Special reliefs, preferential tax regime such as exemption from VAT and customs duties on imports of raw materials and materials for the production of goods for export, machinery, equipment and construction materials are a sufficient motive for the establishment of free zones in the Republic of Srpska.
The great advantage of doing business is that the import and export of goods to the zone is unlimited. Goods imported from the zone to the domestic market are subject to the regime of import of foreign goods. Employers within the free zone are enabled to lease business premises, workshops, warehouses, also, under favourable conditions.
In the Republic of Srpska, there is a growing interest of local communities and economic entities in the formation of free zones, which is why the authorities have actively started to realize this goal. Namely, at the beginning of the year, the Government of the Republic of Srpska adopted the new Law on Free Zones of the Republic of Srpska, and then the accompanying bylaws. The goal of the new law is to specify, innovate and refine the area of free zones, and the intention was to further promote this instrument of economic policy.
As it was pointed out from the Ministry of Economy and Entrepreneurship of the Republic of Srpska, they are currently working on enabling the exemption from paying VAT on energy, which, as they say, will greatly contribute to the more efficient functioning of free zones.
Local communities have also recognized that free zones are a development opportunity for the domestic economy and a driver of overall economic development. They are aware that their establishment will mean new investments, new jobs, and will increase the volume of foreign trade. The opening of the first free zone in the Republic of Srpska is planned soon in Trebinje. Some local self-government units, such as Gradiška, Prijedor, Zvornik, Bratunac, Vlasenica, Sokolac and Šamac, also recognized the importance of this instrument for attracting new investments and expressed interest in free zones, in terms of forming new or growing existing business zones into free ones.
The first free zone in Trebinje
The favourable geographical position of Trebinje, ie the borders of three countries – BiH, Croatia and Montenegro and the intersection of roads with the shortest connection of the continental part with the coast, and international border crossings of the I category through which all types of goods are transported, rank this city among very favourable locations for the establishment of a free zone.
In order to realize this project as soon as possible, the mayor of Trebinje Mirko Ćurić and the Minister of Finance of the Republic of Srpska Zora Vidović agreed this summer that the Government will support the construction of a free zone in that city, which will enable faster and more efficient economic development. Ćurić then pointed out that he would apply to the Republic of Srpska Government with a project proposal for a future free zone, which is planned to be located on 10 hectares, with the possibility of expanding to 100 hectares.
– The agreement is that it will be a project proposal of up to 1,000,000 BAM, which will represent very important funds for the realization of this important project, which will create conditions for the opening of new jobs – said Ćurić on that occasion.
He reminded that Trebinje, as in many other projects and programs, will be the first local community in the Republic of Srpska in which a free zone will be formed, which will enable numerous benefits to businessmen.
Ćurić stated that he expects that the contractor for the construction of the free zone will be known by the end of the year.
Negotiations for investment in the free zone in Bratunac
After Trebinje, Bratunac is the second unit of local self-government that has gone the furthest in the realization of the establishment of a free zone. Namely, in the immediate vicinity of the new bridge and the border crossing, the Municipality of Bratunac, with the support of the governments of the Republic of Srpska and Serbia, plans to build a free zone. It will cover an area of about 40 ha and will be fully infrastructurally equipped.
It is intended to open the capacity of the processing industry with the possibility of building part of the accommodation and trade capacities in the immediate vicinity of the border crossing, along the Drina River.
The mayor of Bratunac, Srdjan Rankić, is ready to offer locations to domestic and foreign investors under very favourable conditions, as well as a fast and efficient service of the local administration.
Several companies from Serbia and BiH have already confirmed their interest in expanding their business in the future Bratunac free zone. Among the first to be interested were the companies Ekonomik Group from Belgrade, which decided to open a plant for the production of thermal insulation panels in Bratunac and employ about 80 workers, as well as Jokić – Invest from Zvornik, which will be engaged in the production of construction accessories in Bratunac and employ about 50 workers.
Negotiations between the mayor of Bratunac, Srdjan Rankić, and several local and foreign companies in the field of footwear, wood and metal industry, as well as negotiations with companies in the field of tourism and trade, are underway.
Plans for Zvornik
Mayor Zoran Stevanović confirmed in an interview for eKapija how much interest Zvornik has in establishing this zone. According to him, Zvornik has an ideal position at the crossroads and on the border with the Republic of Serbia.
– The development of a free customs zone as such attracts people who are engaged in business. As we know, the free zone is the most important economic and political measure in the field of customs relief, which means that it will be possible to import foreign products without paying customs duties, if these products or the final goods produced from them are not imported into the national customs territory. As such, the zone is an integral part of the economic area. I think that the already active area around the border crossings in the area of Zvornik would become even more frequent and we would probably talk about jobs and profits that would greatly exceed the existing situation. By establishing free zones, we overcome obstacles related to investing in the economy, including restrictive policies, poor governance, inadequate infrastructure, access to land and the like.
For the formation of a free zone in Gradiška 400 ha of land
An important geostrategic position of Gradiška, which is located on the border with Croatia, ie. the European Union, as well as the busiest border crossing in BiH, have significant potentials for development of free zones.
– The Gradiška border crossing strategically has the most favourable position in the Republic of Srpska and BiH, which is why it is the most frequent and covers most of the needs of border traffic with the European Union. Immediately next to the border crossing, the spatial plan envisages 200 hectares of land for the establishment of zones – free economic zones and business zones, and at the same time, an additional 200 hectares have been reserved on the same location for possible expansion, ie covering all perspective needs in the area of establishing zones – said the Mayor of Gradiška, Zoran Adžić, for eKapija.
He added that the planned zones at the border crossing give an exceptional chance to potential investors for several reasons, primarily due to the border crossing with the EU, due to the connection of the Gradiška-Doboj highway and Corridor 5C, the connection with the Belgrade-Zagreb highway after the construction of the new bridge on the Sava.
– All of the above provides unique business conditions to potential investors, especially those who are oriented to more significant export-import needs – Adžić said.
Source: ba.ekapija.com
