Estonia has moved from a centrally planned economy to a modern and liberalized system. Therefore, consumers' behavior has also changed within years. Estonian consumers remain price sensitive.
Consumer Profile and Purchasing Power
Estonian consumer is attached to price and quite conservative in terms of choice of products (mainly for food and agricultural products). This means that in terms of purchasing attitudes, the Estonian consumer may well prefer local based products (mainly for the food industry and among old age consumers). Young consumers are more open to new types and foreign products. It should be noted as well that the Estonian consumer is used to purchases from internet.
Privately owned wholesale and trading houses are particularly strong in certain specialized sectors, such as electronics, electrical components and instruments, pharmaceutical and health care products, technical products and machinery, and raw materials and chemicals.
Estonia belongs to about 180 international organizations. Estonia has bilateral investment promotion and protection agreements with the USA, Switzerland, Germany, Great Britain, the Czech republic, Austria, Ukraine, Belgium, Luxembourg.
Non Tariff Barriers
In accordance with its European Union membership since May, 1st of 2004, Estonia applies the European Union trade policy such as antidumping or anti-subsidy measures. The European Union import regime applies to Estonia. If Estonia has adopted the main part of the community legislation on May, 1st of 2004, a transitional period has been granted to the country regarding some EU rules like freedom of movement for workers or cabotage inside some countries. For further information about each candidate country’s compliance with the acquis, please consult the Enlargement of the EU Guide to the Negotiations published by the European Commission.
While the European Union has a rather liberal foreign trade policy, some products need import licenses. There are some restrictions, especially on farm products, following the implementation of the CAP (Common Agricultural Policy): the application of compensations on import and export of farm products, aimed at favouring the development of agriculture within the EU, implies a certain number of control and regulation systems for the goods entering the EU territory.
Since its accession to the European Union on May, 1st of 2004, Estonia has adopted the EU Common External Tariff. Consequently, trade with Estonia is totally free from customs duties, provided that the country of origin of the goods is one of the other 27 EU Member States. Nevertheless, when introducing goods into Estonia, exporters shall fill in an intrastat declaration.
When the country of origin of the goods exported to Estonia is not part of the European Union, customs duties are calculated Ad valorem on the CIF value of the goods, in accordance with the Common Customs Tariff (CCT).
The duties for non-European countries are relatively low, especially for manufactured goods (4.2% on average for the general rate), however textile, clothing items (high duties and quota system) and food-processing industry sectors (average duties of a 17.3% and numerous tariff quotas, PAC) still know protective measures.
In order to get exhaustive regulations and customs tariffs regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and all customs trade policy measures for all the goods.
Import Procedures
Most goods can be imported without restrictions. There are restrictions for some, like weapons and dangerous substances.
Imported goods should be cleared off by a writing procedure. The documentation required is: a signed commercial invoice, certificate of origin/goods certificate.
As part of the "SAFE" standards advocated by the World Customs Organization (WCO), the European Union has set up a new system of import controls, the "Import Control System" (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Program eCustomer, has been in effect since January 1, 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.
Importing Samples
Temporary exemption from duty is granted for samples.
The development of transport has been particularly rapid in the last 5 years mostly due to the development of transit trade. The majority of goods are handled in Tallinn port and sea transportation is widely developed within the country.
Telecommunications and IT sectors is one of the fastest growing industry in Estonia. This is due to the penetration of internet use in the country and the will of the government to allow for an e-government.
Biotechnology and the many research centres of Estonia offer great developments for the future of the medical field.
Transit services and logistics are also becoming an increasing industrial sector thanks to Estonia's location.