Ban on export of timber assortments from BiH for two years sought

The Federal Government accepted the Information on the implementation of the conclusion adopted at the Third Joint Session of the Government of the Republic of Srpska and the Government of the Federation of Bosnia and Herzegovina, held on 4.10.2017, by which the Federal Ministry of Agriculture, Water Management and Forestry and the Ministry of Agriculture, Forestry and Water Management of the Republic of Srpska were tasked to agree on the text of a joint initiative to ban the export of logs from Bosnia and Herzegovina in order to secure raw materials for domestic wood processors, which the Prime Minister of the FBiH and the President of the Government of RS will send to the Council of Ministers of BiH.

- The Government of the Federation of BiH proposes to the Council of Ministers of Bosnia and Herzegovina that, in order to develop the domestic wood processing industry, the export of wood assortments, designated in the Decision on establishing the customs tariff for 2018 under tariff code 4403 (unprocessed wood, stripped, roughly processed - quartered, including debarked wood - with bark or outer layers removed), be banned for a period of two years.

Also, it proposes to the Council of Ministers of BiH that, in order to develop the domestic wood processing industry, a tax be introduced on the export of sawn timber for two years, specifically 120 KM for oak and 60 KM for beech per ton or cubic meter.

The Federal Government proposes to the Council of Ministers of BiH that, in order to protect domestic consumers who use wood as a raw material for heating, a tax be introduced on the export of firewood for two years, in the amount of 25 KM per ton or 18 KM per cubic meter.

Revenues from taxes would be paid through the Indirect Taxation Authority of Bosnia and Herzegovina into the budgets of the entities and Brčko District of BiH, into special dedicated accounts for "public utility functions of forests", in accordance with the origin of wood assortments from which semi-finished or finished products subject to tax are made. Funds from taxes would finance forest demining and the construction of forest roads, and a special regulation of the entities and Brčko District will govern the method of financing works, the method of controlling the spending of money and completed works, as well as other necessary activities. 

These measures are necessary due to the lack of raw materials on the domestic market for installed wood processing capacities in BiH, as well as due to the inability to procure raw materials through imports from neighboring countries, given that some neighboring countries have adopted measures that prevent wood processors from BiH from importing raw materials from those countries, while at the same time, the export of such raw materials from BiH to these countries is allowed.