Draft law amending the Customs Act (515 SE) – first reading
Session: 15th Riigikogu, 4th session, plenary session
Date: 2024-10-22 16:30
Participating Politicians:
Total Speeches: 39
Membership: 15
Agenda Duration: 29m
AI Summaries: 39/39 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the first reading of the draft law amending the Customs Act, initiated by the Republic's Government, 515. The presenter, Finance Minister Jürgen Ligi, introduced the main objectives of the draft: improving customs supervision, eliminating excessive regulations, and expanding the powers of the Tax and Customs Board (MTA). Significant changes include abolishing the special procedure previously applied to goods imported by the Defence Forces, transitioning to the European Union's unified customs clearance procedure. Also invalidated is the three-year customs supervision obligation on goods imported tax-free by employees of foreign diplomatic missions and international organizations (e.g., furniture, household appliances), as it is administratively burdensome and involves trivial sums. In addition, the circle of MTA employees authorized to wear uniform is expanded, granting this right to the MTA's Director General and instructors at the Academy of the Interior’s finance college. During the debate, most questions arose regarding the expansion of the list of special equipment for the MTA’s investigative department (restraint devices, vehicle forced stop device, technical barrier) and the increase in the fine rate for legal entities for customs offenses from 3200 euros to 100,000 euros. Minister Ligi justified the increase in the fine rate with the need to ensure adequate deterrence, particularly for business entities involved in international trade, where the profitability of illegal activities (e.g., handling liquid fuel) is high. The representative of the Economic Affairs Committee, Kristina Šmigun-Vähi, confirmed that the committee decided unanimously to propose ending the first reading.
Decisions Made 3
The economic affairs committee unanimously proposed Kristina Šmigun-Vähi as the representative of the steering committee.
The Economic Affairs Committee unanimously proposed putting the bill on the plenary session's agenda on October 22nd.
The economic affairs committee unanimously proposed ending the first reading.
Aseesimees Arvo Aller
AI Summary
Let us proceed to the third item on the agenda—this is the first reading of Bill 515 on the amendment of the Customs Act, initiated by the Government of the Republic. The rapporteur is the Minister of Finance, Jürgen Ligi.
Rahandusminister Jürgen Ligi
AI Summary
The objective of the draft bill, as proposed, is to enhance customs surveillance and bring it into compliance with the regulations of the European Union. This includes establishing a special procedure for the customs clearance of goods imported by the Defence Forces based on EU principles; extending the right to wear uniforms to the Director General of the Tax and Customs Board and the lecturers of the Estonian Academy of Security Sciences; increasing the monetary fine for a legal entity up to 100,000 euros; and providing the MTA (Tax and Customs Board) with additional special means.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller announces that there are questions and invites Rene Kokk to take the floor.
AI Summary
Rene Kokk raises one important question: why, under the current draft bill, is the right to wear a uniform being granted to the Director General of the Tax and Customs Board and the employees of the Estonian Academy of Security Sciences, even though this right was previously only granted to the academy's students, what justifications were presented back then, and why this discussion is now coming back to the table years later.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi states that he is not familiar with the history of the matter and has not previously read such a draft bill in his capacity as minister. However, harmonization seems possible if the stakeholders truly desire it, and although there is always a limit that one can grumble about, this draft bill has now been sufficiently grumbled over and submitted.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Kert Kingo to speak.
Kert Kingo
AI Summary
Kert Kingo asks whether the bill, which supplements the list of special equipment available to the customs investigation department with restraint devices, vehicle forced stopping devices, and technical barriers, is intended to eliminate difficulties in detecting violations caused by existing deficiencies, or if it is merely an expansion of the list.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the draft bill must not expand unnecessarily, because in some cases it has been necessary to trouble the police, and the two agencies can fulfill the tasks independently, even though the resources are not the most robust. He submitted it nonetheless, fearing the excessive expansion of authority.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller calls upon Helle-Moonika Helme to speak.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Rapporteur Helle-Moonika Helme claims that the three-year supervision requirement for goods imported with tax benefits should be abolished for all foreign diplomats and individuals arriving to work under international agreements. She argues that this would simplify administrative work, although it might lead to a loss of tax revenue for the state and an increase in tax-free income for certain individuals. She further provides the example that diplomats' cars were previously permitted to be brought into Estonia tax-free after a specific period of time.
Aseesimees Arvo Aller
AI Summary
This is a short appeal whose message is that your time has come.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The question is whether this applies to diplomats of the Republic of Estonia, and whether they can immediately bring a car into Estonia and avoid paying the tax on it.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the purchase of cars for foreign diplomats is of little concern to him, as the sums involved are small, no real oversight has been conducted, and the matter does not fall within the regulatory scope of the draft bill. Therefore, we must focus on much more important areas.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller invites Helle-Moonika Helm to take the floor.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The presentation addresses the tax concessions granted to foreign diplomats and persons arriving to work under international agreements, as well as the rules concerning imported goods. It focuses specifically on the vehicle tax and major regulations, and raises the question of whether cars fall under this category of tax-exempt imported goods subject to a three-year monitoring period.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi provided an example, stating that the regulation aims at the free transfer of assets (like furniture or home appliances before three years have passed, when a person returns home), which would require a customs permit and customs duty. He added that cars are likely not given away for free, and he is verifying whether his understanding matches the reality of the situation.
Aseesimees Arvo Aller
AI Summary
This is a brief request to invite Rene Kokk to speak.
AI Summary
Rene Kokk notes that the new law increases the fine rates for all elements of minor offenses (the previous rates were 200, 2,600, and 1,300 euros), but these are now being raised to 100,000 and 50,000 euros. He asks why such a massive increase was decided upon, noting that while it is understandable that an increase is necessary, the jump seems very large.
Rahandusminister Jürgen Ligi
AI Summary
I believe this mechanism primarily serves as a deterrent, meaning the need for actual implementation arises infrequently. However, the legal provision is necessary and must be proportional to other penalties. A fine of 3,200 euros for a legal entity is often too small to effectively curb its operations and the risk it is willing to take, especially when weighed against the potential profit from illegal activity. This is particularly true in the case of fuels, where profit margins are high and the incentive for smuggling is quite substantial.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Evelin Poolamets to the stage.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets is asking how the amendments to the Customs Act, which raise the fine limits up to 100,000 euros, will ensure both proportionality and deterrence, and whether sufficient impact assessments have been carried out to guarantee that the new fines do not disproportionately harm smaller businesses or sectors where violations are incidental.
Rahandusminister Jürgen Ligi
AI Summary
The state should not be overly concerned with offenders; everyone should weigh the consequences before committing a violation, as punishment may follow. Estonia’s culture of decision-making does not utilize maximum penalties or harass entrepreneurs, but customs violations do present opportunities for revenue generation, and deterrence must be proportional. Furthermore, the fact that this figure has not been changed for 25 years does not imply an infinite magnitude.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller thanked the rapporteur, Kristina Šmigun-Vähi, a member of the Economic Affairs Committee, and asked her to summarize the discussion held in the lead committee.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
Kristina Šmigun-Vähi provides an overview of the Economic Affairs Committee meeting held on October 14, where preparations for the first reading of the government’s draft amendment to the Customs Act (Bill 515) were discussed. The committee also addressed the amounts of monetary fines, the necessity of uniforms, and the supervision of tax-exempt goods. Furthermore, the committee unanimously adopted three decisions: to appoint Kristina Šmigun-Vähi as the representative of the lead committee, to include the bill on the plenary session agenda for October 22, and to conclude the first reading.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller announces that there are questions and invites Rain Epler to speak.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler said that the impetus for changes often emerges in committees, and he recalled the business involving a family member of the former prime minister—which was under scrutiny last year—concerning the transport of vehicles to Russia. He then asked whether expanding customs authorities' powers—allowing them to stop vehicles and detain individuals—would have been more effective in stopping that business at the time.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
The commission did not discuss that specific issue, but fundamentally—as the advisor said—nobody will be monitored or detained arbitrarily; there must be reasons for it.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Kalle Grünthal to speak.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal emphasizes that, from a legal policy standpoint, the state should not interfere in people's lives except when the conventional measures of penal policy fail to yield results. He highlights the contradiction in current practice and questions what facts justify the increase of such harsh fines, and whether this might actually begin to generate more violations.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
Kristina Šmigun-Vähi said that although this question was not discussed directly in the committee, there is a draft bill being adopted to implement the unified European Union customs system, ensuring that customs operates under a single system across the entire EU.
Aseesimees Arvo Aller
AI Summary
Lauri Laats raises a procedural question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
He raised a procedural question, noting that the Tuesday sessions have been extended and that all agenda items cannot be reviewed in two weeks, and asked the board to take the substantive time requirement into account before approval and adjust the agenda accordingly.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller stated that the items on Tuesday's session agenda are being moved to Wednesday, and if anything remains unaddressed, it will proceed on Wednesday.
Kert Kingo
AI Summary
Kert Kingo asked the committee whether there had been a thorough discussion regarding the need for specialized weaponry for the Customs Investigation Department, and whether the existing police resources—such as restraint devices, vehicle immobilization tools, and technical barriers—might lead to the blurring of lines between Customs and the Police.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
Thank you, but unfortunately, that topic was not covered separately.
Aseesimees Arvo Aller
AI Summary
Kalle Grünthal is mentioned in the speech.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal asks why the penal policy is being changed in such a way that fines increase even in the absence of violations, referencing the harmonization of the European Union directive. He asks what the difference is between the Soviet Union and the European Union if the same regulation applies in both, and expresses concern that Estonia's independence will eventually no longer be able to be exercised.
Kristina Šmigun-Vähi
Profiling Eesti Reformierakonna fraktsioonAI Summary
He said that the fine rates would be increased so that the Tax and Customs Board would have greater discretion when responding to violations committed by companies involved in international trade, and that this would establish a unified framework and higher penalty amounts.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller concluded the session, stating that there were no further questions, there was no longer time to address any procedural matters, and the session was therefore concluded—wishing success to the committees.