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Country Commercial Guides
FY 2000: Finland
CHAPTER VI: TRADE REGULATIONS, CUSTOMS, AND STANDARDS
Trade Barriers, including Tariffs, Non-Tariff Barriers and Import Taxes
Finland's adoption of EU internal market practices in 1995 defines Finland's trade relations both inside the EU and with non-EU countries.
Finland's import trade was not greatly affected by EU membership. Changes dealt with border protection procedures related to non-EU countries. Most of these restrictions concern import of certain types of steel, in particular from the NIS, as well as import of certain articles from China. The restrictions are in the form of quotas, licensing and other control measures. The quotas are EU-wide. Access to quotas may depend on whether the importer is an established traditional supplier or a newcomer.
Finland is now covered by EU antidumping legislation, the EU's principal and most comprehensive import protection mechanism. Finland has also adopted the Generalized System of Preferences (GSP) of the EU. Furthermore, Finland applies import taxes imposed by the EU.
Finland replaced its turnover tax with a value-added tax in June 1994. While the change has had little effect on overall revenues, several areas not previously taxed or taxed at a lower rate, including many corporate and consumer services and construction are now subject to the new VAT in conformity with EU practices. The government has kept the basic VAT rate at the same level as the old turnover tax, which is 22 percent. Foodstuffs are taxed at 17 percent. Sport facilities usage, medicines, books, cinemas, passenger transport services, hotel and other accommodation, entertainment performances, sporting events, zoos, museums, and other such events or institutions are taxed at 8 percent. Other services, including health care, education, insurance, newspaper & periodical subscriptions and rentals are not subject to VAT. Agricultural and forestry products continue to be subject to different forms of taxation outside the VAT. A uniform tax rate of 28 percent on capital gains took effect in 1996, which includes dividends, rental income, insurance, savings, forestry income, and corporate profits. The sole exception was bank interest, where the tax rate was increased from 20 to 25 percent at the beginning of 1994.
In March 1997, EU Commitments required the establishment of a tax border between the autonomously governed, but territorially Finnish, Aland Islands and the rest of Finland. As a result, the trade of goods and services between the rest of Finland and Aland Islands is now treated as if it were trade with a non-EU area. The trade effect of this treatment is minimal since the Aland Islands are part of EFTA tariff area. However, this situation will have new significance if duty-free sales to travelers between EU destinations are eliminated in 1999.
Finland has also introduced EU practices on imports of agricultural products. Some agricultural goods are subject to the standard import licensing system, EU-wide quotas, import taxes or other provisions. Finland, along with other new members, is permitted to take measures, accepted by the EU, to shelter its agriculture or foodstuff sector during a limited transition period. In a temporary exception to general EU procedure, Finland may impose higher tariffs than the EU level on the following items: footwear, rubber, plastic, metals, raw hides & skins and some electric machinery. The transition period ended in 1998. As of July 1, 1996 higher tariffs on textiles, clothing and headgear were abolished.
In mid-1996 the Finnish government's inter-ministerial licensing authority began selectively to oppose within the EU American company applications for commercialization of genetically modified organisms (GMOs) such as insect resistant corn. Efforts to craft a compromise that would accommodate U.S. commerce are underway, and initial results are encouraging.
Customs Regulations and Excise Duties
Customs duties are levied on goods imported to Finland. As a member of the EU, Finland is part of the EU wide Customs Territory and applies EU Customs legislation.
Excise duties are levied on a number of commodities: alcoholic beverages, tobacco products, mineral oils (all at EU harmonized rates), and waste, electric energy, certain energy sources, sweets and soft drinks (at national rates).
Tariff Rates
Duties and other import taxes are levied on the customs value of the goods at the point of importation. The customs value is based on the transaction value of the goods imported. In practice, the C.I.F. value is commonly used as the customs value. To assess customs value, the place of importation must be indicated. In the case of sea and air cargo, the place of importation is the unloading location. In surface transportation, it is the Customs Office at the frontier.
The customs value is determined according to the GATT Valuation Agreement and the Community Customs Code (Council regulation 2913/92) and the Regulation Laying down Provisions for Implementation of the Customs Code (Commission regulation 2454/93).
Import License Requirements
Finland follows import-licensing procedures of the EU. Licenses can be applied for from the National Board of Customs. Certain agricultural products are subject to import duties and/or fees imposed in accordance with EU rules and regulations. Among the products subject to these duties and fees are cereals, flour, certain fats and oils, fishery products, butter, cheese, eggs, poultry, meat, cattle and hogs. The transitional period that allowed Finland maintain its stricter (than EU) import regulations on certain agricultural products (primarily meat and livestock) expired in 1998.
Temporary Goods Entry Requirements
Temporary exemption from duty can be granted, for instance, to the following:
If the goods are put to unauthorized use or are not exported within the prescribed time (maximum one year) they must go through normal customs clearance and become liable for relevant duties and taxes.
- Goods intended for public displays at exhibitions and fairs
- Commercial samples
- Professional tools and equipment
In Finland, the ATA-Carnet, the international customs documentation for temporary duty-free admission is issued by the Chamber of Commerce. The ATA-Carnets are frequently used for temporary imports e.g. samples, exhibition materials, and professional equipment (laptop computers, software), and are valid for one year.
Special Import/Export Requirements
Imports must be cleared in writing, using forms endorsed by the National Board of Customs in Finland. The customs declaration form must be filled out by the holder of the goods or by an authorized agent. A valuation declaration for imports must be attached to the customs declaration for imports exceeding the value of FIM 30,000 (about $5,300). A copy of the commercial invoice must be attached to the customs declaration, and must include the following information:
Some items can only be imported to Finland under certain conditions regulated by the European Union. Sanitary certificates are required for goods that may carry contagious animal or plant diseases. All products imported for sale without further processing should clearly show their country of origin.
- Exporter's/buyer's name and address
- Date of the invoice
- Identifying marks, the numbers, quantities, types and the gross weight of packages, including unit of measure
- Description and quantity of the goods
- Value of each item
- Terms of delivery and payment
Labeling Requirements
Labeling and marking requirements in Finland are based on the Act on Product Safety, which was enacted in accordance with the EU Directive on general product safety. The following information should be included in retail packaging, or otherwise marked on the product (a sticker, label, etc.):
If warranted by safety considerations or economic security of the consumer, 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.
- Name of the 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).
Finland has exact labeling requirements for foods. A retail-size food package must show the 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. Mandatory information described above must be provided in Finnish and Swedish.
Prohibited Imports
Finnish law prohibits the import of the following products:
Special Import Provisions
- PCB and PCT chemicals used in transformers and condensers causing problem wastes
- whale meat
The EU customs union system is applied in Finland. Special import provisions govern the import of certain articles that might damage health, welfare or country's economy, or result in the spread of animal and plant diseases. The provisions are either EU-wide or set according to national standards.
Subject to restrictions are, among others, the following:
Export Controls
- foodstuffs
- fodder and fertilizers
- alcoholic beverages and other products containing alcohol
- medicines
- narcotics and dangerous drugs
- some chemicals
- nuclear and radioactive substances
- explosives
- blade knives firearms and ammunition
- obscene publications
- pressure vessels
Finland is an active participant in all export control regimes, notably the Nuclear Suppliers Group (NSG), the NPT Exporters Committee (Zangger Committee), the Missile Technology Control Regime (MTCR), the Australia Group (AG) and the Wassenaar Arrangement (WA). Finland chaired the Zangger Committee in 1989-93 and the NSG in 1995-96.
A basic principle of Finland's export control policy is that there is no published or unpublished "black list" of undesired destinations except those subject to sanctions by the UN or the EU. All license applications are considered on a case-by-case basis, taking into account the information exchanged within the relevant export control regime.
Export Control Authorities
Ministry for Foreign Affairs is in charge of Finnish non-proliferation policy as well as the security and trade policy aspects of export controls.
Ministry of Trade and Industry is in charge of the national implementation of the European Union's system of export controls on dual-use goods. The Trade Department of the MTI is the authority granting export licenses for exports of dual-use goods. The MTI's Energy Department grants licenses for exports of nuclear materials, facilities and equipment.
Ministry of Defense
The Finnish Ministry of Defense is in charge of export licenses for exports of defense material (i.e. military goods and technologies).Ministry of the Interior
The Ministry of the Interior is responsible for export and import licenses for non-military firearms and ammunition as well as for national implementation of the relevant EU directives. For more information on export controls, please contact:Ministry of Trade and Industry
Aleksanterinkatu 4
FIN-00170 Helsinki, Finland
Tel: 358-9-160 4691
Fax: 358-9-160 4622
Contact: Mr. Eero Aho
Senior AdvisorStandards (e.g. ISO 9000 usage)
Finland uses the metric system. Products for sale in Finland should be adapted to the metric system whenever possible. It is also highly recommended that U.S. products imported into Finland meet international or European standards. Examples of products where conformity to directives is mandatory are electric equipment, machines, toys, pressure vessels and personal protective equipment. In these cases CE-marking acquired in any EU/EEA country is also valid in Finland. There are several Notified Bodies in Finland participating in the CE-marking procedure.
The central body for standardization in Finland is the Finnish Standards Association (SFS). It is a member of the ISO (International Organization for Standardization) and CEN (Comite Europeen de Normalisation). All European and some international standards are compatible with national SFS standards. There are about 10,000 SFS standards in Finland, of which 70 percent are identical to European or international standards.
SFS-Certification, owned by the Finnish Standards Association is a major certification body in Finland. Its certification program covers both product and system certification. The SFS Mark is used to indicate products or services that meet the requirements of SFS standards. SFS-Certification certifies quality and environmental systems of companies, on the basis of standards ISO 9000 or ISO 14000. Certification can be granted to a company if the quality system meets the requirements of SFS-EN ISO 9001, SFS-EN ISO 9002 or SFS-EN ISO 9003. The environmental management system is assessed and certification granted on the basis of SFS-EN ISO 14001. SFS-Certification is in charge of the Nordic Environmental Labeling. It serves also as a competent body for the European ECO-labeling and is an accredited verifier for European EMAS-regulation.
Free Trade Zones/Warehouses
Finland has two free ports, Helsinki and Hanko. Hanko is located at the southernmost tip of the country. The port has a year-round railway-ferry link with Turku. In addition, there are 21 storage areas in other locations in the country. The duty free storage areas, which are usually run by municipal corporations, are available to domestic and foreign-owned companies. Warehousing, assembly and manufacturing are allowed in these areas, with permission from the Board of Customs.
Membership in Free Trade Arrangements
Finland joined the EU on January 1, 1995. The customs union membership means that Finland complies with trade agreements that the EU has made with third countries. Finland is also a member of the European Free Trade Association and the European Economic Area.
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Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
