Tax Effects for Imports From Serbia

Representatives of businesses in Kosovo have consistently asked the Government of Kosovo to protect local products or create a competition equal to products imported by the countries of the region.

In this context, the Ministry of Trade and Industry at the end of last year has imposed some taxes on the flour industry and construction bricks, which are imported by the state of Serbia, because the Kosovo market is cheaper than the cost of local producers.

The executive director of the Kosovo Club of Producers, Astrit Panja, has told Radio Free Europe that taking these decisions has been necessary, as, according to him, in the Kosovo market these products have come at price under the cost of production.

“means, these products are subsidised by the state of Serbia to sell in Kosovo at cheap prices. These practices are not fair in trade and damage to the local market, in this case Kosovo”.

“in this case the additional tariffs that are imposed on these products from Trade and Industry Ministers are only tariffs that make these products competitive with local products”, Panja said.

Even according to him, flour and brick producers have capacities to cover the Kosovo market.

In October of last year, the Ministry of Trade and Industry has decided that flour imported from Serbia to Kosovo will pay 0.04 cents per kilogram.

And in December, as well as last year, this minister has made the decision to set the provisional measure for two cents in construction bricks imported from the Republic of Serbia to the Republic of Kosovo.

According to the Ministry of Trade and Industry, the effect of these measures can best be seen in statistical terms. In the bricks, there is a 12.5 percent decline in imports between 2015 and 2017, while export growth of 79 percent between 2015 and 2017.

While, in flour, it says in a response to this Ministry for Free Radio Europe, “notes an import decline of 61 percent from October 2017 to December 2017”

Representatives of Kosovo brick-making companies also appreciate the ministry's decision in behalf of local companies, but, according to them, the effects of these measures can be observed in March, as they say, in this period there are no constructions.

Egzon Zherka, manager of construction materials production company “Al Trade Home” has told Radio Free Europe that the Ministry's decision favours local producers.

The effects of the decision cannot be observed at the moment because we are in the period when construction has stopped. I believe the effects will be observed during March and I believe and I hope they will be positive, as is the” decision, Zherka said.

Even the Kosovo Mills Association has welcomed this decision, under which, for years of flour from Serbia has endangered wheat producers in Kosovo.

Muhamet Feriz, chairman of this association, has told Radio Free Europe that several times on the issue have complained to Kosovo institutions.

This is a very real decision. That kind of measures should be taken for other branches as well, because Serbia is interested in preventing on any floor, one of them is the flour industry”, Feriz has been expressed.

Otherwise, Serbia's state remains the main partner in the Kosovo market.

Over the past nine months alone, Serbia has exported goods to Kosovo, worth over 300m euros, until Kosovo's exports to Serbia for the same period amount to no more than 35m euros.

With the aim of protecting local industry and the interests of the Republic of Kosovo, the Law for Anti-damping Measures and counterbalancing measures exists since 2014.

Dampingu implies import of goods in Kosovo at a lower export price than a comparable price for the similar product destined for consumption under normal market conditions in the export country;

Trade and Industry Minister Bajram Hasani has pledged that if he proves that there are elements that could disturb the market or only cause damage to a certain local industry, then he will react by implementing legislation in effect. It is the government's policy on this mandate to be in defence and business partner and in particular local production. (REL)