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Foreign trade operations

News about the Decision on wine import from the EU

News about the Decision on wine import from the EU at a preferential duty rate

The decision on wine import from the EU at a preferential duty rate was rendered at the Government session on 26th November 2020 (“Official Gazette of the RS“ No. 144/2020) according to the Foreign trade Act.

This decision regulates the distribution method and specific terms of quota distribution for wines with tariff subheadings ex 2204 10 i ex 2204 21 of the Customs tariff, originating from the European Union into the Republic of Serbia, within the total annual customs quota of 25.000 hectolitres (2.500.000 litres), agreed on in the Stabilization and Association Agreement between European communities and their member states, of the one part, and the Republic of Serbia, of the other part (“Official Gazette of the RS – International Agreements“ No. 83/08 and 12/14). The marketing year in which quota is distributed encompasses the period from 1st January to 31st December.

The reason for rendering the Decision is the disturbance on the wine market caused by the fact that the customs quota for wine import from the European Union in 2020 was reached in July and that the import participation of a single importer was over 50%. As a reminder, in previous years, the quota for wine import was not reached at all or reached only at the end of the year, which enabled traditional importers to fulfill their contractual obligations unhindered. The available quotas are usually distributed in the “first come – first served” manner, unless they adhere to the import of cigarettes from the EU (with permits). 

The point is that the total customs quota is divided into quarterly quotas of 625.000 litres and that the maximum amount that can be imported by a single business entity in each of the first three quarters   makes up 15% of the quarterly quota. If a business entity does not import 15% of the allowed quota in the previous period, the lacking quantity is added to the allowed quantity in the following quarter.

This decision becomes effective on the day following the day of publishing in the “Official Gazette of the RS“, and will be applied as of 1st January 2021.
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