Denmark 2019 Table of Contents Doing Business in Denmark _____________________________________________________________________ 6 Market Overview ______________________________________________________________________________________________ 6 Market Challenges ____________________________________________________________________________________________ 7 Market Opportunities ________________________________________________________________________________________ 8 Market Entry Strategy ________________________________________________________________________________________ 8 Market Fact Sheet _____________________________________________________________________________________________ 8 Other Areas in the Kingdom of Denmark __________________________________________________________________ 9 Greenland _____________________________________________________________________ 9 The Faroe Islands ______________________________________________________________ 13 Contact ______________________________________________________________________ 15 Special Appendix on Greenland ___________________________________________________ 17 Political Environment ___________________________________________________________________________ 24 Selling US Products & Services _________________________________________________________________ 25 Using an Agent to Sell US Products and Services ________________________________________________________ 25 Establishing an Office ________________________________________________________________________________________ 26 Franchising ____________________________________________________________________________________________________ 27 Direct Marketing _____________________________________________________________________________________________ 27 Joint Ventures/Licensing ___________________________________________________________________________________ 30 Selling to the Government __________________________________________________________________________________ 30 Distribution & Sales Channels ______________________________________________________________________________ 32 Selling Factors & Techniques _______________________________________________________________________________ 32 eCommerce ____________________________________________________________________________________________________ 33 Trade Promotion & Advertising ___________________________________________________________________________ 37 Pricing _________________________________________________________________________________________________________ 41 Sales Service/Customer Support __________________________________________________________________________ 42 Protecting Intellectual Property ___________________________________________________________________________ 43 Due Diligence _________________________________________________________________________________________________ 46 Local Professional Services _________________________________________________________________________________ 46 Principal Business Associations ___________________________________________________________________________ 46 Limitations on Selling US Products and Services ________________________________________________________ 47 Data Privacy and Protection ________________________________________________________________________________ 48 2 Cyber Security ________________________________________________________________________________________________ 50 Leading Sectors for US Exports & Investments _____________________________________________ 51 Renewable Energy Products ________________________________________________________________________________ 51 Agricultural Sector ___________________________________________________________________________________________ 53 Green Building Products ____________________________________________________________________________________ 55 Oil and Gas Field Machinery (OGM) _______________________________________________________________________ 58 Software and Information Technologies _________________________________________________________________ 60 Smart Cities ___________________________________________________________________________________________________ 61 Medical Technology and Dental Equipment _____________________________________________________________ 63 Drugs and Pharmaceuticals ________________________________________________________________________________ 65 Travel and Tourism Services _______________________________________________________________________________ 67 Franchising ____________________________________________________________________________________________________ 68 Customs, Regulations & Standards ___________________________________________________________ 70 Trade Barriers ________________________________________________________________________________________________ 70 Import Tariff __________________________________________________________________________________________________ 70 Import Requirements & Documentation _________________________________________________________________ 71 Value Added Tax (VAT) _____________________________________________________________________________________ 76 Labeling/Marking Requirements __________________________________________________________________________ 77 U.S. Export Controls __________________________________________________________________________________________ 94 Temporary Entry _____________________________________________________________________________________________ 95 Prohibited & Restricted Imports __________________________________________________________________________ 95 Customs Regulations and Contact Information __________________________________________________________ 96 Standards for Trade _________________________________________________________________________________________ 97 Trade Agreements _________________________________________________________________________________________ 103 Licensing Requirements for Professional Services ___________________________________________________ 103 Resources ___________________________________________________________________________________________________ 103 Investment Climate Statement _______________________________________________________________ 106 Executive Summary ________________________________________________________________________________________ 106 Openness To, and Restrictions Upon, Foreign Investment __________________________________________ 107 Bilateral Investment Agreements and Taxation Treaties ____________________________________________ 111 Legal Regime ________________________________________________________________________________________________ 111 Industrial Policies __________________________________________________________________________________________ 114 3 Protection of Property Rights ____________________________________________________________________________ 115 Financial Sector ____________________________________________________________________________________________ 116 State‐Owned Enterprises _________________________________________________________________________________ 119 Responsible Business Conduct ___________________________________________________________________________ 119 Corruption __________________________________________________________________________________________________ 120 Political and Security Environment _____________________________________________________________________ 121 Labor Policies and Practices ______________________________________________________________________________ 121 OPIC and Other Investment Insurance Programs _____________________________________________________ 123 Foreign Direct Investment and Foreign Portfolio Investment Statistics __________________________ 123 Other Areas in the Kingdom of Denmark __________________________________________________ 125 Greenland ___________________________________________________________________________________________________ 125 The Faroe Islands __________________________________________________________________________________________ 130 Contact _______________________________________________________________________________________________________ 132 Trade & Project Financing ____________________________________________________________________ 133 How Do I Get Paid (Methods of Payment) ______________________________________________________________ 133 How Does the Banking Systems Operate _______________________________________________________________ 133 Foreign Exchange Controls _______________________________________________________________________________ 133 US Banks & Local Correspondent Banks ________________________________________________________________ 133 Project Financing ___________________________________________________________________________________________ 133 Multilateral Development Banks ________________________________________________________________________ 137 Financing Web Resources _________________________________________________________________________________ 137 Business Travel _________________________________________________________________________________ 138 Business Customs __________________________________________________________________________________________ 138 Travel Advisory ____________________________________________________________________________________________ 139 Visa Requirements _________________________________________________________________________________________ 140 Telecommunications/Electric