Origin of goods is one of customs instruments affecting customs treatment of goods and amount of customs debt at importing goods. Preferential origin confers preferential treatment to goods being imported, which results in reduction or elimination of import duties (custom duties and charges having an equivalent effect) but also in reducing a tax base for part of the reduced or eliminated amount of customs debt.
Legal basis for preferential origin rules
1. Customs Law (“RS Official Gazette” no 18/10), Article 37.
2. Regulation on customs-approved treatment of goods (“RS Official Gazette” no 93/10), Articles 66-97.
3. Trade agreements concluded and implemented by the Republic of Serbia and other countries or groups of countries allowing for preferential tariff treatment (free trade agreements contain protocols on origin which are part of international agreement and specify requirements and rules for identifying origin of goods).
Free Trade Agreements
Free Trade Agreements implemented by the Republic of Serbia may be divided into two groups:
Agreements based on Pan-European rules on origin of goods:
Agreement on the amendment of and accession to the original Central European Free Trade Agreement – CEFTA 2006
on trade and trade-related matters between the European Community, of the one part, and the Republic of Serbia, of the other part;
Free Trade Agreement between the Republic of Serbia and the EFTA states
General requirements for obtaining originating status:
- Wholly obtained product;
Sufficiently worked or processed product (change of HS heading, value requirement, specific processes, combination of several specified criteria);
Cumulation of origin (bilateral and diagonal).
Proof of origin:
Certificates EUR. 1, EUR.1 C (CEFTA) and EUR-MED;
Declaration given by the exporter on an invoice or other document;
Declaration made out by an approved exporter, status of “approved exporter”;
Agreement with states of Customs Union between Russia, Belarus and Kazakhstan:
Free Trade Agreement with the Russian Federation;
Free Trade Agreement with the Republic of Belarus;
Free Trade Agreement with the Republic of Kazakhstan;
General requirements for acquiring originating status:
Wholly obtained product;
Sufficiently worked or processed product (product where non-originating material does not exceed 50% of ex-works price);
Cumulation in CU context (materials originating from CU member states and Serbia are not considered as non-originating in sufficiently worked or processed product);
Proof of origin:
- Certificates Form A, Form ST-2 and Certificate of origin ASB.1;
- Declaration of origin, for small value consignments;
Rules on non-preferential origin of goods are used for determination of the origin of goods in order to implement various trade policy measures, tariff quotas, marking the product with ''MADE IN'', etc. Such origin of goods does not confer any economic effect in terms of reducing or eliminating customs duties, but specifies where the product originated and where it is from.
Legal basis for rules on non-preferential origin
1. Customs Law (“RS Official Gazette” no 18/10), Articles 32-36.
2. Regulation on customs-approved treatment of goods (“RS Official Gazette” no 93/10), Articles 41-64.
3. Agreement between European Community and the Republic of Serbia on trade in textile goods.
Requirements for acquiring origin
Product wholly obtained in a single country;
Produced in the country where the last substantial, economically justifiable working or processing was performed, resulting in a new product or representing an essential production phase
Rules on non-preferential origin apply to:
Textile and textile articles falling within Section XI. of Customs Tariff Nomenclature;
Products other than textile and textile articles falling within Section XI. of Customs Tariff Nomenclature;
Proof of origin:
Certificate of national origin (Chamber of Commerce)
Certificate of origin of goods (Customs Administration for textile products under the agreement with the EC)
Liberalisation of the market and creation of steadily larger zones of free trade calls for the number of non-tariff measures to be minimised. Quantitative restrictions are maintained in the part called for and necessitated by the policy of protection of important economic and social resources. With regard to customs policy under the competences of the Customs Administration, customs quotas are quantitative restrictions on importing and exporting goods resulting from achieving appropriate balance between protection polices and economic needs for further opening of internal markets.
Tariff quotas under Free Trade Agreements
Free trade agreements may contain quantitative restrictions that apply to imports of specific types of goods under preferential regime. In such case, preferential tariff measures will apply to imports of goods under a specific FTA, subject to approved and available tariff quotas, while after meeting the prescribed quantities for imports of such goods, general regime will apply (erga omnes).
Request to benefit of a tariff quota is incorporated in declaration for release the goods for free circulation. The Customs Administration allocates quotas on the basis of the date of acceptance of the relevant declaration for release for free circulation, and to the extent that the balance of the relevant tariff quota so permits. Priority shall be established in accordance with chronological order of dates of acceptance of declarations. Declarations accepted on the same date are deemed as submitted at the same time. If the quantities requested for drawing from a tariff quota are greater than the balance available, allocation shall be made on a pro rate basis with respect to the requested quantities.
Tariff quota shall be considered as critical as soon as 90% of the initial volume has been used, or when the Customs Administration finds it so. Tariff quota management is governed by provisions of Articles 258 – 260 of the Regulation on Customs Approved Treatment of Goods (“Official Gazette of the RS”, No 93/10).
Tariff quotas are provided under the following agreements:
Department for the Origin of the Goods
Blv. Zorana Djindjica no.155a 11070 Belgrad
tel/fax (+38111)267-1773, (+38111)260-6073