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Sarajevo Times > Blog > BUSINESS > The Economy is looking for “simplified customs Procedures” in BiH
BUSINESS

The Economy is looking for “simplified customs Procedures” in BiH

Published July 19, 2022
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The start of the application of the Law on Customs Policy in Bosnia and Herzegovina (BiH) is announced for August 1st. This was decided by the Management Board of the Indirect Taxation Authority of BiH (ITA BiH). However, that decision caused an outcry from the business community, especially exporters. This is mainly because it comes at a time when, due to global economic disturbances in the world, domestic exporters are trying to take advantage of the proximity to the European Union (EU) market, and this law, they claim, makes it difficult for them.

Associations of businessmen of all levels reacted in the same way, demanding changes to the Decision on the Implementation of the Law on Customs Policy. Among the numerous initiatives sent to authorities in state and entity institutions there is the initiative of the Board of Directors of the Zenica-Doboj Canton (ZDC) Chamber of Commerce, a canton whose exports account for 19% of the Federation’s exports and 13% of the total exports of BiH.

”It may happen that we will have terrible problems in the organization of loading, in providing transport, subsequent collection of invoices, in the organization of the compliance of our work and the connection with the customs authorities. Worst of all, we will have limited hours. Now we have no problem, when the trucks arrive at 7 a.m., we ship 5-6 trucks by 8 or 9 a.m.,” says Mirza Omanovic, executive director for finance and economic affairs.

The Board of Directors of the ZDC Chamber of Commerce warns of possible consequences. The president of the ZDC Chamber of Commerce, Diana Babic, states that export procedures will become more difficult and complex, as well as the costs of export customs clearance – the deadlines for the delivery of goods will be called into question, and thus the business and export activities of companies from all over BiH.

That is why it is their initiative to retain “simplified customs procedures” in the new regulations. Exporters from the Tuzla Canton (TC) do not even want to imagine a work scenario that includes shorter working hours for customs authorities.

”About 25% of our sales take place after 6 p.m., when, according to the new legislation, export would be impossible. This means that the trucks would have to wait until 8 a.m. – this is not only a waste of time but also costs a lot of money,” warns Sead Pasic, executive director for the supply chain of ‘Sisecam Soda Lukavac’.

Among the reasons for the Decision on the Implementation of the Law on Customs Policy in BiH created in this way, the obligation to harmonize domestic and EU regulations in the area of customs is mentioned.

”Yes, we need to harmonize with the EU legislation, but we don’t have to do everything immediately, but we can do certain things gradually. There are also examples that Croatia, as a member of the EU, just kept this simplified customs procedure for invoices 7 years after joining the EU,” claims Ognjenka Lalovic, director of the Economy Sector at the Foreign Trade Chamber of BiH.

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