WT/REG242/1  
27 November 2013  
(13-6493)  Page: 1/32  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN THE EURO PEAN UNION AND BOSNIA HERZEGOVINA 
(GOODS) 
Report by the Secretariat 
This report, prepared for the consideratio n of the Free Trade Agreement between the 
European Community and Bosnia Herzegovina has been drawn up by the 
WTO Secretariat on its own responsibility and in full consultation with the Parties. The 
report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Rohini Acharya 
(tel: +41 22 739 5874). Any statistical questions arising from this report may be addressed to Rowena Cabos (tel: +41 22 739 5185). 
 WT/REG242/1 
 
- 2 - 
 
  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 3  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 5  
2.1   Background  Information ............................................................................................. 5  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 6  
3.1   Import duties and charges, and quantitative restrictions ................................................. 6  
3.1.1   General provisions .................................................................................................. 6  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 7  
3.1.3   Liberaliza tion schedule............................................................................................. 8  
3.1.4   Tariff rate quotas ................................................................................................... 10 
3.2   Rules of origin .......................................................................................................... 10 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 12 
3.4   Regulatory Provisions of the Agreement ....................................................................... 13 
3.4.1   Standards ............................................................................................................. 13 
3.4.2   Safeguard mechanisms ........................................................................................... 13 
3.4.3   Anti-dumping and countervailing measures ............................................................... 14 
3.4.4   Subsidie s and State-aid .......................................................................................... 15 
3.4.5   Customs-re lated procedures .................................................................................... 16 
3.4.6   Other regulations ................................................................................................... 17 
3.5   Sector-Specific Prov isions of the Agreement ................................................................. 17 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 18  
4.1   Tran sparency ........................................................................................................... 18 
4.2   Current payments and capital movements .................................................................... 18 
4.3   Exceptions ............................................................................................................... 18 
4.4   Accession and Withdrawal .......................................................................................... 18 
4.5   Institutio nal framework ............................................................................................. 18 
4.6   Disput e settlement ................................................................................................... 19 
4.7   Relationship with other agr eements concluded by the Parties .......................................... 21 
4.8   Government  procurement .......................................................................................... 23 
4.9   Intellectual Property Rights ........................................................................................ 23 
4.9.1   Competition policy ................................................................................................. 25 
ANNEX 1 ....................................................................................................................... . 26 
ANNEX 2 ....................................................................................................................... . 31 
 WT/REG242/1 
 
- 3 - 
 
   
Key Facts 
 
Parties to the Agreement:  European Union and 
Bosnia Herzegovina 
 
Date of Signature:   16 June 2008 
 
Date of Entry into Force: 1 July 2008 
 
Date of Notification:  11 July 2008 
 
Full implementation :  1 July 2013  
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Interim Agreement on Trade and Trad e-Related Matters (hereafter "the Agreement") 
between the European Union (the EU which was the European Community at the time) and Bosnia 
and Herzegovina was signed on 16 June 2008 and entered into force on 1 July 2008. It forms part of the EU's Stabilization and Association proce ss with the Balkan nations and covers trade in 
goods. 
1.2.  The size and structure of the two economie s is considerably different. The EU's GDP in 2012 
was estimated at €12.9 trillion compared to €13.3 billion for Bosnia and Herzegovina. The EU exported mainly manufactured goods (79.1% of total merchandise exports) and imports 
manufactures and fuels and mineral products (53.7% and 34.6% respectively) in 2012, while 
Bosnia and Herzegovina's exports and imports were dominated by manufactures (59.8% of 
exports and 56.3% of imports) and fuels and mine ral products (22.8% of exports and 23.8% of 
imports). The EU is also the world's largest trad er of merchandise, while Bosnia and Herzegovina 
ranked 84
th and 65th in world merchandise trade in 2011. Trade with the EU is important for Bosnia 
and Herzegovina. The EU is its largest trading partner for both exports and imports (in 2012 57.8% of its exports went to the EU and 46.9% of  its imports were sourced from the EU). Bosnia 
and Herzegovina ranks 56
th in terms of export destination and 62nd as source of imports for the 
EU.2 
1.3.  Chart 1.1 shows the Parties' recent trends in merchandise trade both globally and bilaterally. 
Since 2000 both Parties have maintained trade defi cits in their global trade, with Bosnia and 
Herzegovina in particular having a substantial deficit during 2000-2012 of between €3 billion in 2000, peaking at €4.9 billion in 2008 before falling ba ck to €3.8 billion by the end of 2012. In their 
bilateral trade, the EU has maintained a steady trade surplus with Bosnia and Herzegovina. 
1.4.  Chart 1.2 below shows the product composition of the Parties' merchandise trade with the 
world and with each other based on broad HS Section categories. Of Bosnia and Herzegovina's four largest export categories (base metals, machinery, minerals and wood products) which accounted 
during 2005-07 for 61% of its global exports, base  metals and machinery account for the EU's two 
largest import categories from Bosnia and Herzeg ovina (43%). Of the EU's three largest export 
categories (machinery, vehicles and chemicals) which accounted for 59% of its global exports in 
2005-07, machinery, vehicles and chemicals (along with base metals) were also among Bosnia and 
Herzegovina's largest import categories from the EU (the three accounted for 43% of its imports from the EU). 
                                               
1 Unless otherwise indicated, data in this Sectio n is sourced from the WTO's Trade Profiles and the 
UNSD Comtrade Database. The data includes 27 Member States of the EU. 
2 Eurostat database. WT/REG242/1 
 
- 4 - 
 
  Chart 1.1 EU and Bosnia and Herzegovina: Me rchandise bilateral trade and with world 
05101520
01,0002,0003,0004,0005,000
2 0 0 02 0 0 22 0 0 42 0 0 62 0 0 82 0 1 02 0 1 2A. EU 2000-2012
(€ billions)
Imports from Bosnia&Herzegovina (Right Axis)
Exports to Bosnia&Herzegovina (Right Axis)
Total Imports
Total Exports
05101520
05101520
2000 2002 2004 2006 2008 2010 2012B. Bosnia and Herzegovina 2000-2012 
(€ billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
 
 
Note: Bosnia and Herzegovina's bilateral trade in 2000-2002 reflects mirror statistics from Eurostat. 
 Source: Eurostat, Unctad an d UNSD Comtrade database. 
 
Chart 1.2 EU and Bosnia and Herzegovina: pr oduct composition of merchandise trade, 
annual average (2005-2007) 
25
18
11108853327EU imports from Bosnia&Herzegovina(%)
25
23
7776433212EU's Global Imports (%)
27
13
1297655313Bosnia&Herzegovina's Global Exports (%)
22
12
10
97665333310Bosnia&Herzegovina's imports from EU 
(%)
17
15
11
10985543311Bosnia&Herzegovina's Global Imports(%)
30
15
14755433311EU's Global Exports(%)Total: €1.6 billion Total: €1,328 billion
Total: €6.3 billionTotal: €1,166 billionTotal:  €2.6 billion
Total:  €3.1 billion
Animal 
products
Vegetables
Prepared 
foodsChemicals
PlasticsRaw hides & 
skins
Wood& articles of wood
Wood pulpPrecious 
stonesBase 
metals
VehiclesOptical
OtherMiscellaneousMinerals
Machinery FootwearTextiles
 
 
Source: Eurostat and UNSD, Comtrade database. 
 WT/REG242/1 
 
- 5 - 
 
  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Agreement forms part of the EU's stab ilization and association process with the Balkan 
countries launched by the EU in 2000 at the Za greb Summit and strengthened further at the 
Thessaloniki Summit in June 2003. The process is intended to establish a close and lasting 
relationship based on reciprocity and mutual interest to enable Bosnia and Herzegovina to further strengthen and extend its relationship with the EU.  
2.2.  The Agreement was signed on 16 June 2008 and entered into force on 1 July 2008. It was 
notified to the WTO by the EU on 11 July 2008 under Article XXIV:7(a) of the GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 (WT/REG242/N/1). The text of the Agreement along with its schedules, annexes and protocols is available on the Website of the 
EU at: 
 http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2008:169:0013:0807:EN:PDF  
2.3.  The Agreement has four Titles and six annexes and protocols each as detailed in Box 2.1 
below.  
Box 2.1 Structure of the Agreement 
Title I General Principles 
Title II Free Movement of Goods 
- Chapter I Industrial Products 
- Chapter II Agriculture and Fisheries 
- Chapter III Common Provisions 
Title III Other Trade and Trade- Related Provisions 
Title IV Institutional, General and Final Provisions 
Annexes  
Annex I Tariff Concessions of Bosnia and Herzegov ina for Community Industrial products 
Annex II Definition of "baby beef" products 
Annex III Tariff Concessions of Bosnia and Herzegov ina for agricultural primary products 
originating in the Community 
Annex IV Duties applicable to goods originating in Bosnia and Herzegovina on import into the 
Community 
Annex V Duties applicable to goods originating in the Community on import into Bosnia and 
Herzegovina 
Annex VI Intellectual, industrial and commercial property rights 
Protocols   
Protocol 1 On trade between the Community and Bosnia Herzegovina in processed agricultural 
products 
Protocol 2 Concerning the definition of  the concept of "originating products" and methods of 
administrative co-operation for the application of the provisions of this Agreement 
between the Community and Bosnia and Herzegovina 
Protocol 3 On State aid to the steel industry 
Protocol 4 On mutual administrative assistance in customs matters 
Protocol 5 Dispute settlement 
Protocol 6 On reciprocal preferential concessions for certain wines, the reci procal recognition, 
protection and control of wine, spirit  drinks and aromatized wine names 
Source:  The Agreement. WT/REG242/1 
 
- 6 - 
 
  2.4.  The Parties agree in Article 2 in the Agreement which is contained in Article 9 in the 
Stabilization and Association Agreement (SAA) that  the Agreement shall be fully compatible with 
and implemented in a manner consistent with the relevant WTO provisions, in particular Article XXIV of the GATT 1994 and Article V of the GATS. They agree in Article 3 (Article 18 in the 
SAA) to gradually establish a free trade area over a maximum period of five years from the entry 
into force of the Agreement (by 1 January2013).
3 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  In meeting their commitments to gradually  implement the free trade area, the Parties agree 
to apply the EU's Combined Nomenclature (CN) to  the classification of goods in trade between 
them. The basic duty to which successive tariff reductions are to be applied are the Community 
Common Customs Tariff established pursuant to Council Regulation (EEC) No 2658/87 applied erga omnes  on the date of signature of the Agreem ent and Bosnia and Herzegovina's applied 
customs tariff for 2005.
4 Any tariff reduction after the Agreement was signed is to be applied on an 
erga omnes  basis especially if it results from WTO tariff negotiations, the accession to the WTO of 
Bosnia and Herzegovina or from subsequent reductions following its accession to the 
WTO (Article 3 of the Agreement). The Parties agree to communicate to each other their basic 
duties and any changes thereof. Furthermore, under  Article 8, Bosnia and Herzegovina is ready to 
reduce its customs duties for industrial products mo re rapidly than provided under Article 6, if its 
general economic situation and that of the economic sector concerned so permit. The Interim 
Committee established by the Agreement (see Sectio n 4.5 below) will analyse the situation and 
make relevant recommendations. 
3.2.  The Agreement covers agricultural and non-agricultural products as in the WTO definition.5 
With regard to non-agricultural products,6 customs duties on imports into the EU and charges 
having equivalent effect are to be abolished upon entry into force of the Agreement, whereas for Bosnia and Herzegovina, import duties are to be eliminated for imports from the EU for all 
products either immediately or through progressive reductions, as listed in Annex I of the 
Agreement; equivalent charges on imports are to be eliminated immediately (Articles 5 and 6).
7  
3.3.  For agricultural products the EU will abolish customs duties and charges having equivalent 
effect other than those under headings 0102, 0201, 0202, 1701, 1702 and 2204 on the date of 
entry into force of the Agreement. In HS Chapters 7 and 8, only the ad valorem  p a r t  o f  t h e  
compound duty will be eliminated. Tariff rate quotas apply for "baby beef" products and products in 1701 and 1702 (see Section 3.1.4 and Annex 2 below) . Bosnia Herzegovina will from the date of 
entry into force of the Agreement abolish import duties for certain agricultural products listed in 
Annex III(a) and progressively reduce import duties for products listed in Annexes III(b-d) in accordance with the timetables indicated therein. Tariff rate quotas apply to imports of products 
listed in Annex III(e) (see Section 3.1.4 below). For processed agricultural products, Protocol 1 of 
the Agreement lists products for which import duties are to be eliminate or gradually reduced 
                                               
3 A key general principle is also respect for democratic  principles and human rights as proclaimed in the 
Universal Declaration of Human Rights and as defined in  the Convention for the Protection of Human Rights 
and Fundamental Freedoms in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for principles of international law, including full co-operation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and the rule of law as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Econ omic Co-operation, shall form the ba sis of the domestic and external 
policies of the Parties (Article 2). 
4 As indicated respectively in the EC's Official Journal L 256, 7.9.1987, p. 1, as amended, and the 
Official Gazette of Bosnia and Herzegovina No 58/04 of 22.12.2004. 
5 Under the WTO Definition, agricultural products are those in Chapters 1-24 plus products listed in 
Annex I, paragraph I(ii) of the WTO Agreement on Agriculture. 
6 Industrial goods are defined as pr oducts in HS 25-97 minus products in Annex I, paragraph I(ii) of the 
WTO Agreement on Agriculture. 
7 The Agreement defines customs duties and charges having equivalent effect as any duty or charge of 
any kind imposed in connection with th e import or export of a good, including any form of surtax or surcharge 
in connection with such import or export;  they do not include charges equivalent to an internal tax imposed 
consistently with the provisions of paragraph 2 of Article III of the GATT 1994; anti-dumping or countervailing measures;  and fees or charges commensurate with  the costs of services rendered (Article 3:3). WT/REG242/1 
 
- 7 - 
 
  (Annex I for the EU and Annex II for Bosnia and Herzegovina). The list of products covered may be 
extended or amended by the Interim Committ ee formed under the Agreement which may also 
agree increases in or the abolition of tariff rate quotas. Finally duties or charges having equivalent effect for fish and fishery imports by the EU (except those listed in Annex IV) and by Bosnia and 
Herzegovina (except those listed in Annex V) were to be abolished upon entry into force of the 
Agreement (Article 13). With regard to agriculture and fishery products, the Parties also agree that taking account of the volume of bilateral trade in these products, their particular sensitivities, of 
their respective agricultural and fisheries rules and policies, of the consequences of WTO 
multilateral trade negotiations and full membersh ip of Bosnia and Herzegovina in WTO, no later 
than three years following the entry into force of  the Agreement, they will examine within the 
Interim Committee the opportunities for granting each other further concessions with a view to 
implementing greater liberalization of trade for all agriculture and fishery products (Article 14). 
3.4.  No new customs duties on imports (or exports) or charges having equivalent effect will be 
introduced, nor will those already applied by increased in the Parties' mutual trade (Article 19:1). 
3.5.  The Parties also agree that from the date of  entry into force of the Agreement, quantitative 
restrictions and measures having equivalent effect  on mutual imports will be removed (Articles 5 
and 6 for industrial products, Article 11 for agricultural and fishery products). In addition, no new 
quantitative restrictions on imports (and exports) or measures having equivalent effect will be 
introduced, nor will existing measures be made more restrictive in their mutual trade (Article 19:2). 
3.6.  Notwithstanding these commitments, the standst ill provisions of Article 34 will not restrict in 
any way the pursuit of the respective agricultural and fisheries policies of the Parties and the 
taking of any measures under these policies insofar as the import regimes in Annexes III-V and Protocol 1 are not affected (Article 19:3). The Parties also agree to refrain from establishing or 
abolish where existing, measures or practices of an internal fiscal nature (direct or indirect) which 
discriminate between the products of one Party and like products originating in the other Party. Products exported to each others' territories may also not benefit from refunding of local indirect 
taxes in excess of the amount imposed on them (Article 20). 
3.1.2  Liberalization of trade and tariff lines  3.7.  Tariff and trade liberalization for both Parties is detailed in Tables 3.1A and B for the EU and 
Bosnia and Herzegovina respectively. At the time  the Agreement entered into force in 2008, the 
EU already provided duty-free treatment on an M FN basis for 24.4% of its tariff, corresponding to 
34% of its average imports from Bosn ia and Herzegovina during 2005-2007.
8 A further 72.9% of 
the tariff (7,070 tariff lines) was liberalized for imports from Bosnia and Herzegovina, which 
corresponded to 65.4% of EU imports from Bo snia and Herzegovina during 2005-07. Once the 
Agreement was fully implemented in 2008 258 tariff lines or 2.7% of the tariff, accounting for 0.6% of EU imports from Bosnia and Herzegovina in 2005-07, continue to remain dutiable. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade A. EU
 
Duty phase-out 
period Number 
of lines % of total 
lines in 
EU's tariff 
schedule Value of EU imports from 
Bosnia and Herzegovina 
(2005-2007) in million € % of EU's total 
imports from Bosnia 
and Herzegovina 
2005-2007 
MFN duty free (2008)  2,371 24.4 511.4 34.0 
2008 7,070 72.9 984.0 65.4 
Remain dutiable 258 2.7 9.1 0.6 
Total 9,699 100.0 1,504.5 100.0 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations.  
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data pr ovided by EU and Eurostat database. 
                                               
8 In 2008 when the Agreement entered into force, the EU's MFN applied tariff consisted of 9,699 lines at 
the HS 8-digit level. Of these 89.98% had ad valorem  rates of duty. Of the remaining 972 lines 613 had 
specific rates of duty, 211 compound rates and 108 had mixed rates of duty; 40 lines had other rates of duty. WT/REG242/1 
 
- 8 - 
 
  3.8.  For Bosnia and Herzegovina, when the In terim Agreement entered into force in 2008, 3,091 
tariff lines (29.6%) were duty free for all sources of imports, corresponding to a value of 15.4% of its imports from the EU during 2005-07.
9 As a result of the starting of the implementation of the 
Interim Agreement a further 23.2% of the tariff lines were fully liberalized for imports from the EU, 
corresponding to 32.3% of Bosnia and Herzegovina's imports from the EU during 2005-07. A 
further 2,512 (24%), 1,392 (13.3%) and 693 (6.6%) lines were fully liberalized respectively in 2009, 2011, and 2013. Following implementation of  the Agreement Bosnia and Herzegovina will 
maintain tariffs on 345 lines (3.3% of the tariff), co rresponding to 2.8% of its imports from the EU 
in 2005-07. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
B. Bosnia and Herzegovina 
 
Duty phase-out 
period Number 
of lines % of total lines 
in Bosnia and 
Herzegovina's 
tariff schedule Value of Bosnia and 
Herzegovina imports  
from EU 
(2005-2007) in 
million € % of Bosnia and 
Herzegovina's 
total imports 
from EU 
2005-2007 
MFN duty free (2008)  3,091 29.6 408.9 15.4 
2008 2,426 23.2 858.2 32.3 
2009 2,512 24.0 741.1 27.9 
2011 1,392 13.3 352.4 13.3 
2013 693 6.6 219.0 8.3 
Remain dutiable 345 3.3 74.4 2.8 
 
     
Total 10,459 100.00 2,653.9 100.0 
 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations.  
 Based on the HS 2007 nomenclature. 
 Source:  WTO estimates based on data provided by Bosnia and Herzegovina to EU authorities, Eurostat 
database (mirror data). 
 
3.1.3  Liberalization schedule 
3.9.  Further details about the Parties' tariff elimination under the Agreement are presented by 
broad HS Section in Tables 3.2 and 3.3 and by HS Chapter in Chart 3.1 below. Both tables below 
show that once the agreement is fully implemente d by the Parties, tariffs will remain in HS 
Sections I, II and IV (live animals and animal products, vegetable products and prepared foodstuffs). The average final tariffs by broad HS  Section will range from 8.8% to 14.1% for the 
EU and 7.7% to 13.6% for Bosnia and Herzegovina.  
3.10.  Chart 3.1 shows that the remaining tariffs are found in HS Chapters 1-3, 7, 8, 16, 17 and 
22 for the EU and HS Chapters 1-4, 6-8, 16, 17, 19, 20, 22 and 24 for Bosnia and Herzegovina. Bosnia and Herzegovina's final average preferential  duties are the same as the applied average in 
these Chapters, thus no preferential liberaliza tion of these tariffs has taken place under the 
Agreement. In the case of the EU the average pref erential tariff is the same as the average MFN 
tariff for the corresponding lines in HS Chapters 1, 2, 17 and 22 implying no preferential 
liberalization for these tariffs. In Chapters 3 and 16, the average MFN rates are 11.9% and 18.4%, 
compared to a lower preferential average of 6.8%  and 13.8% respectively. In Chapter 7 only the 
ad valorem  duty is eliminated by the Agreement for four tariff lines which continue to be subject to 
specific and ad valorem  duties on an MFN basis and for which no ad valorem  equivalents are 
available. In addition, the rates for four other tariff lines depend on the price at which the products are imported.
10 In Chapter 8 all remaining tariffs are specific for which no ad valorem  equivalents 
are available. 
                                               
9 In 2008 when the Agreement entered into force, Bo snia and Herzegovina's applied tariff consisted of 
10,459 lines at the HS 8-digit level. Some 92.88% of the tariff (9,714 lines) was subject to ad valorem  rates of 
duty. Of the remainder, 738 lines had compound rates of duty while 7 lines carried specific rates. 
10 The products are tomatoes (HS 07020000), courgettes (HS 07099070), cucumbers (HS 07070005) 
and artichokes (HS 07099080). WT/REG242/1 
 
- 9 - 
 
  Table 3.2 EU: Tariff elimination under the Agreement, by HS section  
HS 
section MFN 
average% Total No. 
of lines MFN duty-
free (2008)  Number of duty-
free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) % 
2008 
I 10.3 796 78 659 59 8.8 
II 5.9 526 123 360 43 11.0 
III 6.1 124 20 104   
IV 14.3 816 93 567 156 14.1 
V 0.9 244 157 87   
VI 4.2 1,279 339 940   
VII 4.7 351 67 284   
VIII 3.0 150 43 107   
IX 2.6 213 98 115   
X 0.0 220 220    
XI 7.9 1,193 45 1,148   
XII 8.0 113 2 111   
XIII 4.0 258 34 224   
XIV 0.7 63 48 15   
XV 1.9 998 510 488   
XVI 2.5 1,477 305 1,172   
XVII 4.7 287 32 255   
XVIII 2.5 339 90 249   
XIX 2.2 27 5 22   
XX 2.6 218 55 163   
XXI 0.0 7 7    
Total 5.0 9,699 2,371 7,070 258 10.9 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by EU. 
 
Table 3.3 Bosnia and Herzegovina: Tariff elimination under the Agreement, by 
HS section  
HS 
section MFN 
average
% Total 
No. of 
lines MFN duty-
free (2008) Number of duty-free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2008  2009 2011 2013 
I 5.7 833 285 209 12 117 112 98 9.8 
II 3.7 542 230 130 68 29 29 56 7.7 
III 2.5 124 62 60 2     
IV 10.0 843 49 262 67 130 144 191 13.6 
V 1.2 259 214  27 12 6   
VI 2.6 1,350 735 173 438  4   
VII 6.6 376 113 32 180 47 4   
VIII 6.5 151 19  68 55 9   
IX 3.6 216 92 29 73 22    
X 5.6 237 63 17 74 81 2   
XI 10.5 1,193 67 283 86 482 275   
XII 13.8 114  6  57 51   
XIII 7.8 273 23 34 80 112 24   
XIV 5.4 67 28  12 20 7   
XV 5.5 1,066 315 257 417 77    
XVI 5.6 1,801 496 647 597 61    
XVII 6.0 347 85 151 95 5 11   
XVIII 3.8 402 192 135 75     
XIX 11.3 28 6 1 1 19 1   
XX 8.9 230 13  137 66 14   
XXI 2.1 7 4  3     
Total 6.1 10,459  3,091 2,426  2,512 1,392 693 345 11.6 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by  Bosnia and Herzegovina to the EU authorities. WT/REG242/1 
 
- 10 - 
 
  Chart 3.1 Average of dutiab le rates, by HS Chapter 
010203040
1 2 3 *7 *8 16 17 22EU
010203040
1234678 1 6 1 7 1 9 2 0 2 2 2 4Bosnia and HerzegovinaAverage rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
* In the case of EU, the preferential rate under HS chapter 7 and 8 contains specific duties only. 
 Source: WTO Secretariat estimates based on the data provided by the authorities.  
3.1.4  Tariff rate quotas 
3.11.  Tariff rate quotas are applied by the EU for baby beef products, fish (trout, carp, sea bream, 
sea bass, and prepared or preserved sardines and anchovies) and wine under the Agreement. With 
the exception of prepared or preserved sardines and anchovies, the in-quota duties are zero, and 
the out of quota duties provide a margin of pref erence over the applied MFN tariff. Furthermore, 
for all but wine, and prepared or preserved sardines  and anchovies, the out of quota duty declines 
further on 1 January 2009 and 1 January 2010, followi ng which the rate is maintained indefinitely. 
(Annex Table 2.1). For wine, in-quota duties are zero subject to the condition that the products do not benefit from export subsidies in Bosnia  and Herzegovina (Annex I to Protocol 6). 
3.12.  Bosnia Herzegovina maintains tariff rate quot as for imports of wine from the EU on condition 
that they do not benefit from export subsidies in the EU (Annex Table 2.2). 
3.13.  The Parties also agree to examine, no late r than three years after entry into force of the 
Agreement, opportunities for granting each other further concessions taking into account the 
development of their bilateral wine trade. They  shall also ensure that the benefits granted 
reciprocally are not called into question by other measures and that consultations shall take place 
at the request of either Party on any problem relating to the way Annex 1 to Protocol 6 operates.  
3.2  Rules of origin 3.14.  Rules of origin are covered by Protocol 2 of the Agreement (Article 27). The following goods 
qualify for preferential treatment under the Agreement: (i) products wholly obtained in the EU or 
in Bosnia and Herzegovina as defined in Article 5; and (ii) products obtained in the EU or Bosnia 
and Herzegovina incorporating materials which are not wholly obtained there, provided that such materials have undergone sufficient working or processing within the EU or Bosnia and WT/REG242/1 
 
- 11 - 
 
  Herzegovina as defined in Article 6.11 For sufficient working or processing, the products must have 
fulfilled the conditions set out in Annex II. In mo st cases, the requirement is a change in tariff 
classification (CTC) on the basis of HS Chapters and sub-headings. In some cases either a CTC or a minimum content (MC) requirement applies.  The MC requirement generally allows non-
originating materials to have a value of up to a certain percentage of the ex-works price of the 
product, 40% in most cases, but lower values of up to 25% may also apply (the exact values are provided in Annex 2). If a product has acquired originating status by fulfilling these conditions, the 
conditions applicable to the product in which it is incorporated do not apply to it, and no further 
account shall be taken of the non-originating materials which may have been used in its manufacture (Article 6). Article 6 also provides for a general tolerance rule permitting the use of non-originating materials, except for textiles and clothing products (HS 50-63), if their total value 
does not exceed 10% of the ex-works price of  the product; and if the total MC limit for 
non-originating goods is not exceeded as a result. Operations considered as insufficient working or processing to confer originating status are described in Article 7.
12 Specific rules for determining 
the origin of spare parts, accessories and tools; sets; and neutral elements are described in 
Articles 9, 10 and 11, respectively. 
3.15.  Working or processing must normally be carried out in the territories of the Parties. 
Exceptions to this rule are for materials originating in the Parties (either wholly obtained in the 
Parties or qualifying under the conditions in Article 7) that are used in the manufacture of a product in a third party and the product is subsequently re-imported by the Parties, and if it can be demonstrated to the satisfaction of the customs authorities, that the re-imported goods have been 
obtained by working or processing the exported  materials; and the total value-added acquired 
outside the Parties does not exceed 10% of th e ex-works price of the end product for which 
originating status is claimed. The total value of these materials as well as total value-added 
acquired outside the Parties should also not result in the total MC limit for non-originating products 
being exceeded as a result (Article 12).
13 Re-imports of goods exported from the Parties which are 
the same as when exported or have not undergone any operation beyond that necessary to 
preserve them in good condition in the third pa rty or while being exported, are considered as 
originating. As in the case of the general tolerance rule, these exceptions do not apply to textiles and clothing products in HS Chapters 50-63. 
3.16.  Article 3 of Protocol 2 provides for di agonal cumulation betw een the EU, Bosnia and 
Herzegovina and any country or territory participating in the EU's Stabilization and Association 
process or incorporating materials originating in Turkey to which the Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 applies, providing that the working or 
processing carried out in the EU goes beyond the operations referred to in Article 7 while not 
requiring the materials concerned to have undergone sufficient working or processing. Where the working or processing does not go beyond the requ irements of Article 7, the product obtained shall 
be considered as originating in the EU only wher e the value added there is greater than the value 
of the materials used originating in any one of the other countries mentioned above. If not the case, the product shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the EU. Products originating in one of 
these countries which do not undergo processing in the EU retain their origin if exported into one 
of those countries or territories. Cumulation is only possible if there is a preferential trade 
agreement in accordance with GATT Article XXIV in force between the countries or territories 
involved in the acquisition of the originating status and country of destination, materials and 
products have acquired originating status by the application of rules of origin identical to those in protocol 2 of the Agreement, and notices indicating  the fulfilment of the necessary requirements to 
apply cumulation have been published in the Official Journal or equivalent of the Parties. According 
to the Parties diagonal cumulation currently applies to CEFTA countries for certain products according to different procedures/rules. In particul ar diagonal cumulation is currently applied to 
EU, Bosnia and Herzegovina and other countries or territory participating in the EU's Stabilization 
                                               
11 Under Articles 37 of Protocol 2, products originat ing in Bosnia and Herzegovina and imported into the 
Spanish territories of Ceuta or Melill a will have the same treatment as that provided when imported into the 
customs territory of the EU. Bosnia and Herzegovina will grant the same treatment as to other products imported from the EU for products originating in the territories. 
12 They include preserving operations to ensure that products remain in good condition during transport 
and storage; breaking up and assembly; washing, cleani ng etc.; ironing or pressing of textiles; and simple 
polishing and painting. 
13 Where total value added is all costs arising in the third party, included the value of the materials 
incorporated there. WT/REG242/1 
 
- 12 - 
 
  and Association process (CEFTA countries) and Tu rkey. Upon entry into force of the agreement 
b e t w e e n  B o s n i a  a n d  H e r z e g o v i n a  a n d  E F T A  d i a g o n a l  c u m u l a t i o n  w i l l  b e  e x t e n d e d  t o  E F T A  countries.  In addition, products originating in the Principality of Andorra (under 
HS Chapters 25-97) and the Republic of San Marino shall be accepted by Bosnia and Herzegovina 
as originating in the EU within the meaning of the Agreement.
14 
3.17.  Cumulation is not permitted for products in Annex V of Protocol 2. These are: sugar 
confectionary (HS17049099), chocolate and other food preparations containing cocoa 
(HS18061030 and HS18061090), other food preparat ions containing cocoa (HS18062095), malt 
extract (HS19019099), other preparations based on coffee (HS21011298), other preparations based on tea or maté (HS21012098), food preparations n.e.s. (HS21069059 and HS21069098) and mixtures of odoriferous substances and mixtures (HS33021029).  
3.18.  The Agreement does not permit duty draw back for non-originating materials used in the 
manufacture of products originating in the Parties or one of the other countries or territories with whom diagonal cumulation is permitted (Article 15).  
3.19.  Preferential treatment is granted only for goods satisfying the requirements of Protocol 2 
and which are transported directly between the Part ies or the other countries and territories with 
whom diagonal cumulation is permitted. However, products constituting one single consignment 
may be transported through other territories including trans-shipment or temporary warehousing 
in the third party, provided they remain under th e surveillance of the customs authorities in that 
party and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition (Article 13). Rules concerning originating goods which are sold 
after an exhibition in a third party which is not eligible for diagonal cumulation, are provided in 
Article 14. 
3.20.  Title V of Protocol 2 concerns procedures and documents required for certificates of rules of 
origin, including for certificates issued retrospectively (Article 18), duplicate certificates 
(Article 19), approved exporters (Article 23), and exemptions from requirements of certificates of origin (Article 27). Title VI contains arrangements for administrative co-operation. Verifications of 
proof of origin are carried out at random or wh enever the customs authorities of the importing 
country have reasonable doubt as to the authentici ty of the documents, the originating status of 
the products concerned or fulfilment of any of  the other requirements of the Protocol. The 
verification is carried out by the customs author ities of the exporting Party who shall have the 
right to ask for any evidence and carry out any inspection of the exporters' accounts or any other 
check considered appropriate. If the customs auth orities of the importing Party decide to suspend 
the granting of preferential treatment to the prod ucts concerned while awaiting the results of the 
verification, they will offer to release the products to the importer subject to any precautionary 
measures judged necessary. The results of the veri fication shall be given to the customs authority 
requesting it as soon as possible, indicating clearly whether the documents are authentic and 
whether the products concerned can be considered originating in the Parties or those countries 
with which diagonal cumulation is permitted. Failing a reply within ten months of the date of the verification request, or if the reply does not pe rmit the determination of the authenticity of the 
documents or the real origin of the product, the requesting customs authorities will, except in 
exceptional circumstances, refuse entitlement to pr eferences (Article 33). Any disputes relating to 
verification which cannot be settled between th e authorities requesting and carrying out the 
verification, or where they raise questions on the interpretation of the Protocol, they shall be 
submitted to the Interim Committee. All disputes between the importer and customs authority of 
the importing Party shall be settled under the legislation of that Party (Article 34). 
3.3  Export duties and charges,  and quantitative restrictions 
3.21.  Under Article 7, which deals with industrial products the Parties agree to abolish any 
customs duties on exports and charges having equivalent effect in trade between them upon the entry into force of the Agreement. They also agree to abolish any quantitative restrictions on exports and measures having equivalent effect in trade between themselves, upon the entry into 
force of the Agreement. 
                                               
14 Joint Declaration Concerning the Pr incipality of Andorra and Joint De claration Concerning the Republic 
of San Marino. WT/REG242/1 
 
- 13 - 
 
  3.22.  No new customs duties on exports (or imports) or charges having equivalent effect will be 
introduced, nor will those already applied by increased in the Parties' mutual trade. In addition, no new quantitative restrictions on exports (or imports) or measures having equivalent effect will be introduced, nor will existing measures be made more restrictive in their mutual trade (Article 34). 
3.4  Regulatory Provisions of the Agreement 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.23.  There are no provisions in the Interim Ag reement dealing with the obligation of the Parties 
to apply their sanitary and phytosanitary measures in line with WTO requirements. In Article 95 of the Stabilization and Association Agreement, Bosnia and Herzegovina is obliged to reach EU veterinary and phytosanitary requirements and to work on progressive approximation of its' 
legislation and practices in this fiel d to the EU's rules and standards. 
3.4.1.2  Technical barriers to trade 3.24.  There are no provisions in the Interim Ag reement dealing with technical barriers to trade. 
Article 75 of the Stabilisation and Associatio n Agreement covers standards, metrology, 
accreditation and conformity assessment. It requires Bosnia and Herzegovina to take necessary measures to gradually achieve conformity with EU technical regulations and standardization, 
metrology, accreditation and conformity assessment procedures.  
3.4.2  Safeguard mechanisms 3.4.2.1  Global safeguards 3.25.  Article 24 of the Agreement permits the Partie s to take safeguard actions. The provisions of 
Article XIX of GATT 1994 and the WTO Agreements on Safeguards are applicable between the 
Parties (Article 24:1). 
3.4.2.2  Bilateral safeguards 
3.26.  Notwithstanding the provisions of Articl e 24:1 (see 3.4.3.1 above), where any product of 
one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause serious injury to the domestic industry of 
like or directly competitive products in the territory of the importing Party, or serious disturbances 
in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region of the importing Party, the latter may take appropriate bilateral safeguard measures under the conditions and in accordance with the procedures in Article 39 
(Article 24:2). 
3.27.   The measure shall not exceed that necessary to remedy the problem as defined in 
Article 24:2, which has arisen as a result of the application of the Agreement. The measure should 
consist of a suspension in the increase or in th e reduction of the margins of preference provided 
for under the Agreement for the product concerned up to a maximum limit corresponding to the basic duty in Articles 3(4)(a) and (b) and 6 for the same product. The measure shall contain clear 
elements progressively leading to its elimination at the end of the set period, at the latest, and 
shall not be in place for more than two years (which in very exceptional circumstances could be extended for a further period of a maximum of tw o years). No bilateral safeguard may be applied 
to a product that has previously been subject to such a measure for at least four years since the 
expiry of the measure (Article 24:3). 
3.28.  Before taking measures in the cases specified in Article 24, and as soon as possible, the 
Parties shall supply the Interim Committee with all relevant information required for a thorough 
examination of the situation, with a view to seeking a mutually acceptable solution. Where 
exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party concerned may, in the situations specified in Article 29, apply 
provisional measures necessary to deal with the situation and shall inform the other Party WT/REG242/1 
 
- 14 - 
 
  immediately thereof (Article 24:5(b)). If the Interim Committee or the exporting Party has not 
taken a decision to end the problems, or no other satisfactory solution has been reached within 30 days of referral to the Interim Committee, the importing Party may adopt the appropriate measures to remedy the problem in accordance with Article 24. In the selection of safeguard 
measures, priority must be given to those which least disturb the functioning of the arrangements 
established in the Agreement (Article 24:5(a)). Safeguard measures applied in accordance with Article XIX of GATT 1994 and the WTO Agreement on Safeguards shall preserve the level or 
margin of preference granted by the Agreement. 
3.29.  The measures taken shall be notified immediately to the Interim Committee and will be 
subject to periodic consultations, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit. In the event of a Party subjecting imports of products 
liable to give rise to the problems referred to in Article 24 to an administrative procedure in order 
to rapidly provide information on trends in trade flows, it shall inform the other Party (Art. 24:6). 
3.4.2.3  Balance of payments safeguards 
3.30.  Where one or more EU Member States or Bosnia and Herzegovina is in serious balance of 
payments difficulties or under immediate threat ther eof, the EU or Bosnia and Herzegovina may, in 
accordance with the conditions established by the WTO Agreement, adopt restrictive measures, 
including measures related to imports, which shal l be of limited duration and may not go beyond 
what is strictly necessary to remedy the situation. The Parties shall nevertheless endeavour wherever possible to avoid the imposition of restrictive measures, including measures relating to imports for bop reasons (Article 34:1) especially on transfers relating to investment. Paragraph 3 
of Article 34 should be read in connection of paragraphs 1 and 2 of the same article. A Party 
adopting such measures shall present to the other Party as soon as possible a timetable for their removal. Any restrictive measure shall not apply to transfers related to investment and in 
particular to the repatriation of amounts invested  or reinvested or any ki nd of revenues stemming 
therefrom. 
3.4.2.4  Shortage Clause 
3.31.  Article 25 of the Agreement contains a shortage clause. In cases where compliance with the 
provisions of Title II (Free Movement of Goods) lead s to a critical shortage or threat thereof, of 
foodstuffs or other products that are essential for the exporting Party; or re-export to a third party of a product against which the exporting Party maintains quantitative export restrictions, export 
duties or measures or charges having equivalent effect, which give rise or are likely to give rise to 
major difficulties for the exporting Party, it may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 25. 
3.32.  In the selection of measures to be taken, priority must be given to those which least disturb 
the functioning of the arrangements in the Agre ement. The measures must not be applied in a 
manner which would constitute a means of arbitrary or unjustifiable discrimination where the same 
conditions prevail, or a disguised restriction on trade, and shall be eliminated when the conditions 
no longer justify their maintenance. The Interim Committee must be supplied with all relevant information before the measures are taken with a view to seeking a solution acceptable to the Parties. The Parties within the Interim Committee may agree on any means needed to end the 
difficulties but if no agreement is reached within 30 days of the referral to the Interim Committee, 
the exporting Party may apply measures under the Ar ticle on the export of the product concerned. 
In exceptional and critical circumstances which require immediate action and make prior 
information or examination impossible, the Party concerned may apply the precautionary 
measures necessary to deal with the situation and inform the other Party thereof. Any measures applied pursuant to Article 25 shall be immediatel y notified to the Interim Committee and shall be 
subject to periodic consultations in the Interim Committee particularly with a view to establishing a 
timetable for their elimination as soon as circumstances permit. 
3.4.3  Anti-dumping and countervailing measures 3.33.  Article 23 permits the Parties to take trade defence action. If one of the Parties finds that 
dumping or countervailable subsidization is taking place in trade with the other Party, that Party 
may take appropriate measures against this prac tice in accordance with the WTO Agreement on WT/REG242/1 
 
- 15 - 
 
  Implementation of Article VI of the GATT 1994 or the WTO Agreement on Subsidies and 
Countervailing Measures and the respective related internal legislation. 
3.4.4  Subsidies and State-aid 3.34.  Under Article 26 Bosnia and Herzegovina is required to adjust any State monopolies of a 
commercial character to ensure that there is no discrimination in the conditions under which goods 
are procured and marketed between nationals of th e Member States of the EU and of Bosnia and 
Herzegovina. Article 36 on competition and other economic provisions (paragraph 1c) notes that 
any State aid which distorts or threatens to distort competition by favouring certain undertakings 
or products is incompatible with the proper functioning of the Agreement insofar as it affects trade between the Parties. To apply this provision during the first six years from entry into force of the Agreement, the Parties agree to assess any public  aid granted by Bosnia and Herzegovina, with 
Bosnia and Herzegovina for this purpose being regarded as an area identical to areas of the 
EU described in Article 87(3)(a) of the EC Treaty.
15 By the end of the fifth year following entry into 
force of the Agreement, Bosnia and Herzegovina shall submit to the European Commission its GDP 
per capita figures harmonized at NUTS II level. The information will be used by the European 
Commission and the independent public authority on State aid (see Section 4.10.1 below) to jointly evaluate the eligibility of the regions of Bosnia and Herzegovina and the maximum aid 
intensities in relation thereto to draw up the regional aid map on the basis of relevant 
EU guidelines. 
3.35.  Article 36 requires each Party to ensu re transparency in the area of State aid, inter alia  by 
providing a regular annual report to the other Party, following the methodology and presentation 
of the EU survey on State aid. Upon request, th e Parties shall provide each other information on 
particular individual cases of public aid. Bosn ia and Herzegovina in addition must establish a 
comprehensive inventory of aid schemes established before the establishment of the independent 
public authority on State aid (see Section 4.10.1 below) and shall align such aid schemes with EU 
legislation within not more than four years from the entry into force of the Agreement. The Parties 
indicate that the comprehensive State Aid inventor y was not established in the time foreseen in 
the Interim Agreement. It is currently in its final stages and Bosnia and Herzegovina has 
committed to submit it to the relevant EU authorities in due course. 
3.36.  With regard to public undertakings, by th e end of the third year following the entry into 
force of the Agreement Bosnia and Herzegovina shall apply to public undertakings and 
undertakings to which special and exclusive rights ha ve been granted, the principles set out in the 
EC Treaty, in particular Article 86. During this transition period, the special rights of public 
undertakings will not include the possibility of imposing quantitative restrictions or measures 
having an equivalent effect on imports from the EU into Bosnia and Herzegovina (Article 72). 
3.37.  Special rules on State aid for the restructuring of the Steel industry are provided in 
Protocol 3 of the Agreement. The Parties reco gnize the need for Bosnia and Herzegovina to 
promptly address any structural weaknesses of  its Steel industry to ensure its global 
competitiveness. Under paragraph 3 of Protocol 3 the EU recognizes that, during five years after 
the entry into force of the Agreement, Bosnia and Herzegovina may exceptionally grant State aid for restructuring to steel producing firms in difficulties subject to certain conditions: it leads to the 
long-term viability of the benefitting firms under normal market conditions at the end of the 
restructuring period; the amount and intensity of su ch aid are strictly limited to that absolutely 
necessary to restore viability and aid is, where appropriate, progressively reduced; and the 
country presents a restructuring programme linked to global rationalization which includes the 
closure of inefficient capacity. Furthermore, every st eel firm that receives restructuring aid, shall, 
as far as possible, provide for compensatory measures balancing the distortion of competition 
caused by the aid. 
3.38.  Bosnia and Herzegovina shall submit a Na tional Restructuring Programme for assessment to 
the European Commission and individual business pl ans for each of the companies benefiting from 
restructuring aid which demonstrate that these conditions are fulfilled. The European Commission 
shall confirm that the National Restructuring Programme is in compliance with the requirements of 
                                               
15 Article 87(3)(a) of the EC Treaty considers that aid to promote the economic development of areas 
where the standard of living is abnormally low or wh ere there is serious unemployment, may be considered 
compatible with the common market. WT/REG242/1 
 
- 16 - 
 
  paragraph 3 of Protocol 3 (see above). The individual business plans must be assessed and agreed 
by the public authority on State aid (see Section 4.10.1 below) also in view of their compliance 
with the requirements of paragraph 3 of Protocol 3. The European Commission shall monitor the implementation of the plans in close co-operation  with the competent national authorities, in 
particular the public authority on State aid. If the monitoring shows that aid to the beneficiaries 
which is not approved in the National Restructuring Programme or any restructuring aid to steel firms not identified in this Programme, has been  granted from the date of signature of the 
Agreement Bosnia and Herzegovina's State aid monitoring authority shall ensure that such aid is 
reimbursed (Paragraph 5 of Protocol 3). 
3.39.  Technical support for the preparation of the National Restructuring Programme and the 
individual business plans will be provided upon re quest to Bosnia and Herzegovina by the EU. Full 
transparency shall be ensured by the Parties for State aid. With regard to State aid granted for 
steel production in Bosnia and Herzegovina and the implementation of the restructuring 
programme and the business plans, a full and conti nuous exchange of information will take place. 
The implementation of the requirements of paragrap hs 1-4 of Protocol 3 is to be monitored by the 
Interim Agreement established under the Agreement. Finally, if one of the Parties considers that a 
particular practice of the other Party is incompatible with the terms of the Protocol, and if that 
practice causes or threatens to cause prejudice to the interests of the first Party or material injury 
to its domestic industry, the Party may take appropriate measures after consultations within the Sub Committee dealing with competition matters or after 30 working days following referral for consultations. The Sub-Committee has been established and has met once a year, with its fifth 
meeting being held in March 2013. 
3.4.5  Customs-related procedures 3.40.  The Parties agree under Article 39 to establish customs co-operation with a view to 
guarantee compliance with the provisions to be ad opted in the area of trade and to achieve the 
approximation of the customs system of Bosnia and Herzegovina with that of the EU, thereby 
helping to pave the way for liberalization under  the Agreement and for the gradual approximation 
of the customs legislation of Bosnia and Herzegovina to the EU's acquis communautaire . 
Co-operation shall take due account of priority areas related to the EU acquis  in the area of 
customs.  
3.41.  The Parties believe that administrative co-operation is essential for the implementation and 
control of the preferential treatment gran ted under the Agreement and underline their 
commitment to combat irregularities and fraud in customs and related matters (Article 29). In this 
regard, where a Party has made a finding on the basis of objective information, of a failure to 
provide administrative co-operation and/or related irregularities
16 or fraud the Party may 
temporarily suspend preferential treatment for the product concerned.17 Temporary suspensions 
may take place following notification by the Party to the Interim Committee of its finding of 
irregularities and/or fraud and consultations in the Interim Committee with a view to reaching a 
solution acceptable to both Parties. A notice to importers must also be published in the Party's Official Journal at the same time as notification to the Interim Committee. If the consultations are unsuccessful within three months following the notification, the Party concerned may temporarily 
suspend preferences and notify the Interim Committee without undue delay. Temporary 
suspensions under Article 29 shall be limited to the minimum necessary to protect the financial interests of the Party concerned. They shall not ex ceed six months (renewable) and will be subject 
to periodic consultations in the Interim Committee in particular with a view to their termination as 
soon as the conditions for their application no longer prevail.  
3.42.  The rules on mutual administrative assist ance on customs matters are in Protocol 4. The 
Parties agreed to assist each other in the areas within their competence, in the manner and 
                                               
16 Irregularities or fraud may be determined inter alia, where there is a rapid increase, without 
satisfactory explanation, in imports of goods exceeding the usual level of product and export capacity of the 
other Party, that is  linked to objective information concerning irregularities or fraud  (paragraph 3 of Article 29). 
17 Article 44 defines failure to provide administrative  co-operation as includin g a repeated failure to 
respect the obligations to verify the originating status of the product concerned; a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin; and a 
repeated refusal or undue delay in obtaining authorization to conduct administrative co-operation missions to 
verify the authenticity of documents or accuracy of information relevant to the granting of preferential 
treatment. WT/REG242/1 
 
- 17 - 
 
  conditions laid down in the Protocol to ensure the correct application of customs legislation, in 
particular by preventing, investigating and combatin g breaches of that legislation. Upon request, 
the authority will provide all the relevant information which may enable the requesting authority to ensure that customs legislation is correctly applied including information regarding activities noted 
or planned which are or could be operations in breach of customs legislation. The requested 
authority shall provide information on whether goods exported from (or imported into) the territory of one Party have been properly imported  into (exported from) the territory of the other 
Party, and where appropriate, the customs procedure applied to the goods (Article 3.2). The 
requested authority shall also, within its legal and regulatory framework, take the necessary steps to ensure special surveillance including of natural or legal persons, goods, and means of transport 
where there are reasonable grounds for believing that they are or have been involved in 
operations in breach of customs legislation (Art icle 3). Assistance may also be provided on a 
Party's own initiative and in accordance with the Parties' legal or regulatory provisions, if they consider it necessary for the correct application of customs legislation (Article 4). Upon request in 
writing, the relevant authority shall also deliver any documents or notify any decisions from the 
applicant authority and falling within the scope of the Protocol, to an addressee residing in or established in the territory of the requested au thority (Article 5). The requested authority may 
refuse assistance or require certain criteria to be met, if it believes that assistance under the 
protocol would be likely to prejudice: the sovereignty of the Party concerned that has been requested to provide assistance, or public policy, security or other essential interests (such as personal data), or violate an industrial, commercial or professional secret. Assistance may also be 
postponed by the requested authority on the grounds that it will interfere with an ongoing 
investigation, prosecution or proceeding (Article 9).  
3.43.  The information exchanged between the Pa rties shall be confidential or restricted, 
depending on the rules applied in the Parties and personal data may be exchanged only when the 
Party that may receive them guarantees to protect such data in at least an equivalent way to that applicable to that particular case in the Party that may supply the information (Article 10). Protocol 
4 shall be implemented by the customs authoritie s of Bosnia and Herzegovina and the competent 
services of the European Commission and the customs authorities of the Members States as 
appropriate (Article 13). The provisions of the Protocol will not affect the obligations of the Parties under any other international agreement or conven tion (except any bilateral agreement on mutual 
assistance which has been or may be concluded between individual EU Member State and Bosnia 
and Herzegovina insofar as its provisions are incompatible with the Protocol, in which case the Protocol takes precedence); be deemed complementary to Agreements on mutual assistance which 
have been or may be concluded between individu al EU Member States Bosnia and Herzegovina; 
and not affect the EU provisions on communica tion between the competent services of the 
European Commission and the customs authorities of the EU Member States, of any information 
under the Protocol which could be of interest to the EU (Article 14). 
3.4.6  Other regulations 3.5  Sector-Specific Prov isions of the Agreement 
3.44.  For trade in agriculture and fishery produc ts between the Parties, Article 14 provides for a 
review clause. The Parties, taking into account inter alia the volume of bilateral trade and the 
particular sensitivities of the sector, will examine in the Interim Committee, on a product by product and orderly and reciprocal basis, the opportunities for granting further concessions to 
liberalize the sector further. 
3.45.  Under Article 15 and notwithstanding other provisions of the Agreement and in particular 
Article 39 which deals with general safeguards, given the particular sensitivity of the agricultural 
and fisheries markets in the Parties, if imports of products originating in one Party, which are the 
subject of concessions granted pursuant to Articles 10-13 cause serious disturbance to the markets or to their domestic regulatory mechanisms in the other Party, the Parties shall enter into consultations immediately to find an appropriate solution. Pending the solution, the Party affected 
may take the appropriate measures it deems necessary. 
3.46.  In addition, under Article 16 the Parties sha ll provide protection of geographical indications 
(GIs) and trademarks for agricultural produc ts and foodstuffs (see section 4.9 below). WT/REG242/1 
 
- 18 - 
 
  4  GENERAL PROVISIONS OF THE AGREEMENT 
4.1  Transparency 4.1.  The Agreement has no section or chapter per se on transparency. However, as noted above, 
there are transparency provisions across various provisions of the Agreement which require the 
Parties to regularly notify each other of changes to their legislation and regulations. The Parties 
are also expected to regularly consult with each other in the Interim Committee established under the Agreement (see Section 4.5 below). 
4.2  Current payments and capital movements 
4.2.  Under Article 33, current payments should be authorised in accordance with the provisions of 
Article VIII of the Articles of the Agreement of  the International Monetary Fund. The agreement 
also contains a general obligation not to adopt restrictive measures for balance of payment 
purposes, on a best endeavour basis.
  
4.3  Exceptions 4.3.  Article 28 provides for GATT Article XX type exceptions, including prohibitions or restrictions 
on imports, exports or goods in transit justified on grounds of public morality, public policy or 
public security; the protection of health and life of humans, animals or plants, national treasures of artistic, historic or archaeological value or intellectual, industrial and commercial property; or rules 
relating to gold and silver. Such restrictions will not however constitute a means of arbitrary 
discrimination or a disguised restriction on trade between the Parties. 
4.4.  Exceptions for security such as those prov ided by GATT Article XXI are covered by Article 46 
which permits the Parties to take any measures it considers necessary to prevent the disclosure of 
information contrary to its essential security intere sts; which relate to the production of, or trade 
in, arms, munitions or war materials or to research, development or protection indispensable for defence purposes, provided that such measures do not impair the conditions of competition in 
respect of products not intended for specifically military purposes; or which it considers essential 
to its own security. 
4.4  Accession and Withdrawal 
4.5.  There are no provisions on accession by third-parties to the Agreement. Article 53 allows 
either Party to denounce the Agreement by no tifying the other Party. The Agreement will 
terminate six months following such a notification.  
4.5  Institutional framework 
4.6.  The Agreement establishes an Interim Committee to supervise its application and 
implementation (Title IV, Articles 40-44). It shal l hold meetings at regular intervals and when 
circumstances require and shall act by  mutual agreement of the Parties.
18 It has the power to take 
decisions within the scope of the Agreement in th e cases provided for therein. The decisions taken 
shall be binding on the Parties which shall take the measures necessary to implement them. The Interim Committee may also formulate recommendations which it considers desirable for the 
purpose of attaining the Agreement's common object ives and its smooth functioning. Its decisions 
and recommendations shall be made by agreement between the Parties. It may also create sub-committees. Any disputes between the Parties rela ting to the application or interpretation of 
the Agreement shall be referred to the Interim Committee which may settle the dispute through a 
binding decision. According to the Parties the sixth EU-Bosnia and Herzegovina Interim Committee 
meeting took place in July, 2013 in Brussels, wher e different aspects of implementation of the 
Interim Agreement were discussed. 
                                               
18 The Interim Committee is composed of representatives of the Parties as laid down in its rules of 
procedure. The Chair will alternate between the Parties also in accordance with the rules of procedure. WT/REG242/1 
 
- 19 - 
 
  4.6  Dispute settlement 
4.7.  Articles 48 (125) and 49 (126) and Protocol 5 of the Agreement describe procedures to be 
followed for the avoidance and settlement of disp utes between the Parties. Consultations and the 
resolution of disputes in the Interim Committee (Stabilisation and Association Council) are 
provided for by Articles 48 (125) and 49 (126), while Protocol 5 provides for an arbitration 
procedure. Under Article 48 (125) the Parties agree to consult promptly through appropriate channels at the request of either Party to discuss any matter concerning the interpretation or 
implementation of the Agreement and other relevant  aspects of their bilateral relations. Disputes 
can be referred to the Interim Committee (Stabilisation and Association Council) and the relevant procedures to be followed are Article 126 or Protocol 5 of the Agreement. 
4.8.  If either Party considers that the other has failed to fulfil an obligation under the Agreement, 
it may take appropriate measures but must first supply the Interim Committee (Stabilisation and 
Association Council) (except in urgent cases) with all relevant information required for a thorough examination of the case and seeking a solution acceptable to the Parties. In the selection of 
measures priority must be given to those which least disturb the functioning of the Agreement. 
The measures will be notified immediately to th e Interim Committee (Stabilisation and Association 
Council) and will be subject to consultations within the Committee, if the other Party so requests 
(Article 48(4) 125(4) of Protocol 5). 
4.9.  When a dispute arises between the Parties on the interpretation or implementation of the 
agreement, any Party shall notify the matter to the other Party and the Interim Committee (Stabilisation and Association Council) for resolution. Where the Party believes that the measure 
adopted by the other Party or its failure to act, constitutes a breach of its obligations under the 
Agreement, the formal request for dispute resoluti on must include the reasons for this opinion and 
indicate, as the case may be, that the party may adopt measures under Article 48(4) 125(4) (see 
above). Good faith consultations will be held within the Interim Committee (Stabilisation and 
Association Council) or any other relevant body set up by the Interim Committee (Stabilisation and Association Council), with the aim of reaching a mu tually acceptable solution as soon as possible. 
The Parties shall provide the Interim Committee (Sta bilisation and Association Council) with all the 
relevant information required for a thorough examination. The Interim Committee (Stabilisation and Association Council) will continue to discuss the issue at each of its meetings unless arbitration has been initiated under Protocol 5. The dispute shall be deemed to have been resolved when the 
Interim Committee has taken a binding decision on the matter as under Article 48(3) 125(3) or 
when it has declared that there is no longer a dispute. The Parties may submit the dispute for arbitration under Protocol 5 if after two months of initiation the dispute is not resolved. 
4.10.  The scope of Protocol 5 extends only to any differences concerning the interpretation and 
application of certain provisions, including where a Party considers that a measure adopted by the 
other Party or a failure on its part to act, is in breach of its obligations. The provisions to which the 
Protocol applies are: Title IV (free movement of goods) except Articles 31, 38 and 39(1), (4) and 
(5) insofar as these concern measures adopted under Article 39, and Article 45; and Title III (other trade and trade-related provisions), Articles 60, 67, 69 and 73(2).
19  
4.11.  If the Parties fail to resolve a dispute under Article 49, the complaining Party may under the 
conditions of Article 49 (126), submit a request in writing for the establishment of an arbitration 
panel to the Party complained against and the Interim Committee (Stabilisation and Association Council).. It shall state in its request the subject of the dispute and, as the case may be, the 
measure adopted by the other Party or its failure to act, which it considers to be in breach of the 
provisions covered by the Protocol. Within ten days  of the submission of the request, the Parties 
shall consult to reach agreement on the composition of a three member arbitration panel. In the 
event of disagreement, either Party may request the Chair of the Interim Committee (Stabilisation 
and Association Council) or his or her delegate to select all three members by lot from a list 
                                               
19 Article 31 relates to the protection of geographical indications for agricultural and fishery products and 
foodstuffs other than wine and spirit drinks; Article 38 to dumping and countervailing actions; Article 39(1) deals with global safeguards which are covered by Article XIX of the GATT 1994 and the WTO Agreement on Safeguards; Article 39(4) and (5) deals with referral and examination of safeguar d actions by the Interim 
Committee of the Agreement; Article 45 deals with financial responsibili ty. Under Title III Article 60 covers 
payments and transfers; Article 67 balance of paymen ts measures; Article 69 with the circumvention of 
measures by third parties; and Article 73(2) MF N treatment on intellectual property rights. WT/REG242/1 
 
- 20 - 
 
  established under Article 15 of the Protocol, one ea ch among the lists proposed by the Parties and 
one among the arbitrators selected by the Parties to act as a chairperson. The date of establishment of the panel will be date on which the chairperson of the Panel is informed of the 
arbitrators as agreed by the Parties. 
4.12.  The Panel will notify its ruling to the Pa rties and to the Interim Committee (Stabilisation and 
Association Council) within 90 days of its establishment. Where it considers that the deadline cannot be met, the chairperson of the panel must notify the Parties and the Interim Committee in 
writing, stating the reasons for the delay. The ruling in any circumstances must be issued within 
120 days from establishment of the panel. For urgent cases including those involving perishables, the arbitration panel shall make every effort to issue its ruling within 45 days (and in any case no later than 100 days) from the date of its establishment. A preliminary ruling on whether the panel 
considers the case to be urgent may be given within 10 days of its establishment. The ruling shall 
set out the findings of fact, the applicability of the relevant provisions of the Agreement and the rationale behind any findings and conclusions.
20 It may contain recommendations on measures to 
adopt for compliance (Article 5 of the Protocol). 
4.13.  Each Party will take any measure necessary to comply with the ruling of the panel and will 
endeavour to agree on a reasonable period of ti me to comply. If there is disagreement on the 
reasonable period of time the complaining Party may request the Interim Committee (Stabilisation 
and Association Council), within 20 days of the no tification of the panel ruling to the Parties to 
reconvene the original arbitration panel to determine the length of the reasonable period of time. The arbitration panel shall notify its ruling within  20 days from the date of the submission of the 
request (Article 7 of the Protocol). 
4.14.  The Party complained against shall notify the other Party and the Interim Committee 
(Stabilisation and Association Council) before th e end of the reasonable period of time of any 
measure it has taken to comply with the ruling of  the arbitration panel. If there is a disagreement 
between the Parties on the compatibility of such me asures with the provisions of Article 2 (scope), 
the complaining Party may request the original panel to rule on the matter. Its request should 
explain why the measure is not in conformity  with the Agreement. Once re-convened the 
arbitration panel will issue its ruling in 45 days (Article 8 of the Protocol). If the Party complained against does not notify measures to comply with the ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that the measures notified under Article 8(1) of the 
Protocol are not in conformity with that Part y's obligations under the Agreement, the Party 
complained against shall, if so requested by the complaining Party, present an offer of temporary compensation. If no agreement is reached within 30 days of the end of the reasonable period of 
time, or if the panel ruling under Article 8 that a measure taken to comply is not in conformity with 
the Agreement, the complaining Party is entitled, upon notification to the other Party and the Interim Committee (Stabilisation and Association Co uncil), to suspend the application of benefits 
granted under the provisions referred to in Article 2 to a level equivalent to the adverse economic 
impact caused by the violation. The complaining Party may implement the suspension ten days after the date of the notification unless that Party complained against requests arbitration. If the Party complained against considers that the level of suspension is not equivalent to the adverse 
economic impact caused by the violation, it may request the chairperson of the original arbitral 
panel in writing before the expiry of the ten da ys to reconvene the panel. The arbitration panel 
shall rule within 30 days of the request during which time benefits may not be suspended. The 
suspension of benefits will be temporary and sh all be applied only until any measure found to 
violate the Agreement has been withdrawn or amende d so as to bring it into conformity with the 
Agreement or until the Parties have agreed to settle the dispute (Article 9 of the Protocol).  
4.15.  Any measure taken by the Party complained against to comply with the ruling of the Panel 
shall be notified to the other Party and the Interim Committee (Stabilisation and Association Council) along with the request for an end to the suspension of benefits applied by the complaining Party. If the Parties do not agree within 30 days following this notification on the compatibility of 
the measure, the complaining Party may request the Chair of the original arbitration panel in 
                                               
20 During the process the complaining Party may withdraw its complaint by written notification to the 
chairperson of the panel, the Party complained against and the Interim Committee.  Such withdrawal is without 
prejudice to the complaining Party's right to introduce a new complaint regarding the same measure at a later 
point. The Article also allows for the suspension of th e panel's work for up to 12 months, exceeding which its 
authority lapses (Article 5). WT/REG242/1 
 
- 21 - 
 
  writing (with a simultaneous notification to the other Party and the Interim Committee 
(Stabilisation and Association Council)) to rule on the matter. The panel shall notify its ruling 
within 45 days of the submission of the request. If  it rules that the measure taken to comply with 
its ruling is not in conformity with the Agreemen t, it will determine whether the complaining Party 
may continue to suspend benefits at the original or different level. If it rules that the measure is in 
conformity with the Agreement, the suspension of benefits will be terminated (Article 10 of the 
Protocol). Finally, Sections III and IV of Protocol 5 deal with common and general provisions 
relating to dispute settlement. 
4.7  Relationship with other agreements concluded by the Parties 4.16.  The Agreement does not preclude the maintenance or establishment of customs unions, free 
trade areas or arrangements for frontier trade except insofar as they alter the trade arrangements 
provided for in the Agreement. During the five year transition period specified in Article 3 of the 
Interim Agreement (Article 18 of the SAA) will not affect the implementation of the specific preferential arrangements governing the movement of goods either laid down in frontier 
agreements previously concluded between one or more Member States of the EU and Bosnia and 
Herzegovina or resulting from the bilateral agreements concluded by Bosnia and Herzegovina to promote regional trade as indicated in Title III of  the Agreement. Paragraph 3 of Article 22 (37 of 
the SAA) provides for consultations between the Parties in the Interim Committee (Stabilisation 
and Association Council) concerning these agreements and, where as requested, on other major issues related to their respective trade policies towards third countries. In the event of a third party acceding to the European Union, such consultations shall take place to ensure that account is 
taken of the mutual interests of the Parties stated in the Agreement. 
4.17.  With regard to third parties, Article 52 ( 17 of the SAA) encourages Bosnia and Herzegovina 
to foster co-operation and conclude a convention on regional co-operation with any other country 
that is a candidate for EU accession and not concerned by the Stabilization and Association process 
in any of the fields of co-operation covered by  the Agreement. The convention should aim to 
gradually align bilateral relations between Bosnia and Herzegovina and the third party with the 
relevant part of the relations between the EU and its Member States and the third party. Finally, 
Bosnia and Herzegovina must within the transi tion period of the Agreement (by 1 July 2013) 
conclude an agreement with Turkey (which has a customs union with the EU) establishing a free 
trade area in accordance with Article XXIV of the GATT 1994, as well as liberalizing the 
establishment and supply of services between them  at an equivalent level of the Agreement in 
accordance with Article V of the GATS.
21 
4.18.  Table 4.1 below shows all other RTAs (notified and non-notified) currently in force for the 
Parties. 
Table 4.1 EU and Bosnia and Herzegovina: Participation in other RTAs (notified and non-
notified in force), as of 18 October 2013  
Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EUROPEAN UNION  
Central America a Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
Colombia and Peru 01.03.13b Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
Eastern and Southern Africa 
States 14.05.12 Goods 2012 GATT Art. XXIV 
Republic of Korea 01.07.11 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
Serbia 01.02.10 Goods 2010 GATT Art. XXIV 
                                               
21 In this regard, Turkey notified  a free trade agreement with Bosn ia and Herzegovina on 29 August 
2003 to the WTO pursuant to Article XXIV:7(a) of GATT  1994 and the Understanding on the Interpretation of 
Article XXIV of GATT 1994 (WT/REG157/N/1, 8 September 2003). WT/REG242/1 
 
- 22 - 
 
  Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Papua New Guinea and Fiji 20. 12.09 Goods 2011 GATT Art. XXIV 
Cameroon 01.10.09 Goods 2009 GATT Art. XXIV 
Côte d'Ivoire 01.01.09 Goods 2008 GATT Art. XXIV 
CARIFORUM States 01.11.08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V 
Montenegro 01.01.08 
01.05.10 Goods 
Services 2008 
2010 GATT Art. XXIV & GATS Art. V 
Albania 01.12.06 
01.04.09 Goods  
Services 2007 
2009 GATT Art. XXIV & GATS Art. V 
Algeria 01.09.05 Goods 2006 GATT Art. XXIV 
Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
Chile 01.02.03 
01.03.05 Goods 
Services 2004 
2005 GATT Art. XXIV & GATS Art. V 
Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
Former Yugoslav Republic of 
Macedonia 01.06.01 
01.04.04 Goods 
Services 2001 
2009 GATT Art. XXIV & GATS Art. V 
Mexico 01.07.00 
01.10.00 Goods 
Services 2000 
2002 GATT Art. XXIV & GATS Art. V 
Israel 01.06.00 Goods 2000 GATT Art. XXIV 
Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
Faroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
European Economic Area 01.01.94 Services 1996 GATS Art. V 
Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
Syria 01.07.77 Goods 1977 GATT Art. XXIV 
Norway 01.07.73 Goods 1973 GATT Art. XXIV 
Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
Switzerland-Liechtenstein 01.01. 73 Goods 1972 GATT Art. XXIV 
Overseas Countries and 
Territories 01.01.71 Goods 1970 GATT Art. XXIV 
BOSNIA AND HERZEGOVINA 
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
Turkey 01.07.03 Goods 2003 GATT Art. XXIV 
 
a Provides for all the signatory parties to apply the Agreement provisionally by the end of 2013 at the latest. 
b
 Provisional application of the Agreement between the EU and Peru: 1 March 2013; provisional application between the EU and Colombia: 1 August 2013. 
CEFTA: Central European Free Trade Agreement. 
Note: Bosnia and Herzegovina has also indicated that it has an agreement with Iran which has been in 
force since 2009. 
 Source: WTO Secretariat. 
 WT/REG242/1 
 
- 23 - 
 
  4.8  Government procurement 
4.19.  Although there are no specific provisions on government procurement, under Article 41 
Bosnia and Herzegovina is required to adjust any state monopolies of a commercial character to ensure that there is no discrimination in the conditions under which goods are procured and 
marketed between nationals of the Member States  of the EU and of Bosnia and Herzegovina. 
4.9  Intellectual Property Rights 4.20.  As per Article 38 (73), Annex VI and Protocol 6 of the Agreement, the Parties confirm the 
importance that they attach to adequately and effectively protecting and enforcing intellectual, 
industrial and commercial property rights. In this regard, from the entry into force of the Agreement they agree to grant each others' companies and nationals treatment no less favourable than granted to them by any third country under bilateral agreements with regard to the 
recognition and protection of intellectual, industri al and commercial property rights. No later than 
five years following the entry into force of the Ag reement, Bosnia and Herzegovina shall take steps 
to guarantee a level of protection of such rights similar to those existing in the EU including 
effective means of ensuring enforcement of such rights. Furthermore, Bosnia and Herzegovina will 
accede to multilateral conventions on IPRs listed in Annex VI within these five years and the Interim Committee (Stabilisation and Association Council) may decide to oblige Bosnia and 
Herzegovina to join other multilateral conventions in this area. Bosnia and Herzegovina indicates 
that it has completed all procedures to join all the International Conventions and Treaties listed in Annex VI of the Interim Agreement, as well as to all other multilateral conventions administrated 
by WIPO. Any problems in the area of intellectual, industrial and commercial property rights 
affecting trade may also be referred urgently to the Interim Committee by either Party with a view 
to reaching a mutually satisfactory solution. The Parties also affirm their commitment to the principles of the WTO Agreement on Trade Related As pects of Intellectual Property Rights (TRIPS).  
4.21.  Article 16 (31) of the Agreement requires Bosnia and Herzegovina to provide protection for 
GIs of the EU registered in the EU under Co uncil Regulation (EC) No. 501/2006 of 20 March 2006 
on the protection of GIs and designations of origin  for agricultural products and foodstuffs. The GIs 
of Bosnia and Herzegovina for agricultural and fishery products will be eligible for registration in 
the EU under the conditions set out in that Regulation. Bosnia and Herzegovina shall refuse any use in its territory of the names protected in the EU of comparable products not complying with the specifications of the GIs even where the true geographical origin is indicated, the GI in 
question is used in transition and the name is accompanied by terms such as "like" "type" "style", 
"imitation" or similar expressions. Bosnia and Herz egovina will also refuse to register trademarks 
for such products. If trademarks have been established in Bosnia and Herzegovina for such 
products, they will cease to apply six years following entry into force of the Agreement (except for 
trademarks held by third party nationals provided they are not of a nature that would deceive in 
any way the public as to the quality, the specificat ion and GI of the good). Furthermore, any use of 
GIs as terms customary in common language as the common name for such goods in Bosnia and 
Herzegovina shall cease at the latest on 31 December 2013. 
4.22.  Protocol 6 includes an agreement between the Parties on reciprocal recognition, protection 
and control of wine, spirit drinks and aromatised wine names (Annex II to the Protocol). For these 
products the following are protected by the Agre ement: (i) references to the name of the EU 
Member State in which the wine, spirit drink and aromatised wine originates or other names to indicate the Member State; (ii) the geographical indications (GIs) listed in Part A of Appendix I to 
Annex II of the Protocol and (iii) the traditional expressions listed in Appendix 2 to Annex II of the 
Protocol. For wines, spirit drinks or aromatised wines originating in Bosnia and Herzegovina references to the name "Bosnia and Herzegovina" or any other name designating the country and 
the GIs listed in Appendix I, Part B (Article 4) shall be protected. Article 5 further states that 
references to the EU Member States (Bosnia and Herzegovina) and other names used to indicate a Member State (Bosnia and Herzegovina) for the purpose of identifying origin of the wine, spirit drink and aromatised wine shall be reserved for wines, spirit drinks and aromatised wines 
originating in the Member State concerned (Bosni a and Herzegovina) and shall not be used other 
than under the conditions provided for by EU (Bosnia and Herzegovina) laws and regulations. 
4.23.  Protection of GIs for products listed in Appendix I, Part A is provided by Article 6 with the 
Parties agreeing to protect each others' GIs for wines, spirit drinks and aromatised wines and not 
to use them other than under conditions provided for by each others' laws and regulations. They WT/REG242/1 
 
- 24 - 
 
  agree to take measures necessary, in accordance with the Annex for the reciprocal protection of 
GIs referred to in Article 4 (see above) which are used for the description and presentation of wines, spirit drinks and aromatised wines originating in each others' territories. To that end they will make use of the appropriate legal means referred to in Article 23 of the TRIPS Agreement to 
ensure effective protection and prevent GIs from being used to identify wines, spirit drinks and 
aromatised wines not covered by the indications or descriptions concerned. The use of protected names is prohibited for wines, spirit drinks and aromatised wines which do not originate in the 
geographical area indicated.
22 Protection shall be granted for homonymous indications provided 
they are used in good faith; if a GI listed in Appendix I is homonymous with a GI for a third party, Article 23(3) of the TRIPS Agreement applies. Tradit ional expressions for the EU listed in Appendix 
2 shall not be used for the description or presentation of wine originating in Bosnia and 
Herzegovina nor for wine originating in the EU except in relation to wines of the origin and 
category and language as listed in Appendix 2 and under the conditions provided by the EU's laws and regulations. Bosnia and Herzegovina agrees to provide appropriate legal means to ensure 
effective protection for traditional expressions an d to prevent them from being used to describe 
wine not entitled to such descriptions.  
4.24.  Registration of trademarks for a wine, spirit drink or aromatised wine which is identical with, 
similar to, or contains or consists of a reference to a GI or a traditional expression protected under 
the Agreement shall be refused if it does not have the original and does not comply with the relevant rules governing its used. Bosnia and He rzegovina shall adopt the necessary measures to 
amend all trademarks so as to fully remove all re ference to EU GIs protected under Article 4 at the 
latest by 31 December 2008 (Article 8). According to the Parties this is being applied in practice to 
new trademarks containing references to EU GIs. However the process for doing so for trademarks registered before the Agreement was signed has not yet been completed . Under Article 9 the 
Parties agree to take steps necessary to ensure that where wines, spirit drinks and aromatised 
wines originating in a Party are exported and mark eted outside that Party, the protected GIs and 
the traditional expressions in the Agreement are not used to describe and present such products 
originating in the other Party. 
4.25.  Title II of Annex II sets up a Working Group under the Sub-committee on Agriculture to 
ensure the proper functioning of the Agreement in the Annex and to examine questions which may 
arise in implementing it. The Parties indicate that the Working Group has been established and like 
other Sub-Committees, meets once every year. The Working Group may make recommendations, 
discuss and make suggestions on any matter of mutual interest in the wine, spirit drink and aromatised wine sector which would contribute to the goals of the Agreement. It shall meet at the 
request of either Party, alternatively in the EU  and Bosnia and Herzegovina at a time and place 
mutually determined by the Parties.
23 The lists of protected names referred to in the Agreement 
and Appendices may be amended through mutual ag reement between the Parties. The Parties will 
also inform and notify each other of any changes to legislation or regulations addressing public 
policy concerns and any legislative, administrative or judicial decisions concerning the implementation of the Annex as well as measures adopted based on these decisions. 
4.26.  Enforcement of the Annex is assured under Article 13. The Parties may apply the necessary 
administrative measures and/or initiate legal proceedings with a view to combating unfair 
competition or preventing the wrongful use of the name in any other way. They will enter into consultations if one of them considers that the other has failed to fulfil an obligation under the 
Annex. The Party which requests the consultations must provide all the necessary information for a 
detailed examination of the issue. In urgent cases, appropriate interim protective measures could be taken without prior consultation provided that consultations are held immediately after the 
measures are taken (Article 14).
24 If after consultations the Parties fail to reach an agreement, the 
Party requesting the consultations or the Party which took interim measures may take appropriate measures under Article 126 of the Agreement (see  Section 4.6 above). The Annex does not apply 
                                               
22 This will be the case even when the true origin of the wine, spirit drink or aromatised wine is 
indicated, the GI is used in translation, the name is accompanied by terms such as "kind", "type", "style", "imitation", "method" or other similar expressions, an d the protected name is used  in any way for products 
falling under HS 20.09 (fruit juices including grape must). 
23 The designated representatives in the Working Group are the Ministry of Foreign Trade and Economic 
Relations for Bosnia and Herzegovina and the Directorate-General, Agriculture and Rural Development of the 
European Commissi on for the EU. 
24 Urgent cases are those where any delay could endanger human health or impair the effectiveness of 
measures to control fraud. WT/REG242/1 
 
- 25 - 
 
  to the transit of wines, spirit drinks and aromatised  wines in small quantities as clarified in Article 
15 and to the sale of pre-existing stocks of these products (Article 16).  
4.9.1  Competition policy 4.27.  The Parties consider the following to be incompatible with the proper functioning of the 
Agreement insofar as they may affect their mutual trade: (a) all agreements between 
undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of 
competition; (b) abuse by one or more undertakings of a dominant position in the territories of the 
EU or of Bosnia and Herzegovina as a whole or a substantive part thereof; or (c) any State aid which distorts or threatens to distort competitio n by favouring certain undertakings or products 
(Article 71). Any practices contrary to Article 71 will be assessed on the basis of criteria arising 
from the application of the EU's competition rules (in particular Articles 81, 82, 86 and 87 of the 
EC Treaty) and interpretative instrume nts adopted by the EU's institutions. 
4.28.  An operationally independent public authority in each of the Parties is entrusted with the 
powers needed for the application of (a) and (b) above, regarding private and public undertakings 
and undertakings to which special rights have been  granted. In addition, Bosnia and Herzegovina 
will establish an operationally independent public authority with the powers necessary for the full 
application of (c) above and also inter alia  the powers to authorize State aid schemes and 
individual aid grants in conformity with the competition rules of the EC Treaty and to order the recovery of State aid that has been unlawfully granted. The authority must be set up within two years from the date of entry into force of the Agreement. According to the Parties, the State 
Aid Council was not established as foreseen in the Interim Agreement and is not yet fully 
operational, with among others, the necessary by -laws needed for issuing decisions on the award 
of State aid not yet adopted.  WT/REG242/1 
 
- 26 - 
 
  ANNEX 1  
Market access indicators 
 
1. Tables A1.1 and A1.2 show tariff liberalization by the European Union and Bosnia and 
Herzegovina by total, agricultural and non-agricu ltural products. When the Agreement entered into 
force in 2008, around a quarter (24.2%) of the EU's tariff was already duty free on a MFN basis, 18.1% for agricultural products and 26.1% for non-agricultural products. Following entry into force 
of the Agreement, 97.3% of the EU's tariff be came duty-free for imports from Bosnia and 
Herzegovina, 90.5% for agricultural products and 99.1% for non-agricultural products. The average overall tariff for exporters from Bosnia  and Herzegovina was 0.1%, giving them an 
average margin of preference of 98% over th e MFN rate of 5%. Their average margin of 
preference was 97.8% and 97.6% for agricultural and non-agricultural products, respectively. By 
the end of implementation of the Agreement 97.3% of the tariff (90.5% for agricultural products 
and 99.1% for non-agricultural products) was duty  free for imports from Bosnia and Herzegovina. 
Table A1.1 EU: Indicators of MFN tariff rate s and preferential rates for imports from 
Bosnia and Herzegovina
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2008 5.0 6.8 24.4 9.2 12.6 18.1 4.2 5.7 26.1 
Bosnia and 
Herzegovina 2008 0.1 13.1 97.3 0.2 12.2 90.5 0.1 13.6 99.1 
 2009 0.1 12.0 97.3 0.2 12.2 90.5 0.1 11.9 99.1 
 2010 0.1 10.9 97.3 0.2 12.2 90.5 0.1 10.3 99.1 
 
a WTO Definition.  Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by EU. 
 
2. Table A1.2 shows that when the Agreement ente red into force in 2008 29.6% of Bosnia and 
Herzegovina's tariff was duty-free for imports from  all sources; 22.4% and 31.3% of agricultural 
and non-agricultural products respectively were du ty free. Upon entry into force of the Agreement 
52.7% of tariffs became duty free for imports from the EU, 51.5% for agricultural products and 
53.1% for non-agricultural products. As a result exporters from the EU had an average margin of 
preference of 51.7% overall and 39.4% and 53.5% for agricultural and non-agricultural products 
respectively. By the end of implementation of the Agreement in 2013 for Bosnia and Herzegovina 
96.7% of tariffs are expected to be duty free for imports from the EU, 83.8% for agricultural 
products and 99.9% for non-agricultural products. 
Table A1.2 Bosnia and Herzegovina: Indicators  of MFN tariff rates and preferential rates 
for imports from EU  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2008 6.1 8.6 29.6 7.1 9.1 22.4 5.8 8.4 31.3 
EU 2008 3.0 6.4 52.7 4.3 9.0 51.5 2.7 5.8 53.1 
 2009 1.8 7.9 76.8 3.7 9.1 59.0 1.3 7.2 81.2 WT/REG242/1 
 
- 27 - 
 
  Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
 2010 1.3 5.5 76.8 3.1 7.6 59.0 0.8 4.4 81.2 
 2011 0.7 7.5 90.1 2.5 8.5 70.5 0.3 5.9 95.0 
 2012 0.6 5.7 90.1 2.2 7.4 70.5 0.2 3.1 95.0 
 2013 0.4 11.6 96.7 1.9 11.6 83.8 0.0 10.0 99.9 
 
a WTO Definition.  Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by  Bosnia and Herzegovina to the EU authorities. 
 
3. Table A1.3 shows market access opportunities in the EU for Bosnia and Herzegovina's top 
25 exports. In 2008 when the Agreement entered into force these products were covered by 89 tariff lines at the HS 8-digit level and 54.1% of Bosnia and Herzegovina's 2005-07 exports. Of 
these, 52 were already duty free on an MFN basis. All the remaining 37 lines were liberalized for 
imports from Bosnia and Herzegovina in 2008. 
Table A1.3 EU: Market access opportuniti es under the Agreement for Bosnia and 
Herzegovina's top 25 exports
 
Bosnia and Herzegovina's top export products in 2005-2007  Access Conditions to EU's import 
markets  
MFN (2008)  
Duty-
free in  
2008  HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate (%)  No. of tariff 
lines  
Duty-
free Dutiable 
760120 - aluminium alloys 9.2 6.0  3 3 
840999 Parts suitable for use solely/principally 
with the engines of 84.07/84.08 
(excluding 8409.10 and 8409.91) 6.2 2.7  1 1 
271600 Electrical energy. (optional heading) 4.2 0.0 1   
281820 - aluminium oxide, other than artificial 
corundum 3.3 4.0  1 1 
270400 Coke and semi-coke of coal, of lignite or of 
peat, whether or not agglomerated; retort carbon. 2.9 0.0 4   
721420 - containing indentations, ribs, grooves or 
other deformations produced during the 
rolling process or twisted after rolling 2.6 0.0 1   
940190 parts of the seats of 94.01 2.6 2.4  3 3 
440710 - coniferous 2.5 0.0 7   
260111 -- non-agglomerated 2.2 0.0 1   
440792 -- of beech (fagus spp.) 1.8 0.0 1   
721391 -- of circular cross-section measuring less 
than 14 mm in diameter 1.6 0.0 6   
640610 - uppers and parts thereof, other than 
stiffeners 1.4 3.0  3 3 
730890 Structures (excluded. prefabricated 
buildings of heading 94.06) & parts of structures (e.g. Bridges & bridge-sections, lock-gates, towers, lattice masts, roofs, 
roofing frame-works, doors & windows & 
their frames & thresholds for doors, shutters, balustrades, pillars & columns) of iron/steel (excl. of 7308.10-7308.40); plates, rods, angles, shapes, sections, tubes & the like, prepared for use in structures, of iron/steel 1.4 0.0 4   WT/REG242/1 
 
- 28 - 
 
  Bosnia and Herzegovina's top export products in 2005-2007  Access Conditions to EU's import 
markets  
MFN (2008)  
Duty-
free in  
2008  HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate (%)  No. of tariff 
lines  
Duty-
free Dutiable 
640399 Other footwear without outer soles of 
leather, not covering the ankle. 1.4 7.6  11 11 
940360 - other wooden furniture 1.4 0.0 3   
731420 - grill, netting and fencing, welded at the 
intersection, of wire with a maximum 
cross-sectional dimension of 3 mm or 
more and having a mesh size of 100 cm² 
or more 1.3 0.0 2   
940161 -- upholstered 1.3 0.0 1   
740400 Copper waste and scrap. 1.2 0.0 3   
440791 -- of oak (quercus spp.) 0.9 0.0 4   
730840 - equipment for scaffolding, shuttering, 
propping or pitpropping 0.9 0.0 2   
640391 -- covering the ankle 0.9 7.7  9 9 
854449 Other electric conductors, for a voltage 
not > 1,000 V, not fitted with connectors 0.8 3.0 1 4 4 
410150 - whole hides and skins, of a weight 
exceeding 16 kg 0.7 0.0 4   
730630 - other, welded, of circular cross-section, 
of iron or non-alloy steel 0.7 0.0 7   
760410 - of aluminium, not alloyed 0.6 7.5  2 2 
Total of above 54.1  52 37 37 
 
Note: Based on HS 2007 nomenclature. 
 
Source: WTO estimates based on data provid ed by EU and UNSD, Comtrade database. 
 
4. Table A1.4 shows market access for the EU's top 25 exports in the EU. These products 
accounted for 24.2% of the EU's global exports in 2005-2007 and 140 tariff lines at the HS 8-digit 
level. Of these lines 64 were already duty free for all imports. Following entry into force of the 
Agreement Bosnia and Herzegovina liberalized 19 lines in 2008 for imports from the EU, followed 
by 34 and 13 lines in respectively 2009 and 2011; the last 10 lines are to be made duty free in 2013.  
Table A1.4 Bosnia and Herzegovina: Market  access opportunities under the Agreement 
for EU's top 25 exports
 
EU's top export products in 2005-2007  Access Conditions to Bosnia and 
Herzegovina's import markets  
MFN (2008)  Duty-free in  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines   
Duty-
free Dutiable 
2008 
2009 
2011 
2013 
300490 Medicaments (excluding goods of 
heading 30.02/ 30.05/ 30.06/ 3004.10-3004.50) consisting of mixed/unmixed products for therapeutic/prophylactic uses, put up in measured doses (including those in the form of transdermal 
administration systems)/in 
forms/packing's for retail sale 3.4 5.0 2 2 2    
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 
cc 2.7 10.8  6 2 3  1 
870324 -- of a cylinder capacity exceeding 
3,000 cc 2.3 11.0  5 2 2  1 WT/REG242/1 
 
- 29 - 
 
  EU's top export products in 2005-2007  Access Conditions to Bosnia and 
Herzegovina's import markets  
MFN (2008)  Duty-free in  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines   
Duty-
free Dutiable 
2008 
2009 
2011 
2013 
271019 Petroleum oils and oils obtained 
from bituminous minerals (other 
than crude) and preparations not 
elsewhere specified/including 
containing by weight 70 % or more 
of petroleum oils/of oils obtained 
from bituminous minerals, these 
oils being the basic constituents of 
the preparations, other than waste 
oils and light oils and preparations 2.0 3.7 19 11   10 1 
271011 -- light oils and preparations 1.8 5.0 6 6   2 4 
880240 - aeroplanes and other aircraft, of 
an unladen weight exceeding 
15,000 kg 1.8 2.5 1 1 1    
710231 -- unworked or simply sawn, 
cleaved or bruted 0.9 10.0  1   1  
851762 -- machines for the reception, 
conversion and transmission or 
regeneration of vo ice, images or 
other data, including switching and 
routing apparatus 0.7 5.0 1 1 1    
841191 -- of turbo-jets or turbo-propellers 0.7 0.0 2      
851770 - parts 0.7 5.7 3 4 2 2   
851712 -- telephones for cellular networks 
or for other wireless networks 0.6 5.0  1 1    
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 
cc 0.6 10.8  6 2 3  1 
293399 Heterocyclic compositions with 
nitrogen hetero-atom only (excluding 2933.11 to 2933.91) 0.5 0.0 6      
848620 - machines and a pparatus for the 
manufacture of semiconductor 
devices or of electronic integrated 
circuits 0.5 5.0  2 2    
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude. 0.5 0.0 3      
848180 - other appliances 0.5 10.0  17  17   
851761 -- base stations 0.5 5.0 1 1 1    
711319 -- of other precious metal, whether 
or not plated or clad with precious 
metal 0.5 15.0  1    1 
854231 -- processors and controllers, 
whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 0.5 10.0  2 2    
841112 -- of a thrust exceeding 25 kN 0.5 0.0 6      
844399 Other parts and accessories for 
printing machinery excluding 844391 0.4 0.0 2      
880330 - other parts of aeroplanes or 
helicopters 0.4 0.0 2      
710239 Diamonds, non-industrial other 
than unworked or simply sawn/cleaved/bruted 0.4 15.0  1    1 WT/REG242/1 
 
- 30 - 
 
  EU's top export products in 2005-2007  Access Conditions to Bosnia and 
Herzegovina's import markets  
MFN (2008)  Duty-free in  
HS number and description of the 
product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines   
Duty-
free Dutiable 
2008 
2009 
2011 
2013 
852990 Other parts suitable for use solely 
or principally with the apparatus of 
headings 8525 to 8528, other than 
aerials and aerial reflectors of all 
kinds 0.4 3.8 2 6  6   
901890 - other instruments and appliances 0.4 1.5 8 2 1 1   
Total of above 24.2  64 76 19 34 13 10 
 
Note: Based on HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Bosnia and Herzegovina to the EU authorities and 
Eurostat database. 
 WT/REG242/1 
 
- 31 - 
 
  ANNEX 2  
Tariff rate quotas 
 
Table A2.1 EU tariff rate quotas fo r imports from Bosnia and Herzegovina  
Product Tariff rate quota 
 Quantity 
(Metric 
tonnes 
per 
year) In/out 
quota duty 
on 1 July 
2008 In/out 
quota duty 
on 
1 January 
2009 In/out 
quota duty 
on 
1 January 
2010 Average MFN duty  
on 1 July 2008 
Baby beef 
0102 010290, 01029051, 01029059, 01029071, 01029079 
0201 
02011000, 020120, 02012020, 02012030, 02012050  1,500  20% of ad 
valorem  
and 20% of specific duty/MFN 
duty 20% of ad 
valorem  and 
20% of specific duty/MFN 
duty 20% of ad 
valorem  and 
20% of specific duty/MFN 
duty 11.5% + 135 €/100 kg/net 
    
 
Trout 
03019110, 03019190, 
03021110, 03021120, 
03021180, 03041915, 
03041917, 03041919, 
03041991, 03042915, 
03042917, 03042919, 
03049921, 03051000, 
03053090, 03054945, 
03055980, 03056980 60 Zero/90% 
of MFN duty Zero/80% of 
MFN duty Zero/70% of 
MFN duty 11.2%  
 
Carp 
03019300, 03026911, 03037911, 03041919, 03041991, 03042919, 03049921, 03051000, 03053090, 03054980, 03055980, 03056980  130 Zero/90% 
of MFN duty Zero/80% of 
MFN duty Zero/70% of 
MFN duty 10.4 % 
 
Sea bream 
03019980, 03026961, 
03037971, 03041939, 
03041999, 03042999, 
03049999, 03051000, 
03053090, 03054980, 
03055980, 03056980  30  Zero/80% 
of MFN duty Zero/55% of 
MFN duty Zero/30% of 
MFN duty 14% 
Sea bass 
03019980, 03026994, 03037700, 03041939, 03041999, 03042999, 03049999, 03051000, 03053090, 03054980, 03055980, 03056980  30  Zero/80% 
of MFN duty Zero/55% of 
MFN duty Zero/30% of 
MFN duty 14% 
Prepared or 
preserved sardines 
16041311, 16041319, 
16042050 50  6%/MFN 
duty 6%/MFN duty 6%/MFN duty 16.7% 
Prepared or 
preserved anchovies 16041600, 16042040 50  12.5%/MFN 
duty 12.5%/MFN 
duty 12.5%/MFN 
duty 25% 
Sugar 
1701 
1702 
17021100, 17021900 
17022010 
17022090 
170230 
17024010 
17024090 
17025000 
17026010 12,000  Zero/MFN 
duty Zero/MFN 
duty Zero/MFN 
duty  
39.6 €/100 kg/net/ 
 
14 €/100 kg/net 
0.4 €/100 kg/net 
8% 
32.5 €/100 kg/net mas 
50.7 €/100 kg/net mas 
20 €/100 kg/net 
16 + 50.7 €/100 kg/net mas 
50.7 €/100 kg/net mas WT/REG242/1 
 
- 32 - 
 
  Product Tariff rate quota 
 Quantity 
(Metric 
tonnes 
per 
year) In/out 
quota duty 
on 1 July 
2008 In/out 
quota duty 
on 
1 January 
2009 In/out 
quota duty 
on 
1 January 
2010 Average MFN duty  
on 1 July 2008 
17026080, 17026095 
17029010 
17029071, 17029080, 
17029095  
17029030 
17029050 
17029075 
17029079 0.4 €/100 kg/net 
12.8% 
0.4 €/100 kg/net 
 
50.7 €/100 kg/net mas 
20 €/100 kg/net 
27.7 €/100 kg/net 
19.2 €/100 kg/net 
Quality sparkling 
wine 220410 Wine of fresh grapes 220421 12,800 hl Zero/MFN 
duty Zero/MFN 
duty Zero/MFN 
duty  
 32 €/hl  14.2 €/hl 
Wine of fresh grapes 
220429 3,200 hl Zero/MFN 
duty Zero/MFN 
duty Zero/MFN 
duty  
12 €/hl 
 
Note:  The parties may request consultations with each other to adapt the quotas on quality sparkling wine 
and wine of fresh grapes by transferring quantities of the quota for 220429 to the quota for 220410 and 220421 (Annex I to Protocol 6). 
 
Table A2.2 Bosnia and Herzegovina tariff  rate quotas for imports from the EU  
Product Tariff rate quota 
 Quantity 
(hl per 
year) Annual increase (hl) In/out quota duty 
on 1 July 2008 MFN duty on  
1 July 2008 
Quality 
sparkling wine 220410 
Wine of fresh 
grapes 220421 6,000  1,000 up to a total quota 
of 8,000 hl Zero/MFN duty  
 
 15%   15+0,49KM/l 
 
Source: Annex I, Protocol 6 of the Agreement.  
 
__________