Fuel and energy
- Document symbol
- G/LIC/N/3/EST/3
- Original language
- English
- Published on
- 15/01/2003
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The licensing of trade in fuel and energy is regulated by the Energy Act and is administered by Energy Market Inspection. The Energy Act does not regulate import of turf and biological fuel.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Imports of fuel and electric energy are subject to non-automatic licensing.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
Licensing is intended to protect the consumers who use the goods covered by the Energy Act.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The licensing of trade in fuel and energy is based on the Energy Act which has been published in Riigi Teataja I 2001 No. 52 Article 303.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
It is up to the applicant to decide when to apply for a licence, knowing that the document will be issued within a maximum of 30 days of receipt of the application in case of starting the activities, and within a maximum of 60 days of receipt of the application in the case of the continuation of the activities.
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
An importer has to approach only one administrative organ in connection with an application.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
None.
Are the reasons for any refusal given to applicants?
The reasons for any refusal are given to the applicant in writing. In the event of refusal to issue a licence, the applicant has a right of appeal pursuant to the procedure provided by law.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All persons, firms and institutions are eligible to apply for import licences except:
market licence for the import of liquid fuel (except liquefied gas) may be applied for and held by an undertaking whose share capital is at least EEK 10 million and who undertakes to store minimum stocks of liquefied fuel if such obligation is prescribed by law.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
In order to be issued a market licence, the applicant shall submit an application to the Energy Market Inspectorate containing at least the following information:
- The business name of the undertaking;
- the address of the seat and place of business;
- the telecommunications numbers;
- the commercial registry code;
- areas of activity according to Energy Act subsection 9(2).
What documents is the importer required to supply with the application?
The following shall be appended to an application:
- A copy of the registry card from the commercial register;
- a copy of the articles of association of the company;
- a statement from the local Tax Board Office certifying the absence of tax arrears;
- the approved annual report for the previous year;
- a list of goods and services which the applicant for a licence intends to sell, export or import which the applicant sells, exports or imports, and turnover of the previous financial year;
- a schematic plan and a description of the licensed territory of the network operator;
- a certificate from the Customs Board confirming the absence of tax arrears if the activity licence is applied for to engage in import;
- written confirmation from the applicant that the applicant has the technical capability and personnel with the necessary skills to operate in the area of activity indicated in the application and that the applicant's activities comply with the environmental protection and occupational safety requirements and other requirements prescribed by legislation.
A company which is being founded shall be issued a market licence for up to two years and the following shall be appended to the application:
- A certified copy of the memorandum of association, foundation resolution or partnership agreement;
- a copy of the articles of association of the company;
- a list of goods and services which the applicant for a licence intends to sell, export or import;
- a schematic plan and a description of the licensed territory of the network operator;
- written confirmation from the applicant that the applicant has the technical capability and personnel with the necessary skills to operate in the area of activity indicated in the application and that the applicant's activities comply with the environmental protection and occupational safety requirements and other requirements prescribed by legislation.
Q11. What documents are required upon actual importation?
Upon actual importation, an importer is required to submit the approved import licence. Upon importation of liquid fuel, the importer is required to submit the certificate of conformity of liquid fuel to the customs authorities. Importation for free circulation, storage and sale of liquid fuel, which does not comply with quality requirements is prohibited.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
- Import and sale of fuel – 30,000 EEK per year
- Import and sale of electric power – 30,000 EEK per year
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issuance of licences.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
A company shall be issued a market licence for up to two years. Market licences are issued for a term of up to five years for import and sale of fuel and for a term of up to 12 years for import and sale of electric power.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
In case an importer has not engaged in the licensed activities during 12 months, the licence will be revoked.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There are no other conditions attached to the issuance of a licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing required prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Foreign exchange is automatically provided by the banking authorities for the goods to be imported.