Estonia: Customs Act

The Riigikogu passed the Customs Act on 13 April 2004. The Act accommodates Estonia's accession in to the European Union, establishing customs rules only in respect of issues that fall within the competence of a Member State. All other customs issues are now regulated by community law. The Customs Act regulates matters related to the administrative and challenge proceedings and representation as well as to the activities of customs agencies. Further, the Act lays down the customs control measures, addresses issues concerning security to cover customs debt, and establishes liability for violations of the customs rules. The Act entered into force on 1 May 2004.

The Riigikogu passed the Investment Funds Act on 14 April 2004. The Act harmonizes Estonian law with Council (EC) Directive 85/611/EEC. It creates better opportunities for undertakings to establish several new investment funds different from those already available (for example, a contractual real estate fund or a venture capital fund) and is therefore expected to promote the creation of new investment funds in Estonia. The Act also abolishes attestation of management companies, strengthens regulation of cross border activities of management companies, and introduces regulation of bidding of units of foreign investment funds in Estonia. The new Investment Funds Act entered into force on 1 May 2004.

The Riigikogu passed the Gender Equality Act on 7 April 2004. The Act prohibits gender discrimination in all spheres of social life (with the exceptions of religious associations, and family and private life). and imposes an obligation on employers to implement measures to ensure gender equality. A gender equality commissioner as an impartial expert will exercise supervision over and provide opinions on the implementation of the Act. The rules of procedure for the commissioner will be established in the statutes to be approved by the Estonian Government. The Minister of Social Affairs appoints the commissioner to office for a term of five years. The Act entered into force on 1 May 2004.

The Riigikogu passed the Funded Pensions Act on 14 April 2004. As of 1 May 2004, the new Investment Funds Act provides the regulation of pension funds as a type of investment funds and hence the corresponding provisions were deleted from the Funded Pensions Act. The new Funded Pensions Act establishes the rights and obligations of unit-holders of pension funds. The Act establishes the conditions and procedure for making contributions to and payments from funded pensions and regulates entry into pension insurance contracts. In comparison with the former Act, the subject of contributions has been extended: funded pension contributions may also be made by sole proprietors. The Act entered into force on 1 May 2004.

On 18 December 2002, the Riigikogu passed an Act to amend the Aliens Act and related Acts. The amendments harmonize the Act with EU law. According to the amendments, an alien may be employed for up to six months per year as a member of the governing body of a legal person registered in Estonia without being issued a work permit and residence permit for employment and without registration of his or her temporary employment with the Citizenship and Migration Board. Further, as of 1 May 2004, Estonian citizens may cross the borders between the Member States on the basis of a valid identity card (ID card) issued by the Republic of Estonia. A passport is required for travel outside the European Union. As of 1 May 2004, citizens of the European Union, of the countries party to the European Economic Area Agreement (EEA) and of the Swiss Confederation may enter Estonia using a passport or an identity card. The amendments entered into force on 1 May 2004, except for the provisions that enter into force on 1 March 2005 or on Estonia's full accession to the common visa area of the European Union.

The Riigikogu passed the Public Service Act Amendment Act on 14 April 2004. In connection with Estonia's accession to the European Union, he amendments ensure that the citizens of the Member States of the European Union have equal access to jobs in the public sector in Estonia. Only citizens of Estonia, however, may be appointed to positions, which involve the exercise of public authority and the protection of public interests. The Amendment Act lists such positions. The amendments entered into force on 1 May 2004.

The Riigikogu passed the Road Transport Act and the State Fees Act Amendment Act on 14 April 2004. The purpose of the Amendment Act is to bring the Act into line with EU law, to harmonise it with the Public Transport Act and to improve the quality of its text. The Amendment Act imposes more strict standards for obtaining and maintaining licenses for public transport activities. In addition, it is provided that road transport licences and licence cards are issued by the Ministry of Economic Affairs and Communications, although the Estonian Government may also authorise a non-profit association to issue the said documents. At present, an administration contract for the issue of activity licences is in effect with the Association of Estonian International Road Carriers. According to the amendments, carriers organising international road transport must have transport permits issued by the corresponding countries of destination and transit. There are also changes with respect to license fees. The amendments entered into force on 7 May 2004.

The Riigikogu passed the Health Services Organisation Act Amendment Act on 14 April 2004. The amendments enable persons who have acquired their qualifications in a Member State of the European Union, a country party to the European Economic Area Agreement and Switzerland to provide health services in Estonia. Those providing such services on a permanent basis must register with the Health Care Board. The amendments entered into force on 1 May 2004.

On 8 April 2004, the Riigikogu passed an Act to amend the Food Act and related Acts. The purpose of the amendments is to bring the Food Act into compliance with the EC law by removing certain handling permit and import license requirements, and repealing provisions that are now covered by European regulation, with appropriate references made to European law. In order to bring the Act into line with the applicable Directives of the European Union, the provisions of the Act regarding supervision, food for particular nutritional uses, additives and labelling as well recognition have been supplemented. The amendments entered into force on 1 May 2004.

The Riigikogu passed the Water Act Amendment Act on 15 April 2004. The adoption of the amendments was necessary in order to bring the Act into compliance with the applicable water legislation of the European Union and to address the shortcomings of the Act with regard to the conduct of water studies, the use of fertilizers, the conduct of hazardous substances to receiving bodies of water, and water protection and use. According to the amendments, the Estonian Government may, at the request of an owner of immovables and with the consent of the local government, exclude a body of water or its part from the list of bodies of water for public use. Local governments will be entitled to restrict the use of a body of water for public use if there is a danger to the health of people or to security. Also, the amendments specify the conditions for undertakings handling hazardous substances and define the conditions for the amendment of permits for special use of water. The amendments entered into force on 1 May 2004.

On 7 April 2004, the Riigikogu passed an Act to ratify the Agreement on the participation in the European Economic Area. By adopting the Act, the Riigikogu approved Estonia's participation in the European Economic Area. The Agreement was entered into on 14 October 2003 in Luxembourg. Under the Agreement, the common market of the European Union also extends to the three EFTA states - Norway, Island and Liechtenstein, which are not members of the European Union.

On 7 April 2004, the Riigikogu passed an Act to accede to the Convention concerning International Carriage by Rail (COTIF). The COTIF convention is a system of uniform legal rules concerning the international carriage of passengers, baggage and goods by rail. The uniform rules of the Convention also apply to related carriage by road and water. The parties to the COTIC constitute the Intergovernmental Organisation for International Carriage by Rail (OTIF). The purpose of Estonia's accession to the COTIF is to establish for the Estonian western-bound international carriage by rail the same regulation that applies to the Member States of the European Union and to other states party to the COTIF and thus facilitate better rail transit.

On 24 March 2004, the Riigikogu passed an Act to ratify the European Convention on Social and Medical Assistance and its Protocol. By the Act, the Riigikogu approved the Convention on Social and Medical Assistance and its Protocol completed in Paris on 11 December 1953 and signed by the Republic of Estonia in Strasbourg on 1 December 1999. The Contracting Parties undertake to ensure that nationals of the other Contracting Parties who are lawfully present in any part of its territory and who are without sufficient resources shall be entitled equally with its own nationals and on the same conditions to social and medical assistance. The Convention also establishes the conditions and procedure for the repatriation of persons in need of assistance. The Convention and its Protocol come into force in respect of Estonia on the first day of the month following the date of the deposit of its instrument of ratification.

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