Development of an Action Plan for implementation of the SAA and Interim Agreement

(1 July 2008 – 31 December 2009)

IA ART (SAA) / OBLIGATION / DEADLINE / STATE OF PLAY/NEXT STEPS / BIh INSTITUTION RESPONSABILE
MEASURE / acquis / IPA

BOSNIA AND HERZEGOVINA

Council of Ministers

Development of an Action Plan for implementation of the SAA and Interim Agreement

(1 July 2008 – 31 December 2009)

Direkcija za evropske integracije

GENERAL PRINCIPLES
IA Art
(SAA) / OBLIGATION
1 (2) / Respect for the democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the Convention for the Protection of Human Rights and Fundamental Freedoms, in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for international law principles, including full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY), and the rule of law as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Co-operation, shall form the basis of the domestic and external policies of the Parties and constitute essential elements of this Agreement.
2 (9) / This Agreement shall be fully compatible with and implemented in a manner consistent with the relevant WTO provisions, in particular Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the General Agreement on Trade in Services (GATS).
INDUSTRIAL PRODUCTS
6[1](21) / BiH to abolish customs duties for industrial products originating in the Community except for products in Annex I upon entry into force of the IA. / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008
New regime to be published annually in the Official Gazette / ITA
MoFTER
6[2](21) / Upon the entry into force of the Interim Agreement, Bosnia and Herzegovina shall abolish charges having equivalent effect to customs duties on imports of industrial products originating in the EU / 1 July 2008 / -Equal effect duties on import of EU-originating goods do not apply
-To abolish the import duty on non-EU-originating industrial goods for the purpose of customs evidencing (1% - Article 12.2 of the Law on BiH Customs Policy). This import duty, in accordance with Article 8 of the GATT is a duty with fiscal effect, which should be abolished or transferred in accordance with the same article of the GATT. / ITA
MoFTER
6[3](21) / BiH to progressively reduce, then abolish customs duties for industrial products in Annex I(a), (b) and (c) / -1 July 2008:reduced to 90%
-1 January 2009:reduced to 80% / New regime to be published annually in the Official Gazette / ITA
MoFTER
6[4](21) / BIH to abolish quantitative restrictions and measures having equivalent effect on imports of industrial products orginating in the Community. / 1 July 2008 / In force is the Decision of the BiH Council of Ministers prohibiting the import of vehicles older than seven years to BiH, which is contravening the provisions of articles III and XI.
To abolish mentioned decision.
Instead of it, to introduce the homologation of vehicles as in the EU.
Since the procedure for introduction of the homologation system is time demanding, it is necessary to consider the application of some specific short-term measures preventing the import of old vehicles (e.g. to increase the VAT at import). / ITA
MoFTER
MTC
PROCESSED AGRICULTURAL PRODUCTS
10 (25)
Protocol 1
Annex I / BiH to abolish custom duties for processed agricultural products in Annex I of Protocol 1. / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette / ITA
10 (25)
Protocol 1
Annex II / BiH to progressively reduce, then abolish custom duties for processed agricultural products in Annex II of Protocol 1. / -1 July 2008:reduced to 90%
-1 January 2009:reduced to 80% / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
AGRICULTURAL AND FISHERY PRODUCTS
11 [2] (26) / BiH to abolish all quantitative restrictions and measures having equivalent effect on imports of agricultural and fishery products originating in the Community. / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008. / ITA
MoFTER
12 [4a] (27)
Protocol 1
Annex III / BiH to abolish customs duties for agricultural products in Annex III (a) / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008. / ITA
MoFTER
12 [4b] (27)
Protocol 1
Annex III / BiH to progresssively reduce, then abolish customs duties for agricultural products in Annex III(b) / -1 July 2008:reduced to 50%
-1 January 2009:duties abolished / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette. / ITA
MoFTER
12 [4b] (27)
Protocol 1
Annex III / BiH to progresssively reduce, then abolish customs duties for agricultural products in Annex III(c) / -1 July 2008:reduced to 75%
-1 January 2009:reduced to 50% / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette. / ITA
MoFTER
12 [4b] (27)
Protocol 1
Annex III / BiH to progresssively reduce, then abolish customs duties for agricultural products in Annex III(d) / -1 July 2008:reduced to 90%
-1 January 2009:reduced to 80% / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette.
12 [4c] (27)
Protocol 1
Annex III / BiH to abolish customs duties within quotas for agricultural products in Annex III (e) / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
Tariff quotas to be published annually / ITA
MoFTER
12 [5] (27)
Protocol 7 / Protocol 7 lays down the arrangements applicable to the wine and spirit drinks products:
§  Abolish duties on imports from the Community on quality sparkling wine and wine fresh grapes within the quota of 6000 hl (yearly increase by 1000 hl up to 8000 hl)
§  Recognize, protect and control wine, spirit drinks and aromatised wine names / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette.
Verify compatibility of The Law on Wine, Brandy and Other Wine and Grape Products with EU legislation
The Law on Wine, Brandy and Other Wine and Grape Products published in the “BiH Official Gazette“, No.: 25/08.
To develop implementing by-laws regulating the area of winegrowing and wine industry. / ITA
MoFTER
13 (28) / BiH to abolish custom duties on fisheries products in line with Annex V. / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
New regime to be published annually in the Official Gazette. / ITA
MoFTER
COMMON PROVISIONS
19 (34) / The Parties shall not introduce new duties, charges, quantitaative restrictions or measures having similar effect on imports or exports, existing ones will not be made more restrictive. / 1 July 2008 / Published in the “BiH Official Gazette – International Treaties“, No.: 5/08 of 20 June 2008.
To monitor the BiH trade regime to ensure compliance with this Article. / MoFTER
ITA
20 (35) / The Parties shall refrain from and abolish any fiscal discrimination measures. / 1 July 2008 / Amendments to the Law on VAT is adopted and published in the “BiH Official Gazette “, No.: 100/08 of 16 December 2008. By This amendments defining that supply of goods and services with a purpose of use for projects financed by IPA funds will be exempted of VAT. It will significantly facilitate implementation of IPA projects in BiH. / ITA
26 (41) / BiH shall adjust State monopolies ensure there is no discrimination on conditions under which goods are procured and marketed exists between BiH and EU Members States nationals. / 1 July 2008 / BiH has no such monopolies
To follow the EU regime in this area / MoFTER
CCBH
FMEMI
MEEDRS
TRANSPORT
32 [2] (59[1])
Protocol 3 / The Parties shall grant unrestricted access to transit traffic through their territories.
The Parties agree to simplify the flow of goods by rail and road, whether bileteral or in transit. / 1 July 2008 / Flow of goods in road and railroad traffic is free and unrestricted. For EU goods, the restrictions relate only to import regime regulated by the Agreement, while the transport remains unrestricted. / MCT
MCTFBH
MCTRS
CURRENT PAYMENTS
33 (60) / BiH to authorise payments and transfers on the current account of balance of payments between the Community and BiH in freely convertible currency in accordance with Article VII of the Articles of Agreement of the IMF. / 1 July 2008 / At the end of 200 the Councile of Ministers adopted Law on Foreign Currency Operation in BiH wich is harmonised with Annex I Directive 88/361/EEC aiming to liberalise current and capital transactions. Draft Law will be submitted to Parliament Assembli of BIH for adoption.
In line with the conclusion of the National Assembly of the Republic of Srpska (NARS), Ministry of Finance of RS drafted and NARS adopted Draft Law on Foreign Currency Operation as the first step of liberalisation of current and capital transaction with foreign countries. After public disscusion is finished, The Law will be submitted for final adoption to the NARS. / MFT
CBBH
MFFBH
MFRS
In FBiH Draft a new Law on Foreign Currency Operations is in drafting faze. The new law foresees an entirely new concept of foreign currency payment system in terms of liberalisation of foreign transactions for physical and legal persons. This Law will also provide for liberalisation of capital transactions in terms of removing all barriers to allow unimpeded flow of capital with the EU Member States.
APPROXIMATION OF LEGISLATION
70 / Gradual approximation of BiH legislation to the Community acquis.
Bosnia i Herzegovina shall also define, in agreement with the European Commision, the modalities detailed arrangements for the monitoring of the implementation of approximation of legislation and new law enforcement action to be taken. / Approximation shall start on the date of signing of this Agreement, and shall gradually extend to all the elements of the Community acquis refferd to in this Agreement by the end of the transitional period of 6 years. / DEI will make, in cooperation with competent authorities, plan for approximation of BiH legislation to the Community acquis in line with IA and SAA provisions as well as European partnership priorities. / DEI
SAAC

Directorate for European Integration