Serbia Harmonises Customs Tariffs on Cigarette Imports from Croatia and EU

Source from:  Dalje.com 10/18/2013

Serbia's European Integration Minister Branko Ruzic said in Belgrade on Thursday that the Serbian government had harmonised customs tariffs on cigarette imports from Croatia and the EU, stressing that such a decision would not put Serbia in a degrading position, but would provide an additional opportunity for its exports.

Addressing a press conference after meeting with EU Delegation head Michael Davenport and EU ambassadors, Ruzic said that the government's body that coordinates EU integration activities had decided to adjust all 88 tariff lines.

"The domestic market absorbs 21,000 to 22,000 tonnes of cigarettes," Ruzic said.

Ruzic explained that the quota of 1,625 tonnes did not apply just to Croatia, but to the entire EU and that cigarette imports falling outside that quota would be subject to a customs rate of 58%.

He was referring to the annual quota of 1,625 tonnes of cigarettes from the Rovinj tobacco factory in Croatia, which had been subject to a customs rate of only 15% under the terms of the Central European Free Trade Agreement (CEFTA) of which Croatia had been a member, while the customs duty on cigarette imports from the EU had been 57%.

Ruzic said that Serbian cigarette exports to the EU, including Croatia, would not be subject to customs duties because the zero customs rate would apply, adding that this would be an additional opportunity for the Serbian economy.

"The issue of the cigarette imports quota is not a bilateral issue, but one that is discussed with the European Union rather than with each member state individually," he said.

The European Commission said on Wednesday that Serbia had agreed to maintain the 15% customs rate for cigarette imports from Croatia, which prompted a heated debate in the Serbian parliament about whether Belgrade had agreed to this and under what conditions. In an interview with the national broadcaster RTS on Wednesday evening, President Tomislav Nikolic said he would request a report on the matter. Enditem