1

INTEGRATED TARIFF OF KOSOVO

VERSION 01.01.2020

2

FOREWORD The Integrated Tariff of Kosovo (TARIK) consists of a Goods Nomenclature (codes and descriptions) based on the Harmonized System of the World Customs Organization (W.C.O.) and on the Combined Nomenclature of the European Communities, as applicable on 1 January 2020. Whereas certain specific Kosovo measures could not be dealt with in the framework of the Combined Nomenclature, it was necessary to create additional subheadings on the TARIK-level (9th and 10th digit). The schedules, in which is incorporated the Goods Nomenclature, form the Integrated Tariff of Kosovo. The Goods Nomenclature, section notes, chapter notes, subheading notes and additional notes are legally binding. (Code no. 03/l-109 Customs and Excise Code of Kosovo Administrative Direction No. 2005/15 of 19 August 2005) All other items are provided for ease of reference only. In case of doubt or dispute, it is the current legal texts which are legally binding. The Integrated Tariff of Kosovo (TARIK) consists of 3 parts: - Part One: Preliminary provisions - Part Two: Schedules - Part Three: Annexes By means of an Administrative Instruction issued by the Director General, Kosovo Customs Service will amend the Integrated Tariff of Kosovo (TARIK) on a regular basis, to take account of new legislation. The Integrated Tariff of Kosovo (TARIK) is available on the Website of Kosova Customs and in the form of a CD-ROM.

3

SUMMARY

PART ONE — PRELIMINARY PROVISIONS Section I —General rules A. General rules for the interpretation of the Goods Nomenclature B. Guidelines for the interpretation of the Goods Nomenclature C. General rules applicable both to the Goods Nomenclature and to customs duties D. Goods with preferential status

Application of preferential customs duties at import for goods with origin from countries that had ratified the agreement on amendment of and accession to the Central European free trade agreement (CEFTA 2006)

Section II —Description of the TARIK A. Structure of the Commodity code B. Supplementary Units C. Trade Policy Measures D. Preferential rates of duty E. V.A.T. F. Excise Taxes Section III —Special provisions

A. Civil aircraft and goods for use in civil aircraft B. Pharmaceutical products C. Containers and packing materials D. Favorable tariff treatment by reason of the nature of the goods

Signs, abbreviations and symbols

4

PART TWO —SCHEDULE

Section I

Live animals; animal products Chapter 01 Live animals Chapter 02 Meat and edible meat offal Chapter 03 Fish and crustaceans, mollusks and other aquatic invertebrates Chapter 04 Dairy produce; birds ’eggs; natural honey; edible products of animal origin, not elsewhere specified or included Chapter 05 Products of animal origin, not elsewhere specified or included

Section II

Vegetable products Chapter 06 Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage Chapter 07 Edible vegetables and certain roots and tubers Chapter 08 Edible fruit and nuts; peel of citrus fruit or melons Chapter 09 Coffee, tea, mate and spices Chapter 10 Cereals Chapter 11 Products of the milling industry; malt; starches; inulin; wheat gluten Chapter 12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder Chapter 13 Lac; gums, resins and other vegetable saps and extracts Chapter 14 Vegetable plaiting materials; vegetable products not elsewhere specified or included

Section III Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes Chapter 15 Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes

5

Section IV Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes Chapter 16 Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates Chapter 17 Sugars and sugar confectionery Chapter 18 Cocoa and cocoa preparations Chapter 19 Preparations of cereals, flour, starch or milk; pastrycooks’ products Chapter 20 Preparations of vegetables, fruit, nuts or other parts of plants Chapter 21 Miscellaneous edible preparations Chapter 22 Beverages, spirits and vinegar Chapter 23 Residues and waste from the food industries; prepared animal fodder Chapter 24 Tobacco and manufactured tobacco substitutes Section V Mineral products Chapter 25 Salt; sulphur; earths and stone; plastering materials, lime and cement Chapter 26 Ores, slag and ash Chapter 27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Section VI Products of the chemical or allied industries Chapter 28 Inorganic chemicals;

Organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes Chapter 29 Organic chemicals Chapter 30 Pharmaceutical products Chapter 31 Fertilizers Chapter 32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other coloring matter;

paints and varnishes; putty and other mastics; inks Chapter 33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations

6

Chapter 34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes,

prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, ‘dental waxes ’and dental preparations with a basis of plaster

Chapter 35 Albuminoidal substances; modified starches; glues; enzymes Chapter 36 Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations Chapter 37 Photographic or cinematographic goods Chapter 38 Miscellaneous chemical products Section VII Plastics and articles thereof; rubber and articles thereof Chapter 39 Plastics and articles thereof Chapter 40 Rubber and articles thereof Section VIII Raw hides and skins, leather, furskins and articles thereof; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut) Chapter 41 Raw hides and skins (other than fur skins) and leather Chapter 42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers;

articles of animal gut (other than silkworm gut) Chapter 43 Furskins and artificial fur; manufactures thereof Section IX Wood and articles of wood; wood charcoal; cork and articles of cork; manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork Chapter 44 Wood and articles of wood; wood charcoal Chapter 45 Cork and articles of cork Chapter 46 Manufactures of straw, of esparto or of other plaiting materials; basket ware and wickerwork

7

Section X Pulp of wood or of other fibrous cellulosic material; Recovered (waste and scrap)paper or paperboard; paper and paperboard and articles thereof Chapter 47 Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap)paper or paperboard Chapter 48 Paper and paperboard; articles of paper pulp, of paper or of paperboard Chapter 49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans Section XI Textiles and textile articles Chapter 50 Silk Chapter 51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric Chapter 52 Cotton Chapter 53 Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn Chapter 54 Man-made filaments; strip and the like of man-made textile materials Chapter 55 Man-made staple fibres Chapter 56 Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof Chapter 57 Carpets and other textile floor coverings Chapter 58 Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery Chapter 59 Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use Chapter 60 Knitted or crocheted fabrics Chapter 61 Articles of apparel and clothing accessories, knitted or crocheted Chapter 62 Articles of apparel and clothing accessories, not knitted or crocheted Chapter 63 Other made-up textile articles; sets; worn clothing and worn textile articles; rags Section XII Footwear, headgear, umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles made therewith; artificial flowers; articles of human hair Chapter 64 Footwear, gaiters and the like; parts of such articles Chapter 65 Headgear and parts thereof

8

Chapter 66 Umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, riding crops and parts thereof Chapter 67 Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair Section XIII Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware Chapter 68 Articles of stone, plaster, cement, asbestos, mica or similar materials Chapter 69 Ceramic products Chapter 70 Glass and glassware Section XIV Natural or cultured pearls, precious or semi-precious stones, precious metals,metals clad with precious metal, and articles thereof; imitation jewellery; coins Chapter 71 Natural or cultured pearls, precious or semi-precious stones, precious metals,

metals clad with precious metal, and articles thereof; imitation jewellery; coins Section XV Base metals and articles of base metal Chapter 72 Iron and steel Chapter 73 Articles of iron or steel Chapter 74 Copper and articles thereof Chapter 75 Nickel and articles thereof Chapter 76 Aluminum and articles thereof Chapter 77 (Reserved for possible future use in the harmonized system) Chapter 78 Lead and articles thereof Chapter 79 Zinc and articles thereof Chapter 80 Tin and articles thereof Chapter 81 Other base metals; cermets; articles thereof Chapter 82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal Chapter 83 Miscellaneous articles of base metal

9

Section XVI Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles Chapter 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Chapter 85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers,

television image and sound recorders and reproducers, and parts and accessories of such articles Section XVII Vehicles, aircraft, vessels and associated transport equipment Chapter 86 Railway or tramway locomotives, rolling stock and parts thereof;

railway or tramway track fixtures and fittings and parts thereof; mechanical (including electromechanical) traffic signaling equipment of all kinds

Chapter 87 Vehicles other than railway or tramway rolling stock, and parts and accessories thereof Chapter 88 Aircraft, spacecraft, and parts thereof Chapter 89 Ships, boats and floating structures Section XVIII Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof Chapter 90 Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus;

parts and accessories thereof Chapter 91 Clocks and watches and parts thereof Chapter 92 Musical instruments; parts and accessories of such articles

10

Section XIX Arms and ammunition; parts and accessories thereof Chapter 93 Arms and ammunition; parts and accessories thereof Section XX Miscellaneous manufactured articles Chapter 94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings;

lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like; prefabricated buildings

Chapter 95 Toys, games and sports requisites; parts and accessories thereof Chapter 96 Miscellaneous manufactured articles Section XXI Works of art, collectors ’pieces and antiques Chapter 97 Works of art, collectors ’pieces and antiques

11

PART THREE — ANNEXES Annex 01 LIST OF INTERNATIONAL NON-PROPRIETARY NAMES (INNS), PROVIDED FOR PHARMACEUTICAL SUBSTANCES BY

THE WORLD HEALTH ORGANIZATION, WHICH ARE EXEMPTED OF CUSTOMS DUTY AND V.A.T. Annex 02 LISTS OF PREFIXES AND SUFFIXES WHICH, IN COMBINATION WITH THE INNS OF ANNEX 01, DESCRIBE THE SALTS,

ESTERS OR HYDRATES OF INNS; THESE SALTS, ESTERS OR HYDRATES ARE EXEMPTED OF CUSTOMS DUTY AND V.A.T., ON CONDITION THAT THEY ARE CLASSIFIABLE IN THE SAME 6-DIGIT HS-SUBHEADING AS THE CORRESPONDING INN

Annex 03 SALTS, ESTERS AND HYDRATES OF INNS, WHICH ARE NOT CLASSIFIED IN THE SAME HS-HEADING AS THE

CORRESPONDING INNS AND WHICH ARE EXEMPTED OF CUSTOMS DUTY AND V.A.T. Annex 04 LISTS OF PHARMACEUTICAL INTERMEDIATES, I.E. COMPOUNDS USED FOR THE MANUFACTURE OF

FINISHED PHARMACEUTICAL PRODUCTS, WHICH ARE EXEMPTED OF CUSTOMS DUTY AND V.A.T. Annex 05 VETERINARY CERTIFICATES Annex 06 PHYTOSANITARY CERTIFICATE Annex 07 IMPORT AUTHORIZATIONS FOR NYLON BAGS ACCORDING TO THE DECISION NR. 20 date 09/07/2013 Annex 08 LICENCES AND CERTIFICATES FROM THE KOSOVO MEDICINES AGENCY (KMA) Annex 09 LICENCES FOR PETROLEUM AND PETROLEUM PRODUCTS Annex 10 IMPORT AUTHORIZATIONS FOR PRECURSORS (KMA) Annex 11 IMPORT LICENSE FOR NARCOTIC DRUGS L3p (KMA)

Annex 12 IMPORT LICENSE FOR NARCOTIC DRUGS L3n (KMA)

12

PART ONE

PRELIMINARY PROVISIONS

13

SECTION I

GENERAL RULES

A. General rules for the interpretation of the Goods Nomenclature Classification of goods in the Goods Nomenclature of the integrated Tariff of Kosovo (TARIK) shall be governed by the following principles: 1. The titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined

according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions.

2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that,

as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

3. When, by application of rule 2(b) or for any other reason, goods are prima facie classifiable under two or more headings, classification shall be

effected as follows: (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However,

when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods;

14

(b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a),shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable;

(c) when goods cannot be classified by reference to 3(a)or (b),they shall be classified under the heading which occurs last in numerical order

among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which

they are most akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:

(a) camera cases, musical instrument cases, gun cases, drawing-instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character;

(b) subject to the provisions of rule 5(a),packing materials and packing containers(1) presented with the goods therein shall be classified with the

goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.

6. For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those

subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section and chapter notes also apply, unless the context requires otherwise.

(1) The terms ‘packing materials ’and ‘packing containers ’mean any external or internal containers, holders, wrappings or supports other than

transport devices (e.g. transport containers), tarpaulins, tackle or ancillary transport equipment. The term ‘packing containers ’does not cover the containers referred to in general rule 5(a).

15

B. Guidelines for the interpretation of the Goods Nomenclature For the classification of goods in the headings and subheadings covered by the first six digits of the commodity code, we refer to the current Harmonized System Explanatory Notes of the World Customs Organization. For the classification of goods in the subheadings covered by the seventh and eighth digits of the commodity code, we refer to the current Explanatory Notes to the Combined Nomenclature of the European Communities. For the classification of goods in the subheadings covered by the ninth and tenth digits of the commodity code, we refer to this Introduction, the Additional Notes (TARIK) and the current Kosovo Law.

C. General rules applicable both to the Goods Nomenclature and to customs duties 1. The customs duties expressed as percentage rates are ad valorem duties.

Such a customs duty shall be calculated on the customs value of the imported goods.

The customs value of the imported goods shall be determined according to the methods described in Title II, Chapter 3 of the Customs and

Excise Code of Kosovo (Law No.03/L-109of 11 November 2008).

2. Unless provided otherwise, the provisions relating to customs value shall be applied to determine, in addition to the value for the assessment of

ad valorem customs duties, the values by reference to which the scope of certain headings or subheadings is defined. 3. Goods eligible for favourable tariff treatment by reason of their end-use:

Where the import duty applicable under the end-use arrangements to goods for a specific end-use is not lower than that which would otherwise be applicable to the goods, the said goods shall be classified in the TARIK-code referring to the end-use.

16

D. Goods with preferential status Application of preferential customs duties at import for goods with origin from countries that had ratified the agreement on amendment of and

accession to the Central European free trade agreement (CEFTA 2006)

Since 26 July 2007 is applicable for goods with origin from: Republic of Albania (AL), the Republic of Moldova (MD), the Republic

of Montenegro (ME), the Republic of Macedonia (MK);

Since 24 October 2007 is applicable for goods with origin from Republic of Serbia (XS);

Since 22 November 2007 is applicable for goods from Bosnia and Herzegovina ( BA);

Since 01 July 2013 the Republic of Croatia is left CEFTA-2006, according to information Nr.372/28.05.2013

To receive the preferential status in the context of this Agreement, the origin of products is evidenced by a movement certificate EUR 1 or "declaration of origin" provided by exporters in accordance with Article 21 (1) Title V, as described in the Agreement CEFTA-2006 The application of preferential customs duties on import of goods originating from countries which have ratified the Stabilization and

Association Agreement between the Republic of Kosovo, on one side, and the European Union and the European Atomic Energy Agency (MSA 2016), on the other side by law No. 05 / L -069 according to the relevant annexes;

Since 01 April 2016 is applicable for goods with origin from: Austria (AT), Belgium (BE), Bulgaria (BG), Croatia (HR), the Republic of Cyprus (CY), Czech Republic (CZ), Denmark (DK ), Estonia (EE), Finland (FI), France (FR), Germany (DE), Greece (GR), Hungary (HU), Ireland (IE), Italy (IT), Latvia (LV), Lithuania (LT ), Luxembourg (LU), Malta (MT), the Netherlands (NL), Poland (PL), Portugal (PT), Romania (RO), Slovakia (SK), Slovenia (SL), Spain (ES), Sweden) SE ) and United Kingdom (GB).

To receive the preferential status in the context of this Agreement, the origin of products is evidenced by a movement certificate EUR 1 or "declaration of origin" provided by exporters in accordance with Article 21 (1) Title V, as described in the Agreement stabilization and association Agreement (MSA 2016)

From 01.09.2019 the free trade agreement between the Republic of Kosovo and the Republic of Turkey no. Decree 122/2019

SECTION II

17

DESCRIPTION OF THE TARIK The Integrated Tariff of Kosovo, called TARIK, is based on the Harmonized System (HS) of the World Customs Organization (WCO) and on the Combined Nomenclature of the European Communities and contains: - The commodity code - The description of the goods - Obligatory required supplementary units (STATISTICAL OFFICE OF KOSOVO and EUROSTAT) - A reference to the Kosovo Legislation with regard to different applicable import and/or export-Trade Policy measures - The rates of the applicable customs duties

- the preferential rates of duty for countries that had ratified the agreement on amendment of and accession to the Central European free trade agreement (CEFTA 2006),

- - The Republic of Albania (AL) - - Bosnia and Herzegovina (BA) - - Republic of Moldova (MD) - - Republic of Montenegro (ME) - - Republic of Macedonia (MK) - - The Republic of Serbia (XS) end Stabilization and Association Agreement between the Republic of Kosovo, on one side, and the European Union and the European Atomic

Energy Agency (MSA 2016), on the other side by law No. 05 / L -069

- -Since 01 April 2016 is applicable for goods with origin from: Austria (AT), Belgium (BE), Bulgaria (BG), Croatia (HR), the Republic of Cyprus (CY), Czech Republic (CZ), Denmark (DK ), Estonia (EE), Finland (FI), France (FR), Germany (DE), Greece (GR), Hungary (HU), Ireland (IE), Italy (IT), Latvia (LV), Lithuania (LT ), Luxembourg (LU), Malta (MT), the Netherlands (NL), Poland (PL), Portugal (PT), Romania (RO), Slovakia (SK), Slovenia (SL), Spain (ES), Sweden) SE ) and United Kingdom (GB). -- Since 01 September 2019 is applicable for goods with origin from Turkey ( TR ) - The V.A.T.-rates - The Excise Tax – rates

18

A. Structure of the Commodity code The Commodity code (TARIK-code) is mentioned in the first column and is structured as follows: The first six digits shall be the code numbers relating to the headings and subheadings of the Harmonized System Nomenclature (WCO). The seventh and eight digits shall identify the Combined Nomenclature subheadings of the European Communities. The ninth and tenth digits shall be reserved for the use of subheadings resulting of the Kosovo legislation. In the absence of a Kosovo TARIK-subdivision, the ninth and tenth digits shall be “00”. Exceptionally, an additional TARIK-code of four digits may be used for the application of specific Kosovo measures which are not coded, or not entirely coded (such as “Pharmaceutical products”).

19

1 2 3 4 5 6 7 8 9 10 1 2 3 4

1 2 3 4 5 6 Harmonised System (HS) (WCO)

7 8 Combined Nomenclature (European Communities)

9 10 TARIK (Kosovo)

1 2 3 4 First Additional TARIK-code

20

B. Supplementary Units The supplementary units which are obligatory required for statistical purposes (STATISTICAL OFFICE OF KOSOVO and EUROSTAT) are mentioned in the third column. The following abbreviations have been used:

CCT ct/l Carrying capacity in tonnes (1)

CEN 100 p/st Hundred items

CTM c/k Carats (1 metric carat =2 x 10-4 kg)

GFJ gi F/S Gram of fissile isotopes

GRM g Gram

KHO Kg H2O2 Kilogram of choline chloride (KG C5 H14 ClNO)

KLT 1000 l Kilogram of hydrogen peroxide (KG H2 O2)

KMA kg met.am. Thousand litres (1000 Litres)

KNE kg/net eda Kilogram of methylamines

KNI kg N Kilogram drained net weight

KPH kg KOH Kilogram of nitrogen

KPO kg K2O Kilogram of potassium hydroxide (caustic potash) (KG KOH)

KPP kg P2 O5 Kilogram of potassium oxide (KG K2 O)

KSD kg 90% sdt Kilogram of diphosphorus pentaoxide (KG P2 O5)

KSH kg NaOH Kilogram of substance 90 %dry

KUR kg U Kilogram of sodium hydroxide (caustic soda) (KG NaOH)

LPA l alc. 100% Kilogram of uranium

LTR l Litre pure (100 %)alcohol

MIL 1000 p/st Litre

MQM 1000 m3 Thousand items

MTK m2 Thousand cubic metres

CCT ct/l Square metre

MTQ m3 Cubic metre

MTR m Metre

MWH 1000 kwh Thousand Kilowatt hours

NEL ce/el Number of cells

NPR pa Number of pairs

PCE p/st Number of items

TJO TJ Terajoule (gross calorific value)

- No additional unit required

21

(1) ‘Carrying capacity in tonnes ’(CCT) means the carrying capacity of a vessel expressed in tones, not including ships ’stores (fuel, equipment,

food supplies, etc.). Persons carried on board (crew and passengers) and their baggages are also excluded.

C. Trade Policy Measures A brief reference to the Kosovo Legislation with regard to different applicable import and/or export-Trade Policy measures has been made in the fourth and fifth columns.

- “VET” means that a Veterinary Certificate, which shall be issued by the competent authority, is required according to the decision 5079/10.12.2012 from the AUV

- “FIT” means that a Phytosanitary Certificate, which shall be issued by the competent authority, is required according to the decision 5079/10.12.2012 from the AUV

- “L04” means that a License issued by the Kosovo Medicines Agency (KMA) is required. - “L05” means that the import of these Tobacco products, Export of tobacco products, besides unfermented unprocessed tobacco, import of

cigarette rolling papers and paper in shape of the tube with filter ( AI MTI No. 04/2016) can only be done by importers authorized by the Kosovo Customs Service.

- “L06” means that a license is required for the importation of petroleum and petroleum products into Kosovo and for the transportation of petroleum and petroleum products onwards into Kosovo from the crossing of an border.

- “L07” means License for Narcotics Importing and Exporting and License for Precursors Importing and Exporting issued by the Kosovo Medicines Agency (KMA) is required for descriptions and synonyms presented in Table II, III and IV of LAW No. 02/L-128

- “L08” Certificate of homologation of the vehicle type, administrative instruction no.2008/08 on vehicle homologation

- “L09” Import authorizations for nylon bags according to the decision nr. 20 date 09/07/2013 - “PRO” means prohibition.

The footnotes are referring to the applicable Law and the required Licenses/Certificates, which you may consult in Annexes 05 to 09.

22

D. Preferential rates of duty

Applies by the agreement on amendment of and accession to the Central European free trade agreement (CEFTA 2006): The Republic of Albania (AL), Bosnia and Herzegovina (BA), the Republic of Moldova (MD), the Republic of Montenegro (ME), the Republic of Macedonia (MK) and the Republic of Serbia, and according to the Stabilization and Association Agreement between the Republic of Kosovo, on one side, and the European Union and the European Atomic Energy Community (MSA 2016), on the other side according to Law no. 05 / L -069 by the respective annexes

The impact of those preferential Trade Agreements is mentioned in the seventh column. Example:

Preferential rates of duty

Interpretation

CEFTA (AL, BA, MD, ME, MK, XS)

CEFTA : 0 Preferential status (with EUR.1 or "declaration of origin" provided by exporters in accordance with Article 21 (1) Title V): zero rate for CEFTA (AL, BA, MD, ME, MK, XS)

AL, BA, MD, ME, MK, XS : 0 Preferential status (with EUR. Or "declaration of origin" provided by exporters in accordance with Article 21 (1) Title V1): Zero rate for AL, BA, MD, ME, MK, XS

MSA: 0 end according to Law no. 05 / L -069 by the respective annexes

Preferential status (with EUR.1 or "declaration of origin" provided by exporters in accordance

with Article 21 (1) Title V): zero rate for AT, BE, BG, HR, CY, CZ, DK, EE, FI, FR, DE,

GR, HU, IE, IT, LV, LT, LU, MT, NL, PL, PT, RO, SK, SL, ES, SE, GB

From 01.09.2019 the free trade agreement between the Republic of Kosovo and the Republic of Turkey

no. Decree 122/2019

TR

E. V.A.T. The rates of V.A.T. applicable at the import / inflow of products are mentioned in the eighth column.

F. Excise Taxes The rates of Excise Taxes applicable to the import / inflow of products are mentioned in the ninth column.

23

Quantities and Strength of Alcoholic Products (UNMIK Regulation No. 2006/8 of 28 February 2006 section 3) Unless the contrary is proved: (a) the quantity of and amount of alcohol in any alcoholic product shall be deemed to be as shown on any label attached to or printed on the container containing the alcoholic product; and (b) where no quantity or amount of alcohol is shown on any label attached to or printed on the container containing the alcoholic product, the quantity and amount of 100% alcohol at 20oC shall be deemed to be as set out in the following table:

QUANTITIES AND AMOUNTS OF ALCOHOL:

Description Code Deemed

Quantity

Deemed

Alcoholic

Strength

Beer made from malt

2203

33.3 cl

5 % by volume of

absolute alcohol at 20oC

Wine of fresh grapes, including fortified

wines; grape must other than that of

heading 2009

2204

75 cl

12.5% by volume of

absolute alcohol at 20oC

Vermouth and other wine of fresh

grapes flavoured with plants or aromatic substances

2205

70 cl

20% by volume of

absolute alcohol at 20oC

Other fermented beverages (for

example, cider, perry, mead); mixtures

of fermented beverages and mixtures of

fermented beverages and non-alcoholic

beverages, not elsewhere specified or included

2206

75 cl

5% by volume of

absolute alcohol at 20oC

Undenatured ethyl alcohol of an

alcoholic strength by volume of less

than 80 % vol; spirits, liqueurs and other spirituous beverages

2208

1 litre

40% by volume of

absolute alcohol at 20oC

24

SECTION III

SPECIAL PROVISIONS

A. Civil aircraft and goods for use in civil aircraft 1. Relief from customs duty is provided for:

— civil aircraft, — certain goods for use in civil aircraft and for incorporation therein in the course of their manufacture, repair, maintenance, rebuilding,

modification or conversion, — ground flying-trainers and their parts, for civil use.

These goods are covered by headings and subheadings listed in tables in paragraph 5. 2. For the purposes of paragraph 1, first and second indent, “civil aircraft” means aircraft other than aircraft used in military or similar services in

Kosovo which carry a military or non-civil registration. 3. For the purposes of paragraph 1, second indent, the expression “for use in civil aircraft” shall include goods for use in ground flying trainers for

civil use. 4. The relief from customs duties shall be subject to the conditions laid down in art.3 of the Administrative Instruction laying down the provisions

for customs procedures.

25

5. Goods eligible to this relief of customs duties are covered by the following headings or subheadings: 3917 40, 4011 30, 4012 13, 4012 20, 6812 99, 7324 10, 7326 20, 8302 10, 8302 20, 8302 42, 8302 49, 8302 60, 8407 10, 8408 90, 8409 10, 8411, 8412 10, 8412 21, 8412 29, 8412 31, 8412 39, 8412 80 80, 8412 90, 8413 19, 8413 20, 8413 30, 8413 50, 8413 60, 8413 70, 8413 81, 8413 91, 8414 10, 8414 20, 8414 30, 8414 51, 8414 59, 8414 80, 8414 90, 8415 81, 8415 82, 8415 83, 8418 10, 8418 30, 8418 40, 8418 61, 8418 69, 8419 50, 8419 81, 8421 19, 8421 21, 8421 23, 8421 29, 8421 31, 8421 39, 8424 10, 8479 90, 8483 10, 8483 30, 8483 40, 8483 50, 8483 60, 8483 90, 8484 10, 8484 90, 8501 32, 8501 52, 8501 61, 8501 62, 8501 63, 8502, 8504 10, 8504 31, 8504 32, 8504 33, 8504 40, 8504 50, 8507, 8511 10, 8511 20, 8511 30, 8511 40, 8511 50, 8511 80, 8518 10, 8518 22, 8518 29, 8518 30, 8518 40, 8518 50, 8519 81, 8521 10, 8526, 8528 52, 8529 10, 8531 10 95, 8531 20, 8531 80, 8539 10, 8544 30, 8801, 8802 11, 8802 12, 8802 20, 8802 30, 8802 40, 8803 10, 8803 20, 8803 30, 9001 90, 9002 90, 9014 10, 9025, 9029 20 38, 9030 31, 9030 33, 9030 89, 9032, 9104.

For the following subheadings, the relief of customs duties for use in civil aircraft is only granted to the goods described in column 2:

Subheading Description

3917 2190, 3917 2290, 3917 2390, 3917 2900, 3917 31, 3917 33, 3917 3900, 7413 00, 8307 10, 8307 90

With fittings attached

4008 29 Profile shapes, cut to size

4009 12, 4009 22, 4009 32, 4009 42 Suitable for conducting gases or liquids

3926 90, 4016 10, 4016 93, 4016 99 For technical uses

4504 90, 4823 90 Gaskets, washers and other seals

6812 80 Other than clothing, clothing accessories, footwear, headgear, paper, millboard, felt or compressed asbestos fibre jointing, in sheets or rolls

6813 20, 6813 81, 6813 89 With a basis of asbestos or other mineral substances

7007 21 Windshields, not framed

7322 90 Air heaters and hot-air distributors (excluding parts thereof)

7324 90 Sanitary ware (excluding parts thereof)

7608 10, 7608 20 With fittings attached, suitable for conducting gases or liquids

8108 90 Tubes and pipes, with fittings attached, suitable for conducting gases or liquids

8415 90 Of air-conditioning machines of subheading 8415 81, 8415 82 or 8415 83

8419 90 Parts of heat exchange units

8479 89 Hydropneumatic batteries; mechanical actuators for thrust reversers; toilet units specially designed; air humidifiers and dehumidifiers; servomechanisms, non-electric; non-electric starter motors; pneumatic starters for turbojets, turbopropellers and other gas turbines; windscreen wipers, non-electric; propeller regulators, non-electric

8501 20, 8501 40 Of an output exceeding 735 W but not exceeding 150 kW

8501 31 Of an output exceeding 735 W, DC generators

8501 33 Motors of an output not exceeding 150kW and generators

26

8501 34 Generators,of an outputexceeding 375kw

8501 51 Of an output exceeding 735 W

8501 53 Of an output not exceeding 150 kW

8516 8020 Assembled only with a simple insulated former and electrical connections, used for anti-icing or de-icing

8522 90 Assemblies and sub-assemblies consisting of two or more parts or pieces fastened or joined together, for apparatus of subheading 8519 81

8529 90 Assemblies and sub-assemblies consisting of two or more parts or pieces fastened or joined together, for apparatus of heading 8526

8536 70 Connectors of plastics for optical fibres, optical fibre bundles or cables

8543 7090 Flight recorders, electric synchros and transducers, defrosters and demisters with electric resistors

8803 9090 Including gliders

9020 00 Excluding parts

9029 10 Electric or electronic revolution counters

9029 90 Of revolution counters, speed indicators and tachometers

9109 10, 9109 90 Of a width or diameter not exceeding 50 mm

9405 10, 9405 60 Of base metal or of plastics

9405 92, 9405 99 Of the articles of subheading 9405 10 or 9405 60, of base metal or of plastics

6. The goods as mentioned in paragraph 5 are integrated in the TARIK by subheadings with a footnote reference in the following terms

“Entry under this subheading is subject to the conditions laid down in Part C of Annex 1 of LAW NO. 04/L-163 and subsequent amendments”.

B. Pharmaceutical products 1. Exemption from customs duty and V.A.T. is provided for pharmaceutical products of the following categories:

(a) Pharmaceutical substances which are covered by the CAS RN (chemical abstracts service registry numbers) and the international

27

non-proprietary names (INNs) listed in Annex 01;

(b) Salts, esters and hydrates of INNs which are described by combining INNs of Annex 01 with prefixes or suffixes of Annex 02,provided such products are classifiable in the same 6-digit HS-subheadings as the relevant INN;

(c) Salts, esters and hydrates of INNs which are listed in Annex 03 and which are not classifiable in the same 6-digit HS-subheadings as the corresponding INNs;

(d) Pharmaceutical intermediates, i.e. compounds of a kind used in the manufacture of finished pharmaceutical products which are covered by the

CAS RN and the chemical names, listed in Annex 04. 2. Special cases:

(a) INNs cover only those substances described in the lists of recommended and proposed INNs published by the World Health Organization

(WHO). Where the number of substances covered by an INN is less than that covered by the CAS RN, only those substances covered by the INN will be subject to customs duty- and V.A.T.-free treatment;

(b) Where a product of Annex 01 or Annex 04 is identified by a CAS RN corresponding to a specific isomer, only that isomer may qualify for customs duty- and V.A.T.-free treatment;

(c) Double derivatives (salts, esters and hydrates) of INNs identified by a combination of an INN of Annex 01 with a prefix or suffix of Annex 02 qualify for customs duty- and V.A.T.-free treatment, provided they are classifiable in the same 6-digit HS-subheading as the relevant INN: Example: alanine methyl ester, hydrochloride;

(d) Where an INN of Annex 01 is a salt (or an ester), no other salt (or ester) of the acid corresponding to the INN may qualify for customs duty- and V.A.T.-free treatment: Example: oxprenoate potassium (INN): duty-free

oxprenoate sodium: not duty-free. (e) An import license from the Kosovo Medicines Agency (KMA), mentioning the exact description of the pharmaceutical product,

as specified in the Annexes 01 to 04.

28

C. Containers and packing materials

The following provisions are applicable to the containers and packing materials referred to in general interpretative rule 5(a) and (b) and put Into free circulation at the same time as the goods which they contain or with which they are presented. 1. When the containers and packing materials are classified with the goods in accordance with the provisions of general interpretative

rule 5, they shall be: (a) Chargeable at the same rate of customs duty as the goods:

— where such goods are subject to an ad valorem customs duty, or — where they are to be included in the dutiable weight of the goods;

(b) admitted free of customs duties:

— where the goods are free of customs duty, or — where the goods are dutiable otherwise than by reference to weight or value, or — where the weight of the containers and packing materials is not to be included in the dutiable weight of the goods.

2. Where containers and packing materials covered by the provisions of paragraph 1(a) and (b) contain or are presented with goods of several

different tariff descriptions, the weight and value of the containers and packing materials shall, for the purpose of determining their dutiable weight or value, be apportioned among all the goods contained, in proportion to the weight or value of those goods.

29

D. Favourable tariff treatment by reason of the nature of the goods

1. Under certain conditions, favourable tariff treatment by reason of the nature of the goods is provided for:

— Pure-bred breeding live animals; — Seeds, sets of onions, goods for sowing.

2. Pure-bred breeding live animals:

For the purpose of classifying live animals in the appropriate headings for pure-bred breeding animals and for the purpose of collecting import duties and V.A.T., a live animal shall be considered a pure-bred breeding animal falling within TARIK-codes 0101 2100 00, 0102 2110 00,

0102 2130 00, 0102 2190 00, 0103 1000, 0104 1010 00 as appropriate provided that in Part II of the required Veterinary Certificate (See Annex 5) is specified that the live animal is for breeding. The zero rate is granted when also complying with the conditions laid down in Article 196/197 of Customs CS/A.I. No. 11/2009.

3. Seeds, sets of onions, goods for sowing:

For the purpose of classifying goods in the appropriate headings for seeds, for sets of onions or for goods for sowing and for the purpose of collecting import duties and V.A.T., goods shall be considered a seed, a set of onions or a good for sowing falling within TARIK-codes 0701 1000 00, 0703 1011 00, 1001 9110 00, 1001 9120 00, 1002 1000 00, 1003 1000 00, 1004 1000 00, 1005 1018 00 until 1005 1090 00, 1201 1000 00, 1206 0010 00 and heading 1209, provided that the required Phytosanitary Certificate (See Annex 6) is specifying that the goods are actually intended for sowing or are seeds or are sets of onions.

30

SIGNS, ABBREVIATIONS AND SYMBOLS

b/f Bottle flask

cm/s Centimeter (s) per second

€ Euro

INN International non-proprietary name

INNM International non-proprietary name modified

ISO International Organization for Standardization

Kbit 1 024 bits

kg/br Kilogram, gross

kg/net Kilogram, net

kg/net eda Kilogram drained net weight

kg/net mas Kilograms net, of dry matter

MAX Maximum

Mbit 1 048 576 bits

MIN Minimum

ml/g Milliliter (s) per gram

mm/s Millimeter (s) per second

PRO Prohibition

RON Research octane number

VET means that a Veterinary Certificate, which shall be issued by the competent authority, is required according to the decision 5079/10.12.2012 from the AUV (Food end Veterinary Agency)

FIT means that a Phytosanitary Certificate, which shall be issued by the competent authority, is required according to the decision 5079/10.12.2012 from the AUV (Food end Veterinary Agency)

L04 Regulation No. 2004/23 of 7 July 2004 on the promulgation of the Law on medicinal products and medical divices. A License issued by the Kosovo Medicines Agency ( KMA ) is required (See Annex 8).

L05 The Law No. 03/L-220 12.07.2010, on Excise Taxes on Tobacco Products in Kosovo. Import can only be done by importers authorized by the Kosovo Customs .

L06 License is required for the importation of petroleum and petroleum products in Kosovo by Administrativ Instruction Nr, 07/2010

L07 LAW No. 02/L-128 License for Narcotics Importing and Exporting and License for Precursors Importing and Exporting issued by the Kosovo Medicines Agency (KMA) is required for descriptions and synonyms presented in Table II, III and IV of LAW No. 02/L-128

L08 Certificate of homologation of the vehicle type, administrative instruction no.2008/08 on vehicle homologation

L09 Import authorizations for nylon bags according to the decision nr. 20 date 09/07/2013

- Not applicable

Note:A heading number placed between square brackets in the first column of the schedule indicates that the heading has been deleted (for example, heading [1519]).