The Law on Foreign Investments of the Republic of Srpska (Official Gazette of the Republic of Srpska, 25/02, 24/04, 52/11 and 68/13) and the Law on Foreign Direct Investment Policy of Bosnia and Herzegovina (Official Gazette of Bosnia and Herzegovina, 17/98, 13/03, 48/10) guarantee the state treatment of foreign investors, i.e. foreign investors enjoy the same rights and obligations as the residents of BiH. The state or its entities must not discriminate against foreign investors on any grounds including, but not limited to, citizenship, seat/residence of a foreign investor, religion or country of origin of the investment.

The ownership of foreign investors cannot be nationalized, expropriated or taken away. However, in the case of establishing a public interest, the ownership of foreign investors may be nationalized or expropriated, in which case the right to fair compensation is guaranteed to foreign investors.

The Law on Customs Policies of Bosnia and Herzegovina regulates the main elements of the system for customs protection of the economy of Bosnia and Herzegovina, the rights and obligations of all entities in the procedures including customs clearance of goods and customs inspection of passengers. Foreign investors can be exempted from import duties on goods included in free trade which represents an investment by a foreign body.

The signing of the Stabilization and Association Agreement allows the free export of almost all types of goods meeting standards to the EU, and at the same time the BiH market is gradually opening up to goods from the EU in accordance with the dynamics agreed in the annexes and protocols that are part of the Agreement, 450 million people.

Bosnia and Herzegovina signed the CEFTA agreement with the following countries: Albania, Montenegro, Macedonia, Moldova, Serbia and Kosovo. The CEFTA Agreement replaces and complements existing free trade agreements with certain countries in the region. This allows for transparency and rules of the game comparable to EU standards, as well as access to the market of about 25 million people.

Also, Bosnia and Herzegovina signed the Free Trade Agreement with Turkey, which provides additional free access to the consumer market with 70 million people.

You can find more information at: http://www.investsrpska.net/index.aspx?PageID=405&cls=true&langid=2