Agreement on the collection of customs revenues in the north

Agreement on the collection of customs revenues in the north and the Development Fund

Agreement within the framework of technical dialogue
Date of signing: January 17, 2013

Agreement status:
The agreement has been fully implemented

Parties / delegations

Ivica Dacic
Prime Minister of Serbia

Catherine Ashton
EU High Representative for Foreign Affairs and Security Policy

Hashim Thaci
Prime Minister of Kosovo *

Officials

Tomislav Nikolic
President of Serbia

Ivica Dacic
Prime Minister of Serbia

Atifete Jahjaga
President of Kosovo *

Hashim Thaci
Prime Minister of Kosovo *

Background:

By reaching the agreement on collecting customs revenues, the reduction of uncontrolled entry of goods in North Kosovo was achieved, which contributed to the reduction of informal economy in the grey zone. All the way until then, Serbian companies doing business in the North had refused to pay customs duties to Kosovo.

The solution offered by this agreement was to establish the Fund for North Kosovo’s Development. The aim of the Fund’s establishing was to support the socio-economic in the four North Kosovo’s municipalities: Leposavić, Severna Mitrovica (North Mitrovica), Zubin Potok and Zvečan. The resources for the Fund are provided from customs revenues collected at the crossings of Jarinje and Brnjak from customs clearance of goods intended for North Kosovo, as well as from clearance of goods exported by the companies registered in the four North Kosovo municipalities.
The Fund’s operations are decided upon by the Managing Board. The Fund’s Managing Board was established in December 2014, consisting of the EU’s Special Representative in Kosovo as the Chair, Kosovo’s Minister of Finance on behalf of Kosovo’s Government and a representative of the four North Kosovo municipalities.

The revenues from both border crossings, Jarinje and Brnjak, are transferred from Kosovo’s Ministry of Finance to the account open in a commercial bank in Priština, managed by the EU Office in Kosovo. The Fund had collected more than 15.5 million euros until 31 December 2018. The projects finances from the Fund can be infrastructural projects, support to enterprises, farmers and civil society, promotion of human rights, education, access to health care and transport.

As a result of the agreement, Kosovo’s Government proposed an amendment to the 2013 Kosovo Budget Law, in order to translate the agreement into action.

The essential points of the agreement

Implemented

Establishment of Development Fund

Implemented

For companies and enterprises in the North, all documents (Serbian) for the previous registration shall be automatically considered valid.

Implemented

Kosovo’s customs officers should have unlimited access to border crossings in the North.

Implemented

Two crossings in the North that were burnt down in 2008, after the declaration of Kosovo’s independence, shall be re-established and charge customs duties in keeping with Kosovo’s law.