Importation of Equipment
One of the foreign investors’ advantages prescribed by the Law on Investments is the customs exemption related to the equipment imported in relation to foreign investments.
The Law on Investments stipulates that the import of the equipment that represents founder’s investment is relieved of customs duties and other import fees, except from passenger motor vehicles and entertainment and gaming machines, under the condition that the equipment imported by the investor is in accordance with the regulations that govern the health and security of citizens and environment protection.
The Government has regulated in detail the procedure, amount and time limit for the realization of incentives and relief of customs duties and other import fees regarding the import of the foreign investor’s equipment.
Under Article 2 Item 2 of the Directive, the customs privilege user is a company registered in the Republic of Serbia and performs activities, which can be subject to incentives in compliance with the regulations regulating criteria, terms and manner of attracting direct investments.
The Article 2 Item 3 of the Directive stipulates that the equipment includes the following:
– new production facilities, machines and equipment purchased and stored for production purposes
– new production facilities, machines and equipment that a company purchases directly and registers as an investment in the form of a note
The company realizes the duty relief right in compliance with the rules for awarding state aid, namely:
– in compliance with the rules for awarding regional investment state aid
– in compliance with the rules for awarding de minimis state aid
The Directive also stipulates the cases, in which it is not possible to realize the duty relief right – in case of purchasing equipment for the following activities: traffic, software development, hospitality industry, games of chance…
Duty relief can be used up to the amount of subscribed non-cash contribution to the company. In order to realize the right to duty relief, the company shall record the investment – purchase of the equipment that will be imported as the founder’s investment, in the Corporate Register. The company investment contract or decision on investment shall be registered.
The equipment cannot be alienated, handed over for use or used for other purposes within three years as of the date of placement of goods on the market.
A company submitting an application for the approval of duty relief shall prepare the following documents:
– a decision on the increase in capital and the assessment of the non-cash contribution value
– a warranty certificate
– a contract on incentive award
– a statement confirming that it has not been awarded de minimis state aid
– a statement confirming that the imported equipment shall be used to perform the company activity
– a statement on all other types of state aid that it has been awarded
– an excerpt containing the registration data of the company that is entered into the Corporate Register
Based on the submitted application, the customs authorities issue a decision on the relief from equipment import fees.