On October 20, 2023, the Government of the Republic of Serbia gave its approval to the Draft Law on the ratification of the Free Trade Agreement with the People's Republic of China.
The agreement was signed a few days earlier, on October 17, 2023.
The signatories of the Agreement aim to deepen trade and economic cooperation between the two countries, fostering more intensive and diversified mutual trade based on the principles of equality, mutual benefit, and international law.
The primary objective of the Free Trade Agreement with China is to facilitate preferential market access for Serbian products. This is anticipated to not only balance trade by reducing the existing trade deficit and increasing export coverage, but also stimulate investment, expand production capacity, and bolster overall economic activity in Serbia
Yesterday, a ceremony was held in Novi Sad to celebrate the entry into force of the Free Trade Agreement between Serbia and China.
In addition to Serbian Minister of Internal and Foreign Trade Tomislav Momirović and Chinese Ambassador to Serbia Li Ming, the ceremony was also attended by President of the Serbian Chamber of Commerce Milan Čadež, as well as other Chinese and Serbian officials and business representatives
At the ceremony, Minister Momirović emphasized that the entry into force of the Serbia-China Free Trade Agreement is crucial for Serbia's economic progress and the continued development of the 'iron friendship' with China. He reaffirmed Serbia's dedication to this strong and enduring partnership. The Minister emphasized that the Free Trade Agreement will not only expand bilateral trade but also stimulate investment collaboration and facilitate the integration of industrial value chains, allowing both countries to effectively utilize their economic advantages and collectively enhance their competitiveness in the global market.
Ambassador Li Ming highlighted that the China-Serbia Free Trade Agreement holds historical significance as the inaugural free trade agreement established between China and a nation in Central and Eastern Europe. He emphasized the remarkable speed with which the agreement was finalized, achieved within less than a year and a half from the initiation of negotiations. This exceptional efficiency serves as a testament to the deep-rooted political trust and the enduring 'iron friendship' that characterizes the relationship between our two countries.
Upon the entry into force of the China-Serbia Free Trade Agreement, both countries will eliminate customs duties on 90% of tariff codes. Over 60% of these tariff reductions will take effect immediately. Ultimately, both sides aim to achieve zero-tariff status on approximately 95% of imported goods.
Application of the agreement in practice
The new Customs Tariffs classify products into five categories based on their sensitivity, with varying degrees of tariff rate liberalization applied to each category.
Serbia will utilize the following categories in its process of customs duty abolition:
- Effective immediately upon the entry into force of this Agreement, goods originating from category 'A0' in the List will be completely duty-free;
- Customs duties on goods originating from category 'A5' in the List will be phased out over five years, with equal annual reductions commencing on the date of the Agreement's entry into force. These goods will be completely duty-free as of January 1 of the fifth year;
- Customs duties on goods originating from category 'A10' in the List will be phased out over ten years, with equal annual reductions commencing on the date of the Agreement's entry into force. These goods will be completely duty-free as of January 1 of the tenth year;
- For goods originating from category 'A15' in the List, customs duties will be eliminated gradually over a fifteen-year period, with equal annual reductions starting from the Agreement's effective date. These goods will be fully exempt from customs duties on January 1 of the fifteenth year;
- Customs duties on goods originating from category 'E' in the List will remain unchanged at the current base tariff level;
| Category | Import to RS | Import to PRC | ||
|---|---|---|---|---|
| A0 | 6272 | 60.24% | 5376 | 60.20% |
| A5 | 1709 | 16.41% | 1475 | 16.52% |
| A10 | 1025 | 9.84% | 882 | 9.88% |
| A15 | 402 | 3.86% | 355 | 3.98% |
| E | 1004 | 9.64% | 842 | 9.43% |
| total | 10412 | 100% | 8930 | 100% |
Representation of tariff tags by category
According to the attached table, the tariff liberalization schedule for imports from China to Serbia includes immediate duty-free access for around 60% of tariff codes. Subsequent liberalization phases will see 16% of tariffs removed after five years, 10% after ten years, and 4% after fifteen years. It's important to note that the most sensitive products, particularly those in the agricultural sector, will remain subject to some level of protection.
Following the longest transition period of fifteen years, products covered by approximately 90% of tariff codes will achieve full liberalization, becoming exempt from all customs duties and other applicable charges.
The full text of the Free Trade Agreement between the Government of the Republic of Serbia and the Government of the People's Republic of China is available on the website of the Ministry of Internal and Foreign Trade."Law on Confirmation of the Agreement on Free Trade" .
For each product, the base duty to which gradual reductions are applied will be the duty applicable from January 1, 2022.
Custom tariffs overview
You can find the customs duties listed in the customs tariff under the CN code on the website of the Customs Administration of the Republic of Serbia, as of yesterday.
Summary of customs duties for importing goods from China to the Republic of Serbia.
Summary of customs duties for importing goods from Serbia to the People's Republic of China.
The Chinese perspective of the agreement can be found on their official website. China-Serbia Free Trade Zone
If you are importing goods from China to Serbia, use the tables linked above to find your specific product and identify the corresponding customs duty rate
For the most accurate and reliable information regarding customs duties, we advise contacting a shipping company or customs broker directly.
Source of information: http://www.parlament.gov.rs/upload/archive/files/cir/pdf/predlozi_zakona/13_saziv/2025-23%20pdf..pdf, https://www.paragraf.rs/dnevne -vesti/241023/241023-vest8.html, https://must.gov.rs/tekst /sr/8535/tekst-sporazuma.php , https://serbian.cri.cn/2024/07/02/ARTIgZ93u11aEAG4z8y7Y262240702.shtml