Supported application of alternative rules of origin
On June 6, 2022, the Council of Ministers of BiH adopted the Information on Alternative Applicable Rules of Origin with the aim of introducing them into free trade agreements concluded by Bosnia and Herzegovina.
The Ministry of Foreign Trade and Economic Relations of BiH is obliged to take the necessary actions to enable the application of alternative rules of origin in accordance with the provisions of the CEFTA 2006 agreement, the Free Trade Agreement with the EFTA countries and the Free Trade Agreement with the Republic of Turkey. The Ministry of Foreign Affairs of BiH is in charge of taking the necessary actions in order for the Stabilization and Association Council, in accordance with the provisions of the Stabilization and Association Agreement (SAA), to make a decision allowing the application of alternative rules of origin. The mentioned ministries are obliged to inform the Council of Ministers of BiH about the realization of all activities.
Alternative rules of origin derive from the Revised Convention, which, due to lack of consensus, was not adopted by the Joint Committee of the PEM Convention on 27 November 2019, but allowed signatory members to apply it on a bilateral and transitional basis.
The improvements in the Revised Convention consist of the introduction of more flexible and simpler rules that industry in BiH will be able to meet more easily and thus increase its export competitiveness.
The revised specific rules for agricultural and industrial products are more flexible and adapted to modern conditions of production and trade, and it is generally easier to meet the criteria for acquiring originating status.
The application of alternative rules was supported by the competent entity and institutions of the Brčko District of BiH, as well as the Chamber of Commerce.