Parties which import goods into Kosovo must observe the rules and methods laid down in the Customs and Excise Code (03/L-109/2008, as amended) in order to calculate customs duties.

Customs duties are calculated based on the customs value of imported goods according to the Harmonised Commodity Description and Coding System, as advocated by the World Customs Organisation. A 10% customs tariff is added to the customs value of the imported goods.

In determining the customs value of the imported goods, the following costs are added to the paid or payable price when incurred by the buyer or importer:

• commission and brokerage, except for buying commission;
• the cost of containers (which are treated as being part of the imported goods for customs purposes);
• the cost of packing (labour or materials);
• royalties and licence fees relating to the goods payable by the buyer, either directly or indirectly, as a condition of sale of the goods;
• the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller;
• the cost of transport and insurance of the imported goods; and
• loading and handling charges associated with transport of the imported goods to the point of entry into Kosovo.

In addition, the value of the following goods and services is added to the paid or payable price related to the production and sale of the imported goods:

• materials, components, parts and similar items incorporated in the imported goods;
• tools, dyes, moulds and similar items used in the production of the imported goods;
• materials consumed in the production of the imported goods; and
• engineering, development, artwork, design work, plans and sketches.

The above additions should be made only on the basis of objective and quantifiable data.

When following the customs procedure in Kosovo, the importer should present to Customs the necessary documents supporting the paid or payable price of the imported goods, as well as the additional costs required for calculation of the customs value.

The code provides for the following costs, which are not included in the customs value, provided that such costs are shown separately from the price actually paid or payable:

• charges for the transport of goods after their arrival at the point of entry into Kosovo;
• charges for construction, erection, assembly, maintenance or technical assistance undertaken after import (eg, industrial plant, machinery or equipment);
• charges for interest under a financing arrangement when certain conditions are fulfilled;
• charges for the right to reproduce imported goods in Kosovo;
• buying commissions; and
• import duties or other charges payable in Kosovo by reason of the import or sale of the goods.

For further information please contact Mirjeta Emini at Boga & Associates by telephone (+355 42251050), fax (+355 42251055) or email (memini@bogalaw.com).

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