How to Export to Estonia

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How to Export to Estonia


How To Export To Estonia

Introduction

Estonia joined the European Union (EU) on May 1, 2004. As part of the enlargement process, all the accession countries have adopted the acquis communautaire, which includes numerous rules that affect U.S. exporters and their products. In some cases, the accession countries have negotiated transitional agreements with the EU to extend the deadline for compliance. Thus, the sections below may correspond to EU-wide regulations or they may be country-specific. If you have questions after reading this guide, please contact 1-800-USA-TRAD(e).

Customs Valuation
Duties
Customs duties apply to all products imported into Estonia, but duty rates vary according to the product or service. The customs harmonized system code that is currently binding in Estonia assesses different duty rates for the same commodities depending on their country of origin. As part of the EU accession process, all new members must abandon their own trade policy and adopt the trade benefits and customs duties of the EU, which in most cases will mean lowering and/or eliminating tariffs on an increasing number of products coming from the U.S. However, some U.S. products may continue to face higher rates as compared to European competitors. U.S. companies can look up the EU's customs duty rates here.

Questions about customs duties can be answered at 1800-USA-TRAD(e) or the Customs Office in each country (see ÏUseful AddressesÓ below). The TIC can provide the duty rate if the exporter supplies the Harmonized code (also known as a Schedule B number), which identifies the product internationally. For more information on tariffs for IT products, click here.

Harmonized codes can be found online by running a keyword search on the Census Bureau website at: http://www.census.gov/foreign- trade/schedules/b or by calling the Census Bureau at (301) 763-3259.

* The duty is assessed on the CIF, or cost, insurance and freight.

Value-Added Tax
The VAT is a European type of sales tax that is applied at all stages of production of a good, including export/import transactions. VAT rates are determined by each individual member state of the EU. The VAT rate in Estonia is 18 percent. Reduced VAT rates are available on certain products, such as basic necessities, foodstuffs, electricity, heat, lumber, books, etc. For questions, call (202) 482-2645.

What U.S. Companies need to know about European Union VAT

For VAT rates in all the countries of Central and Eastern Europe, please visit http://www.mac.doc.gov/ceebic/dutiesandtaxes.htm#H3.

* The VAT is assessed on the CIF plus the amount paid on duties.

Excise, Consumption and Luxury Taxes

Under EU legislation, member states are required to impose excise duties on mineral oils, alcohol and alcoholic beverages, and manufactured tobacco. Estonia has been granted a transitional grace period to postpone compliance with the EC legislation on excise taxes on cigarettes, smoking tobacco and other tobacco products until the end of 2009.

Member States have the right to introduce or maintain indirect taxes imposed on products other than those mentioned above, on the condition that the taxes do not create border-crossing formalities.

There are numerous conditions that determine the amount of tax that is to be charged. For more information, please refer to http://europa.eu.int/scadplus/leg/en/lvb/l31018.htm.

For information on specific excise duties, please visit: http://europa.eu.int/comm/taxation_customs/publications/info_doc/taxation/c4_excise_tables_acce.pdf.

Exemptions

Ô Temporary Entry = All EU accession countries are signatories to the ATA Convention on Temporary Imports and Exports. Therefore, products may be imported into these countries on a temporary basis and be totally exempted from customs duties in various cases, such as if goods are temporarily imported for exhibitions or testing, or the goods are equipment for governmental and non-governmental international or bilateral organizations. The time limits for temporary imports are established on the basis of the purpose for which goods are temporarily imported. ATA carnets are meant to save time, effort and money by facilitating temporary admission through customs. Carnets are valid for one year, and they may be used for unlimited exits from and entries into the U.S. and foreign countries. For more information on ATA Carnets, which facilitate temporary entry, contact the U.S. Council for International Business at 1-866-7-UNLOCK or visit http://www.merchandisepassport.org.

Ô Free Trade Zones = The rules governing free trade zones (FTZ) in the new EU member states are determined via bilateral negotiations between new member states and the EU. Generally, i n the EU, certain geographical areas can be called a FTZ. In the new member states, EU approval of an FTZ will only be granted if the companies producing in the FTZ do not have a negative impact on the markets of the EU member states. The use of free trade zones varies from Member State to Member State. For example, Germany maintains a number of free ports or free zones within a port that are roughly equivalent to U.S. foreign-trade zones, in Hungary, the number of FTZs will drop to ten from 130 operating pre-accession, and Belgium has none.

Ô Trade Agreements = The EU has entered into free trade agreements with the following: European Free Trade Association (EFTA) composed of Norway, Switzerland, Iceland, and Liechtenstein, as well as, Mexico, Morocco, Tunisia, Turkey, Israel, Jordan. Estonia, as a member of the European Union, will now offer the same treatment under the EU's rules.

Import Documentation

U.S. companies exporting into Estonia are required to include:

Ô Commercial Invoice, which is a bill for the goods from the seller to the buyer. Commercial invoices are utilized by customs officials to determine the value of the goods in order to assess customs duties and taxes.

Ô Air Waybill or Bill of Lading, which are usually prepared by the freight forwarder, to ship the merchandise. Air Waybills are used for shipments being transported by air and Bills of Lading are used for shipments being transported by ocean. Air Waybills and Bills of Lading contain the contact information for the shipper and consignee, the carrier information, port of entry and departure, handling information, number of pieces and weight and shipping costs.

Ô Shippers Export Declaration (SED) or Form 7525-V, which is used to compile trade statistics and help in interdicting illegal exports. A SED is required for items needing an export license or valued above $2,500.

Ô Certificate of Origin, which is a document d eclaring that goods in a particular international shipment are of a certain origin. Even though the commercial invoice usually includes a statement of origin, some countries require that a separate certificate be completed. Customs offices use this document to determine whether or not a preferential duty rate applies on the products being imported and whether a shipment may be legally imported during a specific quota period.

Ô Single Administrative Document (SAD), which is a customs document that must be completed when exporting or transporting 'goods in transit' in countries in the European Union. Exporters are required to complete information about their company, the destination country, the products being exported, the method of transportation being used and any export licenses.

For additional information about import documentation please consult the Guide to Export Documentation at: http://www.mac.doc.gov/ceebic/thebasics/classexporters.htm.

Import Licenses

The Integrated Tariff of the Community, referred to as TARIC (acronym for Tarif Int»gr» de la Communaut»"), is designed to show various rules applying to specific products being imported into the customs territory of the EU or, in some cases, when exported from it. To determine if a license is required for a particular product, check column five of the TARIC.

The TARIC can be searched by country of origin, Harmonized System Code, and product description on the interactive website of the Directorate-General for Taxation and the Customs Union. The TARIC is updated annually in April.

Key Link: www.europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm

In addition, many EU Member States maintain a list of goods subject to import licensing. For example, Estonia requires import licenses for metals, fuel, spirits, tobacco and tobacco goods, pharmaceuticals, weapons, ammunition, explosives, lottery tickets and private passenger vehicles.

Quotas and Other Trade Defense Measures

As of EU accession on May 1, 2004, the new member states no longer apply trade defense action on a national basis. All measures taken by the new member states will disappear, and any on-going investigations by the new member states will not be continued. In practical terms, this means that if you export to the new member states you may become subject to trade defense measures that are in force in the EU-15 upon enlargement.

For more information on how enlargement will affect you as a non-EU exporter of goods into an enlarged EU, please visit: http://europa.eu.int/comm/trade/issues/respectrules/tdi_enlarg/exporters.htm.

Textile trade between the United States and the EU is not subject to quotas, however, the EU maintains quotas for the import of particular textile and clothing products from several third countries.

Prohibited Imports

The European Union prohibits the importation of the following products: beef produced with growth promoters, biotechnology products, gelatin, poultry treated with anti-macrobial agents, specific risk and mechanically recovered meat products.

Export Licenses

Most high-tech Western technology can flow into Central and Eastern Europe without a U.S. export license. However, the goods that need an export license are different for every country and the list constantly changes. Generally, defense products and equipment such as optical equipment and software that may have a dual usage do require an export license. Export licenses can be obtained from the Bureau of Industry and Security (BIS) (formerly, BXA at the U.S. Department of Commerce). BIS coordinates the licensing process with the Departments of State and Defense. If an exporter has a good that may need a license, the Export Commodity Control Number (ECCN) must be determined from the manufacturer. The number can also be obtained by filling out the BIS-748 Multipurpose Form, available by calling BIS's form request line at (202) 482-3332. This form also serves as the application for the export license itself. For specific questions about Export Licenses, call (202) 482-4811.

Standards and Quality Control

Standardization has taken on an increased importance with the free movement of goods across EU borders, as prescribed by the rules of the Single Market. In order to ensure that their products meet the necessary standards, U.S. exporters should familiarize themselves with two key concepts: the CE mark and the New Approach directives. The CE mark Ò a "passport" that allows manufacturers to circulate industrial products freely within the EU Ò certifies that the products have met EU health and safety requirements. All manufacturers in the EU and abroad must affix the CE mark to those products covered by the New Approach directives. The EU devised its New Approach directives to streamline the development and harmonization of technical standards for a broad base of product groups, such as machinery, electrical products, or medical devices. The New Approach directives consist of essential health and safety requirements, rather than detailed specifications for a manufacturer to follow. The technical details as to how to meet the minimum health and safety requirements have been left to three groups: 1) manufacturers who self-certify products by meeting the requirements of the applicable directives and in some cases by using appropriate European standards; 2) the three regional European standards organizations (CEN, CENELEC and ETSI); and 3) government-appointed product certification bodies (Ïnotified bodiesÓ), which provide testing and product approvals. For more information on standards, CE marking and the New Approach directives, please click here: http://www.ita.doc.gov/td/tic/ce_mark/ceindex1.htm.

Ô Labeling and Marking Requirements

Labeling requirements are completely harmonized with EU regulations. Labeling and marking requirements for products depend on the type of product and the intended use. In general, however, labels must be in Estonian and can be affixed to the product or on a leaflet attached to the product. Information must include the name of the product, name of producer, and in some cases, instructions for use. Labels for some products, such as foods, beverages, food supplements and textiles must also provide content/composition. In addition, international norms for warning labels on consumer products are expected. For more information, please see the EU's New Approach Directive.
(http://www.europa.eu.int/comm/enterprise/newapproach/legislation/guide/legislation.htm)

Useful Addresses

Ministry of Finance
Suur-Ameerika 1
Tallinn 15006, Estonia
Tel: (372) 611-3558
Fax: (372) 696-6810
Website: http://www.fin.ee
E-mail: info@fin.ee

National Customs Board
L?kke 5
15175 Tallinn, Estonia
Tel: (372) 696-7711
Fax: (372) 696-7727
Website: http://www.customs.ee
E-mail: info@keskus.customs.ee

National Standards Board
Aru 10
10317 Tallinn, Estonia
Tel: (372) 651-9200
Fax: (372) 651-9220
Website: http//www.evs.ee/index.php3?lk=english
E-mail: info@evs.ee

** If you would like to see the pre-accession version of Estonia's ÎHow to Export Guide', please click here:

For additional information about export documentation, visit: "CEEBIC's Guide to the Basics of Export Documentation for Central and Eastern Europe."

Click here for a list of Shipping Companies with service to Central and Eastern Europe

Updated June 2004

Copyright © 2003 CEEBIC.