100 percent: Serbia loses nearly 100 per cent of Kosovo market

By setting the 100 per cent customs fee on Kosovo's part for products from Serbia and Bosnia and Herzegovina, there has been a decline in imports from these two countries.

Kosovo Customs Director Bahri Berisha, in an interview for Telegrafi, has said that since setting the 100 per cent fee, Serbia has exported 430m euros in goods less towards our country. Berisha has explained that import of goods from Serbia and Bosnia and Herzegovina has been replaced by countries in the region or the European Union.

The “Dogan that, when making the decision, has applied 100 percent, we are obliged to apply. Initially late last year, it had little impact on customs revenues, as long as the business community -- new business channels, new supplies -- has stabilised. If we take 2019, this has not affected because the import of those products that have come from these two countries has been replaced by countries in the region or other EU member states”, Berisha explains.

He says Serbia, after setting the fee, has imported 99 per cent less goods in Kosovo's direction.

“in this year, as we speak, if we compare it to the same period last year, where the measures have not been in effect, we have about 367m euros less import from Serbia for these ten-month-olds of this year, if we add 62m euros to it that was at the end of the year [2018] it shows that we are about 430m euros worth of less import. If we return it to a percentage, this indicates that we are 99 percent less import from Serbia. The same is true of Bosnia and Herzegovina, where on the annual basis it has been about 80m euros it has been imported, as long as it means that for these ten months we have 65m euros less imports, or we can say we have only two million imports, or for ten months we have had only three million from Bosnia and Herzegovina<1>, he says.

Business representatives say that setting the fee 100 percent has been positive and that this should turn into reciprocity.

Kosovo's Oda of Afarism Board Chairman Skender Krasniqi has said that with reciprocity Kosovo benefits even more internationally.

“We think that this has to go on reciprocity from now on and not on tax, because it's damaging [Kosovo] also internationally, so with reciprocity Kosovo benefits much more, while with Serbia we create a long-term blockade because this does not recognise the products of our institutions”, Krasniqi said.

He has added that many Serbian products [and Bosniak] have been replaced with products from the EU and the region.

“Based on the tests we've done as the Ode of Afarism, we have concluded that the 100 percent tax effect has been positive, and that citizens and businesses have seen they can do without Serbian products. Serbian products have been replaced by the best products of both the European Union and the region, which has contributed to the best quality, because Serbian products have always been dangerous according to the analysis from which” came, he said.

While the owner of the Laberion company, Bashkim Osmani, which deals with the production of fluids, told Telegrafi that many business setting reciprocity has asked earlier.

“We since 2013 have requested reciprocity in relation to Serbia, where this move has been welcome. In terms of the food industry, Serbia has lost the market to minimum 80 percent. In addition to reciprocity, we should have other favors, it's about favouring the export, where Serbia has better conditions, I'm talking economically or in fiscal policies”, Osmani said.

He stresses that even though the fee has increased costs, businesses have faced it.

We have higher costs, but it doesn't mean it's a problem, because we've been looking for reciprocity and being equal. It has burdened us in the sense of cost and transport, but not other things, but we have faced”, he said.

According to Kosovo Customs data for the January-July 2018 and 2019 period, it turns out that the import of Serbian products has dropped conspicuously. While the value of exports from Kosovo to Serbia and Bosnia and Herzegovina has not suffered much, Olgraph writes.

Customs says imports from Serbia for this period for 2018 were 177.8m euros, while Kosovo exports reached 16.8m euros.

“in the January-July 2018 period, imports from Serbia to Kosovo were 177.81m euros, while imports from Bosnia and Herzegovina stood at 39.8m euros. In terms of exports of local products to Serbia in the direction of this time, 16.8m euros have been reached, while in Bosnia and Herzegovina's direction the value was 4.6m euros”, the Customs report says on the impact of CEFTA countries.

And, according to the Statistics Agency during August of this year, Kosovo exports have increased 4.7 per cent.

“Export of goods in August 2019 was worth 31.9m euros, while import 311.8m euros, which is a 4.7 per cent export increase and a 1.6 per cent import increase, compared to the same period of 2018<18x1>, says the AS's data on foreign trade, Telegraphed.

On November 6th of last year, the outgoing Government of Kosovo imposed a 10 per cent tax on products originating from Serbia and Bosnia and Herzegovina, and on November 21st, this tax was stiffened 100 percent for all products and goods imported from these two countries. /Telegraphy/