(Last updated: 11 Feb 2010)

Business etiquette

Business tips

Generally speaking the Finns, like other people of the Nordic countries, have a lot in common with Australians. They are straightforward, easy to get along with and are fond of nature and sports. Visitors from Australia will find themselves more at home in Finland than in many other countries.

Business practices:

• Most business-people have tight schedules and many commitments and it is advisable to seek appointments well in advance of your visit.
• Punctuality is required both for business and social appointments.
• First name terms are more common in younger, modern businesses than in traditional circles or at formal occasions, but if you are unsure, leave it to your host to suggest first names.
• General greetings are by handshake, stating clearly both your first name and surname.
• It is customary to offer your business card at the commencement of a meeting.
• Decision-making is frequently by consensus, therefore, on the spot decisions are rare and attempts to force a decision will be counter productive.
• Business dress can vary within Finland depending on the type of industry.  Generally for a first meeting formal business dress is most appropriate. 

Social customs:

• If invited to a home it is customary to bring flowers or a small gift. If tradition is followed, at the dinner table the host will say a few words of welcome and at the end of the meal it is customary for the guest-of-honour to make a short speech thanking the host for their hospitality.
• Finns frequently thank the host of a previous dinner during subsequent contact or by a follow up phone call or written note.
• At a formal dinner one should not drink from a glass on the table until the host properly welcomes the guests.
• The Nordic custom of toasting individuals around the table is often practiced and it is good manners to reciprocate, holding eye contact for a suitable period.
• Eating out is expensive especially in the evening with spirits prices being exorbitant.
• Most restaurants serve a value-for-money daily lunch on a set basis, but these are not really suitable for entertaining business contact and you should choose the a-la-carte menu.
• Most hotels have sauna facilities for guests at no extra charge.  If you are invited by your host to their sauna you should know that the Finns take their sauna very seriously especially during summer evenings at their lakeside saunas. 
• The annual vacation period occurs from late June to beginning of August and should be avoided, as appointments will be difficult to arrange. This also applies to the Christmas–New Year period.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Tariff based on the Harmonised System. Most duties are ad valorem, assessed on the CIF value (Incoterms 1990). The EU has preferential agreements.

Duties and other import taxes are levied on the customs value of the goods at the point of importation. The customs value is based on the transaction value of the goods imported. In practice, the cost, insurance and freight (CIF) value is commonly used as the customs value. To assess customs value, the place of importation must be indicated. In the case of sea and air cargo, the place of importation is the unloading location. In surface transportation, it is the Customs Office at the frontier.

Customs authority contact details:
National Board of Customs
PO Box 512
FIN-00101 Helsinki
Tel: +358 9 6141
Fax: +358 20 492 2852

Non-tariff barriers

Finland’s adoption of European Union (EU) internal market practices in 1995, defines Finland’s trade relations both inside the EU and with non-EU countries. Finland’s import trade was not greatly affected by EU membership. Changes dealt with border protection procedures related to non-EU countries.

Most restrictions concern import of certain types of steel, in particular from the Commonwealth of Independent States (CIS), as well as import of certain articles from China. The restrictions are in the form of quotas, licensing and other control measures. The quotas are EU-wide. Access to quotas may depend on whether the importer is an established traditional supplier or a newcomer.

Finland is covered by EU anti-dumping legislation, the EU’s principal and most comprehensive import protection mechanism. Finland has also adopted the Generalised System of Preferences (GSP) of the EU. Furthermore, Finland applies import taxes imposed by the EU.

The same import restrictions apply in Finland as in other EU countries. Import licensing is required for textile products, some china products (other than textiles), some foodstuffs and some iron and steel products. Import licences are given on application by the National Board of Customs.

Other import restrictions include veterinary border controls on meat and meat products, milk and milk products and fish and fish products.

Phytosanitary border controls apply to living plants.

CITES products, including weapons, are prohibited.

A state-owned firm (Alko) has the retail monopoly on alcoholic beverages. More information on the taxes and charges for importing wine to Finland can be found at Alko.

Certain products are subject to compulsory technical regulations and standard controls, eg. consumer and utility products, foodstuffs, cosmetics, paint products. 

Product certification, labelling and packaging

Labelling

Specific labelling requirements exist for prepacked foods. An indication of all additives and residues must be included. Particular attention must be paid to food additives of a specifically nutritional nature, including vitamins, mineral substances, and fatty and amino acids and their compounds.

Paint products are subject to specific marking and poison labelling/classification requirements.

Nutritional labelling is compulsory only if nutritional claims appear on the labelling. Energy value details (either the amount of proteins, carbohydrates and fats, or the amount of proteins, sugars, fats, saturates, fibre and sodium) should be given.

Claims for reduced energy contents (light, low energy and reduced energy) are permitted if the reduction is at least 30 per cent below the energy content of a similar product at the same weight.

Health warnings must appear on containers of tobacco products which are used at point of retail sale.

Special certificates

Sanitary certificates, issued by the appropriate authority in the country of origin are required for goods which may introduce contagious animal or plant diseases into the country. The goods include live plants, animals, raw animal products and many processed animal products.

Mixed foods, straw fodder and compound fertilisers require a certificate issued by the Ministry of Agriculture and Forestry.

Packaging

Hay, litter peat and straw may not be used without the Finnish Ministry of Agriculture's permission.

Imported goods marked in any way misleading to the country of origin or brand are prohibited.

All external cases must bear identifying marks and numbers as in the bill of lading.

Methods of quoting and payment

Quotes in Euro are preferred but any other major currency is acceptable (including Australian dollar if clearly defined as such). CIR (Incoterms 1990) are preferred payment is effected in convertible currency.

Credit terms vary according to the industry.

Documentary requirements

A customs declaration and a declaration of dutiable value (in addition to the import licence and commercial invoice) are required by the importer on entry.

Pro-forma invoice

This may be required by the importer to obtain an import licence (see 'Import restrictions'). It should contain information consistent with that indicated on the commercial invoice.

Commercial invoice

There is no prescribed form, and the following details must be included:

• The names and addresses of the seller and buyer; the dates on which the invoice was drawn and the business was concluded; the number, kind and weight, the marks and numbers of goods
• The trade name and quantity of the goods
• The item price and any discounts permitted
• The terms of delivery and payment
• The country of purchase and origin (if the invoice covers goods from different countries, the country of origin for each item must be stated separately)
• A price declaration if goods are acquired other than by normal purchasing methods
• The appropriate Harmonised System classification
• All postage or freight charges
• All packing, insurance and other shipping charges 

If the details prove too numerous for inclusion in the invoice, a separate packing list should be supplied (see 'Packing list')

Bill of lading

To Order bills are acceptable. The original and a negotiable copy are usually required.

Packing list

If the space on the invoice is insufficient to specify all details of packages (see 'Commercial invoice' above), a separate packing list must be supplied.

Certificate of origin

Certificates of origin are required for a number of specified items. Exporters should check with importers about the required details.

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Public health requirements

Certain domestic and imported food products may contain only those additives approved by the Finnish Ministry of Trade and Industry.

Only authorised firms may import pharmaceutical products, narcotics and poisons.

Taxation

Excise tax is payable at importation of the following products:

• Tobacco: basic rates of 20 per cent to 50 per cent of the retail price and surtax according to a special scale apply.
• Certain foodstuffs: taxes are charged at various rates per kilogram.
• Refreshment drinks and malt and alcoholic beverages: tax is charged at various rates per litre.
• Excise tax is charged at various rates per litre on imported motor spirits and diesel oil, and on automobiles and motorcycles.
• A car tax is paid on personal cars, vans and pick-up trucks.

Certain charges must be paid on operations, such as unloading and storage of goods.

The tax rate for limited companies was raised in 1996 from 25 per cent to 28 per cent, and remains one of the lowest among western industrial countries. Finland replaced its turnover tax with a 22 per cent Value Added Tax (VAT) in June 1994.

Some goods and services including movie tickets, pharmaceuticals, use of sporting facilities and books, are taxed at a 12 per cent rate and food stuffs at a 17 per cent rate.  Passenger transportation, accommodation, TV-licenses, admission fees to cultural and entertainment events are taxed at a six per cent rate. Other services, including health care, education, insurance, newspaper and periodical subscriptions and rentals are not subject to VAT.

The assessment value for imports is the CIF value (Incoterms 1990) and all other taxes.

Stamp tax rates are levied on many types of legal documents, including trade register negotiations, transfers of certain assets and stock issues. Rates vary between one per cent and 1.6 per cent.