Three out of 14 free zones in Serbia do business according to the law, warns Ministry of financies

Of 14 free industrial zones in Serbia only three do business according to the Law. It is a matterof zones in Subotica, Zrenjanin and Pirot, while the zones in Sombor, Vladicin Han and Kovin do not. The rest of 8 zones are doing strictley storaging of customs goods - said Vesna Hreljac-Ivanovic, assistant of the Minister of financies for customs system and politics.

According to the Law of working in free zones, the export from those zones should be 50% of the total production, which is not done exceot in the three mentioned zones. This is why The Government of Serbia will take away the privileged status to those zones, which means they would not be able to do business with custom and tax allowances. this, however doesn't mean cancellation of commercial subjects which do their business there, but only their preregistration and getting of solution for doing activities of custom storaging. The zones who have intentions of keeping their status should have to renovate their licence for doing those activities.

By this new law of feee zones, which is in prepairation, all regulations will be according to the standards of World trade organization and European union.

New law of free zones allows that companies which do business in free zones should be founded with 100% of foreign capital. It is also in mind to cancel export stimulations, but the tax and customs allowances would be kept. Fee for custom evidence will be cancelled which is at the moment 0.5% of the total goods value.