Head of the Chamber of Commerce, Kurti: Before replacing the fee, analyze business status

Initially, I wish you good work at the head of the Government, hoping in successful co-operation in the interests of the country's economy.

In recent days, we have followed with great interest the theme of the 100 % fee to Serbia's goods and the idea of replacing it with reciprocity progress, considering that the business community is affected by any such decision.

Kosovo's Economic Oda founded with Law No. 2004/7 from the Parliament of the Republic of Kosovo, represents and protects the interests of more than 16,000 companies, and whenever the need is addressed issues that are in the function of sustainable economic development, and once again, the experts offer professional expertise in addressing them.

To create a general mirror about OEK's stance on the tariff, but also the principle of reciprocity will discuss below some issues that are closely related to these important topics for the private sector.

At the time of the tariff's settlement, in November 2018 respectively, putting aside personal economic interest, the business community has voiced support for this government decision by giving higher consideration to the overall state interest, despite possible financial damage to businesses as a result. Meanwhile, businesses have made maximum efforts to replace products from Serbia, reorienting the market or imports in other countries. This decision has naturally had cost implications, however, in general it has not been reflected in the final prices of products.

According to the report of the Economic Ode, respectively, the measurements we've done with businesses in research “The business climate“is understood that in general the production sector in the country has declared an increase in business activity as a result of the set-up of the fee, even though the reporting period is timed to measure the impact that this measure has in gross domestic production.

The tabernacle is normally an instrument that has both commercial and political implications. It is not ours to assess the political aspect, however, as far as trade implications are concerned, we believe that any replacement of the fee to any other extent should be forwarded to a range of demands in relation to Serbia, especially given the high number of non-tarial barriers either during transit or during export to Serbia's market.

Kosovo's economy since the country's declaration of independence does not develop in accordance with its potential, and this particularly refers to the export sector because of the barriers our products face from neighbouring countries with particular emphasis from Serbia and Bosnia and Herzegovina. The implementation of the CEFTA Agreement continues to be accompanied by numerous difficulties for Kosovo due to the obstacles applied mainly by the upper states, considering the fact that these states do not accept any product that has Kosovo origins.

The applied weights against Kosovo are usually of different natures, including the Technical Trade Barries and the Sanitary Standards and Win the Sanitarians. At the same time, the transit of Kosovo products faces continued administrative barriers.

The first barrier that businesses face, but citizens also face is non-recognition of passport and travel documents, where the greatest damage is caused to businesses due to time, but also the necessity to engage logistics (secretary transport) from countries in the region.

Local producers have many cases when they are damaged by agricultural and industrial imports from Serbia, mainly through the prices of mallagging '%s', being sold cheaper than in the country of origin, which subsequently harms the same local industries. Such are cases of importing flour as well as construction products. The issue of the report on quality or sanitation analysis and the winning of sanitation remains quite disturbing. Kosovo exporters are tasked by the authorities of Serbia, those of food and veterinarians respectively to wait with their maunats for days, for the fact that Serbian authorities do not recognise the analyses of Kosovo exporters. All of this creates additional costs for Kosovo companies in a time and financial sense. Also, even in terms of industrial products, there are many cases where Kosovo exporters are almost unable to export certain products, in the fact that Serbia's relevant authorities do not equip their importers with permission for political reasons, which therefore cannot achieve export by Kosovo companies. Since 2008, many Kosovo companies have been regularly facing the transit problem while importing from EU countries and passing through Serbia's territory to various border points. Even though Kosovo companies possess all relevant documentation, they are also required to offer an import license issued by the Serbian Food and Veterinary Agency or the Ministry of Agriculture. Companies are usually forced to return and use another route via Romania, Bulgaria and North Macedonia, thus reaching Kosovo. On the other hand, the liquor industry repeatedly reports concerns that for any burden entering Serbia, 150 must be paidUR on behalf of the quality certificate, a document issued by the Institute in our country

Farmer, but not recognised by Serbian authorities. That is after the Serbian state, Kosovo companies consider them domestic producers of Serbia.

Furthermore, occurring in this situation and refusing to submit to the paradoxical demands of Serbian authorities when export or transit is carried out in this state, our companies have applied to the practice the opening of philial/deges in the countries of the region.

However, companies repeatedly claim that they are required any very specific permits and certificates to trade with this country, then certificates of transparency, certificates of product quality and additional laboratory tests. On the other hand, it should be mentioned here that the most sensitive problems come from the customs authorities, that is. When the product is “cheap” (with a low price), customs require the company's confirmation of the value of goods, but, even after receiving that confirmation, Serbian authorities make a new estimate of goods (other than meaning increases in customs base), and tariffs will then rise markedly. Furthermore, Serbian authorities always seek the change of license plates for transportation vehicles so that they can be allowed to cross the border, which on one side is additional costs and, in turn, is lost time for companies. Some of the companies have either already done it or are considering changing the trade corridor with Serbia (even transit) or in the worst cases even closing the business. Both options are costly; however, businesses are failing to find another option.

Under economic barriers, there should be a mention of not knowing certificates and professional qualifications since 2015. Serbia maintains “prevents” the process initiated by CEFTA and other regional initiatives.

In closing these barriers, the particular emphasis should be given on the fact that the Serbian state does not recognise any documents issued by the institutions of the Republic of Kosovo, except Euro1 issued by Kosovo Customs.

The business community supports whatever measures are in general state interest, but considers a detailed analysis of the demands of businesses and other implications needed before making decisions affecting the activities of Kosovo's Republic citizens.

We deeply believe that with good inter-institutional co-operation we will be able to strengthen the trust of the business community in the work of state institutions, and we can offer them clarification on these important issues.

Honestly,

Berat Rukiqi

Speaker