Decision amending the Law on Customs Policy

1. “Work of a duty free shop demands approval of the shop as a customs warehouse referred to in paragraph 2 of this Article. In such cases customs warehouses shall be located in that part of an international airport, which is designated for transfer or departure of passengers in international traffic.”

2. Previous paragraph 3 becomes paragraph 4.

2. Authorization for temporary importation shall be granted at the request of the person who uses the goods or arranges for them to be used.

3. The Entities shall refuse to authorize use of the temporary importation procedure where it is impossible to ensure that the import goods can be identified.

4. However, the Entities may authorize use of the temporary importation procedure without ensuring that the goods can be identified where, in view of the nature of the goods or of the operations to be carried out, the absence of identification measures is not liable to give rise to any abuse of the procedure.

5. The Entities shall determine the period within which import goods must have been re-exported or assigned customs-approved treatment or use. Such period must be long enough for the objective of authorized use to be achieved.

6. Without prejudice to the special periods laid down in paragraph 1, Article 142 of this Law, the maximum period during which goods may remain under the temporary importation procedure shall be 24 months. The Entities may, however, determine shorter periods with the agreement of the person concerned.

7. However, where exceptional circumstances so warrant, the Entities may, at the request of the person concerned and within reasonable limits, extend the periods referred to in paragraphs 4 and 5 in order to permit the authorized use.

2. The procedure of temporary importation in the context of this paragraph shall be granted provided that the professional equipment is:

1. owned by a person registered outside the BiH customs territory;
2. imported by a person registered outside the BiH customs territory;
3. used solely by or under the supervision of a person visiting the BiH customs territory.

1. Cases and special conditions under which the temporary importation procedure may be used with total relief from import duties shall be determined in accordance with the Commission procedure.

2. Use of the temporary importation procedure with a partial relief from import duties shall be granted in respect of goods which, while remaining the property of a person established outside the customs territory of BiH, are not covered by the provisions adopted in accordance with paragraph 1 of this Article or which are covered by such provisions but do not fulfill all the conditions provided for therein for the grant of temporary importation with total relief.

3. The list of goods in respect of which the temporary importation procedure with partial relief from import duties may not be used shall be drawn up in accordance with the Commission procedure.

2. The amount of import duties to be charged shall not exceed that which would have been charged if the goods concerned had been released for free circulation on the date on which they were placed under the temporary importation procedure, leaving out of account any interest which may be applicable.

2. Where, for a reason other than the placing of goods under the temporary importation procedure with partial relief from import duties, a customs debt is incurred in respect of goods placed under the said procedure, the amount of that debt shall be equal to the difference between the amount of duties calculated pursuant to paragraph 1 of this Article and that payable pursuant to Article 143 of this Law.

2. Temporary exportation of goods of BiH shall entail the application of export duties, commercial policy measures and other formalities for the exit of goods of BiH from the customs territory of BiH.

3. The following definitions shall apply:

1. “temporary export goods” means goods placed under the outward processing procedure;
2. “processing operations” means the operations referred to in Article 122 (2) (c), first, second and third indents;
3. “compensating products’ means all products resulting from processing operations;”
4. “rate of yield” means the quantity or percentage of compensating products obtained from the processing of a given quantity of temporary export goods.

1. The outward processing procedure shall not be open to goods of BiH:

(a) whose export gives reason to repayment or remission of import duties,

(b) which, prior to export, were released for free circulation with total relief from import duties by virtue of end use, for as long as the conditions for granting such relief continue to apply.

5. However, Derogation from Item b) paragraph 4 of this Article may be determined in accordance with the Commission procedure.

2. Authorization shall be granted only:

1. to persons established in BiH;
2. where it is considered that it will be possible to establish that the compensating products have resulted from processing of the temporary export goods.

   Cases in which derogation from this subparagraph may apply and the conditions under which such derogation shall apply shall be determined in accordance with the Commission procedure;

3. where authorization to use the outward processing procedure is not liable seriously to harm the essential interests of BiH processors (economic conditions).

2. The Entities shall set either the rate of yield of the operation or, where necessary, the method of determining that rate.

3. Total or partial relief from import duties provided for in paragraph 5 of this Article shall be granted only where the compensating products are declared for release for free circulation in the name of or on behalf of:

1. the holder of the authorization, or
2. any other person established in BiH provided that that person has obtained the consent of the holder of the authorization and the conditions of the authorization are fulfilled.

1. The total or partial relief from import duties provided for in paragraphs 5 to 8 shall not be granted where one of the conditions or obligations relating to the outward processing procedure is not fulfilled, unless it is established that the failures have no significant effect on the correct operation of the said procedure.

2. The total or partial relief from import duties provided for in Article 144a (1) shall be effected by deducting from the amount of the import duties applicable to the compensating products released for free circulation the amount of the import duties that would be applicable on the same date to the temporary export goods if they were imported into the customs territory of BiH from the country in which they underwent the processing operation or last processing operation.

3. The amount to be deducted pursuant to paragraph 5 shall be calculated on the basis of the quantity and nature of the goods in question on the date of acceptance of the declaration placing them under the outward processing procedure and on the basis of the other paragraphs of charge applicable to them on the date of acceptance of the declaration relating to the release for free circulation of the compensating products.

4. The value of the temporary export goods shall be that taken into account for those goods in determining the customs value of the compensating products in accordance with Article 28 (1) (b) (i) of the Law on Customs Policy of BiH or, if the value cannot be determined in that way, the difference between the customs value of the compensating products and the processing costs determined by reasonable means.

5. Where temporary export goods could qualify on their release for free circulation for a reduced or zero rate of duty by virtue of their end use, that rate shall be taken into account provided that the goods underwent operations consistent with such an end-use in the country where the processing operation or last such operation took place.

6. Where compensating products may qualify for a preferential tariff measure within the meaning of Article 19 (4) (c) of the Law on Customs Policy of BiH and the measure exists for goods falling within the same tariff classification as the temporary export goods, the rate of import duty to be taken into account in establishing the amount to be deducted pursuant to paragraph 5 of this Article shall be that which would apply if the temporary export goods fulfilled the conditions under which that preferential measure may be applied.

2. Paragraph 1 of this Article shall not apply where account was taken of the defect at the time when the goods in question were first released for free circulation.

3. Where the purpose of the processing operation is the repair of temporary export goods and such repair is carried out in return for payment, the partial relief from import duties provided for in Article 144a (1) in this Law shall be granted by establishing the amount of the duties applicable on the basis of the elements for establishing the duty pertaining to the compensating products on the date of acceptance of the declaration of release for free circulation of those products and taking into account as the customs value an amount equal to the repair costs, provided that those costs represent the only consideration provided by the holder of the authorization and are not influenced by any links between that holder and the operator.

2. The Entities shall allow the standard exchange system to be used where the processing operation involves the repair of goods of BiH

3. Without prejudice to Article 144j in this Law, the provisions applicable to compensating products shall also apply to replacement products.

4. The Entities shall, under the conditions they lay down, permit replacement products to be imported before the temporary export goods are exported (prior importation).

5. In the event of prior importation of a replacement, security shall be provided to cover the amount of the import duties.

2. Where the temporary export goods have been used before export, the replacement products must also have been used and may not be new products.

3. The Entities may, however, grant derogation from this rule if the replacement product has been supplied free of charge either because of a contractual or statutory obligation arising from a guarantee or because of a manufacturing defect.

2. However, where exceptional circumstances so warrant, the Entities may, at the request of the person concerned, extend within reasonable limits the period referred to in paragraph 1 of this Article.

2. Goods released for free circulation for military and police forces in the entities and penitentiary institution in the entities and completely financed by donors shall be relieved from payment of customs duty;

3. Goods released for free circulation for projects of rebuilding and reconstruction of BiH shall be relieved from payment of customs duty if the project:

• is adopted by the Council of Ministers or Entity Governments;
• is completely financed by foreign donors or financed by international developments banks;

5. Council of Ministers shall prescribe more specific provisions on the procedure for issuing a Decision on granting the relief from payment of customs duty from paragraphs 1, 2, 3 & 4 in this Article.

(b) “Personal property” means any property intended for the personal use of the persons concerned or for meeting their households needs.

The following, in particular, shall constitute ‘personal property’:

• household effects,
• cycles and motor cycles, private motor vehicles and their trailers, camping caravans, pleasure crafts and private aeroplanes.

  Household provisions appropriate to normal family requirements, household pets and saddle animals, as well as the portable instruments of the applied or liberal arts, required by the person concerned for the pursuit of his trade or profession, shall also constitute ‘personal property’.

(a) “Household effects” means personal effects, household linen, furnishings and equipment intended for the personal use of the persons concerned or for meeting their household needs. However, ‘household effects’ must not be such as might indicate by their nature or quantity, that they are being imported for commercial reasons.

(b) “Personal luggage” means the whole of the luggage which a traveller is in a position to declare to the Customs Authorities of the Entities on his arrival in BiH, as well as any luggage presented to the same authorities at a later date, provided that evidence can be produced to prove that it was registered, at the time of the travellers’ departure, as accompanied luggage with the company which transported it into BiH from the country of departure.

(c) “Goods of non-commercial nature” means imports which are of an occasional nature and consist exclusively of goods for the personal use of the travellers or their families, or of goods intended as presents; the nature and quantity of such goods should not be such as might indicate that they are being imported for commercial reasons.

(d) “Relief from duty” means that the rate as set out in the customs tariff schedule in the Customs Tariff Law of BiH does not apply.

(e) “Samples of goods” means any article representing a type of goods whose manner of presentation and quantity, for goods of the same type or quality, rule out their use for any purpose other than that of seeking orders

(f) “Alcoholic products” means products (beer, wine, aperitifs with a wine or alcoholic base, brandies, liqueurs or spirituous beverages, etc.) falling within tariff heading 22 03 to 22 09 in the Tariff schedule in the Customs Tariff Law of BiH.

2) The relief referred in paragraph 1 of this Article shall, in respect of the goods listed below, apply subject to following quantitative limits per traveller and per day:

2) The relief shall be limited to personal property which:

2) Relief may be granted only to persons whose normal place of residence has been outside BiH for a continuous period of at least 12 months or at least 12 months within the period of four years of residence.

3) Relief shall be granted only in respect of personal property declared for free circulation within 12 months from the date of establishment of the new residence within the customs territory of BiH.

4) Except for the specific provisions as set out in the previous Section, no relief shall be granted for:

1. alcoholic products;
2. tobacco or tobacco products;
3. commercial means of transport;
4. articles for use in the exercise of a trade or profession, other than portable instruments of the applied or liberal arts.

5) Until 12 months have elapsed from the date on which the declaration for free circulation was accepted, personal property which has been admitted duty-free may not be lent, given as security, hired out or transferred, whether for a consideration or free of charge, without getting prior consent from the competent Customs administration.

6) Any loan, giving as security, hiring out or transfer before the expiry of the period referred in paragraph 7 shall entail payment of the relevant customs duty on the property concerned, at the rate applying on the date of such loan, giving as security, hiring out or transfer, on the basis of the type of property and the customs value ascertained or accepted on that date by the competent Customs administration.

2) For the purpose of paragraph 1 of this Article, ‘personal property’ means also the household items constituting the estate of the deceased.

3) Except for the specific provisions relating to the goods contained in the passenger’s personal baggage, no relief shall be granted for:

2) The relief shall be limited to household effects which:

1. Except in special cases justified by the circumstances, have been owned and used by the person concerned for a minimum of six months before the date on which these household effects were exported;
2. Are appropriate both by nature and by quantity to the normal furnishings of that secondary residence.

1) The relief shall be granted only to following persons who:

1. Have had their normal place of residence outside BiH for a continuous period of at least 12 months;
2. Are the owners of the secondary residence in question or have rented it for not less than two years; and
3. Undertake not to let this secondary residence to third parties while they or their families are absent.

1) The relief may be limited to a single use of one and the same secondary residence.

2) The grant of relief may be made subject to the lodging of a guarantee to ensure payment of any customs debt, which may arise.

3) Hiring or transfer of the secondary residence to a third person before the expiry of a period of two years from the date of acceptance of import of the household effects shall entail payment of the relevant duties on them, at the rate applying on the date of such hire or transfer, on the basis of the type of goods and the customs value ascertained or accepted on that date by the competent authorities. The relief shall continue to apply if the household effects concerned are used to furnish a new secondary residence, provided that the provisions of paragraph 3, points 2 and 3 of this Article are respected.

4) Any loan, giving as security, hiring out or transfer, whether for a consideration or free of charge, of these household effects to a third person before the expiry of a period of two years from the date of granting authorization shall entail payment of the relevant duties under the same conditions as those referred to in paragraph 6. This period may be extended up to 10 years for valuable household effects.

Where the undertaking transferred is an agricultural holding, its livestock shall also be admitted free of import duties.

2) For the purposes of paragraph 1, “undertaking” means an independent economic unit of production or of the service industry.

3) The relief shall be limited to capital goods and equipment which:

1. have been used in the undertaking for a minimum of 12 months before the date on which the undertaking ceased to operate in the third country from which it has transferred its activities;
2. are intended to be used for the same purposes after the transfer;
3. are appropriate to the nature and size of the undertaking in question.

1) No relief shall be granted to undertakings the transfer of which into the customs territory of BiH is consequent upon or is for the purpose of merging with, or being absorbed by, an undertaking established in the customs territory of BiH, except for setting up an activity in the undertaking concerned.

2) No relief shall be granted for:

1. means of transport which are not of the nature of instruments of production or of the service industry;
2. supplies of all kinds intended for human consumption or for animal feed;
3. fuel and stocks of raw materials or finished or semi-finished products;
4. livestock in the possession of dealers.

1) The relief granted as per the provisions of this Article shall be granted only for capital goods and other equipment entered for free circulation before the expiry of a period of 12 months from the date when the undertaking ceased its activities in the third country of departure.

2) Until 12 months have elapsed from the date on which the declaration for free circulation was accepted, capital goods and equipment which have been admitted duty-free may not be lent, given as security, hired out or transferred, whether for a consideration or free of charge, without prior consent of the competent Customs administration.

3) Any loan, giving as security, hiring out or transfer before the expiry of the period referred to in paragraph 7 of this Article shall entail payment of the relevant import duties on the goods concerned, at the rate applying on the date of such loan, giving as security, hiring out or transfer, on the basis of the type of goods and the customs value ascertained or accepted on that date by the competent Customs Administration.

9) Paragraphs 1 to 8 of this Article shall also apply to capital goods and equipment belonging to persons engaged in a liberal profession and to the persons referred to in Article 4, paragraph 1, indent 3 of the Law on Customs Policy of BiH engaged in a non-profit making activity who transfer this activity from a foreign country into the customs territory of BiH.

2) To benefit from the provisions of paragraph 1 of this Article, stock-farming products must be derived from animals, which originate in BiH i.e. which is released for free circulation.

3) The relief shall be limited to products which have not undergone any treatment other than that which normally follows harvest or production.

4) The relief shall be granted only for those products agricultural producers brought into the customs territory of BiH by the agricultural producer or on his behalf.

5) Paragraphs 1 to 4 of this Article shall also apply to the products of fishing or fish-farming activities carried out in the lakes or waterways at the frontier of BiH and some other country by BiH fishermen and to the products of hunting activities carried out on such lakes or waterways by BiH sportsmen.

1) Seeds, fertilizers and products for the treatment of soil and corps intended for use on property located in the customs territory of BiH adjoining a foreign country and operated by agricultural producers having their principle undertaking within the said foreign country and adjacent to the customs territory of BiH shall be relieved form payment of Customs duty.

2) The relief shall be limited to the quantities of seeds, fertilizers or other products required for the treatment of property.

3) The relief shall be granted only for the seeds, fertilizers or other products which the agricultural producer or his representative imports directly into the customs territory of BiH.

4) BiH may make relief conditional upon the application of the principle of proportionality.

1. for distribution free of charge to victims of disaster affecting the BiH territory; or
2. to be made available free of charge to the victims of such disasters while remaining the property of the organisations in questions

1) Goods imported for free circulation by disaster relief agencies in order to meet their needs during the period of their activity shall also be granted the relief under the same conditions as referred to in paragraph 1 of this Article.

2) No relief shall be granted for materials and equipment intended for rebuilding disaster areas.

3) Relief shall be granted only to organisations the accounting procedures of which enable the competent authorities to supervise their operations and which offer all the guarantees considered necessary.

4) The organisations benefiting from the relief may not lend, hire out or transfer, whether for consideration or free of charge, the goods referred to in paragraph 1 of this Article under conditions other than those laid down in this Article without getting prior approval thereof from the competent Entities. Should goods be lent, hired out or transferred to an organisation itself entitled to benefit from relief, the relief shall continue to be granted, provided the latter uses the goods for purposes which confer the right to such relief. In other cases, loan hiring out or transfer shall be subject to prior payment of import duties at the rate applying on the date of the loan, hiring out or transfer, on the basis of the type of goods and the customs value ascertained or accepted on that date by the competent customs authorities.

5) The goods referred to in paragraph 1 (b) of this Article, after they cease to be used by disaster victims, may not be lent, hired out or transferred, whether for a consideration or free of charge, unless the competent Entities approves it.

6) Should goods be lent, hired out or transferred to an organisation itself entitled to benefit from relief pursuant to paragraph 1 or if appropriate, the relief shall continue to be granted provided such organisations use them for purposes which confer the right to such relief. In other cases, loan hiring out or transfer shall be subject to prior payment of customs duty at the rate applying on the date of the loan, hiring out or transfer, on the basis of the type of goods and the customs value ascertained or accepted on that date by the competent customs authorities.

1. basic necessities imported by state organisations or charitable organisations approved by the competent authorities for distribution for humanitarian purposes;
2. goods sent free of charge, by a persons or an organisation registered in a foreign country, and without any commercial intent on the part of the sender, to state organisations or other charitable or humanitarian organisations approved by the competent authorities, to be used for fund raising at occasional charity events for the benefit of needy persons;
3. equipment and office materials sent free of charge by a person or an organisation established outside the customs territory of BiH without any commercial intent on the part of the sender, to state organisations or other charitable or humanitarian organisations approved by the competent authorities and solely for the purpose of meeting their operating needs or carrying out their charitable or humanitarian aims

1) For the purposes of paragraph 1, item 1 of this Article ‘basic necessities’ means those goods required to meet the immediate needs of human beings, e.g. food, medicine, clothing and bed -clothes.

2) No relief shall be granted for:

1. alcoholic products;
2. tobacco or tobacco products;
3. coffee;
4. motor vehicles, other than ambulances and specialised vehicles for the transportation of disabled persons.

4) Relief shall be granted only to organisations the accounting procedures of which enable the competent authorities to supervise their operations and which offer all the guarantees considered necessary

5) The organisation benefiting from the relief may not lend, hire out or transfer, whether for a consideration or free of charge, the goods and equipment referred to in paragraph 1 of this Article for purposes other than those laid down in paragraph 1 (a) and (b) of this Article without obtaining prior consent of the customs authorities.

6) Should goods and equipment be lent, hired out or transferred to an organisation entitled to benefit from relief pursuant to paragraph 1 of this Article, the relief shall continue to be granted provided the latter uses the goods and equipment for purposes which confer the right to such relief.

7) In other cases, loan, hiring out or transfer shall be subject to prior payment of customs duty, at the rate applying on the date of the loan, hiring out or transfer, on the basis of the type of the goods or equipment and customs value ascertained or accepted on that day by the customs authorities.

8) Organisations referred to in paragraph 1 of this Article which cease to fulfil the conditions giving entitlement to relief, or which are proposing to use goods and equipment admitted duty-free for purposes other than those provided for by that paragraph, shall so inform the competent authorities.

9) Goods and equipment remaining in the possession of organisations which cease to fulfil the conditions giving entitlement to relief shall be liable to the relevant customs duty at the rate applying on the date on which those conditions cease to be fulfilled, on the basis of the type of goods and equipment and the customs value ascertained or accepted on that date by the customs authorities.

10) Goods and equipment used by the organisations benefiting from the relief for purposes other than those provided for in paragraph 1 of this Article shall be liable to the relevant customs duty at the rate applying on the date on which they are put to another use, on the basis of the type of goods and equipment and the customs value as ascertained or accepted on that date by the customs authorities.

2) Articles specially designed for the educational, scientific or cultural advancement of blind persons, which are specified in the list to be completed in accordance with the Commission procedure, shall be relieved from payment of customs duty, provided that they are imported by:

• blind persons for their own use;
• institutions or organisations concerned with the education of or the provision of assistance to the blind, approved by the competent authorities in the Entities for the purpose of duty-free entry of these articles.

1) The relief referred to in paragraph 2 shall apply to spare parts, components or accessories specifically intended for the articles in question, and to the tools to be used for the maintenance, checking, calibration or repair of the said articles, provided that such spare parts, components, accessories or tools are imported at the same time as the said articles or, if imported subsequently, that they can be identified as being intended for articles previously admitted duty-free, or which would be entitled to relief at the time when such relief is requested for the specific spare parts, components or accessories and tools in question.

• handicapped persons for their own use;
• institutions or organisations that are principally engaged in the education of or the provision of assistance to the handicapped persons, approved by the competent authorities to import such article duty-free.

2) The Articles referred to in paragraph 1 of this Article shall be relieved from payment of customs duty provided that they are not manufactured in BiH.

3) The relief referred to in paragraph 1 shall apply to spare parts, components or accessories specifically intended for the articles in question, and to the tools to be used for the maintenance, checking, calibration or repair of the said articles, provided that such spare parts, components, accessories or tools are imported at the same time as the said articles or, if imported subsequently, that they can be identified as being intended for articles previously admitted duty-free, or which would be entitled to relief at the time when such relief is requested for the specific spare parts, components or accessories and tools in question.

2) For the purpose of paragraph 1 of this Article the following persons shall be considered as disabled persons eligible to exercise the right of relief from payment of customs duty on import of passenger’s car as an orthopaedic or other accessories:

• disabled war-veterans, if a bodily damage of at least 70 % has been established by a decision of the responsible Commission for Determining Disability Degree in compliance with the disability insurance regulations, as well as for an established disability degree of 50 % and larger – in cases of amputation and more severe damages of extremities that require usage of a vehicle adjusted to disabled persons;
• Other disabled persons, if a bodily damage of at least 80 % has been established by a decision of the responsible Commission for Determining Disability Degree in compliance with the disability insurance regulations, in particular of motor parts (lower extremities, pelvis, spine) as well as other parts that cause distortion in the function of lower extremities; complete loss or damage of sight; severe for of retardation or paralysis.

1) A disabled person may import a passenger car up to the value of 30.00 DM i.e. a passenger car specially adjusted for transportation of disabled persons, without limiting the value.

2) The exemption shall not be applied to:

1. alcoholic products;
2. perfumes and toilet waters;
3. tobacco and tobacco products.

3) Normal receiving of postal parcels within the meaning of this paragraph means receiving of postal parcels from abroad once a week.

2) The competent Customs House may require that certain articles, in order to use the relief referred to in paragraph 1 of this Article, must be rendered permanently unusable by being torn, perforated, or clearly and indelibly marked, or by any other process, provided such operation does not destroy their character as samples.

1. goods for sale or hire, or
2. transport, commercial insurance or banking services offered by a person registered outside the customs territory of BiH.

1) The relief referred to in paragraph 3 of this Article shall be limited to printed advertisements which fulfills the following conditions:

1. printed matter must clearly display the name of the undertaking which produces, sells or hires out the goods, or which offers the services to which it refers;
2. each consignment must contain no more than one document or a single copy of each document if it is made up of several documents. Consignments comprising several copies of the same document may nevertheless be granted relief, provided their total gross weight does not exceed one kilo;
3. printed matter may not be the subject of grouped consignments from the same consignor to the same consignee.
4. articles for advertising purposes of no intrinsic commercial value sent free of charge by suppliers to their customers, which, apart from their advertising function, are not capable of being used otherwise.

1. small representative samples of goods manufactured outside of BiH intended for a trade fair or similar event;
2. goods imported solely in order to demonstrate machines and apparatuses, manufactured outside the customs territory of BiH and displayed at a trade fair or similar event;
3. various materials of small value such as paints, varnishes, wallpaper, etc., used in the building, fitting-out and decoration of temporary stands occupied by representatives of foreign countries at a trade fair or similar events, which are destroyed by being used.
4. printed matter, catalogues, prospectuses, price lists, advertising posters, calendars, whether or not illustrated, unframed photographs and other articles supplied free of charge in order to advertise goods manufactured outside the customs territory of BiH and displayed at a trade fair or similar event.

1) For the purpose of paragraph 5 of this Article, ‘trade fair or similar event’ means:

1. exhibitions, fairs, shows and similar events connected with trade, industry, agriculture or handicrafts;
2. exhibitions and events held mainly for charitable reasons;
3. exhibitions and events held mainly for scientific, technical, handicraft, artistic, educational or cultural, or sporting reasons, for religious reasons or for reasons of worship, trade union activity or tourism, or in order to promote international understanding;
4. meetings of representatives of international organisations or collective bodies;
5. official or commemorative ceremonies and gatherings;

   but not exhibitions staged for private purposes in commercial stores or premises to sell goods of foreign countries.

1) The relief referred to in paragraph 5 of this Article shall be limited to samples which:

1. are imported free of charge as such from third countries or are obtained at the exhibitions from goods imported in bulk from those countries;
2. are exclusively distributed free of charge to the public at the exhibition for use or consumption by the persons to whom they have been offered;
3. are identifiable as advertising samples of low unitary value;
4. are easily marketable, and where appropriate, are packed in such a way that the quantity of the item involved is lower than the smallest quantity of the same item actually sold on the market;
5. in the case of foodstuffs and beverages not packaged as mention under d) of this paragraph, are consumed on the spot during the exhibition;
6. in their total value and quantity, are appropriate to the nature of the exhibition, the number of visitors and the extent of the exhibitor’s participation.

1) The relief referred to in paragraph 7, point 2 of this Article shall be limited to goods which are:

1. consumed or destroyed at the exhibitions; and
2. are appropriate, in their total value and quantity, type the nature of the exhibition, the number of visitors and the extent of the exhibitor’s participation.

1) The relief referred to in paragraph 8, points 1 and 2 of this Article shall not be granted for:

1. alcoholic products;
2. tobacco or tobacco products;
3. fuels, whether solid, liquid or gaseous.

2) Relief shall only be granted on condition that the goods to be examined, analyzed or tested are completely used up or destroyed in the course of the examination, analyses or testing.

3) Goods used in examinations, analyses or tests which in themselves constitute sales promotion operations by themselves, shall not enjoy relief from customs duty.

4) Relief shall be granted only in respect of the quantity of goods which are strictly necessary for the purpose for which they are imported and these quantities shall in each case be determined by the competent authorities.

5) The relief referred to in para.1 of this Article shall cover goods which are not completely used up or destroyed during examination, analyses or testing, provided that the products remaining are, with the agreement and under the supervision of the competent authorities:

1. completely destroyed or rendered commercially valueless on completion of examination, analyses or testing ;
2. surrendered to the Entities without causing it any expense, where this is possible under national laws;
3. in duly justified circumstances, exported outside the customs territory of BiH.

1) For the purpose of paragraph 5 of this Article, “products remaining” means products resulting from the examinations, analyses or tests, or products not actually used.

2) Where paragraph. 5 of this Article is applied, products remaining at the end of the examinations, analyses or tests referred to in paragraph 1 of this Article, shall be subject to the relevant import duties at the customs rate applicable on the date of completion of examinations, analyses or tests, on the basis of the type of goods and customs value ascertained or accepted on that date by the competent customs authorities. However, the interested party may, with the agreement and under the supervision of the competent customs authorities, covert products remaining to waste, in which case, the import duties shall be those applying to such waste or scrap at the time of conversion.

3) The period within which examinations, analyses or tests must be carried out and the administrative formalities to be completed in order to ensure the use of the goods for the purposes intended, shall be determined by the customs authorities.

1. any honorary decoration which has been conferred on the person concerned by a government in a third country; or
2. any cup, medal or similar article of an essentially symbolic nature which has been awarded to the person concerned in a third country as a tribute to his activities in the arts, sciences, sport or the public service, or in recognition of merit at a particular event.

2) Educational, scientific and cultural materials specified in the List to be adopted in accordance with the procedure in the Commission provided they are intended for:

• public educational, scientific or cultural establishments or organisations;
• establishment or organisations specified in the above mentioned list on condition that the competent authorities in the Entities have approved to receive such articles duty-free.

1) Scientific instruments and apparatus, which are not included in paragraph 2 of this Article shall be admitted free of import duties when they are imported exclusively for non-commercial purposes.

2) The relief referred to in paragraph 3 of this Article shall be limited to scientific instruments and apparatus:

1. which are intended for:
   • public establishments principally engaged in education or scientific research and those departments of public establishments, which principally engaged in education or scientific research;
   • private establishments principally engaged in education or scientific research and approved by the competent authorities in the Entities top receive such articles duty-free; and
2. to the extent that instruments or apparatus of equivalent scientific value are not being manufactured in BiH.

   1) The relief shall also apply to:

   1. spare parts, components or accessories specifically suitable for scientific instruments or apparatus, provided that these spare parts, components or accessories are imported at the same time as such instruments and apparatus or, if imported subsequently that they can be identified as being intended for instruments or apparatus:
      • which have previously been admitted duty-free, provided that such instruments and apparatus are still of scientific nature at the time when relief is requested for the specific spare parts, components or accessories
      • which would be entitled to relief at the time when such relief is requested for the specific spare parts, components or accessories.
      • tools to be used for the maintenance, checking, calibration or repair of scientific instruments or apparatus, provided that
   2. these tools are imported at the same time as such instruments and apparatus or, if imported subsequently that they can be identified as being intended for specific instruments or apparatus
      • which have previously been admitted duty-free, provided that such instruments and apparatus are still of scientific nature at the time when relief is requested for the tools; or
      • which would be entitled to relief at the time when such relief is requested for the tools; and
      • that equivalent tools are not being manufactured in BiH.

2) Relief referred to in paragraph 1 shall be limited to animals and biological or chemical substances, which are intended for:

• public establishments principally engaged in education or scientific research as well as those departments of public establishments, which are principally engaged in education or scientific research; or
• private establishments principally engaged in education or scientific research and authorized by the competent authorities to receive such goods duty-free.

2) For the purposes of paragraph 1:

• “therapeutic substances of human origin” means human blood and its derivatives (whole human blood, dried human plasma, human albumin and fixed solutions of human plasmic protein, human immunoglobulin and human fibrinogen);
• “blood-grouping reagents means all reagents, whether of human, animal, plant or other origin used for blood-type grouping and for the detection of blood incompatibilities,”
• “tissue-typing reagents” means all reagents whether of human, animal, plant or other origin used for the determination of human tissue-types.

1) The relief shall be limited to products which:

• are intended for institutions or laboratories approved by the competent authorities, for use exclusively for non-commercial medical or scientific purposes;
• are accompanied by a certificate of conformity issued by a duly authorized body in the third country of departure;
• are in containers bearing a special label identifying them.

1) The relief shall include the special packaging essential for the transport of therapeutic substances of human origin or blood-grouping or tissue-typing reagents and also any solvents and accessories needed for their use which may be included in the consignment.

2) In order to exercise the relief it is necessary to present doctor’s prescription.

2) Only the following persons shall be granted the exemption:

1. those whose normal place of residence was outside of the customs territory of BiH in an uninterrupted period of at least 12 months.
2. those who submit the evidence on their wedding.

1) The exemption shall not be granted for alcoholic products, tobacco and tobacco products.

2) Relief shall be granted only in respect of goods entered for free circulation:

• not earlier that two months before the date fixed for the wedding(in this case the relief shall be subject to the lodging of appropriate security, the form and amount of which shall be determined by the customs authorities) and
• not later than four months after the date of the wedding.

1) The goods may be released for free circulation in several separate consignments.

2) Until 12 months have elapsed from the date on which their entry for free circulation was accepted, goods which have been admitted duty-free on the occasion of marriage may not be lent, given as security, hired out or transferred whether for a consideration or free of charge without prior consent from the competent customs authority.

3) Any loan, giving as security, hiring our or transfer before the expiry of the period referred to in paragraph 6 of this Article shall entail payment of the relevant customs duty on the goods concerned at the rate applying on the basis of the type of goods and the customs value ascertained or accepted on that date by the competent customs authority.

2) For the purpose of paragraph 1 of this Article:

1. “pupil or student” means any person enrolled in an educational establishment in the territory of BiH in order to attend full-time the courses offered therein;
2. “outfit” means underwear or household linen as well as clothing whether or not new;
3. “scholastic materials” means objects and instruments (including calculators and typewriters), normally used by pupils or students for the purposes of their studies.

1) Relief shall be granted at least once per school year.

2.) Customs relieves under the customary privileges accorded by virtue of international agreements or headquarters agreements to which either a foreign country or an international organisation is a contracting party, including the relief granted on the occasion of international meetings;

3.) Customs relieves under the customary privileges and immunities accorded in the context of international agreements concluded by BiH and setting up cultural or scientific institutes or organisations under international law;

4.) Customs relieves under the customary privileges and immunities accorded in the context of cultural, scientific or technical co-operation agreements concluded with foreign countries;

5.) Special customs relieves introduced under agreements BiH concluded with third countries, which provide for common measures for the protection of persons or of the environment;

6.) Special customs relieves introduced under agreements concluded with neighbouring third countries, justified by the nature of the frontier-zone trade with the countries in question;

7.) Customs relieves in the context of agreements entered into on the basis of reciprocity with foreign countries that are contracting parties to the Convention of International Civil Aviation (Chicago 1944) for the purpose of implementing Recommended Practices 4.42 and 4.44 in Annex 9 to this Convention (eighth edition, July 1980).

2) Goods released into free circulation with the relief from payment of customs duty, referred to in Articles 11 and 12 must not be lent, hired out or transferred, whether for a consideration or free of charge, without prior notification to the customs authorities on that.

3) Should the goods be released for free circulation with the relief from payment of customs duty referred to in Articles 11 and 12 be lent, hired out or transferred to an organisation, which itself is entitled to the relief from payment of customs duty referred to in Articles 11 and 12, the relief shall continue to be granted provided the organisation uses the goods for purposes which confer the right to the relief.

4) Any handling with goods contrary to paragraph 1, 2 and 3 of this Article shall entail payment of the customs duty, at the rate applying on the date of such an action, on the basis of the type of goods and the customs value ascertained or accepted on that date by the customs house.