Moldova's foreign trade environment is characterized by extensive export and import tariffs, exhaustive license requirements, and export quotas. Under the provisions of a 2001 budget law, all imports are assessed a 5% tax of their customs cost regardless of their country of origin. Moldova also levies customs tariffs on all imports except those from the former Soviet Union, Romania, the European Union, and a select group of countries with which Moldova has free trade agreements. Excise taxes apply to automobiles (30%), alcoholic beverages (50%), electronics (50%), and cigarettes (70%). Since 1998 most imports are subject to a value-added tax (VAT) that amounts to 20% of the customs value of the goods. Grain and medical supplies may be imported duty-free.