Tougher controls drafted on imports of excise goods

  • 2012-04-17

TALLINN - Before the end of the month, officials will draw up a plan to stop the flow of untaxed fuel, alcohol and tobacco from Russia to Estonia, writes Estonian Public Broadcasting, referring to the Finance Ministry.

Estonia loses tens of millions of euros per year in excise duty, according to the Tax and Customs Board. But the problem is complicated by the fact that bringing goods over the border is not in itself prohibited; only once the untaxed goods are later sold is the legal boundary crossed.

The ministry has not revealed details of the policies yet, but the ideas include setting a minimum time for staying abroad before which excise goods may be brought along upon reentry to Estonia.

Latvia and Lithuania prohibit citizens from entering their countries through Russia with a full tank of gas more than once a week. Otherwise they must declare fuel imports to tax authorities at the border.

Motor fuel costs roughly half as much in Russia as in Estonia. The most active fuel traffickers use large vans with a standard fuel tank size of 170 liters, which means one trip to Russia can bring in around 100 euros in profit. Some make the trip up to 25 times per month.