M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 30 –External Relations Bilateral screening: Chapter 30 PRESENTATION OF MONTENEGRO Brussels, 12 June 2013

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Montenegrin trade policy Law on Foreign Trade Ministry of Economy Nebojša Radonjić

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade  Under the Law on Foreign Trade were adopted: 1)Decree for the implementation of Law on foreign trade 2)Control List for Export and Import of Goods

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade (1)  Is divided into 4 parts: SECTION I : General provisions SECTION II : Foreign trade in goods SECTION III : Foreign trade in services SECTION IV : Trade remedies

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations SECTION I: General provisions  Definitions: foreign trade, person (domestic and foreign), export/import of goods, national treatment, most-favoured-nation treatment, restrictive measure, quantitative restriction, quota, license,.....  Foreign Trade shall be unrestricted except as otherwise provided by this Law  All persons may conduct Foreign Trade in accordance with their legal and commercial capacities, and in accordance with relevant legislation regulating commercial activities Law on Foreign Trade (1)

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade (1) SECTION II: Foreign trade in goods Right to Import and Export Goods Any Person may import or export goods: 1) goods intended for sale, inward or outward processing, or any other commercial transaction, subject to legislation that regulates commercial activities; 2) goods intended for own use of legal entities, personal or family use; and 3) goods necessary to perform professional activities (entrepreneurs, farmers and natural persons conducting professional activities or providing services). Prohibited Imports 1) goods shall not be imported or transited if trade in such goods is banned under the legislation of the Montenegro; 2) the Government may ban imports, temporary imports or transit of goods if circulation of such goods is banned under the legislation of the country of export, of origin, or of destination of such goods.

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade (1) SECTION II: Foreign trade in goods Qunantitative restrictions The Government may impose Quantitative Restrictions on exports only: 1) in case of critical shortages of products essential to the Republic, or for the relief of consequences of such shortages; or– article XIX - GATT 2) in order to protect exhaustible natural recourses, if export restrictions are applied simultaneously with restrictions on domestic production or consumption– article XX - GATT Licenses 1) The Government may, in accordance with the provisions of this Law, require licenses for the Import, Export, or Transit of certain goods – article 3, WTO Agreement on import licensing procedures - Non Automatic Import Licenses 2) The Government may prescribe licenses for administrative or statistical purposes (automatic license) - article 2, WTO Agreement on import licencing Procedures

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade (1) SECTION III: Foreign trade in services  Foreign trade in services shall mean the supply of services (4 type): 1) from the territory of Montenegro into the territory of any other country, and from the territory of any other country into the territory of Cross border supply Montenegro – ( Cross border supply ) 2) by a domestic person to a foreign person on the territory of Montenegro Consumption abroad – ( Consumption abroad ) 3) by a domestic person through а commercial presence in the territory of any other country, or by a foreign person through commercial presence Commercial presence in the territory of Montenegro; and – ( Commercial presence ) 4) by a domestic natural person in the territory of any other country, and Presence of by a foreign natural person in the territory of Montenegro – ( Presence of natural persons natural persons ) Article 1 - GATS

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Law on Foreign Trade (1) SECTION IV : Trade remedies 1) anti-dumping measures 2) countervailing measures 3) safeguard measures Conducted investigation procedures for implementation trade remedies No action taken Trade remedies are consistent with WTO rules Law on Foreign Trade (“Official gazette RM”, no.28/04 ; 37/07)

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Decree for the implementation of Law on Foreign trade (2)  Prescribes detailed procedures for: – procedures for licenses issuing, and – procedures for implementation trade remedies : anti-dumping measures countervailing measures and safeguard measures Decree for the implementation of Law on foreign trade (“Official gazette RM”, no.52/04; 44/07)

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Control list for Exports and Import of Goods (3)  Article 6 Law on Foreign trade : The Government shall, by a specific decision, establish, maintain and make public an Export and Import Control List which are subject to any restrictions - article 1., par.4(a) WTO Agreement on Import Licensing Procedures  Article 7 Law on Foreign trade The Law that governs General Administrative Procedure shall be applicable to all procedures conducted in accordance with this Law, unless otherwise prescribed by the provisions of this Law The competent authority shall issue the license in accordance with law

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Control List for Export and Import of Goods (3)  The competent authority for license issuing : The State Authority competent for health protection (D1) - Agency for medicines and medical devices, Ministry of Health The State Authority competent for the protection of animal and plant health (D2) – Ministry of Agriculture The State Authority competent for environmental protection (D3) – Agency for environmental protection; Ministry for sustainable development and tourism The State Authority competent for cultural matters (D4) – Ministry of culture The State Authority competent for foreign trade (D i AD) – Ministry of economy

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Control List for Export and Import of Goods (3)  Contain 6 Annexes : Annex I: The list of goods which are in the license regime Annex II: List of narcotic drugs, psychotropic substances and plants that are be used to produce drugs (UN Convention on Narcotic Drugs, 1961) (UN Convention on Psychotropic Substances, 1971) Annex III: List of precursors Annex IV: List of Substances that Deplete the Ozone Layer (The Montreal Protocol) Annex V: List of hazardous / dangerous waste (The Basel Convention) Annex VI: List of plant and animal species, for which permits are under license regime for import and export (CITES Convention )

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Control List for Export and Import of Goods (3)  Duration of licenses The period for processing applications for licenses shall not exceed 15 days as of the day of application License shall be valid for the period specified in the license up to a maximum period of 1 year. The number of shipments during such period shall not be limited An automatic license shall be issued immediately on receipt of a request to the extent administratively feasible, but within a maximum of 10 working days An automatic license shall be valid for a period of 1 year, automatically extendable upon the request of the license holder. Number of validity extensions shall not be limited

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Control List for Export and Import of Goods (3)  Once issued, the issuing authority may cancel a license only if: a.Decision was made to prohibit the import or export of goods subject to such license, in accordance with the provisions of this Law, after the license has been issued b.License holder violates the conditions of a license c.License was issued in violation of this Law or other relevant legislation; or d.Decision was based on incorrect information or it has been obtained by deceit

Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations SPECIAL CONDITIONS Import, transit and export of goods shall be subject to relevant veterinary, sanitary and phytosanitary requirements prescribed for particular type of goods. Import, transit and export of animals, plants, animal and plant products, and other goods that may carry or transmit pests and disease that may endanger the health of humans and animals, may be prohibited. Conformity with technical regulations applicable in Montenegro may be prescribed as a condition for import of goods. Conformity with standards cannot be prescribed as a condition for import of goods, except where the standard is an integral part of the technical regulation

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