BiH to introduce 30% customs duties on steel imports at request of Nova Zeljezara

Bosnia and Herzegovina plans to introduce increased customs duties on imports of steel and steel products of 30 percent, based on the model from Serbia, for a period of 200 days.

The proposal was prepared by the Ministry of Foreign Trade and Economic Relations of BiH, at the request of Nova Zeljezara Zenica, which should be approved by the Council of Ministers of BiH after public consultations.

Data prepared by the relevant ministry show that the reasons for this decision are justified.

For example, the total growth in imports of reinforcing mesh in BiH increased by 192.87 percent last year compared to the four-year average.

The main importer was Serbia, which imported over 9,000 tons, or 408 percent more compared to the period between 2021 and 2024.

Italy is in second place with imports of 7,794 tons, or twice as much as in the previous period.

Also critical is the growth in imports from Turkey. Reinforcing steel in coils recorded an increase in imports from this country of 885 percent compared to the four-year average, while imports of reinforcing steel in bars increased by 229.56 percent.

The ministry assesses that these trends are not normal, but that there has been obvious pressure from foreign manufacturers, who market their products in BiH and thus put domestic manufacturers in an unequal position while their capacities remain unused.

– This practice threatens the overall stability of the construction sector, because consumers become dependent on imported products, which already exist on the domestic market – the ministry states, explaining its proposal.

They assess that the economic consequences of this trend are multiple and that they can cause job losses, a decline in fiscal revenues, a decrease in investments and an increase in prices on the domestic market.

– This may ultimately lead to the permanent suppression of domestic industry, or serious damage to domestic production of goods – the draft decision states.

At the beginning of the year, Serbia introduced quotas for BiH’s iron and steel exports, where it imposed 50 percent customs duties on goods above the quota.

As a reminder, the management of Nova Zeljezara Zenica, which was purchased last year by the company H&P from Zvornik - a member of the Pavgord Group, filed a petition for bankruptcy for the company, and the main reason stated was that the company has been in a state of insolvency for a long time.

Ministry of Foreign Trade and Economic Relations of BiH

Council of Ministers of BiH

Nova Željezara Zenica

H and P Zvornik

Pavgord

import of steel and steel products

steel import customs

export of iron and steel from BiH

export of iron and steel to Serbia