Macroeconomic trade context (2023–2024 data)

Annual trade volume

• Total trade (2023): €165.5 billion
• Exports: €82.1 billion (↓ 8% from 2022)
• Imports: €83.4 billion (↓ 13% from 2022)
• Trade balance: €1.3 billion deficit (first deficit since 2011)
• Trade-to-GDP ratio: about 65% (down from 75% before 2022)

Geographic distribution, 2023

Export markets

Import origins

Detailed export product analysis

A. Technology and electronics (€22.4 billion, 27.3%)

B. Forest industry (€18.9 billion, 23.0%)

C. Metal and engineering (€16.2 billion, 19.7%)

D. Chemical industry (€12.8 billion, 15.6%)

E. Other sectors (€11.8 billion, 14.4%)

Detailed import product analysis (2023)

A. Raw materials and intermediate goods (€42.3 billion, 50.7%)

B. Capital goods (€18.9 billion, 22.7%)

• Passenger car origins: Germany 28%, Sweden 19%, Japan 15%, South Korea 12%, others 26%

C. Consumer goods (€22.2 billion, 26.6%)

Trade procedures and regulations: deep dive

A. Customs declaration process

1. Pre-arrival requirements

• ENS (entry summary declaration): required 24 hours before loading for maritime transport, 4 hours for air and 2 hours for road and rail
• Data elements required (42): consignor and consignee EORI numbers, commodity codes (8–10 digit CN codes), goods description, package information, transport document numbers, container numbers, seal numbers, place of loading and unloading, and expected arrival date
• Risk analysis: Finnish Customs’ risk management system (TARVO) screens all declarations
• Targeting criteria: origin, commodity, trader history and transport route
• Pre-loading inspections: possible at foreign ports for high-risk shipments

2. Customs declaration filing

• UI system: Finnish Customs’ primary declaration service (90% of declarations)
• Web UI: for occasional declarants
• Direct API integration: for large operators (ERP system integration)
• Customs broker systems: authorised broker networks

Declaration types

• Import, SAD (Single Administrative Document): full declaration (Form C1)
• Import, simplified declaration: for authorised traders (followed by a supplementary declaration)
• Import, local clearance procedure: for AEO holders
• Export declaration: required for goods leaving the EU
• Intrastat declaration: for intra-EU trade above the thresholds (€900,000 arrivals / €450,000 dispatches)

Timeline requirements

• Import: the declaration must be lodged before the goods arrive or within 3 days for maritime, 1 day for air and immediately for road and rail
• Export: before the goods leave the EU

3. Document requirements matrix

4. Customs valuation methods (hierarchy)

1. Transaction value (the price actually paid): the primary method
2. Transaction value of identical goods
3. Transaction value of similar goods
4. Deductive method (resale price in the EU)
5. Computed method (production cost plus)
6. Fallback method (reasonable means)

• Adjustments to transaction value: commissions and brokerage (except buying commissions); packing costs; royalties and licence fees; assists (materials, tools and designs supplied free); subsequent proceeds to the seller

5. Origin determination

• Non-preferential, wholly obtained: for minerals, agricultural products and live animals
• Non-preferential, substantial transformation: the last substantial, economically justified processing
• Change in tariff heading: the general rule
• Value-added rules: a minimum percentage (varies)
• Preferential origin, EU FTAs in force: Canada (CETA), Japan (EPA), UK (TCA), Singapore, Vietnam and others
• Cumulation systems: bilateral, diagonal and full cumulation
• Proof of origin: statement on origin (for registered exporters), EUR.1 certificate (for non-registered exporters) and importer’s knowledge (for certain FTAs)

B. Taxation and duties calculation

1. Customs duty calculation

• CN code structure: 8-digit (EU) + 2-digit (national) = 10-digit TARIC code
• Binding Tariff Information (BTI): valid for 3 years and legally binding
• Annual duty changes: published in the EU Official Journal
• MFN rates: standard WTO rates
• Preferential rates: FTA rates (often 0%)
• Suspensions and quotas: for certain raw materials
• Agricultural components: additional duties on agricultural products
• Anti-dumping and countervailing duties: additional duties against unfair trade

2. VAT treatment

• Import VAT: 24% standard rate
• Reduced rates: 14% (food, restaurants) and 10% (pharmaceuticals, books, cultural services)
• Zero rate: exports and intra-Community supplies
• Immediate payment: at customs clearance
• Postponed accounting: for VAT-registered businesses (the most common option)
• Special arrangements: for returned goods and temporary imports

3. Excise duties

• Alcohol: €0–15.66 per litre of pure alcohol (depending on type)
• Tobacco: a minimum of €90 per 1,000 cigarettes + 21.5% of the retail price
• Energy products (mineral oils): €0.70 per litre of petrol, €0.48 per litre of diesel
• Electricity: €0.30/MWh
• Packaged beverages: €0.51 per litre for non-reusable packaging
• Suspension arrangements: tax warehouses, registered consignees and duty-free sales

C. Special procedures and regimes

1. Customs procedures with economic impact

• Inward processing (IP): duty exemption on goods imported for processing and re-export; authorisation required (demonstrate economic need); records must be kept for 3 years; if the goods enter the EU market, duty is paid on the imported components
• Outward processing (OP): temporary export for processing, then re-import with duty relief on the value added abroad; common for textiles and electronics assembly
• Processing under customs control: for goods that change classification after processing; the duty rate of the final product applies
• Temporary admission: full relief for exhibitions, professional equipment and containers; partial relief in other cases; time limit generally 24 months
• End-use: duty relief for goods for specific purposes (aircraft parts, sea fishing); customs supervises the use

2. Storage procedures

• Customs warehousing: Type A public warehouses and Type C private warehouses; no duties or taxes until release for free circulation; time limits generally unlimited
• Helsinki Free Port: 75 hectares, 3.5 million tonnes capacity
• Turku Free Port: 45 hectares
• Free zone benefits: considered outside the EU customs territory; storage, processing and manufacturing allowed

3. Simplified procedures

• Authorised Economic Operator (AEO), benefits: fewer physical and document checks, priority treatment, mutual recognition with third countries, may act as indirect representative
• AEO categories: AEO-C (customs: simplified procedures), AEO-S (security: security simplifications) and AEO-F (full: both customs and security)
• AEO requirements: compliance record, satisfactory accounting system, financial solvency, appropriate security standards and practical standards of competence
• Simplified declaration: 7 data elements initially; supplementary declaration within 10 days of release; for regular importers with good compliance
• Centralised clearance: a single declaration for several Member States; requires AEO status
• Self-assessment: traders calculate their own duties; monthly payment; requires a comprehensive guarantee

D. Sector-specific regulations

1. Food and agricultural products

• Border control posts (BCPs): Helsinki Port (maritime imports), Helsinki Airport (air imports) and Vaalimaa (road imports from Russia)
• Required checks: document, identity and physical
• TRACES system: mandatory for live animals, animal products and plants; pre-notification before arrival; electronic Common Health Entry Document (CHED)
• Maximum residue levels (MRLs): pesticides, EU Regulation 396/2005; veterinary drugs, Regulation 470/2009; contaminants, Regulation 1881/2006
• Labelling: Finnish and Swedish mandatory; allergens highlighted; nutrition declaration mandatory; origin labelling for certain products

2. Chemicals

• REACH Regulation: registration above 1 tonne a year per substance; evaluation by ECHA; authorisation for substances of very high concern; restriction of hazardous substances
• CLP Regulation: classification, labelling and packaging; hazard pictograms and signal words; safety data sheets
• Prior Informed Consent (PIC): for exports of hazardous chemicals; notification to the importing country

3. Dual-use goods

• Control list: based on EU Regulation 2021/821
• Categories: 0–9 (nuclear, chemicals, electronics, etc.)
• Authorisation types: individual (specific transactions), global (multiple shipments to the same end-user) and general (certain destinations and items)
• Catch-all clause: for non-listed items intended for WMD purposes

4. Cultural goods

• Export licence: for items more than 50 years old that exceed the value thresholds
• Thresholds: paintings €150,000; other items €50,000; archaeological items at any value
• Import controls: for items from conflict zones

E. Digital systems and technology

1. Finnish Customs systems

• UI system: covers 90% of all declarations; declarations, requests, messages and payments; integrated with other government systems
• JETI system: transit declarations (NCTS Finland) and TIR operations
• TARVO risk management system: 500+ active risk rules; 3.2% of imports selected for control; machine learning for anomaly detection
• API access: real-time information (customs status, tariff data), bulk data submission for large operators and system-to-system links for integrated logistics

2. EU-wide systems

• Customs Decision System (CDS): phased implementation over 2023–2025; replaces existing EU customs systems; enhanced data and better risk management
• Import Control System 2 (ICS2): phase 3 from March 2024; advance cargo information (pre-loading and pre-arrival); security filings for all modes of transport

3. Blockchain initiatives

• Tradeability Platform (Finnish Customs blockchain): for cross-border exchange of trade documents
• Features: digital documents, smart contracts and an audit trail
• Participants: customs, traders, banks and logistics companies

F. Compliance and enforcement

1. Audit framework

• Annual audit plan: 800–1,000 company audits
• Selection criteria: turnover, risk profile, sector and anomalies
• Types: desk audits, on-site visits and sector-wide campaigns
• Notification: usually 30 days’ advance notice
• Scope: customs, VAT, excise and origin
• Duration: 2 days to several weeks
• Findings: a report with corrections, and penalties if applicable

2. Penalty regime

• Negligence versus fraud: different penalty levels
• Mitigation: voluntary disclosure reduces penalties
• Corporate liability: companies can be fined

3. Dispute resolution

1. Rectification request: to the customs office within 60 days
2. Administrative appeal: to Customs within 30 days of the decision
3. Court appeal: to the administrative court within 30 days

• Alternative dispute resolution: for Binding Tariff Information, origin and valuation disputes

Emerging trends and developments

The targets and timetables below are those identified when this analysis was prepared in early 2024.

A. Strategic shifts

1. Energy independence: a target of completely phasing out Russian energy imports by 2024
2. Arctic corridor development: €3 billion of investment in northern logistics infrastructure
3. Circular economy: the EU’s most advanced circular economy, with a target of 100% packaging recyclability by 2025

B. Digital transformation

1. Full customs digitalisation: a target of 100% paperless by 2025
2. AI implementation: predictive analytics for risk management
3. IoT integration: real-time tracking of high-value shipments

C. Sustainability initiatives

1. Carbon Border Adjustment Mechanism (CBAM): phased implementation over 2023–2026
2. Deforestation Regulation: due diligence for forest-risk commodities
3. Sustainable finance: green export credits and guarantees

D. Trade agreement developments

1. New EU FTAs: under negotiation with Australia, Mercosur and India (as of early 2024)
2. Nordic cooperation: enhanced Nordic trade facilitation
3. UK relations: ongoing adaptation to TCA implementation

Key resources and contacts

Official authorities

1. Finnish Customs (Tulli), www.tulli.fi: trade statistics database, tariff classification tool and customs code search · contact +358 29 520 01
2. Finnish Food Authority (Ruokavirasto), www.ruokavirasto.fi: import requirements for food; plant and animal health
3. Finnish Patent and Registration Office (PRH), www.prh.fi: IP protection and company registration

Practical tools

1. Tulli’s UI service: direct declaration portal
2. TARIC database: the EU’s integrated tariff
3. Market Access Database: EU export requirements by country
4. Export Helpdesk: EU import requirements for emerging countries

Note: this analysis is indicative of the state of Finnish trade as of early 2024. The landscape continues to evolve, particularly in response to geopolitical changes, digital transformation and sustainability imperatives.

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