The Serbian Parliament ratified an additional Protocol to the Central European Free Trade Agreement (CEFTA) that concerns trade facilitation, the concept of “originating products,” and methods of administrative cooperation.
Serbia is a member of the CEFTA along with Albania, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, and UNMIC/Kosovo as customs territory. This is the first multilateral free trade agreement in southeast Europe.
Under the new Protocol, CEFTA signatories are to simplify inspections related to all clearance procedures and reduce formalities as much as possible. Also, the status of “Authorised Economic Operator” (AEO) will be granted by each CEFTA signatory country and AEO status will be recognised by the other CEFTA member countries.
Under the measures, the work and processing conducted by one CEFTA member country will be considered as having been carried out by any other CEFTA country when the products undergo some type of subsequent work or processing. Concerning the country of origin, when two or more of the countries are involved, the products will be considered as originating in the CEFTA region only if the work and processing goes beyond certain operations (as referred to by the CEFTA provisions).
Read an October 2018 report prepared by the KPMG member firm in Serbia
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
John L. McLoughlin
Luis (Lou) Abad
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