WTO status and membership in other trade associations

Laws and regulations

Institutions

The Directorate for Multilateral and Regional Trade Cooperation and Economic Foreign Relations of the Ministry of Economy is responsible for defining, implementing and organizing trade policy measures.

Export

Pursuant to the Law on Foreign Trade, foreign trade in goods is free and can be restricted only under the special conditions prescribed by this Law. Any person can deal with export in accordance with the regulations governing the performance of a particular activity. Exporters of goods which is subject to licensing for performing activities are obliged to fulfill the conditions of registration in accordance with the Law on Tobacco, the Law on Medicines, Law on the Production and Trade of Narcotic Drugs and Law on Chemicals.

Customs duties on exports are not applied in Montenegro, nor is it prohibited to export certain goods. Exceptionally, the Government may only impose a quantitative restrictions on exports:

- in the event of a critical shortage of essential products in Montenegro or the need to eliminate the consequences of such a shortfall;
- for the protection of non-renewable natural resources, if the limitation of exports is applied along with the restriction of domestic production or consumption.

Import

- in the percentage rate in relation to the value of the goods (ad valorem) and
- in a certain amount per unit of measures for the mass of goods (specific customs duty).

For a part of agri-food products, a combined customs duties, i.e. at the same time, ad valorem and specific customs duties are charged. Ad valorem customs duties are prescribed in the range from 0% to 30%. The specific duty varies from 0.04 € per 1 kg to 1 € per 1 kg.

The rates of customs duties prescribed by international agreements apply only to goods with preferential origin from the countries covered by the agreement.

The Customs Tariff of Montenegro recognizes only the customs quantitative quotas for certain agri-food products, as defined by the Stabilization and Association Agreement between the EU and Montenegro and the Free Trade Agreement between Montenegro and the Republic of Turkey.

Alcohol and alcoholic beverages, tobacco, carbonated water as well as mineral oils, their derivatives and substitutes are subject to excise tax collection in accordance with the Law on Excise Taxes. Excise taxes are charged on import. From February 27, 2015, payment of the tax on coffee is introduced in accordance with the Law on Tax on Coffee. Value added tax is charged on import and domestic goods at the rate of 21% and 7%. The obligation to pay VAT on importation occurs simultaneously with the obligation to pay customs duties and other import duties.

VAT on goods temporarily exported for further processing, repairs or installation is determined upon return according to the value added in the foreign country and the material used for the said purposes. Exemption from payment of VAT equally applies to both, imported and domestic goods. Temporarily imported goods are exempt from payment of VAT, provided that they are also exempt from payment of customs duty under customs regulations. For goods that are exempted from paying VAT and subsequently put into free circulation, VAT is calculated (in the same amount that would have to be calculated when importing such goods).

Documents

The Law on Foreign Trade with Weapons, Military Equipment

Law on export control of  Dual-use Goods
Customs quantity quotas
The Law on Excise
Exemption of VAT

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