Blended with the EU Customs Code, Serbia’s new customs regulation was authorized in 2018 and came full circle on June 17, 2019. This modernization presented a solidified, paperless customs clearing system with the objective of smoothing out customs tasks. Notably, the items’ total length under temporary importation was extended to 10 years, and the deadline for placing them in temporary storage was extended from twenty to ninety days. Serbia’s continuous attempts to bring its customs processes into compliance with EU norms are reflected in these modifications, which will improve trade operations’ effectiveness and openness.
Customs charges and levies
Customs taxes in Serbia are mostly ad valorem, which means they are determined as a proportion of the imported items’ worth. Most products fall below 30%, with percentages ranging from 0% to 57.6%. Particularly, cigarettes containing tobacco have the greatest rate, which is at 57.6%. In order to facilitate the categorization of commodities and the calculation of relevant tariff rates, the Serbian Customs Tariff is designed to conform to international standards. Businesses find the import process simpler to handle thanks to this approach, which guarantees uniformity and openness in the assessment of import tariffs.
Free trade agreements and preferential tariffs
In order to provide favorable customs tax rates for products coming from partner nations, Serbia has created a number of free trade agreements (FTAs). These contract types consist of:
EU
With specific agricultural items as an exemption, Serbia has disposed of and deliberately eliminated taxes on most of products imported from EU part states. This is done under the details of the Stabilization and Association Agreement with the EU.
CEFTA
Members of the Central European Free Trade Agreement (CEFTA), which incorporates Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, and Kosovo, are allowed to uninhibitedly trade items with each other. Serbia is one of these nations.
EFTA
Particular admittance to the business sectors of Switzerland, Norway, and Iceland is allowed by the European Free Trade Association (EFTA), which Serbia joined in 2009.
Russia and Turkey
Starting around 2000 and 2010, individually, Serbia has had international alliances with Russia and Turkey that contain great duties for specific products.
China
Serbia promoted its business relations with China in October 2023 by consenting to a free trade agreement.
By providing preferential treatment for a variety of items and lowering trade obstacles, these accords make Serbia a desirable market for foreign businesses.
Estimating import taxes
Using the Cost, Insurance, and Freight (CIF) approach, Serbia determines import tariffs. In other words, the duty is determined by the whole value of the imported items, which includes the price of the products, transportation, and insurance. Furthermore, the whole value—which comprises the CIF value plus any relevant customs duties—is subject to Value Added Tax, or VAT. It is crucial to remember that the total cost of importing products into Serbia may be increased by customs brokerage costs. For businesses to be profitable while trading internationally, these expenses should be properly planned for.
The excise duties
Apart from VAT and customs charges, Serbia also levies excise taxes on some products. These include natural gas, oil derivatives, alcoholic drinks, cigars, cigarillos, coffee, electricity, nicotine packs, and liquids used to fill electronic cigarettes. Contingent upon the item, excise duties might be a set total for each unit, a level of the worth, or a blend of the two. Since they hugely affect the cost of bringing in these things, these levies are particularly vital for organizations in the energy, liquor, and tobacco areas.
Temporary importation and customs procedures
Under some circumstances, such as for repairs, exhibits, or other distinct purposes, Serbia permits the temporary importation of products. In addition to increasing the overall term for temporary importation to 10 years, the new Customs Law has expanded the time that products may be kept in temporary storage from twenty to ninety days. Because it gives them more time to clear customs or utilize imported products without paying full customs charges, this flexibility is advantageous to companies involved in international commerce and logistics. The rules regulating temporary importation must be followed by importers in order to avoid fines.
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