Business Customs

Business customs in BiH remain an amalgam of old socialist-style habits and newly-acquired business practices. However, the business culture is changing. Over the past decade the business community has benefited from the presence of many international agencies, foreign investors, and technical assistance programs. This change, most obvious in the largest business and industrial centers, has introduced new management, language, and IT skills, as well as Western-style business practices. Most of today’s managers are fluent in English, and use IT equipment, email, and mobile phones. The exchange of business cards is a common practice. While most business meetings take place in a formal setting, it is not unusual to discuss business over coffee or lunch. An invitation to dinner should never be rejected; it may be a sign of a serious desire to do business. There are fewer women in business than men, but they are treated with respect. As is the case in many other countries, local companies prefer to do business with people they know well. Business friendships are highly valued. Establishing a local presence and employing locals signal long-term commitment to the market and is well-received.

Travel Advisory

Before traveling to BiH, U.S. citizens should consult the latest USG travel advisory at http://sarajevo.usembassy.gov/.  Americans in Bosnia and Herzegovina, visiting or resident, are urged to register with the U.S. Embassy in Sarajevo and enroll in the warden system (emergency alert network) in order to obtain updated information on travel and security in Bosnia-Herzegovina.

Visa Requirements

U.S. citizens possessing a valid passport do not need a visa to enter BiH for short-term stays of up to three months while visiting for business or tourism. Foreigners must register in person with the local police at the nearest police station within 24 hours of arrival. However, hotels will do this automatically for their guests. Registration is free for the first three months, regardless of the purpose of the visit. Stays of longer than three months (education, scientific research, employment, engagement in a professional activity, medical treatment, tourism, other justified reasons, or because of marriage to a BiH citizen) require a temporary resident permit, and visitors must apply for the permit before the end of their initial three months in BiH. Foreigners must state the reason for the extended visit and submit evidence of adequate financial support for the duration of their stay in BiH.

Fees for obtaining a temporary residence permit:

• For stays of up to three months: US$ 20
• For stays of up to twelve months: US$ 50
• Employees of international organizations that have a special contract with the BiH Government (such as NATO, UN, OHR) are exempt from the fee.

The Ministry of Interior’s Center of Security Services (i.e. police department) in the district where the foreigner is registered issues the temporary resident permit. Applications for extension of temporary resident status must be submitted a week before the previous permit expires.

U.S. Companies that require travel of foreign businesspersons to the United States should be advised that security options are handled via an interagency process. Visa applicants can obtain further information from the following websites:

State Department Visa Website: http://travel.state.gov/visa/index.html

United States Visas.gov: http://www.unitedstatesvisas.gov/

Consular Section at Embassy Sarajevo: http://sarajevo.usembassy.gov/

Telecommunications

Telecommunications services in BiH are relatively advanced. There are three 900 MHz GSM networks - BH Mobile, Mobis and Eronet with a solid coverage throughout the country and roaming agreements with most international mobile operators. Mobis is already featuring the GPRS service while BH Mobile announced it would soon offer the same service within its network. Unfortunately, Internet connectivity remains a weak spot with most hotels still not offering this service.

Transportation

BiH is located in the heart of the Balkans.  This position, along with the country’s poor road and railway network, makes air transport the fastest and most reliable connection to the outside world.  However, travelers in winter experience frequent delays caused by inclement weather (especially fog) at Sarajevo Airport.  There are four functional international airports although the Sarajevo Airport accounts for more than 90 percent of total passenger and cargo traffic.  Sarajevo International Airport is served by Austrian Airlines, Lufthansa, British Airways, Malev, Croatia Airlines, Turkish Airlines, Adria Airways, JAT, that connect Sarajevo with Vienna, Munich, London, Budapest, Zagreb, Istanbul, Ljubljana and Belgrade, respectively.  Air Bosna also has flights to international destinations, including Cologne/Bonn, Frankfurt, Istanbul, Stuttgart, Zagreb, and Zürich.  The airport features a cargo center with a fully equipped customs warehouse to serve the needs of cargo traffic.  Banja Luka International Airport opened for international traffic in 1998 to serve the city of Banja Luka and the surrounding region.  Currently, only JAT flies from Belgrade to Banja Luka. 

Car rental service is available from Budget, Hertz, Avis,National and Europcar as well as other local car-rental companies.

Language

BiH is a multiethnic, multi-religious, and multicultural country. There are three main ethnic groups in BiH: Bosniaks (Muslims), Croats (Roman Catholics), and Serbs (Orthodox). It is advisable to know your business partner’s ethnicity and religion. While the languages spoken in BiH – Bosnian, Croatian, and Serbian – are almost the same and mutually understandable, each ethnicity takes pride in speaking its own language. When necessary in a conversation, it is best to refer to the language as “local language.”

Health

The water supply in Sarajevo meets World Health Organization standards and therefore is not thought to pose a health risk. No lead or bacterial contamination has been found in the tap water in Sarajevo. The local cuisine is very similar to international cuisine and poses no risk. However, fresh vegetables and fruits must be thoroughly washed or peeled before consuming.

The drugs found in the pharmacies are usually labeled in the local language but the drugs can still be identified by the generic name. The dosage may also be different; for example, aspirin comes in a 500 gr. tablet.

The following are recommended immunizations for those traveling to BiH: Tetanus, Diphtheria, Measles, Mumps, Rubella and Polio vaccines. Typhoid fever vaccine and Hepatits A and B are recommended for those traveling in rural areas or anticipating extended stays.

Motor vehicle accidents are one of the leading causes of death in BiH. It is strongly recommended to use seatbelts when driving or being driven. Mines and associated devices were used extensively during the 1991-95 war. While many areas have been cleared of the mines, there is still a significant risk especially near the former confrontation lines. The following advice is given to avoid mines: stay on known safe surfaces, stick to approved routes, do not drive on road shoulders, observe local behavior, and obtain mine information.

Emergency health service is available in most cities. In Sarajevo, the number for emergency service is 124 or 611-111.

Local Time, Business Hours, and Holidays

BiH is in the GMT +1 time zone. Regular business hours are from 8 am to 5 pm; however, most government agencies close at 4 pm. There is no consensus on the national holiday schedule which means that certain parts of the country could be on holiday while others are working. It is recommended to check with the U.S. Embassy regarding local holidays. The Embassy holiday schedule can be found at http://www.usembassy.ba/embassy/holidays.htm. Summer break is in full swing during the months of July and August.

Temporary Entry of Materials and Personal Belongings

Exemption from customs duties is granted for the following:

• Various business documents including promotional materials such as brochures, other business and legal documents, blueprints, tender documents, bids, tickets, vouchers, printed forms, photographs, and recordings.
• Goods in the personal luggage of travelers including tobacco products (200 cigarettes, or 100 cigarillos, or 250 grams of tobacco per passenger per day), alcoholic beverages (2 liters of wine or 1 liter of alcoholic beverages with the alcohol content above 22%), 60 cc/ml of perfume or 250cc/ml of toilet water.
• Goods that are being used for commercial/promotional purposes including goods used and/or consumed at trade fairs including samples, printed materials (brochures, catalogs, price lists, photographs, videos, etc.), equipment, machines and other products that are being displayed at trade fairs, and various items of insignificant commercial value.

Web Resources

U.S. Embassy Sarajevo: http://sarajevo.usembassy.gov/
USG travel advisories: http://sarajevo.usembassy.gov/

Ministry of Foreign Affairs of BiH: http://www.mvp.gov.ba/index_eng.htm
Inside Bosnia: http://www.insidebosnia.com/
How to buy property in Bosnia and Herzegovina: http://www.bosnia-herzegovina-property.com/index.html
Sarajevo International Airport www.sarajevo-airport.ba
Banja Luka Airport http://www.banjaluka-airport.com/
Mostar International Airport http://www.mostar-airport.com/
Budget: http://www.budget.co.ba/
Hertz: http://www.hertz-europe.com
Avis: http://www.avisworld.com/
Europcar: http://www.europcar.com