Import Tariffs

Note: Customs and taxation procedures for Bosnia and Herzegovina have been undergoing significant changes due to the consolidation of all indirect taxation authority into one State-level Indirect Tax Administration (ITA).

A. Customs Regulations, Tariff Rates, and Import Taxes

1. Registration requirements for importing

Any domestic and foreign entities (physical and legal), registered for foreign trade activities may conduct such activities. The registration of requests for imports of goods is, in principle, not applied, with the exception of certain specific goods.

2. National tariffs

The Customs Tariff Nomenclature is based on the Harmonized Commodity Description and Coding System (HS).  BiH nomenclature of goods is fully harmonized with the combined EU nomenclature.

Customs duties on all commodities imported into the customs territory of Bosnia and Herzegovina are paid ad valorem at rates of 0, 5, 10 and 15 percent.  These rates apply to commodities originating from countries that have concluded an agreement with a Most Favored Nation (MFN) clause with Bosnia and Herzegovina, or from those countries that apply the same clause on the commodities originating from BiH. Upon BiH accession to WTO, MFN treatment will be granted to all WTO members.

In addition to ad valorem custom duty rates, an additional duty is paid on imports of certain agricultural products in a per-unit amount.  This additional duty is charged on 852 of the total number of tariff headings (10,823), and the amounts range from 0.08 BAM/per unit to 6.00 BAM/per unit.

Preferential tariff measures, pursuant to Article 3 paragraph (c) of the Customs Tariff Law, may apply to goods from certain countries or groups of countries which have concluded an agreement on preferential treatment with BiH.  

Free Trade Agreements (FTAs) have been concluded with Albania, Bulgaria, Croatia, Macedonia, Moldova, Romania, Serbia & Montenegro, and Turkey.  These agreements are fully compatible with Article XXIV of the 1994 GATT and other WTO provisions on regional integration.  As of June 2007, these FTAs were replaced by CEFTA (Central European Free Trade Agreement), which includes all aforementioned countries except Turkey, which is covered by a separate FTA - see the chapter on Investment Climate.   

3. Tariff quotas, tariff exemptions

Tariff quotas - Articles 3 and 7 of the BiH Customs Tariff Law permit the introduction of tariff quotas as a special measure for certain tariff headings.  Consequently, the BiH Council of Ministers (CoM) may approve imports of goods exempt from customs duties or at tariff rates lower than the duty set by the BiH Customs Tariff.  The application of this measure is restricted to limits, and ceases when the stipulated limit or value of the quota is reached.  Tariff quotas are only applied to raw materials imported at zero tariff for the meat-processing industry (as of June 2004).   

Tariff exemptions and relief - Irrespective of tariff rates set by the Customs Tariff Law, some goods are exempt from customs duties under specific conditions.  The following goods are exempt from customs duties: 

-           Equipment representing the investment of a foreign person, except passenger vehicles and   entertainment and gaming machines;

-           Goods for military and police forces in the entities that are fully donor financed;

-           Goods for reconstruction projects in BIH.

4. Other duties and charges

Irrespective of the customs duty which is paid on all commodities imported into the customs territory of BiH at the rates stipulated in the Customs tariff, the Law on Customs Policy, and the Law on Foreign Trade Policy, there are other regulations prescribing or allowing imposition of other taxes and charges.

Customs record keeping - Article 13 paragraph (b) of the Law on Customs Policy prescribes a charge of 1 percent of the customs value on imported goods for customs record keeping. 

While BiH plans to maintain the charge, it will be restricted to the cost of services rendered and it will be brought into conformity with Article VIII of the 1994 GATT when BiH accedes to WTO, in line with an agreed transitional period.

Seasonal duty - Article 19 paragraph 7 of the Law on Customs Policy allows for imposition of a seasonal duty.  Accordingly, in addition to the tariff rates in force, the BiH Council of Ministers, after consulting the entities, may introduce a seasonal duty on non-processed agricultural products for a set period of time.  The seasonal duty has never been applied.

Antidumping and Countervailing Duties - Goods imported to BIH at prices below their normal value or subsidized in some way may be subject to antidumping and countervailing duties, in accordance with BiH law. 

Fees for Inspection of Goods - Article 7, paragraph 3 of the Law on Foreign Trade Policy requires sanitary, veterinary, phyto-sanitary and ecological inspections of certain imported goods.  Fees for these inspections are set by the Law on Administrative Fees and are approximately equal to the value of the service performed, in line with Article VIII of GATT.

5. Application of internal taxes on imports

Value Added Tax (VAT) – As of January 1, 2006, Bosnia and Herzegovina introduced a Value Added Tax (VAT) at a flat rate of 17 percent that is levied on all imported goods. 

Excise tax - The excise tax is paid only on certain goods at the moment of their release for free circulation.  The excise tax is applied identically to domestic and imported goods.  

The goods for which an excise tax is levied are: oil derivatives, tobacco, beverages, alcoholic drinks, beer and wine and coffee.

6. Rules of origin

Rules of origin are set out in Articles 20 - 23 of the Law on Customs Policy. This Law distinguishes between non-preferential and preferential origins.  BiH has not concluded an agreement on preferential origin with the U.S.  

Non-preferential origin - The Law stipulates that goods originating from a country are those wholly obtained or produced in that country.  Goods whose production involved more than one country shall be deemed to originate in the country where they underwent their last substantial and economically justified processing or finishing in a company equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture. 

Preferential origin of goods - Article 23 of the Law on Customs Policy prescribes the rules to be applied for preferential trade, i.e. the conditions goods need to fulfill in order to benefit from the preferential measures referred to in Article 19, paragraph 4 (c) and (d) of the Law.

B. Customs Valuation

Articles 24 to 32 of the Law on Customs Policy establish procedures for the determination of the customs value of goods. 

Pursuant to Article 25 of the Law on Customs Policy, the customs value of imported goods is the transaction value, i.e. the price actually paid or payable for the goods when sold for exports to the customs territory of BiH. 

The system of customs valuation in the Law on Customs Policy is fully compatible with WTO rules.

Import Requirements and Documentation

All goods imported into the customs territory of Bosnia and Herzegovina are subject to customs procedures contained in the Law on Customs policy, which apply uniformly throughout the customs territory of BiH. Imports must be accompanied by a customs declaration, filled out in one of the three official languages of BiH (Bosnian, Serbian or Croatian), submitted by the person named on the waybill or an authorized representative.  The declaration must be accompanied by any relevant documents (invoice, shipping documents, quality control certificates).  The customs office may inspect the goods and take samples to determine that the goods correspond to the information on the customs declaration. Once the customs office determines the amount of customs duty, the importer is required to obtain a guarantee covering the customs duty with the Customs Authority in the form of a cash deposit or a bank guarantee.  The goods cannot be placed in circulation until customs duties have been paid or the payment has been guaranteed.

Bill of Lading: May be direct or to order. Mail and parcel shipments require postal documentation in place of bills of lading.  Packages containing merchandise for which the senders are to receive payment must enclose the original invoice in the package (marked “Original Invoice”) and the wrapper of the package must be marked to indicate that the original invoice is enclosed.  Senders are recommended to post a signed copy of the invoice giving notice to the addressees that the packages are en route.  Air cargo shipments require airway bills with the number of copies issued based on requirements of the importer and the airline.

Certificate of Origin: Certificates of origin should be issued in a minimum of two copies (the certifying organization will require an additional notarized file copy) made out by a reliable authority or agency duly authorized for that purpose by the country of issue.  Certificates of origin are not required for imports for long-term production ventures with foreign partners, for the purchase of capital goods for investment projects abroad and for the return of goods to Bosnia and Herzegovina, or for imports without payment of equivalent value.

Commercial Invoice: There is no prescribed format. Invoices should be issued in a minimum of two copies; additional copies may be requested. They must contain the usual particulars, including a full description of goods, marks and numbers, gross and net weights, number of packages, country of origin, plus any information that must be furnished to conform to contract.

Insurance Certificate: Normal commercial practices. Follow importer’s and/or insurance company’s instructions/advice.

Packing List: Not mandatory, but its use will facilitate clearance of goods.

Pre-shipment inspection: May be requested by importer.

Pro-Forma Invoice: May be requested by importer.

U.S. Shipper’s Export Declaration (SED): Required if value is more than USD 2,500 (USD 500 for shipments through the US postal system). SEDs are required for all shipments requiring an export license.

U.S. Export Controls

More information on US export controls to Bosnia and Herzegovina and general guidelines can be found at the Bureau of Industry and Security website (http://www.bis.doc.gov/licensing/ExportingBasics.htm).

In general, here is the summary of steps to take to process your export:

• Ensure that your export is under U.S. Department of Commerce jurisdiction.
• Classify your item by reviewing the Commerce Control List.
• If your item is classified by an Export Control Classification Number (ECCN), identify the Reasons for Control on the Commerce Control List.
• Cross-reference the ECCN Controls against the Commerce Country Chart to see if a license is required. If yes, determine if a License Exception is available before applying for a license.
• Ensure that no proscribed end-users or end-uses are involved with your export transaction. If proscribed end-users or end-uses are involved, determine if you can proceed with the transaction or must apply for a license.
• Export your item using the correct ECCN and the appropriate symbol (e.g., NLR, license exception, or license number and expiration date) on your export documentation (e.g., Shipper’s Export Declaration).  

Temporary Entry

Goods temporarily entering BiH may be fully or partially free of customs duties and must not undergo any changes except for the nominal loss of value due to use.  The maximum period for temporary entry is 12 months. The full list of goods that can be imported under this regime is provided in the Law on Customs Policy.

Labeling and Marking Requirements

Labels must contain the following information: name of the product, full address of the importer and the country of origin, net quantity/weight/volume, ingredients, manner of storage (transport, use, or maintenance), and pertinent consumer warnings.  Technically complex products must be accompanied by instructions on usage, manufacturer specifications, a list of authorized maintenance persons/businesses, warranty information, warranty period, and other applicable data.  All information must be translated into the languages of BiH and affixed to (or accompanying) the product before it is put on the market.

Prohibited and Restricted Imports

In accordance with Article 6, paragraph 2 of the Law on Foreign Trade Policy, for reasons of public safety and protection of human health and lives, the following types of imports are restricted:

• Passenger cars older than seven years;
• Cargo vehicles older than ten years;
• Buses older than ten years;
• Trailers for cargo vehicles older than ten years;
• Used tires.

In accordance with obligations from international trade agreements, the CoM may ban imports, exports, or transit of certain goods through BiH or set conditions for imports, exports, or transport of such goods in transit in order to prevent danger to human lives, health and the environment.

Customs Regulations and Contact Information

Uprava za Indirektno Oporezivanje Bosne i Hercegovine - Indirect Taxation Administration of Bosnia and Herzegovina

Phone: +387-(0)51-335-494 Fax: +387-(0)51-335-101
Bana Lazarevica bb
Banja Luka, 78000 Bosnia and Herzegovina
http://www.uino.gov.ba/ 

Standards

• Overview
• Standards Organizations
• Conformity Assessment
• Product Certification
• Accreditation
• Publication of Technical Regulations
• Labeling and Marking
• Contacts

Overview

After the breakup of Yugoslavia, BiH inherited 11,183 Yugoslav standards and by-laws (known as “JUS” standards).  Currently there are around 10,391 JUS standards in force.  Identical regulations and standards are applied to both domestic and imported goods, regardless of the country of origin.

As of January 1, 2007 the former Institute for Standardization, Metrology and Intellectually Property of BiH was broken into three separate Institutes:

• Institute for Standardization
• Institute for Metrology
• Institute for Intellectual Property Rights (“IPR Institute”)

BiH standards are designated as the BAS Standard.  BiH is a member of the following international organizations for standardization: 

• ISO                  International Organization for Standardization;
• IEC                  International Electro-technical Commission;
• CEN                 European Committee for Standardization;
• CENELEC         European Committee for Electro-technical Standardization;
• ETSI                 European Telecommunications Standards;

Standards Organizations

• Institute for Standardization
• Institute for Metrology
• Institute for Intellectual Property Rights (“IPR Institute”)

Testing/Conformity Assessment

The Institute for Standardization is the main conformity assessment body in BiH.  There are other testing organizations in BiH; a list of these institutions can be obtained from the Institute.

Product Certification

Product certification is required in order to make sure that the product has undergone appropriate testing and that it conforms to relevant regulations. There are no existing Mutual Recognition Agreements with U.S. organizations.

Accreditation

The Accreditation Institute of BiH is the main institution for accrediting testing organizations in the country.   

Publication of Technical Regulations

The Institute for Standardization of BiH publishes a bulletin of standards.  Technical regulations are published in: the Official Gazette of BiH, Official Gazette of FBiH, and the Official Gazette of RS.  U.S. companies can comment directly to the Institute.

Labeling and Marking

Labels must contain the following information: name of the product, full address of the importer and the country of origin, net quantity/weight/volume, ingredients, manner of storage (transport, use or maintenance), and pertinent consumer warnings.  Technically complex products must be accompanied by instructions on usage, the manufacturer’s specifications, a list of authorized maintenance persons/businesses, warranty information, warranty period, and other applicable data. All information must be translated into the languages of Bosnia and Herzegovina and be affixed to (or accompany) the product before it is put on the market. 

Contacts

Institute for Standardization

Mr. Goran Tesanovic, Director

Hamdije Cemerlica 2/7

71000 Sarajevo, Bosnia and Herzegovina

Phone: +387-33-652-781        Fax: +387-33-652-757

 

Institute for Metrology

Mr. Esad Tuzovic, Director

Dolina 6

71000 Sarajevo, Bosnia and Herzegovina

Phone: +387-33-207-015

 

Institute for Intellectual Property Rights

Ms. Lidija Vignjevic, Director

Kralja Petra Kresimira IV 8a

88000 Mostar, Bosnia and Herzegovina

Phone: +387-36-334-381

 

Accreditation Institute of BiH

Mr. Zarko Petrovic, Director

Hamdije Cemerlica 2/7

71000 Sarajevo, Bosnia and Herzegovina

Phone: +387-33-721-310

Trade Agreements

In December 2006, Bosnia and Herzegovina signed the Central European Free Trade Agreement (CEFTA) which became fully operational in November 2007.  The regional trade group includes Albania, Bosnia and Herzegovina, Croatia, Macedonia, Serbia, Montenegro, Kosovo and Moldova.