Contributed by Gunther Taube and Geert Almekinders.
The indirect tax framework law requires the adoption of regulations on the allocation of indirect tax revenue, methods of payment into the single account, and customs policy, within six months from entry into force of the framework law (i.e., by end-June 2004). The ITA Director has to submit to the Governing Board a customs reorganization plan within 90 days after the framework law becomes effective (i.e., by end-March 2004); the plan shall be approved by the GB within 30 days following its submission.
An ACE-based corporate profit tax was also introduced in Croatia in 1994, but abandoned in 2000 and replaced with a more orthodox corporate profit tax.
Effective January 1, 2003, the specific surcharges were formally merged with the ad valorem customs duties to create a composite tariff schedule. However, in the data reporting the two components are still reported separately.
BiH applied for WTO accession in May 1999 and a memorandum on the foreign trade regime was reviewed by the working party on BiH accession in November 2003. The next meeting of the working party could take place in the spring of 2004, following submission of BiH’s comprehensive legislative action plan.
Slovenia’s entry into the EU causes its exports to Bosnia and Herzegovina to be taxed again at 100 percent of the import tariff schedule effective May 1, 2004.
Regrettably, certification and phyto-sanitary regulations for meat and animal products fall short of EU requirements, impeding full utilization by producers of the beneficial access to EU markets. Approval of national phyto-sanitary legislation, which is part of the conditionality of the EU’s macro-financial assistance facility, should help bring the quality of plants and seeds produced in Bosnia and Herzegovina up to international standards.