Customs

Laws and regulations

The outward processing procedure is regulated by the Kosovo* Customs and Excise Code, respective Article 148 to 164. The Kosovo* Customs and Excise Code is published in both Albanian and English language https://dogana.rks-gov.net/en/CUSTOMS-AND-EXCISE-CODE.

Subject

The outward processing procedure shall allow Kosovo* goods to be exported temporarily from Kosovo* in order to undergo processing operations and the products resulting from those operations to be released for free circulation with total or partial relief from import duties. The outward processing procedure shall be regulated by Article 148 to 164 of Customs Code of Kosovo*.
Temporary exportation of Kosovo* goods shall entail the application of export duties,
commercial policy measures and other formalities for the exit of Kosovo* goods from Kosovo*.  ‘Temporary export goods’ means goods placed under the outward processing procedure;

a) Processing operations means the operations referred to in Article 118 (2) (c), first, second and third indents;
b) Compensating products means all products resulting from processing operations;
c) Rate of yield means the quantity or percentage of compensating products obtained from the processing of a given quantity of temporary export goods. 

Procedure

The outward processing procedure shall not be open to Kosovo* goods: whose export gives rise to repayment or remission of import duties; which, prior to export, were released for free circulation with total relief from import duties by virtue of end use, for as long as the conditions for granting such relief continue to apply.

Authorization

Authorization to use the outward processing procedure shall be issued at the request of the person who arranges for the processing operations to be carried out. Authorization shall be granted only:

• to persons established in Kosovo*;
• where it is considered that it will be possible to establish that the compensating products
have resulted from processing of the temporary export goods; and
• where authorization to use the outward processing procedure is not liable to seriously 
harm the essential interests of Kosovo* processors (economic conditions)

Period for re-import of compensating goods

The Customs shall specify the period within which the compensating products must be re-imported into Kosovo*. They may extend that period on submission of a duly substantiated request by the holder of the authorization.

Systems/methods used for calculation of import duties

The Customs shall set either the rate of yield of the operation or, where necessary, the method of determining that rate.
The total or partial relief from import duties provided for in Article 154 (1) shall be granted only where the compensating products are declared for release for free circulation in the name of or on behalf of: 

a) the holder of the authorization; or 
b) any other person established in Kosovo* provided that that person has obtained the consent of the holder of the authorization and the conditions of the authorization are fulfilled.

The total or partial relief from import duties provided for in Article 154 shall not be granted where one of the conditions or obligations relating to the outward processing procedure is not fulfilled, unless it is established that the failures have no significant effect on the correct operation of the said procedure.

The total or partial relief from import duties provided for in Article 148 shall be effected by deducting from the amount of the import duties applicable to the compensating products released for free circulation the amount of the import duties that would be applicable on the same date to the temporary export goods if they were imported into Kosovo* from the country in which they underwent the processing operation or last processing operation. 

The amount to be deducted pursuant to paragraph 1 shall be calculated on the basis of the quantity and nature of the goods in question on the date of acceptance of the declaration placing them under the outward processing procedure and on the basis of the other items of charge applicable to them on the date of acceptance of the declaration relating to the release for free circulation of the compensating products. 

The value of the temporary export goods shall be that taken into account for those goods in
determining the customs value of the compensating products in accordance with Article 36 or, if the value cannot be determined in that way, the difference between the customs value of the compensating products and the processing costs determined by reasonable means.

Documents, certificates, used during outward processing

The export procedure shall allow Kosovo* goods to leave Kosovo*.  Exportation shall entail the application of exit formalities including commercial policy measures and, where appropriate, export duties.  With the exception of goods placed under the outward processing procedure, all Kosovo* goods intended for export shall be placed under the export procedure. The cases in which and the conditions under which goods leaving Kosovo* are not subject to an export declaration may be determined in the Administrative Instruction implementing this Code. The export declaration must be lodged at the customs office responsible for supervising the place where the exporter is established or where the goods are packed or loaded for export shipment.  Derogations may be determined in the Administrative Instruction implementing this Code. Release for export shall be granted on condition that the goods in question leave Kosovo* in the same condition as when the export declaration was accepted.

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