# CE2004088EN.01039701.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/397 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/397

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(2004/C 88 E/0403)

WRITTEN QUESTION P-2286/03

by Ozan Ceyhun (PSE) to the Commission

(7 July 2003)

Subject:   Customs regulations at the Serbia and Montenegro (former Yugoslavia) border

Subject:

I have received a fax from the Consul-General of the Republic of Turkey in Frankfurt drawing attention to border and entry regulations in Serbia and Montenegro (former Yugoslavia). This information relates to Turkish citizens legally resident in the Union and EU citizens of Turkish extraction. I subsequently read an article on the subject in the Turkish newspaper ‘Millyet’. The newspaper reported that, under these regulations, foreign citizens travelling to Serbia and Montenegro are required to declare the amount of foreign currency they are carrying to the customs office if that amount exceeds EUR 2 000. Otherwise, the authorities of Serbia and Montenegro withhold the amount in excess of EUR 2 000 on their departure from the country. Around EUR 1 million have been withheld in this way from more than 190 Turkish citizens who were travelling to Turkey over land through Serbia and Montenegro. Refunding the money is reported to take between two and five years, owing to the lengthy bureaucratic and legal procedures. Oral declarations on sums of money exceeding EUR 2 000 are not accepted. It is compulsory to fill out written declaration forms.

Does the Commission have any information regarding this problem? We would request the Commission's assistance in finding a solution. What steps is the Commission prepared to take in order to resolve this problem?

Answer given by Mr Patten on behalf of the Commission

(4 August 2003)

(4 August 2003)

Reporting obligations and exchange restrictions on import and export of currencies are not unusual for countries that aim to prevent money laundering and/or control capital outflows.

On 27 April 2002, a new Foreign Exchange Law has come into force in the Federal Republic of Yugoslavia (now Serbia and Montenegro). Concerning the physical transfer of foreign currency a number of restrictions are in place, in particular with regard to taking it out of the country.

The Customs administration may temporarily seize (against a certificate) from both residents and nonresidents at border crossings Dinars, foreign cash, checks and securities that exceed the amount prescribed by the ‘National Bank of Yugoslavia’.

The measures are not targeted at nationals of any specific country or origin. Reportedly, also citizens from other European Union countries have also been subject to these measures.

The Commission intends to inform the Minister of International Economic Relations of the State Union, Minister Lukovac, of this worrying situation with particular emphasis on the long period (2-5 years) that is reported to elapse between seizure of currency and reimbursement. In addition, the Commission will suggest that at all border crossings, information about the requirement to report on the import and export of foreign currency is presented in the clearest possible way to the travellers, so as to minimise the cases in which the required written declaration that a sum larger than the maximum amount (EUR 2 000) is taken into the country is forgotten to be requested.

As far as the Community assistance is concerned, the Community Assistance to Reconstruction, Development and Stabilisation Programme (CARDS) (1) and other Community instruments in the context of the Stabilisation and Association Process are already contributing to the reform process that will bring Serbia and Montenegro's legislation in line with the EU Acquis. This will imply also a liberalisation of foreign exchange transactions in the medium term.

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(1)  Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia, repealing Regulation (EC) No 1628/96 and amending Regulations (EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and 1999/311/EC, OJ L 306, 7.12.2000.

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