Regulations
From 1st of May 2004 Estonia belongs to the common customs union of EU. The existence of customs union is guaranteed by the loss of customs taxes, quantitative restrictions and boarder control within the European Economic Community. For the implementation of measures related to import-export to and from the Community an integrated customs tariffs code will be used - TARIC (Tariff Integre Communautaire). For the implementation of TARIC Estonia has adopted an Estonian Customs Tariffs Code, which consists both from measures of Community and from Estonian state measures (e.g. value added tax, excises, internal restrictions). By the import from third countries customs taxes will be implemented, which are based on TARIC.

Customs-approved treatment of goods
Customs-approved treatment or use of goods means:
- the placing of goods under a customs procedure;
- their entry into a free zone or free warehouse;
- their re-exportation from the customs territory of the Community;
- their destruction;
- their abandonment to the Exchequer.
Customs procedure means:
- release for free circulation;
- transit;
- customs warehousing;
- inward processing;
- processing under customs control;
- temporary admission;
- outward processing;
- exportation.
Save as otherwise provided, goods may at any time, under the conditions laid down, be assigned any customs-approved treatment or use irrespective of their nature or quantity, or their country of origin, consignment or destination.

Free zones
According to the Customs Act free zones can be established on the customs territory with the order of the Government of the Republic. Concerning import and export duties, taxes and trade policy measures established for regulating importation, goods in a free zone are considered as being outside the customs territory. As a rule customs procedures are not applied to these goods. A free zone is a territory where the VAT and excise duties (also the possible fees for customs services) do not have to be paid on goods imported and later exported. It allows economizing the current assets. Although the taxes mentioned before will be refunded in case of importing goods outside a free zone, the positive effect coming from saving both time and current assets remains. In Estonia a free zone has been established to Muuga (near Tallinn), Sillamäe (North-East Estonia) and Valga (South Estonia).

More information:
Estonian Tax and Customs Board