Laws and regulations
Outward processing procedure is regulated by the Customs Law of the Republic of Serbia and its implementing regulations (Regulation on Customs Approved Treatment of Goods, the Rulebook on Form, Content, Manner of Submitting and Completing Declaration and Other Forms Used in the Customs Procedure).
Subject and procedure
Outward processing is a customs procedure where the goods are temporarily exported from the customs territory of the Republic of Serbia for the purpose of processing. Products obtained in the outward processing procedure may be released into free circulation with full or partial relief from the payment of import duties. It should be noted that the goods temporarily exported for outward processing are subject to trade policy measures and other formalities applicable on exports of domestic goods from the Republic of Serbia.
Processing of goods means their treatment, including their installation, assembly and incorporation into other goods, repairs of goods, including their restoration and bringing into proper order, as well as use of specific goods not contained in compensating products, but enabling or facilitating production of compensating products, even if they are partially or fully used in the production process.
The outward processing procedure is not allowed for the domestic goods:
1) exporting of which results in the right to import duty drawback or discharge;
2) that were, prior to exportation, placed into free circulation with zero import duties due to being used for special purposes, for as long as the requirements for approval of such zero duties apply, unless the processing relates to repair;
3) exporting of which results in the right to receive export compensation or other financial benefits for export under agricultural policy measures.
Domestic goods declared for outward processing remain under customs surveillance from the day the declaration is accepted until they leave the customs territory of Serbia, are destroyed, or the declaration is rendered invalid.
Authorization, documents used during outward processing
The customs authority issues approval for outward processing based on the application submitted by the person organizing such outward processing. Therefore, outward processing must be approved and re-import of compensating products must be carried out within the period approved by the customs authority.
In addition, the goods to undergo outward processing procedure must be covered by the declaration for such customs procedure, which is submitted to the customs authority. The form and content, manner of submitting and filling in of the declaration and of other forms used in the customs procedure are regulated by the Rulebook on Form, Content, Manner of Submitting and Completing Declaration and Other Forms Used in the Customs Procedure.
Period for re-import of compensating goods
Re-import of compensating products must be carried out within the period approved by the customs authority. This period may be extended subject to the timely and justified request of the approval holder.
Systems/methods used for calculation of import duties
When re-importing compensating products, the amount of import duties is determined by subtracting the amount of import duties that would have been calculated on that same day, and subject to applicable regulations on the day of accepting the outward processing declaration, for temporarily exported goods if they had been imported from the processing country, from the amount of import duties calculated for compensating products that are released into free circulation.
Under outward processing procedure, the Law provides for a special institute of outward processing with standard replacement system, which practically means that under outward processing procedure the compensating product may be replaced by an imported product which must be classified under the same tariff code, be of the same quality and have the same technical characteristics as the compensating product. In addition, in order to facilitate the procedure as well as commercial operations, the customs authority may approve that a replacement product is imported prior to temporary exportation of goods. In case of standard replacement, the goods must be temporarily exported at the latest within 2 months from the time of accepting the declaration for releasing replacement products into free circulation.
In case of prior imports of replacement products, the customs debt will be calculated by applying the same mechanism as in other cases of outward processing, whereby the deductible amount is determined based on the calculation elements applicable for temporarily exported goods on the day of acceptance of declaration for placing the goods in the outward processing procedure.
Customs Administration of the Republic of Serbia:
Bulevar Zorana Đinđića 155a, 11070 Novi Beograd, Serbia
Phone: +381 11 2015 800, +381 11 311 7272, +381 11 3196 117