FAQs About Doing Business in Bosnia and Herzegovina

Are there visa requirements for U.S. citizens to travel to Bosnia and Herzegovina?

U.S. citizens possessing a valid passport do not need a visa to enter BiH for stays of up to three months while visiting for business or tourism.  Foreigners must register with the local police at the nearest police station within 48 hours of arrival when staying at a private residence. Visitors who stay in hotels will be registered automatically by the hotel.  Registration is free for the first three months, regardless of the purpose of the visit.  Stays beyond 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.

What are leading sectors for U.S. export and investment?

BiH offers opportunities to well-prepared and persistent exporters and investors.  The country is open to foreign investment with a liberal trade regime.

Although BiH is a small market, it offers good opportunities in the following sectors:

• Energy Generation and Transmission Equipment – planned construction and upgrade of hydro plants, thermal power plants and electrical power distribution projects.  BiH is one of two energy exporters in the region.
• Telecommunications – expansion of existing networks – mobile, fixed line and broadband.  The Federation Government remains heavily invested in the sector and privatization is unlikely in the near term.
• Transport Infrastructure – the Corridor 5C highway construction project and upgrade of the existing local road and railroad infrastructure. 
• Construction Equipment – due to the increase in commercial construction needs from the activities listed above.
• Medical Equipment - there are significant opportunities for U.S. manufacturers of sophisticated diagnostic equipment.

How do I find an agent or distributor?

Finding a good agent and/or distributor is one of the most effective means of market entry in BiH.  Reliable and capable partners can be found, but it may take some time and effort to locate them.  Nevertheless, it is recommended that a confirmed letter-of-credit be used when conducting business with a new local partner. Local partners can be located through the Foreign Trade Chamber of BiH,  which maintains a business registry and features a goods and services exchange electronic marketplace.  However, it is strongly recommended that the creditworthiness and local reputation of your future partner be verified before signing legal documents and/or conducting any business transactions.  The U.S. Embassy offers a number of services that can assist firms in this due diligence.

Which countries are major foreign investors in Bosnia and Herzegovina?

Over the past fifteen years, Austria has been the largest investor (20 percent), followed by Serbia (18 percent), Croatia (14 percent), Slovenia (11 percent), Russia (nine percent) and Germany (six percent).  According to BiH Central Bank data, the total value of foreign investments in BiH for the first nine months of 2011 amounted to 470.1 million KM (USD 313 million), which was almost 50 percent more than during the same period in 2010.  Most investments during the first nine months of 2011 came from Russia, (USD 211 million), followed by Serbia (USD 159 million) and Austria (USD 105 million).  The sectors that attracted the most investment were real estate, wholesale and retail trade and financial services.  Over the past fifteen years, Austria has been the largest investor (20 percent), followed by Serbia (18 percent), Croatia (14 percent), Slovenia (11 percent), Russia (nine percent) and Germany (six percent).  The manufacturing sector had the highest percentage of FDI, followed by the banking and trade sectors.

Which countries have signed free trade agreement with Bosnia and Herzegovina?

BiH has signed free trade agreements with Albania, Croatia, Macedonia, Moldova, Montenegro, Serbia and Kosovo.  It has preferential export regimes with the United States, New Zealand, Switzerland, Norway and Japan.  In 2008, Bosnia and Herzegovina signed the Stabilization and Association Agreement (SAA) with the European Union, a step towards EU membership, but it has not yet entered into force.  The SAA establishes a free trade zone between Bosnia and Herzegovina and the European Union, implying the mutual abolishment of all custom tariffs and quantity limitations on goods.  The Interim Agreement on Trade and Trade-related matters (IA) between EU and Bosnia and Herzegovina will be in force until the ratification process of Stabilization and Association Agreement is finalized by the all the EU member states.  According to the Interim Agreement, the preferential export regime with the European Union is in force, which provides that all goods of BiH origin that fulfill EU technical-technological standards and conditions, can be imported to all EU countries without any quantitative restrictions and without paying customs or other similar duties.  Once in force, the SAA should encourage further development of competitiveness among the country’s exporters and increase investments and employment.  Import tariffs have been eliminated for 11,000 products that BiH imports from the EU. 

Does Bosnia and Herzegovina have a bilateral investment treaty with the U.S.?

BiH does not have a bilateral investment treaty with the United States.

What is the total value of U.S. exports to Bosnia and Herzegovina?

BiH has a large foreign trade deficit with imports nearly two times greater than exports.  Total imports in 2011 totaled USD 10.1 billion, while total exports totaled USD 5.4 billion.  In 2011, imports from the U.S. totaled USD 446 million, while exports to the U.S. totaled USD 13.5 million.

How many U.S. companies operate in Bosnia and Herzegovina?

There are more than 50 U.S. and U.S.-affiliated companies that have established a full-time presence in the market. 

Does Bosnia and Herzegovina effectively protect intellectual property rights?

The BiH Government is strengthening its intellectual property rights laws in preparation for eventual membership in the European Union and the World Trade Organization.  The U.S. Government, in conjunction with local partners, has made IPR awareness within the enforcement community a priority through training programs, partnerships in campaigns run by the American Chamber of Commerce’s IPR committee, and a recent IPR program to build the capacity of BiH’s IPR Institute by improving efficiencies in the IPR application process and by assisting with drafting of regulations.