North Macedonia Import Tax

North Macedonia, a country located in the Balkans, is strategically positioned at the crossroads of Southeast Europe. As a member of the Central European Free Trade Agreement (CEFTA) and a candidate for European Union membership, North Macedonia’s customs and tariff system is aligned with international standards and gradually harmonized with EU regulations. The country’s trade policies, including tariff rates, are aimed at fostering economic growth, facilitating trade relations with regional and global partners, and promoting sustainable economic development.

The tariff rates applied on imports to North Macedonia are influenced by the product category, origin, and any special trade agreements the country has with its trading partners. While North Macedonia generally follows the tariff structures outlined by the World Trade Organization (WTO) and CEFTA, it also maintains special provisions for countries with which it has bilateral agreements, including preferential tariff rates for some countries, like the EU and Turkey.

Overview of Customs Tariff System in North Macedonia

North Macedonia’s customs tariff system is governed by the Customs Law and administered by the Customs Administration of North Macedonia. The tariff structure follows the Harmonized System (HS) codes, developed by the World Customs Organization (WCO), which classifies goods based on their nature and use. The country’s tariff structure includes various categories of duties, taxes, and other fees, including:

• Basic customs duties: These are the primary import duties imposed on goods entering North Macedonia from non-EU countries.
• Value-added tax (VAT): VAT is a separate tax imposed on most goods and services. For imports, VAT is levied at a standard rate of 18%. There are reduced VAT rates for certain goods, such as 5% for books, medicines, and some agricultural products.
• Excise duties: Certain products such as tobacco, alcohol, and fuel are subject to excise duties, which are in addition to customs duties and VAT.

North Macedonia has also entered into several preferential trade agreements, most notably with the European Union (EU) and Turkey, which offer reduced or zero duties on specific products from those countries.

Categories of Products and Their Associated Tariff Rates

The tariff rates for imports to North Macedonia vary by product category. Below is a breakdown of the most common categories of products and their respective tariff rates, as well as special import duties where applicable.

1. Agricultural Products

Agricultural products are a significant import category in North Macedonia, and the country’s tariff system reflects efforts to protect local agricultural production, while also ensuring the availability of various foodstuffs at competitive prices.

• Live animals: The tariff rate for live animals, including cattle, poultry, and other livestock, ranges from 0% to 15%, depending on the type of animal.
• Dairy products: Cheese, milk, and other dairy products are subject to tariffs ranging from 10% to 25%.
• Meat: Beef, pork, and poultry imports are taxed at rates ranging from 10% to 20%, with exceptions for certain low-cost imports from countries with free trade agreements (such as the EU and Turkey).
• Fruits and vegetables:
  • Fresh fruits and vegetables: Typically have a tariff range of 5% to 15% depending on the product.
  • Processed fruits: 5% to 10% tariffs.
• Cereals and grains: These items generally face lower tariffs, ranging from 0% to 10% depending on the type of grain or cereal.

2. Textiles and Apparel

North Macedonia is an important textile manufacturing hub in the region, and its tariff structure reflects both the need to protect domestic producers and the demand for imported textiles and clothing.

• Clothing: The tariff rates on imported clothing typically range from 5% to 15%.
• Textiles (not apparel): Rates for raw textiles such as cotton, wool, and synthetic fabrics typically range between 5% and 10%.
• Footwear: Imported footwear is subject to tariffs of around 10%.

Under the EU-North Macedonia Stabilization and Association Agreement (SAA), North Macedonia benefits from preferential tariff treatment on many textile and clothing products sourced from the EU.

3. Machinery and Electrical Equipment

Machinery and electrical equipment are critical to North Macedonia’s industrial sector. As a result, the tariff rates on these products are generally lower, as the country imports a significant amount of machinery for its manufacturing and infrastructure needs.

• Industrial machinery: These products are typically subject to low tariffs, ranging from 0% to 5%.
• Electrical equipment: Tariffs for electrical components like transformers, switches, and generators range from 0% to 5%.
• Consumer electronics: Goods such as smartphones, laptops, and televisions are subject to tariffs between 0% and 5%, with the possibility of exemptions under trade agreements with the EU.

4. Chemicals and Pharmaceuticals

Pharmaceuticals and chemicals play an important role in the Macedonian economy, particularly in the healthcare and industrial sectors. The tariff rates for these products are typically lower due to their essential nature.

• Pharmaceutical products: Generally exempt from duties or taxed at very low rates, ranging from 0% to 5%.
• Chemicals: Import duties for chemicals range from 0% to 5%, though some chemical compounds may be subject to higher tariffs based on their application or classification.
• Cosmetics and toiletries: These products are typically subject to tariffs of 5% to 10%.

5. Vehicles and Transport Equipment

As North Macedonia imports a significant amount of vehicles and transport equipment, these items are subject to specific duties designed to protect the domestic automotive sector while allowing for the entry of vehicles at competitive prices.

• Passenger cars: Tariffs on imported cars are generally around 10%, with some exceptions for vehicles from preferential countries such as Turkey and the EU.
• Motorcycles and bicycles: Typically subject to a 5% to 10% duty, depending on the product.
• Automobile parts: Spare parts and accessories for vehicles are subject to tariffs of 0% to 5%, with some parts benefitting from preferential treatment under trade agreements.

6. Metals and Minerals

Metals and minerals, essential to various industrial sectors such as construction, manufacturing, and electronics, are subject to a range of duties in North Macedonia.

• Iron and steel: Import duties on iron and steel products range from 0% to 5%, depending on the specific type of metal and its use.
• Aluminum: Import duties on aluminum and its products generally range from 0% to 5%.
• Precious metals: Gold, silver, and other precious metals are typically exempt from customs duties (0%).

Imports of these items from countries with which North Macedonia has free trade agreements may benefit from reduced tariffs or complete duty exemptions.

7. Consumer Goods

The importation of various consumer goods such as furniture, toys, and household appliances is subject to moderate tariff rates.

• Furniture: Furniture is generally subject to a tariff of 5% to 10%, depending on the material and design.
• Toys and games: Toys are typically taxed at a 5% to 10% rate.
• Household appliances: Import duties on appliances such as refrigerators, washing machines, and air conditioners range from 5% to 10%.

North Macedonia has preferential trade agreements with countries like Turkey and the EU, which offer reduced or zero duties for certain consumer goods.

Special Import Duties for Certain Products and Countries

1. Preferential Tariffs Under Bilateral Agreements

North Macedonia benefits from several preferential trade agreements, including:

• European Union Stabilization and Association Agreement (SAA): Goods from the EU are subject to preferential or zero customs duties in many categories, including machinery, textiles, chemicals, and foodstuffs.
• CEFTA: North Macedonia has preferential access to several other Balkan countries under CEFTA, which reduces tariffs on many products traded within the region.
• Turkey: Under the Free Trade Agreement (FTA) with Turkey, a wide range of goods (including textiles, machinery, and agricultural products) are subject to reduced or zero tariffs.

2. Anti-Dumping Duties

North Macedonia imposes anti-dumping duties on certain products that are imported at unfairly low prices and which harm domestic industries.

• Steel and iron: The country may apply anti-dumping duties on steel and iron products imported from countries like China or Russia.
• Solar panels: Anti-dumping duties may apply to solar panels imported from China under trade defense measures.

3. Excise Duties

Certain products are subject to excise duties in addition to customs duties. These include:

• Alcohol: Wines, spirits, and beer are subject to excise duties, with rates depending on the type of alcohol.
• Tobacco: Cigarettes, cigars, and tobacco products are subject to significant excise duties.
• Fuel: Gasoline and diesel fuel are subject to excise duties, impacting the cost of imports.

Country Facts

• Country Formal Name: Republic of North Macedonia
• Capital City: Skopje
• Three Largest Cities:
  • Skopje (Capital)
  • Bitola
  • Prilep
• Per Capita Income: $6,200 (as of 2023)
• Population: Approximately 2.1 million
• Official Language: Macedonian
• Currency: Macedonian Denar (MKD)
• Location: North Macedonia is a landlocked country located in Southeast Europe, bordered by Kosovo to the northwest, Serbia to the north, Bulgaria to the east, Greece to the south, and Albania to the west.

Geography, Economy, and Major Industries

Geography

North Macedonia is a landlocked country located in the central part of the Balkan Peninsula. The country has a diverse landscape characterized by mountains, valleys, and lakes. Major rivers, such as the Vardar, flow through the country, contributing to its agricultural and industrial output. The climate is Mediterranean, with hot, dry summers and mild winters, which is favorable for agriculture.

Economy

North Macedonia has a mixed economy, with a growing services sector, substantial industrial output, and an important agricultural base. The country has made significant progress in diversifying its economy and integrating into European and global markets.

Key sectors include:

• Agriculture: Agriculture plays a vital role, with products like tobacco, fruits, vegetables, and cereals being important exports.
• Industry: Key industries include manufacturing (particularly textiles, machinery, and chemicals), mining, and energy.
• Services: The services sector, particularly banking, tourism, and information technology, is growing rapidly.

Major Industries

• Agriculture: Tobacco, fruits, and vegetables.
• Manufacturing: Textiles, machinery, and chemicals.
• Mining: Extraction of lead, zinc, and other minerals.
• Energy: Hydroelectric power generation is a key part of the energy sector.