TARGET FINLAND

Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now on par with Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999.

Population : 5,238,460

ECONOMY OVERVIEW

Finland has a highly industrialized; largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; exports equal two-fifths of GDP. Finland excels in high-tech exports, e.g., mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. High unemployment remains a persistent problem.

GDP : Euro 167.9 billion (2006) (Source: Finland – India

Business Guide July 2007)

 

GDP growth rate :5.5% (2006)

GDP Per Capita: Euro31886 (2006)

GDP Composition by sector :

Agriculture: 2.7%

Industry: 30.3%

Services: 67%

Exports: Euro 61.4 billion (2006)

 

Main Items of Exports:

Electrical and optical equipment; pulp, paper and paper products; basic metals and fabricated metal products; machinery &equipment

 

Major Export Partners:

Germany 11.3%, Sweden 10.5%, Russia 10.1%, UK 6.5%,

US 6.5%, Netherlands 5.1% (2006)

 

Imports : Euro 54.8 billion (2006)

 

Main Items of Import:

Electrical and Optical equipment; products from mining and quarrying; basic metals and fabricated metal products; transport equipment; chemicals

 

Major Import Partners :

Germany 15.6%, Russia 14%, Sweden 13.7%, Netherlands

6.6%, China 5.4%, UK 4.7%, Denmark 4.5% (2006)

				BILATERAL TRADE		
						  (Values in US$ Million)
Particulars			2002-03		2003-04	 2004-05	2005-06	2006-07
EXPORT 			71.14		111.27	143.54	204.69	194.31
%Growth	 				56.41	29	42.6	-5.07	
India’s Total Export 		52,719.43		63,842.97	83,535.94	103,090.54   126,361.46	
%Growth	 				21.1	30.85	23.41	22.57	
%Share 			0.13		0.17	0.17	0.2	0.15
IMPORT 			199		270.09	388.81	583.48	609.79	
%Growth	 				35.73	43.95	50.07	4.51	
India’s Total Import 		61,412.13		78,149.61	111,517.44	149,165.73	185,749.30	
%Growth	 				27.25	42.7	33.76	24.53	
%Share 			0.32		0.35	0.35	0.39	0.33
TOTAL TRADE 		270.14		381.37	532.35	788.17	804.1	
%Growth	 				41.18	39.59	48.05	2.02	
India’s Total Trade 		114,131.56		141,992.58	195,053.38	252,256.27	312,110.76	
%Growth	 				24.41	37.37	29.33	23.73	
%Share 			0.24		0.27	0.27	0.31	0.26

TRADE BALANCE 	  	  	  	  	  	
India’s Trade Balance 		-8,692.70		-14,306.65	-27,981.49	-46,075.19	-59,387.85
Exchange rate: (1US$ = Rs.)	48.3953		45.9513	44.9315	44.2735	45.2495

Major Items of Exports from India to Finland

Pharmaceutical Products (USD 27.83 million); Apparel & Clothing (USD 22 million); Misc. Edible Items (USD 13 million); Organic Chemicals (USD 12 million); Textiles (USD 10 million); Nuclear Reactors/ Boilers (USD 10 million); Articles of Iron & Steel (USD 10 million)

Major Items of Imports to India from Finland

Electrical Machinery & Equipments (USD 267 million); Nuclear Reactors/ Boilers (USD 121 million); Paper & Paperboard (USD 68 million); Optical/ Photographic/ Cinematographic Apparatus (USD 31 million); Ships/ Boats/ Floating Structures (USD 27 million); Pulp of Wood (USD 17.6 million)

BILATERAL AGREEMENTS

Following are the Bilateral Agreements between India and Finland

  1. Trade Agreement (1967)

  2. Agreement on hand-woven cotton fabrics (1968)

  3. Agreement on Avoidance of Double Taxation (1974), last amended in 1997

  4. Setting up of the India-Finland Joint Commission (1974)

  5. Cultural Agreement (1983)

  6. MOU on Textiles (1993)

  7. A bilateral agreement on Promotion & Protection of Investments was signed on 7th Nov 02 at New Delhi

Duties, Tariffs and local restrictions

The website of customs (www.tulli.fi) can be used to see the tariff on items.

Instructions:

-> ww.tulli.fi/en

-> Shortcuts: DDS Databases

-> TARIC

-> Taric Code

-> choose the item with "Browse"

-> choose "India" as country of origin

-> click "Duty rates"

The information given by the website:

- Third country duty (%)

- Supplementary unit import

- Airworthiness tariff suspension

- Tariff preference (SPGL, %)

 

How the duty is calculated:

The price of the product in India + freight charges until the first harbor in the European Union

In addition to the duty fees, the Value Added Tax is applied. The standard rate for VAT in Finland is 22%. In some cases it can be 17% (foodstuffs and animal feed) and 8% (books, medicines, sporting events etc.).

The Generalized System of Preferences (GSP)

The preferential import duty rates are applicable when a valid certificate of origin (Form A) is presented at the moment of importation in the European Union. This preferential import duty rate is normally lower than the standard import duty rate for the same product. India has a GSP with EU.

Source: http://europa.eu.int/comm/taxation_customs

Form A

Form A is a certificate of origin. It is also known as the GSP Form. The forms should be available at the government trade office or the Chamber of Commerce.

Laboratory checks

For certain textiles and yarn.

Price 300 euros (in some cases 410 euros).

USEFUL LINKS

Embassy of India in Finland (www.indianembassy.fi)

Embassy of Finland in India (www.finland.org.in)

Up-to-date and valid information about legislation in the European Union (http://europa.eu.int/eur-lex/en/ )

Up-to-date and valid information about legislation in Finland (http://www.finlex.fi/en/ )

 

NOTIFICATION NO 42/2007-Service Tax, Dated: November 29, 2007

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 41/2007-Service Tax, dated the 6th October, 2007 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 645(E) dated the 6th October, 2007, namely:-

In the said notification, in the Schedule, after Sr.No.7 and the entries relating thereto, the following shall be inserted, namely:-

(1) (2) (3) (4)

"8.

Section 65(105)

(zzzd)

Specialized cleaning  services namely  disinfecting,  exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter. 

(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said  goods requiring such specializedgoods  requiring such specialized cleaning  of containers used for export of said  goods; and (ii) the service provider  is accredited by the competent  statutory authority to provide such specialized cleaning services.

9. 

Section 65(105)

(zza)

Services provided for storage and warehousing of said goods.

(i) the said goods are stored in a  approved by the competent   authority; and (ii) the storage or  warehouse is exclusively used for the purpose of storage or warehousing of export goods. "

2. This notification shall come into force on the date of its publication in the Official Gazette.

CHAMBERS OF COMMERCE IN FINLAND

 

The Central Chamber of Commerce, which is a national co-operation body of the various Chambers of Commerce in Finland.

The Central Chamber of Commerce of Finland

Address: World Trade Center, 

Aleksanterinkatu 17, 00101 Helsinki

Telephone: +358 9 696 969

Fax: +358 9 650 303

Email:keskuskauppakamari(at)wtc.fi

Internet: www.chamber.fi

Managing Director: Mr. Kari Jalas 

(telephone: +358 9 696 96618)

 

Helsinki Chamber of Commerce

Address: Kalevankatu 12, 00100 Helsinki

Telephone: +358 9 228 601

Fax: +358 9 2286 0228

Email:kauppakamari(at)helsinki.chamber.fi

Internet:www.helsinki.chamber.fi

Managing director: Mr. Heikki Perälä

 

Keski-Suomi Chamber of Commerce

Address: Sepänkatu 4, 40100 Jyväskylä

Telephone: +358 14 652 400

Fax: +358 14 652 411

Internet: www.centralfinlandchamber.fi

Managing Director: Mr. Uljas Valkeinen

Tampere Chamber of Commerce

Address: Kehräsaari, 

33200 Tampere

Telephone: +358 3 2300 556

Fax: +358 3 2300 550

Internet:www.tampere.chamber.fi

Managing Director: Mr. Kristiina Jaatinen

 

Turku Chamber of Commerce

Address: Puolalankatu 1, 20100 Turku

Telephone: +358 2 274 3400

Fax: +358 2 274 3440

Internet: www.turku.chamber.fi

Email: kauppakamari(at)turku.chamber.fi

Managing Director: Mr. Jari Lähteenmäki

 

The Finnish Section of the International Chamber of Commerce

Address: Aleksanterinkatu 17

Telephone: +358 9 669 459

Fax: +358 9 6969 6647

Email: icc(at)icc.fi

Internet: www.iccfin.fi

General Secretary: Mr. Timo Vuori

MAIN PORTS IN FINLAND

The Finnish Port Association

Address: Toinen linja 14, 00530 Helsinki

Telephone: +358 9 7711

Fax: +358 9 753 0474

Email: info(at)finnports.com

Internet: www.finnports.com

Managing Director:

Mr. Matti Aura

(p. +358 9 771 2274)

 

Port of Helsinki

Address: P.O. Box 800, 00099 Helsinki

Telephone: +358 9 173 331

Fax: +358 9 1733 3232

Email: heikki.nissinen(at)hel.fi

Internet: www.portofhelsinki.fi

Port director: Mr. Heikki Nissinen

 

Port of Kotka

Address: Laivurinkatu 7, 48100 Kotka

Telephone: +358 5 234 4280

Fax: +358 5 218 1375

Email: office(at)portofkotka.fi

Internet: www.portofkotka.fi

Port director: Mr. Kimmo Naski

Port of Naantali

Address: Satamatie 13,

21100 Naantali

Telephone: +358 2 437 5511

Fax: +358 2 435 1727

Email:yrjo.vainiala(at)naantali.fi

Internet: www.naantali.fi/satama

Port director: Mr. Yrjö Vainiala

 

Port of Pori

Address: Merisatamantie 13, 

28880 Pori

Telephone: +358 2 621 2600

Fax: +358 2 621 2630

Email: info.port(at)pori.fi

Internet: www.pori.fi/port

Port director: Mr. Harri Virta

 

Port of Raahe

Address: Lapaluodontie 342, 92180 Raahe

Telephone: +358 8 439 3931

Fax: +358 8 439 3932

Email: sakari.kleimola(at)raahe.fi

Internet: www.portofraahe.fi

Port director: Mr. Sakari Kleimola

USEFUL ADDRESSES

Embassy of India in Finland

Embassy of India

Satamakatu 2A8, 00160

Helsinki, Finland

Tel: +358 9 228 9910

Fax: +358 9 622 1208

Email:indianembassy@indianembassy.fi; eoihelsinki@indianembassy.fi

Website: www.indianembassy.fi

Embassy of Finland in India

Embassy of Finland

E-3, Nyaya Marg

Chanakyapuri

New Delhi – 110 021, India

Tel: +91 11 4149 7500

Fax: +91 11 4149 7555

Email: sanomat.nde@formin.fi

Website: www.finalnd.org.in

Source: 1. Embassy of India in Finland website

2. Finland – India Business Guide July 2007

3. CIA Fact Book

 

Federation of Indian Export Organisations
New Delhi, INDIA.