Montenegro Import Tax

Montenegro, a small country located on the Adriatic coast of Southeast Europe, is known for its picturesque landscapes, rich history, and strategic location at the crossroads of Western and Eastern Europe. Since gaining independence in 2006, Montenegro has developed a relatively open and liberalized economy, which relies significantly on international trade. The country’s tariff system is a vital part of its economic framework, facilitating imports that support its growing sectors such as tourism, energy, manufacturing, and agriculture.

Montenegro is a member of several international organizations, including the World Trade Organization (WTO), and it also has a Stabilization and Association Agreement (SAA) with the European Union (EU), which grants preferential trade access between the two parties. In addition to EU-mandated tariffs, Montenegro applies its own customs and tariff regulations, which vary depending on the type of goods being imported and the country of origin.

Customs Tariff Rates for Products Imported to Montenegro

Montenegro operates a customs tariff system that is aligned with European Union (EU) regulations, as part of the country’s commitment to EU integration. The tariff rates are determined based on the Harmonized System (HS) Code, which classifies products according to their nature. Import duties are imposed on goods imported from countries outside the EU, while imports from EU member states enjoy preferential tariff treatment due to the SAA between Montenegro and the EU.

1. Agricultural Products

Agriculture is an important sector in Montenegro, although the country imports a significant portion of its agricultural products. Tariff rates on agricultural goods vary depending on the product category and the country of origin. Agricultural products imported from EU member states typically enjoy reduced or zero tariffs, while those imported from non-EU countries are subject to standard tariffs.

Key Tariff Categories for Agricultural Products

• Cereals (HS Codes 1001-1008)
  • Wheat: 0% (preferential tariff for EU imports)
  • Rice: 10%
  • Corn: 5%
• Fruits (HS Codes 0801-0810)
  • Apples, Pears, and Citrus Fruits: 10% (standard tariff for non-EU countries)
  • Bananas: 15% (Most Favored Nation tariff)
  • Tropical Fruits (e.g., mangoes, papayas): 12-15%
• Vegetables (HS Codes 0701-0709)
  • Tomatoes: 5-10%
  • Potatoes: 5%
  • Peppers and Cucumbers: 5-10%
• Meat and Animal Products (HS Codes 0201-0209)
  • Beef: 15%
  • Poultry: 10%
  • Pork: 10%
  • Dairy Products: 10-15%

Special Import Duties for Agricultural Products

Montenegro applies special import duties for certain agricultural products based on its trade agreements and the country of origin:

• Imports from the European Union
  • Agricultural products such as fruits, vegetables, and meat imported from the EU enjoy preferential rates, often with zero tariffs. For example, EU imports of beef, chicken, and vegetables may benefit from reduced or zero tariff rates under the SAA.
• Imports from the Central European Free Trade Agreement (CEFTA) Countries
  • Montenegro is also a member of CEFTA, which grants preferential tariff rates for goods traded among CEFTA member states, including Serbia, Albania, and North Macedonia. This preferential treatment helps reduce the cost of agricultural imports from these countries.
• Imports from Third Countries (Non-EU/CEFTA)
  • Agricultural products from countries outside these agreements are subject to the standard Most Favored Nation (MFN) tariffs, which are generally higher. For example, rice imports from countries like India or Thailand are subject to a 10% duty.

2. Manufactured Goods and Industrial Products

Manufactured goods, ranging from machinery and electronics to chemicals and vehicles, constitute a large portion of Montenegro’s imports. These products play a vital role in the country’s economic activities, particularly in tourism, infrastructure development, and energy production.

Key Tariff Categories for Manufactured Goods

• Machinery and Electrical Equipment (HS Codes 84, 85)
  • Electrical Transformers: 5-10%
  • Generators: 5%
  • Computers and Data Processing Equipment: 5%
• Vehicles (HS Codes 8701-8716)
  • Passenger Vehicles: 10-15% (depending on engine size)
  • Commercial Vehicles: 10-15%
• Chemical Products (HS Codes 2801-2926)
  • Fertilizers: 5%
  • Pharmaceutical Products: 10%
  • Plastics and Polymers: 0-10%

Special Import Duties for Manufactured Goods

• Imports from the European Union
  • Manufactured goods from EU countries benefit from reduced or zero tariffs as a result of the SAA. For example, European-made machinery, vehicles, and electronics typically enter Montenegro duty-free or with lower tariffs.
• Imports from CEFTA Countries
  • As part of CEFTA, Montenegro offers reduced tariffs on manufactured goods imported from member states. This includes vehicles, machinery, and electronic equipment from countries like Serbia, Albania, and North Macedonia.
• Imports from Other Third Countries
  • Products from non-EU and non-CEFTA countries are subject to the MFN rates, which can be higher. For instance, vehicles imported from countries like Japan, South Korea, or the United States might attract a higher tariff compared to EU or CEFTA imports.

3. Consumer Goods

Consumer goods, including electronics, clothing, and household appliances, are essential for the Montenegrin market. As with other imported goods, the tariffs on consumer products depend largely on the origin of the goods and their classification under the Harmonized System.

Key Tariff Categories for Consumer Goods

• Electronics and Electrical Appliances (HS Codes 85, 84)
  • Smartphones: 10%
  • Laptops and Computers: 10%
  • Household Appliances (e.g., refrigerators, washing machines): 15%
• Clothing and Footwear (HS Codes 6101-6117, 6401-6406)
  • Garments: 10-20%
  • Shoes: 10-15%
• Household Items and Furniture (HS Codes 9401-9403)
  • Furniture: 15%
  • Kitchenware: 10%

Special Import Duties for Consumer Goods

• Imports from the European Union
  • Consumer goods such as clothing, electronics, and household appliances imported from EU countries benefit from reduced or zero tariffs under the SAA agreement. For example, electronics such as smartphones and laptops from EU countries might enter Montenegro duty-free.
• Imports from China and Other Non-EU Countries
  • China is a significant supplier of consumer goods to Montenegro, including electronics and clothing. These goods typically carry standard tariffs under the MFN rate. For instance, smartphones from China could be subject to a 10% tariff, while electronics may attract a 15% import duty.

4. Raw Materials and Energy Products

Energy imports are essential for Montenegro, as the country does not produce sufficient amounts of oil, natural gas, or coal to meet its domestic energy needs. The energy sector is thus highly reliant on imports, which are subject to specific tariff regulations.

Key Tariff Categories for Raw Materials and Energy Products

• Crude Oil and Petroleum Products (HS Codes 2709-2713)
  • Crude Oil: 0% (duty-free for energy security reasons)
  • Refined Petroleum Products: 10%
• Natural Gas (HS Codes 2711-2712)
  • Natural Gas: 0% (imported duty-free)
• Metals and Minerals (HS Codes 7201-7408)
  • Iron and Steel: 5-10%
  • Copper: 5-10%

Special Import Duties for Energy Products

• Imports from Russia and Other CIS Countries
  • Montenegro, like many other Balkan countries, has historically been reliant on Russia and other CIS countries for energy imports. Energy products such as natural gas and crude oil are typically imported duty-free, as part of the country’s energy security arrangements with Russia.

Country Facts

• Official Name: Montenegro
• Capital City: Podgorica
• Three Largest Cities:
  • Podgorica (capital)
  • Nikšić
  • Herceg Novi
• Per Capita Income: $8,000 (approximate, as of the latest estimates)
• Population: 622,000
• Official Language: Montenegrin (official), Serbian, Croatian, Bosnian, Albanian (recognized as minority languages)
• Currency: Euro (€)
• Location: Southeastern Europe, on the Adriatic coast, bordered by Croatia, Bosnia and Herzegovina, Serbia, Kosovo, and Albania

Geography, Economy, and Major Industries

Geography

Montenegro is a small, mountainous country situated on the Adriatic coast, bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east, and Albania to the southeast. The country has a rugged terrain, with steep mountains and a narrow coastal plain. The Bay of Kotor is one of the most distinctive geographical features of Montenegro, and the country’s coastline offers spectacular views of the Adriatic Sea. The climate is Mediterranean along the coast and continental inland, which makes the coastal region particularly popular for tourism.

Economy

Montenegro has a relatively small but growing economy, characterized by its reliance on services, particularly tourism. The country has made significant progress in developing its infrastructure, which supports sectors such as transportation, energy, and telecommunications. The Montenegrin economy is considered to be one of the fastest-growing in the Balkans, primarily due to tourism, which accounts for a significant portion of GDP.

The country’s trade policy is geared toward liberalizing the economy and facilitating integration with the EU and regional markets. Montenegro’s key exports include aluminum, electrical machinery, agricultural products, and tobacco. Imports mainly consist of machinery, transport equipment, fuel, and chemicals.

Major Industries

• Tourism: Montenegro is famous for its natural beauty, including pristine beaches, mountains, and historic towns. The tourism industry is one of the largest contributors to the country’s GDP, attracting millions of visitors annually.
• Energy: Montenegro has a growing energy sector, mainly based on hydroelectric power, and is seeking to diversify its energy sources. The country is a net importer of energy, particularly oil and natural gas.
• Aluminum Production: The country is home to a significant aluminum production sector, with the KAP aluminum plant being one of the largest industrial complexes.
• Agriculture: Agriculture plays a crucial role in Montenegro’s economy, with the country exporting fruits, vegetables, tobacco, and wine.