Laws and regulations

The inward processing procedure is regulated by the Kosovo Customs and Excise Code, respective Article 118 to 132. The Kosovo Customs and Excise Code is published in both Albanian and English language.


The inward processing procedure shall allow the following goods to be used in Kosovo in one or more processing operations: non-Kosovo goods intended for re-export from Kosovo in the form of compensating products, without such goods being subject to import duties or commercial policy measures; goods released for free circulation with repayment or remission of the import duties chargeable on such goods if they are exported from Kosovo in the form of compensating products.

Inward processing operations mean the processing of goods, including erecting or assembling them or fitting them together goods; the processing of goods and the repair of goods, including restoring them and putting them in order.

The use of certain goods defined in the Administrative Instruction implementing this Code which is not to be found in the compensating products, but which allow or facilitate the production of those products, even if they are entirely or partially used up in the process;
Compensating products: all products resulting from processing operations;

Equivalent goods: Kosovo goods which are used instead of the import goods for the manufacture of compensating products;

Rate of yield: the quantity or percentage of compensating products obtained from the processing of a given quantity of import goods.  
The Customs shall allow:

a) Compensating products to be obtained from equivalent goods;
b) Compensating products obtained from equivalent goods to be exported from Kosovo
before importation of the import goods.

Equivalent goods must be of the same quality and have the same characteristics as the import goods. However, in specific cases determined in the Administrative Instruction implementing this Code, equivalent goods may be allowed to be at a more advanced stage of manufacture than the import goods.

Where paragraph 1 applies, the import goods shall be regarded for customs purposes as equivalent goods and the latter as import goods.
Measures aimed at prohibiting, imposing certain conditions for or facilitating recourse to paragraph 1 may be adopted in the Administrative Instruction implementing this Code.

Where paragraph 1 (b) is applied and the compensating products would be liable to export duties if they were not being exported or re-exported under an inward processing operation, the holder of the authorization shall provide a security to ensure payment of the duties should the import goods not be imported within the period prescribed.



The authorization shall be issued at the request of the person who carries out processing operations or who arranges for them to be carried out. The authorization shall be granted only:

a) to persons established in Kosovo. However, the authorization may be granted to persons
established outside Kosovo in respect of imports of a non-commercial nature;
b) where, without prejudice to the use of the goods referred to in the last indent of Article 118 (2) (c), the import goods can be identified in the compensating products or, in the case referred to in Article 119, where compliance with the conditions laid down respect of equivalent goods can be verified;
c) Where the inward processing procedure can help create the most favorable conditions for the export or re-export of compensating products, provided that the essential interests of Kosovo producers are not adversely affected (economic conditions). The cases in which the economic conditions are deemed to have been fulfilled may be determined in the Administrative Instruction implementing this Code.

Systems/methods used for calculation of import duties


The Customs shall set either the rate of yield of the operation or where appropriate, the method of determining such rate. The rate of yield shall be determined on the basis of the actual circumstances in which the processing operation is, or is to be, carried out. Where circumstances so warrant and, in particular, in the case of processing operation customarily  carried  out  under  clearly  defined  technical  conditions  involving  goods  of substantially uniform characteristics and resulting in the production of compensating products of uniform  quality,  standard  rates  of  yield  may  be  set  in  the Administrative Instruction implementing this Code on the basis of actual data previously ascertained. For further information regarding inward processing procedures, refer to: Articles 118 to 132 Customs Code of Kosovo.

Documents, certificates, used during inward processing

Articles 118 to 132 Customs Code of Kosovo


Bulevardin "Bill Clinton" p.n. në Prishtinë
Tel:  +381 (0)38/540-350
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