Bosnia and Herzegovina Import Tax

Bosnia and Herzegovina, located in Southeast Europe, maintains a structured customs tariff system that regulates imports and generates revenue while protecting its domestic industries. As a member of the Central European Free Trade Agreement (CEFTA) and a signatory to the Stabilisation and Association Agreement (SAA) with the European Union, the country has integrated its trade policies within regional and European frameworks. Bosnia and Herzegovina’s tariff system is designed to balance the promotion of trade with safeguarding local industries, and tariffs vary depending on the type of product and its country of origin. In addition to standard tariffs, special duties apply to imports from certain non-preferential trade countries.

Bosnia and Herzegovina Import Tax


Custom Tariff Rates by Product Category in Bosnia and Herzegovina

1. Agricultural Products

Agriculture plays a key role in Bosnia and Herzegovina’s economy, and the government applies various tariffs on agricultural imports to protect local farmers while ensuring access to essential foodstuffs. The country imports a variety of agricultural products, including cereals, fruits, vegetables, and livestock.

1.1 Basic Agricultural Products

  • Cereals and Grains: Bosnia and Herzegovina imports significant quantities of cereals such as wheat, maize, and barley. Tariffs on these products vary depending on market needs.
    • Wheat and maize: Import tariffs generally range from 5% to 10%.
    • Rice: Imported rice faces a tariff of 10%, though reduced tariffs may apply under certain trade agreements.
  • Fruits and Vegetables: Bosnia and Herzegovina imports many fruits and vegetables, especially during the off-season.
    • Citrus fruits (oranges, lemons): Subject to 5% to 10% tariffs.
    • Potatoes, tomatoes, and onions: Typically taxed at 10%, with variations based on local production.

1.2 Livestock and Dairy Products

  • Meat and Poultry: Meat imports face tariffs aimed at protecting the domestic livestock sector.
    • Beef and pork: Tariffs range from 15% to 20%.
    • Poultry (chicken, turkey): Generally taxed at 10% to 15%.
  • Fish and Seafood: Import duties on fish and seafood are generally lower to ensure a stable supply.
    • Fresh and frozen fish: Typically taxed at 5% to 10%.
  • Dairy Products: Dairy imports, such as milk, cheese, and butter, are subject to moderate tariffs.
    • Milk and milk powder: Generally taxed at 5%.
    • Cheese and butter: Tariffs range from 10% to 15%.

1.3 Special Import Duties

As a signatory to CEFTA and the SAA with the European Union, Bosnia and Herzegovina benefits from reduced or zero tariffs on agricultural imports from CEFTA member states and EU countries. Imports from non-preferential trade countries may be subject to higher tariffs.

2. Industrial Goods

Bosnia and Herzegovina imports a wide range of industrial goods to support its manufacturing and construction sectors. Tariffs on industrial products vary depending on whether they are finished goods or raw materials used for production.

2.1 Machinery and Equipment

  • Industrial Machinery: To support local industry, Bosnia and Herzegovina generally applies low tariffs on industrial machinery imports.
    • Construction machinery (excavators, bulldozers): Typically taxed at 1% to 5%.
    • Textile machinery and manufacturing equipment: Subject to tariffs ranging from 0% to 5%.
  • Electrical Equipment: Electrical machinery and equipment, such as generators and transformers, face tariffs ranging from 5% to 10%.

2.2 Motor Vehicles and Transportation

The automotive sector in Bosnia and Herzegovina imports most of its vehicles, both for personal and commercial use. The country imposes tariffs on these imports to protect its nascent automotive assembly industry.

  • Passenger Vehicles: Import tariffs on cars vary depending on the type of vehicle and engine size.
    • Small passenger vehicles (under 1,500cc): Typically taxed at 5% to 15%.
    • Luxury cars and SUVs: Higher tariffs of 20% to 30% may apply.
  • Commercial Vehicles: Trucks and buses used for trade and transportation are subject to 5% to 15% tariffs, depending on the vehicle’s purpose and size.
  • Vehicle Parts and Accessories: Import duties on automotive parts, such as engines, tires, and batteries, generally range from 5% to 15%.

2.3 Special Import Duties for Certain Countries

Bosnia and Herzegovina benefits from reduced tariffs on industrial goods imported from CEFTA member states and EU countries under the SAA. Goods from non-preferential trade countries, including China, Japan, and the United States, may face higher tariffs in comparison.

3. Textiles and Apparel

Textiles and apparel represent a significant portion of Bosnia and Herzegovina’s imports, especially from neighboring countries and Asia. The country applies tariffs on textile products to balance affordability for consumers and protection for local manufacturers.

3.1 Raw Materials

  • Textile Fibers and Yarn: Bosnia and Herzegovina imports raw materials such as cotton, wool, and synthetic fibers, with low tariffs (0% to 5%) to encourage local garment manufacturing.
    • Cotton and wool: Generally taxed at 3% to 5%.
    • Synthetic fibers: Typically face tariffs of 5% to 10%.

3.2 Finished Clothing and Apparel

  • Clothing and Apparel: Imported finished garments are subject to moderate tariffs to protect local manufacturers.
    • Casual wear and everyday clothing: Typically taxed at 10% to 15%.
    • Luxury and branded apparel: Tariffs range from 15% to 25%.
  • Footwear: Imported footwear generally faces tariffs ranging from 10% to 20%, depending on the type and material of the shoe.

3.3 Special Import Duties

Textile and apparel imports from EU countries and CEFTA members benefit from zero tariffs under preferential trade agreements. Imports from other countries, such as China and India, are subject to standard tariff rates outlined in Bosnia and Herzegovina’s tariff schedule.

4. Consumer Goods

Bosnia and Herzegovina imports a broad range of consumer goods, including electronics, household items, and furniture. The country applies tariffs on these goods to protect local producers and ensure access to essential products.

4.1 Electronics and Home Appliances

  • Household Appliances: Import tariffs on large household appliances such as refrigerators, washing machines, and air conditioners vary depending on the type of appliance.
    • Refrigerators and freezers: Typically taxed at 10% to 20%.
    • Washing machines and air conditioners: Subject to tariffs ranging from 10% to 15%.
  • Consumer Electronics: Electronics such as televisions, smartphones, and laptops generally face tariffs of 5% to 15%.
    • Televisions: Typically taxed at 10%.
    • Smartphones and laptops: Subject to tariffs of 5% to 10%.

4.2 Furniture and Furnishings

  • Furniture: Imported furniture, including home and office furnishings, is subject to tariffs ranging from 10% to 20%.
    • Wooden furniture: Typically taxed at 15% to 20%.
    • Plastic and metal furniture: Generally subject to tariffs of 10% to 15%.
  • Home Furnishings: Items such as carpets, curtains, and home décor products are typically taxed at 10% to 15%.

4.3 Special Import Duties

Consumer goods imported from EU countries and CEFTA member states benefit from zero or reduced tariffs. Imports from countries outside of these preferential agreements are subject to Bosnia and Herzegovina’s standard tariff rates.

5. Energy and Petroleum Products

Bosnia and Herzegovina imports most of its energy needs, including petroleum products, from neighboring countries and beyond. Tariffs on energy products are designed to balance affordability with the need for government revenue.

5.1 Petroleum Products

  • Crude Oil and Gasoline: Tariffs on petroleum imports, including crude oil and gasoline, are typically low to maintain affordable energy prices. Tariffs generally range from 0% to 5%.
  • Diesel and Other Refined Petroleum Products: Refined petroleum products, such as diesel and aviation fuel, are subject to low tariffs of 0% to 5%, depending on the source and intended use.

5.2 Renewable Energy Equipment

  • Solar Panels and Wind Turbines: Bosnia and Herzegovina supports the growth of renewable energy by applying zero or low tariffs on equipment used in renewable energy projects, such as solar panels and wind turbines.

6. Pharmaceuticals and Medical Equipment

Ensuring access to affordable healthcare is a priority for Bosnia and Herzegovina, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure affordability and availability.

6.1 Pharmaceuticals

  • Medicines: Essential medicines, including life-saving drugs, are generally subject to zero or low tariffs (0% to 5%) to ensure affordability. Non-essential pharmaceutical products may face tariffs of 5% to 10%.

6.2 Medical Devices

  • Medical Equipment: Medical devices such as diagnostic tools, surgical instruments, and hospital beds are typically subject to zero or low tariffs (0% to 5%) to support the healthcare sector.

7. Special Import Duties and Exemptions

Bosnia and Herzegovina’s customs tariff system includes special duties and exemptions based on trade agreements and the country of origin of the imported goods.

7.1 Special Duties for Non-EU and Non-CEFTA Countries

Imports from non-EU and non-CEFTA countries, such as China, the United States, and Japan, are subject to the standard customs tariffs outlined in Bosnia and Herzegovina’s tariff schedule. These goods may face higher tariffs compared to imports from preferential trade countries.

7.2 Bilateral and Multilateral Agreements

  • Central European Free Trade Agreement (CEFTA): Bosnia and Herzegovina benefits from zero tariffs on goods traded with other CEFTA members, including Serbia, North Macedonia, Albania, and Kosovo.
  • Stabilisation and Association Agreement (SAA) with the European Union: The SAA provides duty-free access for most goods imported from EU countries. In return, Bosnia and Herzegovina enjoys preferential access to EU markets for its exports.
  • Generalized System of Preferences (GSP): Bosnia and Herzegovina benefits from reduced tariffs on certain goods imported from developing countries under the GSP scheme, promoting trade with developing economies.

Country Facts

  • Official Name: Bosnia and Herzegovina
  • Capital City: Sarajevo
  • Largest Cities:
    • Sarajevo (Capital and largest city)
    • Banja Luka
    • Tuzla
  • Per Capita Income: Approx. $6,000 USD (2023 estimate)
  • Population: Approx. 3.2 million (2023 estimate)
  • Official Languages: Bosnian, Serbian, Croatian
  • Currency: Convertible Mark (BAM)
  • Location: Bosnia and Herzegovina is located in Southeast Europe, bordered by Croatia to the north and west, Serbia to the east, Montenegro to the southeast, and the Adriatic Sea to the southwest.

Geography of Bosnia and Herzegovina

Bosnia and Herzegovina is a mountainous country covering an area of 51,197 square kilometers. The country features a diverse landscape, ranging from dense forests and mountain ranges to river valleys and a small coastline on the Adriatic Sea.

  • Mountains: The Dinaric Alps dominate much of the country, with Maglić (2,386 meters) being the highest peak.
  • Rivers: Major rivers include the Sava, Drina, Neretva, and Una, which are vital for the country’s energy generation and agriculture.
  • Climate: Bosnia and Herzegovina has a continental climate in the north and central regions, with hot summers and cold winters, and a Mediterranean climate along the Adriatic coastline.

Economy of Bosnia and Herzegovina

Bosnia and Herzegovina’s economy is categorized as upper-middle income, with a mix of industry, agriculture, and services. The country is still recovering from the aftermath of the 1990s conflict, and its economy is steadily growing, thanks to trade liberalization, industrial development, and foreign investment.

1. Manufacturing and Industry

The manufacturing sector is vital to Bosnia and Herzegovina’s economy, with industries such as automobile parts, machinery, chemicals, and metal processing playing key roles. Textile manufacturing and wood processing are also important export industries.

2. Agriculture

Agriculture remains an essential part of the economy, employing a significant portion of the rural population. The country produces wheat, maize, fruits, and vegetables, and is known for its dairy products and livestock farming.

3. Tourism and Services

Tourism is a growing sector, with Bosnia and Herzegovina attracting visitors to its historic cities, natural parks, and ski resorts. Sarajevo, in particular, is known for its cultural heritage and role as a meeting point between East and West.

4. Energy and Hydropower

Bosnia and Herzegovina is rich in natural resources and is a significant exporter of electricity, particularly hydropower. The country is looking to expand its renewable energy sector, with investments in wind farms and solar energy projects.

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