CUSTOMS RULES FOR TRAVELLERS ARRIVING IN THE EUROPEAN UNION FROM NON-EU COUNTRIES

CUSTOMS RULES FOR TRAVELLERS ARRIVING IN THE EUROPEAN UNION FROM NON-EU COUNTRIES

DECLARATION OF GOODS Travellers must lodge the traveller s declaration if they have with them: n Goods of a non-commercial nature, with the value exceeding the established tax exempt limit of 300 euros, or in quantities exceeding the established allowable amounts exempt from taxes; for persons travelling by air or sea the tax exempt value limit is 430 euros; n Goods of a commercial nature with the value exceeding 22 euros; n Goods and personal effects subject to import/ export restrictions. Travellers must lodge the customs declaration if they have purchased the goods outside the European Union: n With the value exceeding 1000 euros or in the quantity exceeding 1000 kg; n A motor vehicle. TAXATION Goods imported in travellers personal luggage, except alcohol, tobacco products and fuel, are exempt from customs duty, value added tax and excise duty, if the goods are intended for personal use and the total value of the goods per one person does not exceed 300 euros; for persons travelling by air or sea the tax exempt value limit is 430 euros. Goods brought by travellers in excess of the tax exempt value limit or in quantities exceeding the established allowable amounts shall be subject to customs duty, value added tax and excise duty. If the value of goods subject to customs duty remains below 700 euros the following options of taxation may be selected:

n different rates of duty are applicable to individual goods items based on common customs tariff, or n 2.5% flat rate duty to be applied for the total quantity of all goods. The 2.5% flat rate duty is not applicable if the value of the goods subject to the customs duty exceeds 700 euros or if the goods are brought into Estonia for commercial purposes. NB! The 2.5% flat rate duty is not applicable to tobacco products. QUANTITATIVE LIMITS ON GOODS FOR TRAVELLERS ARRIVING IN ESTONIA FROM NON-EU COUNTRIES Excise goods (alcohol, tobacco products and fuel) may be brought into Estonia exempt from excise duty only if the goods are brought for non-commercial purposes. Excise goods are deemed to be acquired outside the European Union if the travellers have not declared the existence and quantities of excise goods at the exit from Estonia. TOBACCO PRODUCTS: Travellers, who are at least 18 years of age, arriving into Estonia by road either on foot or by motor vehicle, may bring at the first and second entry within a calendar month in their luggage the following quantities of tobacco products: n 40 cigarettes*, or n 100 cigarillos*, or n 50 cigars*, or n 50 grams of smoking tobacco* (incl. Hookah tobacco), n one package smokeless tobacco product on the condition that one package contains no more than 50 grams of the product

Smokeless tobacco product means a tobacco product not involving a combustion process, including chewing tobacco, nasal tobacco and tobacco for oral use. NB! It is allowed to combine the quantities marked with asterisk (*) taking into account that each quantity shall represent 100% of the total allowance and any one traveller may bring along quantities not exceeding 100% of the total allowance. Example of combination: 20 cigarettes representing 50% of the allowed 40 cigarettes + 25 cigars representing 50% of the allowed 50 cigars makes the total allowance of 100%. The Estonian Tax and Customs Board may apply additional exemption from excise duty of the tobacco products except smokeless tobacco product brought into Estonia by a traveller at the third entry within a calendar month, if the traveller proves to the customs officers that the import of tobacco products was of an occasional nature. ALCOHOL: Travellers, who are at least 18 years of age, arriving into Estonia by road either on foot or by motor vehicle, may bring at the first entry within a calendar month in their luggage the following quantities of alcohol: n wine up to 4 litres (except sparkling wine, liqueur wine); n beer up to 16 litres;

n plus 2 litres of alcoholic beverages with alcohol content up to 22% (incl. sparkling wine, liqueur wine),* or n 1 litre of strong alcoholic beverages (with alcohol content exceeding 22%)*. NB! It is allowed to combine the quantities marked with asterisk (*) taking into account that each quantity shall represent 100% of the total allowance and any one traveller may bring along quantities not exceeding 100% of the total allowance. Example of combination: 1,5 litres of alcoholic beverage (strength up to 22% vol.) representing 75% of the allowed 2 litres + 0,25 litres of alcoholic beverage (strength exceeding 22% vol.) representing 25% of the allowed 1 litre form altogether the total allowance of 100%. The Estonian Tax and Customs Board may apply additional exemption from excise duty of alcohol brought into Estonia by a traveller at the second entry within a calendar month, if the traveller proves to the customs officers that the import of alcohol was of an occasional nature. NB! Travellers arriving into Estonia by air, train or sea are not limited by border-crossing frequency at the application of the exemption from excise duty of alcohol and tobacco products.

MOTOR FUEL Travellers arriving into Estonia by motor vehicle (incl. motorised water craft) may bring at the first entry within a calendar month the fuel exempt from excise duty: n in the quantity of the standard fuel tank of a motor vehicle (except liquefied gas, which may be brought in exempt from excise duty also at the subsequent arrivals in Estonia) and n up to 10 litres of motor fuel in a portable container for the consumption in the same motor vehicle. The Estonian Tax and Customs Board may apply additional exemption from excise duty of the motor fuel brought into Estonia by a traveller at subsequent entries within a calendar month if both of the following conditions are met: 1. the traveller has arrived in Estonia for 3 times within the preceding 6 calendar months and 2. import of fuel is not the main objective of the traveller. The motor fuel which is brought into Estonia exempt from excise duty may be used only in the motor vehicle with which it was brought in; taking the fuel out of the vehicle or transfer of this fuel is forbidden. Exemption from excise duty shall not be applied if it becomes obvious from the activities of the holder of a vehicle that fuel is being imported for commercial purposes. CHOOSING BETWEEN THE CUSTOMS CHANNELS Travellers who bring goods that are not subject to declaration or the goods in quantity not exceeding the allowable limits should choose the green channel for border crossing, if a border crossing point has the facilities for choosing between the different customs channels.

Travellers must choose the red channel if they bring: n goods subject to taxation; n goods requiring a special permit, or prohibited goods; n goods in excess of the established quantitative limits. If you are not convinced whether you should declare the goods you have in your luggage or not please choose the red channel! If there are no customs channels in a border crossing point, the travellers must address a customs or border guard officer for presenting the goods for taxation or for showing a required special permit. DEPOSIT OF GOODS Travellers may deposit the goods subject to declaration, if: n they have not enough money to pay the required import duties and taxes n they have no documents required for declaration (e.g. a special permit, etc.) n customs have suitable storage facilities Goods may be deposited with customs for 20 calendar days based on the respective written application submitted by a traveller. Deposit period may be extended by 30 calendar days if a traveller submits a well-founded application in writing to apply for the extension. The following goods will not be taken for deposit: n live animals; n foodstuffs; n firearms and ammunition; n highly flammable substances and explosives;

n radioactive substances and materials; n poisonous substances; n goods and objects that may cause damage to other deposited goods or objects, storage facilities, or to the health of customs officials (decision will be made by the officer accepting goods for deposit); n means of transport. TAX-FREE Travellers arriving from outside of the European Union may buy goods from the tax-free shops under the value added tax (VAT) refund regime. Sale of goods under VAT refund regime means that at the moment of selling VAT is added to price of goods, which later will be refunded to the buyer. VAT refund regime shall take effect when the sales price of the goods including VAT exceeds 38 euros. In proof of the purchase a tax-free shop will give the relevant document to the buyer, which has to be presented to the customs for confirmation when leaving the European Union. The buyer is obliged to take the goods out of the European Union in an intact sales package at least by the end of the third month following the month of purchase. At the request of customs authorities the buyer is obliged to present the goods for inspection in an intact package. Information on VAT refund regime may be obtained from retailers engaged in tax-free sales. Customs help desk: phone +372 880 0814; e-mail: tolliinfo@emta.ee Customs hotline: phone +372 800 4444; e-mail: vihje@emta.ee March 2016