# ![](media/image1.jpeg){width="0.89375in" height="0.94375in"}   Doing Business in Finland: 2008 Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In Finland](#ch1)

-   [Chapter 2: Political and Economic Environment](#ch2)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

[[]{#ch1 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 1: Doing Business In Finland 

-   [Market Overview](#market-overview-return-to-top)

-   [Market Challenges](#market-challenges-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#ch1)

-   Finland joined the European Union (EU) in 1995 and has continued to
    grow as a market for international business.

-   Finland shares with Russia a 900-mile long border, the longest
    contiguous land border in the EU. Finland has a unique position as
    the center of a rapidly developing marketplace formed by
    northwestern Russia, the Scandinavian countries, and the Baltic
    states, with about 80 million prospective consumers.

-   Finland is the only Nordic country to replace its national currency,
    the Finnish mark, with the euro (in 2002). Contrary to popular
    misconception, Finland is not a part of Scandinavia.

-   Finland has a largely homogeneous population of about 5.3 million.
    There are more than 5,000 Americans resident in Finland, and some
    90,000 (not including transit passengers) visit the country each
    year.

-   Finland has a highly developed industrial economy and is a global
    leader in telecommunications and high-technology applications.
    Finland routinely ranks among the top in international surveys of
    research and development, or R&D, funding, competitiveness,
    transparency, literacy, and education. Per capita income was more
    than \$40,000 in 2007.

-   Two-way trade between the United States and Finland was about \$7.6
    billion in 2006, chiefly in the electronics, paper, medical
    equipment, and telecommunications industries.

-   The United States remains an important trading partner for Finland
    outside of Europe. With Finnish imports of American goods and
    services in 2006 valued at around \$2.6 billion, the United States
    was Finland's seventh largest supplier after Russia, Germany,
    Sweden, China, the United Kingdom, and the Netherlands.

-   In 2006, the United States was Finland's fourth largest customer
    after Germany, Sweden, and Russia, with Finnish exports of goods and
    services to the United States valued at about \$5.0 billion.

-   Nokia, headquartered in Espoo, has grown to become a multi-national
    giant representing a relatively small country in population size.
    Its contribution to the Finnish economy continues to be significant.

-   As an EU member state bordering Russia, Finland remains vital as a
    trans-shipment channel to the Russian market, especially in the
    northwestern regions. About 40 percent of the EU's road shipments to
    Russia are shipped from Finland or arrive via Finland. Russia is
    currently Finland's biggest trading partner. Finland's excellent
    infrastructure and its geographical proximity to Russia and the
    Baltic countries, especially Estonia, give Finland an advantage as a
    gateway to these expanding markets.

## Market Challenges [**Return to top**](#ch1) 

-   Finland's import climate is open and receptive to U.S. products and
    investments. There are no significant trade barriers.

-   The domestic market is small, but the country can serve as a base
    for business operations in the Nordic, Baltic, and/or Western
    Russian markets.

## Market Opportunities [**Return to top**](#ch1)

-   Excellent opportunities exist in the sectors of computers and
    related software, environmental technologies, telecommunications,
    medical equipment, biotechnology, safety/security, and franchising.

## Market Entry Strategy [**Return to top**](#ch1)

-   U.S. exporters seeking general export information and assistance or
    country-specific commercial information should consult with their
    nearest Export Assistance Center or visit the U.S. Department of
    Commerce\'s Web site,
    [http://www.export.gov](http://www.export.gov/).

-   Information about services offered by the U.S. Commercial Service in
    Helsinki, Finland, can be found at <http://www.buyusa.gov/finland>.

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch2 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 2: Political and Economic Environment

For background information on the political and economic environment of
the country, please click on the link below to the U.S. Department of
State Background Notes.

<http://www.state.gov/r/pa/ei/bgn/3238.htm>

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch3 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising-return-to-top)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

One exclusive agent/distributor is usually appointed to cover commercial
activities throughout Finland, mainly due to the relatively small size
of the country's market. Finnish importers often represent many
different product lines. In selecting a representative, the exporter
should ascertain whether that company handles competing products.
Consumer goods and similar merchandise requiring maintenance of stock
are often imported through wholesalers or trading houses. Such products
may also be sold directly to retail chains, department stores, and other
retail outlets.

Contacting local trade associations for a list of importers is a good
way of finding a distributor in Finland. Finnish importers attend major
trade fairs in Europe and in the United States in order to find new
products and ideas, but also to find new representation. The Commercial
Section of the American Embassy also assists in finding
agents/distributors for U.S. exporters through an International Partner
Search (IPS), a matching Gold Key Service (GKS), or other networking
activity.

## Establishing an Office [**Return to top**](#ch3)

Please visit [www.investinfinland.fi](http://www.investinfinland.fi/)
for information on establishing an office in Finland.

## Franchising [**Return to top**](#ch3)

The total market for franchising in Finland was estimated to be \$8
billion in 2007. There are close to 200 franchising systems in Finland
operating over 6,000 units around the country. Over one-quarter of the
franchising systems are foreign owned. Franchising has increased in
popularity during the past few years, as investors better understand the
business concept; e.g. franchising involves lower risks for companies
expanding their operations. There are no specific statutes regulating
franchises, but as with distribution agreements, a number of statutes
impact on them indirectly. For more information on franchising see
Chapter 4: Leading Sectors for U.S. Export and Investment.

## Direct Marketing [**Return to top**](#ch3)

The total amount spent in 2006 on direct marketing (direct mail) in
Finland was \$694 (€555,5) million, up 2,2 % from the previous year.
Addressed Bulk Mail grew more than Un-addressed Delivery. The share of
direct mail as a marketing media in advertising is 20 %. Direct
marketing campaigns are becoming more diversified and the size of
consignments is becoming smaller. Advertising is being more precisely
segmented and special media are being used to reach new target groups.
The use of electronic messaging for marketing purposes is also growing
briskly. The direct marketing channels most commonly used in Finland
are:

-   Direct mail

-   Telemarketing

-   Face-to-face selling

-   Internet marketing

-   Direct-response advertising

-   Catalogs

## Joint Ventures/Licensing [**Return to top**](#ch3)

Joint ventures serve as an option for setting up a business in Finland.
Issues that need to be addressed include possible tax implications,
local legal systems, accounting principles, special permits and
registration procedures.

Several U.S. companies have established themselves in the Finnish market
with subsidiaries or joint ventures, with an interest in access to
Finnish-Russian joint ventures. A number of Finnish firms are interested
in using their long-established contacts in the former Soviet Union and
the Baltic countries to market U.S. goods. Due to its physical proximity
and Finland\'s network of railroad and air connections, there are many
strong selling features regarding access to Russia. As a full member of
the European Union, Finland has its feet firmly planted in the west but
possesses unique access to and expertise about the Russian market.

Product Licensing agreements are quite common in Finland because of the
good quality of Finnish manufacturing, the small size of the market and
the relatively high cost of transporting goods to the country. Royalties
and licensing fees may be freely transferred out of Finland.

## Selling to the Government [**Return to top**](#ch3)

The annual total amount of public procurement is estimated at around
\$25 (€20) billion, approximately 15% of Finland's GDP.

Finnish procurement agencies follow the procurement procedures of the EU
and the World Trade Organization (WTO). The EU rules of procurement and
the WTO's GPA agreement only apply to procurements above the threshold
value. National legislation requires procurement units to submit
competitive tenders for procurements that fall below the threshold
value. This is done by sending requests for tenders to a number of
potential suppliers or by publishing an announcement. For more
information on Government tenders, please see TED - Tenders Electronic
Daily: <http://ted.europa.eu/>

## Distribution and Sales Channels [**Return to top**](#ch3)

Distribution channels in Finland are similar to those in the United
States. Goods may be sold through an agent, distributor, established
wholesaler, or selling directly to retail organizations. Most of the
larger importers, wholesalers, and trading houses are members of the
Federation of Finnish Commerce
([www.suomenkauppa.fi](http://www.suomenkauppa.fi/)), which is a central
organization of 10,000 companies as well as trade associations covering
the bulk of foreign goods sold to Finnish trade and industry.

The Finnish Foreign Trade Agents\' Federation
([www.agenttiliitto.fi](http://www.agenttiliitto.fi/)) is an association
of commercial agents, distributors, and importers. It has 18 divisions
for different products. Its members are relatively small, private
companies, most of them operating in sectors such as textiles, apparel,
furnishings, and raw materials.

## Selling Factors/Techniques [**Return to top**](#ch3)

Selling factors and techniques are very similar in Finland to those in
the United States. Terms generally applied to international trade with
industrialized countries apply to selling in Finland. When selling to
the Finnish market, it is recommended that a local agent/distributor who
has a sales network covering the whole of Finland be appointed. Only one
local distributor is needed to cover the whole country, as Finland's
market is small; but, because distances are long, a distributor with a
countrywide network is most desirable. Consumer goods and similar
merchandise requiring maintenance of stock are often imported through
wholesalers or trading houses. These products can also be sold directly
to retail chains, department stores, and other retail outlets. U.S.
suppliers should provide the local distributor with English language
product literature and export prices. Strong promotion efforts are very
important to introduce new products into the Finnish market.

## Electronic Commerce [**Return to top**](#ch3)

Online shopping in Finland is increasing rapidly. According to
Statistics Finland's data collected in spring 2007, 79% of 15-74
year-old Finns had used the Internet during the year 2007.

The Internet is most commonly used for e-mail (90 % of the respondents),
for finding information on goods and services (86%), for using online
bank services (84%), for finding information on travel and accommodation
services (71%), and for reading online magazines and newspapers (63%).
The use of online bank services, online shopping, and travel service
browsing have increased significantly. In spring 2007, the survey also
included questions on the use of instant messaging (Skype, Messenger).
37% of the respondents had used instant messaging service during the
three months prior to the survey.

Also, gender differences in on-line shopping have disappeared, with
women constituting approximately 50% of all Internet users and of those
who had bought commodities via the Internet (see
[www.e.finland.fi](http://www.e.finland.fi/))

## Trade Promotion and Advertising [**Return to top**](#ch3)

Local Fair Authorities:

The Finnish Fair Corporation/Helsinki Fair Center,
[www.finnexpo.fi](http://www.finnexpo.fi/)

Helsinki Fair Ltd./Wanha Satama,
[www.wanhasatama.com](http://www.wanhasatama.com/)

Jyvaskyla Congress Center Ltd, Jyvaskyla Fair Ltd, and the Keskimaa
Group/Jyvaskyla Paviljonki, [www.jklfairs.fi](http://www.jklfairs.fi/)

The Turku Fair and Congress Center Ltd.,
[www.turunmessukeskus.fi](http://www.turunmessukeskus.fi/)

Lahti Fair Ltd., [www.lahdenmessut.fi](http://www.lahdenmessut.fi/)

Tampere Trade Fairs Ltd.,
[www.tampereenmessut.fi](http://www.tampereenmessut.fi/)

Local Newspapers:

Helsingin Sanomat, [www.hs.fi](http://www.hs.fi/)

Hufvudstadsbladet (Swedish daily), [www.hbl.fi](http://www.hbl.fi/)

Aamulehti, [www.aamulehti.fi](http://www.aamulehti.fi/)

Iltalehti, [www.iltalehti.fi](http://www.iltalehti.fi/)

Iltasanomat, [www.iltasanomat.fi](http://www.iltasanomat.fi/)

Kaleva, [www.kaleva.fi](http://www.kaleva.fi/)

Keskisuomalainen, [www.ksml.fi](http://www.ksml.fi/)

Savon Sanomat, [savonsanomat.fi](http://www.savonsanomat.fi/)

Turun Sanomat, [www.turunsanomat.fi](http://www.turunsanomat.fi/)

Business Magazines/Journals:

Kauppalehti (Business daily),
[www.kauppalehti.fi](http://www.kauppalehti.fi/)

Talouselama (Business weekly),
[www.talouselama.fi](http://www.talouselama.fi/)

Tekniikka & Talous (Business weekly),
[www.tekniikkatalous.fi](http://www.tekniikkatalous.fi/)

Tietoviikko TIVI (Business weekly),
[www.tietoviikko.fi](http://www.tietoviikko.fi/)

Radio/TV:

Metroradio Finland Oy (Classic Radio Oy,
[www.classicradio.fi](http://www.classicradio.fi/), Groove FM,
[www.groovefm.fi](http://www.groovefm.fi/), MetroFM,
[www.metrofm.fi](http://www.metrofm.fi/), SuomiPOP,
[www.radiosuomipop.fi](http://www.radiosuomipop.fi/))

MTV Media Radio Group (Radio Nova,
[www.radionova.fi](http://www.radionova.fi/))

SBS Finland Oy (KISS, [www.kiss.fi](http://www.kiss.fi/), Iskelma-ketju,
[www.iskelma.fi](http://www.iskelma.fi/), Radio 957,
[www.radio957.fi](http://www.radio957.fi/), Radio Sata,
[www.sata.fi](http://www.sata.fi/), Radio Jyvaskyla,
[www.radiojkl.fi](http://www.radiojkl.fi/), Radio Mega,
[www.radiomega.fi](http://www.radiomega.fi/), and Voice TV,
[www.voice.fi](http://www.voice.fi/))

Sanoma Corporation (Radio Helsinki,
[www.radiohelsinki.fi](http://www.radiohelsinki.fi/))

Finnish Broadcasting Company YLE Radio (YLE Radio 1, YLEX, YLE Radio
Suomi, YLE Radio Peili, Radio Extrem, Radio Vega), and TV (YLE TV1, TV2,
Teema, Swedish Language Television FST5) Center,
[www.yle.fi](http://www.yle.fi/)

MTV OY (Commercial TV [www.mtv3.fi](http://www.mtv3.fi/), and SubTV
[www.subtv.fi](http://www.subtv.fi/))

NELONEN (Channel Four Finland), [www.nelonen.fi](http://www.nelonen.fi/)

WELHO (SW Television OY / Welho), [www.welho.fi](http://www.welho.fi/)

U.S. Commercial Service Helsinki services: Business Service Providers
(BSP), Featured U.S. Exporters (FUSE), and Single Company Promotion
(SCP), [www.buyusa.gov/finland/en](http://www.buyusa.gov/finland/en)

## Pricing [**Return to top**](#ch3)

All goods and services are subject to a value-added tax (VAT), which
ranges from 8 percent on books, drugs, and pharmaceuticals, 17 percent
on foodstuffs and feeds, to 22 percent on industrial goods. Excise taxes
are levied on fuel, alcohol, beer, tobacco, soft drinks, and mineral
water.

Finland is an EU country. Imports from the other EU countries enter
Finland duty-free and without customs formalities. The EU also has free
trade agreements with a large number of non-EU countries (e.g.,
countries that belong to the Pan-European Cumulation and the European
Free Trade Association, or EFTA). Imports from these countries, with
some exceptions, enter Finland duty-free if the products have been
manufactured in one of these countries. However, import duties are
levied on imports from countries such as the United States, Australia,
Japan, and Canada, depending on specific product lines.

## Sales Service/Customer Support [**Return to top**](#ch3)

As a rule, one exclusive agent/distributor is appointed to cover the
entire country. Finnish importers often represent several different
product lines. Importers may serve large customers themselves, while
dealers work with smaller customers, often located outside the Helsinki
metropolitan area. Dealers are often specialized in supplying a specific
industry area. Training, usually organized and carried out by dealers,
is an important aspect. Service points should cover the whole country
rather than just the southern parts.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

# Introduction

Several general principles are important for effective management of
intellectual property rights in Finland. First, it is important to have
an overall strategy to protect IPR. Second, IPR is protected differently
in Finland than in the U.S. Third, rights must be registered and
enforced in Finland, under local laws. Companies may wish to seek advice
from local attorneys or IP consultants. The U.S. Commercial Service can
often provide a list of local lawyers upon request.

It is vital that companies understand that intellectual property is
primarily a private right and that the US government generally cannot
enforce rights for private individuals in Finland. It is the
responsibility of the rights\' holders to register, protect, and enforce
their rights where relevant, retaining their own counsel and advisors.
While the U.S. Government is willing to assist, there is little it can
do if the rights holders have not taken these fundamental steps
necessary to securing and enforcing their IPR in a timely fashion.
Moreover, in many countries, rights holders who delay enforcing their
rights on a mistaken belief that the USG can provide a political
resolution to a legal problem may find that their rights have been
eroded or abrogated due to doctrines such as statutes of limitations,
laches, estoppels, or unreasonable delay in prosecuting a law suit. In
no instance should USG advice be seen as a substitute for the obligation
of a rights holder to promptly pursue its case.

It is always advisable to conduct due diligence on partners. Negotiate
from the position of your partner and give your partner clear incentives
to honor the contract. A good partner is an important ally in protecting
IP rights. Keep an eye on your cost structure and reduce the margins
(and the incentive) of would-be bad actors. Projects and sales in
Finland require constant attention. Work with legal counsel familiar
with Finnish laws to create a solid contract that includes non-compete
clauses, and confidentiality/non-disclosure provisions.

It is also recommended that small and medium-size companies understand
the importance of working together with trade associations and
organizations to support efforts to protect IPR and stop counterfeiting.
There are a number of these organizations, both Finland or U.S.-based.
These include:

-   The U.S. Chamber and local American Chambers of Commerce

-   National Association of Manufacturers (NAM)

-   International Intellectual Property Alliance (IIPA)

-   International Trademark Association (INTA)

-   The Coalition Against Counterfeiting and Piracy

-   International Anti-Counterfeiting Coalition (IACC)

-   Pharmaceutical Research and Manufacturers of America (PhRMA)

-   Biotechnology Industry Organization (BIO)

**IPR Resources**

A wealth of information on protecting IPR is freely available to U.S.
rights holders. Some excellent resources for companies regarding
intellectual property include the following:

-   For information about patent, trademark, or copyright issues \--
    including enforcement issues in the US and other countries \-- call
    the STOP! Hotline: 1-866-999-HALT or register at
    [www.StopFakes.gov](http://www.StopFakes.gov/).

-   For more information about registering trademarks and patents (both
    in the U.S. as well as in foreign countries), contact the US Patent
    and Trademark Office (USPTO) at**:** 1-800-786-9199.

-   For more information about registering for copyright protection in
    the US, contact the US Copyright Office at: 1-202-707-5959.

-   For US small and medium-size companies, the Department of Commerce
    offers a \"SME IPR Advisory Program\" available through the American
    Bar Association that provides one hour of free IPR legal advice for
    companies with concerns in Brazil, China, Egypt, India, Russia, and
    Thailand. For details and to register, visit:
    <http://www.abanet.org/intlaw/intlproj/iprprogram_consultation.html>

-   For information on obtaining and enforcing intellectual property
    rights and market-specific IP Toolkits visit:
    [www.StopFakes.gov](http://www.StopFakes.gov/) This site is linked
    to the USPTO website for registering trademarks and patents (both in
    the U.S. as well as in foreign countries), the U.S. Customs & Border
    Protection website to record registered trademarks and copyrighted
    works (to assist customs in blocking imports of IPR-infringing
    products) and allows you to register for Webinars on protecting IPR.

-   The U.S. Commerce Department has positioned IP attachés in key
    markets around the world. You can get contact information for the IP
    attaché who covers Finland at: <http://www.buyusa.gov/europeanunion>

**IPR Climate in Finland**

See Investment Climate Statement.

The Finnish legal system protects property rights, including
intellectual property, and Finland adheres to numerous international
agreements concerning intellectual property. Finland has joined the most
important copyright agreements. For further information, please see
[http://www.prh.fi](http://www.prh.fi/) (National Board of Patents and
Registration of Finland Industrial Property Office), and
[http://www.minedu.fi](http://www.minedu.fi/) (Ministry of Education and
Culture Copyright Office).

## Due Diligence [**Return to top**](#ch3)

Dun & Bradstreet Finland Oy and Suomen Asiakastieto Oy offer a variety
of business and credit information services. For further information,
please contact:

Dun & Bradstreet Finland Oy

Vattuniemenkatu 21 A

FIN-00210 Helsinki, Finland

Tel: +358-9-2534 4400, Fax: +358-9-502 2940

E-mail: asiakaspalvelu@dnbnordic.com

[www.dnbnordic.com](http://www.dnbnordic.com/)

One can also contact any Dun & Bradstreet office in the United States.

Suomen Asiakastieto Oy

P.O. Box 16

FIN-00581 Helsinki, Finland

Tel: +358-9-148 861, Fax: +358-9-753 3231

E-mail: <kontaktikeskus@asiakastieto.fi>

[www.asiakastieto.fi](http://www.asiakastieto.fi/)

## Local Professional Services [**Return to top**](#ch3)

Please visit U.S. Commercial Service Finland's website - Local Business
Service Providers: <http://www.buyusa.gov/finland/en/bsn.html>

## Web Resources [**Return to top**](#ch3)

The Finnish Franchising Association:
[http://www.franchising.fi](http://www.franchising.fi/)

The Finnish Direct Marketing Association (Finnish DMA):
[http://www.asml.fi](http://www.asml.fi/)

Local government authorities:

Tenders Electronic Daily: http://ted.europe.eu/

The Federation of Finnish Commerce,
[www.suomenkauppa.fi](http://www.suomenkauppa.fi/)

The Finnish Foreign Trade Agents\' Federation
[www.agenttiliitto.fi](http://www.agenttiliitto.fi/)

Local Fair Authorities:

The Finnish Fair Corporation/Helsinki Fair Center,
[www.finnexpo.fi](http://www.finnexpo.fi/)

Helsinki Fair Ltd., [www.wanhasatama.com](http://www.wanhasatama.com/)

Jyvaskyla Fair Ltd., [www.jklfairs.fi](http://www.jklfairs.fi/)

The Turku Fair and Congress Center Ltd.,
[www.turunmessukeskus.fi](http://www.turunmessukeskus.fi/)

Lahti Fair Ltd., [www.lahdenmessut.fi](http://www.lahdenmessut.fi/)

Tampere Trade Fairs Ltd.,
[www.tampereenmessut.fi](http://www.tampereenmessut.fi/)

Local Newspapers:

Helsingin Sanomat, [www.hs.fi](http://www.hs.fi/)

Hufvudstadsbladet (Swedish daily), [www.hbl.fi](http://www.hbl.fi/)

Aamulehti, [www.aamulehti.fi](http://www.aamulehti.fi/)

Iltalehti, [www.iltalehti.fi](http://www.iltalehti.fi/)

Iltasanomat, [www.iltasanomat.fi](http://www.iltasanomat.fi/)

Kaleva, [www.kaleva.fi](http://www.kaleva.fi/)

Keskisuomalainen, [www.ksml.fi](http://www.ksml.fi/)

Savon Sanomat, [savonsanomat.fi](http://www.savonsanomat.fi/)

Turun Sanomat, [www.turunsanomat.fi](http://www.turunsanomat.fi/)

Business Magazines/Journals:

Kauppalehti (Business daily),
[www.kauppalehti.fi](http://www.kauppalehti.fi/)

Talouselama (Business weekly),
[www.talouselama.fi](http://www.talouselama.fi/)

Tekniikka & Talous (Business weekly),
[www.tekniikkatalous.fi](http://www.tekniikkatalous.fi/)

Tietoviikko TIVI (Business weekly),
[www.tietoviikko.fi](http://www.tietoviikko.fi/)

Radio/TV:

Metroradio Finland Oy (Classic Radio Oy,
[www.classicradio.fi](http://www.classicradio.fi/), Groove FM,
[www.groovefm.fi](http://www.groovefm.fi/), MetroFM,
[www.metrofm.fi](http://www.metrofm.fi/), SuomiPOP,
[www.radiosuomipop.fi](http://www.radiosuomipop.fi/))

MTV Media Radio Group (Radio Nova,
[www.radionova.fi](http://www.radionova.fi/))

SBS Finland Oy (KISS, [www.kiss.fi](http://www.kiss.fi/), Iskelma-ketju,
[www.iskelma.fi](http://www.iskelma.fi/), Radio 957,
[www.radio957.fi](http://www.radio957.fi/), Radio Sata,
[www.sata.fi](http://www.sata.fi/), Radio Jyvaskyla,
[www.radiojkl.fi](http://www.radiojkl.fi/), Radio Mega,
[www.radiomega.fi](http://www.radiomega.fi/), and Voice TV,
[www.voice.fi](http://www.voice.fi/))

Sanoma Corporation (Radio Helsinki,
[www.radiohelsinki.fi](http://www.radiohelsinki.fi/))

Finnish Broadcasting Company YLE Radio (YLE Radio 1, YLEX, YLE Radio
Suomi, YLE Radio Peili, Radio Extrem, Radio Vega), and TV (YLE TV1, TV2,
Teema, Swedish Language Television FST5) Center,
[www.yle.fi](http://www.yle.fi/)

MTV OY (Commercial TV [www.mtv3.fi](http://www.mtv3.fi/), and SubTV
[www.subtv.fi](http://www.subtv.fi/))

NELONEN (Channel Four Finland), [www.nelonen.fi](http://www.nelonen.fi/)

WELHO (SW Television OY / Welho), [www.welho.fi](http://www.welho.fi/)

U.S. Commercial Service Helsinki services: Business Service Providers
(BSP), Featured U.S. Exporters (FUSE), and Single Company Promotion
(SCP), [www.buyusa.gov/finland/en](http://www.buyusa.gov/finland/en)

National Board of Patents and Registration of Finland Industrial
Property Office, [http://www.prh.fi](http://www.prh.fi/)

Ministry of Education and Culture Copyright Office,
[http://www.minedu.fi](http://www.minedu.fi/)

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch4 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 4: Leading Sectors for U.S. Export and Investment 

-   [Agricultural Sector](#agricultural-sectors-return-to-top)

**Commercial Sectors**

-   [Franchising](#leadingsector6)

-   [Telecommunication Services and Equipment](#energy-elp-req)

-   [Computers and Peripherals](#_(Insert_Title_of)

-   [Travel and Tourism
    Services](#telecommunications-services-and-equipment-tel-tes)

-   [Environmental Technologies](#leadingsector6)

-   [Medical Equipment](#leadingsector7)

-   [Computer Software](#leadingsector6)

-   [Energy](#leadingsector9)

-   [Biotechnology](#leadingsector9)

-   [Safety and Security](#leadingsector10)

## Franchising (FRA)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        7543           8146         8798

  Total Local Production   5657           6110         6598

  Total Exports            N/A            N/A          N/A

  Total Imports            1886           2036         2199

  Imports from the U.S.    566            611          660
  ------------------------ -------------- ------------ -------------------

Exchange Rate: \$1=€ 0.80 (year 2006 average)

Source: University of Kuopio, Dept. Business & Management, The Finnish
Franchising Association (the statistics are unofficial estimates).

The total market for franchising in Finland is estimated to be \$8
billion in 2007 and it is expected to continue its steady growth rate of
8-10 percent in 2007. There are close to 200 franchising systems in
Finland operating over 6,000 units around the country.

Franchising is one of the fastest growing business sectors in Finland.
Population density in urban areas and changes in economic and social
factors indicate that franchising will continue expanding into new
business areas. Growing demand in the services sector along with
increased interest in self-employment will foster many new franchising
opportunities.

Domestic franchises dominate the market. Just over one-quarter of the
franchising systems are foreign owned. U.S. franchise companies in
Finland are mostly fast food restaurants and automotive service
businesses. U.S. franchises tend to have high brand recognition among
the general public.

### Best Products/Services [**Return to top**](#ch4)

Franchising opportunities exist in all market sectors -- retail,
restaurant and services. The services sector, which includes consumer
and Business-to-Business services, is the fastest growing and offers the
best market potential for new franchise businesses.

U.S. franchise companies in Finland are concentrated in automotive
services (car rental) and fast food. Most of these companies have strong
brand recognition and are considered old-timers in the market. The U.S.
companies currently in the market are: Avis, Budget, Hertz, National,
McDonald's, Subway, Pizza Hut, Novus (car windshield repair), RE/MAX
real estate, and TOYS"R"US.

### Opportunities [**Return to top**](#ch4)

The best opportunities for new franchises are in the undeveloped areas
of Business-to-Business (B2B) and consumer services. B2B services, such
as personnel, building repair/maintenance, training, and Information
Technology (IT) offer great opportunities for U.S. companies. Demand is
also increasing for consumer services such as cleaning services,
interior design, nursing, and other personal welfare services such as
beauty, health/exercise, and general well being.

The retail sector offers new franchising opportunities in the field of
consumer electronics, consumer durables, and giftware. Apparel, food,
and personal care products continue to be good prospects for U.S.
franchises.

The restaurant sector is currently made up of mostly coffee shops and
fast food restaurants. The "casual dining" concept is not yet fully
formed in Finland, and offers great potential for new franchise
businesses in an almost untapped market.

### Resources [**Return to top**](#ch4)

The Finnish Franchising Association, http://www.franchising.fi

<mia.maki@mail.doc.gov> (local contact)

[]{#_(Insert_Title_of .anchor}

## Telecommunications Services and Equipment (TEL, TES)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        15720          18340        21220

  Total Local Production   23800          26180        28790

  Total Exports            10500          10500        10500

  Total Imports            2420           2660         2920

  Imports from the U.S.    240            270          295
  ------------------------ -------------- ------------ -------------------

Exchange Rate: \$1=€0.80 (year 2006 average)

Source: Telecommunications in Finland 2006 (Statistics Finland) and
local contacts.

Although with only 5.3 million people the Finnish market is small,
Finnish consumers and companies have proven to be quick to adopt new
technologies. The telecommunications market in Finland is fully
liberalized -- no licenses are needed, except for digital television
networks and building mobile networks. Finland's Ministry of Transport
and Communications is responsible for licensing.

The fact that Finland was among the first to open its telecommunications
market has resulted in low mobile tariffs; according to a recent
Organization for Economic Cooperation and Development (OECD) study
comparing average mobile phone charges across the OECD countries, in
2007, Finland ranked number one for the third year in a row. Finland has
been a pioneer in popularizing mobile phones. At the beginning of 2000
it was the country with the highest penetration rate in the world: 65%
of Finns were already using mobile phones. The penetration rate now
stands at 100% and there are nearly 5.2 million subscribers.

Since July 2003, mobile customers have been able to switch operators
while preserving their mobile numbers. This has made switching operators
more attractive to customers, and thus substantially increased
competition between service providers, in the already highly competitive
telecommunications market. With an Internet penetration rate of 79%,
Finland is among the top nations in Internet use. It is also the
world\'s leading country in electronic banking.

The two major operators in the fixed-line telecommunications market are
Elisa Communications and TeliaSonera. Most smaller Finnish telephone
companies operate under the Finnet group, which is the third largest
player in the fixed line market. The major players are facing
increasingly strong competition from newer providers of fixed-line,
mobile, and Internet services. Third-generation mobiles are foreseen to
become more widespread in Finland. One of the reasons is the ending of
the ban on "tie-in" sales of phones and services.

On June 22, 2005, the Government granted an operating license to Digita
Oy to build a new digital mobile communications network, using
Flash-OFDM (orthogonal frequency division multiplexing) technology. It
will be the first time in the world this technology will be put to
extensive use in mobile networks.

In 2005, there were over 1.2 million broadband connections to households
in Finland. This was more than in other European Union (EU) countries,
on average. The goal of national broadband strategy is to allow every
Finn to have access to high-speed, easy-to-use, and affordable data
transfer connections and to make Finland a European leader in
availability and use of high-speed telecommunications. In 2006, the
growth rate was 22%, and by the end of the year, Finland had a total of
1.428,000 broadband subscriptions, including both households and
corporate customers. By the end of September 2007, the number of
broadband subscriptions had reached 1.574,000.

### Best Prospects/Services [**Return to top**](#ch4)

Although highly competitive, the telecommunications sector is also
growing fast, with high demand for Internet and mobile services and
content expected to continue. With the increasing numbers of broadband
Internet connections, e-commerce is expected to benefit.

Due to high technical standards and the liberalized telecommunications
market, Finland serves as an excellent test base for new technologies
for U.S. Information technology (IT) companies. U.S. IT companies
wishing to enter the Baltic markets and Russia (especially St.
Petersburg) should view Finland as a natural gateway and Finnish
companies as experienced partners in any such effort.

### Opportunities [**Return to top**](#ch4)

Please see the Supplement to the European Union Official Journal

[http://ted.europa.eu](http://ted.europa.eu/info_newurl.html).

See also [www.e-finland.fi](http://www.e-finland.fi/) (e-business
projects).

### Resources [**Return to top**](#ch4)

Helsinki Fair Center [www.finnexpo.fi](http://www.finexpo.fi/)

Ministry of Transport and Communications
[www.mintc.fi](http://www.mintc.fi/)

Finnish Federation for Communications and Teleinformatics
[www.ficom.fi](http://www.ficom.fi/)

<tarja.kunnas@mail.doc.gov> (local contact)

## Computer and Peripherals (CPT)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        3575           3730         3890

  Total Local Production   1100           1130         1160

  Total Exports            950            990          1030

  Total Imports            3425           3590         3760

  Imports from the U.S.    315            330          350

                                                       
  ------------------------ -------------- ------------ -------------------

Exchange rate: \$1= €0.80 (year 2006 average)

Source: National Board of Customs and local contacts.

**Note:** The table figure "Imports from the U.S." does not include U.S.
computer hardware exported from plants located in the European Union
(EU) countries.

Finland's population of 5.3 million people comprises a highly
sophisticated market for computer hardware and software. This is
illustrated by the fact that Finland has one of the highest numbers of
computers per capita connected to the Internet. Presently, a majority of
Finnish homes have computers as well as access to the Internet either at
home, at work, or through a local institution, such as a library.

The United States is Finland's leading external source of computers and
peripherals. There are about 4,200 local computer-related companies in
Finland. About 3,700 companies have less than five employees, and the
five largest companies cover about 60 percent of the industry sector's
sales volume.

The computer market in Finland has continued its growth. For the third
quarter of 2007, IDC estimates the growth of the Finnish PC-market at
8.2%. Global brands are gaining market share, at the expense of smaller
local brands. From 2006, the share of local brands has declined from
15.5% to 9.7% of the market in 2007. Following the global growth trends,
HP is the largest brand with a market share of 31.8%. Acer is ranked
number two, increasing its market share from 16.3% to 21.5%. Fujitsu
Siemens ranks third with an 11.9% share of the market.

Laptop sales are on the increase, with about 25% growth in the second
quarter of 2007, with more than 77,000 laptops sold in the quarter to
private consumers, while the sales of desktops for consumers was about
30,000 units. In the third quarter, about 70,000 laptops and 55,000
desktops were sold to companies.

Finland's import climate is very open and receptive to U.S. products.
Because Finland is a member of the European Union (EU), products
manufactured in the EU are not subject to import duty if manufactured
within the common market. However, since the beginning of 1999, computer
hardware imported to Finland from third countries, such as the United
States, has also entered Finland duty-free. Regardless of the origin of
production, Finland applies a value-added tax of 22 percent to all
imported goods.

### Best Prospects/Services [**Return to top**](#ch4)

Products on the cutting edge of technology dominate the Finnish hardware
market. Currently, the highest demand products include portable
computers, digital television sets and receivers, digital cameras, and
LCD and plasma television sets.

Future prospects are likely to come from new innovation and advances in
existing technology.

### Opportunities [**Return to top**](#ch4)

Please see the Supplement to the European Union Official Journal

[http://ted.europa.eu](http://ted.europa.eu/).

### Resources [**Return to top**](#ch4)

Helsinki Fair Center [www.finnexpo.fi](http://www.finexpo.fi/)

Ministry of Transport and Communications
[www.mintc.fi](http://www.mintc.fi/)

Finnish Federation for Communications and Teleinformatics
[www.ficom.fi](http://www.ficom.fi/)

<tarja.kunnas@mail.doc.gov> (local contact)

## Travel and Tourism Services (TRA)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Travel             4420           4540         4695

  Domestic Travel          5460           5730         6015

  Incoming Travel          2363           2550         2755

  Foreign Travel           3403           3740         4075

  Travel to the U.S.       206            226          246
  ------------------------ -------------- ------------ -------------------

Exchange rate: \$1= €0.80 (year 2006 average)

Source: Statistics Finland, Balance of Payments (travel). Domestic
travel and 2007 and 2008 figures are unofficial estimates.

The United States is one of the main long-haul destinations for Finns.
In 2006, over 95,000 Finns traveled to the United States. Florida,
California, and New York continue to be the best prospects for the U.S.
travel industry. First time travelers, families with children, and
senior citizens favor Florida, whereas younger people and experienced
travelers favor New York and the West Coast.

A growing interest in travel has increased the number of Finns traveling
abroad. Finns favor long-haul travel and Mediterranean destinations.
Majority of Finns traveling abroad favor "sun and sand" followed by city
destinations. However, a growing number of travelers are looking for
activity holidays. Local culture, golf, fishing, diving, sailing, skiing
and many other activities have become important for Finns when traveling
abroad. Therefore, Finns have shown interest in other destinations such
as Alaska, Arizona, Hawaii, Nevada, and New Mexico.

Finns made 43,000 business trips to the United States in 2006. This
number is expected to increase in the future. New York City, Chicago,
Boston, Los Angeles, Atlanta, and Las Vegas are the most important
destinations for Finnish business people.

Finnair, the national air carrier is the only airline based in and
operating flights from Finland to the United States. During the high
season, Finnair has daily non-stop flight service to New York. Out of
U.S. air carriers, Delta Air Lines is represented by Yellow Sky Oy Ltd,
Continental Airlines by Matkantekijat Oy, and Northwest Airlines by KLM
Royal Dutch Airlines. American Airlines, which has codeshare arrangement
with Finnair, is represented through a sales office in Stockholm,
Sweden.

There are no restrictions on the Finnish foreign travel. Since October
1, 1991, Finland has been included in the visa waiver program for visits
up to 90 days in length. Machine-readable passports were introduced in
Finland in 1987, and biometric passports in August 2006.

### Best Prospects/Services [**Return to top**](#ch4)

Florida, California and New York continue to be the best sales prospects
for the U.S. travel industry. Chicago, Boston, Los Angeles, Atlanta, Las
Vegas, and New York City are the most popular destinations for Finnish
business travelers.

### Resources [**Return to top**](#ch4)

[www.finnexpo.fi](http://www.finnexpo.fi/) (Helsinki Fair Center)

[www.smal.fi](http://www.smal.fi/) (Association of Finnish Travel
Agents)

[www.discoveramerica.fi](http://www.usembassy.fi/visitusa.html)
(Discover America Committee Finland)

[www.mek.fi](http://www.mek.fi/) (The Finnish Tourist Board)

[www.fbta.fi](http://www.fbta.fi/) (Finnish Business Travel Association)

[www.sayl.fi](http://www.sayl.fi/) (League of Finnish American
Societies)

<merja.poikolainen@mail.doc.gov> (local contact)

## Environmental Technologies (ENV)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        3987           4784         5262

  Total Local Production   5003           6004         6604

  Total Exports            4169           5003         5503

  Total Imports            3153           3784         3794

  Imports from the U.S.    174            191          210
  ------------------------ -------------- ------------ -------------------

Exchange Rate: \$1=€0.80 (year 2006 average)

Source: National Board of Customs, 2007 and 2008 figures are unofficial
estimates.

The market for environmental technology is estimated to be over \$4
billion in 2007, including professional services. Since the end of the
1990s, the market has grown by over 15 percent a year. The metals
industry and the pulp and paper industry are the two major investors in
environmental technology, especially in air pollution and water
protection technologies. The producer responsibility principle in waste
management has increased reuse and recycling offering new business
opportunities for U.S. companies.

The environmental sector in Finland has evolved into a dynamic area
where production of new technologies is gaining international
prominence. Both individuals and leaders of industry have become highly
conscious of the high standards of environmental protection and
preservation. In Finland, the necessity for utilizing the best available
technology is included in the Water Act, Air Pollution Control Act,
Waste Act and Sea Protection Act.

Demand for air pollution control equipment is strong in Finland due to
increasing environmental concerns in the surrounding countries (i.e. in
Russia the Kola Peninsula, St. Petersburg and the Baltic States). Given
the U.S. reputation for providing top quality air pollution control
equipment, these products have good potential in Finland.

Eutrophication is the main water protection problem in lakes and in the
Gulf of Finland, resulting from excessive nutrient loads. More than
one-half of the anthropogenic discharges come from agriculture.

The key competitive factors in selling environmental technology in
Finland are quality and level of technology, with price as a secondary
factor. For monitoring, measuring and control equipment, using an
importer is recommended. Finnish importers have direct distribution
channels to the end users and have strong relations with the various
energy, chemical, or paper manufacturers, as well as direct access to
the municipalities that mainly invest in wastewater technologies.

There are some 300 environmental technology firms in Finland of which
about 20 percent operate abroad as well. A majority of the Finnish
companies are small-to-medium size companies. To support Finnish
environment technologies know-how in the field, the government-funded
technology centers Tekes (Technology Development Center) and VTT
(Technical Research Center of Finland) support and enhance R&D in
environmental technologies, especially in air pollution control
equipment, thus creating a market with increased local competition.

### Best Products/Services [**Return to top**](#ch4)

The following products offer best potential for U.S. companies:

\- Air and water pollution: Monitoring, measuring and sampling
instruments for detection of air and water pollution.

\- Sulphur dioxide emissions removal: All types of advanced air cleaning
technologies that are used in the pulp and paper, chemical, and heavy
metal industry, as well as in municipal energy and power plants. Given
the high level of demand, competition within this market sector is
strong.

\- Nitrogen oxide emissions: The demand for nitrogen oxide emission
removal equipment is growing, which includes catalytic converters and
low nitrogen oxide combustion technology for burners and boilers.

\- Small particles and dust reduction equipment: Products such as
dynamic and electrostatic precipitators; fabric filters; centrifugal
fans and blowers.

\- Waste management: Equipment to improve waste management processes, in
particular closed systems for lumber companies and for the prevention of
phosphorous discharges.

\- Municipal waste recycling and recovery: All kinds of new technical
advances for the entire recycling logistics chain, including sensors,
separators, monitoring, optic handling device for metal recycling,
crushers, and bio waste separation equipment.

### Opportunities [**Return to top**](#ch4)

Please see the Supplement to the Official Journal of the European Union
<http://ted.europa.eu/>

Tekes, the National Technology Agency is the main public financing and
expert organization for research and technological development in
Finland. Tekes finances industrial R&D projects as well as projects in
research institutes. Tekes especially promotes innovative,
risk-intensive projects. [www.tekes.fi](http://www.tekes.fi/).

VTT, Technical Research Center of Finland is the biggest contract
research organization in Northern Europe. VTT provides high-end
technology solutions and innovation services and offers opportunities
through its international scientific and technology network. VTT
operates as a research and development partner in several fields of
technology, the environment included. [www.vtt.fi](http://www.vtt.fi/)

### Resources [**Return to top**](#ch4)

[http://www.environment.fi](http://www.environment.fi/) (Ministry of the
Environment, Regional Environment Centers, Finnish Environment
Institute)

mia.maki@mail.doc.gov (local contact)

## Medical Equipment (MED)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2006           2007         2008 (estimated)

  Total Market Size        820            900          900

  Total Local Production   1220           1255         1290

  Total Exports            980            1025         1065

  Total Imports            580            625          675

  Imports from the U.S.    155            165          175
  ------------------------ -------------- ------------ -------------------

Exchange rate: \$1= €0.80 (year 2006 average)

Sources: The Finnish Healthcare Technology Association, National Board
of Customs, and local sources. Local production and year 2007 and 2008
figures are unofficial estimates.

In Finland, the total market for medical equipment is estimated at \$900
million in 2007. The operating costs of Finnish hospitals have been
reduced, and major hospital procurement is mainly replacing older
equipment and buying some new. However, investments in new medical
equipment within the private health care sector are expected to
increase.

####### With an import market share of 27 percent, the United States is the most important external supplier of medical equipment in Finland. Other important external supplier countries are Germany, Sweden, France, Japan, and Switzerland. High quality and technically sophisticated medical equipment has the best market potential in Finland, especially equipment that increases efficiency and reduces occupancy rates in hospitals. Products, such as the following, have the best sales potential in Finland:

####### 

####### Patient monitoring systems

####### Mini invasive surgery (MIS)

####### Day surgery equipment

####### Magnetic resonance imaging (MRI) equipment

####### Video endoscopes

####### Digital image processing 

####### Picture archiving 

Finland joined the European Union (EU) in 1995. As a member of the EU,
Finland's local legislation concerning medical devices complies with EU
directives. Please see
[www.nam.fi/english/legislation/index.html](http://www.nam.fi/english/legislation/index.html)
for further information on both local and EU legislation.

Medical trade is duty-free within the European Union. Import duties are
collected from production coming from non-EU countries. The amount of
duty for medical equipment exported from the United States fluctuates
according to a specific product, ranging from 5-12 percent.

Local production was estimated at \$1,220 million in 2006, consisting
mainly of dental equipment, anesthesia monitors, specialized x-ray
equipment, and chemical analyzers. Local production and imports do not
overlap, as they do not compete with each other. About 80 percent of
local production is exported because of the small domestic market size.

### Best Products/Services [**Return to top**](#ch4)

Products such as patient monitoring systems, mini invasive surgery
(MIS), day surgery equipment, magnetic resonance imaging (MRI)
equipment, video endoscopes, digital image processing, and picture
archiving.

### Opportunities [**Return to top**](#ch4)

Please see the Supplement to the Official Journal of the European Union:
[http://ted.europa.eu](http://ted.europa.eu/)

### Resources [**Return to top**](#ch4)

[www.sailab.fi](http://www.sailab.fi/) (Association of Laboratory and
Health Care Products Suppliers -- SAI-LAB)

[www.finnexpo.fi](http://www.finnexpo.fi/) (Helsinki Fair Center)

[www.stm.fi](http://www.stm.fi/) (Ministry of Social Affairs and Health)

[www.nam.fi](http://www.nam.fi/) (National Agency for Medicines, Medical
Devices)

[www.vtt.fi](http://www.vtt.fi/) (VTT Industrial Systems, Medical Device
Technology Group)

<merja.poikolainen@mail.doc.gov> (local contact)

## Computer Software (CSF)

Note: Current statistics are not available.

### Overview [**Return to top**](#ch4)

The software industry is one of Finland's most prominent industry
sectors. The industry \-- along with software entrepreneurship \-- has
grown rapidly since the early 1990s. In 2004, there were about 3,000
software companies in Finland, the majority of which were start-ups or
in early growth stages. Their business ranges from infrastructure
software and data security solutions to various Internet and wireless
applications, with strong technology forming the basis for innovative
products. An increasing number of Finnish software companies seek to
expand their operations to global markets and welcome contacts from U.S.
companies.

The United States is the number one supplier of standard, non-customized
application software. Competition for new-to-market computer software
companies is strong and comes from previously established U.S.
companies, such as Microsoft, Novell etc.

The Finnish software industry is characterized by the following trends:

-   Expanding focus and application areas beyond traditional information
    and communications technology (ICT) software market (convergence)

-   Fast-growing number of new start-up software companies

-   Increasing role of Web-related software

-   Fast-growing role of embedded software

-   Increase in software exports

-   Consolidation of software industry (mergers and acquisitions)

-   Increase in mobile software

More than two out of three Finnish software companies develop and
produce traditional ICT software. International software vendors have,
however, rapidly increased their shares in the Finnish market. This
trend is expected to continue in the next five years.

In addition, Finnish companies have increased their activities in system
and tools software segments. Examples of these kinds of products are
Web-related infrastructure software packages and security software.
Growth in these sectors is fueled by exports. It is estimated that there
are about 1,100 companies providing their own software products in
Finland and another 100 with products in the development or pilot phase.
The most common exporting countries are Sweden, the United States, and
Germany.

### Best Prospects/Services [**Return to top**](#ch4)

For companies, the security sector is growing, and although competitive,
the market offers opportunities for high-quality products. The Finnish
market is small, and large companies are few in number and tend to have
established software systems. Thus, software market opportunities for
U.S. companies are mostly within the small- and medium-sized enterprise
(SME) market.

Finland has expertise in developing computer software products and is
looking for U.S. partners that can provide funding.

### Opportunities [**Return to top**](#ch4)

Please see the Supplement to the European Union Official Journal

[http://ted.europa.eu](http://ted.europa.eu/info_newurl.html).

See also [www.e-finland.fi](http://www.e-finland.fi/) (E-business
projects).

Due to changes in recent years in Russia and the Baltic countries,
Finland also serves as an excellent gateway to these emerging markets.

### Resources [**Return to top**](#ch4)

Helsinki Fair Center [www.finnexpo.fi](http://www.finexpo.fi/)

Ministry of Transport and Communications
[www.mintc.fi](http://www.mintc.fi/)

Finnish Federation for Communications and Teleinformatics
[www.ficom.fi](http://www.ficom.fi/)

Finnish Software Business Cluster
[www.swbusiness.fi](http://www.swbusiness.fi/)

<tarja.kunnas@mail.doc.gov> (local contact)

## Energy (ELP, REQ)

### Overview [**Return to top**](#ch4)

**Total Energy Consumption by Energy Source (2006)**

Oil 24%

Wood Fuel 21%

Coal 14%

Nuclear Energy 16%

Natural Gas 11%

Peat 6%

Hydro Power 3%

Net Imports of Energy 3%

Others 2%

Total Energy Consumption: 1,492 PJ

Source: Statistics Finland

**Energy Consumption by Sector (2006)**

Industry and Construction 53%

Households 24%

Services and Public Sector 19%

Transmission and Distribution

Losses 4%

Source: Energy Statistics Yearbook 2007

A Nordic country, Finland shares a long border with Russia. In Finland,
an advanced, industrialized nation, energy consumption per capita is
high. This is due to the cold, severe climate, long distances, high
standard of living, and structure of Finnish industry.

Finland\'s energy consumption has increased more than 50 percent since
the early 1970s. During the same period, industrial output and the total
volume of construction have more than doubled. On an international
scale, energy production and usage in Finland are quite efficient,
corresponding to resource availability, production structure, and
geographical location.

Finland is the fifth largest country in Europe, but has a population of
only 5.3million, mostly concentrated in urban areas. The share of
forestland in Finland is the highest in Europe (about 70 percent). More
than two-thirds of Finns live in urban areas; only 1.6 percent north of
the Arctic Circle. Finland does not have its own fossil fuels \-- coal,
oil or natural gas \-- but does have bio fuels, rich reserves of peat,
and extensive wood resources.

Energy-intensive industries play a large role in the Finnish economy,
which has spurred the development of efficient energy systems. The pulp
and paper industry supplies over two-fifths of heat and electricity
needs by utilizing solid and liquid wood residues. In Finland, peat has
been defined as slowly renewing biomass fuel. It has a substantial
share, 6 percent, of Finland's energy balance. As indigenous fuel, peat
has a considerable effect on regional policy. It increases employment
and security of the energy supply.

In December 2003, the power utility, Teollisuuden Voima Oy, placed an
order for a new nuclear power plant \-- Finland\'s fifth commercial
reactor \-- from the French-German company, Framatome ANP, and the
turbine plant from German Siemens. The Framatome ANP--Siemens consortium
will supply the nuclear power plant unit as a turnkey delivery. The new
nuclear power plant will cost about €3 billion, which makes it the
largest single investment ever in Finland.

The construction of a fifth commercial nuclear reactor was authorized by
the Parliament in 2002 after years of controversy. The location of the
power plant will be in Olkiluoto, located at Eurajoki, some 150 miles
Northwest of Helsinki. The new plant was originally estimated to be
operational in 2009, but the project has suffered from delays, and it is
now estimated that the installation will not be ready until early 2011.
The plant\'s power output will be about 1,600 MW. The building of the
plant was begun in early 2004.

Finland is actively expanding the role of renewable energy in energy
production, in accordance with the Finnish Action Plan for Renewable
Energy, launched by the Ministry of Trade and Industry in 1999 and
updated in 2002. The goal is to double the utilization of renewable
energy sources by 2025, relative to 2001, when the share of renewable
energy was about 23 percent \-- 317 petajoules (PJ) or 7.6 Mtoe \-- of
total energy consumption. The increase will be achieved primarily from
increased utilization of bio energy. Wind power is rapidly gaining
popularity worldwide and is an emerging form of power generation in
Finland.

### Best Prospects/Services [**Return to top**](#ch4)

Finnish energy companies use open tenders according to European Union
regulations. The development of renewable energy in Finland is expected
to offer opportunities for U.S. companies in introduction of new
innovative renewable energy source equipment technology. U.S. companies
have also a possibility to participate in cooperation with Finnish
companies in TEKES (National Technology Agency) funded projects
(**[www.tekes.fi](http://www.tekes.fi/)).**

Opportunities for U.S. companies also exist in the following areas:

\- Technology used for pellet production

\- Heat pumps for heating of private houses

\- Heat exchangers and heat meters

\- Controls, pumps, piping

\- Boilers for district heating

\- Forest chippers

\- Generators, gas engines

\- Technology used in agricultural biomass

\- Small-scale hydro turbines

\- Technology to upgrade existing hydro power plants

\- Heat panels for oil heating systems

### Opportunities [**Return to top**](#ch4)

Finnish energy companies use open tenders according to European Union
regulations.

Please see the Supplement to the European Union Official Journal

[http://ted.europa.eu](http://ted.europa.eu/info_newurl.html).

### Resources [**Return to top**](#ch4)

Finnish Energy Industries [www.energia.fi](http://www.energia.fi/)

Invest in Finland Bureau
[www.investinfinland.fi](http://www.investinfinland.fi/)

Finnish Funding Agency for Technology and Innovation
[www.tekes.fi](http://www.tekes.fi/)

<tarja.kunnas@mail.doc.gov> (local contact)

[]{#leadingsector6 .anchor}

## Biotechnology (BTC)

### Overview [**Return to top**](#ch4)

Note: No statistics available.

Finland can be considered a biotechnology intensive country. Currently
there are about 140 biotechnology companies in Finland. The Finnish
companies constitute almost 7 percent of the biotechnology companies in
the European Union (EU). The number is considerable compared to
Finland's population of 5.3 million.

Characteristic of a Finnish biotechnology company is that it is closely
connected to universities, biocenters, and technology centers.
Cooperation is highly intensive. The main areas of strength are
pharmaceuticals, biomaterials, diagnostics, and enzymes. The past has
seen a dynamic bioscience industry emerge around Finland's universities
and science parks.

The European Union represents the major foreign region of collaboration
for Finnish biotechnology companies, followed by the United States.
About 30% of Finnish biotechnology companies have R&D partners in the
U.S. In particular, firms that are active in equipment development, drug
development, and contract production have established partnerships in
North America. Enzymes, food and feeds, and diagnostic services follow
closely.

International research cooperation, and participation in joint research
projects has made Finnish know-how well known, and increased the
interest of European and American companies and investors in Finnish
biotechnology research. A growing number of biotechnology companies are
collaborating with large international companies. Many international
companies have also established a business in Finland. International
capital investors have shown growing interest in Finnish biotechnology
companies.

### Best Products/Services [**Return to top**](#ch4)

The overall high level of public and private investment in
biotechnology, and available infrastructure as well as technical
know-how offer excellent opportunities for U.S. biotechnology companies,
as well as venture capital firms to engage in joint ventures and
strategic alliances. Also, some Finnish biotechnology companies that
focus on research and product development do not have the required
marketing and selling skills which offers cooperation possibilities for
U.S. companies.

### Resources [**Return to top**](#ch4)

[www.finnexpo.fi](http://www.finnexpo.fi/) (Helsinki Fair Center)

[www.finbio.net](http://www.finbio.net/) (Finnish Bioindustries FIB)

[www.biocenter.helsinki.fi/bi](http://www.biocenter.helsinki.fi/bi)
(Institute of Biotechnology, Viikki Biocenter, University of Helsinki)

[www.sciencepark.helsinki.fi](http://www.sciencepark.helsinki.fi/)
(Helsinki Business and Science Park HBSP)

[www.biomedicum.fi](http://www.biomedicum.fi/) (Biomedicum Helsinki)

<merja.poikolainen@mail.doc.gov> (local contact)

[]{#leadingsector9 .anchor}

## Safety and Security (SEC)

### Overview [**Return to top**](#ch4)

Note: Current statistics not available.

In Finland, security is still considered as a very small branch of the
service sector industry, and therefore it is very difficult to obtain
accurate information and statistics. The estimated turnover of the
security and safety industry in Finland in 2006 was over \$1 billion.
The branch has grown constantly in the last ten years. The main reason
to the continuous increase in the private security demand is the Finnish
government's cutbacks to law enforcement funding. Another significant
reason for growth has been outsourcing; companies operating in commerce
and trade, the manufacturing industry, and public government have been
eager to subcontract their security needs.

The security industry market is Finland is very clustered, and dominated
by a couple of large, multinational companies who offer tailor-made
solutions from a wide range of services to both corporate and private
customers. The companies are well established here and have been in the
market for a long time. For example Group 4 Securicor (former Falck
Security Oy) has been operating in the security industry in Finland
since 1922. Local subsidiaries of large international companies have a
strong hold of the market in most sub-sectors. The biggest security
companies represent only 2,2 percent of the companies in the industry,
but employ 77 percent of the industry\'s personnel, and generate over 70
percent of the Finnish security and safety industry turnover.

Guarding services, structural security products, and information
security products and services are the largest sub-sectors. The largest
industries contracting security services are the manufacturing industry,
real estate and construction, and the trade industry.

There are no trade barriers or market impediments for safety and
security equipment. The customs duty on safety and security equipment
imported from outside of the EU countries varies between 2.7 percent to
4.9 percent. Finland's Value Added Tax of 22 percent is assessed on all
imported goods. Products that are imported or exported within the EU
must carry the CE marking. According to local sources, U.S. companies,
and especially U.S. security products, enjoy a good reputation in the
Finnish security market and are considered to be of very high quality.
On the other hand, American products are also seen as expensive and not
necessarily up to EU product standards.

### Best Products/Services [**Return to top**](#ch4)

The construction of new office- and housing facilities, and increase in
general security awareness are reasons for the security companies\'
currently positive outlook on future business. New growth sectors are
expected to be found in the public government sector, especially on
communal level, and also within private residences. Break-in and fire
detection equipment, and water damage prevention and control are
expected to be hot items in the private property security market.

### Opportunities [**Return to top**](#ch4)

There is a bi-annual, local security industry trade fair for companies
and private citizens called FinnSec. FinnSec is the most important
safety and security event in the Nordic countries and the best possible
forum to present products and services in the field. It attracts large
numbers of decision makers responsible for safety and security at
companies and other organizations.

In 2008, the Finnsecurity ry will be hosting FinnSec PRO 08, which will
be held at the Helsinki Fair Center on December 10, 2008.

### Resources [**Return to top**](#ch4)

Finnsecurity ry
[www.finnsecurity.fi](http://www.finnsecurity.fi/www/index.php)

FinnSecPRO 08 Security and Safety Trade Fair:
<http://www.finnexpo.fi/exhibition.asp?Id=1692>

<mia.maki@mail.doc.gov> (local contact)

## Agricultural Sectors [**Return to top**](#ch4)

### Overview [**Return to top**](#ch4)

  ------------------------- --------------- --------------- ---------------
  Data Table - \$Millions   2005            2006            2007 (forecast)

  #Total Market Size        18,440          20,596          21,000

  Total Local Production    28,125          31,717          32,000

  \*Total Exports           14,375          16,793          17,000

  \*Total Imports           4,690           5,672           5,500

  \*Imports from the US     73              72              72
  ------------------------- --------------- --------------- ---------------

Exchange Rate: \$1=€0.80 (year 2006 average)

Source: \*Finnish Customs and #Statistics Finland (http://www.stat.fi)

\*Note: The above statistics are unofficial estimates

Due to the severe Nordic winters and relatively short growing season,
Finland relies heavily on imported food and agricultural products.
Finland's geographical proximity and long-established connections to the
Baltic States and Russia offers an ideal business base in Northern
Europe. Increased demand for consumer goods, agribusiness opportunities,
food industry investments and tourism in the region has been generated
by structural reforms and development of market economies in the Baltic
countries and Russia.

### Best Products/Services [**Return to top**](#ch4)

Best prospects: wine, beer, healthy snacks, dried fruits and nuts,
ethnic foods, organic foods, health and diet foods, convenience foods,
frozen juices, TexMex items, sauces/seasonings, rice, seafood, pet food,
canned fruits and vegetables, and fresh fruits: apples, pears, grapes,
cherries, avocados.

### Opportunities [**Return to top**](#ch4)

Finland is a sophisticated market with a high standard of living, a
well-educated workforce and growing incomes. The Finnish consumer has a
high acceptance of new products and concepts. U.S. products are
considered high quality and trendy. There is growing consumer demand for
value-added products, convenience foods and functional foods as well as
a proliferation of \"healthy\" and \"greener\" foods.

### Resources [**Return to top**](#ch4)

For current data on agricultural trade prospects with Finland, the
reader is referred to the following Internet Web site:
[www.usemb.se/Agriculture](http://www.usemb.se/Agriculture). The USDA
office in Stockholm, which has regional responsibility for Sweden,
Finland and Norway, maintains this site. Its content includes an
analytical overview of agricultural marketing opportunities and reports,
marketing activities of possible interest to U.S. firms, an array of
exporter/importer services, and links to sites containing a detailed
current breakdown of individual country imports/exports of agricultural
products subdivided into several product categories (bulk, intermediate,
consumer-oriented, forestry and fishery).

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking
    Requirements](#labeling-and-marking-requirements-return-to-top)

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

-   [Customs Regulations and Contact
    Information](#customs-regulations-and-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

-   [Web Resources](#web-resources-return-to-top-1)

## Import Tariffs [**Return to top**](#ch5)

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 C.I.F. (cost,
insurance, freight) 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. The customs value is determined according to the GATT
Valuation Agreement and the Community Customs Code (Council regulation
2913/92), and the Regulation Laying Down Provisions for Implementation
of the Customs Code (Commission regulation 2454/93). Depending on the
product and excluding the foodstuff, the import tariff ranges from
0-17%.

For further information, please visit
[www.tulli.fi](http://www.tulli.fi/) (Finnish Customs).

## Trade Barriers [**Return to top**](#ch5)

Finland's adoption of EU internal market practices in 1995 defines
Finland's trade relations both inside the EU and with non-EU countries.

Finland replaced its turnover tax with a value-added tax in June 1994.
The government has kept the basic VAT rate at the same level as the old
turnover tax, which is 22 percent. Food products are taxed at 17
percent. Sport facilities usage, medicines, books, cinemas, passenger
transport services, hotel and other accommodation, entertainment
performances, sporting events, zoos, museums, and other such events or
institutions are taxed at 8 percent. Other services, including health
care, education, insurance, newspaper & periodical subscriptions and
rentals are not subject to VAT. Agricultural and forestry products
continue to be subject to different forms of taxation outside the VAT.

In March 1997 EU commitments required the establishment of a tax border
between the autonomously governed, but territorially Finnish, Aland
Islands and the rest of Finland. As a result, the trade of goods and
services between the rest of Finland and Aland Islands is now treated as
if it were trade with a non-EU area. Even though the Aland Islands are
part of the EU, just as Finland is, Aland does not belong to the
Union\'s tax area. This exception was drafted in order to protect the
important shipping traffic and the tax-free sales when EU countries
abandoned duty-free sales. The trade effect of this treatment is minimal
since the Aland Islands are part of the EFTA tariff area.

For further information on trade barriers, please visit
[www.ustr.gov](http://www.ustr.gov/) (USTR Reports, Document library;
reports & publications, EU).

## Import Requirements and Documentation [**Return to top**](#ch5)

Certain import/export items need to meet with special requirements and
certifications set by the European Union or national standards. These
are mostly articles that might damage health, welfare or country's
economy, or result in the spread of animal and plant diseases.

The following items, among others, are subject to restrictions:

Foodstuffs, fodder and fertilizers, alcoholic beverages and other
products containing alcohol, pharmaceuticals, narcotics and dangerous
drugs, some chemicals, nuclear and radioactive substances, explosives,
blade knives, firearms and ammunition, obscene publications, and
pressure vessels.

For further information, please visit
[www.tulli.fi](http://www.tulli.fi/) (Finnish Customs).

## U.S. Export Controls [**Return to top**](#ch5)

A booklet on Finland's export controls is available from the Ministry
for Foreign Affairs, Export Controls Unit
([formin.finland.fi/english](http://formin.finland.fi/english)) -
E-mail: <heikki.yrjola@formin.fi>

## Temporary Entry [**Return to top**](#ch5)

Temporary exemption from duty can be granted, for instance, to the
following:

\- Goods intended for public displays at exhibitions and fairs

\- Commercial samples

\- Professional tools and equipment

If the goods are put to unauthorized use or are not exported within the
prescribed time they must go through normal customs clearance, and
become liable for relevant duties and taxes.

In Finland, the ATA-Carnet, the international customs documentation for
temporary duty-free admission, is issued by the Chamber of Commerce. The
ATA-Carnets are frequently used for temporary imports, e.g. samples,
exhibition materials, and professional equipment (laptop computers,
software), and are valid for one year.

## Labeling and Marking Requirements [**Return to top**](#ch5)

Labeling and marking requirements in Finland are based on the Act on
Product Safety, which was enacted in accordance with the EU directive on
general product safety. The following information should be included in
retail packaging, or otherwise marked on the product (a sticker, label,
etc.):

\- Name of the product (indicating clearly the contents of the package)

\- Name of the manufacturer or the name of the company that had the
product manufactured, or name of the importer

If warranted by safety considerations or economic security of the
consumer, the following information should also be included on the
retail packaging or otherwise clearly identified on the product:

\- Contents of the product

\- Amount of contents (weight or volume of the contents to be specified,
measures in metric system)

\- Manufacturing allotment code or similar to identify and trace the
product

\- Assembling instructions, including a note if professional skills are
needed to do it

\- Operating instructions

\- Care instructions

\- Instructions on product disposal including a warning of possible
danger related to the use or disposal of the product.

Finland has precise labeling requirements for foodstuff. A retail-size
food package must show the name and address of the manufacturer, packer
or importer, commercial name of the product, net metric weight or
volume, ingredients in descending order of weight, last recommended date
of sale, and storage instructions if perishable or intended for infants.
Mandatory information described above must be provided in Finnish and
Swedish. More information on labeling and marking requirements, please
visit The Finnish Consumer Agency
[www.kuluttajavirasto.fi](http://www.kuluttajavirasto.fi/) and
[www.evira.fi](http://www.evira.fi/) (Finnish Food Safety Authority).

## Prohibited and Restricted Imports [**Return to top**](#ch5)

The Finnish law, based on the EU legislation prohibits or restricts
import of the following products:

-   PCB and PCT chemicals used in transformers and condensers causing
    problem waste products

-   CFC chemicals

-   Whale meat (CITES -- Convention on International Trade in Endangered
    Species of Wild Flora and Fauna)

For more information, please see
[http://www.tulli.fi](http://www.tulli.fi/),
[http://www.sttv.fi](http://www.sttv.fi/),
[http://www.ymparisto.fi](http://www.ymparisto.fi/)

## Customs Regulations and Contact Information [**Return to top**](#ch5)

National Board of Customs: [http://www.tulli.fi](http://www.tulli.fi/)

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-11)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Conformity Assessment](#conformity-assessment-return-to-top)

-   [Product Certification](#product-certification-return-to-top)

-   [Accreditation](#accreditation-return-to-top)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

-   [Contacts](#contacts-return-to-top)

### Overview [**Return to top**](#standards-return-to-top)

The central body for standardization in Finland is the Finnish Standards
Association - SFS ([www.sfs.fi](http://www.sfs.fi/)). SFS and its
standards writing bodies, SESKO Standardization in Finland
([www.sesko.fi](http://www.sesko.fi/)) and Finnish Communications
Regulatory Authority ([www.ficora.fi](http://www.ficora.fi/)) are
members of the European standards organizations CEN, CENELEC and ETSI.

National SFS Standards are sold in Finland only by SFS. National ISO
member bodies abroad handle distribution of SFS standards. SFS and SESKO
are the Finnish sources for all international standards and drafts of
the International Organization for Standardization (ISO), for European
standards and drafts of CEN and for publications of ISO member bodies.
SFS also distributes other foreign standards and technical regulations.

Products tested and certified in the U.S. to American standards are
likely to have to be retested and re-certified to European Union (EU)
requirements as a result of the EU's different approach to the
protection of the health and safety of consumers and the environment.
Where products are not regulated by specific EU technical legislation,
they are always subject to the EU's General Product Safety Directive as
well as to possible additional national requirements.

European Union standards created in recent years under the New Approach
are harmonized across the 27 EU member states and European Economic Area
countries in order to allow for the free flow of goods. A feature of the
New Approach is CE marking. While harmonization of EU legislation can
facilitate access to the EU Single Market, manufacturers should be aware
that Regulations and technical standards might also function as barriers
to trade if U.S. standards are different from those of the European
Union.

The European Union is currently undertaking a major revision of the New
Approach that will enhance some aspects, especially in the areas of
market surveillance. To follow the revision, please visit
[http://ec.europa.eu/enterprise/regulation/internal_market_package/index_en.htm](http://ec.europa.eu/enterprise/newapproach/review_en.htm)

### Standards Organizations [**Return to top**](#standards-return-to-top)

Many standards in the EU are adopted from international standards bodies
such as the International Standards Organization (ISO). The drafting of
specific EU standards is handled by three European standards
organizations:

-   CENELEC, European Committee for Electrotechnical Standardization

(see <http://www.cenelec.org/Cenelec/Homepage.htm>)

-   ETSI, European Telecommunications Standards Institute

> (see <http://www.etsi.org/>)

-   CEN, European Committee for Standardization, handling all other
    standards

(see <http://www.cen.eu/cenorm/index.htm>)

The only organization that develops standards in Finland is the Finnish
Standards Association (see [www.sfs.fi](http://www.sfs.fi/)).

To know what CEN and CENELEC have in the pipeline for future
standardization, it is best to visit their websites. CEN's \"business
domain\" page provides an overview by sector and/or technical committee
whereas CENELEC offers the possibility to search its database. ETSI's
portal (<http://portal.etsi.org/Portal_Common/home.asp>) leads to
ongoing activities.

I

#### NIST Notify U.S. Service

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT Agreement) to
report to the WTO all proposed technical regulations that could affect
trade with other Member countries. **Notify U.S.** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical regulations that can affect your
access to international markets. Register online at Internet URL:
[http://www.nist.gov/notifyus/](http://www.nist.gov/notifyus/%0D)

### Conformity Assessment [**Return to top**](#standards-return-to-top)

Conformity Assessment is a mandatory step for the manufacturer in the
process of complying with specific EU legislation. The purpose of
conformity assessment is to ensure consistency of compliance during all
stages of the production process to facilitate acceptance of the final
product. EU product legislation gives manufacturers some choice with
regard to conformity assessment, depending on the level of risk involved
in the use of their product. These range from self-certification, type
examination and production quality control system, to full quality
assurance system. You can find conformity assessment bodies in
individual Member State country in this list by the European Commission.

Key Link: <http://ec.europa.eu/enterprise/newapproach/nando/>

To promote market acceptance of the final product, there are a number of
voluntary conformity assessment programs. CEN's certification systems
are the Keymark, the CENCER mark, and the European Standard Agreement
Group. CENELEC has its own initiative. ETSI does not offer conformity
assessment services.

[List of Finland's main conformity assessment bodies working with
Finnish Standards Association (see www.sfs.fi):]{.underline}

-   Kemianteollisuus ry (Chemical Industry Federation) -- (see
    [www.chemind.fi](http://www.chemind.fi/))

-   Oy Keskuslaboratorio Central Laboratorium Ab (KLC Finland) -- (see
    [www.klc.fi](http://www.klc.fi/))

-   MTT/Maa -- ja elintarviketalouden tutkimuskeskus (Agrifood Research
    Finland) -- (see [www.mtt.fi](http://www.mtt.fi/))

-   Metsäteollisuus ry (Finnish Forest Industries Federation) -- (see
    [www.forestindustries.fi](http://www.forestindustries.fi/))

-   Muoviteollisuus ry (Finnish Plastics Industries Federation) -- (see
    [www.plastics.fi](http://www.plastics.fi/))

-   Rakennusteollisuus RT ry (Confederation of Finnish Constructions
    Industries) -- (see
    [www.rakennusteollisuus.fi](http://www.rakennusteollisuus.fi/))

-   SESKO ry (SESKO Standardization in Finland) -- (see
    [www.sesko.fi](http://www.sesko.fi/))

-   Standardoimisyhdistys TEVASTA ry (Standards Association of Textiles
    and Clothing Industry) -- (see
    [www.finatex.fi](http://www.finatex.fi/))

-   Suomen Ymparistokeskus, SYKE (Finnish Environmental Association) --
    (see [www.ymparisto.fi/syke](http://www.ymparisto.fi/syke))

-   Teknologiateollisuus ry (Technology Industries of Finland) -- (see
    [www.teknologiateollisuus.fi](http://www.teknologiateollisuus.fi/))

-   Tiehallinto (Finnish Road Administration) -- (see
    [www.tiehallinto.fi](http://www.tiehallinto.fi/))

-   Viestintavirasto (Finnish Communications Regulatory Authority) --
    (see [www.ficora.fi](http://www.ficora.fi/))

-   Yleinen Teollisuusliitto, YTL (General Industry Federation) -- (see
    [www.ytl.fi](http://www.ytl.fi/))

-   Oljy -- ja Kaasualan Keskusliitto (Finnish Oil and Gas Federation)
    -- (see [www.oil-gas.fi](http://www.oil-gas.fi/))

### Product Certification [**Return to top**](#standards-return-to-top)

Product certification is voluntary in Finland.

To sell products on the EU market of 27 Member States as well as Norway,
Liechtenstein and Iceland, U.S. exporters are required to apply CE
marking whenever their product is covered by specific product
legislation. CE marking product legislation offers manufacturers a
number of choices and requires decisions to determine which
safety/health concerns need to be addressed, which conformity assessment
module is best suited to the manufacturing process, and whether or not
to use EU-wide harmonized standards. There is no easy way for U.S.
exporters to understand and go through the process of CE marking, but
hopefully this section provides some background and clarification.

Products manufactured to standards adopted by CEN, CENELEC and ETSI, and
published in the Official Journal as harmonized standards, are presumed
to conform to the requirements of EU Directives. The manufacturer then
applies the CE marking and issues a declaration of conformity. With
these, the product will be allowed to circulate freely within the EU. A
manufacturer can choose not to use the harmonized EU standards, but then
must demonstrate that the product meets the essential safety and
performance requirements. Trade barriers occur when design, rather than
performance, standards are developed by the relevant European
standardization organization, and when U.S. companies do not have access
to the standardization process through a European presence.

The CE marking addresses itself primarily to the national control
authorities of the Member States, and its use simplifies the task of
essential market surveillance of regulated products. Although CE marking
is intended primarily for inspection purposes by Member State
inspectors, the consumer may well perceive it as a quality mark.

The CE marking is not intended to include detailed technical information
on the product, but there must be enough information to enable the
inspector to trace the product back to the manufacturer or the
authorized representative established in the EU. This detailed
information should not appear next to the CE marking, but rather on the
declaration of conformity, the certificate of conformity (which the
manufacturer or authorized agent must be able to provide at any time,
together with the product\'s technical file), or the documents
accompanying the product.

### Accreditation [**Return to top**](#standards-return-to-top)

Independent certification bodies, known as notified bodies, have been
officially accredited by competent authorities to test and certify to EU
requirements. However, under U.S.-EU Mutual Recognition Agreements
(MRAs), notified bodies based in the United States and referred to as
conformity assessment bodies, are allowed to test in the United States
to EU specifications, and vice versa. The costs are significantly lower
which results in U.S. products becoming more competitive. At this time,
the U.S.-EU MRAs cover the following sectors: EMC (in force), RTTE (in
force), medical devices (in transition), pharmaceutical (on hold),
recreational craft (in force) and marine equipment (in force).

The U.S. Department of Commerce, National Institute of Standards and
Technology (NIST), has a link on its website to American and European
Conformity Assessment bodies operating under a mutual recognition
agreement.

Key Link: <http://ts.nist.gov/Standards/Global/mra.cfm>

Accreditation is handled at member state level. \"European
Accreditation\"
([http://www.european-accreditation.org/default_flash.htm](http://www.european-accreditation.org/))
is an organization representing nationally recognized accreditation
bodies. Membership is open to nationally recognized accreditation bodies
in countries in the European geographical area that can demonstrate that
they operate an accreditation system compatible with EN45003 or ISO/IEC
Guide 58.

Please contact the Finnish Accreditation Service (FINAS) for further
information (see [www.mikas.fi](http://www.mikas.fi/)).

### Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

The Official Journal is the official gazette of the European Union. It
is published daily and consists of two series covering draft and adopted
legislation as well as case law, questions from the European Parliament,
studies by committees, and more
([europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en](http://europa.eu.int/eur-lex/lex/JOIndex.do?ihmlang=en)).
It lists the standards reference numbers linked to legislation
([www.newapproach.org/Directives/DirectiveList.asp](http://www.newapproach.org/Directives/DirectiveList.asp)).
National technical Regulations are published on the Commission's website
[ec.europa.eu/comm/enterprise/tris/](http://ec.europa.eu/comm/enterprise/tris/)
to allow other countries and interested parties to comment.

Member countries of the World Trade Organization (WTO) are required
under the Agreement on Technical Barriers to Trade (TBT) Agreement to
report to the WTO all proposed technical Regulations that could affect
trade with other member countries. **Notify Us** is a free, web-based
e-mail subscription service that offers an opportunity to review and
comment on proposed foreign technical Regulations that can affect your
access to international markets. Register online at Internet URL:
[tsapps.nist.gov/notifyus/data/index/index.cfm](http://tsapps.nist.gov/notifyus/data/index/index.cfm)

### Labeling and Marking [**Return to top**](#standards-return-to-top)

Manufacturers are advised to take note that all labels require metric
units although dual labeling is also acceptable until end of December
2009. The use of language on labels has been the subject of a Commission
Communication, which encourages multilingual information, while
preserving the right of Member States to require the use of language of
the country of consumption.

The EU has mandated that certain products be sold in standardized
quantities. Council Directive 2007/45/EC, to replace 80/232/EC in April
2009, harmonizes packaging of wine and spirits throughout the EU.
Existing national sizes will be abolished with a few exceptions for
domestic producers.

Key Link:
[http://ec.europa.eu/enterprise/prepack/packsize/packsiz_en.htm](http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31980L0232:EN:HTML)

###### The Eco-label 

EU legislation in 1992, revised in 2000, distinguishes environmentally
friendly products and services through a voluntary labeling scheme
called the Eco-label. Currently, the scheme applies to 7 product groups:
cleaning products, appliances, paper products, clothing, lubricants,
home and garden products and tourism services. The symbol, a green
flower, is a voluntary mark. The Eco-label is awarded to producers who
can show that their product is less harmful to the environment than such
similar products. This "green label" also aims to encourage consumers to
buy green products. However, the scheme does not establish ecological
standards that all manufacturers are required to meet to place product
on the market. Products without the EU Eco-label can still enter the EU
as long as they meet the existing health, safety, and environmental
standards and Regulations.

[The Swan Label]{.underline}

Besides the CE Mark, which is required across the European Union, the
Swan Label is a neutral and reliable Nordic Environmental Label. It
directs products, their production and consumption into a more
environmentally friendly direction. The Swan Label indicates that the
products burden the environment less than other corresponding products -
without compromising performance characteristics.

### Contacts [**Return to top**](#standards-return-to-top)

U.S. Mission to the E.U.

Foreign Commercial Service

Rue Zinner 13

B - 1000 Brussels, Belgium

Fax: 32 2 513 1228

Louis Santamaria -- Standards Attaché

Tel: 32 2 508 2674

[louis.santamaria@N0SPAM.mail.doc.gov](mailto:louis.santamaria@mail.doc.gov)

Sylvia Mohr -- Standards Specialist

sylvia.mohr@mail.doc.gov

Tel: 32 2 508 2675

Fax: 32 2 513 1228

CEN -- European Committee for Standardization

Rue de Stassart 36

B -- 1050 Brussels, Belgium

Fax: 32 2 550 08 19

Tel: 32 2 550 08 25 / 550 08 11

[www.cenorm.be]{.underline}

CENELEC -- European Committee for Electrotechnical Standardization

Rue de Stassart 35

B -- 1050 Brussels, Belgium

Tel: 32 2 519 68 71

Fax: 32 2 519 69 19

[www.cenelec.org]{.underline}

ETSI - European Telecommunications Standards Institute

Route des Lucioles 650

F -- 06921 Sophia Antipolis Cedex, France

Tel: 33 4 92 94 42 12

Fax: 33 4 93 65 22 99

[www.etsi.org]{.underline}

European Commission

Enterprise Directorate - General

Rue de la Science 15

B -- 1040 Brussels, Belgium

Mail: Office: SC15 02/09 B -- 1049 Brussels

Tel: 32 2 299 56 72

Fax: 32 2 299 16 75

[http://europa.eu.int/comm/enterprise/standards_policy/]{.underline}

EFTA -- European Free Trade Association

Rue de Trèves 74

B -- 1040 Brussels

Tel: 32 2 286 17 41

Fax: 32 2 286 17 42

[http://www.efta.int/]{.underline}

NORMAPME -- European Office of Crafts Trades and Small and Medium-Sized

Enterprises for Standardization

Rue Jacques de Lalaing 4

B -- 1040 Brussels, Belgium

Tel: 32 2 282 05 31

Fax: 32 2 282 05 35

[www.normapme.com]{.underline}

ANEC - European Association for the Co-ordination of Consumer
Representation in Standardization

32, box 27, Avenude Tervueren

B -- 1040 Brussels, Belgium

Tel: 32 2 743 24 70

Fax: 32 2 706 54 30

[www.anec.org]{.underline}

ECOS -- European Environmental Citizens Organization for Standardization

Boulevard de Waterloo 34

B -- 1000 Brussels, Belgium

Tel: 32 2 289 10 93

Fax: 32 2 289 10 99

EOTA -- European Organization for Technical Approvals (for construction
products)

Avenue des Arts 40

B -- 1040 Brussels, Belgium

Tel: 32 2 502 69 00

Fax: 32 2 502 38 14

[info@eota.be]{.underline}

EOTC -- European Organization for Conformity Assessment

Rue de Stassart 36

B -- 1050 Brussels, Belgium

Tel: 32 2 502 40 40

Fax: 32 2 502 42 39

[www.eotc.be]{.underline}

<tarja.kunnas@mail.doc.gov> (local contact)

## Trade Agreements [**Return to top**](#ch5)

######### Membership in Free Trade Arrangements

Finland joined the European Union on January 1, 1995, which means that
Finland complies with trade agreements that the EU has made with third
countries. Finland is also a member of the European Free Trade
Association, and the European Economic Area.

##### Bilateral Investment Agreements 

Finland has concluded bilateral investment agreements with the following
58 countries: Azerbaijan, Albania, Algeria, Argentina, Armenia, Belarus,
Bosnia-Herzegovina, Bulgaria, Chile, China, Croatia , the Czech
Republic, the Dominican Republic, Egypt, El Salvador, Estonia, Ecuador,
Ethiopia, Guatemala, Hungary, India, Indonesia, Iran, Kazakhstan,
Kirghizia, , Kuwait, Latvia, Lithuania, Macedonia, Malaysia, Morocco,
Mozambique, Mexico, Namibia, Nigeria, Oman, Oriental Republic of
Uruguay, Peru, Philippines, Poland, Qatar, Republic of Korea, Republic
of Lebanon, Republic of Moldova, Republic of Slovenia, Romania, Russia,
Slovakia, South Africa, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey,
Ukraine, United Arab Emirates, Uzbekistan, and Vietnam.

In September 1989, Finland and the U.S. signed a convention (TIAS 12101)
for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital. The convention
entered into force December 30, 1990. The tax convention was amended on
31 May 2006 under a protocol signed in Helsinki. The protocol changes
the rules that apply to people falling within the area to which the
convention applies, domicile, taxation of dividends, interest and
royalties, restrictions on benefits, a method for eliminating double
taxation and an exchange of tax information.

Among other things, the protocol eliminates the source-country
withholding tax on many intercompany dividends and on dividends paid to
pension funds, updates the dividend article to incorporate policies
reflected in the U.S. Model provision, such as those regarding real
estate investment trusts (REITs), eliminates source-country withholding
royalties payment regardless of type of intellectual property, bringing
the convention in line with the U.S. Model treaty. The protocol has been
passed by the Finnish Parliament, and U.S. signed the instruments of
ratification in December 2007.

## Web Resources [**Return to top**](#ch5)

National Board of Customs, http://[www.tulli.fi](http://www.tulli.fi/)

The Finnish Consumer Agency & Ombudsman, http://www.kuluttajavirasto.fi

Finnish Food Safety Authority, http://www.evira.fi

USTR Reports, Document library; reports & publications,
http://[www.ustr.gov](http://www.ustr.gov/)

National Product Control Agency for Welfare and Health,
http://www.sttv.fi

Environmental Administration, http://www.ymparisto.fi

Finnish Customs, [www.tulli.fi](http://www.tulli.fi/)

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch6 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer
    Policies](#conversion-and-transfer-policies-return-to-top)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#thirtyfour)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio Investment](#fortytwo)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

-   [Web Resources](#web-resources-return-to-top-2)

## Openness to Foreign Investment [**Return to top**](#ch6)

The Finnish Government is open to direct foreign investment. There are
no general regulatory limitations relating to acquisitions. Legislative
control of mergers and acquisitions is mainly governed by domestic and
EU competition rules. Certain acquisitions of large Finnish companies
may require follow-up clearance from the Ministry of Trade and Industry
in accordance with the Act on the Control of Foreign Acquisitions of
Finnish Companies. The purpose of the clearance is to protect essential
national interests.

Unlike many other countries, however, Finland does not \"positively\"
discriminate in favor of foreign-owned firms by giving them tax holidays
or other subsidies not available to other firms in the economy. Instead,
Finland relies on \"condition-providing policies\" which means pursuing
policies that offer all firms in the economy appropriate conditions and
sufficient pools of advanced factors of production, including an
educated labor force and well-functioning infrastructure.

There are some legal requirements for non-European Economic Area (EEA)
residents (persons or companies) to conduct business in Finland. In
certain areas involving specific safety or health hazards or financial
risks, specific conditions must be met to conduct trade. A non-EEA
(person or company) operating in Finland must obtain a license or a
notification when starting a business in the \"regulated\" forms of
trade. Licensed trades are governed by acts and decrees.

Licensed trades include (the licensing authority is in brackets):

-   Inspection of motor vehicles (Finnish Vehicle Administration AKE)

-   Production, import, export, wholesale, special sale and usage
    subjected to the licensing of alcohol beverages and spirits
    (Products Control Center of Social Welfare and Health)

-   Production, import, distribution and selling of medicines;
    pharmaceutical companies, pharmaceutical wholesalers and pharmacies
    engaged in the aforementioned activities. Hospital pharmacies and
    medicine centers in health centers and hospitals engaged in the
    production and distribution of medicines. Selling of pharmaceutical,
    veterinary and drug preparations (National Agency of Medicines)

-   Stock exchanges, central securities depositories, option
    institutions, clearing houses (Ministry of Finance)

-   Production and import of precious metal products. Exception:
    gold/platinum products weighing less than 1g and silver products
    weighing less than 10g (Safety Technology Authority TUKES)

-   Mining operations and prospecting: applications for mining claims
    and patents (Ministry of Trade and Industry MTI)

-   Production of synthetic fertilizers and manufactured feeds and trade
    in seeds (Finnish Food Safety Authority EVIRA)

-   Commercial Airline Operations (scheduled and charter airline
    traffic), Air operator certificates and operating licenses (Civil
    Aviation Administration, Flight safety Authority)

-   Collection of debts on behalf of others (State Provincial Office of
    Southern Finland)

-   Postal services (weighing less than 2kg). Courier services,
    distribution and delivery operations concerning minor postal matters
    do not require a license. (Government)

-   Credit institutions, pawn broking institutions, investment service
    companies, mutual fund companies and custodians (Financial
    Supervision Authority RATA)

-   Electrical contracting (electrician activities, repair of electrical
    appliances ) (TUKES and Henkilo- ja Yritysarviointi SETI Oy)

-   Design, construction, manufacture, repairing, servicing and using of
    electrical appliances , production and transport of electricity for
    other than personal use (TUKES and Henkilo- ja Yritysarviointi SETI
    Oy)

-   Telecommunications activities (MTI)

-   Handling and storage of chemicals hazardous to health and the
    environment (TUKES)

-   Large-scale handling (TUKES)

-   Small-scale handling (Local Chief Fire Officer or Chemicals Control
    Authority)

-   Insurance brokering (Insurance Supervision Authority)

-   Insurance Agencies (Ministry of Social Affairs and Health)

-   Package tour agencies (Consumer Agency)

-   Security companies (Ministry of the Interior)

Providers of investment advisory services need authorization (RATA) in
compliance with The Markets in Financial Instruments Directive (MiFID),
which entered into force in November 2007.

In certain areas of trade, new entrepreneurs are required to register or
file a separate notification of starting the business. These include:

\- Housing agencies, real estate agents and housing rental agencies
(State Provincial Office)

\- Staff hire services (Industrial Safety Districts)

Other Notifications:

\- Notifications complying with the Freedom of the Press Act (City
Administrative Court)

\- Public events such as entertainments, competitions etc open to the
public (Police)

The Aland Islands are an exception to common Finnish practice. Based on
international agreements dating from 1921, property ownership and the
right to conduct business are limited to only those individuals with
right of domicile in the Aland Islands. However, the Aland Government
can, occasionally, grant exemptions from the requirement of right of
domicile for those wishing to acquire real property or conduct a
business in Aland.

Since the beginning of the 1990s, the Finnish state has renewed its
ownership policies and started to privatize fully state-owned companies.
The Finnish state has holdings in 54 major companies. Of these, 29 are
state-owned companies in which the State is the majority shareholder and
25 are associated companies in which the State has a minority
shareholding. The State has holdings in 13 listed companies. As of May
2007, ownership steering of state-owned companies has been centralized
in a corporate ownership steering unit in the Prime Minister\'s Office.

Taxes: The corporate tax rate was lowered in 2005 from 29 to 26 percent,
and the tax rate on capital gains from 29 percent to 28 percent. The
effective tax rate for dividends received from quoted companies is 19.6
percent as 30 percent of the dividend is regarded as tax exempt and 70
percent as taxable. The company distributing dividend pays 26 percent
corporate income tax on its profit. Interest income is either subject to
withholding tax (28 percent) at source or taxable as capital income. The
net wealth tax was abolished in 2006.

The salary and fringe benefits paid to qualifying foreign key employees,
such as employees with special knowledge or competence, are taxed at the
rate of 35 percent during the first two years of the assignment in
Finland provided that the employee has a special tax card (which must be
applied for separately).

For more detailed tax guidance see the Finnish Foundation for Share
Promotion's Tax Guide
<http://www.porssisaatio.fi/default.aspx?path=159;172;423&id=8015>

## Conversion and Transfer Policies [**Return to top**](#ch6)

Except for those relating to money laundering, there are practically no
legal obstacles to direct foreign investment in Finnish securities and
exchange control regarding payments into and out of Finland. There is no
limit on dividend distributions, as long as they correspond to a
company\'s official earnings records. Payments to or from Finland must,
however, be made through authorized banks in Finland.

Finland implemented the EU regulation on controls of cash being
transported over the EU Community Border in June 2007. According to the
regulation persons carrying USD 14,500 (EUR 10,000) or more will be
required to declare cash upon entering or leaving EU territory. The
regulation only imposes an obligation to declare, it is not a
restriction or prohibitation regarding imports and export of cash.

Finland adopted the single currency (the Euro) on 1 January, 1999. The
Euro replaced the Finnish Markka (FIM) at the end of a three-year
transition period on January 1, 2002. One Euro equals FIM 5.94573.

## Expropriation and Compensation [**Return to top**](#ch6)

[]{#thirtyfour .anchor}Private property rights are well protected in
Finland. Private property is only expropriated for public purposes
(eminent domain), in a non-discriminatory manner, with reasonable
compensation, and in accordance with established principles of
international law.

## Dispute Settlement [**Return to top**](#ch6)

There is no record of any significant investment dispute in Finland in
recent years. Finland has a civil law system. Swedish law and Nordic
tradition have influenced statutory law and jurisprudence. EC law is
directly applicable in Finland and takes precedence over national
legislation. Finland has written and consistently applied commercial and
bankruptcy laws, and secured interest in property are recognized and
enforced.

Finland has signed the Convention on the Settlement of Investment
Disputes between States and National of other States (also known as the
ICSID Convention or the Washington Convention) on July 14, 1967 and
deposited its instrument of ratification on January 9, 1969. Finland has
attained status as Contracting State to the ICSID Convention on February
8, 1969. Finland signed the New York Convention of 1958 on the
Recognition and Enforcement of Foreign Arbitral Awards in December 1958.
The convention entered into force in Finland in April 1962.

The Arbitration Institute of the Central Chamber of Commerce of Finland,
established in 1911, promotes as an impartial body the settlement of
business disputes by arbitration. The Institute appoints arbitrators
both to domestic and international arbitration proceedings.

The Finnish legislation on arbitration was reformed in 1992. The main
purpose of the reform was to modernize the then existing arbitration act
(dating from 1928) and adapt it to international standards. The
Arbitration Act (967/1992)is divided into two sections: Section one
(Articles 2-50) applies to all arbitral proceedings having their seat in
Finland, i.e. irrespective of whether related to a national or an
international dispute, and Section two (Articles 51-55) applies to all
\"foreign awards\", i.e. arbitral awards having been rendered outside of
Finland. Arbitral awards in redemption cases under the Companies Act
have to be registered with the [National Board of Patents and
Registration](http://www.prh.fi/en.html).

The Market Court was established in 2002 as a special court for rulings
in market law, competition and public procurement cases.

Major revisions to the Finnish competition legislation took effect in
May 2004. The Act on Competition Restrictions was harmonized with EU
competition rules.

## Performance Requirements and Incentives [**Return to top**](#ch6)

There are no performance requirements or commitments imposed on foreign
investment in Finland. However, to conduct business in Finland, some
residency requirements must be met; the intent being to ensure that
persons liable for the company's acts can be brought to court if
necessary.

In 2003 the Finnish Parliament has adopted legislation which relaxed the
domicile requirements in Finnish company law. According to the
amendment, the managing director and at least one member of the board of
directors (and the supervisory board, if any) of a Finnish limited
liability company must be domiciled within the EEA. The nationality of
the founder is thus irrelevant.

Foreign-owned companies are eligible for government incentives on an
equal footing with Finnish-owned companies. Support is given in the
forms of cash grants, loans, tax benefits, equity participation,
guarantees and employee training.

Business aid: In Finland, government-administered aid to business
(investment aid, aid to business development, start-up subsidies,
transport aid, energy subsidies, employee training, tax relief) is
mainly aimed at improving the long term competitiveness of small and
medium-sized enterprises (SMEs). Business aid to companies is
coordinated by Employment and Economic Development Centers (T&E
Centers), whose 15 regional offices provide consulting and training as
well as financial aid. The centers are also a significant channel for EU
finance. Public funding is allocated to projects expected to contribute
considerably to project implementation, business success and employment.

Loans and guarantees by Finnvera: The state-owned financing company
Finnvera plc improves and diversifies the financing possibilities of
companies by granting loans and guarantees and by export financing
services. Finnvera serves its clients through 16 regional offices and
through the representation office in St. Petersburg.

R&D incentives by Finnish Funding Agency for Technology and Innovation
(Tekes): Funding by Tekes is intended for challenging and innovative
projects potentially leading to global success stories. Tekes funding is
aimed at companies and other organizations operating in Finland and
actively developing their technology, services and business operations.
The funding also supports the establishment

and expansion of start-up companies.

EU-funded support: The EU-funded programs aim to diversify the economic
and business structure and to improve employment. This is done by
supporting the establishment and development of small and medium-sized
enterprises and the expansion of their activities. Financing is directed
to projects developing the competitiveness, know-how and operating
environment of the SME sector, with a special emphasis on start-up
businesses and service sector companies.

For more detailed information see Invest in Finland's investment
incentives document
<http://www.investinfinland.fi/why_finland/businessenv/en_GB/businessenvironment/>

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

Private ownership and entrepreneurship is normal in Finland. In most
fields of business activity, participation by foreign companies or
individuals is unrestricted. As the government pursues privatization of
state-owned companies, both private and foreign participation is welcome
except in some enterprises operating in sectors related to national
security.

Competitive equality is the official standard applied to private
enterprises in competition with public enterprises. Private companies do
not face discrimination. With the end of the Restriction Act in January
1993, Finland removed most restrictions on foreign ownership of property
in Finland. Restrictions, such as requirements to obtain permission of
the local government in order to purchase a vacation home in Finland
were abolished January 1, 2000, bringing Finland fully in line with EU
norms.

## Protection of Property Rights [**Return to top**](#ch6)

Secured interest in property, both movable and real, are recognized and
enforced. The Finnish legal system protects property rights, including
intellectual property, and Finland adheres to numerous international
agreements concerning intellectual property. Finland has joined the most
important copyright agreements. Patent rights are consistent with
international standards. In Finland a granted patent applies for 20
years. The time of validity of patents can under certain conditions be
prolonged through a Supplementary Protection Certificate. In 1996,
Finland joined the European Patent Convention (EPC) and the European
Patent Organization (EPO). Finland is a member of WIPO, and participates
primarily through its membership in the EU. The idea of protection of
intellectual property is well developed.

Finland Joined WIPO's Patent Law Treaty (PLT) in March 2006.

Pharmaceutical patents: The Finnish government has been redressing a
situation under which pharmaceutical patents have received inadequate
protection in Finland. As a result, an amendment to the Medicine Act was
passed in December 2005. The amendment (intended to prohibit the
placement of patent-infringing pharmaceutical products on mandatory
generic substitution lists) was an important solution to one
intellectual property rights problem that had been deteriorating the
operating environment for innovative (including U.S.) companies.
However, a provision in the Finnish Health Insurance Act allows the
Pharmaceutical Pricing Board, a decision making body controlling both
pricing and reimbursement of prescription pharmaceuticals in Finland, to
cancel the reimbursement status of the original patent-protected
pharmaceutical product once a generic copy has been accepted for
reimbursement. The pharmaceutical industry is lobbying the Finnish
government to amend the Health Insurance Act to provide the same kind of
exclusion criteria as in the Medicine Act.

Information on copying and copyright infringement is provided by the
following copyright holder interest organizations: the Copyright
Information and Anti-Piracy Center (CIAPC), The Finnish Copyright
Society, The Finnish Copyright Institute, the Copyright Information
Centre, and The IPR University Centre. The Business Software Alliance
(BSA), a worldwide software anti-piracy organization, began operations
in Finland in January 1994.

Finland has been a member of the Paris Convention for the Protection of
Industrial Property since 1921, the Berne Convention for the Protection
of Literary and Artistic works since 1928 and the Rome International
Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting Organizations since 1983.

Finnish copyright legislation was amended in 2005 to meet the demands of
the digital environment and the Internet. The amendments to the
Copyright Act and the amended section 49 of the Criminal Code came into
force from the beginning of 2006. This reform implemented the Copyright
Directive adopted by the EU in 2001. The amendments also addressed a
number of national issues, such as the prohibition of importation of
pirate recordings for personal use.

The Finnish Copyright Act, which also grants protection to authors,
performing artists, record producers, broadcasting organizations and
catalog producers, has been adjusted to comply with EU directives. As
part of this harmonization, the period of copyright protection was
extended from 50 years to 70 years. Protection for database producers
(currently a part of catalog producer rights) has been defined
consistent with EU practice. The Finnish Copyright Act provides for
sanctions ranging from fines to imprisonment for up to two years. Search
and seizure are authorized in the case of criminal piracy, as is the
forfeiture of financial gains. The Copyright Act has covered computer
software since 1991.

Finland signed the WIPO Copyright Treaty (WCT) and the WIPO Performances
and Phonograms Treaty (WPPT) in May 1997, and the Finnish Parliament
adopted the treaties in autumn 2005.

Finland has been a member and signatory to the TRIPS Agreement since
1995.

Recent amendments to the Finnish Penal Code have enhanced the position
of employers in regard to the protection of their business secrets, with
employees now required to keep a former employer\'s business secrets
confidential for two years after termination of employment.

The Trade Mark Act, which came into force in March 2000, brought Finnish
Trade Mark Law into line with the Trade Mark Treaty (TLT). Finland
signed the Singapore Treaty on the Law of Trademarks in October 2006.

The significance of mortgage banks has remained minor as deposit banks
have traditionally handled housing loans in Finland. The Mortgage
Society of Finland is operating in accordance with designated special
legislation.

## Transparency of Regulatory System [**Return to top**](#ch6)

[]{#fortytwo .anchor}The legal and enforcement framework for competition
conforms to European Community praxis. Finland brought its law into full
conformity with the prohibition-based system of EC competition law in
May 2004.

The Securities Market Act (SMA) contains regulations on corporate
disclosure procedures and requirements, responsibility for flagging
share ownership, insider regulations and offenses, the issuing and
marketing of securities, and trading. The law defines and takes into
account new instruments, which have become common in financial markets,
such as securities lending and repurchase agreements. Finnish
legislation recognizes the same internationally common financial market
contractual arrangements as legislation elsewhere in the EU. Regulations
concerning clearing of securities trades have been incorporated in the
law since 1998. Clearing has become subject to licensing, and is
supervised by the Financial Supervision Authority, which oversees the
financial markets.

Finnish tax, labor, health and safety, and related laws and policies are
largely neutral towards the efficient mobilization and allocation of
investment. Finnish legislation does not normally influence regional
distribution of investment except when specifically designed to do so,
such as through regional incentive programs.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

Credit is allocated on market terms and is made available to foreign
investors in a non-discriminatory manner. The private sector has access
to a variety of credit instruments. Legal, regulatory, and accounting
systems are transparent and consistent with international norms.

The Helsinki Stock Exchange is part of the OMX Nordic Exchange division
within OMX Group, together with the stock exchanges in Stockholm,
Copenhagen, Iceland, Tallinn, Riga and Vilnius.

A national breakdown of the performance of multinational banking groups
is not feasible, therefore the financial results of banking groups cover
all group activities: the balance sheet of the biggest banks in Finland
(Nordea Bank Finland, OKO Bank Group, Sampo, Savings Banks, Aktia
Savings Bank, Local co-operative Banks, Bank of Aland, Gyllenberg
Private Bank, EVLI Bank, eQ Bank, Tapiola Bank, AsuntoHypobank,
Kaupthing Bank, S-Bank (excluding branches of foreign banks:
Handelsbanken , SEB and Danske Bank, DnB NOR Bank, Calyon, Citibank,
Deutsche Bank, Bank DnB NORD, Carnegie AB, Forex Bank and Swebank)
amounted to 214,620 million euro in 2006.

Recent years' mergers and alliances have been shaping the Finnish
banking sector. The banking and finance market has become increasingly
international, with Scandinavian banks particularly active in
cross-border mergers and acquisitions. The purchase of Sampo Bank by
Danske Bank in November 2006 cut the proportion of domestic ownership in
the Finnish finance industry to less than one half.

Finnish banks' profitability, efficiency and capital adequacy are all at
a healthy level.

Hostile takeovers have not in the past been part of Finnish business
culture and Finnish law does not distinguish between friendly and
hostile takeovers. Neither does Finnish legislation expressly address
takeover defenses. In Finnish law, the legality of takeover defenses are
evaluated primarily in light of the leading principles of the Security
Markets Act (SMA), the principle of equal treatment of all shareholders,
and general principles of company law. If challenged, the legality of
the defensive measures is subject to review by the courts.

## Political Violence [**Return to top**](#ch6)

There have been no instances of political violence since the struggle
for independence in 1918.

## Corruption [**Return to top**](#ch6)

Corruption in Finland is covered by the Criminal Code and provides for
sanctions ranging from fines to imprisonment for up to four years,
depending on the seriousness of the crime. Both giving and accepting a
bribe is considered a criminal act under the Criminal Code. Finland has
statutory tax rules concerning non-deductibility of bribes.

Only a few persons are convicted of bribery each year in Finland.
Finland ranked first, together with Denmark and New Zealand, and scored
9.4 out of a clean score of 10, in Transparency International's 2007
Corruption Perceptions Index (CPI). TI's national chapter in Finland,
Transparency Finland (TF), was founded in late 2003 and is chaired by Ms
Leila Mustanoja. Homepage <http://www.transparency.fi/>

Finland is a signatory to the OECD Convention of Anti-Bribery. The
instruments of ratification of the convention were deposited in December
1998. The amended Penal Code entered into force in January 1999. The
convention entered into force in February 1999.

Finland ratified the UN Convention against Corruption in July, 2006.

Finland ratified the Council of Europe Civil Law Convention on
Corruption in October 2001, it entered into force in November 2003, and
signed the UN Convention against Corruption in December 2003. The
Convention on Laundering, Search, Seizure and Confiscation of the
Proceeds from Crime entered into force in Finland in July 1994. The UN
Convention against Transnational Organized Crime was ratified in
February 2003.

Finland ratified the Criminal Law Convention on Corruption (EST 173) in
October 2002, and the Convention entered into force in February 2003.
Finland made reservations in respect of Article 12 (trading in
influence) and Article 17 (jurisdiction).

Finland is a party to the 1957 European Convention on Extradition.
Finland has ratified the 1959 European Convention on Mutual Legal
Assistance in Criminal Matters and its 1978 Additional Protocol. Finland
is a party to the 1996 Convention on Extradition between EU member
States as well the 1995 Convention on Simplified Extradition Procedure
between EU.

The U.S and Finland have an extradition treaty, signed in June 1976; it
entered into force in May 1980. The U.S. and Finland signed a bilateral
extradition and mutual legal assistance treaty (MLAT) in December 2004.
The U.S. and the EU signed bilateral extraditions and mutual legal
assistance (MLAT) treaties in December 2003. The Finnish Parliament
ratified the agreements (HE 85/2005) and approved the necessary
implementing bilateral instruments in December 2007.

In December 2007, the Council of Europe's Group of States against
Corruption (GRECO) found in its Finland evaluation report that bribery
of members of Parliament is too narrowly defined in Finnish law.
Moreover, GRECO recommended Finland to sharpen its present control over
political financing, to increase the transparency of donations to
political parties and election candidates as well as in relation to the
way in which the funds received are spent. The government acknowledged
that there is a need for reform in this area and is planning to
establish a multi-disciplinary working group.

## Bilateral Investment Agreements [**Return to top**](#ch6)

Finland has concluded bilateral investment agreements with the following
58 countries: Azerbaijan, Albania, Algeria, Argentina, Armenia, Belarus,
Bosnia-Herzegovina, Bulgaria, Chile, China, Croatia , the Czech
Republic, the Dominican Republic, Egypt, El Salvador, Estonia, Ecuador,
Ethiopia, Guatemala, Hungary, India, Indonesia, Iran, Kazakhstan,
Kirghizia, , Kuwait, Latvia, Lithuania, Macedonia, Malaysia, Morocco,
Mozambique, Mexico, Namibia, Nigeria, Oman, Oriental Republic of
Uruguay, Peru, Philippines, Poland, Qatar, Republic of Korea, Republic
of Lebanon, Republic of Moldova, Republic of Slovenia, Romania, Russia,
Slovakia, South Africa, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey,
Ukraine, United Arab Emirates, Uzbekistan, and Vietnam.

In September 1989, Finland and the U.S. signed a convention (TIAS 12101)
for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital. The convention
entered into force December 30, 1990. The tax convention was amended on
31 May 2006 under a protocol signed in Helsinki. The protocol changes
the rules that apply to people falling within the area to which the
convention applies, domicile, taxation of dividends, interest and
royalties, restrictions on benefits, a method for eliminating double
taxation and an exchange of tax information.

Among other things, the protocol eliminates the source-country
withholding tax on many intercompany dividends and on dividends paid to
pension funds, updates the dividend article to incorporate policies
reflected in the U.S. Model provision, such as those regarding real
estate investment trusts (REITs), eliminates source-country withholding
royalties payment regardless of type of intellectual property, bringing
the convention in line with the U.S. Model treaty. The protocol has been
passed by the Finnish Parliament, and U.S. signed the instruments of
ratification in December 2007.

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

In January 1996, OPIC and Finnvera (former Finnish Guarantee Board FGB)
signed an agreement to encourage joint U.S. - Finnish private
investments in Russia and the Baltic States. The 1996 agreement was
preceded, in 1992, by a Principles of Cooperation Agreement between OPIC
and the Finnish Fund for Industrial Cooperation (Finnfund).

Finland has been a member of the Multilateral Investment Guarantee
Agency (MIGA) since 1988.

## Labor [**Return to top**](#ch6)

The Finnish labor force is highly skilled and well educated. Of the 2.44
million persons employed, 5 percent are employed in the primary sector,
26 percent in industry and construction and 69 percent in services.

Finland has a high unionization rate of around 75 percent, and a long
tradition of social dialogue. Wage formation and labor market
institutions are based on legislation and agreements. The working life
legislation has been prepared on a tripartite basis by government and
social partners. Collective bargaining and collective labor agreements
are generally binding in nature. Finland adheres to most ILO
conventions; enforcement of worker rights is effective.

Regulation of the labor market -- minimum wages, working hours, working
conditions etc -- to a large extent takes place through collective
agreements instead of parliamentary legislation. In recent years, labor
market partners at the local level have been given more flexibility in
enforcing the stipulations of the collective agreements e.g. concerning
working time arrangements. The Act on Employment Contracts is the main
regulating act applied to employment relationships. It includes the
minimum conditions regarding working hours, annual leave, safety
conditions etc.

The unemployment rate in November 2007 was 6.1 percent, against 6.7
percent a year earlier. The unemployed are granted compensation (labor
market subsidy) which, if linked to earnings, as has been the case for
about 60 percent of the unemployed, guarantees moderate income for a
period up to 500 working days. The labor market subsidy has new
restrictions placed upon it starting in January 2006. People without
jobs after 500 days will to have demonstrate that they are actively
pursuing employment in order to continue receiving the benefit.

Finland is participating in an experiment taking place in the European
Community, the purpose being to find out what impact a targeted
reduction in value added tax has on employment and the grey economy. The
value added tax rate on hairdressing services and certain small repair
services has been reduced from 22 percent to 8 percent for 2007-2010.

The temporary limits on the free movement of workers from eight EU
member states were not renewed, and the restrictions applied to work
permits ended in Finland in May 2006. Parliament adopted the amendments
to the Aliens Act fully incorporating the directive on free movement of
EU citizens into national law. The Act came into force in April 2007.

Due to the aging population in Finland all sectors of the economy are
estimated to face labor shortages in the future.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

Finland has 4 free zones (Hanko, Hamina, Lappeenranta and Turku) and 4
Free Warehouse areas (Helsinki, Naantali, Kemi and Oulu). Finland's
biggest fenced and guarded free zone is located in Hanko, at the
southernmost tip of the country. Hanko is also the leading car terminal
in Finland, where 90 percent of the imports of registered car importers
are customs cleared.

In Finland, the duty-free free zone and warehouse licenses have in most
cases been granted to municipalities or cities, but one or several
commercial operators, approved by the customs districts, are usually in
charge of warehousing operations within the area. The duty-free storage
areas are available to both domestic and foreign-owned companies. The
free zone area regulations have been harmonized in the EU by the
Community Customs Code.

See Finnish Board of Customs ([www.tulli.fi](http://www.tulli.fi/)), for
more information.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

In 2006**,** there was a net outflow of direct investment to Finland, in
the amount of 2.9 billion euros: outward direct investment totaled 1.3
billion euros and inward direct investment 4.2 billion euros. At the end
of 2006, the value of the stock of outward direct investment was 71.3
billion euros and the value of the stock of inward direct investment was
50.5 billion euros. Finnish companies\' income on foreign direct
investment totaled 7.3 billion euros and foreign investors\' income on
direct investment in Finland totaled 4.9 billion euros.

No policies exist that govern the export of capital and outward direct
investment. Holders of capital, Finnish and foreign, can move funds at
will.

For more FDI statistical info See Bank of Finland's "2006 Direct
investment in Finland's balance of payments 9/27/2007 " - report
(<http://www.bof.fi/NR/rdonlyres/C79702D4-9965-4F30-BFE1-91CFFF50BA41/0/Sstied06.pdf>)

Major U.S. investors, in terms of turnover, in Finland in 2006, include:
Valtra/AGCO Corp (701 million euros), Hewlett-Packard (588 million
euros), Esso/Exxon Mobile Corp (\*562 million euros), IBM (\*501 million
euros), Paroc Group (\*403 million euros), Foster Wheeler Energia/Foster
wheeler Corp (\*378 million euros), John Deere Forestry (\*336 million
euros), Ford (315 million euros), Tellabs (289 million euros) and GE
Healthcare Finland (266 million euros). \* = consolidated turnover.

## Web Resources [**Return to top**](#ch6)

Finnish Foundation for Share Promotion's Tax Guide:
<http://www.porssisaatio.fi/default.aspx?path=159;172;423&id=8015>

National Board of Patents and Registration: <http://www.prh.fi/en.html>

Invest in Finland's investment incentives document:
<http://www.investinfinland.fi/why_finland/businessenv/en_GB/businessenvironment/>

Transparency Finland: <http://www.transparency.fi/>

Finnish Board of Customs: [http://www.tulli.fi](http://www.tulli.fi/)

Bank of Finland's "2006 Direct investment in Finland's balance of
payments 9/27/2007 " - report:
<http://www.bof.fi/NR/rdonlyres/C79702D4-9965-4F30-BFE1-91CFFF50BA41/0/Sstied06.pdf>

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 7: Trade and Project Financing

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#project-financing-return-to-top)

-   [Web Resources](#web-resources-return-to-top-3)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

Finland ranks among the most advanced countries in the world when it
comes to banking technology.  Where banks have devised services drawing
on new technologies, customers have welcomed the new ways of banking and
innovative solutions.  This approach plays a key role behind the
widespread use of the novel services in Finland.

Finnish banking is different from banking elsewhere in Europe in many
ways.  In Finland, payments are transmitted electronically up to 96% and
payment processing has been reduced at bank branches by not only
telebanking services, which have been readily adopted by both businesses
and households, but also by EFTPOS terminals and increased use of cards
for payment of shopping. Payment transmission between businesses is
almost entirely automatic. In practice, the paper vouchers are disposed
and a significant part of corporates' account statements are in
electronic format.

Currently, Finnish banks are in the process of changing over to a Single
Euro Payments Area, SEPA created by European banks, the European Central
Bank, and the European Commission. The new system will comprise credit
transfers, card payments and direct debits. In practice, the change
means that 31 national payment systems will be replaced by a new system,
operating according to uniform rules and common standards. At the
beginning of 2008, banks operating in Finland will offer their customers
SEPA payment transfer and SEPA payment card. For further information on
SEPA, please see http://www.fkl.fi

## How Does the Banking System Operate [**Return to top**](#ch7)

At the end of 2006, there were a total of 338 banks in Finland, 11 of
which are branches of foreign banks accepting deposits. The banks had a
total of 1,645 branches in Finland at the end of the year.

Mergers and consortiums have formed the Finnish banking sector. Banks
and insurance companies have sought new forms of co-operation, and the
operations of banks have extended to many sectors of financing and
investment. The financial and banking markets are international, and it
is almost impossible to draw a boundary between national and
international banking.

The most important piece of legislation governing banking in Finland is
the Act on Credit Institutions.  The Financial Supervision Authority
oversees the compliance with the laws and regulations, and ensures that
banks' capital adequacy is kept at a sound level.

The Federation of Finnish Financial Services is a trade body that
represents its member companies who engage in the financial services
industry in Finland.  The Federation was formed at the start of 2007
when the Finnish Bankers' Association, the Federation of Finnish
Insurance Companies, the Finnish Finance Houses Association, and the
Employers' Association of Finnish Financial Institutions joined forces.
For further information on banks in Finland, please see
http://www.fkl.fi

The Finnish banking system is dominated by three major groups of deposit
banks: Nordea as well as OKO Bank (the Cooperative Bank Group), and the
Sampo Group. Sampo Group was sold to Danske Bank A/S in the Fall of 2006
making Danske Bank the largest of the branches of foreign banks
operating in Finland. Operating since 1982, Citibank International plc
was the first foreign branch in Finland.

## Foreign-Exchange Controls [**Return to top**](#ch7)

All Finnish foreign exchange controls have been abolished.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

All principal Finnish banks have extensive correspondent relationships
with U.S. banks, maintaining relationships with banks in every state as
well as with all of the larger financial center banks. Further
information on correspondent relationships can be obtained from the
Federation of Finnish Financial Services, Bulevardi 28, FIN-00120
Helsinki; Tel: +358 20 7934 200, fax: +358 207934202 (web site:
[www.fkl.fi](http://www.fkl.fi/asp/system/empty.asp?P=2298&VID=default&SID=981783221226211&S=0&C=27023)).

## Project Financing [**Return to top**](#ch7)

The Finnish financial market is typical of European countries where
banks and financing institutions have a dominant role. A project finance
package usually includes financing from a variety of sources, different
types of collateral arrangements, guarantees, escrow accounts, project
sponsor commitments, etc. Development banks, such as the European Bank
for Reconstruction and Development (EBRD) and the International Finance
Corporation (IFC) often play an important role in co-financing
large-scale projects.

Major Finnish government and other programs are detailed below.

**Finnfund** - The Finnish Fund for Industrial Cooperation: Similar to
the U.S. government-sponsored OPIC, Finnfund promotes investments in
developing countries. Apart from co-investing with Finnish companies it
finances ventures that use Finnish technology, cooperate with Finnish
partners on a long-term basis or generate major environmental or social
benefits. Finnfund acts as an agent in Finland for EU programs for the
financing of investment in emerging continents. Finnfund provides equity
capital as well as long-term investment loans and also participates in
guarantee arrangements. In addition to financing, the corporation offers
a broad range of fund-management and advisory services. Finnfund is
owned by the State of Finland, Finnvera, and Confederation of Finnish
Industries.

**NIB** - Nordic Investment Bank: The Nordic Investment Bank (NIB) is a
multilateral financial institution headquartered in Helsinki. NIB
promotes sustainable growth of its eight member countries (Finland,
Sweden, Norway, Denmark, Iceland, Estonia, Latvia, and Lithuania) by
providing long-term complementary financing, based on sound banking
principles, to projects that strengthen competitiveness and enhance the
environment. Loans and guarantees are given to investments that assure
energy supply, improve infrastructure or support research and
development. NIB finances investment projects and project exports, both
in and outside the member countries. High priority is given to
investments furthering economic cooperation between the member
countries.

**Finnvera plc** - A specialized financing company owned by the State of
Finland, Finnvera plc provides services to supplement the Finnish
financial market. Finnvera's task is to promote the development of
enterprise, regions and the exports of Finnish companies. Finnvera
carries out this task by improving the range and versatility of
financing options available to enterprises through loans, guarantees,
capital investments and export credit guarantees. Finnvera grants loans
to enterprises and entrepreneurs, and issues guarantees and export
credit guarantees to enterprises and financiers.

Through its special loans and guarantees, Finnvera also acts as an
intermediary between the European Union\'s financing programs and
Finnish SMEs.

Finnvera acts as Finland's official Export Credit Agency (ECA),
providing export guarantees and insurance.

**Finnish Export Credit Ltd** (FEC) - FEC is an internationally notified
official Export Credit Agency and a wholly owned subsidiary of Finnvera
plc. FEC administers on behalf of the Finnish Government the interest
equalization scheme for officially supported export credits and domestic
ship financing at CIRRs (Commercial Interest Reference Rate) in
accordance with the OECD Arrangement. FEC also provides export credits
when a withholding tax benefit can be achieved.

**SITRA and TEKES**: SITRA (the Finnish National Fund for Research and
Development) and TEKES (the Technology Development Center) are
independent public financing institutions with the purpose of
strengthening the role of research in economic life and promoting new
products. The aim is to introduce internationally competitive
high-technology products and production methods. Traditionally, Sitra
has made venture-capital investments mainly in Finnish start-ups in the
medical and technology sectors. However, since 2006, Sitra will focus
and make its new venture-capital investments in selected program areas.
The venture-capital investments by these programs are carried out in
co-operation with the investment directors of the program and Sitra
Ventures. The aim of the market-based investments is to create and
develop competitive and profitable businesses.

TEKES funds industrial projects as well as project in research
organizations, and especially promotes innovative, risk-intensive
projects. Tekes offers partners from abroad a gateway to the key
technology players in Finland. Activities should diversify production
structures, increase production and exports, and create a foundation for
employment and well-being.

**Ministry of Trade and Industry:** The ministry and its regional
Employment and Economic Development centers (T&E Centers) offer
subsidies for investment in the form of regional investment aid, aid for
small businesses or development aid for small and medium-size
enterprises (SMEs). Special investment and start-up aid is available for
small companies in the whole country, especially in rural areas and
structural adjustment areas. SMEs can obtain special development aid for
improving their competitiveness in the long run or operations increasing
internationalization. Please see http://www.te-keskus.fi

## Web Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: <http://www.tda.gov/>

SBA\'s Office of International Trade: <http://www.sba.gov/oit/>

USDA Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

Federation of Finnish Financial Services:
[http://www.fkl.fi](http://www.fkl.fi/asp/system/empty.asp?P=2298&VID=default&SID=981783221226211&S=0&C=27023)

The European Bank for Reconstruction and Development (EBRD):
http://www.ebrd.com

The International Finance Corporation (IFC): http://www.ifc.org

Finnfund: [http://www.finnfund.fi](http://www.finnfund.fi/)

Nordic Investment Bank: [http://www.nib.](http://www.nib./)int

Finnvera plc: [http://www.finnvera.fi](http://www.finnvera.fi/)

Finnish Export Credit Ltd: [http://www.fec.fi](http://www.fec.fi/)

Finnish National Fund for Research and Development:
[http://www.sitra.fi](http://www.sitra.fi/)

Technology Development Center:
[http://www.tekes.fi](http://www.tekes.fi/)

Ministry of Trade and Industry: [http://www.ktm.fi](http://www.ktm.fi/)

T&T Centers: http://www.te-keskus.fi

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-4)

## Business Customs [**Return to top**](#ch8)

Finland is a modern, commercially mature country that enjoys close
relations with its Nordic neighbors. Social and business protocol is
similar to that in the United States. It is worth noting that
relationships are important within the social and business world, as
Finns prefer to deal with people they know and trust.

## Travel Advisory [**Return to top**](#ch8)

U.S. Department of State Consular Information Sheet -- Finland:

<http://travel.state.gov/travel/cis_pa_tw/cis/cis_1115.html>

## Visa Requirements [**Return to top**](#ch8)

With the exception of Nordic (Sweden, Norway, Denmark, Iceland)
citizens, citizens of EU countries (except Greece), and citizens of
Switzerland, San Marino and Liechtenstein, foreigners entering Finland
must have a valid passport. A tourist or business visa is not required
for stays of up to three months. For non-EU citizens a visa is needed
for stays exceeding 90 days. Visa applications should be submitted to a
Finnish diplomatic mission before entry into Finland.

A foreigner needs a residence permit in order to stay in Finland for a
longer period of time. However, residence permits are also needed for
short stays of less than three months if the purpose of the stay is to
work in Finland. Residence permits require either a valid passport or a
travel document. Foreigners must have work permits if they intend to
work in Finland. Exceptions are citizens of the Nordic countries or
citizens of EU/EEA countries. EU-citizens outside the Nordic countries
need to apply for an EEA-card from the local police for stays exceeding
90 days. An EEA-card is a combined work and residence permit.

U.S. Companies that require travel of foreign businesspersons to the
United States should be advised that security options are handled via an
interagency process. Visa applicants should go to the following links.

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov: <http://www.unitedstatesvisas.gov/>

U.S. Embassy Helsinki, Finland Consular Section website:
[http://www.usembassy.fi/consular.htm](http://www.usembassy.fi/consular.htm )

## Telecommunications [**Return to top**](#ch8)

Finland's telecommunications environment is one of the most advanced in
Europe. According to Statistics Finland, in 2005, 100 percent of
households had at least one mobile phone. Finland has also one of the
highest numbers of computers per capita worldwide connected to the
Internet and is the world\'s leading country in electronic banking. Also
high-speed Internet connections are available at all business hotels.

Voice communication services have largely moved to mobile networks in
Finland. Today, data services are also increasingly changing over from
dial-up connections offered in the fixed telephone network to broadband
connections. At the same time the number of fixed telephone network
subscriptions is diminishing. For information on telecommunications in
Finland, please visit
[www.expat-finland.com/telecommunications_and_media/index.html](http://www.expat-finland.com/telecommunications_and_media/index.html)

## Transportation [**Return to top**](#ch8)

Finland has a well-developed infrastructure. Finland's transportation
system is based on an efficient rail and road network, supported by a
wide network of freight forwarders and trucking companies. Finland\'s
domestic distribution system for goods and services is efficient. The
well-functioning transportation system and the fact that Finland\'s rail
gauge is the same as Russia\'s make the country a good transshipment
point for Russian trade. Among other projects, Finland is developing the
\"gateway\" concept further by maintaining and extending a highway in
southern Finland that would reach the Russian border at the southern
Vaalimaa border crossing point. The E18 road, from Kristiansand, Norway,
through Sweden and Finland, to St. Petersburg, Russia, is part of the
European Union Trans European Road Network system, connecting EU-member
Nordic capitals with efficient roads. The E18 highway project is
estimated to be ready in 2015 according to the Finnish Road
Administration (Tiehallinto).

Finland has over 50 merchant shipping ports, of which more than 10 are
located on inland waterways connected to the Baltic Sea by the Saimaa
Canal. Twenty-three seaports are open year round. Finnish ports, 15 of
which deal with transit traffic through Finland, can handle a wide range
of cargo. The 10 biggest ports handle more than 75 percent of all
sea-borne cargo traffic. The ports near the Russian border (Hamina,
Kotka and Mustola) concentrate on forestry goods, bulk cargo and free
zone activities. Ports are secure and automated; loading and unloading
operations are consistently quick and

trouble-free.

## Language [**Return to top**](#ch8)

The two official languages in Finland are Finnish and Swedish. In 2007,
91.5 percent of the population spoke Finnish and 5.5 percent Swedish as
their native language. Both languages are compulsory at school. English
is widely spoken in Finland, especially among younger people and in
major cities.

## Health [**Return to top**](#ch8)

Medical facilities are widely available. The public hospital system will
not honor foreign credit cards and/or U.S. insurance coverage. However,
private hospitals and clinics that accept major credit cards are widely
available. Travelers have found that, in some cases, a letter from their
carrier describing supplemental medical insurance with specific overseas
coverage has proved useful.

A foreigner is usually covered by the Finnish social security after
moving to Finland, with health care as one of the benefits. Services are
provided within each municipality. The quality of public health care is
equivalent to care given by private doctors. In addition, the employers
subsidize occupational health care.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

The standard time zone in Finland is EET (Eastern European Time), which
is UTC

(Coordinated Universal Time) + 2 hours.

Business hours in Finland are generally 08.00 AM to 04.00 PM. The
average Finnish workweek is 40 hours per week, with annual leave of 25
days, 12.5 free days, and 9 paid holidays. Part-time employment averages
to 17.8 hours per week.

The national holidays in 2008 are:

New Year's Day (January 1)

Epiphany (January 6)

Good Friday (March 21)

Easter Monday (March 24)

May Day and Ascension Day (May 1)

Mid-Summer (June 21)

All Saints' Day (November 1)

Independence Day (December 6)

Christmas (December 25-26)

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

Please see Chapter 5: Trade Regulations and Standards -- Temporary entry

## Web Resources [**Return to top**](#ch8)

U.S. Department of State Consular Information Sheet -- Finland:

<http://travel.state.gov/travel/cis_pa_tw/cis/cis_1115.html>

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov: <http://www.unitedstatesvisas.gov/>

U.S. Embassy Helsinki, Finland Consular Section website:
[http://www.usembassy.fi/consular.htm](http://www.usembassy.fi/consular.htm )

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 9: Contacts, Market Research, and Trade Events 

-   [Contacts](#contacts-return-to-top-1)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

######### U.S. Embassy Trade Personnel

Commercial Service of the United States

Embassy of the United States of America

Itainen Puistotie 14 B

FIN-00140 Helsinki, Finland

or

PSC 78, Box H

APO AE 09723

Tel: (358-9) 616 250

Fax: (358-9) 6162 5130

E-mail: <Helsinki.Office.Box@mail.doc.gov>

Mr. Brian McCleary, Regional Senior Commercial Officer (Finland, Norway,
and Estonia)

Mrs. Tarja Kunnas, Senior Commercial Specialist

Ms. Merja Poikolainen, Commercial Specialist

Mrs. Mia Maki, Commercial Specialist

Economic Section

Itainen Puistotie 14 B

FIN-00140 Helsinki, Finland

Tel: (358-9) 616 250

Fax: (358-9) 6162 5766

Mrs. Jane Messenger, Economic Section Chief

Mr. Glenn Lewis, Economic Officer

Ms. Riikka Aho, Economic Assistant

Defense Attache Office

Itainen Puistotie 14 B

FIN-00140 Helsinki, Finland

Tel: (358-9) 616 250

Fax: (358-9) 6162 5808

Colonel Joy Shasteen, Defense & Air Attaché/Chief, Security Assistance
Office

Mark Bergeson, Army Attaché/SAO Officer

Gary Bruce, Naval Attaché/SAO Officer

Foreign Agricultural Service

Dag Hammarskjölds Väg 31

S-115 89 Stockholm, Sweden

Tel: (46-8) 783 5392/5470

Fax: (46-8) 662 8495

Email:agstockholm@fas.usda.gov

Mr. Steve Huete, Agricultural Counselor (for the Netherlands, Belgium,
Luxemburg, Denmark, Iceland, Sweden, Finland and Norway), resides in The
Hague.

Ms. Åsa Lexmon, Agricultural Specialist

Ms. Bettina Dahlbacka, Agricultural Specialist

######### **Chambers of Commerce**

American Chamber of Commerce in Finland

<http://www.amcham.fi/>

Central Chamber of Commerce

[www.keskuskauppakamari.fi](http://www.keskuskauppakamari.fi/)

International Chamber of Commerce (ICC)

[www.iccfin.fi](http://www.iccfin.fi/)

Helsinki Chamber of Commerce

[www.helsinki.chamber.fi](http://www.helsinki.chamber.fi/)

Finnish-American Chamber of Commerce\*

<http://www.facc-ny.com/>

\*Not affiliated with the American Chamber of Commerce

World Trade Center Helsinki

[www.wtc.fi](http://www.wtc.fi/)

######### **Country Trade Associations**

Federation of Finnish Commerce and Trade

[www.kaupankl.fi](http://www.kaupankl.fi/)

Finnish Foreign Trade Agents' Federation

[www.agenttiliitto.fi](http://www.agenttiliitto.fi/)

Finnish Direct Marketing Association

[http://www.ssml.fi](http://www.ssml.fi/)

Confederation of Finnish Industries (EK)

[www.ek.fi](http://www.ek.fi/ek_englanti/index.php)

Technology Industries of Finland

<http://www.teknologiateollisuus.fi/>

Finnish Forest Industries' Federation

[www.forestindustries.fi](http://www.forestindustries.fi/)

Finpro

[www.finpro.fi](http://www.finpro.fi/)

Invest in Finland Bureau

[www.investinfinland.fi](http://www.investinfinland.fi/)

######### **Country Government Offices**

Ministry of Agriculture and Forestry

[www.mmm.fi](http://www.mmm.fi/)

Employment and Economic Development Center

[www.te-keskus.fi](http://www.te-keskus.fi/)

National Food Agency

[www.evira.fi](http://www.evira.fi/portal/en/)

The National Board of Customs

[www.tulli.fi](http://www.tulli.fi/)

Statistics Finland

[www.stat.fi](http://www.stat.fi/)

Office of Data Protection Ombudsman

Ministry of Justice

[www.tietosuoja.fi](http://www.tietosuoja.fi/)

Finnish Standardization Association (SFS)

[www.sfs.fi](http://www.sfs.fi/)

Finnish Electrotechnical Standard Association (SESKO)

[www.sesko.fi](http://www.sesko.fi/)

National Board of Patents and Registration of Finland

[www.prh.fi/](http://www.prh.fi/en.html)

National Consumer Administration

[www.kuluttajavirasto.fi](http://www.kuluttajavirasto.fi/)

**Country Market Research Firms**

Research International Finland Oy

[www.research-int.fi](http://www.research-int.fi/)

A.C. Nielsen Finland Oy

[www.acnielsen.fi](http://www.acnielsen.fi/)

MTT Economic Research

[www.mtt.fi/mttl/](http://www.mtt.fi/mttl/)

TNS Radar Research Consulting Oy

[www.tns-radar.fi](http://www.tns-radar.fi/)

######### **Country Commercial Banks**

Nordea Bank Finland

[www.nordea.com](http://www.nordea.com/) or
[www.nordea.fi](http://www.nordea.fi/)

Osuuspankkien Keskuspankki Oyj (OKO Bank)

[www.oko.fi](https://www.oko.fi/eng?kielikoodi=en)

Sampo Pankki Oyj (Sampo Bank Plc.)

[www.sampopankki.com](http://www.sampo.com/)

Citibank International Plc - Finland Branch

[www.citibank.com](http://www.citibank.com/)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service
please go to the following website:
[http://www.export.gov/marketresearch.html](http://www.export.gov/marketresearch.html )
and click on Country and Industry Market Reports.

Please note that these reports are only available to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Please click on the link below for information on upcoming trade events.

<http://www.export.gov/tradeevents.html>

<http://www.buyusa.gov/finland/en/europetradeshows.html>

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research

-   Promote your products and services to qualified buyers

-   Meet the best distributors and agents for your products and services

-   Overcome potential challenges or trade barriers

For more information on the services the U.S. Commercial Service offers
U.S. businesses, please click on the link below.

<http://www.buyusa.gov/finland/en/american_companies.html>

[Return to table of
contents](#doing-business-in-finland-2008-country-commercial-guide-for-u.s.-companies)

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.