Laws and regulations
The customs procedure of inward processing is regulated by:
Inward processing procedure is the procedure whereby goods are imported into a BiH customs territory and then re-exported in the form of compensating products.
This procedure shall be approved to the person, fully or partially conducting procedure of processing or person organizing procurement, sales and production of goods being processed.
Procedure of inward processing can be approved by the system of withholding of payment or system of duty refund. The request for approval of the procedure shall be filed to the authorized regional center of the Department for Customs in accordance with the place of registration on the form from Annex 43 of the Decision, containing the explanations for completing the form.
When clearing the goods i.e. at re-export, besides customs declaration and authorization on procedure of inward processing it is required to enclose all other supporting documents as for the regular export procedure (invoice, proof of origin, permits etc.).
The authorization, issued by ITA, Department of Customs, shall be issued for the maximum period of three (3) years. The goods cannot be imported based on this procedure without having previously obtained authorization.
Period for export or re-export of obtained goods
The period and the due date for re-export (clearing of goods) is set in the authorization as explained above.
Systems/methods used for calculation of import duties
The method is described in the above mentioned Instruction on customs procedure of inward processing published by the ITA.
Documents, certificates, used during inward processing
With the request it is required to enclose: evidence of activity registration, contract (in case of Lohn business), normative of production, as well as other documents that are listed in the request. Furthermore, it is required to enclose a certificate of economic justification issued by the Foreign Trade Chamber of BiH. The period for issuing of the decision on request is 30 days from the day of receipt of completed request.
Depending on working process, the products can become goods of BiH origin but it is required to bear in mind the “no-drawback” rule when in certain cases the refund for customs duties cannot be obtained for goods that are not BiH goods and is installed into the compensating products. As far as the cumulation rules are concerned, the “no-drawback” rule is valid for all free trade agreements signed by BiH so far. (For further information please see the link on Origin).
Indirect Tax Authority BiH: