How to Export to Serbia and Montenegro

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How to Export to Serbia

Customs Valuation
What are the duties and taxes to be paid at Customs?

Duty
Duties vary by the good that is exported. Each product has a harmonized system number (also known as a Schedule B number), which identifies the product internationally. Harmonized codes can be found on the Internet by running a key word search on the Census Bureau Web Site or by calling the Census Bureau (Tel: 301-763-3259 or 301-763-3047). The specific duty rates are published in the Serbian tariff schedule based on this harmonized System of classification and CEEBIC (Tel: (202) 482-2645) can provide the duty rate if exporter supplies the Harmonized code for the good.

*The duty is assessed on the CIF, or cost, insurance and freight.

A customs tariff law came into effect on June 1, 2001. The new law contains only six tariff rates (instead of the previous 36), ranging from 1 to 30 percent. Companies and other legal persons engaged in foreign trade have to be registered at the Commercial Court (no longer at the federal level) and with the Federal Customs Service. Under the new Law on Customs Tariffs, the average weighted duty has been reduced by 5.06 percent, from 14.43 to 9.37 percent. Tariffs range from 1 to 30 percent; 50.16 percent of products are subject to rates ranging from 1 to 5 percent, and 73.17 percent of products are subject to rates between 1 and 10 percent. In total, 7,099 products are now subject to less restrictive tariffs, 1,116 are in the same tariff category as before, and 330 products are subject to higher duty rates. Extra tariffs for importing goods above quantities specified by import quotas have been cancelled. The customs handling fee is 0.5 percent.

Value Added Tax (VAT)
The Value Added Tax (VAT) is a European type of sales tax that is applied to all goods, both domestic and foreign, sold within Serbia. Serbia. The general VAT is 18 percent, with a reduced rate of 8 percent applied to basic foods, pharmaceuticals, public utilities, publishers and certain services under a plan by the Finance Ministry, to be adopted by Parliament in July 2005.

*The VAT is assessed on the CIF plus the amount paid in duties.

Excise, Consumption, Luxury Tax

Excise duties are levied on producers and importers of the following goods: oil derivatives, tobacco products, alcoholic beverages, alcohol-ethanol, coffee, soft drinks, food salt and luxury products (i.e. products containing more than 2% of gold, 50% or more of silver, precious stones, furs, tax). Oil derivatives and coffee imported by international humanitarian organizations, and alcohol-ethanol used for medical purposes are tax-exempt. The ad valorem rates are valid only for luxury products (i.e. 20%, and 30%). The excises on other excisable goods are levied based on quantity. The rates per unit are the following:

o Oil derivatives: motor fuels 10,00 YUD/lit, diesel 7,00 YUD/lit, heating oil 5,40 YUD/lit, jet fuel 2,70 YUD/kg, motor oils and lubricants 50,00 YUD/lit, liquid gas 1,90 YUD/kg, petroleum for lighting 2,50 YUD/kg
o Tobacco products, ranging from 2,00 YUD/pack to 12,00 YUD/pack, depending on the qualitative group of cigarettes
o Alcohol-ethanol, ranging from 7,00 YUD to 20,00 YUD; single-rate is 17% (+ 3% special federal sales tax).
o Alcoholic beverages: wine 12,00 YUD/lit, beer 5,00 YUD/lit, brandy 30,00 YUD/lit, other strong drinks 40,00 YUD/lit
o Soft drinks 1,50 YUD/lit
o Coffee 10,00 YUD/kg
o Food: salt 2,00 YUD/kg.

If excise duty is paid on substances contained in other exported goods the exporter or producer has the right to apply for a refund of excise.

Exemptions
Exemptions from duty:

o No duty is payable on imports of new equipment on the basis of investment by a foreign person, except on passenger motor vehicles and machines for entertainment and games of chance.
o Exemption from duty also applies to equipment that is not manufactured in Yugoslavia (against a certificate to that effect issued by the Yugoslav Chamber of Commerce and Industry) if it is imported for the purpose of: replacement of the equipment destroyed in natural disasters, fire, explosion, armed conflicts or traffic accidents; research, educational and cultural activities; health protection, professional training and employment of disabled persons, if it directly serves the purpose of such activities; and direct protection of environment.
o No duty is payable, or is payable at a 50% lower rate, on imports of raw materials, semi-finished goods, parts of assemblies and finished products imported for the purpose of implementation of long-term co-production contracts with foreign persons, provided that such products are not manufactured in Yugoslavia or are manufactured in insufficient quantity or at an insufficient quality level, which is certified by the Yugoslav Chamber of Commerce and Industry.
o Imports of raw materials and semi-finished goods for the manufacture of goods intended for export enjoy the facility of refund duty in the real amount if the goods thus manufactured are exported.
Free Trade Zones/Warehouse
o Companies which operate in the free trade zones are entitled to import and re-export products from these zones without restrictions and without paying the customs duties, charges or the Sales Tax. A permit for opening a tax free zone is issued by the Federal Government. Activities directly related to citizen's health, environment, creation of material goods and the national defense are not allowed.
o There are currently 12 free trade zones in Serbia with more than 170.000 square meters of production and storage space and related infrastructure. The free trade zones are located in Belgrade (with sub zones in Pancevo, Smederevo and Kovin), Sabac, Novi Sad, Sombor, Prahovo, Pirot, Lapovo, Sremska Mitrovica, Senta, Nis, Vladicin Han and Backa Palanka.
o Temporary Entry
Goods may be temporarily exported or imported for the purpose of rendering services to foreign persons and using the services of foreign persons, with the obligation to return them within a specified period of time, in unchanged or changed condition. An enterprise and another legal person may temporary import equipment on lease for using it in production and in the rendering of services. Such imports are approved by the customs house.
o Membership in Free Trade Agreements
Serbia has signed free trade agreements with Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Romania, and the EU.
Import Licenses
What goods need import licenses?

Import of goods has been highly liberalized, so that only about 1% of goods is on the licence regime, while the rest can be imported freely.

Export Licenses
Most high-tech Western technology can flow into Central and Eastern Europe without a U.S. export license. However, the goods that need an export license are different for every country and the list constantly changes. Generally, defense products and equipment such as optical equipment and software that may have a dual usage do require an export license. Export licenses can be obtained from the Bureau of Industry and Security (BIS) (formerly, BXA at the U.S. Department of Commerce). BIS coordinates the licensing process with the Departments of State and Defense. If an exporter has a good that may need a license, the Export Commodity Control Number (ECCN) must be determined from the manufacturer. The number can also be obtained by filling out the BIS-748 Multipurpose Form, available by calling BIS's form request line (Tel: (202) 482-3332). This form also serves as the application for the export license itself. For specific questions about Export Licenses, call (202) 482-4811.

Useful Addresses

U.S. Government Contacts
U.S. Embassy
Bertram D. Braun, Political and Economic Affairs Officer
Kneza Milosa 50
11000 Belgrade, Serbia & Montenegro
Tel: 381 11 361 9344
Website:belgrade.usembassy.gov/index.html

Maria Andrews, Senior Commercial Officer
Boris Popovski, CEEBIC Representative
U.S. Embassy Belgrade Kneza Milosa 50
11000 Belgrade, Serbia & Montenegro
Tel: 381 11 646 286
Fax: 381 11 361 7582
Website: buyusa.gov/yugoslavia/en/
Email: Maria.Andrews@mail.doc.gov, Boris.Popovski@mail.doc.gov

Country Government Offices
Ministry of Finance and Economy
22-26 Nemanjina St.
Belgrade, Serbia &Montenegro
Tel: 381 11 3616 361; 3616533
Fax: 381 11 3616 535
Website: www.mfin.sr.gov.yu
Email: informacije@mfin.sr.gov.yu

Ministry of International Economic Relations
8 Gracanicka St.
Belgrade, Serbia & Montenegro
Tel: 381 11 3617 628; 3346 067
Fax: 381 11 3633 142
Website: www.mier.sr.gov.yu
Email: office@mier.sr.gov.yu

Ministry of Trade, Tourism and Services
22-26 Nemanjina St.
Belgrade, Serbia & Montenegro
Tel: 381 11 3631 136; 3618 852
Fax: 381 11 3610 258
Website: www.minttu.sr.gov.yu
Email: kabinet@minttu.sr.gov.yu

Serbian Customs Office
Bulevar Avnoj 155
11070 Belgrade, Serbia & Montenegro
Tel: 381 11 695 025
Fax: 381 11 690 614
Website: www.FCS.yu

Other Important Contacts and Further Information
Chamber of Commerce and Economy of Serbia
Resavska 13-15
11000 Belgrade Serbia & Montenegro
Email: centar@pks.co.yu

Serbian Investment and Export Promotion Agency (SIEPA)
Terazije 23
11000 Belgrade, Serbia & Montenegro
Tel.: 381 11 3248-040
Fax: 381 11 32 48 227
Website: siepa.sr.gov.yu/