Estonia, Good for Business, Port, Transport

With regulation no. 50 of the Government of the Republic the list of Muuga Harbour free zone borders and entry and exit coordinates was expanded to extend the free zone area. Presently, 464 km of Muuga Harbor of Port of Tallinn is located in the free zone, the total length of borders corresponding to free zone requirements is 12.7 km.

The construction of the free zone was co-financed by the European Union from the Cohesion Fund resources within the framework of Muuga Harbour eastern part and Industrial Park unification project.

The main advantage of the free zone is a more facilitated procedure of performance of customs formalities. Free zone enables to postpone payment of import taxes until implementation of commercial political measures (for example import licenses) until allowing cargo into free circulation or forwarding it to some other customs procedures. Also, it is possible to store non-European Union cargo passing through Estonia as transit in the free zone, avoiding payment of taxes and implementation of commercial political measures and implement measures accompanying cargo export customs procedure to European Union cargo under export refunds, applied to cargo based on its free zone status (for example payment of export refunds).

In the future, nearly the entire Muuga Harbour area will be a free zone. With the enforcement of the regulation also companies until presently remaining outside of the borders of the free zone, can make use of the free zone advantages.

According to Erik Ringmaa, the chief commercial officer of Port of Tallinn, as of today the Coal Terminal, Katoen Natie and the container terminal of the Transiidikeskuse AS remain on the extended free zone area. "The container terminal was in the free zone already earlier, but due to the increase in the number of container trains, including the recently launched Mitsubishi Kaluga project, free zone extension enables faster preparation of train units," Ringmaa specified.

Ringmaa says that also contracts have been concluded with two companies constructing a fertilizer granulating complex and a warehouse and a production complex into Muuga Industrial Park. In the future, also possible new terminals in Muuga Harbour eastern part remain in the free zone.

Muuga Free Zone operates since 1997.