Legal regulations

Law on Foreign Investments (“Official Gazette of Republika Srpska”, No. 21/18) and Law on Foreign Direct Investment Policy of Bosnia and Herzegovina (“Official Gazette of BiH”, No. 17/98, 13/03, 48/10 and 22/ 15) guarantee state treatment of foreign investors, i.e. foreign investors enjoy the same rights and obligations as BiH residents. A state or its entities may not discriminate against foreign investors on any basis including, but not limited to, the foreign investor’s nationality, domicile/residence, religion or country of origin of the investment.

The property of foreign investors cannot be nationalized, expropriated or confiscated. However, in case of establishment of public interest, the ownership of foreign investors can be nationalized or expropriated, in which case foreign investors are guaranteed the right to fair compensation.

The Law on Customs Policies of Bosnia and Herzegovina regulates the main elements of the system for customs protection of the economy of Bosnia and Herzegovina, the rights and obligations of all subjects in procedures that include customs clearance of goods and customs inspection of passengers. Foreign investors may be exempted from import duties on goods included in free trade, which represent an investment by a foreign entity.

The signing of the Stabilization and Association Agreement enables the free export of almost all types of goods to the EU that meet the standards, and at the same time the BiH market is gradually opening up for goods from the EU in accordance with the dynamics agreed in the annexes and protocols that are part of the Agreement, which allows access to the market from approx. 450 million people.

Bosnia and Herzegovina signed the CEFTA agreement with the following countries: the Republic of Albania, the Republic of Bulgaria, the Republic of Croatia, the Republic of Macedonia, the Republic of Moldova, the Republic of Montenegro, Romania, the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo on behalf of Kosovo, in accordance with the Resolution 1244 of the Security Council of the United Nations. The CEFTA Agreement replaces and complements existing free trade agreements with certain countries in the region. This enables transparency and rules of the game comparable to EU standards, as well as access to a market of around 25 million people.

Also, Bosnia and Herzegovina signed the Free Trade Agreement with Turkey, which provides additional free access to the market with over 80 million inhabitants.

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