Effective trade policy is vital for regional integration and alignment with the European Union. This chapter examines how the government authorities in Bosnia and Herzegovina use trade policy to ease market access and harness digitalisation for enhanced trade facilitation. The first sub-dimension, trade policy framework, assesses the government’s ability to formulate, implement and evaluate trade policy, examining the institutional formulation and co-ordination of trade policy, public-private consultations and the network of free trade agreements. The second sub-dimension, digital trade, focuses on the legal framework for digital trade policy and digital trade facilitation and logistics. The third sub-dimension, export promotion, explores the effectiveness of export promotion agencies and programmes, especially in the context of deepening regional integration.
Western Balkans Competitiveness Outlook 2024: Bosnia and Herzegovina
3. Trade policy
Abstract
Key findings
Bosnia and Herzegovina’s score since the 2021 assessment cycle considerably improved to reach 3.6 in 2024. There has been progress observed under the export promotion sub-dimension, in which Bosnia and Herzegovina exceeds the regional average, and the trade policy framework sub-dimension, where the economy scores slightly below the regional average (Table 3.1).
Table 3.1. Bosnia and Herzegovina’s scores for trade policy
Dimension |
Sub-dimension |
2018 score |
2021 score |
2024 score |
2024 WB6 average |
---|---|---|---|---|---|
Trade |
2.1: Trade policy framework |
4.3 |
4.4 |
||
2.2: Digital trade |
2.6 |
3.8 |
|||
2.3: Export promotion |
3.8 |
3.6 |
|||
Bosnia and Herzegovina’s overall score |
2.2 |
2.5 |
3.6 |
3.9 |
The key findings are:
Despite improvements since the last assessment cycle, Bosnia and Herzegovina does not currently have an overarching economy-wide trade strategy governing adopting new trade policies to improve trade performance.
There is a deficiency in monitoring and evaluating digital trade policies, both at the entity and state levels, marked by a notable absence of performance indicators designed explicitly for digital trade.
While notable progress has been in implementing digital trade facilitation measures, such as the New Computerised Transit System, the economy still lacks sufficient measures to enhance the paperless trade environment.
The Indirect Taxation Authority (ITA) started implementing Authorised Economic Operations (AEO), with the first two companies with AEO status registered in late 2023.
Bosnia and Herzegovina has made significant progress in the implementation of export promotion programmes, having implemented new initiatives, including disseminating trade policy information, representation at trade fairs, capacity building, facilitating business-to-business matchmaking with potential partners, and aiding in compliance with international standards.
Bosnia and Herzegovina stands out in the Western Balkan region as one of the few economies with a dedicated unit focused on incorporating environmental goals into trade policy development.
State of play and key developments
Bosnia and Herzegovina improved its trade performance since the last assessment cycle. Trade in goods reached 102.4% of GDP in 2022, up from 91.5% in 2021 (World Bank, 2024[1]) .Nevertheless, export composition lacks diversity, primarily relying on essential metals, furniture, and textiles (European Commission, 2023[2]). Despite adapting to shifts in global demand and emphasising value added services like trade, IT, and tourism, the total trade in services reached 15.9% of GDP in 2022 (compared to 13.2% in 2021), the lowest percentage in the Western Balkans. In 2022, exports of goods and services amounted to EUR 8 billion (USD 8.8 billion) and EUR 2.7 billion (USD 2.9 billion), respectively, showcasing moderate growth from from 2019 to 2022 (World Bank, 2024[1]). Economic integration with the EU remains strong, with the EU as the leading trading partner. Germany and Croatia remain Bosnia and Herzegovina’s primary export recipients (each receiving 15% of the economy’s total exports). The rest of the EU accounts for 44% of the economy’s exports, followed by Central European Free Trade Agreement (CEFTA) members (CEFTA, 2023[3]).
Sub-dimension 2.1: Trade policy formulation
The Ministry of Foreign Trade and Economic Relations (MoFTER) is the crucial institution competent in trade policy formulation, co-ordination and implementation.1 All institutions formulating trade policies must develop an annual work plan, subject to approval by the Council of Ministers of Bosnia and Herzegovina. Throughout the entire policy-making process – from initiation and formulation to implementation, evaluation, and monitoring – there is a consistent emphasis on interministerial co‑ordination and consultations with the Chambers of Commerce. Following the implementation of a specific trade policy measure, each institution is required to assess its execution by providing regular reports on both the progress in implementing the work programme and the impact of the enacted trade policy measures. MoFTER publishes annual reports on its work plans on its website. However, the Ministry does not have an updated strategy to improve trade performance.
Bosnia and Herzegovina is one of the few economies in the Western Balkan region, with a dedicated unit responsible for integrating environmental objectives into trade policy formulation. Notably, within MoFTER, the specialised unit is dedicated to co-ordinating environmental policies among the entities of Bosnia and Herzegovina, ensuring alignment with pertinent EU and international standards. This comprehensive approach underscores the commitment to a well-informed and collaborative foreign trade policy framework. By considering environmental factors in trade policy, Bosnia and Herzegovina can better balance economic growth with environmental protection. Such integration can lead to developing eco-friendly trade practices, such as promoting green industries and encouraging the adoption of cleaner technologies. While the clear interconnection between trade policy and the environment has been institutionalised, it is noteworthy that the government has yet to collect data on the environmental aspects of trade systematically.
MoFTER was the primary beneficiary of the EU4Trade Programme, concluded in 2023, which aimed to improve the regulatory framework for trade in goods and services (Box 3.1).
The regulations governing public-private consultations exhibit inconsistencies throughout the economy, lacking a cohesive strategic framework for collaboration with civil society at both the state and entity levels. On the state level, the eKonsultacije procedure facilitates public submissions and requires all comments to be addressed before an act can proceed. There has been moderate progress in the Republika Srpska (RS) with a new legislative framework adopted in January 2021. The new framework obligates the ministry to publish the working version of the strategic and/or implementation document (including draft version, goals, implementation activities and topic) on the ministry’s website at least 15 days before adoption. However, the limited availability of comments and the ministry’s responses creates an impractical time frame for incorporating all feedback. Despite improvements in the scope of the consultation process, there are no procedures in place for allowing citizens concerned or potentially affected by a regulation to provide comments before a measure is adopted. Furthermore, the Ministry of Trade and Tourism does not have accurate information regarding participation in the legislative process and, therefore, cannot accurately measure the impact of stakeholder participation. In the Federation of Bosnia and Herzegovina (FBiH), the requirement to engage in public-private consultations is mandated by both general and sector-specific regulations. However, no new developments have been recorded since the last assessment cycle.
Box 3.1. EU4Trade in Bosnia and Herzegovina
This initiative was launched in September 2020 and lasted 34 months. It was implemented by MoFTER and the Indirect Taxation Authority (ITA), both key partners and beneficiaries of the project. The goal of the EU4Trade Project is to enhance Bosnia and Herzegovina’s competitiveness in foreign trade. This involves strengthening the capacity to enhance the regulatory and procedural framework for both goods and services trade.
The project comprises two main components:
1. Component 1 focuses on enhancing the regulatory and procedural framework for both goods and services trade to align with international standards.
2. Component 2 is dedicated to implementing risk-based systems and enhancing import, export, and transit regimes for goods.
The expected results of the project were the following:
enhancing the regulatory and procedural framework for goods and services trade
strengthening knowledge and understanding through capacity building
conceptualising the establishment of a Service Centre
promoting awareness of international trade in services
streamlining formalities associated with import, export, and transit to alleviate logistical burdens
enhancing the use of risk management and fostering inter-agency co-operation at borders
prioritising the processing of perishable goods at the border
reviewing and recommending provisions for an Authorised Economic Operators programme
enhancing the framework and mechanism for pre-arrival processing of goods
facilitating study visits to acquire practical knowledge.
Source: EU4Trade (2024[4]).
Limited progress was made in expanding Bosnia and Herzegovina’s network of bilateral and multilateral free trade agreements (FTAs), and no advances were made in the economy’s accession to the World Trade Organization.
Sub-dimension 2.2: Digital trade
The development of the regulatory policy framework for digital trade in Bosnia and Herzegovina is still in its early stages. No significant changes have occurred in the framework since the last assessment cycle, and there has been minimal advancement of its implementation. The Law governs the regulatory framework for digital trade at the state level on electronic and legal business transactions, enacted in 2007. The creation of an Office for Supervision and Accreditation within the Ministry of Communications and Transport in 2019 facilitated the implementation of the Law on Electronic Signatures and issuing authenticated electronic signatures in the economy. The legislation delineates the legal framework for specific aspects of electronic legal and business interactions, covering activities such as providing information society services, the responsibilities of service providers, contract formation, and service provider accountability. While partially harmonised with EU regulation, it establishes a comprehensive structure for e-commerce governance in the economy. The Law primarily governs the legal framework for e‑business in RS on Electronic Business, enacted in 2009 and amended in 2016. Additionally, elements of e-commerce are regulated by the Law on Trade (2019), RS Consumer Protection Law (2012, amended in 2014, 2017, and 2021), and the updated Rulebook on Distant Sales Methods and Procedures (2021). As the policy framework for digital trade is still underdeveloped, no overarching digital trade strategy or agenda is in place, neither at the state nor entity levels. The lack of a well-defined digital trade strategy implies no cohesive and co-ordinated plan to address the various aspects and challenges associated with digital trade within the jurisdiction. This absence underscores the need to formulate and implement a strategic framework to guide and regulate e-commerce activities, fostering a more structured and effective approach to this rapidly evolving aspect of digital trade.
The oversight and assessment of digital trade policies are currently lacking, both at the entity and state levels, with a notable absence of performance indicators tailored explicitly to digital trade. This deficiency suggests a lack of systematic monitoring and evaluation mechanisms to gauge the effectiveness and impact of existing digital trade policies.
Non-tariff barriers, logistical and infrastructural deficiencies, and ineffective border management compromise Bosnia and Herzegovina’s competitiveness in foreign markets. To address the bottlenecks, the economy introduced new digital trade facilitation measures.
As of August 2022, the economy implemented the New Computerised Transit System (NCTS). This system facilitates customs procedures by enabling the electronic submission and processing of transit declarations, thereby streamlining operations and fostering efficiency. The implementation of NCTS is poised to significantly enhance the movement of goods across borders, offering benefits such as improved accuracy in customs data, reduced paperwork, and an overall more effective and streamlined customs environment. Moreover, the incorporation of NCTS aligns with broader initiatives across the Western Balkans, aimed at bringing customs practices in line with international standards and advancing trade facilitation efforts (United Nations Economic Commission for Europe, 2021[5]).
The implementation of the 2015 Law on Customs Policy, which is partially harmonised with the EU acquis, commenced in August 2022 following the adoption of the Law on Customs Offences (European Commission, 2023[2]). In the context of the Law on Customs Policy, the Indirect Taxation Authority (ITA)2 started implementing the Authorised Economic Operations (AEO) programme, which is currently being promoted both by the ITA itself and through projects led by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), EU4TRADE, and the United States Agency for International Development (USAID). The AEO programme rollout has already seen results, with the first two companies3 with AEO status registered in October and December 2023 (CEFTA, 2023[3]).
The NCTS rollout and the implementation of the Law on Customs Policy in August 2022 were not captured in the OECD Trade Facilitation Indicators assessment, which could explain the stable scores from the 2019 TFI assessment cycle (Box 3.2).
There is room for improvement in implementing measures to encourage the transition towards a more streamlined and efficient paperless trade environment. There is scope to develop further and refine strategies to reduce reliance on traditional paper-based processes, foster digitalisation, and promote the adoption of electronic documentation in trade-related activities. Bosnia and Herzegovina has not implemented an Electronic Single Window, so traders do not have a single entry point for submitting import/export documents. With an Electronic Single Window, clearance of goods would be expedited, thus reducing the cost for traders (UNECE, 2003[6]). Similarly, the economy has not implemented systems for the electronic application and issuance of import and export permits and preferential certificates of origin (United Nations Regional Commissions, 2023[7]), further hindering trade processes at the border.
Box 3.2. Bosnia and Herzegovina’s performance under the OECD Trade Facilitation Indicators
The OECD has developed Trade Facilitation Indicators (TFIs) to aid governments in streamlining border procedures, lowering trade costs, boosting trade volume, and maximising benefits from international trade (Figure 3.1). These indicators also function as a tool for economies to assess the status of policy implementation across various areas and measures specified in the WTO Trade Facilitation Agreement.
Since the 2019 TFI assessment, Bosnia and Herzegovina’s score remained unchanged, with the exception of the scores under the procedures and internal border co-operation indicators. The score in the latter almost doubled from 0.46 to 0.82, indicating progress in that area. The economy exceeds the OECD average under the advance rulings indicator and outperforms the Western Balkan economies1 under the following indicators: advance rulings, appeal procedures, fees and charges and governance and impartiality. Bosnia and Herzegovina’s average trade performance only slightly increased from 2019.
1. The OECD Trade Facilitation Indicators assessment covers Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia.
Source: OECD (2022[8]).
In terms of compliance with international agreements and instruments governing digital trade, Bosnia and Herzegovina has yet to endorse critical instruments, including the UN Electronic Communications Convention and the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce (Table 3.2). These agreements advocate standardisation of national laws regulating e-commerce transactions, playing a vital role in establishing regulatory norms for e-transaction frameworks, e-authentication, e-signatures, and electronic contracts (OECD, 2021[9]). Nor has the economy aligned with the Information Technology Agreement, which, on a most-favoured-nation basis, removes tariffs for a broad range of IT products, including computers and telecommunications equipment.
Table 3.2. OECD Digital Trade Inventory for Bosnia and Herzegovina
Instrument |
Description |
Bosnia and Herzegovina adherence |
|
---|---|---|---|
E-transaction frameworks |
JSI Participant |
WTO Joint Statement Initiative comprises discussion on trade-related aspects of e‑commerce, including cybersecurity, privacy, business trust, transparency, and consumer protection. |
|
UN Electronic Communication Convention |
Convention encourages the standardisation of national laws and regulations governing e‑commerce transactions. |
||
Consumer protection |
OECD Recommendation of the Council on Consumer Protection in E-commerce |
The OECD Recommendation on Consumer Protection in E-commerce provides guidelines and recommendations for member countries to enhance consumer protection in the context of electronic commerce. The recommendations typically cover various aspects of online transactions to ensure that consumers can engage in e‑commerce with confidence and trust. |
|
Paperless trading |
WTO Trade Facilitation Agreement |
The Trade Facilitation Agreement (TFA) includes clauses aimed at accelerating the transit, release, and clearance processes for goods, encompassing those in transit, and outlines measures for fostering efficient collaboration between customs and relevant authorities concerning trade facilitation and customs compliance matters. |
1 |
Cross-border data transfer/Privacy |
Convention 108 |
Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data is the first legally binding international treaty dealing with privacy and data protection. |
|
2001 Additional Protocol to the Convention |
The Additional Protocol reinforces the protection of individuals' rights in the context of automated processing of personal data and encourages international co-operation on privacy and data protection matters. |
||
Convention 108+ |
2018 Amending Protocol to Convention 108 updates the provisions on the flow of personal data between signatories. |
||
Cybersecurity |
The Convention on Cybercrime of the Council of Europe (Budapest Convention) |
An international treaty aimed at addressing crimes committed via the Internet and other computer networks. It serves as a framework for international co‑operation in combating cyber threats and promoting a harmonised approach to cybercrime legislation. |
|
Goods market access |
The Information Technology Agreement |
The Information Technology Agreement, on a most-favoured-nation basis, removes tariffs for a broad range of IT products, including computers and telecommunications equipment. |
|
Updated ITA concluded in 2015 |
Covers the expansion of products included in the Information Technology Agreement by eliminating tariffs on an additional list of 201 products. |
Note: Bosnia and Herzegovina is not yet a WTO member so it cannot ratify the Trade Facilitation Agreement.
Sub-dimension 2.3: Export promotion
The Foreign Trade Chamber of Bosnia and Herzegovina (FTC BiH) holds a national-level mandate of an export promotion agency. Within FTC BiH, the Bosnia and Herzegovina Export Promotion Agency (BHEPA) is responsible for strengthening the position of Bosnian companies on international markets. Apart from FTC BiH, the Export Council of Bosnia and Herzegovina, operating within MoFTER, plays a crucial role with its primary objective of co-ordinating all promotional activities related to exporting goods and services. It achieves this through a distinctive form of state-private partnership and a collaborative agreement process. This process involves representatives from various institutions and the private sector, who engage in consensus building on crucial matters, thereby contributing to a co‑ordinated and effective approach to promoting exports. The governing body of the FTC BiH, known as the FTC BiH Assembly, has endorsed the "Guidelines for the FTC BiH's long-term activity plan for 2023-26”. These guidelines, effective from January 2023, outline the strategic focus areas for providing services to SMEs, which include digitalisation and the circular and green economy, as well as internationalisation.
Operating with complete operational autonomy, FTC BiH is supported by a dedicated budget, primarily sustained through membership fees, revenue generated from services, and contributions from international projects, often with the involvement of international donors. Furthermore, a portion of the budget is allocated to supporting Bosnian exporters in participating in international trade fairs. In 2022, the budget amounted to 0.05% of the economy’s value of exports, compared to 0.06% in 2021.
Despite the absence of a dedicated export promotion agency in RS, the Ministry of Economy and Entrepreneurship oversees export promotion initiatives and manages a website specifically designed for foreign investors and exporters.
Bosnia and Herzegovina made strides in implementing export promotion programmes. Those offered at the state level include providing trade policy information, representation at trade fairs, capacity building, business-to-business matchmaking with potential partners, and assistance complying with international standards. In 2023, the FTC BiH introduced a specialised webpage for small and medium-sized enterprises (SMEs). Serving as a centralised hub for comprehensive information, the webpage provides valuable details on various topics, including financing opportunities. Additionally, the portal features a complementary e-learning platform with course modules on e-commerce, information on each stage of the internationalisation process, and diagnostics of companies’ export capacity.
Advances were made in implementing programmes like ExpoDigit,4 geared towards enhancing the competitiveness and international reach of metal-processing and wood-processing companies within the economy. With 31 beneficiaries involved in the ExpoDigit project, efforts are directed at facilitating their export capabilities. Furthermore, as part of the COVID-19 Investment Response – EU4BusinessRecovery Action – the Green Recovery component focuses on building the capacities of both private and public entities. The aim is to support the green transformation, specifically in sectors like metal and wood processing, with 40 beneficiaries actively participating in the initiative to date, contributing to the overall goals of export promotion in strategic sectors. In RS, financial support programmes are available, although they mainly target investors rather than exporters, offering incentives to promote the adoption of innovative technologies that can indirectly lead to export activities. In addition, the Ministry of Economy and Entrepreneurship awards incentives to business entities to acquire new equipment and employ new technologies. In 2021, the total budget for these purposes was BAM 7 million (EUR 3 500 000); in 2022, it increased to BAM 13.5 million (EUR 6 900 000). The uptake also rose from 207 business entities in 2021 that were awarded the incentive to 238 in 2022.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Bosnia and Herzegovina’s progress in implementing 2021 Competitiveness Outlook Recommendations has been rather modest (Table 3.3), with moderate progress achieved in creating a formal interministerial co-ordination mechanism and collecting data on stakeholders involved in public-private consultations. There was no evidence of progress in monitoring and evaluation of public-private consultation frameworks, and none was observed in finalising the drafting of the Law on Electronic Communication and Electronic Media or adopting new legislation on electronic identification and trust services for electronic transactions.
Table 3.3. Bosnia and Herzegovina’s progress on past recommendations for trade policy
Competitiveness Outlook 2021 recommendations |
Progress status |
Level of progress |
---|---|---|
Create a formal interministerial co-ordination mechanism based around a specific action plan on improving overall trade performance to boost co-operation between different ministries and government bodies |
At the state level, interministerial co-ordination and consultations with the national and entity Chambers of Commerce are conducted in a complementary manner during all stages of policy making (i.e. initiation; formulation; implementation; evaluation; monitoring). Furthermore, every institution tasked with shaping trade policy is mandated to develop an annual work plan. This plan requires approval by the Council of Ministers of Bosnia and Herzegovina. When the work programme encompasses the execution of specific trade policy measures, including the drafting and endorsement of trade regulations, there is an obligation to conduct preliminary consultations with the business community and pertinent institutions across all levels of government in Bosnia and Herzegovina. There is a formal interministerial co-ordination mechanism framework in RS, which has been strengthened in 2018. The Trade Development Council serves as the main advisory body in charge of trade policy formulation and it meets every 6 months. |
Moderate |
Collect data on stakeholders involved in consultations for monitoring and evaluation purposes |
At the state level, in the eKonsultacije procedure, the consultation reports include details about the individuals or groups involved in the consultation. Each report specifies whether the suggestions or comments from the public were accepted, partially accepted, or declined. Additionally, annually, every organisation submits a questionnaire to the Ministry of Justice of Bosnia and Herzegovina assessing the general public's involvement in the consultation procedures. However, progress remains moderate, as the consultation mechanism is not updated based on monitoring and evaluation results. In RS, despite improvements in the scope of the consultation process, there are no procedures in place for allowing citizens concerned or potentially affected by a regulation to provide comments before a measure is adopted. Furthermore, the Ministry of Trade and Tourism does not have accurate information regarding participation in the legislative process and cannot therefore accurately measure the impact of stakeholder participation. |
Moderate |
Set up a process for regularly reviewing consultation frameworks according to established goals of effectiveness, efficiency, inclusiveness and transparency, as well as performance indicators |
There is no evidence of progress. |
None |
Reinforce the regulatory framework on e‑commerce by finalising the drafting of the Law on Electronic Communication and Electronic Media and adopting new legislation on electronic identification and trust services for electronic transactions (e‑signature) |
There is no evidence of progress. |
None |
The way forward for trade policy
Develop a strategic framework for improving trade performance. Trade in Bosnia and Herzegovina remains below potential despite high integration with the EU. This framework should encompass a systematic approach that identifies key objectives, assesses existing challenges, and outlines coherent strategies and initiatives. Consideration should be given to factors such as market analysis, regulatory adjustments, infrastructure enhancements, and capacity building. Additionally, the strategic framework should be adaptable to evolving economic landscapes and be supported by measurable indicators to gauge progress and effectiveness.
Further strengthen the legal framework for digital trade and develop a multi-faceted digital trade strategy for all levels of government. The regulatory framework for digital trade is still in its early stages in Bosnia and Herzegovina and is not fully aligned with the EU E-commerce Directive.5 Consequently, there is a pressing need for legislative reforms and harmonisation efforts to establish the regulatory environment for digital trade in Bosnia and Herzegovina. This alignment is crucial to facilitate cross-border digital transactions, enhance legal clarity, and promote a business-friendly atmosphere that encourages both domestic and international e‑commerce activities. The economy should also adopt domestic policies designed to create an enabling environment, for businesses and consumers to use digital technologies and platforms and fully reap the benefits of digital trade (IMF, OECD, UN, World Bank, WTO, 2023[10]). Moreover, Bosnia and Herzegovina should develop an overarching strategy to further digitalise trade and boost the uptake of e-commerce. Such a strategy should involve a holistic approach that addresses technological, regulatory and collaborative aspects to capitalise on the opportunities presented by the digital economy and foster sustainable international trade.
Strengthen monitoring and evaluation of digital trade facilitation measures. Introducing and reinforcing monitoring and evaluation of digital trade facilitation measures is significant for Bosnia and Herzegovina. This process enhances trade efficiency, attracts foreign investments, promotes growth, ensures transparency, and fosters compliance with international standards. It makes the economy more competitive in the global market, facilitates data-driven decision making, and increases trade resilience, ultimately contributing to economic development and prosperity.
Intensify efforts to enhance the efficiency of the paperless trade environment, particularly considering the absence of an electronic single window system. A single window is a centralised platform that facilitates the electronic submission and processing of trade-related documents, streamlining customs procedures and reducing the reliance on paper documentation. Bosnia and Herzegovina could refer to North Macedonia’s example and the processes the economy had to follow to establish an electronic single window (Box 3.3). Accelerating initiatives to enhance the paperless trade environment in Bosnia and Herzegovina is necessary to modernise and optimise trade processes. This involves implementing technological solutions and establishing a comprehensive framework that encourages digitalisation and facilitates electronic interactions in import/export, ultimately contributing to increased efficiency, cost-effectiveness, and overall competitiveness in international trade.
Box 3.3. Electronic single window in North Macedonia
After implementing the system in 2008, North Macedonia became a pioneer in the regional adoption of the single window.
The project's overarching goal was to facilitate and improve access to and exchange of cross‑border data and information among different government agencies and between the government and the business community. Specifically, the project aimed to establish conditions for the submission of import/export/transit data in a unified manner at a single entry point, promoting more efficient co-ordination of all cross-border controls and inspections.
Efforts to implement the single window were launched after the assigned working group conducted a comprehensive analysis of the necessary trade data and the trade procedures undertaken by each government agency participating in foreign trade transactions. Utilising the information gathered, and in alignment with UNECE Recommendation 33 on Establishing a Single Window1 and Recommendation 34 on Single Window Data Harmonization and Standardisation,2 the group standardised the required trade data across different agencies and aligned them with the World Customs Organization (WCO) Data Model.3
The working group then focused on recognising legal impediments and enhancing the legal framework for the single window project’s implementation. The areas under examination encompassed, among other aspects, the electronic submission and issuance of import/export licences and various trade documents, electronic signatures, security concerns, and the identification of system users, as well as liability issues. To implement the system, North Macedonia modified numerous laws and regulations governing administrative procedures, fees, electronic signatures, and more. Additionally, the government enacted a distinct regulation to establish a single window.
As a result, EXIM4 became operational in November 2009. The business community can open EXIM via any web browser. Once the licence application is submitted, it is automatically directed to the relevant institution in charge. Applicants can track the status of their submission within EXIM and receive email notifications for any changes in status. Each institution has the capability to communicate with the applicant, allowing for requests for additional data or corrections. Electronic copies of licences issued by the relevant institutions are accessible to the authorities responsible for overseeing shipments at border crossings or internal customs terminals. Moreover, the system enables the electronic submission and distribution of tariff rate quotas. Users of the EXIM system, whether from businesses or institutions, can perform actions within the system after prior identification using valid digital certificates. EXIM is free of charge for all users.5
The implementation of the single window resulted in a smaller number of documents needed for trade-related procedures, streamlined issuing and tracking licences, and overall savings of time and resources in border processes.
3. The WCO Data Model is the fundamental data framework for global trade interoperability. It was created to establish a common system for cross-border data exchange and facilitate the implementation of single-window systems. The WCO Data Model comprises meticulously organised, harmonised, standardised and reusable sets of data definitions and electronic messages, crafted to fulfil the operational and legal needs of customs and other regulatory agencies involved in cross-border activities (World Bank, 2024[11]).
4. www.exim.gov.mk.
5. Apart from the purchase of digital certificates.
Source: World Customs Organisation (2009[12]).
References
[3] CEFTA (2023), Authorized Economic Operations Database, https://transparency.cefta.int/AuthorizedEconomicOperator/IndexPublic?FullName=&AEOStatusID=&PartyID=3&StartDateFrom=&EndDateFrom=&StartDateTo=&EndDateTo= (accessed on 14 June 2024).
[4] EU4Trade (2024), Improving Foreign Trade and Competitiveness of Bosnia and Herzegovina, https://eu4tradeproject.eu/ (accessed on 13 June 2024).
[2] European Commission (2023), Bosnia and Herzegovina Report 2023, https://neighbourhood-enlargement.ec.europa.eu/document/download/e3045ec9-f2fc-45c8-a97f-58a2d9b9945a_en?filename=SWD_2023_691%20Bosnia%20and%20Herzegovina%20report.pdf.
[10] IMF, OECD, UN, World Bank, WTO (2023), Digital Trade for Development, https://www.wto.org/english/res_e/booksp_e/dtd2023_e.pdf.
[8] OECD (2022), Recommendation of the Council on OECD Guidelines for Managing Conflict of Interest in the Public Service, OECD Publishing, Paris, https://legalinstruments.oecd.org/public/doc/130/130.en.pdf.
[9] OECD (2021), Digital Trade Inventory, https://doi.org/10.1787/9a9821e0-en.
[6] UNECE (2003), The Single Window Concept, https://unece.org/fileadmin/DAM/trade/ctied7/ece_trade_324e.pdf.
[5] United Nations Economic Commission for Europe (2021), New Computerised Transit System, https://unece.org/fileadmin/DAM/trans/doc/themes/UNDAC2C/Geneva2016/Meszaros210616.pdf.
[7] United Nations Regional Commissions (2023), Global Survey on Digital and Sustainable Trade Facilitation, https://www.untfsurvey.org/.
[11] World Bank (2024), BIH Firm Receovery and Support Project, https://projects.worldbank.org/en/projects-operations/project-detail/P174604.
[1] World Bank (2024), World Development Indicators, DataBank, https://databank.worldbank.org/source/world-development-indicators (accessed on 6 February 2023).
[12] World Customs Organisation (2009), Single Window Report - Executive Summary, https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/activities-and-programmes/sw-initiatives/macedonia/macedonia-single-window-report-january-2009.pdf?la=en.
Notes
← 1. Foreign trade policy development falls under Bosnia and Herzegovina’s MoFTER competency.
← 2. The Indirect Taxation Authority oversees implementation of digital trade facilitation measures across the state and entity levels.
← 3. Schenker d.o.o. and Nelt d.o.o.