European Union´s Common Agricultural Policy Implementation Act

The Riigikogu passed the European Union's Common Agricultural Policy Implementation Act on 24 March 2004. The agricultural policy of the European Union is governed by Regulations directly applicable to the Member States. The Act lays down the procedure for implementing the European Union's market intervention measures and the implementing agencies, the bases for granting state aid and the procedure for exercising state supervision in Estonia. Under the Act, the implementing agency for the market intervention measures of the common agricultural policy is the Ministry of Agriculture, and the functions of a paying agency are performed by the Agricultural Registers and Information Board (PRIA). The Act entered into force on 1 May 2004.

The Riigikogu passed the State Participation in Legal Persons in Private Law Act on 24 March 2004. The Act sets forth more strict rules for the exercise of rights of the state in legal persons in private law. The Act sets standards for representation of the state in oversight, as well as remuneration of members of oversight councils and management board members (the remuneration restrictions have only limited application for contracts entered into before the Act became effective), donations paid by the entities to third parties, disclosure of oversight board membership, and rights and obligations of state founders. Persons with state participation and persons exercising the rights of a founder or member must bring their activity and documents into compliance with the Act by 1 October 2004. The Act entered into force on 16 April 2004. The former Act passed in 1996 was repealed.

The Riigikogu passed a new Product Safety Act On 24 March 2004. The Act establishes product safety requirements and the bases for market supervision. The new Act was adopted in connection with Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001. The former Product Safety Act adopted in 1998 was repealed. The new Act entered into force on 1 May 2004. The Regulations issued on the basis of the former Product Safety Act which establish the safety requirements for different products will continue to apply after entry into force of the new Act until their repeal but not later than 1 January 2005.

The Riigikogu passed the Charges On Holders of Surplus Stocks Act on 7 April 2004. The Act was passed with a view to implementing Commission Regulation 1972/2003/EC of 10 November 2003 and Commission Regulation 60/2004/EC of 14 January 2004 laying down transitional measures in respect of trade in agricultural products and in the sugar sector. In order to promote equal competition in the transition period after accession, the Act provides for the requirement to levy charges on holders of surplus stocks of agricultural products, exercise of state supervision and liability for violation of the requirements of the Act. The Act entered into force on 1 May 2004.

The Riigikogu passed the Explosives Act on 24 March 2004. The Act lays down the requirements for the handling of explosives and pyrotechnic substances and for their handlers and establishes the procedure for exercising state supervision. In accordance with Directive 93/15/EEC the Act, requires a conformity attestation procedure when an explosive is placed on the market. The Act also prescribes the terms for bringing the activity and documents of handlers into line with the requirements of the Act. Handlers of pyrotechnic substances must be entered in the register by 1 November 2004. The Explosives Act entered into force on 1 May 2004. The former Act of 1997 was repealed.

The Riigikogu passed the Radiation Act On 24 March 2004. The new Radiation Act was passed in order to bring ionising radiation legislation into compliance with the law of the European Union (Directive 96/29/Euratom) and to solve problems encountered in the implementation of the Radiation Act. Under the Act, persons covered by the Act are required to file an application for a practice licence meeting the requirements established by the new Act with the Ministry of the Environment within six months of entry into force of the new Act. Radiation practice licences issued before entry into force of the new Act will become invalid after nine months of entry into force of the new Act. The Act entered into force on 1 May 2004. The former Radiation Act, adopted in 1997, was repealed.

The Riigikogu passed the Competition Act Amendment Act on 24 March 2004. The purpose of the amendments is to bring the Competition Act into line with the state aid regulation applicable in the European Union. As of Estonia's accession to the European Union, the field of state aid falls within the exclusive competence of the European Union and supervision over state aid will be exercised by the European Commission and no longer by the Estonian Ministry of Finance. The Act provides that as of accession to the European Union, permission to grant state aid must be applied for from the European Commission and state aid reports must also be submitted to the European Commission. The unit dealing with state aid in Estonia will continue its activities with its function being confined to provision of advice. Therefore, applications for permission to grant state aid will be submitted to the European Commission via the Estonian Ministry of Finance. Permission to grant de minimis aid and aid covered by block exemptions is not required. The Act also repeals the substantive provisions of Estonian law that are now covered by European law, such as the definition of state aid, and general and special conditions for granting state aid. The amendments entered into force on 1 May 2004.

The Riigikogu passed the Packaging Excise Duty Act and the State Fees Act Amendment Act on 24 March 2004. The amendments were passed due to Estonia's accession to the European Union on 1 May 2004. To accommodate single market acquis, the provisions regulating the taxation of packaging carried into Estonia from another Member State of the European Union are now part of the Packaging Excise Duty Act. Packaging filled in Estonia and purchased and imported from another Member State is liable to packaging excise duty. The Act also amends the term for submission of reports on the recovery of packaging and establishes a state fee for application for and amendment of a packaging recovery certificate. The amendments entered into force on 1 May 2004.

In March and April 2004, the Minister of Finance issued several Regulations for the implementation of the new Value Added Tax Act that entered into force on 1 May 2004. Among other things, the Minister of Finance established the procedure for maintaining records of taxable supply and supply exempt from tax, the procedure for the refund of value added tax to foreign taxable persons and the format of applications for the refund of value added tax. A majority of the Regulations enacted under the Value Added Tax Act are based on the Regulations in force and contain few changes. VAT Registration of shelf companies will be more difficult as the registration documentation now requires data on actual business activity. The Regulations necessary for the implementation of the new Value Added Tax Act entered into force at the same time with the Act itself, i.e. on 1 May 2004.

In March and April 2004, the Minister of Finance issued a number of new Regulations arising from the amendment of the Alcohol, Tobacco and Fuel Excise Duty Act. The Minister of Finance issued new Regulations and supplemented the applicable Regulations with new provisions due to the specifications of trade between the Member States of the European Union. Also, the Ministry of Finance established the formats of excise warehouse activity licences and activity licences of registered traders by Regulation No. 62 of 7 April 2004 and the formats of reports on the movement of excise goods and stock in the warehouse by Regulation No. 37 of 30 March 2004. The Regulations entered into force on 1 May 2004.

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