Free trade Agreements

Preferential tariff rates (lower than those prescribed by the Customs Tariff) apply to goods originating in countries with which the Republic of Serbia concluded free trade agreements. Appropriate evidence on origin must follow these goods. In this moment, on imports to the Republic of Serbia apply the following free trade agreements:

• Free Trade Agreement with the Russian Federation,
• Free Trade Agreement with the Republic of Belarus,
• Free Trade Agreement with the Republic of Kazakhstan,
• Central European Free Trade Agreement (CEFTA),
• Interim Trade Agreement with the EU,
• Free Trade Agreement with the Republic of Turkey,
• Agreement with the EFTA countries.

 

Central European Free Trade Agreement (CEFTA)

 

Agreement on Amendments of and Accession to the Central European Free Trade Agreement (“Official Gazette of the RS – International agreements”, No 88/07). The CEFTA is applied since 27 October 2007.

 

The Agreement was amended in accordance with the Protocol Accompanying the Agreement on Amendments and Accession to the Central European Free Trade Agreement (“Official Gazette of the RS – International agreements", No. 8/11). A further reduction of customs tariff rates was achieved for agricultural products. Preferential tariff rates on imports from Moldova and Albania were abolished and conditions for preferential imports from Croatia were changed.

 

CEFTA achieved full liberalization for industrial products. Regarding agricultural products, certain limitations still exist for imports originating in Croatia. Imports of agricultural products from all other CEFTA countries have been liberalized.

 

Interim agreement on trade and trade related matters with the EU

 

Interim agreement on trade and trade related matters with the EU (“Official Gazette of the RS – International agreements” No. 83/08, the Interim Agreement), signed in 2008, applies since 30 January 2009. 

 

Pursuant to the Interim agreement, the tariff rates that are applying in 2013 were agreed for the fifth year of liberalization. Fish from Annex V and processed agricultural products from Annex 2 of the Protocol l) are excluded.

 

The situation relating industrial products is the following:

• Industrial products outside the Annex 1 that are not sensitive and industrial products from the Annex 1a, are not liable to customs duties;
• On sensitive industrial products from Annex 1b the customs duty is 20% of basic tariff rate (MFN rate); 
• On particularly sensitive industrial products from Annex 1c, the customs duty is 40% of basic tariff rate.

Relating agricultural products, the dynamic is different for every Annex/Protocol. On agricultural products from Annex III, which are subject to reduction of customs duties at certain dynamics, apply the percentages relating to the basic rate of duty prescribed for the fifth year of liberalization. Specific is Annex IIIa, where all customs duties were abolished as from the beginning of the implementation of the Interim Trade Agreement, as well as Annex 1 of Protocol 2, which provides for duty-free import quota for certain wines.

 

On fish and fishery products from Annex V, the customs duties for 2013 and the following years are abolished, with only two exceptions. On processed agricultural products from Protocol 1, apply lower tariff rates from column relating to 2013 and the following years.

 

Free Trade Agreement with the Republic of Turkey

 

Free Trade Agreement with the Republic of Turkey (“Official Gazette of the RS – International agreements” No. 105/09) is in effect since 1 September 2010. In 2013, its application is in accordance with the dynamic prescribed for the fourth year of liberalization. 

 

This Agreement provides for the same preferential treatment for industrial products as the Interim Trade Agreement with the EU. Excepted are certain products laid down in the list of exceptions. The Agreement is asymmetric in favor of the Serbian part. Turkish custom duties for imports of industrial products from Serbia were abolished as of the date of entering into force of the Agreement. In 2013, the following preferential custom tariffs apply:

• industrial products outside the Annex II that are not sensitive and industrial products from the Annex IIa are not liable to customs duties,
• on sensitive industrial products from Annex IIb, the customs duty is 40% of basic tariff rate (MFN rate),
• on particularly sensitive industrial products from Annex IIc, the customs duty is 55% of basic tariff rate.

Relating agricultural products the Agreement does not provide for gradual yearly reduction of tariff rates. Agricultural products originating in Turkey are imported in the Republic of Serbia according to the conditions from Annex 1 of the Protocol on agricultural product accompanying the FTA with Turkey.

 

It means that a limited number of agricultural products are subject to tariff quota, and that all other agricultural products not listed in this Annex are liable to tariffs and other customs duties in a full amount.

 

Agreement with the EFTA states

 

Free Trade Agreement with the EFTA states (Republic of Iceland, Principality of Liechtenstein, Kingdom of Norway, and Switzerland Confederation applies for the Republic of Serbia, the Switzerland Confederation and the Principality of Liechtenstein since 1 October 2010. Relating to the Kingdom of Norway, it is applicable since 1 June 2011 and for the Republic of Iceland since 1 October 2011.

 

Relating industrial products, the Agreement is asymmetric in favor of the Serbian part. EFTA states abolished the customs duties on industrial products imported from Serbia as of the date of entering into force of the Agreement. Preferential tariff rates that Serbia applies on imports of industrial products from EFTA states are on the level applicable to imports from the EU. It means the following:

• Industrial products that are not sensitive (outside the Annex III) and sensitive industrial products from Annex IIIa, are not liable to customs duties in 2012; (Autor ? ažurirati)
• Sensitive industrial products  from Annex IIIb are liable to customs duties of 20% of basic duty, and
• Particularly sensitive industrial products from Annex IIIc are liable to customs duty of 40% from basic duty.

Relating agricultural products, all agreements with individual EFTA states provide for equal treatment of processed agricultural products (Protocol A), fish and fishery products (Annex II). Basic agricultural products were the subject of bilateral negotiations between Serbia and each of the EFTA states. In 2o12, preferential customs rates for agricultural products originating in EFTA states did not changed in relation to 2011, except for fish and fishery products laid down in Annex II, table 3.