Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 2000: Estonia Report prepared by U.S. Embassy Tallinn, released July 1999 Note*

CHAPTER VI. TRADE REGULATIONS AND STANDARDS

Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes

Under Estonian law all companies, regardless of their ownership structure, may carry out foreign trade relations. State-owned enterprises have neither exclusive rights nor special privileges in their purchases or sales involving exports or imports.

Currently Estonia is practicing a liberal foreign trade regime with few tariff or non-tariff barriers. It is expected though, that the government will place import tariffs on certain agricultural products. The continued success of the external trade regime depends heavily on restructuring and revitalization of companies in the agricultural and industrial sectors.

Having started accession negotiations with the European Union (EU), Estonia is in the process of adopting EU internal market procedures. U.S. firms may be confident that future Estonian trade practices will resemble those of the EU.

Customs Valuation

Goods imported into or exported from Estonia must be cleared through the Estonian Customs. It collects the following duties and taxes:

-- A. procedure fee - fee of a fiscal nature of about USD 14.50.
-- B. Value added tax - VAT is levied ad valorem.

Products exempted from VAT include medicines, medical goods and equipment, equipment for funeral services, goods imported for non-profit purposes, and some other specific goods and services. VAT is collected by customs upon clearance of imported goods. For customs purposes, value is defined as the transaction value of the good, with the addition of certain costs such as insurance and freight, up to the Estonian border.

Import/Export Licenses

Licenses are required for importing and exporting: metals; fuel; spirits; tobacco and tobacco goods; pharmaceuticals; weapons, ammunition, explosives; lottery tickets; and private passenger vehicles. The license requirement applies equally to domestic and foreign firms, and are issued to those firms that apply and that fulfill the application requirements. The licenses do not establish quantitative restrictions. Licenses are obtained from the Ministry of Economy. See section E for a list of contacts. Import/Export Documentation Requirements

Imports/exports must be cleared in writing, using the forms provided by the National Customs Board of Estonia. The customs declaration must be filled out by the holder of the goods or by a declarant who has been granted adequate authority by the Customs Board.

Temporary Entry

Goods transiting Estonian territory are not charged duties. It is possible to obtain temporary exemption from duty for items such as commercial samples, and for goods intended for public displays at exhibitions and fairs. If the goods are put to any unauthorized use or are not exported within the prescribed time period (maximum one year) they must go through normal customs clearance and become liable for relevant duties and taxes.

Labeling/Marking Requirements

The following information, in Estonian, is required on the retail packaging, or otherwise marked on the product (a sticker, label, etc.):

-- Name of product (indicating clearly the contents of the package)
-- Name of the manufacturer or the name of the company that had the product manufactured
-- Amount of contents (weight or volume of the contents to be specified, measures in metric system).

If warranted, the following information should also be included on the retail packaging or otherwise clearly identified on the product: contents of the product, care instructions, operating instructions, and a warning of possible danger related to the use or disposal of the product.

A retail-size food package must show the same name of the manufacturer, packer or importer, commercial name of the product, net metric weight or volume, ingredients in descending order of weight, last recommended date of sale, and storage instructions if perishable or intended for infants. This information described above must be provided in Estonian.

Prohibited Imports

There are no prohibited imports. See Special Import Provisions.

Standards

Estonian standards for imported goods are being developed and are based on those of the ISO (International Standards Organization). It is highly recommended that U.S. products imported into Estonia meet international or European standards. The central body for standardization in Estonia is the National Standards Board of Estonia. See section E for a list of contacts.

Free Trade Zones/Warehouses

Since 1997, a free trade zone has operated at Muuga Port, one of the four harbors that forms the Port of Tallinn complex. A free economic zone is being established in Sillamae (an industrial area in Estonia's northeast). In January 1999, two more free trade zones were approved for Valga and Võru (Southeast Estonia). There are a number of bonded warehouses located in border areas. The free storage areas are available equally to all firms, whether domestic or foreign. Goods may be stored in the warehouses for up to a year, free from import or export duties. The term of storage may be extended by the Customs Board. While the processing of warehoused goods is prohibited, improvement of the packaging, and preparing goods for sale and transport is not considered to be processing. Special Import Provisions

The import and export of plant and plant products is permitted only with an accompanying phytosanitary certificate issued by the Estonian Plant Guarantee Inspection Board or competent foreign authorities. These goods may be imported or exported only at specified border crossings.

The import and export of livestock, fish, fowl, aquatic organisms, animal and poultry products, animal feed and its components and veterinary and biopreparations, are subject to state control and enforced by the Estonian Veterinary Control Border Inspection.

Special conditions exist for importing or exporting the following products: cultural artifacts; precious metals, stones and articles containing these; medicinal products; weapons; explosives; radio broadcast equipment; rare species of plant and animals; goods subject to veterinary, food and phytosanitary control; plant preservatives; narcotic drugs and psychotropic substances; foreign currency and securities; equipment and means for recording of audiovisual production; lottery tickets; strategic goods; radioactive radiation sources; motor vehicles; building cement; and dangerous and other waste.

Membership in Free Trade Arrangements

Estonia has entered free trade agreements with: the Czech Republic, Denmark, the Faro Islands, Latvia, Lithuania, Norway, the Slovak Republic, Slovenia, Switzerland, Turkey, and Ukraine. Free trade negotiations have been started with Bulgaria, Poland and Romania.

Because it is EU accession negotiations, Estonia will comply with those trade agreements that the EU has made with third countries.