Kosovo Business Journal the offical newsletter of amchamksv.org Issue 10 // April 2009 // Prishtina, Kosovo
AmCham Kosovo becomes full-fledged member of European Council of American Chambers of Commerce (ECACC) Digital Video Conference on the U.S. Generalized System of Preference Program held in Prishtina Roundtable with Kosovo Tax Administration and Kosovo Customs B2B Event with AmCham Macedonia held KRC organizes the symposium on mineral exploration investment opportunities AmCham 5th General Assembly
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AmCham Kosovo becomes full-fledged member of European Council of American Chambers of Commerce (ECACC) Dear members and friends of the American Chamber of Commerce in Kosovo, It is our special pleasure to inform you that since Tuesday, March 31st, 2009, American Chamber of Commerce in Kosovo is fully accredited member of the European Council of American Chambers of Commerce (ECACC) operating from Brussels. With this acceptance Kosovo becomes part of the association represented in 39 European countries with 40 American Chamber members. ECACC presents 17,000 European and American companies who employ more than 2 million people. American Chamber of Commerce of Kosovo joins this huge family starting from Tuesday, March 31st.
This accreditation will enable AmCham Kosovo to become part of the bilateral trade discussions between United States and Europe, as well as other important discussions for the operations of European and American businesses in Europe. The ECACC members meet twice a year, once in Washington DC at the US Chamber and once in Europe, depending on the decision of the Council members. Other countries who’s AmCham’s are member and who in majority voted AmCham Kosovo as the newest member are: Albania, Austria, Azerbaijan, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Israel, Italy, Latvia, Luxembourg, Macedonia, Malta, Moldova, Nether-
lands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, and other two members are Estonia and Lithuania. American Chamber of Commerce in Kosovo represents the 41st accredited association and 40th European country part of the ECACC. We welcome our future successes and joint cooperation, Best regards, Mimoza Kusari-Lila Executive Director
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Digital Video Conference on the U.S. Generalized System of Preference Program held in Prishtina The USAID Mission in Kosovo, US Embassy in Prishtina, and the Office of the U.S. Trade Representative in Washington D.C. organized on Friday, March 20th, in Prishtina, a digital video conference on the U.S. Generalized System of Preference. The aim of the DVC presentation, given by the Office of the U.S. Trade Representative, was to explain to the Kosovo businesses the benefits of the GSP and how Kosovo businesses can take advantage of the program.
Present in the USAID Conference Room in Prishtina were about 30 different Kosovo businesses coming from different industries and sectors while the U.S. Trade representative in Washington D.C. was joined by Avni Spahiu, Charge d’Affaires of the Embassy of the Republic of Kosovo in Washington and AmCham Kosovo director Mimoza Kusari Lila.
ences (GSP) program. The GSP program, established in 1976, promotes economic growth by providing preferential duty-free entry for more than 4,650 products from 131 designated beneficiary countries and territories. U.S. imports under GSP in 2008 from all beneficiaries totaled over $31.7 billion (approximately 5% of the overall U.S. imports).
On December 19, 2008, Kosovo was designated as a beneficiary developing country under the Generalized System of Prefer-
The U.S. Trade Representative pointed out that U.S. companies and customers are especially interested in importing goods under
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Kosovo Business Journal
the GSP program because they are not charged duties upon entering the U.S., which can range from two percent to seventeen percent of the items’ cost.
port must meet the following requirements:
The U.S. Trade Representative explained to the Kosovo businesses that the combined GSP-eligible product lists include most dutiable manufactures and semimanufactures, and certain agricultural, fishery, and primary industrial products.
• It must be imported into the United States directly from the GSP beneficiary or pass through another country in a sealed container
Types of U.S. Imports that received duty-free treatment in 2007 were as following: Machinery, Electronics, Transportation with 20.4%, Base Metals & Articles with 12.1%, Jewelry & Glassware with 13.4%, Fuels with 29.1%, Chemicals, Plastics and Paper with 16.0%, Agriculture with 6.3% and Textiles and Apparel 2.7%. The U.S. Trade Representative emphasized the fact that some articles are prohibited by the GSP statute from receiving GSP treatment, including textiles produced with cotton, wool, manmade fiber, other vegetable fiber (linen and ramie); watches; certain footwear and handbags; luggage; flat goods not made of silk; work gloves; and other leather items. In order for the potential Kosovo exporters to the U.S to receive GSP duty-free treatment, their im-
• It must be included in the list of GSP-eligible articles.
• The article must be growth, product, or manufacture of the GSP beneficiary • When product inputs are imported from outside of the GSP beneficiary country, the sum of the cost or value of materials produced in the beneficiary country, plus the direct costs of processing, must equal at least 35% of the product’s appraised value when the product is sold for export into the U.S. Imported materials can be counted toward the 35% value-added requirement only if they are “substantially transformed” into new and different constituent materials which are then used to produce or manufacture the eligible article to be exported. “Substantially transformed” means that U.S. customs would classify the constituent materials as different items.
(HTSUS) number that identifies the imported article on the customs entry form. For more information about GSP, including a list of products eligible for duty-free entry to the United States, please visit: http://www.ustr.gov/Trade_ Development/Preference_Programs/GSP/Section_Index.html http://www.ustr.gov/Trade_ Development/Preference_Programs/GSP/2009_GSP-Eligible_ Products/Section_Index.html Description of GSP Program: http://www.ustr.gov/Trade_Development/ Preference_Programs/GSP/Section_Index.html GSP Guidebook: http://www.ustr.gov/assets/Trade_ Development/ Preference_Programs/GSP/asset_upload_file666_8359.pdf GSP List of Eligible Products: http://www.ustr.gov/Trade_Development/Preference_Programs/ GSP/2007_GSP-Eligible_Products/Section_Index.html US Embassy in Kosovo: http://pristina.usembassy.gov/
• The exporter/importer must request duty-free treatment under GSP by placing an “A,” “A+,” or “A* before the U.S. tariff line
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Roundtable with Kosovo Tax Administration and Kosovo Customs presented on the changes introduced on customs rates and VAT on imports as part of the new fiscal package. Mr. Huruglica also elaborated upon the achievements made by the Kosovo Customs as well as obstacles for successful administration of the customs. To this end, Mr. Huruglica noted the difficulties that the institution he heads has experienced in the two border crossings in the north of Kosovo, where the presence of Kosovo Customs officials is yet to be established.
The roundtable organized with KTA and Customs aimed at clarifying the changes in the procedures and tax rates that have entered into force on January 1, 2009. The need for the event was made apparent by numerous requests and inquiries made by AmCham members. The relevance of the event was also confirmed by the vast presence of businesses at the roundtable. The event was opened by the President of AmCham Board, Mr. Luan Dalipi that made a brief summary of events that have taken
place in 2009 and the reasons behind organizing the roundtable. The opening presentation of Mr. Dalipi was followed by a presentation by Sakip Imer, Deputy Director of Kosovo Tax Administration who presented on the changes introduced in procedures and tax rates. The detailed overview of changes incurred was followed by the plans of the Ministry of Economy and Finance for the near future and the changes that are yet to be introduced. The director of the Kosovo Customs Mr. Naim Huruglica also
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The presentations of the two officials were followed by an intense question and answer session where the AmCham members present at the workshop presented their views and points of interest regarding the changes and these comments and inquiries were responded to by the two officials. One of the most discussed issues in the roundtable was that of VAT on the export of services. The business representatives were persistent in their argumentation of the need to exempt exported services from the value added tax, which is a consumption tax. The representative of the Tax Administration was familiar with the issue, but claimed that the Ministry of Economy and Finance has not determined yet whether the services offered by Kosovar companies outside of Kosovo will be exempt from the value added tax.
Kosovo Business Journal
B2B Event with AmCham Macedonia held
The American Chamber of Commerce in Kosovo in cooperation with AmCham Macedonia hosted a B2B Summit on February 19th in Hotel Arka in Skopje. Companies from Macedonia and Kosovo gathered for a one day meeting to discuss the investment climate in Kosovo and Macedonia, opportunities for collaboration and enhancing the networking among them The agenda for the B2B Summit included the addressing speech by AmCham Macedonia Board President, Ilijanco Gagovski who welcomed all participants, thanked sponsored and elaborated on the importance of holding B2B events. Mr. Gagovski then introduced the key speakers for the event from the European Bank for Reconstruction and Development.
Elena Urumovska, from EBRD Macedonia, was mainly focused on the EBRD-Italy Local Enterprise Facility (“LEF”) while explaining what this program contains, what are the resources, objectives, and achievements. Elena Urumovska stated that EBRD also practices equity financing and debt transactions.
Fabio Serri, Head of EBRD Prishtina Resident Office, also elaborated on EBRD- Italy Local Enterprise Facility (“LEF”) and gave some examples of selected LEF Equity Investments in Kosova as well. He mentioned companies such as Pestova, NewCo Ramiz Sadiku Brick Factory and the amount of money (shares) invested in these companies. At the end of presentation, both representatives gave vivid details on the valuation,
post-investment management and EBRD exit strategy. AmCham Macedonia Executive Director, Michelle Osmanli, provided logistical details for the remainder of the day and invited everyone to lunch. The B2B Summit and the break-out sessions for the following industry groups took place simultaneously. The breakout sessions were focused on three sectors: Industrial Suppliers, Energy & Manufacturing, Information Technology, and Food, Beverages and Consumer Goods. Present in the B2B meeting were about 40 business members from Kosovo and Macedonia while the IT was the dominant industry in this B2B event. This B2B Event provided a brilliant opportunity for the business community in Kosovo and Macedonia to network and strengthen the cooperation between them.
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Kosovo Resource Company organizes the symposium on mineral exploration investment opportunities
American Chamber of Commerce in Kosovo and the AmCham member company Kosovo Resource Company, a subsidiary company of Lydian International, held the symposium & presentation on mineral exploration investment opportunities in Lydian International. Lydian International is a diversified UK mineral exploration and development company with expertise employing “first mover” strategies in international emerging environments. This presentation was conducted by Lydian International President and CEO Dr. Tim Coughlin. Mr. Coughlin focused on Lydian
International flagship projects in Kosovo and Armenia as well as at the wide range of investment opportunities offered by the company
(share buying & investment portfolio diversity) to Kosovo businesses and individuals.
AmCham
5th General Assembly The American Chamber of Commerce in Kosovo held the 5th General Assembly, an annual meeting of AmCham members. The agenda for the Assembly included: the presentation of the report on AmCham activities during 2008, the presentation and voting of AmCham activities for 2009, the discussion and amendment of several clauses in AmCham Bylaws, the distribution of Appreciation Certificates for the Board members who served during 2008 as well as the elections for seven board member positions.
The 5th Assembly proceeded according to the agenda where the President of AmCham Board Luan Dalipi opened officially the GA Meeting. He thanked all members for being present in the meeting while stressed out the role that AmCham Kosovo has played during 2008. Mr. Dalipi shortly summarized main activities organized by AmCham during 2008 while also pointing out to the obstacles and challenges faced by AmCham during this period. Mr. Dalipi said that “Last year was a very challenging and spur-
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ring year for our Chamber; this year, as well, is expected to be interesting in a sense of changes, potential investments that our country needs while at the same time very challenging: in a view of financial difficulties that we and the potential investors are facing as part of the global financial crisis.” Dalipi added that “we have to continue with our progressive and proactive spirit so that we can help each other to become stronger and in this way assist the economic development of our country.”
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Shaipi, Business Coordinator, presented the plan on 2009 AmCham activities. After the approval of the 2009 activities and the budget for them, then members of AmCham approved also several changes on AmCham Bylaws. The last point in the agenda of AmCham Assembly Meeting was the elections of seven (7) new members of the Board, who serve in one year term.
The president of the Board also talked about the AmCham activities, which among the main ones were: Networking, Advocating, and Economic Development (which comprises of: Definition of the Problem, Negotiation, Formal Proposal, Participation in Official Nr. 1 2 3 4 5 6 7 8 9 10 11
Name &Last Name Luan Dalipi Ilir Aliu Arten Bajrushi Amer Ali Agim Bekaj Shani Mullabazi Urtak Hamiti Vullnet Latifi Burim Hyseni Gezim Gjikolli Chris Hall
Drafting of Law Amendments as well as Problem Solving). The agenda continued with the presentation of AmCham Kosovo activities for 2008 by Mentor Mehmedi, Activity & Public Relations Coordinator, while Kushtrim
Company MDA Procredit Bank NewCo Ferronikeli Com. LLC Deloitte Microsoft Stone Castle Kosovo Resource Corporation NLB Prishtina Coca Cola Dukagjini Group AUK
Members of AmCham Kosovo, with their votes, elected seven (7) new members in the Board position of “member�. The new Board of the American Chamber of Commerce is as following (note: the position of President, vice President, Secretary General and Treasurer were not put into elections due to their two year term). Position President Vice President Secretary General Treasurer Member Member Member Member Member Member Member
At the end, after the closure of AmCham 5th General Assembly Meeting, a cocktail was served.
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Special thanks to: American Alliance Language Services • American School of Kosova • AGANI Ltd • ANTIKA • ASGETO Shpend Luzha • AUK • • Booz Allen Hamilton Inc, Kosovo Branch • Banka Ekonomike • BEJTA Commerce • BONUS BOGA&ASSOCIATES • British Airways • Buçaj Sh.p.k. BSB Company • CEO • Coca Cola HBC Kosovo L.L.C • COMPAKT GROUP CONIN • Deloitte • Devolli Company • Dukagjini Group • ECOTRADE ELTING • FEKI • Gllareva • Gorenje Niti Tiki • Grant Thornton Enver Sahiti • Ilir Kosova • Linda Shala • Gail Warrander Safet Dorambari • Diamant Rrahmani • INFORMATIKA Computers sh.p.k KALO&ASSOCIATES KOSOVE shpk. • Kosova Steel KPMG • Kosovo Resource Company LLC • KONET • Karrota sh.p.k - Ogilvy Kosova • MARIGONA RESIDENCE • McCroft Tobacco Kosovo LLC • MDA • Meridian • Microsoft • New Kosovo Energy LLC NewCo Ferronikeli Complex LLC • NewCo AROMATIK L.L.C. NLB Prishtina • Pestova • PharmaSwiss SA, Sh.p.k • • ONIHERBA • Procredit Bank • PRONET • Propharm Helvetica Raiffeisen Bank • RIALKO Company • RIMA Eng. Royal Iliria University • RWE Power Kosovo LLC • Scan Color & Jysk • Santefarm shpk • SGS Kosovo Ltd. • “StoneCastle” Vineyards&Winery Sharr Beteiligungs GmbH • SIGAL • SOLE KOSOVA Triangle General Contractors Inc • TEB • UBT • Washington Group International Western Union • Xella GZG Lipjan L.L.C • Shridev Sharma • Xheladin Zeka Sport In • Zero Pozitive Publicis American Chamber of Commerce in Kosovo Gustav Majer STR. No 6 Prishtina, Kosovo, 10,000 Phone: 038 246012 Fax: 038 248012 e-mail: newsletter@amchamksv.org www.amchamksv.org Executive Director: Mimoza Kusari – Lila Coordinator: Mentor Mehmeti Prepared by: AmCham Kosovo staff Design: ashagraphics.com for comments and suggestions, please write us at: kbj@amchamksv.org