Index Cards by Country ESTONIA

Index cards by country

Estonia Free zones

Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Estonia

Year of promulgation of the first text Official Terms for Free Zones of law concerning the Free Zones Free Zones 1993

Possibility to be established as Exact number of Free Zones Free Points 4 No

Table of contents

Free Zones...... 4 General information...... 4 List of operating Free Zones...... 5 Contacts...... 5 Free Zones Web sites selection...... 6

2 WFZO Index cards - Estonia

FINLAND Helsinki

Muuga free zone Sillamäe Paldiski free zone free zone

Tallinn

ESTONIA

Valga free zone

RUSSIA

LATVIA

Riga

FREE ZONES IN ESTONIA 50 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones

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FREE ZONES

General information Official definition “Free zones are special areas within the customs territory of the Community. Goods placed within these areas are free of import duties, VAT and other import charges. Free zone treatment applies to both non-Community and Community goods. Non-Community goods stored in the zone are considered as not yet imported to the Customs territory of the Community whereas certain Community goods stored in free zones can be considered as already exported. On importation, free zones are mainly for storage of non-Community goods until they are released for free circulation. No import declaration has to be lodged as long as the goods are stored in the free zone. Import and export declara- tions have only to be lodged when the goods leave the free zone. In addition, there may be special reliefs available in free zones from other taxes, excises or local duties. These will differ from one zone to another. The free zones are mainly a service for traders to facilitate trading procedures by allowing fewer customs formalities.

Types of free zones: • Control type I free zones have a perimeter fence so that goods placed there, which is supervised by customs, are automatically under this regime. • The rules for control type II free zones are essentially the same as those governing customs warehouses. This means that, unlike with traditional-style free zones, the goods are subjected to a declaration in order to be able to benefit from the arrangement”.

Source: http://ec.europa.eu/taxation_customs/business/customs-procedures/what-is-importation/free-zones_en

Number of free zones 4 (3 Control type I free zones ; 1 Control type II Free zone)

Main sectors of activity Trade and logistics

Number of active com- No information panies in Free Zones

Total job numbers No information

Distribution of investors Sweden, Finland, Netherlands, Norway, Russia, Germany

Exports and sales No information

Free zones contribution Free trade zones in Estonia have a marginal impact on the economy to the national economy

Corporate Tax and Incen- “Goods brought to the free zone for later re-export are not subject to VAT, excise tives nor customs duties. Also the Estonian speciality - no tax on reinvested profits - preserves in free trade zones”. Source: http://www.investinestonia.com/en/investment-guide/premises-and-infrastructure

Taxes/Payments Free Trade Zone Regular rate VAT 0% 20% or 9% Excise Duties 0% Depending on goods Import/Export duties 0% Depending on goods Source : http://www.gencs.eu/news/view/1951

Free zones Law Estonia’s Customs Act, Chapter 11 Final Provisions

https://www.riigiteataja.ee/en/eli/521012014009/consolide

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List of operating Free Zones Name Location Surface area Contacts Observations

Muuga Port of Muu- The total area Port of Tallinn Control type I Free zone free zone ga, northern of the industrial Sadama 25, 15051 Estonia. park is 75 ha. Tallinn Office (372) 631 8555 Fax (372) 631 8166

Valga free Southern - Southern Tax and Cus- Control type II Free zone zone Estonia toms Centre Sõpruse pst 4 TARTU 50050 Tel: +372 6764100 FAX: +372 6764105 E-mail: [email protected]

Paldiski Paldiski Nor- The Free Zone Paldiski Ports Ltd Control type I Free zone free zone thern Port in territory of the Peetri 11, 76805 Pal- “Since 1 January 2011 the northwestern port with the diski, Estonia Northern Port of Paldiski Estonia total area of 16 Reg No: 10425338 has received a free eco- ha allows for Phone: +372 651 1010 nomic zone status, which storage of over Fax: +372 651 1011 provided several benefits to 6,000 cars. Harbourmaster on cargo owners with regard duty 24h: +372 651 to transportation of goods 1022 and vehicles. E-mail: info@portofpal- Port customers have an diski.ee option of storing vehicles on the territory of free economic zone without paying customs duties and with compensation of the input VAT.”

http://www.portofpaldiski.ee/ files/eng/port/port.html

Sillamäe Port of 750 ha in the Port of Sillamäe Control type I Free zone free zone Sillamäe in hinterland of Silport Kesk Str. northeastern Silport. 240231 0% taxes and duties, 0% Estonia Sillamäe Estonia corporate income tax on retained earnings. In June 2008, the port mo- ved to work in the regime of a free customs zone. http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/customs/procedural_aspects/imports/free_zones/ list_freezones.pdf http://www.portofpaldiski.ee/files/eng/port/port.html And others.

Contacts Estonian Investment Agency, Lasnamäe 2, 11412 Tallinn, Estonia Tel: +372 6 279 700 Fax: +372 6 279 701 [email protected] Juhan Kaalep Information Manager [email protected]

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Estonian Chamber of commerce and industry Main office in Tallinn Toom-Kooli 17 10130, Tallinn Tel: 604 0060 Fax: 604 0061 E-mail: [email protected]

Tax and Customs Board Lõõtsa 8a, 15176 Tallinn, Estonia +372 676 2642 [email protected]

Free Zones Web sites selection • http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/customs/procedural_aspects/imports/free_zones/list_freezones.pdf • http://ec.europa.eu/taxation_customs/business/customs-procedures/what-is-importation/free-zones_en+ • http://www.investinestonia.com/en/investment-guide/premises-and-infrastructure • http://www.portofpaldiski.ee/files/eng/index_eng.html • http://www.portoftallinn.com/muuga-industrial-park • http://www.silport.ee/general_information.html • http://www.koda.ee/en/services/business-environment/free-trade-zones/ • http://www.sillamae.ee/en/web/eng/sillamae-free-trade-zone • http://www.gencs.eu/news/view/1951