1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Bilateral screening: Chapter 29 PRESENTATION OF MONTENEGRO Brussels, June 2013

2 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Customs Duty Reliefs Ministry of Finance Jelena Sekulić Brussels, June 2013

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Legislative Framework Customs regulations Customs Law (Official Gazette of the Republic of Montenegro, No 7/02, …, 66/06 and Official Gazette of Montenegro 21/08), Article 184 Decree on the procedure for exercising right to customs duty relief (Official Gazette of the Republic of Montenegro 22/03) Other regulations Law on Scientific and Research Activity (Official Gazette of Montenegro 80/10 and 40/11), Article 60

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Relevant EU regulations Council Regulation No 1186/2009 setting up a Community system of reliefs from customs duty Implementing regulations : Commission Implementing Regulation (EU) No 1225/2011 Commission Implementing Regulation (EU) No 80/2012 Commission Implementing Regulation (EU) No 1224/2011 Council Directive 2007/74/EC on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Import customs duty is a customs duty and other charges paid at importation of goods, and having the same effect as the customs duty itself. There are no export customs duty/charges.

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Procedure (Article 2) Procedure is initiated by lodging a request in writing or verbally The customs authority renders a decision by way of a Decision Notes on the document Verbally

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Relief in the legislation of Montenegro identical/similar to EU Goods established under an international treaty mandatory for Montenegro; Goods in personal luggage of passengers; Consignments of non-commercial nature; Honorary decoration, presents and awards received in the in the context of international events and relations; Goods required to meet basic needs of human beings, imported by humanitarian organisations for distribution free of charge to needy persons; Goods sent to the Red Cross of Montenegro in the form of humanitarian aid and donations for delivery of humanitarian activities; Humanitarian organisations, associations of disabled persons and their members importing specific equipment for needs of such persons;

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Relief in the legislation of Montenegro identical/similar to EU Brands, patents, models and their supporting documents sent to organisation for protection of copyrights and industrial patent rights; Miscellaneous objects and documents; Objects acquired by inheritance; Products obtained from properties owned by citizens of Montenegro, living within five kilometres from the borderline, in the respective area of the neighbouring country; Equipment for scientific and research activity; Goods sold in duty free shops;

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Reliefs in legislation of Montenegro Goods used for restoration and maintenance of protected monuments of culture; Goods used for museum, archive, restaurateur, literature, artistic, music, performing arts and film activities; donations to institutions of culture; Goods brought into from abroad as own works by scientists, writers, and artists; Goods brought into as an investment of a foreign investor in accordance with a special law; Equipment imported by the state authorities for discharge of their activities, not produced in Montenegro; Fire prevention and fire fighting equipment.

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Goods contained in a personal luggage of traveler (Articles 8-13) Personal luggage – articles for personal use of a traveler during travel and which are presented by the traveler to the customs authority at his/her entry into the customs territory, as well as the luggage presented to the same customs authority later, if demonstrates that the accompanying luggage was submitted to the same carrier before his/her departure. Goods imported for non-commercial purposes are the goods that: a traveler imports for a specific event, of negligible value and in small quantities; are solely for personal use of a traveler or his/her family, or goods intended as presents, however, quantity of such goods cannot be such to that could indicate an import for commercial purposes.

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Goods contained in personal luggage of a traveler quantitative limits/monetary thresholds (Articles 9 and 11) Tobacco products: 200 cigarettes, or 100 cigarillos (cigars of a maximum weight of 3 grams each), or 50 cigars, or 250 grams of smoking tobacco, or Proportionate quantity of various listed tobacco products Alcohol or alcoholic beverages: 2 litres of wine, and 1 litre of spirits Perfumes: 50 grams, or Eau de toilette: 0.25 litres Other goods: up to value of EUR

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Consignments of non-commercial nature (Articles 14-15) Goods contained in consignments and shipped from abroad to natural persons in Montenegro, provided that such consignments are not of a commercial nature and if they comply with stipulated type, quantity and value. Goods occasionally received from abroad in small consignments Total value up to EUR Not applicable on: Alcohols and beverages containing alcohol Tobacco and tobacco products

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Reliefs for disabled persons (Articles 20-24) Humanitarian organisations, associations of blind and deaf persons or persons with impaired hearing, persons with muscular and neuromuscular diseases and members thereof importing specific equipment, devices, instruments, spare parts and consumables for needs of such persons. Specific equipment Equipment, technical aids, spares parts as established by the Ministry of Health Passenger vehicles

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union FUTURE STEPS FULL HARMONISATION WITH RELEVANT EU REGULATIONS Draft Law Amending and Supplementing the Customs Law Article 184 amendments Transposing all reliefs at import from relevant EU regulations Keeping existing reliefs until such time Montenegro joins EU New Decree on Reliefs from Customs Duty Application is planned from 1 January 2014

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union RELEVANTNI PROPISI EU Thank you for your attention! Thank you for your attention! QUESTIONS Ministry of Finance Jelena Sekulić