Law “On Foreign Trade” | Kosovo

On 08.02.2022, the Assembly of the Republic of Kosovo adopted Law no. 08/L-021 on Foreign Trade (the “New Law”), which abrogates the previous Law no. 04/L-048 on Foreign Trade. The law regulates foreign trade in accordance with the best international practices by protecting domestic manufacturers against unfair international trade.

The New Law establishes the general principles and rules governing import, export and transit of goods and services to and from Kosovo’s territory in a manner consistent with the best international practice, WTO agreements and the legislation of the European Union.

The provisions of the said law shall apply to all physical and legal persons, public enterprises and goods and objects involved in foreign trade in or having effects within the Republic of Kosovo.

In the context of trade in goods, the New Law stipulates that most-favored-nation-treatment shall be accorded to imported or exported goods, with respect to customs duties and charges of any kind imposed on or in connection with imports or exports, internal taxes or other internal charges, the levying of such duties and charges, as well as the rules and formalities related to importation and exportation, unless otherwise required by an international agreement or the law provisions.

Additionally, with regards to the national treatment in trade in goods, products that have been imported in Kosovo shall be accorded no less favorable treatment than that accorded to domestic like products in respect of all laws, sub-legal acts and other acts of general application affecting internal sale, offering for sale, purchase, transportation, distribution or use of products. These products shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products.

The national and most-favored-nation treatment apply to the trade in services (including cross-border supply, consumption abroad, commercial presence and presence of national persons) and the trade-related aspects of intellectual property rights, as well.

Quantitative restrictions through quotas or other measures of equivalent effect, which may be instituted or maintained on the import of foreign products or on the export of any product destined to the territory of another country are prohibited, unless otherwise provided by this law.

Further, imported goods in order to be released for free circulation in the territory of the Republic of Kosovo, must meet special requirements of the legislation in force pertaining to:

  • sanitary and phytosanitary requirements;
  • regulations and technical standards.

The freedom of transit and the possibility for domestic or foreign natural persons to import and export goods for non-commercial purposes are also guaranteed. However, the import or export of specific goods may be prohibited by law or by a sub-legal act. The Government of Kosovo may also apply trade restrictions on the basis of economic or non-economic reasons.

The New Law also lays down rules on matters relating to customs duties, customs valuation and classification of goods in accordance with the customs legislation in force. The procedures for applying, reviewing, granting, refusing and revoking licenses, must be accomplished in accordance with the Law on the System of Permits and Licenses and the Law on General Administrative Procedure.

Appeals against decisions issued under the law are permitted and shall be carried out according to the relevant law on general administrative procedure.

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