WTO status and membership in other trade associations
At the 8th WTO Ministerial Conference was held in Geneva on 17th December 2011 approved accession of Montenegro to the WTO. Montenegrin Parliament adopted the Law on Ratification of the Protocol on the Accession of Montenegro to the Marrakesh Agreement Establishing the World Trade Organization on 27 February 2012, and the instrument of ratification was submitted to the WTO on 30 March 2012. Montenegro become a fully-fledged member of WTO on 29 April 2012.
Application of the Stabilisation and Association Agreement between the European Community and Montenegro, the Free Trade Agreement CEFTA 2006 and other agreements (Russian Federation, Turkey, EFTA, Ukraine), as well as recently membership of Montenegro into the World Trade Organization contribute to the fairly liberalized export-import regime of Montenegro.
Laws and regulations
Foreign trade regime is regulated by the Law on Foreign Trade and the Decree for the implementation of the Law on foreign trade.
The Law on Foreign Trade in Arms, Military Equipment and Dual-Use Goods regulates the conditions under which it is possible to trade in weapons, military equipment and dual-use goods due to the realization and protection of defense, security and foreign policy interests of Montenegro. Trade in these goods may only be made by a person registered in the Ministry of Economy and licensed to conduct foreign trade in controlled goods.
The Directorate for Multilateral and Regional Trade Cooperation and Economic Foreign Relations of the Ministry of Economy is responsible for defining, implementing and organizing trade policy measures.
Pursuant to the Law on Foreign Trade, foreign trade in goods is free and can be restricted only under the special conditions prescribed by this Law. Any person can deal with export in accordance with the regulations governing the performance of a particular activity. Exporters of goods which is subject to licensing for performing activities are obliged to fulfill the conditions of registration in accordance with the Law on Tobacco, the Law on Medicines, Law on the Production and Trade of Narcotic Drugs and Law on Chemicals.
Customs duties on exports are not applied in Montenegro, nor is it prohibited to export certain goods. Exceptionally, the Government may only impose a quantitative restrictions on exports:
- in the event of a critical shortage of essential products in Montenegro or the need to eliminate the consequences of such a shortfall;
Goods imported into the customs territory of Montenegro shall be subject to customs duty at rates and amounts determined by the Law on Customs Tariffs. Customs are charged in two ways:
- in the percentage rate in relation to the value of the goods (ad valorem) and
For a part of agri-food products, a combined customs duties, i.e. at the same time, ad valorem and specific customs duties are charged. Ad valorem customs duties are prescribed in the range from 0% to 30%. The specific duty varies from 0.04 € per 1 kg to 1 € per 1 kg.
The rates of customs duties prescribed by international agreements apply only to goods with preferential origin from the countries covered by the agreement.
The Customs Tariff of Montenegro recognizes only the customs quantitative quotas for certain agri-food products, as defined by the Stabilization and Association Agreement between the EU and Montenegro and the Free Trade Agreement between Montenegro and the Republic of Turkey.
Alcohol and alcoholic beverages, tobacco, carbonated water as well as mineral oils, their derivatives and substitutes are subject to excise tax collection in accordance with the Law on Excise Taxes. Excise taxes are charged on import. From February 27, 2015, payment of the tax on coffee is introduced in accordance with the Law on Tax on Coffee. Value added tax is charged on import and domestic goods at the rate of 21% and 7%. The obligation to pay VAT on importation occurs simultaneously with the obligation to pay customs duties and other import duties.
VAT on goods temporarily exported for further processing, repairs or installation is determined upon return according to the value added in the foreign country and the material used for the said purposes. Exemption from payment of VAT equally applies to both, imported and domestic goods. Temporarily imported goods are exempt from payment of VAT, provided that they are also exempt from payment of customs duty under customs regulations. For goods that are exempted from paying VAT and subsequently put into free circulation, VAT is calculated (in the same amount that would have to be calculated when importing such goods).
|Ministry of Economy|
Rimski trg 46
Tel.: +382 20 482 119
Fax. +382 20 234 027