Tax & Legal Alert Serbia • Issue 15 • April 2009

Indirect Taxation

Serbia

Free Trade Agreement between

Belarus and Serbia started to
apply immediately upon signing.

For more information, contact Veljko

Vukovic or Nebojsa Jovanovic.

Contacts:
Free Trade Agreement between
Peter Burnie
Partner Belarus and Serbia applies as of
peter.burnie@rs.pwc.com
Tel: + 381 11 33 02 100 31 March 2009
Jovana Stojanovic
Senior Tax Manager Serbia and Belarus signed the Free Trade Agreement (FTA)
jovana.stojanovic@rs.pwc.com
Tel: + 381 11 33 02 100 on 31 March 2009. Similarly as with FTA between Russia
and Serbia, FTA between Belarus and Serbia temporarily
Veljko Vukovic applies as of the date of signing, but will come into force
Tax Manager
veljko.vukovic@rs.pwc.com after being ratified in both countries. The signing of the FTA
Tel: + 381 11 33 02 100 was followed by the circular letter from the Customs Head
Office to inform customs officers on the date from and
Nebojsa Jovanovic
Senior Tax Consultant instruct on the way how this FTA should be applied.
nebojsa.jovanovic@rs.pwc.com
Tel: + 381 11 33 02 100 FTA provides that most of the goods originating in either of
two countries are relieved from customs duties on import.
Customs duties on a handful of products will remain
chargeable both in Serbia and in Belarus, such as on white
PricewaterhouseCoopers sugar, ethyl alcohol, spirits, liqueurs and other spirituous
Omladinskih Brigada 88a beverages, cigarettes and other tobacco products, retreaded
11070 Belgrade tires and used pneumatic tires, used road tractors for semi-
Tel: + 381 11 33 02 100
trailers, used agricultural tractors, used buses, used
www.pwc.com/yu passenger cars and used vehicles for transport of goods.
This Tax & Legal Alert is produced by
PricewaterhouseCoopers’ tax department in co-operation
with Milovanovic & Associates, a Law Firm associated
with PricewaterhouseCoopers.

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 Only Serbia decided to preserve customs duties on following products
originating in Belarus: petroleum oils and oils obtained from bituminous
minerals, crude and other than crude including e.g. white spirit, motor
spirit, jet fuels, fuel oils, lubricating oils, waste oils, then gases like
propane, butanes, ethylene, propylene, butylene, butadiene and other,
petroleum jelly, paraffin wax, microcrystalline petroleum wax, slack wax,
ozokerite, lignite wax, peat wax, other mineral waxes and similar
products, petroleum cokes, petroleum bitumen and other residues,
benzene, toluene and xylenes.

According to the FTA goods can acquire preferential origin either if they
are wholly obtained or sufficiently worked or processed. Again, similarly
as the case is with FTA between Russia and Serbia, the FTA in
question provides for quite simplified mechanism for acquiring
preferential origin regarding sufficient working or processing. In
principle, goods can acquire preferential origin if the value of all non-
originating materials used in the production does not exceed 50% of the
EXW value of the product for which preferential origin is claimed.

Proof of origin is certificate ASB.1 or Invoice Declaration. The latter can

be made by any exporter for shipment with the value not exceeding
USD 5,000. This does not apply on importation of goods by natural
persons, when origin will be determined in accordance with local
legislation.

FTA between Serbia and Belarus provides for bilateral cumulation of

origin, defines what is considered as insufficient working or processing,
defines territoriality principle and direct transport requirement. The
validity of proofs of origin is four months after issuance.

Along with FTA already in place with Russia, the FTA with Belarus
presents an opportunity for increasing the presence of Serbian
originating goods on these markets. It is a significant regional
advantage for Serbia, important in efforts to draw-in fresh capital from
foreign investors looking for doing business in this region.

Should you need additional information or assistance with the above, feel free
to contact Veljko Vukovic or Nebojsa Jovanovic from our Customs Group.

Tax & Legal Alert

Serbia • Issue 15• April 2009

Legal Disclaimer: The material contained in this alert is

provided for general information purposes only and does
not contain a comprehensive analysis of each item
described. Before taking (or not taking) any action, readers
should seek professional advice specific to their situation.
No liability is accepted for acts or omissions taken in
reliance upon the contents of this alert.

© 2009 PricewaterhouseCoopers Consulting d.o.o. All

rights reserved. “PricewaterhouseCoopers” refers to the
Serbian firm of PricewaterhouseCoopers Consulting d.o.o.
or, as the context requires, the network of member firms of
PricewaterhouseCoopers International Limited, each of
which is a separate and independent legal entity.

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