as it
gives you a chance to examine the products of your competitors and meet potential customers.

You must consider trade fairs in relation to the total marketing mix and any decision to exhibit should therefore be
based on careful analysis. Before exhibiting it is often advisable to participate in the fair as a visitor. A well-
prepared and properly executed visit to a trade fair can constitute a very cost-effective market research.

If you choose to exhibit at a trade fair it is important to know in advance who the target groups of the fair are. In
Denmark, exhibitors are often wholesalers or importers and the target group is the retailers. When this is the case
you might gain more by participating as a visitor and approach suitable exhibiting importers with written/printed
material about your company and products.

If you choose to exhibit, you should contact relevant importers prior to the trade fair in order to set up meetings
during the fair. Some of the relevant importers will be exhibiting themselves. By looking at the list of exhibiting
companies (list can be downloaded via the organiser’s homepages – see below), you will get a fair impression of
which companies to contact in order to set up meetings. Some of these might not have time for meetings during
the fair if they are exhibiting themselves, so it is important to allow yourself to stay a few more days after the fair
in order to conduct the meetings.

Trade Fairs in Denmark and the EU relevant to the spices and herbs industry:

International Food Fair of Scandinavia FoodExpo

This fair takes place every second year in February/March. The This fair takes place every second year in March. The next
next fair is to take place in 2007. fair is to take place in 2008.

Tema Messecenter Herning

Bo Rasmussen Vardevej 1
c/o Bella Center A/S 7400 Herning
Center Boulevard 5 Denmark
DK – 2300 Copenhagen S Phone : + 45 99 26 99 26
Denmark www.foodexpo.dk
Phone: +45 32 47 21 34
E-mail: bo.rasmussen@bellacenter.dk
www.tema05.dk

Alimentaria Food Ingredients Europe

Ronda Universidad 14, 4 A Parc d'Expositions PARIS-NORD Villepinte
08007 Barcelona BP 60004
Spain 95970 Roissy - CDG Cedex
Phone: +34 93 4520722 Paris
Fax: +34 93 4516637 France
www.alimentaria.com E-mail: fi@cmpinformation.com
http://europe2005.fi-events.com

SIAL Anuga
39, Rue de la Bienfaisence Messeplatz 1
75008 Paris D-5000 Köln, Germany
France Phone: +49 221 821-0
Phone: +33 1 4289 4687 Fax: +49 221 821-3410
Fax: +33 1 4289 4694 info@koelnmesse.de
www.sial.fr www.kolnmesse.de

Market Survey - Spices and Herbs April 2006 24

8. Important Addresses

Organisations, institutions, ministries in Denmark:

DIPP– The Danish Import Promotion Programme

Boersen
DK –1217 Copenhagen K
Phone: +45 72 25 50 00
Fax: +45 72 25 50 01
E-mail: dipp@htsi.dk
www.dipp.eu

Danish Ministry of Foreign Affairs

Asiatisk Plads 2
DK- 1448 Copenhagen K
Phone: +45 33 92 00 00
Fax: +45 33 12 37 78
E-mail: um@um.dk
www.um.dk

Statistics of Denmark
Sejrøgade 11
DK - 2100 Copenhagen Ø
Phone: +45 39 17 39 17,
Fax: +45 39 17 39 99,
E-mail: dst@dst.dk
http://www.statbank.dk

Relevant international organisations:

International Standardisation Institute (ISO)

E-mail: central@iso.org
Internet: www.iso.org

SGS European Quality Certification Institute E.E.S.V.

E-mail: inquiries@sgs.com
Internet: www.sgs.com

Market Survey - Spices and Herbs April 2006 25

9. Useful Internet Sites

Government of Denmark
www.denmark.dk

Invest in Denmark
www.investindk.dk

EU Export Helpdesk for Developing Countries

http://export-help.cec.eu.int/thdapp/index.htm

Market Acces Database

Database of European Commission on import regulations, duties and trade barriers.
http://mkaccdb.eu.int

Directorate General Taxation and Customs of the European Commission

http://europa.eu.int/comm/taxation_customs/customs/customs_duties/rules_origin/index_en.htm
Includes information about rules of origin and documentation in the EU

http://europa.eu.int/comm/taxation_customs/resources/documents/guide-annex_4-en.pdf
Certificate of origin Form A

The World Trade Organisation (WTO)

http://www.wto.org

The Economist Intelligence Unit

www.economist.com

Tscentral
Overview of international trade fairs worldwide
http://www.tscentral.com

The American Spice Trade Association

www.astaspice.org

European Spice Association

www.esa-spices.org

Market Survey - Spices and Herbs April 2006 26

Appendix 1 – Distribution of Private Consumption
Distribution of private consumption (%) by level of income (Annual)

Below 150,000 DKK 2000/2001 2003/2004

Food 12.4 12.1

Beverage and Tobacco 5.8 5.7
Clothing 3.9 4.6
Housing 29.9 28.7
Electricity and Heating 10.1 10.4
Furniture and Domestic Goods 4.2 4.6
Healthcare 3.7 3.0
Transportation and Communication 9.2 9.6
Culture and Leisure 10.2 10.3
Other Goods and Services 10.6 11

150,000 to 299,999 DKK 2000/2001 2003/2004

Food 11.2 11.3

Beverage and Tobacco 5.7 5.5
Clothing 4.8 4.2
Housing 26.6 27.1
Electricity and Heating 9.0 8.8
Furniture and Domestic Goods 5.0 5.3
Healthcare 2.5 3.2
Transportation and Communication 12.6 12.8
Culture and Leisure 10.6 10.7
Other Goods and Services 12.1 11.0

300,000 to 499,999 DKK 2000/2001 2003/2004

Food 11.4 11.3

Beverage and Tobacco 5.2 4.9
Clothing 5.1 4.8
Housing 22.3 22.4
Electricity and Heating 7.6 7.5
Furniture and Domestic Goods 6.4 5.5
Healthcare 2.5 2.9
Transportation and Communication 14.9 16.3
Culture and Leisure 12.2 11.5
Other Goods and Services 12.5 12.9

500,000 to 799,999 DKK 2000/2001 2003/2004

Food 11.5 11.2

Beverage and Tobacco 4.9 4.5
Clothing 5.2 4.8
Housing 20.4 19.9
Electricity and Heating 6.7 7.1
Furniture and Domestic Goods 7.2 6.9
Healthcare 2.3 2.3
Transportation and Communication 17.5 18.3
Culture and Leisure 10.6 11.3
Other Goods and Services 13.8 13.6

Above 800,000 DKK 2000/2001 2003/2004

Food 10.3 10.4

Beverage and Tobacco 4.2 4.2
Clothing 6.2 6.0
Housing 19.7 20.9
Electricity and Heating 5.8 6.4
Furniture and Domestic Goods 6.8 7.0
Healthcare 1.7 1.9
Transportation and Communication 18.8 18.2
Culture and Leisure 12.0 10.7
Other Goods and Services 14.6 14.3

Market Survey - Spices and Herbs April 2006 27

Appendix 2 – Additional Trade Agreements
Below are listed additional trade agreements not listed in Chapter 5.

Cotonou Agreement
Relations between the EU and the ACP States are today governed by the ACP-EU Partnership Agreement, signed
in Cotonou on 23 June 2000 and concluded for a period of 20 years.

At present, 78 ACP countries are signatories to the Cotonou Agreement: 48 African states, covering all of sub-
Saharan Africa, 15 states in the Caribbean and 15 states in the Pacific (the Democratic Republic of East Timor
acceded to Cotonou Agreement in May 2003; ratification by East Timor is still pending). Out of the 50 least
developed countries (also covered by the EU's Everything But Arms initiative of February 2001), 41 are ACP
countries.

The objective of the Agreement is to promote and expedite the economic, cultural and social development of the
ACP States, with a view to contributing to peace and security and to promoting a stable and democratic political
environment. http://europa.eu.int/comm/development/body/cotonou/agreement_en.htm

EU-ASEAN Bilateral Trade Relations

The ASEAN encompasses 10 South East Asian countries (Brunei Darussalam, Cambodia, Indonesia, Laos,
Malaysia, Burma/Myanmar, Philippines, Singapore, Thailand and Vietnam).

In 2003, EU-ASEAN trade represented 5.8% of total EU trade, and the enlarged EU is currently ASEAN's 3rd
largest trading partner, accounting for 14% of ASEAN trade. Significantly, 15% of ASEAN exports are destined for
the EU, which makes it ASEAN's 2nd largest export market after the US.

TREATI is a framework for dialogue and regulatory co-operation developed to enhance EU trade relations with
ASEAN. The initiative was officially launched as a key component of the Commission's Communication on “A New
Partnership with South East Asia” in July 2003. The priority areas for co-operation under TREATI are closely linked
to ASEAN's own drive for economic integration and comprise sanitary and phytosanitary standards in agro-food
and fisheries products, industrial product standards and technical barriers to trade, and forestry and wood-based
products.

http://europa.eu.int/comm/trade/issues/bilateral/regions/asem/index_en.htm

World Trade Organisation (WTO)

The World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global
level. The WTO Agreements provide the legal ground-rules for international commerce. They are essentially
contracts, binding governments to keep their trade policies within agreed limits.

The General Agreement on Tariffs and Trade (GATT, which deals with trade in goods) has a special section (Part
4) on Trade and Development which includes provisions on the concept of non-reciprocity in trade negotiations
between developed and developing countries — when developed countries grant trade concessions to developing
countries they should not expect the developing countries to make matching offers in return.

Binding tariffs, and applying them equally to all trading partners (most-favoured-nation treatment) are key to the
smooth flow of trade in goods. The WTO agreements uphold the principles, but they also allow exceptions — in
some circumstances. Three of these issues are:

• actions taken against dumping (selling at an unfairly low price)

• subsidies and special “countervailing” duties to offset the subsidies
• emergency measures to limit imports temporarily, designed to “safeguard” domestic industries

Anti-Dumping Actions
If a company exports a product at a price lower than the price it normally charges on its own home market, it is
said to be “dumping” the product.

GATT (Article 6) allows countries to take action against dumping. The Anti-Dumping Agreement clarifies and
expands Article 6, and the two operate together. They allow countries to act in a way that would normally break

Market Survey - Spices and Herbs April 2006 28

the GATT principles of binding a tariff and not discriminating between trading partners — typically anti-dumping
action means charging extra import duty on the particular product from the particular exporting country in order
to bring its price closer to the “normal value” or to remove the injury to domestic industry in the importing
country.

Subsidies and Countervailing Measures

This agreement says a country can use the WTO’s dispute settlement procedure to seek the withdrawal of the
subsidy or the removal of its adverse effects. Or the country can launch its own investigation and ultimately
charge extra duty (known as “countervailing duty”) on subsidized imports that are found to be hurting domestic
producers.

Safeguards
A WTO member may restrict imports of a product temporarily (take “safeguard” actions) if its domestic industry is
injured or threatened with injury caused by a surge in imports. Here, the injury has to be serious.

In principle, safeguard measures cannot be targeted at imports from a particular country. However, the
agreement does describe how quotas can be allocated among supplying countries, including in the exceptional
circumstance where imports from certain countries have increased disproportionately quickly. A safeguard
measure should not last more than four years, although this can be extended up to eight years, subject to a
determination by competent national authorities that the measure is needed and that there is evidence that the
industry is adjusting. Measures imposed for more than a year must be progressively liberalized.

When a country restricts imports in order to safeguard its domestic producers, in principle it must give something
in return. The agreement says the exporting country (or exporting countries) can seek compensation through
consultations. If no agreement is reached the exporting country can retaliate by taking equivalent action.

See Appendix 4 for a list of WTO Member countries

http://www.wto.org

Market Survey - Spices and Herbs April 2006 29

Appendix 3 – Classification of Countries

Preferential Trade Agreements

Classification Country
Least Developed Countries Afghanistan, Angola, Bangladesh, Burkina Faso, Burundi, Benin, Bhutan, Chad, The
Democratic Republic of Congo, The Republic of Central Africa, Cap Verde, Djibouti,
Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Cambodia, Kiribati, Comoro,
Laos, Liberia, Madagascar, Myanmar*, Mongolia, Montserrat, Maldives, Malawi,
Mozambique, Niger, Nepal, Rwanda, Solomon Islands, Sierra Leone, Sudan, Senegal,
Somalia, São Tomé and Príncipe, Togo, Tuvalu, Tanzania, Uganda, Vanuatu, Samoa,
Yemen, Zambia
Other Developing Countries Albania, Algeria, Antigua and Barbuda, Argentina, Armenia, Azerbaijan, Bahrain,
Barbados, Belize, Bolivia, Bosnia-Herzegovina, Botswana, Brazil, Cameroon, Chile,
China, Colombia, Cook Islands, Costa Rica, Côtes D’Ivoire, Croatia, Cuba, Dominica,
The Dominican Republic, Ecuador, Egypt, El Salvador, Fiji, Gabon, Ghana, Georgia,
Grenada, Guatemala, Guyana, Haiti, Honduras, India, Indonesia, Iran, Jamaica,
Jordan, Kazakhstan, Kenya, Korea (North), Kyrgyzstan, Lebanon, Macedonia, Malaysia,
Malta, Marshall Islands, Mauritius, Mexico, Micronesia, Moldavia, Mongolia, Morocco,
Namibia, Naura, Nicaragua, Nigeria, Niue, Oman, Pakistan, Palau Islands, Panama,
Papua New Guinea, Paraguay, Peru, Philippines, R.P. Congo, Saudi Arabia, Seychelles,
Slovenia, South Africa, Sri Lanka , St Kitts and Nevis, St Lucia, St Vincent and the
Grenadines, Surinam, Syria, Swaziland, Tajikistan, Thailand, Tonga, Tunisia,
Turkmenistan, Tuvalu, Uruguay, Uzbekistan, Venezuela, Vietnam, Yugoslavia,
Zimbabwe
Countries under the special Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua,
program to fight narcotics Panama, Peru, Venezuela, Pakistan
ACP Countries Angola, Antigua and Barbuda, Bahamas, Barbados, Belize, Benin, Botswana, Burkina
Faso, Burundi, Cabo Verde, Cameroon, Chad, Comoro, Congo, D.R. Congo, Cook
Islands, Côtes D’Ivoire, Djibouti, Dominica, Eritrea, Ethiopia, Fiji, Gabon, Gambia,
Ghana, Grenada, Guinea, Guinea Equatorial, Guinea-Bissau, Guyana, Haiti, Jamaica,
Kenya, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Mali, Marshall Islands,
Mauritania, Mauritius, Micronesia, Mozambique, Namibia, Nauru, Niger, Nigeria, Niue,
Palau, Papua New Guinea, Dominican Republic, Rwanda, São Tomé and Príncipe,
Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, South Africa, St Kitts and
Nevis, St Lucia, St Vincent and the Grenadines, Sudan, Suriname, Swaziland, Tanzania,
Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Western Samoa,
Zambia, Zimbabwe
OCT Territories Anguilla, Aruba, British Antarctic Territory, British territories in the Indian Ocean,
British Virgin Islands, Cayman Islands, Falkland Islands, French Polynesia, Greenland,
Mayotte, Montserrat, New Caledonia, Pitcairn, St Helena, St Pierre and Miquelon,
South Georgia and the South Sandwich Islands, The Dutch Antilles, Wallis and Futuna
Islands,
ACP Countries Party to the Angola, Antigua and Barbuda, Bahamas, Barbados, Belize, Benin, Botswana, Burkina
Cotonou Agreement Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoro
Islands, Congo (Brazzaville), Congo (Kinshasa), Cook Islans, Djibouti, Dominica,
Dominican Republic, East Timor, Ethiopia, Eritrea, Federated States of Micronesia, Fiji,
Gabon, Gambia, Ghana, Grenada, Guinea, Guinea (Bissau), Guinea (Equatorial),
Guyana, Haïti, Ivory Coast, Kenya, Jamaica, Kiribati, Lesotho, Liberia, Madagascar,
Malawi, Mali, Marshall Islands, Mauritania, Mauritius, Mozambique, Namibia, Nauru,
Niger, Nigeria, Niue, Palau, Papua New Guinea, Rwanda, Saint Kitts and Nevis, Saint
Lucia, Saint Vincent and the Grenadines, Samoa, Sâo Tome and Principe, Senegal,
Seychelles, Sierra Leone, Solomon Islands, Somalia, South Africa, Sudan, Suriname,
Swaziland, Tanzania, Tonga, Trinidad and Tobago, Tuvalu, Togo, Uganda, Vanuatu,
Zambia, Zimbabwe

*Myanmar is currently excluded from the EU’s General System of Preference

Source: Customs & Excise, Denmark

Market Survey - Spices and Herbs April 2006 30

Appendix 4 – WTO Member Countries
149 members on 11 December 2005, with dates of membership.
Albania 8 September 2000 Haiti 30 January 1996 Saint Kitts and Nevis 21 February 1996
Angola 23 November 1996 Honduras 1 January 1995 Saint Lucia 1 January 1995
Antigua and Barbuda 1 January 1995 Hong Kong, China 1 January 1995 Saint Vincent & the Grenadines 1 January
Argentina 1 January 1995 Hungary 1 January 1995 1995
Armenia 5 February 2003 Iceland 1 January 1995 Saudi Arabia 11 December 2005
Australia 1 January 1995 India 1 January 1995 Senegal 1 January 1995
Austria 1 January 1995 Indonesia 1 January 1995 Sierra Leone 23 July 1995
Bahrain, Kingdom of 1 January 1995 Ireland 1 January 1995 Singapore 1 January 1995
Bangladesh 1 January 1995 Israel 21 April 1995 Slovak Republic 1 January 1995
Barbados 1 January 1995 Italy 1 January 1995 Slovenia 30 July 1995
Belgium 1 January 1995 Jamaica 9 March 1995 Solomon Islands 26 July 1996
Belize 1 January 1995 Japan 1 January 1995 South Africa 1 January 1995
Benin 22 February 1996 Jordan 11 April 2000 Spain 1 January 1995
Bolivia 12 September 1995 Kenya 1 January 1995 Sri Lanka 1 January 1995
Botswana 31 May 1995 Korea, Republic of 1 January 1995 Suriname 1 January 1995
Brazil 1 January 1995 Kuwait 1 January 1995 Swaziland 1 January 1995
Brunei Darussalam 1 January 1995 Kyrgyz Republic 20 December 1998 Sweden 1 January 1995
Bulgaria 1 December 1996 Latvia 10 February 1999 Switzerland 1 July 1995
Burkina Faso 3 June 1995 Lesotho 31 May 1995 Chinese Taipei 1 January 2002
Burundi 23 July 1995 Liechtenstein 1 September 1995 Tanzania 1 January 1995
Cambodia 13 October 2004 Lithuania 31 May 2001 Thailand 1 January 1995
Cameroon 13 December 1995 Luxembourg 1 January 1995 Togo 31 May 1995
Canada 1 January 1995 Macao, China 1 January 1995 Trinidad and Tobago 1 March 1995
Central African Republic 31 May 1995 Madagascar 17 November 1995 Tunisia 29 March 1995
Chad 19 October 1996 Malawi 31 May 1995 Turkey 26 March 1995
Chile 1 January 1995 Malaysia 1 January 1995 Uganda 1 January 1995
China 11 December 2001 Maldives 31 May 1995 United Arab Emirates 10 April 1996
Colombia 30 April 1995 Mali 31 May 1995 United Kingdom 1 January 1995
Congo 27 March 1997 Malta 1 January 1995 United States of America 1 January 1995
Costa Rica 1 January 1995 Mauritania 31 May 1995 Uruguay 1 January 1995
Côte d'Ivoire 1 January 1995 Mauritius 1 January 1995 Venezuela (Bolivarian Republic of) 1
Croatia 30 November 2000 Mexico 1 January 1995 January 1995
Cuba 20 April 1995 Moldova 26 July 2001 Zambia 1 January 1995
Cyprus 30 July 1995 Mongolia 29 January 1997 Zimbabwe 5 March 1995
Czech Republic 1 January 1995 Morocco 1 January 1995
Democratic Republic of the Congo 1 Mozambique 26 August 1995
January 1997 Myanmar 1 January 1995
Denmark 1 January 1995 Namibia 1 January 1995
Djibouti 31 May 1995 Nepal 23 April 2004
Dominica 1 January 1995 Netherlands — For the Kingdom in Europe
Dominican Republic 9 March 1995 and for the Netherlands Antilles 1 January
Ecuador 21 January 1996 1995
Egypt 30 June 1995 New Zealand 1 January 1995
El Salvador 7 May 1995 Nicaragua 3 September 1995
Estonia 13 November 1999 Niger 13 December 1996
European Communities 1 January 1995 Nigeria 1 January 1995
Fiji 14 January 1996 Norway 1 January 1995
Finland 1 January 1995 Oman 9 November 2000
Former Yugoslav Republic of Macedonia Pakistan 1 January 1995
(FYROM) 4 April 2003 Panama 6 September 1997
France 1 January 1995 Papua New Guinea 9 June 1996
Gabon 1 January 1995 Paraguay 1 January 1995
The Gambia 23 October 1996 Peru 1 January 1995
Georgia 14 June 2000 Philippines 1 January 1995
Germany 1 January 1995 Poland 1 July 1995
Ghana 1 January 1995 Portugal 1 January 1995
Greece 1 January 1995 Qatar 13 January 1996
Grenada 22 February 1996 Romania 1 January 1995
Guatemala 21 July 1995 Rwanda 22 May 1996
Guinea 25 October 1995
Guinea Bissau 31 May 1995
Guyana 1 January 1995

Market Survey - Spices and Herbs April 2006 31

Market Survey - Spices and Herbs April 2006 32
The Danish Chamber of Commerce (HTSI)
The Danish Import Promotion Programme (DIPP)
Boersen
Slotsholmsgade
1217 Copenhagen K.
Denmark
Phone: +45 72 25 50 00
Fax: +45 72 25 50 01
e-mail: dipp@htsi.dk
www.dipp.eu

Market Survey - Spices and Herbs April 2006 33