The existing assistance from the European Union in the areas of concern will also be briefly discussed. Economic Reform and Development '' with the aim of facilitating the creation of the only economic space in BH that complies with the Acquis Communautaire. This issue is closely linked to the issue of creating a single economic space within the country.
Internal Market Integration
Short overview
Freedom of establishment is also guaranteed by the Treaty and concerns the economic activity of self-employed natural persons and companies. The free choice of place of residence may therefore be subject to minimum conditions regarding resources and health insurance if the person does not practice a profession in the country concerned. SAA with BH will, among other things, ensure non-discriminatory treatment of employees who work legally at BH (as well as their families).
This will include the possibility of aggregation or transfer of social security rights and will encourage EU member states to conclude bilateral agreements with BiH on access to labor markets. Due to the specific constitutional structure of BiH, where the field of work, social security and education are under the competence of the subjects (Federation of Bosnia and Herzegovina - FBH and Republika Srpska - RS), the first problem that the authorities of BiH had to face with is the removal of all obstacles to the free movement of domestic workers within BiH. In this way, domestic workers will be allowed to transfer pensions, health insurance and education rights from one entity to another.
However, it seems that things are moving forward, especially because the Law on the Council of Ministers (from 2000) has, among other things, created a Ministry of Civil Affairs at the state level. This ministry's competences also include matters of employment, education, insurance, which are of importance for the full establishment of the free movement of labor and further adjustments and preparations for the full implementation of the future SAA and ultimately full membership of BH in the EU. In addition, according to this ministry's rule book, the state employment agency is expected to be fully operational.
For these reasons and because of the specific structure of the country, the free movement of workers in the household will be discussed first, and then the free movement of workers from an EU perspective.
Institutional framework
Legal framework
In relation to the employment of workers from the EU legally residing in Bosnia and Herzegovina, the Act on the Employment of Foreign Citizens FBH26 determines the conditions for the employment of foreign citizens and stateless persons, the competence of the Federal Employment Office and the cantonal employment offices in the process of employment of foreigners and other issues related to by employing foreigners. The law allows the employment of foreign nationals if they are legal residents of the county. All domestic payment transactions in BH are carried out through commercial banks and the Central Bank of BH as a settlement agent, as stipulated by the Law on Internal Affairs.
Payment Transactions, the Payment Transactions Act and the Prevention of Money Laundering Act, which are Entity-level laws. Foreign transactions are also conducted by commercial banks and are regulated by the Foreign Exchange Transactions Act. There are no limits for legal entities, but in the case of foreign transactions they must have the necessary documentation as prescribed by the Foreign Currency Transactions Act, also at Entity level.
The main legislation governing the capital markets of BiH consists of the laws of the subjects of the Securities Commission, the Law on Securities and the Law on the Securities Registry. In accordance with the Law on the Securities Commission, the Securities Commissions answer to the subject parliaments, which are required to submit an annual report and annual accounts for the previous trading year. The law stipulates that pricing and billing fall under the jurisdiction of entity governments and the entire procedure must be approved by the CRA.
The law will begin to be implemented no later than 180 days after its entry into force.
FREE MOVEMENT OF CAPITAL
- CUSTOMS
- TAXATION
- PUBLIC PROCUREMENT
From the point of view of freedom of movement, the most interesting provision is Article 12 of the Act on Foreign Direct Investment Policy in Bosnia and Herzegovina. Interestingly, this limiting factor also applies to agencies and institutions of the international community. Customs regulations consist of the Law on Customs Policy36 and laws and regulations in the process of adoption by the Parliament of BiH, the Council of Ministers of BiH and entities.
One of the requirements of the Feasibility Study is the full implementation of the Industrial Property Law of Bosnia and Herzegovina, including the relevant institutional building. The main objective in this period is the transformation of the Institute for Standards, Metrology and Intellectual Property of Bosnia and Herzegovina into three independent institutes. In order to fulfill the objectives of membership in the World Trade Organization (WTO) and association in the European Union, BH has the obligation to become a member of Unions, Conventions, Treaties in the field of Intellectual Property.
One of the activities of Institute is administrative and expert activities in the field of industrial property rights. The establishment of the Institute for Standards, Metrology and Patents at BH level was important for strengthening state institution building. According to the relevant laws in BH and international convention ratified by BH, the responsibility of the Institute of Standards, Metrology and Intellectual Property of Bosnia and Herzegovina in the field of intellectual property rights protection consists of managing administrative procedure for the acquisition and protection of industrial property rights to patents, trademarks, industrial designs, geographical indications and copyright and related rights.
As already mentioned, one of the requirements of the feasibility study is the transformation of the Institute of Standards, Metrology and Intellectual Property of Bosnia and Herzegovina into three independent institutes. The problem of institutional building is expected to move the Institute to Mostar (as foreseen by the legislation just confirmed by the Parliamentary Assembly). The legal basis for intellectual property rights in Bosnia and Herzegovina consists of Industrial Property Law in Bosnia and Herzegovina, Law on Amendments to the Legislation on Industrial Property Law in Bosnia and Herzegovina and Law on Copyright and Related Rights in Bosnia and Herzegovina.
Summary of recommendations
To harmonize customs practices with the EU standards and start negotiations with the EU on these issues. To strengthen the State Border Service for the sake of crime prevention (goods smuggling). Continued harmonization of tax systems in respect of EU countries, such as within B-H, emphasizing the adoption of single, umbrella laws rather than harmonizing Entity Regulations;.
Tax administration reform, training, IT equipment, fighting corruption with a better control system in place, different regional arrangement and reduction of offices;. Reform of social taxation, so that the contribution rate is harmonized with that of the transition countries and brings the country closer to the EU. A significant part of the EU acquis concerning the mutual recognition of diplomas and qualifications (55 directives) has already been incorporated and full approximation is expected in the medium term.
Conclusions
Discriminatory measures of the national legislation of Bosnia and Herzegovina
The retail facilities do not have the status of a legal entity and have received an identification number from the relevant tax administration and the sales tax is paid regularly to the payment accounts of the Public Revenue Office of the RS, in accordance with the rates established by law in the RS . The registration of subjects with residence and business in RS is done in the relevant institutions of the FBH (according to the principle of the headquarters of the company). In the case of investments in the sectors that are subject to the restrictions mentioned in point (a) of this article, foreign investors must obtain prior approval from the responsible authority in the relevant entity.
The final decision and justification for the foreign investment is presented to the applicant within 90 days from the day of receipt of the request. If the decision is not taken within 90 days, the foreign direct investment is considered approved. Foreign investors will have the same rights to real estate as individuals who have citizenship of Bosnia-Herzegovina or belong to Bosnia-Herzegovina.
Foreign investors from one of the successor states of the former Socialist Federal Republic of Yugoslavia enjoy such rights, provided that the investors who have citizenship of Bosnia and Herzegovina or belong to Bosnia and Herzegovina have the same rights in that successor state. Foreign natural persons can be the owners of the land and facilities they have acquired as inheritance in the Federation of BiH, just like the citizens of Bosnia and Herzegovina and of the Federation, unless otherwise stipulated in an international agreement. A foreign natural person with a permanent residence in the Confederation may be the owner of the property right to an apartment or a residential building and the building site on which such facilities are or will be erected.
Foreign natural persons and legal entities may hold title to real estate just like citizens of the SFRYU, unless otherwise provided by federal law. Foreign natural persons in the territory of the SFRYU may, subject to reciprocity, be the holders of the right of ownership of the land or building acquired through heritage, such as the citizens of SFRYU, unless otherwise provided for in the international agreement.
Bosnia and Herzegovina’s membership in international organisations and conventions related to the internal market
Nice Agreement on the International Classification of Goods and Services for the Purpose of Registration of Trademarks - Nice Union. Brussels Convention concerning the distribution of program-carrying signals transmitted by satellite (the satellite convention.
