Organization of Customs
The customs legislation in the Republic of Albania is fully in line with the legislation of the European Union.
- Primary legislation - The Customs Code of the Republic of Albania (Law 102/2014) is fully aligned with the EU Customs Code (EU Regulation 952/2013).
- Secondary legislation - Implementing provision of the Customs Code (Decision of the Council of Ministers no. 651/2017).
- There are a number of third level legal acts (mainly the Instructions of the Director General of Customs), related to the functioning of regimes, controls, etc.
Active Processing Regime
The most important regime for a company is the Active Processing Regime (IPR). The regime allows non-Albanian goods to enter (or be imported) to Albania, be processed and then re-exported to the destination country without Import Duties and VAT on imports into Albania.
If the company decides to sell a part of the production in Albania, it has to pay the import duties (but the import duties in this case are based on the customs value of the raw materials and not on the value of the processed products).
The request must be submitted to the General Directorate of Customs in Tirana. Durrës Customs will be responsible for monitoring the regime. Import and export formalities can be done at any border point of the Republic of Albania.
To complete Customs Procedures, each company must first register the NIPT in the "Asycuda World" system.
Exemption from VAT
- According to the law "On VAT", machinery and equipment used in the production process for companies operating under the Active Processing Regime are exempt from VAT on import.
- VAT is also exempt for machinery and equipment for investments higher than 400,000 euros.
However: In both cases above, not all types of machinery are excluded. There is an annex with the goods codes of the machines that can benefit from the VAT exemption. A check should be made for any tariff code of machinery and other materials.
The company can send the list of machines destined for import to AIDA, so AIDA can check the list in cooperation with the General Directorate of Customs.
Free Trade Agreements
Albania has signed several free trade agreements (FTAs) with key markets (European Union, Turkey, CEFTA, EFTA countries), offering free customs entry to a large consumer market.
It means that products of Albanian origin (according to the rules of origin in force) can be exported from Albania, and on import to the above countries do not pay customs duties.