NOTICE ON THE TRADE REGIME BETWEEN BOSNIA AND HERZEGOVINA AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AFTER THE ESTABLISHED GREEMENT ON FUTURE RELATIONS BETWEEN THE EUROPEAN UNION AND THE UNITED KINGDOM

(source: http://mvteo.gov.ba/Publication/Read/BiH-Velika-Britanija-Trgovinski-Rezim?lang=en) As is well known, the United Kingdom of Great Britain and Northern Ireland (hereinafter ‘the United Kingdom’) announced its intention to withdraw from the European Union on March 29, 2017 in accordance with Article 50 of the Treaty on European Union. Following the negotiations, the United Kingdom and the European Union reached an Agreement signed by the European Council President Charles Michel and the European Commission President Ursula von der Leyen with the Prime Minister of the United Kingdom, Boris Johnson, in London, on January 24, 2020. According to the provisions of the Withdrawal Agreement, the United Kingdom left the European Union at 00:00 CET on January 31, 2020. During the transitional period until December 31, 2020, European legislation continued to apply within and to the United Kingdom, including international treaties concluded by the Union, by the moment of UK exit from the EU. Accordingly, the trade provisions of the Stabilization and Association Agreement between Bosnia and Herzegovina and the European Union have continued to apply regarding the trade between Bosnia and Herzegovina and the United Kingdom until the end of the transitional period, i.e. December 31, 2020. Considering that the European Union and the United Kingdom have reached an agreement on trade relations within the framework of the ‘Withdrawal Agreement’, the business community in Bosnia and Herzegovina and other entities concerned regarding the foreign trade regime with the United kingdom, from January 1, 2021 will apply the following: Termination of the provisions of the Stabilization and Association Agreement between Bosnia and Herzegovina and the European Union in trade relations with the United Kingdom which includes the abolition of the preferential status of goods originating in the United Kingdom and the obligation to apply an import duty at the MFN rate for goods imported from the United Kingdom in accordance with the Law on Customs Tariff of Bosnia and Herzegovina (Official Gazette of BiH, 58/12) and The Decision on Determining of the Customs Tariff for 2021 (22nd session of the Council of Ministers of Bosnia and Herzegovina held on December 16, 2020). When determining the preferential origin of goods imported from the European Union, the inputs contained in goods originating in the United Kingdom would not accumulate and therefore the provisions for non-preferential origin of goods would apply in accordance with the Law on Customs Policy in Bosnia and Herzegovina (Official Gazette of BiH, 58/15). Other measures regarding the foreign trade regime to the United Kingdom will be applied in accordance with the most-favored-nation (MFN) principle and with the rules of the World Trade Organization. When exporting to the United Kingdom market, goods originating in Bosnia and Herzegovina will be subject to import duties and internal taxes in accordance with the tariff regime of the United Kingdom. Tariff regime of the United Kingdom with an overview of all customs rates, when imported into the United Kingdom from January 1, 2021 is shown at the following link: https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021.