Bosnia and Herzegovina’s application to join the EU is still under review, even so, there are several\u00a0benefits for UK businesses exporting there, including:<\/p>\n
- \n
- access to a market of 60 million people through Central European Free Trade Agreement<\/a> (CEFTA<\/abbr>)<\/li>\n
- in receipt of EU<\/abbr> pre-accession funds<\/a> (IPA) and funding from international financial institutions<\/li>\n
- preferential export regimes with a number of markets<\/li>\n
- import-dependent economy<\/li>\n<\/ul>\n
So if the Balkan nation looks like a good business opportunity, here’s everything you need to know about exporting to Bosnia and Herzegovina…<\/p>\n
<\/p>\n
The pros and cons of exporting to Bosnia and Herzegovina<\/h2>\n
If you’re looking to export to Bosnia and Herzegovina, there are several strengths of the market, such as:<\/p>\n
- \n
- stable currency arrangement fixing local currency to euro<\/li>\n
- reformed banking sector dominated by foreign banks<\/li>\n
- skilled workforce<\/li>\n
- abundance of natural resources<\/li>\n
- guaranteed free transfer of capital and free profit repatriation to foreign investors<\/li>\n
- good internet access<\/li>\n<\/ul>\n
It’s not without its challenges though, most notably:<\/p>\n
- \n
- bureaucracy<\/li>\n
- high taxation<\/li>\n
- complex legal and regulatory framework and weak judicial structures<\/li>\n
- lack of transparency in business procedures<\/li>\n
- enforcing contracts can take 595 days, according to the World Bank\u2019s Doing Business report for Bosnia and Herzegovina<\/a><\/li>\n
- ranks 72 out of 175 in the Corruption Perception Index<\/a><\/li>\n
- inadequate transport network<\/li>\n
- frequent policy changes<\/li>\n
- risk of natural disasters (flooding, earthquake)<\/li>\n<\/ul>\n
It’s also worth considering \u00a0Bosnia and Herzegovina is made up of:<\/p>\n
- \n
- Republic of Srpska<\/li>\n
- Federation of Bosnia and Herzegovina<\/li>\n
- Brcko District<\/li>\n<\/ul>\n
And there\u00a0is limited economic integration between the 3 entities, which can create difficulties for UK companies conducting business countrywide.<\/p>\n
Although English is widely spoken in the business community, it’s worth considering there are three languages officially spoken in Bosnia and Herzegovina – Bosnian, Croatian, and Serbian – and you should use the local language for introductory correspondence.<\/p>\n
And it’s worth setting up a conference call facility if you’re going to be doing business in the region, so here’s\u00a0How to set up a conference call between the UK and Bosnia and Herzegovina<\/a><\/em><\/p>\n
Tax and customs\u00a0in\u00a0Bosnia and Herzegovina<\/h2>\n
Tax<\/h3>\n
The UK and Yugoslavia previously signed a double taxation convention<\/a> which is still in effect in\u00a0Bosnia and Herzegovina. VAT is charged at a fixed rate of 17% and is applied to all goods and services, while excise duty is applied to beverages including beer, coffee and wine, tobacco, and oil derivatives.<\/p>\n
Corporation tax and personal income tax are both set at a rate of 10%.<\/p>\n
Customs<\/h3>\n
The Indirect Taxation Authority of Bosnia and Herzegovina<\/a> has responsibility for customs, and import tariffs have been eliminated for 23,000 products from the EU<\/abbr>. This will change if Bosnia and Herzegovina successfully becomes part of the EU.<\/p>\n
If you want to claim for any preferential duty rates, you’ll need to support your claim with an\u00a0EUR1 Movement Certificate<\/a>.<\/p>\n
- ranks 72 out of 175 in the Corruption Perception Index<\/a><\/li>\n
- in receipt of EU<\/abbr> pre-accession funds<\/a> (IPA) and funding from international financial institutions<\/li>\n
![\"\"](\"https:\/\/www.conferencecall.co.uk\/blog\/wp-content\/uploads\/2015\/05\/conference-call-banner.jpg\")
<\/p>\n","protected":false},"excerpt":{"rendered":"