Import duties in Bosnia and Herzegovina

Import duties in Bosnia and Herzegovina

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Indirect Taxation Authority is responsible for the collection of all customs duties.

With the European Union, customs duty rates will gradually decrease, depending on the type of products, up to 90%, 75% or 50% of the previous rate, while the duty rates for some products will be completely eliminated.

The reduction in the import duty rate applies only to products originating in the EU and not to all goods imported from the EU.
It is still planned tariff protection for agricultural products which are mainly paying duty rates as before.

Exemption
Equipment of the foreign investor being imported as part of share capital is exempt from paying customs duties (with the exception of passenger vehicles, slot and gambling machines).

-From the payment of import duties are exempted: production equipment that are not produced in Bosnia and Herzegovina, imported for the new or expansion of existing production, modernization of production, the introduction of new or modernization of the existing production technology, and carrying out the direct manufacturing activity

-From the payment of import duties are exempted, on the production assets and other equipment belonging to the company which definitively ceases activity in another country and transfers to the customs territory of Bosnia and Herzegovina in order to carry out similar activities.
-If the company that is moving is the farm, the animals on it are also exempted from import duties on importation.

In order to enjoy benefit for foreign investor, he should submit a written request for exemption from paying import duties to the competent customs authority (according to the place of seat of the company) along with the following documents[1]:
- contract or other relevant document about the investment on the basis of which the equipment is being imported,
- proof of registration of the foreign share (equipment) at the competent authority,
- specification of equipment with tariff number, tariff mark (with quantity indication), single and total value, certified by the investor,
- statement of the investor that the equipment is not older than 10 year age limit,
- certificate of the competent institution confirming that the imported equipment complies with the environmental and employment protection standards.
The Customs Office issues a decision within 15 days upon submission of the request.
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[1] The procedure is regulated by the Decision on exemption from paying import duties for equipment that represents share capital of a foreign investor (issued by Council of Ministers)

Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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