Found in Sweden, imported material (5)
I believe the answer is:
denim
'material' is the definition.
(type of fabric)
'found in sweden imported' is the wordplay.
'found in' indicates a hidden word.
'DENIM' is hidden within 'sweden imported'.
(Other definitions for denim that I've seen before include "Durable material" , "Thick cotton cloth" , "Hard-wearing blue fabric" , "Coloured cotton twill" , "Mined badly for a hard-wearing fabric" .)