WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.7 
23 December 2009 
 
 (09-6550) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Estonia . 
 
_______________ 
 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.7 
Page 2  
 
  ESTONIA 
 
TABLE OF CONTENTS 
Page 
 
I. AID FOR RESEARCH AND DEVELOPMENT...................................................................3  
A. R&D  FINANCING PROGRAMME ..................................................................................................3  
B. COMPETENCE CENTRES PROGRAMME ........................................................................................4  
II. OTHER HORIZONTAL AID .................................................................................................5  
A. SUPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS .................................5  
B. SUPPORT IN THE FRAMEWORK OF EXPORT PLANNING AND EXPORT MARKETING 
PROGRAMMES ..............................................................................................................................6  
C. TRAINING PROGRAMMES FOR COMPANIES .................................................................................7  
D. GUARANTEE SCHEME FOR SMALL AND MEDIUM -SIZED ENTERPRISES ......................................9  
E. CONSULTING PROGRAMME .......................................................................................................11  
F. START -UP PROGRAMME ...........................................................................................................11  
G. TRAINING PROGRAMME FOR BUSINESS INCUBATORS ..............................................................12  
H. EMPLOYMENT AID....................................................................................................................13  
III. REGIONAL AID ................................................................................................................... .15 
A. BUSINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME .......................................................15  
B. PROGRAMME OF TOURISM .........................................................................................................16  
C. PROGRAMME OF INVESTMENT SUPPORT (FOR DEVELOPMENT AND DIVERSIFICATION 
OF ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS & FOR RENOVATION AND 
DEVELOPMENT OF VILLAGES ) ..................................................................................................17  
D. INVESTMENT SUPPORT FOR SCIENCE AND TECHNOLOGY PARKS ...............................................18  
IV. ENVIRONMENTAL AID......................................................................................................19  
A. SUBSTITUTION OF THE POLLUTION CHARGE ............................................................................19  
B. ENVIRONMENTAL PROGRAMME ...............................................................................................20  
C. EXCISE DUTY EXEMPTION FOR BIOFUEL ..................................................................................22  
V. DOMESTIC SUPPORT IN AGRICULTURE.....................................................................23  
A. GENERAL SERVICES ...................................................................................................................23  
B. PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES ........................................................25  
C. DOMESTIC FOOD .......................................................................................................................26  
D. DIRECT PAYMENTS TO PRODUCERS ..........................................................................................27  
E. PAYMENT FOR RELIEF FROM NATURAL DISASTERS .................................................................28  
F. STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS...............28  
G. PAYMENT UNDER ENVIRONMENTAL PROGRAMMES .................................................................30  
H. PAYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES .......................................................31  
I. INSURANCE SUPPORT .................................................................................................................32  
J. FUEL TAX EXEMPTION ...............................................................................................................33  
  G/SCM/N/186/EEC/Add.7 
 Page 3 
 
 
  I. AID FOR RESEARCH AND DEVELOPMENT 
A. R&D  FINANCING PROGRAMME  
1. Period covered by the notification  
  2007, 2008. 
 
2. Policy objective and/or purpose of the subsidy
 
  The programme aims at increasing the competitiveness of companies through the support of R&D projects leading to new technologies, products, processes and services. 
 
 The programme of Tallinn City Enterprise De partment aims at helping to implement 
innovative solutions in business situating in Tallinn a nd to assist the protection of innovative solutions 
by gaining industrial property protection in foreign countries.  
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation), which is an implementing agency for the Ministry of Economic Affairs and Communication.   For City of Tallinn – City Enterprise Department. 
 
4. Legislation under which subsidy is granted
 
  2004 2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communicati ons No. 51 of 9 May 2005;  Regulation of the 
Minister of Economic Affairs and Co mmunications No. 40 of 15 May 2008. 
  Regulation of Tallinn City Council No. 23 of 20 April 2006.  5. Form of the subsidy
 
 
 Grant. 
 6. To whom and how the subsidy is provided
 
  The subsidies are provided to SMEs, large companies and R&D institutions, which undertake 
industrial research, pre competitive development activity projects, and feasibility studies.  Aid is also 
granted to SMEs for the costs as sociated with obtaining and valida ting patents and other industrial 
property rights.   Generally the industrial research projects can be supported up to 60 per cent of eligible costs, 
which may increase up to 75 per cent in special  cases (SMEs, cross-border cooperation, wide 
dissemination of the results etc.). 
  In case of industrial research carried out by public R&D ins titutions, public support can go up 
to 75 per cent of the project costs.  
 Pre competitive development activity projects can in general be supported up to 35 per cent, 
which may reach up to 50 per cent in certain cases.  G/SCM/N/186/EEC/Add.7 
Page 4  
 
   Technical feasibility studies preparatory to industrial research activities can be supported up 
to 75 per cent and technical feasibility studies prep aratory to pre competitive development activities 
up to 50 per cent of the studies' costs.   Costs for industrial property rights can be supported up to 50 per cent. 
 
 Maximum amount of support in case feasibility studies is EEK 0.3 Mio, in case of industrial research project EEK 30.0 Mio.   For business in Tallinn:  eligible applicants are companies, self employed entrepreneurs, 
natural persons.  The maximum support amount is EEK  100,000 and may cover up to 2/3 of the total 
project cost.  Support can be applied for only to co ver the justified expenses of a specific project, 
i.e. to cover the costs (fees and drafting costs) of national and international pr oceedings related to the 
international patent applications.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 22.0 Mio.  Fiscal year 2008 – EEK 26.7 Mio.  
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  The programme is valid until 30 June 2015.  No time-limits are attached to the Ta llinn City Enterprise Department programme. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  B. C
OMPETENCE CENTRES PROGRAMME  
1. Period covered by the notification  
 
 2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To improve the competitiveness of enterprises through strategic cooperation between science 
and industry sectors.  To achieve this aim suppor t is given to the establishment of small R&D 
consortiums – the competence centres.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation) 
 4. Legislation under which subsidy is granted
 
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of 
the Minister of Economic Affairs and Communications No. 97 of 25 August 2005. 
  G/SCM/N/186/EEC/Add.7 
 Page 5 
 
 
  5. Form of the subsidy  
  Grant.  6. To whom and how the subsidy is provided
 
 
 Support is given to competence centres, which carry out fundamental, industrial research or pre competitive development activities.   Competence centres are small R&D institutions  established and operate d together by number 
of companies and universities.  Main characteris tic of such centres is strong focus on industrial 
research, which is needed for the product de velopment of the founders of these centres. 
  Fundamental research projects ca n be supported up to 100 per cent. 
 
 Industrial research projects can be supported up to 70 per cent of eligible costs, which may 
increase up to 75 per cent in special cases (SMEs, cr oss border cooperation, wide dissemination of the 
results etc).   Pre-competitive development activity projects ca n in general be supported up to 45 per cent, 
which may reach up to 50 per cent in special cases. 
 
 Technical feasibility studies preparatory to i ndustrial research can be  supported up to 75 per 
cent and technical feasibility studies preparatory to pre competitive development activities up to 50 per cent of the studies' costs.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 18.7 Mio.  Fiscal year 2008 – EEK 24.7 Mio.  
8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid until 31 August 2015.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A  
II. OTHER HORIZONTAL AID 
A. S
UPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS 
1. Period covered by the notification  
 
 2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To organize and support the participation of entrepreneurs in international trade fairs. 
 G/SCM/N/186/EEC/Add.7 
Page 6  
 
  3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  For City of Tallinn – City Enterprise Department  
4. Legislation under which subsidy is granted
 
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communications No. 67 of 24 July 2008. 
 
 Regulation of Tallinn City Council No. 50 of 13 December 2007. 
 5. Form of the subsidy
 
  Grant. 
 
6. To whom and how the subsidy is provided
 
  Subsidy is paid to the fair operator/fair or ganiser or participating company as a payment for 
stand rental and other similar expenses.  The s ubsidy cannot cover more than 50 per cent of the 
expenses. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 4.9 Mio. 
 Fiscal year 2008 – EEK 0.7 Mio. 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  The programme is valid until 31 December 2013.  No time-limits are attached to the Ta llinn City Enterprise Department programme. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
B. 
SUPPORT IN THE FRAMEWORK OF EXPORT PLANNING AND EXPORT MARKETING PROGRAMMES  
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To support the drafting of companies' l ong term export plans and financing their 
implementation.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation)   G/SCM/N/186/EEC/Add.7 
 Page 7 
 
 
  4. Legislation under which subsidy is granted  
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  the Regulation of the Minister of Economic Affairs and Co mmunications No. 114 of 26 September 2005¸ the 
Regulation of the Minister of Economic Affairs and Communications No. 11 of 5 February 2008. 
 
5. Form of the subsidy
 
  Grant.  
6. To whom and how the subsidy is provided
 
  The programme enables companies to expand th eir export activities offering them appropriate 
training, consultation services and funding.  
 The execution of different marketing activities (par ticipation at trade shows, visits to foreign 
markets, consultation services, promotional materials, participation in the contact events, etc.) will be 
supported by Enterprise Estonia in the amount of up to EEK 1,000,000.   The export marketing grant can be applied fo r the marketing costs (compliance with the 
requirements of the export market, making the produc t samples and advertisi ng material, development 
of the product brands and registration in the targ et country), market research, visiting the target 
markets and organizing the marketing events.  Th e minimum amount of the grant is 150,000 and the 
maximum is EEK 2,500,000 per project.   The self financing rate for both stages is 50 per cent of the eligible expenses. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 6.1 Mio.  Fiscal year 2008 – EEK 4.0 Mio. 
 
8. Duration of a subsidy and/or any other time limits attached to it. 
  The programme is valid until 31 December 2013.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  C. T
RAINING PROGRAMMES FOR COMPANIES  
1. Period covered by the notification  
 
 2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 The aim of the training support is to promote the in service training and retraining of 
entrepreneurs and the persons working in the companies for maintaining or increasing the 
competitiveness of employees at the labour market, developing entrepreneurship, establishing the G/SCM/N/186/EEC/Add.7 
Page 8  
 
  conditions for the creation of new jobs and increasing the capability of persons in the field of research 
and development activities and development of technology. 
 3. Background and authority for the subsidy
 
 
 For City of Tallinn – City Enterprise Department. 
  Enterprise Estonia (Foundation), Estonian La bour Market Board, Estonian Agricultural 
Registers and Information Board.  
4. Legislation under which subsidy is granted
 
  Regulation of Tallinn City Council No. 26 of 18 April 2002;  Regulation of Tallinn City 
Council No. 64 of 22 December 2005;  Regu lation of Tallinn City Council No. 49 of 
9 December 2004. 
 
 2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communicati ons No. 80 of 22 September 2006;  Regulation of 
the Minister of Economic Affairs and Communicati ons No. 83 of 22 September 2006;  Regulation of 
the Minister of Social Affairs No. 35 of 4 April 20 06;  Regulation of the Minister of Social Affairs 
No. 100 of 16 September 2005. 
 
 Fisheries Market Organisation Act;  Regulation of the Minister of Agriculture No. 70 of 9 June 2006.  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  The subsidy is provided to companies and sole proprietors.  The subsidy is also provided to 
the associations of entrepreneurs and trade associ ations.  No support shall be provided for training 
intended to raise the general level of education.  The subsidy can cover up to 70 per cent of eligible 
costs of SMEs and up to 50 per cent of large enterprises.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 16.7 Mio.  Fiscal year 2008 – EEK 12.1 Mio.  8. Duration of a subsidy and/or a ny other time-limits attached to it
 
 
 No time-limits are attached to the Tallinn City Enterprise Department programme.  The 
programmes of Enterprise Estonia, Estonian La bour Market Board and Estonian Agricultural 
Registers and Information Board are valid until 31 December 2013.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A   G/SCM/N/186/EEC/Add.7 
 Page 9 
 
 
  D. GUARANTEE SCHEME FOR SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Period covered by the notification  
  2007, 2008.  
2. Policy objective and/or purpose of the subsidy
 
  To promote small and medium-sized enterprises by supporting their access to capital by securing their bank loan.  
3. Background and authority for the subsidy
 
  Credit and Export Guarantee Foundation – KredEx  Rural Development Foundation  
4. Legislation under which subsidy is granted
 
  The Articles of Association of Credit and Export Guarantee Foundation (KredEx);  Support of Enterprise and State Loan Guarantees Act;  Regul ation of the Minister of Economic Affairs and 
Communications No. 74 of 3 August 2006.  
 Rural Development and Agricultural Market Re gulation Act;  Procedure for Applying for a 
Guarantee and for Proceeding the Application (a pproved by the 12.12.07 Decision of Supervisory 
Board of Rural Development Foundation).  5. Form of the subsidy
 
 
 Loan and leasing guarantees, equity loans.  6. To whom and how the subsidy is provided
 
  KredEx's business loan guarantees are meant for companies whose value of the collateral 
property or self financing is not sufficient for getti ng a bank loan or who do not have a long history of 
operation.  Loan guarantees are provided to SMEs, i.e. to companies with less than 250 employees 
and turnover less than EEK 625 milli on, and to sole proprietors. 
  Investment loan guarantee serves to cover long term investments:  purchase of equipment;  
purchase, construction or renovati on of production premises.  The maximum possible guarantee 
amount is EEK 15 million.  Working capital loan gua rantee enables to secure the operations of newly 
launched companies as well as the existing small and me dium sized companies.  The loan guarantee is 
intended for short term financing of working capital:  purchase of inventories;  launch of large scale 
marketing campaigns;  covering other scheduled or  unscheduled current expenses.  The maximum 
possible guarantee amount is EEK 8 million. 
 
 Kredex secures loans up to 75 per cent of the loan amount.  The annual guarantee fee minimum is 1.8 per cent of the balance of the guara ntee.  The exact rate of the guarantee fee depends 
on the risk level of the project.  In addition, the tr ansaction involves an agreement fee in the amount of 
1 per cent of the guarantee, payable upon th e conclusion of the guarantee agreement. 
 
 Leasing guarantee is basically a property redemption guarantee (mainly used for the lease of machinery and equipment).  KredEx guarantees up to  40 per cent of the unpaid redemption price of 
the leased property (i.e. the amount unpaid to the leasing company, w/o VAT and interest);  the G/SCM/N/186/EEC/Add.7 
Page 10  
 
  guarantee amount is reduced proporti onally with the reduction of the redemption price of the leased 
property.  The maximum possible guarantee amount is EEK 15 million.  The annual guarantee fee 
minimum is 1.2 per cent of the balance of the guara ntee.  The exact rate of the guarantee fee depends 
on the risk level of the project.  In addition, the tr ansaction involves an agreement fee in the amount of 
1 per cent of the guarantee, payable upon th e conclusion of the guarantee agreement. 
 
 The equity loan is a loan product intended fo r successful and quickly developing companies, 
which have already gained some tr ack record in their field of busi ness, and need additional capital for 
expanding their business but do not meet the criter ia established for receiving a bank loan in the 
desired amount.  KredEx will grant the entrep reneur the use of capital without demanding any 
collateral.  Since the equity loan is not, as a rule, repayable until the end of the loan period, the equity 
loan will, in the bank's eyes, conditionally raise th e company's equity, allowing the company to apply 
for an additional bank loan and finance its quick gr owth.  In addition to being able to apply for 
otherwise unavailable financing, the company can also benefit from the fact that, unlike various 
venture capital funds, KredEx will not intervene in th e management of the loan recipient.  The loan 
amount is EEK 1 16 million, and minimum equity EEK 1 million;  the share of equity in the balance 
sheet must amount to at least 10 per cent;  the loan pr incipal shall, as a rule, be repaid in lump sum at 
the end of the loan period, or in equal instalments at least two times a year, starting from the end of the grace period;  the contract fee amounts to 1 per cent of the loan amount, but not more than 
EEK 100,000;  interest shall, as a rule, be paid on a m onthly basis;  the interest rate has been fixed for 
the entire term of the loan, and ranges, as a rule, from annual 18 per cent to 22 per cent of the loan 
balance. 
  Rural Development Foundation issues a guarantee for the debt obligation of an entrepreneur 
(loan, leasing, etc).  A guarantee can be received by a SME.  The entrepreneur shall not have tax 
arrears or any financial difficulties and is able to perform the obligations arising from the loan 
agreement. 
  The extent of the guarantee necessary for a par ticular loan is decided by the bank which also 
submits a corresponding application to the Rural Development Foundation.  The guarantee does not 
release the entrepreneur from proprietary liability th e entrepreneur holds primary liability for the loan 
obligation which must be also secured with one's ow n property or a personal surety must be provided 
to the bank.  If for any reasons the business of the entrepreneur fails and the pledged property of the 
borrower is not sufficient for deleting the loan r esidue, the Rural Development Foundation will pay 
the bank the agreed amount of the guarantee.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – guarantee amount EEK 324.5 Mio.  Fiscal year 2008 – guarantee amount EEK 184.1 Mio.  8. Duration of a subsidy and/or a ny other time-limits attached to it
 
 
 No time-limits are attached to the programme.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
  G/SCM/N/186/EEC/Add.7 
 Page 11 
 
 
  E. CONSULTING PROGRAMME  
1. Period covered by the notification  
  2007, 2008.  
2. Policy objective and/or purpose of the subsidy
 
  To enable SMEs and sole proprietors to  purchase business consultations from professional 
consultants at affordable rates on favourable conditions. 
 
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 2004-2006 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and 
Communications No. 74 of 13 April 2004.  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  The subsidy is provided to SMEs or sole propr ietors.  The amount of the support per applicant 
is up to EEK 200,000 per year and may cover up to  50 per cent of the advisory services costs. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 1.2 Mio. 
 Fiscal year 2008 – EEK 1.6 Mio. 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  The programme is valid until 31 December 2008. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  F. S
TART -UP PROGRAMME  
1. Period covered by the notification  
  2007; 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To provide individuals with the incentive to st art business and create new jobs.  Likewise, the 
programme intends to increase the survival ratio of new enterprises. G/SCM/N/186/EEC/Add.7 
Page 12  
 
   
3. Background and authority for the subsidy
 
  For City of Tallinn – City Enterprise Department  For other parts of Estonia – Enterprise Estonia (Foundation) 
 
4. Legislation under which subsidy is granted
 
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communications No. 65 of 26 July 2007;  Regulation of the 
Minister of Economic Affairs and Comm unications No. 10 of 28 January 2008. 
  Regulation of Tallinn City Council No 26 of  18 April 2006;  Regulation of Tallinn City 
Council No. 52 of 13 December 2007.  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 An applicant may be an undertaking being f ounded in Estonia or an undertaking that was 
entered into the Commercial Registry no longer than  24 months before the date of registration of the 
application, and has no more than 25 per cent privat e or legal person in public law as shareholder. 
  The grant is up to EEK 200,000 per applicant.  The grant amount will not exceed 75 per cent 
of the eligible costs, self financing is at least 25 per cent. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 7.2 Mio. 
 Fiscal year 2008 – EEK 5.3 Mio. 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  A project must be completed within 12 months. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  G. T
RAINING PROGRAMME FOR BUSINESS INCUBATORS  
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 The aim of the programme is to support the creation and development of innovative 
companies by providing them incubation services.   G/SCM/N/186/EEC/Add.7 
 Page 13 
 
 
  3. Background and authority for the subsidy  
  Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Co mmunication No. 132 of 31 October 2005. 
 5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Support is provided for start ups by the way of incubation services, which include training. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 1.1 Mio. 
  Fiscal year 2008 – EEK 3.5 Mio. 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  The programme is valid until 30 June 2009. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  H. E
MPLOYMENT AID 
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 The aim of the benefits is the integration of unemployed people and people belonging to risk 
groups to the labour market, to increase the efficiency and quality of labour market services;  to stimulate job creation.  3. Background and authority for the subsidy
 
 
 Labour Market Board  Tallinn City Enterprise Department  4. Legislation under which subsidy is granted
 
 
 2004-2006 Structural Assistance Act (eligibility period until 30.06.2009);  2007-2013 Structural Assistance Act (program "Increasing the Supply of a Qualified Labour Force 2007-2013" ratified on the ground of it);  Regulation of th e Minister of Social Affairs No. 100 of G/SCM/N/186/EEC/Add.7 
Page 14  
 
  16 September 2005 (eligibility period until 30.06.2009);  Regulation of th e Minister of Social Affairs 
No. 35 of 4 April 2006 (eligibility period until 30.06.2 009);  Regulation of the Minister of Social 
Affairs No. 69 of 5 November 2008;  Labour  Market Services and Benefits Act. 
  Regulation of Tallinn City Council No. 22 of 20 April 2006. 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Subsidies are provided to employers for recrui tment of disadvantaged and disabled workers, 
to cover additional costs of employment of disable d workers (adapting premises or equipment) and 
for unemployed persons who start the entrepreneurship activity. 
 
 Wage subsidy is a benefit payable to em ployers for employing unemployed persons, who 
within the 12 months preceding registration as unemployed, have been released from prison or unemployed persons who have been registered as unemployed for more than twelve consecutive 
months (for unemployed persons of 16-24 years of ag e, who have been registered as unemployed for 
more than six consecutive months) and have not found work during such time.  The size of the wage 
subsidy is 50 per cent of the wage  or salary of the employee or public servant but not more than the 
minimum monthly wage established by the Government .  The subsidy is paid for six months but not 
for longer than for one year after the date of entry into the contract under public law.   Business start up subsidy is for registered unemployed persons who want to start business 
activities.  The upper limit of the subsidy in 2007 and 2008 was EEK 20,000 (The upper limit for 
business start up subsidy is established by the st ate budget for each budget year.  A new upper limit 
for business start up subsidy must not be lower than the upper limit in force.).  The upper limit of the 
subsidy from the program "Increasing the Suppl y of a Qualified Labour Force 2007-2013" is 
EEK 7,000.  
 Subsidy for the adaptation of premises and e quipment is provided in case of recruitment of 
disabled workers.  After a disabled person commen ces employment or service with an employer, the 
cost of the adjustment is compensated (until 30 .05.2009 by the Labour Market Board, starting from 
01.05.2009 by the Estonian Unemployment Insurance Fund) to the employer by 50 per cent but not in an amount exceeding the upper limit established for support (The upper limit for the support is 
established by the state budget for each financial year.  A new upper limit for support is not lower 
than the upper limit in force.)   Working with a support person is a labour ma rket service provided to disabled unemployed 
persons who, due to their disability,  need help and direction while working.  To offer the service, the 
Labour Market Board Department (starting from 01.05.2009 the Estonian Unemployment Insurance 
Fund) enters into a contract under public law with the support person or the employer who ensures the 
provision of the service of working with a s upport person to a disabled person.  The fee 
(corresponding to the time limits of the service settled down in the Labour Market Services and 
Benefits Act) for the service is paid into the bank account of the support person or employer. 
(The hourly rate for the service of working with  support person shall be established by the state 
budget for every financial year.  A new hourly rate  for the service of working with support person 
must not be lower than the hourly rate in force.)   For entrepreneurs in the City of Tallinn the maximum amount of support is EEK 200 000, 
50 per cent of costs for job creation are covered.  G/SCM/N/186/EEC/Add.7 
 Page 15 
 
 
   
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 7.6 Mio. 
 Fiscal year 2008 – EEK 6.0 Mio. 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits attached to the programme ex cept for the higher limit (EEK 70,000) for the 
business start up subsidy, which is offered under th e programme "Increasing the Supply of a Qualified 
Labour Force 2007-2013".  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 
III. REGIONAL AID 
A. BUSINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME  
1. Period covered by the notification  
 
 2007, 2008. 
 2. Policy objective and/or purpose of the subsidy
 
  To improve the business environment of existing enterprises, by supporting the establishment 
of necessary business infrastructure and industrial real  estate equipped with modern infrastructure. 
 3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  
4. Legislation under which subsidy is granted
 
  2004-2006 Structural Assistance Act;  The Regul ation of the Minister of Economic Affairs 
and Communications No. 72 of 13 April 2004.  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 The subsidy is provided to SMEs which invest ment projects are related to building technical 
infrastructure necessary for th eir business development outside the City of Tallinn. 
  The minimum amount of support is EEK 100,000, the maximum amount is EEK 2.5 million.  Different conditions for SMEs located in the surro unding local governments of the City of Tallinn 
(up to 25 per cent of the eligible costs can be c overed) and for SMEs located in other regions of 
Estonia (up to 50 per cent of the eligible costs can be covered).  G/SCM/N/186/EEC/Add.7 
Page 16  
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 18.7 Mio.  Fiscal year 2008 – EEK 1.5 Mio. 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  Programme closed in December 2006, last payments have been done 2008.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  B. 
PROGRAMME OF TOURISM  
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To diversify the choice of Estonian tourism products and services, improve the quality of such 
products and services, raise international competitiv eness of the products and services, and increase 
demand for Estonian tourism products on the intern ational target markets;  invest in local 
infrastructure (in case of Kihnu island programme)  
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of 
the Minister of Economic Affairs and Communications No. 126 of 7 May 2004;  Decree of the Minister of the Interior No. 123 of 22 November 2006.  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  Any business company that is registered in Estonia and in which the state's or the local 
government's participation does not exceed 25 per cent, can apply for the grant. 
  Minimum amount of a product development grant is EEK 800,000 and maximum amount is 
EEK 10 Mio.  
 Minimum amount of a marketing grant is EEK 75,000 and maximum amount is 
EEK 1.5 Mio .   G/SCM/N/186/EEC/Add.7 
 Page 17 
 
 
   Grant can cover up to 50 per cent of the costs e ligible for assistance, in the Northern regions 
of Estonia (Harjumaa County and the City of Talli nn) the percentage of aid may not exceed 40 per 
cent of the costs eligible for assistance.   In case of Kihnu island programme The appli cants within the programme could be self 
employed persons and entrepreneurs whose activities ar e directed to the achievement of the objectives 
of the programme.  The grant is provided e.g. for investments to the local infrastructure and for the 
development and marketing of tourism products.  The maximum amount of the grant is up to 
2.5 million kroons per project and up to 85 per cent of the eligible costs are compensated.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 7.7 Mio.  Fiscal year 2008 – EEK 4.4 Mio. 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  The tourism programme is valid until 30 J une 2009 (for suppliers until 30 April 2009). 
 The Kihnu island programme is valid until 31 December 2010.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  C. P
ROGRAMME OF INVESTMENT SUPPORT (FOR DEVELOPMENT AND DIVERSIFICATION OF 
ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS & FOR RENOVATION AND 
DEVELOPMENT OF VILLAGES ) 
1. Period covered by the notification  
  2007, 2008.  
2. Policy objective and/or purpose of the subsidy
 
  To create non agricultural jobs and revive th e life in the rural areas through the investment 
support of the diversification of economic activities in these areas.  
3. Background and authority for the subsidy
 
  Agricultural Registers and Information Board  4. Legislation under which subsidy is granted
 
 
 2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of 
the Minister of Agriculture No. 126 of 28 July 2004;  Regulation of the Minister of Agriculture No. 176 of 29 October 2004¸ Regulation of the Mini ster of Agriculture No. 122 of 10 October 2007. 
 5. Form of the subsidy
 
 
 Grant  G/SCM/N/186/EEC/Add.7 
Page 18  
 
  6. To whom and how the subsidy is provided
 
  Subsidy is provided to the companies dive rsifying or expanding activities and to the 
agricultural producers who start non agricultural activ ities in rural areas or other companies active in 
rural areas.  Subsidy is provided for investments in rural areas related to the promotion of tourism and 
handicrafts, provision of services for the economy and inhabitants of rural areas and production of 
non agricultural products etc.   Eligible applicants have to be acting on the ma rket for at least 6 months.  Preference is given 
to those companies who use local raw materials/res ources or offer services.  Up to 50 per cent of the 
eligible costs may be covered. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
 
 Fiscal year 2007 – EEK 3.4 Mio. 
 Fiscal year 2008 – EEK 6.7 Mio.  8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid until 30 April 2009. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
D. 
INVESTMENT SUPPORT FOR SCIENCE AND TECHNOLOGY PARKS  
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 To improve the business environment of tec hnology intensive enterprises, by supporting the 
establishment of necessary infrastructur e in science and technology parks. 
 3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  The Regulation 
of the Minister of Economic Affairs and Communications No. 10 of 1 March 2007. 
 5. Form of the subsidy
 
  Grant 
  G/SCM/N/186/EEC/Add.7 
 Page 19 
 
 
  6. To whom and how the subsidy is provided  
  The subsidy is provided to legal persons in private la w who promote knowledge and 
technology transfer by providing high level infrast ructure and support services and who have at least 
3 year experience in this field. 
 
 The maximum amount for per application is EEK 33.2 million, up to 70 per cent of eligible costs may be covered.  The eligible costs include co sts of preparation of land for building, costs of 
planning and construction of build ings, costs of equipment etc. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 3.7 Mio.  Fiscal year 2008 – EEK 3.1 Mio. 
 
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  The programme was valid until 30th of June 2008.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A  
IV. ENVIRONMENTAL AID 
A. S
UBSTITUTION OF THE POLLUTION CHARGE  
1. Period covered by the notification  
  2007, 2008.  2. Policy objective and/or purpose of the subsidy
 
 
 The programme aims at decreasing polluti on by encouraging voluntary environmental 
protection investments.  3. Background and authority for the subsidy
 
 
 The Ministry of Environment 
 4. Legislation under which subsidy is granted
 
  Environmental Charges Act, Article 48.  
5. Form of the subsidy
 
  Pollution charge substitution with inv estments in environmental protection. 
 G/SCM/N/186/EEC/Add.7 
Page 20  
 
  6. To whom and how the subsidy is provided
 
  According to the Environmental Charges Act co mpanies have to pay a charge for the release 
of pollutants or waste into the environment.  A ccording to Article 48 of the Environmental Charges 
Act, the obligation to pay the pollution char ge can be substituted by investments if: 
 
 - The polluter implements measures, which ensure the reduction of pollutants over the 
course of 3 years by not less than 15 per cent in comparison with the last accounting 
period prior to the implementation of such measures; 
 
 - in case of hazardous waste, the eliminator of such waste implements over the course 
of 3 years measures, which allow the fo rmer hazardous waste to be treated as 
non-hazardous waste; 
  - in case of hazardous waste, which technically cannot be recycled, the eliminator of 
the waste builds a waste disposal site for such waste over the course of 3 years. 
  The extent to which the pollution charge is substituted shall not exceed the cost of the 
environmental protection measures.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – EEK 3.7 Mio.  Fiscal year 2008 – EEK 2.2 Mio.  
8. Duration of a subsidy and/or any other time limits attached to it
 
  Duration of support for applicant is up to 3 years.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 B. E
NVIRONMENTAL PROGRAMME  
1. Period covered by the notification  
 
 2007, 2008. 
 2. Policy objective and/or purpose of the subsidy
 
  To preserve the stability of environment.  
3. Background and authority for the subsidy
 
  Environmental Investment Centre (Foundation)  Ministry of Environment  Rural Development Foundation 
 Agricultural Registers and Information Board 
 Private Forest Centre Foundation   G/SCM/N/186/EEC/Add.7 
 Page 21 
 
 
  4. Legislation under which subsidy is granted  
  2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act;  Regulation of the Minister of Environmental Affairs No. 18 of 22 March 2005;  Regulation of the Minister of 
Environmental Affairs No. 13 of 17 February 2006;  Procedure of Environmental Investment Centre 
for financing environmental projects;  Regulati on of the Minister of Agriculture No. 31 of 
3 March 2006.   Environmental Charges Act, Article 19(5)  
 Programme "Promotion of the Use of Biom ass and Bioenergy" (approved by 13.12.06 
Decision of the Supervisory Board of the Rural Development Foundation)   Forest Act;  Procedure for Applying for Gran t, Proceeding the Application and Arrangement 
for Paying (approved by the Supervisory Board of Pr ivate Forest Centre Foundation;  Regulation of 
the Minister of Environment No. 22 of 14 March 2007. 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Subsidy is provided to applicant's projects, which meet the criteria of the measure "Development of Environmental Infrastructure" (R egulation of the Minister No 18) and national 
environmental programmes. 
 
 According to the Environmental Charges Act co mpanies have to pay a charge for the release 
of pollutants into ambient air.  Article 19 sections  3 and 4 stipulate certain pollution charge rates for 
CO2.  According to Article 19 section 5 allows relief of paying this charge in case of biomass, peat 
and energy use of waste.  
 Rural Development Foundation grants subsidies inter alia  for arrangement of feasibility 
studies for the infrastructure to promot e the use of biomass and bioenergy. 
  Subsidies for promotion of forestry are grante d in accordance with the relevant conditions of 
Agricultural Registers and Information Board and Private Forest Centre Foundation. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 – EEK 38.6 Mio.   Fiscal year 2008 – EEK 77.9 Mio. 
 
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  G/SCM/N/186/EEC/Add.7 
Page 22  
 
  C. E
XCISE DUTY EXEMPTION FOR BIOFUEL  
1. Period covered by the notification  
  2007, 2008.  
2. Policy objective and/or purpose of the subsidy
 
  To enhance the use of environmentally frien dly fuels (bioethanol, biodiesel) in order to 
reduce the emission of greenhouse gases by suppor ting the production and use of biofuels. 
 
3. Background and authority for the subsidy
 
  Ministry of Finance/Taxation and Customs Board.  4. Legislation under which subsidy is granted
 
 
 Alcohol, Tobacco and Fuel Excise Duty Act.  5. Form of the subsidy
 
  Excise duty exemption 
 
6. To whom and how the subsidy is provided
 
  Excise duty exemption is granted to any producer  of biodiesel or bioethanol in Estonia, any 
producer of biodiesel or bioethanol in another EU  Member State (or third country) whose product is 
imported into Estonia and any importer of biodiesel or bioethanol into Estonia.  The excise duty 
exemption takes place when the product is delivered for consumption, i.e. either as pure biofuel or 
blended into fossil fuel.  Both the producing and bl ending of biofuels have to take place in excise 
warehouses.   The pure biodiesel or bioethanol are fully ex empted from excise duty.  If the biodiesel is 
blended into the fossil fuel or bioethanol blende d into fossil petrol the exemption applies to the 
amount of biodiesel or bioethenol respectively in the blended fuel.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
 
 Fiscal year 2007 – EEK 2.6 Mio.  Fiscal year 2008 – EEK 34.4 Mio.  8. Duration of a subsidy and/or a ny other time-limits attached to it
 
 
 No time-limits are attached to it. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
  G/SCM/N/186/EEC/Add.7 
 Page 23 
 
 
  V. DOMESTIC SUPPORT IN AGRICULTURE 
A. GENERAL SERVICES  
1. Period covered by the notification  
  2007, 2008 
 
2. Policy objective and/or purpose of the subsidy
 
  The programme aims at providing services and be nefits to agriculture or the rural community. 
 
3. Background and authority for the subsidy
 
  The Ministry of Agriculture.  4. Legislation under which is granted
: 
 
 - State Budget Act of 2007; 
 - State Budget Act of 2008;  - Rural Development and Agricultural Mark et Regulation Act of 21 April, 2004; 
 - Rural Development and Agricultural Ma rket Regulation Act of 19, June 2008; 
 - Estonian Rural Development Plan 2004-2006 (RDP 2004-2006); 
 - Estonian National Development Plan 2004-2006 (NDP); 
 - Estonian Rural Development Plan 2007-2013 (RDP 2007-2013);  - Development plan 2007-2013 for enhanc ing the use of biomass and bioenergy; 
 - Development plan 2007-2013 Gatheri ng and Storing the Genetic Resources of 
Agricultural Cultures; 
 - National Programme Applied Research a nd Development in Agriculture 2004-2008; 
 - The Estonian Organic Farming Action Plan 2007-2013;  - Development Plan "Estonian Food";  - Information provision and promotion measures for agricultural products on the 
internal market and in third countries:  Information and promotion programme of 
honey and beekeeping products. 
 
5. Form of the subsidy
 
  Grants  
6. To whom and how the subsidy is provided
 
  Support for research is provided to the various institutions for development of agricultural 
policies, applied research for plant and livestock pr oduction, research related to breeding, incl. support 
for the breeding of farm animals.  G/SCM/N/186/EEC/Add.7 
Page 24  
 
   The support for pest and disease control is pr ovided to institutions fo r developing pest and 
disease control measures.   (i) The support for training includes practical training support, technical aid (seminars) 
from NDP and from RDP 2004-2006 and RDP 2007-2013.  Practical training support 
is provided to agricultural producers for partial compensation of the expenses 
incurred with the supervision and organisati on of practical training in the enterprise 
for studying agricultural specialities. 
  Extension and advisory services include tr aining (courses, publications, brochures, cross 
compliance materials, films) for farmers and entrepreneurs in forest and food sector, and 
consultation services for farmers and forest holders.  The aim of the advisory and extension services is to support the setting up of farm advisory service system and to support the 
provision of farm advisory and extension servi ces.  Advisory centres have been designated to 
ensure the functioning of the agricultural a dvisory system, including the communication of 
information about state measures and the ava ilability of quality advice (training plans, 
advisory tools, analyses, advertises the adviso ry service, and looks for new advisers).  The 
Ministry of Agriculture of the Republic of Es tonia has subscribed to surveys about assessing 
and planning advisory activities and training services. 
  The support for inspection services includes servi ces concerning veterinary and food control, 
food quality and safety inspection programmes a nd removal and destruction of fallen stock. 
  Marketing and promotion services are aimed at supporting the marketing and promotion 
activities for agricultural producers and processors  through participation in exhibitions and 
trade fairs and other joint promotion activities;   issuing and promoting the Approved Taste 
quality label;  gathering market informati on;  granting support for activities related to 
improving the production, processing or marke ting of agricultural produce and introducing 
the latest research and development findings  into production (including market research, 
product development, promotional activities, training, competitions and fairs, quality 
assurance etc.). 
 
 The support for infrastructural services involv es the maintenance of amelioration structures, 
aiming at promoting the development of infrastructure in rural areas. 
 7. Subsidy per unit, or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
 
 Fiscal year 2007 – grants of EEK 410.06 million from Estonian state budget  Fiscal year 2008 – grants of EEK 390.64 million from Estonian state budget  8. Duration of a subsidy and/or a ny other time-limits attached to it
 
 
 Duration of a subsidy is the validation period of NDP 2004-2006 and RDP 2004-2006 and 
RDP 2007-2013, Development plan for enhancing the use of biomass and bioenergy 2007-2013 and 
Development plan gathering and storing the gene tic resources of agricultural cultures 2007-2013, for 
National Programme Applied Research and Developm ent in Agriculture 2004-2008.  For state aid 
measures, the validation period is the end of 2013, if  a shorter period is not indicated, according to the 
state aid guidelines.  Other supports have no time-limits attached to them. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  G/SCM/N/186/EEC/Add.7 
 Page 25 
 
 
   
B. PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  
1. Period covered by the notification  
  2007, 2008 
 
2. Policy objective and/or purpose of the subsidy
 
  The programme covers the expenditures for purch asing and storing reserve stocks of different 
foodstuffs. 
 
3. Background and authority for the subsidy
 
  The Ministry of Agriculture  
4. Legislation under which it is granted
: 
  - State Budget Act of 2007;  - State Budget Act of 2008;  - Emergency Preparedness Act of 22 November 2000.  
5. Form of the subsidy
 
  The establishment, storage and replenishment of  the stockpile are fina nced in accordance with 
relevant agreements.  
6. To whom and how the subsidy is provided
 
  Ministry of Agriculture has agreements with different (8) enterprises, which act like partners 
of state to be prepared for urgency.  7. Subsidy per unit, or in cases, where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 - grants of EEK 0-059 million from Estonian state budget  Fiscal year 2008 - grants of EEK 0-071 million from Estonian state budget  
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 G/SCM/N/186/EEC/Add.7 
Page 26  
 
  C. D
OMESTIC FOOD 
1. Period covered by the notification  
  2007, 2008  
2. Policy objective and/or purpose of the subsidy
 
  The objective of granting school milk support is to increase the consumption of milk by 
school pupils and kindergarten children, to encourag e healthy eating habits and thereby promote the 
consumption of milk and milk products. 
 
 Stock for the benefit of the most deprived pe rsons in the Community is distributed by the 
Charitable Organizations.  They distribute macaronis to the most deprived persons and are also the 
ones responsible for communication with the benefici aries of the program i.e. those referred to as 
most deprived. 
 
3. Background and authority for the subsidy
 
  The Ministry of Agriculture.  4. Legislation under which it is granted
 
 
 European Union Common Agricultural Policy Implementation Act of 24 March 2004.  5. Form of the subsidy
 
 
 Grants 
 6. To whom and how the subsidy is provided
 
  The school milk support is common market organization measure that is aimed to increase the consumption of milk by school pupils as well as to encourage healthy eating habits and thereby 
promote the consumption of milk and milk products .  Support may be granted for learning facilities 
(school/kindergarten), milk products providers, ci ty governments/local municipality or legal person 
(e.g. non profit organization) that  represents school/kindergarten. 
  Stock for the benefit of the most deprived persons in the Community are distributed to the 
most deprived persons. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 - grants of EEK 8.76 million from Estonian state budget 
 Fiscal year 2008 - grants of EEK 12.10 million from Estonian state budget 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  G/SCM/N/186/EEC/Add.7 
 Page 27 
 
 
   
D. DIRECT PAYMENTS TO PRODUCERS  
1. Period covered by the notification  
  2007, 2008 
 
2. Policy objective and/or purpose of the subsidy
 
  Support is provided as coupled and decoupled  complementary national direct payments 
(CNDPs) to the single area payment scheme (SAPS). 
 
3. Background and authority for the subsidy
 
  The Ministry of Agriculture.  
4. Legislation under which it is granted
: 
  - European Union Common Agricultural Policy Implementation Act of 
24 March 2004; 
 - Commission Decision C (2007) 2254 of 1 June, 2007;  - Commission Decision C (2008) 3119 of 30 June, 2008. 
 
5. Form of the subsidy
 
  Grants  
6. To whom and how the subsidy is provided
 
  Coupled CNDPs are provided to the applicant, w ho grows arable crops, ra ises suckler cows or 
ewes.  Decopled CNDPs are provided to the appli cant, who grew arable crops and seeds in 2006, 
cattle in 2006, ewes in 2007, or owne d milk quota as of 31st of March 2007. 
 
 These payments act as supportive measures to en sure the basic reproduction of the sector and 
to prevent further growth of unused lands, which is also a supplementary effect of the measures. 
  The CNDP for arable crops is partially d ecopled from production and is provided to the 
producers equally according to the arable crop ar ea the producer attends, not depending on production 
or crop yield.  There are also some additional requi rements that must be fulfilled in order to receive 
the support.   The CNDP for suckler cows and ewes is pr ovided to the producers equally, according to the 
number of animals the producer keeps.  The animal s have to be identified and registered in the 
Animal Register.  It does not foresee the producti on growth and the support amount is neither linked 
to production volumes nor to price or income levels. 
  The CNDP for arable crops (decoupled) is pr ovided to the person dealing with agricultural 
activities and, who had applied CNDP for arable  crops and seeds in 2006 and according to the 
determined number of hectares of arable crops in 2006 and for which, aid application for SAPS is 
submitted in the current year; 
 G/SCM/N/186/EEC/Add.7 
Page 28  
 
   The CNDP for seeds (decoupled) is provided to the person dealing with agricultural activities 
and, who had applied CNDP for arable crops a nd seeds in 2006, and according to the determined 
hectares of seeds in 2006, which were also fields inspected and approved by the Plant Production 
Inspectorate for the certification of seed.  
 The CNDP for cattle (decoupled) is provided to  the person dealing with agricultural activities 
and, who had applied in 2006 CNDP for cattle or for dairy cows crossbreed with meat breed under 
CNDP for suckler cows and according to the author ised eligible animal livestock units in 2007; 
  The CNDP for milk (decoupled) is provided to  the person dealing with agricultural activities 
and according to the milk quota on his name as of 31st March 2007. 
  The CNDP for ewes (decoupled) is provided to the person dealing with agricultural activities 
and who had applied in 2007 CNDP for ewes and according to the determined number of animals 
taking into account the minimum size of herd (10 ewes) in 2007. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 - grants of EEK 591.65 million from Estonian state budget  Fiscal year 2008 - grants of EEK 780.25 million from Estonian state budget 
 
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  E. P
AYMENT FOR RELIEF FROM NATURAL DISASTERS  
 There were no grants of payment for relie f from natural disasters aw arded on 2007 and 2008. 
 
F. STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS 
1. Period covered by the notification  
  2007, 2008 
 
2. Policy objective and/or purpose of the subsidy
 
  The programme aims at assisting producers by offering financial restructuring aid.  3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture.   G/SCM/N/186/EEC/Add.7 
 Page 29 
 
 
  4. Legislation under which it is granted  
  - Estonian National Developmen t Plan 2004-2006 (NDP 2004-2006); 
 - Estonian Rural Development Plan 2004-2006 (RDP);  - Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
 - European Union Common Agricultural Policy Implementation Act of 24 March 2004. 
 5. Form of the subsidy
 
  Grants 
 
6. To whom and how the subsidy is provided
 
 (i) Investment subsidies are provided through NDP to agricultural producers, who are 
continuously maintaining econom ic productivity or, who can reach this after the investments 
are made.  The producer must also fulfil at least the minimum amount of the requirements, 
which involve the environment, the hygiene and welfare of animals.  Through investment aids, different investments in agricultural area are supported: 
  - Measure 3.1 - Investments in agricultu ral holdings - increasing the competitiveness of 
agriculture through raising the level of technology and improving the quality of 
products. 
  - Measure 3.2 - Investment support for improving processing and marketing of 
agricultural products - bringing the processing of agricultural production into conformity with new market requirement s, finding new markets for agricultural 
products and improving the functi oning of marketing channels. 
  - Measure 3.4 - Investment to integrated land improvement - land improvement and 
development of the infrastructure related to agricultural development. 
  Also two different measures are provided through the RDP 2004-2006: 
 
 - Support for agricultural holdings so they could meet the EU requirements – to adjust 
the agricultural production, stock raisin g and dung depots water protection demands 
to the EU requirements; 
 
 - support for semi subsistence farms to gi ve smaller agricultural holdings temporary 
income support in the post accession transitiona l period, and to thus contribute to the 
maintenance of smaller agricultural hold ings and make them more economically 
viable. 
  Subsidies are provided through the RDP 2007-2013: 
 
 - Measure 1.2 - Support to younger than 40 year old agricultural producers for setting 
up new holdings.  Target is to relief th e difficulties of changing the generations; 
 
 -  Measure 1.4 - Support for micro agricultura l holdings with target to enlarge the 
competitiveness of agricultural production via diversification of agricultural 
activities; 
 G/SCM/N/186/EEC/Add.7 
Page 30  
 
   -  Measure 1.8 - Support for land improvement activities of land improvement 
associations via preserving the operation of drainage systems on agricultural land. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2007 – grants of EEK 78.85 million from Estonian state budget 
 Fiscal year 2008 – grants of EEK 150.47 million from Estonian state budget 
 8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  Duration of a subsidy is the validation pe riod of Estonian NDP 2004-2006, RDP 2004-2006 
and RDP 2007-2013. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
G. P
AYMENT UNDER ENVIRONMENTAL PROGRAMMES  
1. Period covered by the notification  
  2007, 2008  2. Policy objective and/or purpose of the subsidy
 
 
 This support is provided for environmentally friendly and sustainable production methods.  It 
is also provided for afforestation of agricultural la nd that is unsuitable for agricultural production and 
is out of use.  
3. Background and authority for the subsidy
 
  The Ministry of Agriculture  4. Legislation under which it is granted
 
 
 - Rural Development and Agricultural Mark et Regulation Act of 21 April, 2004; 
 - Rural Development and Agricultural Ma rket Regulation Act of 19 June 2008; 
 - Estonian Rural Development Plan 2004-2006 (RDP 2004-2006);  - Estonian Rural Development Plan 2007-2013 (RDP 2007-2013).  
5. Form of the subsidy
 
  Grants  6. To whom and how the subsidy is provided
 
 
 The aim of the support is to introduce e nvironmentally friendly production methods and 
increase the share of organic farming in traditional ag riculture that will promote sustainability of the 
environment by restricting the use of fertilizers a nd pesticides in the handling of organic foodstuffs, 
and facilitates the preservation of the natural fertility of the soil, the assurance of biological diversity 
and the continued use of semi natural grasslands.  Support is granted annually and is calculated on the  G/SCM/N/186/EEC/Add.7 
 Page 31 
 
 
  basis of income foregone and additional costs resulti ng from the given actions and the need to provide 
an incentive.  Payments are based on limitations on th e use of fertilizers, plant protection products or 
other inputs.   The support for afforestation of agricultural lands unsuitable for agricultural production and 
out of use is provided through RDP 2004-2006 in or der to contribute to the maintenance of landscape 
diversity and to the reasonable use of inferior  (soil quality rating up to 35 evaluation points) 
agricultural lands.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 – grants of EEK 77.67 million from Estonian state budget  Fiscal year 2008 – grants of EEK 85.72 million from Estonian state budget  
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  Duration of a subsidy is the valida tion period of RDP 2004-2006 and RDP 2007-2013. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A 
 H. P
AYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES  
1. Period covered by the notification  
 
 2007, 2008 
 2. Policy objective and/or purpose of the subsidy
 
  General objective of the measure is to secure  continuous land use in less favoured areas and 
Natura 2000 areas. 
 
3. Background and authority for the subsidy
 
  The Ministry of Agriculture  
4. Legislation under which it is granted
 
  - Estonian Rural Development Plan 2004-2006 (RDP 2004-2006);  - Estonian Rural Development Plan 2007-2013 (RDP 2007-2013).  5. Form of the subsidy
 
 
 Grants  6. To whom and how the subsidy is provided
 
 
 The aim of the measure is to secure the continuous land use in  less favoured areas.  According 
to the estimation, there are about 465 000 ha of ag ricultural land in Estonia that falls under the 
category of less favoured areas.  G/SCM/N/186/EEC/Add.7 
Page 32  
 
   Considering the need to maintain biological a nd landscape diversity, it is necessary to ensure 
in Natura 2000 areas the agricultural lands compensa tion for the restrictions, this compensation is 
given via RDP 2004-2006 and RDP 2007-2013.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 – grants of EEK 25.27 million from Estonian state budget  Fiscal year 2008 – grants of EEK 28.20 million from Estonian state budget  
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  Duration of a subsidy is the valida tion period of RDP 2004-2006 and RDP 2007-2013. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A  I. 
INSURANCE SUPPORT  
1. Period covered by the notification  
 
 2007, 2008 
 2. Policy objective and/or purpose of the subsidy
 
  The aim of the support measure is to facilitate  the insurance for agricultural crops, productive 
animals or fisheries against natural disasters and to  motivate the producers to take a larger share of 
responsibility in case of a possible damage.  3. Background and authority for the subsidy
 
  The Ministry of Finance, Ministry of Agriculture. 
 
4. Legislation under which it is granted
 
  Rural Development and Agricultural Ma rket Regulation Act of 19 June 2008 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 The support is provided to the agricultural pr oducers who, as a precautionary measure, have 
concluded an insurance contract for agricultural cr op or productive animals, poultry or swarm of bees 
against adverse climatic event which can be assimi lated to natural disasters and/or losses caused by 
animal or plant diseases or pest infestations ( according Commission Regulation (EC) No 1857/2006 
Article 12).  The requirement for receiving the support is that the payments are made correctly and on 
time, also the applicant must be registered in Es tonian Agricultural Register s and Information Board. 
  G/SCM/N/186/EEC/Add.7 
 Page 33 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2007 – no grants were awarded.  Fiscal year 2008 – grants of EEK 0.22 million from Estonian state budget. 
 
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  Duration of a subsidy is until the end of 2013.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  J. 
FUEL TAX EXEMPTION  
1. Period covered by the notification  
  2007, 2008  2. Policy objective and/or purpose of the subsidy
 
 
 The tax exemption is for agricultural produces us ing diesel fuel marked with fiscal marker in 
the machinery used in agricultural production proc ess.  The aim is to reduce the tax burden of 
agricultural sector.  3. Background and authority for the subsidy
 
 
 The Ministry of Finance, Ministry of Agriculture.  4. Legislation under which it is granted
 
  - Council Directive 2003/96/EC of 27 October 2003 restructuring the Community 
framework for the taxation of energy products and electricity; 
 - Alcohol, Tobacco and Fuel Excise Duty Act of 4 December 2002;  - Rural Development and Agricultural Ma rket Regulation Act of 21 April 2004; 
 - Rural Development and Agricultural Ma rket Regulation Act of 19 June 2008. 
 
5. Form of the subsidy
 
  Tax exemption.  6. To whom and how the subsidy is provided
 
 
 The tax exemption is for agricultural produces us ing diesel fuel marked with fiscal marker in 
the production process.   Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy. 
 G/SCM/N/186/EEC/Add.7 
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   Tax exemption is calculated taking into account  the difference between the normal tax rate 
and reduced tax rate.   Fiscal year 2007 – tax exemption is calculated approximately EEK 287.42 million Fiscal year 2008 – tax exemption is calculated approximately  EEK 449.24 million from Estonian state budget 
 
8. Duration of a subsidy and/or a ny other time-limits attached to it
 
  No time-limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
__________