Growing economy
BiH has strong market synergy potential that flows over to neighbouring markets (region of over 100 million consumers). Increasingly affluent consumers and economic growth are creating opportunities for UK suppliers, particularly in energy, infrastructure, advanced manufacturing, retail, security and defence, and life sciences.
Emerging Europe
BiH has a developing market, looking for new foreign investors, and is putting great efforts to make it as accessible to foreign companies as possible. The UK is one of the top ten biggest investors in BiH (6th in 2022), with the Service sector and Mineral extraction (mining sector) leading the way.
Top five UK goods exported to Bosnia and Herzegovina , in the four quarters to the end of Q3 2023
| Goods | Value (£ million ) |
|---|---|
| Leather manufactures | |
| Road vehicles other than cars (capital) | |
| Cars | |
| Miscellaneous metal manufactures | |
| Specialised machinery (capital) |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: November 2023
Download the latest trade and investment factsheet for Bosnia and Herzegovina.
Total import value (into the UK from Bosnia and Herzegovina) and export value (from the UK into Bosnia and Herzegovina) over time
| Year | Imports (£ million ) | Exports (£ million ) | Total trade (£ million ) |
|---|---|---|---|
| 2016 | 164.0 | 78.0 | 242.0 |
| 2017 | 50.0 | 62.0 | 112.0 |
| 2018 | 53.0 | 42.0 | 95.0 |
| 2019 | 63.0 | 50.0 | 113.0 |
| 2020 | 56.0 | 79.0 | 135.0 |
| 2021 | 190.0 | 66.0 | 256.0 |
| 2022 | 103.0 | 95.0 | 198.0 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2023
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Bosnia and Herzegovina.
Bosnia and Herzegovina: at a glance
Economic growth
7.4%
Actual figure (IMF, 2021)
The UK is 7.6% (IMF, 2021, actual figure)
GDP per capita
$6,794
Actual figure (IMF, 2021)
The UK is $46,422 (IMF, 2021, projected figure)
Currency
Bosnian Convertible Mark
Business languages
Bosnian, Serbian, Croatian
You may need a translator
Time zone
GMT +2
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Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Bosnia and Herzegovina have identified particular opportunities for UK businesses in the following sectors:
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Bosnia and Herzegovina is putting significant efforts to align its strategic sectors to EU standards. There is an ever-growing demand for reliable suppliers in the pharma sector, as legal frameworks are being revised.
Market size
Because of its position, Bosnia and Herzegovina has great potential to become a hub for the wider region. The legislative differences between its two entities all point to a need for a stable and reliable supplier of both products and services.
Pharmaceuticals
The country’s reliance on pharmaceutical imports will continue to grow, and new supplying partners are being sought after. Legal frameworks, and in some cases product pricing, significantly differs between BiH’s two entities. Committed suppliers are therefore sought after.
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So far, Bosnia and Herzegovina has committed to several large and high-profile rail and highway modernization projects, and is part of the major pan-European highway corridor “5C” - that connects Hungary and eastern Croatia to BiH and the Adriatic Sea.
Motorways
The country is constructing 210 miles of motorways in order to connect to the European road networks. Opportunities for UK companies include: project management, design, supervision and construction of strategic motorways, with potential in upgrading existing local road infrastructure, providing road signage, communication services and road safety equipment.
Railways
Bosnia and Herzegovina's rail system is decentralised and in the process of modernisation. Major users include large industrial plants, coal mines, and oil distributing companies. Passenger railway traffic is limited due to lack of modern, comfortable coach cars. UK companies could potentially provide equipment, track upgrades, and new locomotives.
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Electric power generation is a key economic strategy in Bosnia and Herzegovina since it has significant renewable power potential from hydro, wind, biomass and solar energy power plants. Opportunities for UK business include: supplying engineering and consultancy services and supplying a wide range of specialised power generation equipment and machinery.
Hydropower
Bosnia and Herzegovina is ranked 9th in the world in terms of hydroelectric power. Hydropower provided 37% of the country’s total electricity production in 2021. It still has ample space for additional growth, considering that approx. only 40% of its full potential is now being used.
Wind energy
Wind energy is being pushed forward by Bosnia and Herzegovina's governments, as a more stable alternative to hydro energy. Legislative changes aimed at developing a new technical infrastructure are constantly on the agenda. Bosnia and Herzegovina's wind potential stands at up to 2000 MW/year focusing on the areas of Livno, Tomislavgrad, Mostar, and Trebinje).
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Bosnia and Herzegovina
Preparing to export
Establishing a business
Establishing a business in Bosnia and Herzegovina can be time consuming. Your starting point should be a local lawyer, who you should retain and follow up with at each step of the process. New-to-market companies should find a local partner, for example a sales agent, representative or distributor.
Tax
The UK and Yugoslavia signed a Double Taxation Convention which continues to apply in Bosnia and Herzegovina.
VAT
If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Bosnia and Herzegovina, provided certain conditions are met.
VAT in Bosnia and Herzegovina is charged at a fixed rate of 17% for all goods and services. The Indirect Taxation Authority of Bosnia and Herzegovina is responsible for VAT.
Excise tax applies to oil derivatives, tobacco and beverages such as beer, wine and coffee.
Regulations
Bosnia and Herzegovina has its own set of standards known as the BAS Standard but all EU standards are recognised.
The Institute for Standardization (website in Bosnian) is the main body responsible for standards.
Product certification is required in order to make sure that the product has undergone appropriate testing and that it conforms to relevant regulations.
Labelling
Labels must contain the name of the product, the address of the importer and country of origin, net quantity, weight and/or volume of ingredients, manner of storage (transport, use, or maintenance) and relevant consumer warnings. Technically complex products must be accompanied by instructions on usage, manufacturer specifications, a list of authorised maintenance persons or businesses, warranty information, warranty period, and other applicable data.
All information must be translated into the languages of Bosnia and Herzegovina, either affixed to or accompanying the product.
Trade barriers
Check for any reported barriers to trading with Bosnia and Herzegovina.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Bosnia and Herzegovina
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
Payment terms
The preferred payment terms in Bosnia and Herzegovina are documentary collections and letters of credit. The safest method is cash in advance, or an irrevocable letter of credit as a minimum.
Business customs
Business customs in Bosnia and Herzegovina is a mix of old socialist-style habits and newly-acquired business practices. However, the business culture is changing as the market is opening up. This change, most obvious in the largest business and industrial centres, has introduced new management, language, IT skills, as well as Western-style business practices. Most of today’s managers are fluent in English and are completely computer-literate.
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. Local companies prefer to do business with people they know well. Business friendships are highly valued. Establishing a local presence and employing locals signal a long-term commitment to the market, and such practices are well received.
Next steps
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