Issue 18 by AmCham Kosovo

U.S. Ambassador Addresses the Business Community Pg8-10 • Foreign Direct Investments in Kosovo Pg12-13 • FDI: Theoretical and Practical Issues Pg16-17 • AmCham Study: Case for investing in Kosovo Pg18

The Horizon - New Year’s Edition

The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

In this Issue of Horizon U.S. Ambassador Addresses the Business Community --------------------------------------------------------------------------- 8 Foreign Direct Investment in Kosovo -------------------- 12 Investment Stories ------------------------------------------------- 13 Foreign Direct Investments: Some Theoretical and Practical Issues ------------------------------------------------------ 16 Why invest in Kosovo? -------------------------------------------18 Public Procurement in Kosovo ------------------------------ 19 Generalized system of Preferences ---------------------- 22

AmCham Board of Directors

Amcham News Policy and Legislative Highlights -------------------------- 24 Traffic Safety Program ------------------------------------------- 26 Green Kosovo ---------------------------------------------------------- 27 Annual Gala Night ------------------------------------------------- 28 Amcham Events ----------------------------------------------------- 30 New Members -------------------------------------------------------- 35

Erolld Belegu Marigona Residence President of the AmCham Board of Directors

Jerry Rexha Devolli Corporation Vice-President of the Amcham Board of Directors

Dastid Pallaska Pallaska & Associates Secretary General of the AmCham Board of Directors

Agon Gashi MERIDIAN Treasurer of the AmCham Board of Directors

Ardiana Bunjaku SCAAK

Agim Bekaj Microsoft Corporation

Afërdita Saraçini Kelmendi RTV 21

Driton Zairi Kosova Motors

Ilir Ibrahimi AUK

Lekë Musa Baker Tilly Kosovo

Michael Mix Bechtel & Enka

Arian Zeka Executive Director AmCham Kosovo

Issue number 18 The Horizon is the official magazine of the American Chamber of Commerce in Kosovo. Every publication contains a different theme focus on economic perspective in Kosovo. The Horizon is distributed to a broad audience including AmCham members, decision makers, diplomatic representation, donor community, US Chamber of Commerce in Washington D.C., European Council of American Chambers of Commerce based in Brussels, and other relevant stakeholders. The content of this publication does not necessarily present the opinions and positions of the American Chamber of Commerce in Kosovo. Disclaimer: Theme photographs presented in this magazine are not property of AmCham Kosovo.

INFO Published by: American Chamber of Commerce in Kosovo; Fehmi Agani St. No. 36/3; Prishtinë, 10000; Republic of Kosovo Tel: +381 38 246 012; Web: www.amchamksv.org Email: info@amchamksv.org Editor in Chief: MA. Nora Siqeca Assistant: Rina Abazi

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Patron Members

Members 3CIS J.S.C · ACDC-KOS L.L.C · ADAS Counsel Kosovo LLC · AGANI Ltd. · Alcatel Lucent · American School of Kosova – ASK · American University in Kosovo – AUK · ARFA · ARS Travel · Arta-VM L.L.C · ASGETO · Asha L.L.C · Ask Foods · Asseco · AVC Group · Avokatura IOT · Baker Tilly Kosovo · Banja e Kllokotit · Banka Ekonomike · Banka Kombetare Tregtare · Banka për Biznes · Bechtel- ENKA G-P · Birra Peja · Boga&Associates · Booz Allen Hamilton Inc · British Airways · Buçaj L.L.C · Butterfly Consulting LLC · CEED Kosovo · Checchi and Company Consulting · Coca Cola HBC Kosovo L.L.C · Compact Group · Company 21-RTV 21 · CONIN · Crimson Finance Fund LLC · Dardania · Delfin LTD · Deloitte · Devolli Corporation · Devolli Group · Doctor Exterminator · Dukagjini Group · EcoTrade · Elkos · ELTING · Emerald Hotel · English Center · Eskavatori L.L.C · Exclusive Group · Fundway LLC · Global Construction · Gorenje Niti Tiki · Grant Thornton · Haxhijaha · Holland Tech · Hotel Nartel · Hotel Prishtina · Hotel Sirius · Hotel Victory · Ilir Kosova · Individual Arber Sherifi · Individual Gail Warrader · Individual Hana Cakuli · Individual Kanarina Shehu · Individual Linda Shala · Individual Merita Kostanica · Individual Mimoza Kusari Lila · Individual Stephen Leeds · Individual Zana Haxha · Informatika Computers L.L.C · Interlex Associates L.L.C. · Intermarket · IPKO Telecommunication L.L.C. · Iron Consulting · Jens Automotive · KAEF · Kalo & Associates LLC · Kerasan · Kolegji Universitar · Victory · KONET · Kosova Motors · Kosova Petrol · KPMG · Kreatoda · KWE · Kosova Water and Energy · Link Software · Llamkos GlavaSteel · M & Sillosi · Marigona Residence · Marketing Mix · MDA · Mercom · MercyCorps · Meridian · Metal Group · Metton Reklama · Microsoft · NewCo Ferronikeli · NLB Prishtina · NPG - New Promotion Group · Pallaska&Associates · Patroni · Pestova · PharmaSwiss SA, Sh.p.k · Posta dhe Telekomunikaciouni i Kosoves · PR Solutions · PricewaterhouseCoopers · ProCredit Bank · Proton Cable L.L.C · Raiffeisen Bank · Recura Financials · Red Consulting LLC · RIMA Eng. · Rrota- Shtepia Botuese · SCAAK · Scampa · SCLR Partners · Semitronix Center · Sharr Beteiligungs GmbH · Sigal Uniqa Group Austria · Sigma Accounting and Consulting · Sole Kosova · Sport In · TEB · Technology Transfer Associates · Trepca · Triangle Branch Kosova · Trokit · UniProject · Universiteti Iliria · Universum College · USAID/BEEP - Business Enabling Environment Program in Kosovo · VEV Group · VIP Travel · Vitaminka · Viva Fresh ·Western Union · Xhad Studios · Universal Food 4

The Horizon - New Year’s Edition

Editorial

Dear readers, It is a pleasure to approach you and have the opportunity to share my point of view on various topics. In this issue of the Horizon, we will be focusing on the Foreign Direct Investments (FDI), while emphasizing the Kosovo potentials reflected on the recently published AmCham study, the so-called Case for Investing in Kosovo.

MA. Nora Siqeca Communications Manager AmCham Kosovo

Kosovo is blessed with attractive human and natural resources. From minerals, agricultural land, young and energetic labor force to a favorable geographical location; Kosovo is enriched with investment potentials. Having Euro as its official currency, Kosovo offers a stable macroeconomic environment with low inflation rates, while eliminating the exchange rate risk and monetary policy risk. Compared to the region, the simple tax system and low rates are other significant factors that make Kosovo an attractive place for investments. Currently, over 2000 foreign companies have successfully invested in Kosovo, which includes but is not limited to: Telekom Slovenia, Raiffeisen, Uniqa, Vienna Insurance Group, BNP Paribas, Nova Ljubljanska Banka, Bechtel, Enka, Cunico, Glava Steel, etc. It is worth mentioning that Kosovo has taken measures to protect foreign investors by adopting the Law on Foreign Investment, which guarantees that “foreign investors and their investments will be protected and treated with fairness and respect in strict accordance with the rule of law and widely accepted international standards and practice” (Law No. 02/L-33). It is evident that the global economic crisis of 2007 has extensively affected the level of foreign direct investments (FDI) in Kosovo. The FDI indicator marked a decrease of 20 percent in 2009. However, the situation appears to have recovered, the FDI reached the amount of 307.9 million Euros in 2010, which is an increase of 9.6 % compared to 2009 (Boga and Associates, Investment in Kosovo 2012, 21); and this, my beloved readers, reflects Kosovo’s successful efforts on promoting its investment potentials and increased measures on protecting FDI. In this issue of Horizon, you may read a detailed and comprehensive overview of the Kosovo’s investment promotion, which is reflected on the note from the Director of the Investment Promotion Agency in Kosovo. Few of many Successful Investment Stories of our members… the theoretical and practical lessons from a professor at the American Chamber of Commerce, as well as, the highlights of the AmCham study. I am very grateful to the contributing authors, who have enriched this issue of the Horizon with their remarkable articles. Finally, I would use this opportunity and inform you that AmCham has had a very successful year, with wide range of events and successfully concluding advocacy efforts. Specifically, I would emphasize the end-year Gala Dinner, a fund raising event that financed a project for Down Syndrome Kosova and established the AmCham Foundation. I sincerely express my gratitude to the AmCham members for continuously supporting us in our efforts. The Horizon - New Year’s Edition

Note from the Executive Director

The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

Note from the Executive Director

Dear members, As we mark the end of 2012, I would like to reflect on our joint achievements and challenges that we faced. Our family of businesses has grown with 45 new members, enabling us to speak with a louder and more powerful voice. With the support of its members, AmCham has further developed its policy and advocacy capacities, thus being able to address several issues in central and local levels of governance, such as fiscal policies, public procurement, labor law, protection of investors, improvement of the rule of law, plastic bags, foreign investments, and many more.

Arian Zeka Executive Director AmCham Kosovo

We take pride at being a member of the National Economic Development Council, and being able to represent the business community in a dignifying manner. We are happy that our requests for amendment of two laws have been approved by the Council and are in the process of being redrafted. Together with the national chamber of commerce we established the joint Industry Cluster, and managed to address for the first time the issues that the industry companies in Kosovo face. The issues will be further elaborated within the Industry Working Group which at our request was officially established in the December meeting of NEDC, and which will be chaired by the Ministry of Economic Development, but will also comprise of representatives from the Industry Cluster, other ministries and respective agencies. AmCham has continued to promote the services of the Alternative Dispute Resolution Center which in 2012 started dealing with the first cases of arbitration and mediation. We are also happy that we can provide the businesses with an efficient mechanism of resolving their disputes, thus helping our country improve its ranking in the World Bank Doing Business indicator on Enforcement of Contracts. Finally, in this yearâ&#x20AC;&#x2122;s Gala Charity Dinner we have officially established the AmCham Kosovo Charity Foundation, which thanks to the generous contribution of the businesses will be able to support charity projects throughout the year. This year we have successfully raised funds to help the Down Syndrome Kosova organization in purchasing a honeypackaging device. We remain committed to working even harder in 2013.

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H.E. Tracey Ann Jacobson Ambassador to the U.S. Embassy in Kosovo

U.S. Ambassador

am honored to appear in this edition of the Horizon Magazine and appreciate the generous support the American business community in Kosovo, especially the Chamber, has shown me and my Mission. After only four months in country, I can say I feel at home here. I have already seen that Kosovo has the potential to develop a robust, innovative, and ultimately self-sustaining private sector that will guide the country’s development and full integration into the Euro-Atlantic community of nations. The United States remains committed to helping Kosovo achieve these goals, and is working with the government and the private sector through innovative business and legal development programs to address key areas of economic growth. I will touch on these programs below. At the same time, we must be honest about the challenges on the horizon for Kosovo – challenges that both the government and the business community must tackle in tandem in order to fully realize Kosovo’s comparative advantages, and to reach its rightful place in Europe. Some of these challenges are systemic and structural; others, if unchecked, are more harmful to the health of a young democracy looking toward a European future. Among these challenges are corruption, uneven progress on privatization, limited access to energy and credit, and significant barriers to the establishment of small- and medium-sized enterprises (SMEs).

Corruption

Kosovo has made significant improvements in international indices, such as the recently-released World Bank Doing Business Report. In “Doing Business for 2013,” Kosovo was one of the most improved countries in the world in terms of bettering its business environment. But measuring necessary legal and regulatory reforms is only half the story. Kosovo continues to score poorly in corruptionrelated rankings, earning only 34 out of a possible 100 points in Transparency International’s 2012 Corruption Perceptions Index. Perceptions undoubtedly lag behind reality, but they remain an important obstacle to growth and investment. Allegations of official corruption – real or apparent – and frequent reports of irregularities in public procurement in Kosovo hurt citizen confidence and alarm investors keen on considering Kosovo as a home for new enterprise. This costs all citizens of Kosovo in terms of lost revenue, inappropriate use of resources, and missed opportunities to attract Foreign Direct Investment (FDI), which creates jobs.

Through the U.S. Department of Justice (DoJ), our Embassy works closely with the government to enhance the capacity to fight financial crime, and has assisted in developing modern criminal and criminal procedure codes. Other U.S. assistance partners – USAID, Department of Commerce’s Commercial Law Development Program, and the Department of Treasury’s Office of Technical Assistance – have helped to modernize Kosovo’s court system, and provide state-of-the-art training to Kosovo’s police, judges and prosecutors. We have also helped provide new and improved tools for transparency, such as the new online tax payment system, which was established with help from our Efficiency and Sustainable Tax Administration of Kosovo (ESTAK) program. Now is the time for the government to make the most of these tools and show, in word and deed, its commitment to the fight against corruption and lack of transparency.

The Government of Kosovo must do more to combat this phenomenon. Corruption exists in every country, at various levels. But it is the duty of law enforcement and prosecutors to ferret out instances of corruption, especially at the highest levels. Greater progress in this area would send an important signal about Kosovo’s readiness for investment and growth. The United States assists in these efforts.

The Power of Privatization To grow econo-

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mies, governments need to win the trust of their people for their economic agendas. Here in Kosovo, this requires a strategic conversation with citizens to discuss the advantages of a private sector-led economy and the benefits the private sector brings to all of the country’s diverse citizens. This conversation needs to start soon.

Addresses the Business Community

There are disconcerting signs regarding foreign investors in Kosovo. In the last year or so, several private or privatized companies, all of them major contributors to Kosovo’s Consolidated Budget and payrolls, have seen initial public and at times official support for their investment enterprises erode and, in some cases, wither away. If unchallenged, this apparent lack of support for private enterprise risks harming relations with existing investors, discouraging their further business exploration here, and frightening off new and potentially bigger investments, just at a time when Kosovo is gaining global name recognition. Kosovo is already challenged by an outdated image as a war-torn country. The government and its citizens need to work together in a “public partnership” to update the global perception of Kosovo, including as a country that is open and welcoming to businesses. A strategic communication plan must also include the benefits of privatization. Replacing the out-moded socialist economic model with free enterprise was the right decision for Kosovo to make, and the only path toward Euro-Atlantic integration. Changing a long-held business model can result in corresponding uncertainty for those dependent on the current model for their livelihoods. In many cases, the government is taking steps to alleviate these concerns, such as providing guaranteed employment for several years after the sale of an enterprise. Kosovo is home to many smart, savvy, and educated citizens who rightfully demand thorough information to make knowledgeable decisions. The government should do more to be clear about these processes, explain the benefits, and share its success stories more widely. When it comes to privatizations, the United States regularly provides support to the Kosovo ministries and agencies responsible for the transactions, regardless of whether a U.S. bidder is involved. Whether it is through offering strategic advisors or providing the government with best-in-business technical advisors, we have been there to help out. The airport concession – one of the hallmarks of Public Private Partnership in Kosovo – showed you can have a win-win situation for the government and the investor through a consignment model.

Reliable Energy We have also been closely involved in energy. In order to prosper, grow, and attract much-needed FDI, Kosovo must have sufficient, reliable energy. One recent study estimated losses to business in Kosovo caused by unreliable energy at roughly half a billion U.S. dollars per year. The privatization of Kosovo Electric Distribution and Supply (KEDS) is a key step in improving Kosovo’s energy reliability. The investor, Limak/Calik, has pledged to provide more than €300 million over the next 15 years, and provide technical know-how to upgrade the infrastructure and supply modern quality power. Many people I hear from, however, seem concerned about the bottom line: $26 million, without taking into consideration other factors that are just as important in the deal. It is important that the government do a better job communicating the benefits of the sale to the public. While the bottom line sale price may have been lower than the sale of other energy distribution networks in the region, there were many other positive factors that received less attention. For instance, the government did not give the investor any financial guarantees, sparing Kosovo’s tax payer from insuring the consortium should it run into financial difficulties. As importantly, the new owners have guaranteed employment to KEDS staff for the next three years.

The U.S. Government, largely through USAID, supports all aspects of Kosovo’s energy sector and its main stakeholders – the Ministry of Economic Development, Kosovo Electric Company (KEK), Kosovo Electricity Transmission System and Market Operator (KOSTT), and the Energy Regulatory Office (ERO). Our support has led to improvements in market design, privatization transaction support, introduction of best practices, and capacity building. Our project helped KEK Management and Supply divisions recapture technical and commercial losses. This has significantly improved the company’s revenue picture, providing capital to develop maintenance and operations at the mines, better environmental emissions (A5 and A3 in 2012, and A4 projected for 2013), and reduced load shedding.

The Horizon - New Year’s Edition

Lack of Access to Credit A flourishing econ-

omy also eliminates unnecessary barriers to credit. Kosovo’s citizens possess innate professional and business talents. Often the main obstacle standing between a good business idea and a successful startup is access to credit. Historically, this obstacle is even greater if you are a woman or a member of a minority group in Kosovo. I am extremely enthusiastic about the newly inaugurated Development Credit Authority (DCA), backed by the U.S. Government. This program, which will start issuing loans most likely this month, leverages €2.5 million in Government of Kosovo funds into nearly $26 million in available credit guarantees to Kosovo’s agricultural sector. A similar agriculture development program we began just one year ago with TEB Bank has already issued 124 loans totaling nearly $1 million. This amount will only increase in the coming years. But the DCA is just a start. Kosovo can provide more such innovative projects, on a smart basis with local bank partners, who also have an interest in generating more business. Additionally, Kosovo needs to make improvements to the rule of law, resulting in a transparent and prompt process for the enforcement of contracts. Once banks feel confident their rights will be enforced, they will be able to lower collateral requirements, which are presently an impediment for many potential borrowers.

Growth of SMEs The torch of private industry is

carried by Small and Medium Enterprises (SMEs). It is critical to Kosovo’s economic success for the government to take all necessary steps to let business achieve its maximum potential. We are doing our part to improve the business climate here. Our Business Enabling Environment Program (BEEP) has helped provide entrepreneurs with a clear, minimally-intrusive legal framework for doing business in Kosovo. Working in concert with the government, private sector and donor partners, the BEEP has promoted free market reforms to remove barriers to business creation and operation, freeing the individual from unnecessary restraints on economic activities. Through the Kosovo Private Enterprise Program (KPEP), we have provided more than 800 companies and associations across Kosovo with business expertise, training, internships, and help meeting internationally recognized standards. SMEs have also been important beneficiaries of USAID’s assistance, particularly those businesses engaged in agriculture, tourism, telecommunications and technology. USAID’s New Opportunities in Agriculture (NOA) project is similarly addressing the constraints faced by many small-scale farmers: lack of access to credit, applicable technology, and weak or immature linkages between producers and markets, foreign and domestic. In 2012, more than 500 new full-time jobs were created through assistance from NOA, while 857 farmers were engaged in the targeted markets. In total, 87 formal sales contracts were signed between producers, traders, supermarkets, and processors. U.S. assistance is also supporting Agricultural Extension Services to 21 municipalities; and we are helping to build up Kosovo’s technical capacity by training farmers and agro-scientists through our Department of Agriculture’s Cochran and Borlaug programs.

The Horizon - New Year’s Edition

Balance of Trade Trade is another issue on which I

would like to briefly touch. We in the United States know that a healthy economy is not only based on effort and ingenuity, but also on local production. We simply have to produce and sell more to grow. This is something that President Obama and Secretary Clinton have focused on intently through the National Export Initiative aimed at doubling U.S. exports in five years. This urgency applies in the Kosovo context as well. The current trade imbalance is a drain on Kosovo’s budget, is unsustainable in the long-term, and is a practical impediment to joining the European Union. The solution seems clear, though there needs to be political will to carry it out. Now is the time for the government to accelerate reforms in improving the business environment and adopt business-friendly legal and regulatory frameworks that enable the private sector to compete regionally. The government should also identify key growth areas and work with business associations to come up with creative ways to financially support these sectors. Ministries must work more closely together, seeing the big picture, and augmenting each other’s efforts. With these changes, I am confident that Kosovo’s intrinsic entrepreneurship will shine through and lift the country to higher levels of prosperity and economic security. The U.S. Government, through our USAID and Treasury Advisors, work together with the Government of Kosovo to sustain Kosovo’s macro-fiscal situation, to excellent results. Through their outstanding work with the Central Bank of Kosovo, our team has helped the government establish Kosovo’s domestic debt market. As a result, Kosovo issued a total of €74 million of Sovereign Debt Treasury Bills, which will help keep the budget liquid and attract foreign investors. During 2013, the Government of Kosovo will issue an additional €80 million of Treasury Bills. Our Treasury Advisors are also working with the government to develop important housing finance and insurance markets. Kosovo faces real challenges in growing its economy, and there is much for the government and the private sector to accomplish. However, I am confident that this dynamic young democracy will succeed. Kosovo can continue to count on strong U.S. support in reaching its goals.

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Valdrin Lluka Director Investment Promotion Agency Kosovo (IPAK)

Foreign Direct Investments in Kosovo

ncreasing investments and support to the development of the private sector represent the basis for a sustainable economic development of Kosovo. Lots of work has been done, but even more needs to be done to improve the investment climate in Kosovo and be able to substantially attract Foreign Investments in the level that will change the life of ordinary citizens. Attracting Foreign Investments requires not only the commitment of the Government, but also the commitment of the business community, municipalities and other important institutions. Kosovo is the right place with the right location to be used by foreign investors as a gateway for the European market: It has a good strategic position, is the lowest cost country in the Eurozone, has a very simple tax system with very low taxes, has the youngest population in Europe, has a very stable banking system, has EU compatible legislation, and most importantly, it provides free access to a market of 520 million customers (CEFTA and EU Markets). All these characteristics, ideally, would bring Kosovo ahead of other low cost countries, such as: China and Indonesia, where transportation cost have skyrocketed recently and customs tariffs are paid fully. It provides a perfect business case for a foreign company to bring raw material, finish it, and export back to the country of origin. But why that’s not the case? The Government of Kosovo has undertaken several reforms for the past 18 months with the aim to improve the investment climate in Kosovo. For the first time, an investor can register the business in 2 days, free of charge, and with zero chartered capital (for LLCs). There are dozens of licenses that have been abolished in the construction, tourism, and oil sectors. Many procedures have been simplified when importing or exporting, and the protection of foreign investors has been improved. These reforms have been reflected in the latest World Bank (WB) Doing Business Indicator that ranked Kosovo 26 places better, making it the most dynamic reformer in Southeast and Central Europe. The Investment Promotion Agency of Kosovo (IPAK) operates under the umbrella of the Ministry of Trade and Industry and is the only governmental institution responsible to attract and support Foreign Direct Investments (FDI) in Kosovo IPAK has organized many different activities with the aim to attract FDI. Such activities include the organization of 12 investment conferences abroad during 2012, participation in several IPA events, World Investment Conferences and 12

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Business Forums, and direct company visits. In addition, IPAK has used world-know media such as CNN, Economist, and FDI magazine to advertise Kosovo’s potentials. . At IPAK, we are trying to improve our services to foreign investors by introducing several tools to better serve our clients. Such tools include: CRM system to register all communications with a potential investor; Database Locations to register all projects in Kosovo that are looking for a potential foreign partner; and Suppliers Database to register all producers in Kosovo. In addition, we are working hard to produce sectorial studies for different industries so that potential investors can find reliable data when needed. So far we have covered industries like textile, metal processing, wood processing, decorative stones, automotive parts, mines and minerals, and renewable energy. Currently, we are working with the IFC on the Outsourcing Development Plan, which is a study that will compare Kosovo with other regional countries in terms of advantages to outsource to Kosovo. However, even though Kosovo performs better than some of the neighboring countries in terms of attracting FDI, challenges exist and the amount of FDI is not satisfactory for several reasons. • First, economic crisis that has hit Europe has impacted FDI in Kosovo as well. The peak of the year 2007, which has been FDI peak globally, has not been attained as of now and is not expected to be attained for another 2 to 3 years. • Second, some of the weaknesses remain and those are related to administrative barriers, unnecessary waiting times to get licenses and permits, and the perception of high corruption, which negatively impact the decision making process to invest in Kosovo. • Third, Kosovo has been challenged with the bad image that has been unfairly attached to it due to the past history, leaving us with the perception of an unstable, insecure country where investments are at risk. • Fourth, the lack of law enforcement and the inefficiency of the judicial system remain a serious barrier for foreign investors. • Finally and most importantly, non-fiscal, financial and non-financial incentives to stimulate foreign investors have been missing. While the competition to get FDI has never been so fierce, Kosovo has not been able to keep up with neighboring countries. As a result, some investors didn’t finalize their investment in Kosovo mainly because they were given attractive packages to invest elsewhere.

Increasing investment and supporting the development of the private sector is difficult without an increased government attention. Many countries that have focused on FDI, and committed to it, have had positive growth. There are many advantages of FDI: It generates employment, significantly improves the trade balance by increasing directly exports and decreasing imports, transfers knowledge of world market to local people, improves the quality of exports from raw materials to finalized products, and directly increases the GDP. The Government of Kosovo has increased the focus for the development of the private sector and things are slowly moving positively. The improvement in WB doing business indicator, the introduction of incentives for farmers by the Ministry of Agriculture, the elimination of customs in a number of raw materials and machineries, the enforcement of protection measures by

the Ministry of Trade and Industry, and the establishment of the National Economic Council are all actions that came from the commitment of the Government of Kosovo to improve the business environment. We are working hard to improve the image of Kosovo by advertising in different media, being present in different events around the world, making different presentations on normality of Kosovo as a stable country. Those that are convinced by our presentations do visit Kosovo and in almost 100% of the cases, their expectations of high crime and corruption on Kosovo are faced with a beautiful country, friendly people and friendly business environment. “Good News is no news” therefore foreigners get to know only the dark news of Kosovo and that’s what is damaging us.

Investment Stories

The management of Banka Kombetare Tregtare (BKT) Kosova is happy with the investments in Kosova. It reached a net after tax profit in the third year of operations in Kosova, which is a rare case in global financial arena. BKT Kosova is using its synergy with parent bank located in Albania and the good trade relations between Kosova – Abania and Kosova - Turkey. “The management of BKT Kosova considers the country as a business friendly, well regulated financial sector and environment with a good future growth potential in line with the potential of the overall economy. The banking sector is strong and healthy when it is compared with the regional countries and has a higher future growth potential.” The bank is strongly committed to supporting the development of the local economy, including assisting young entrepreneurs. BKT Kosova aims to continue to be the leader in introducing new products and technologies in the Kosovo market, and to serve as a catalyst for economic development. BKT plays a key role in enhancing Kosovo’s attractions for foreign investors. Banka Kombetare Tregtare (BKT) has a long history of providing world-class banking services in the region. It was established with the merger of two big banks in Albania in 1993 - namely the Albanian Commercial Bank and the National Bank of Albania whose roots go back to 1924. Banka Kombetare Tregtare was fully privatised in 2000 and, following a significant restructuring, achieved growth rates well

beyond the average. BKT now has 60 branches in Albania and 23 branches in Kosova. BKT Kosova offers a wide range of universal banking services to individuals, government and corporate clients, including loans, EMV-compliant debit and credit cards, ATMs, e-banking, qualified international banking and various treasury products. BKT Kosova increased its paid-up capital from an initial €5 million to € 12 Million in 2012, and its branch network has grown from one branch in Prishtina to 23 branches covering all Kosova BKT Kosova is the newest bank in the country and 2009 could be considered its first full year of operations with a full branch network. The expansion of the branch network has been accompanied by a dramatic increase in market share in both lending and deposits. BKT is a leader in Kosova in its product range, technologies and rates. In fact, BKT Kosova is now widely regarded as the country’s best bank for product innovation, personal and educational loans, mortgages, credit cards and also project finance. Furthermore, the bank benefits from the strong liquidity support of its parent bank in Albania. Thanks to its solid financial foundations, excellent track record and high-quality services, BKT Kosovo is well on the way to reaching its goal of boosting its market share up to 15% over the next five years.

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Why invest in Kosovo? One of the most frequent questions for Coca-Cola Hellenic is why we decided to start investing in Kosovo, and what has our experience been since. After ten very dynamic years we can say Kosovo offers many benefits for investment, and has regional advantages that Coca-Cola Hellenic recognizes and appreciates. The market keeps growing year by year, showing high potential, and our company has developed long-term plans for continuing and expanding business operations in this area. Also, Coca-Cola Hellenic has over the years become an active member of the Kosovo business community, and has repeatedly been recognized as one of the most diligent and best taxpayers. We thus support the Kosovo economy, and through various projects, we give back to the community and contribute to issues relevant for Kosovo society. Recently, our company organized a humanitarian tournament, together with Handikos, to benefit programs and rights related to persons with disabilities. We traditionally support the SOS village, and efforts geared at helping the most vulnerable

As a young country Kosovo will generate many enquiries from potential foreign investors before they decide to make their investment. “Why should we invest in Kosovo?” is one of the key questions and I will try to answer this question with the presentation of the successful story of Raiffeisen Bank International following its investment in Kosovo almost 10 years ago. Raiffeisen Bank International came to Kosovo at the end of 2002 by purchasing most of the shares of the American Bank of Kosovo and completed the purchase and rebranding of the bank in June 2003. Since then, Raiffeisen Bank Kosovo has achieved excellent results in all business functions and customer segments. In 2011, after 9 years of growth and development the Bank’s profit was €12,4 million. Compared to the results of other countries in the region, we can consider this a great result and shows that we have had almost a decade of excellent returns on our investment. I would also like to mention here that in the first years of our operation in Kosovo, Raiffeisen Bank International invested the profit from its Kosovo operations back into the Bank in line with its normal practice of long-term commitment to the regions in which it invests. It enabled the Bank to be the best capitalised Bank in Kosovo which in turn helped us to develop our wide range of banking products and services in line with the needs of our customers in Kosovo.

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groups, especially women and children. Our support is also focused on Kosovo’s youth, through projects such as the Coca-Cola Business School for talented students, and others encouraging youth employment and participation. “Kosovo has the youngest population in Europe, and thus a very vibrant work-force, which has been one of the most interesting points for Coca-Cola Hellenic in terms of investing and growing in Kosovo. We find that the people in Kosovo are reliable, hardworking and enthusiastic. They are dynamic and openminded consumers, who respond with interest to our diverse beverage portfolio.” Coca-Cola Hellenic is thus pleased to have made the decision to invest in Kosovo and is looking forward to the future expansion on this market and further collaboration with the Kosovo community.

Our main strategy was, and continues to be, the support for local corporate and retail customers. Raiffeisen Bank is the second largest bank in Kosovo but has the biggest market share of the corporate market. We have been very active with our loan development plans over many years and this was identified very early as the greatest need for the growth and development of businesses in Kosovo. In addition, the bank played the function of bridgehead by supporting the internationalisation of these businesses and enabled them to become very competitive in and outside of Kosovo. During our time in Kosovo we have also actively supported foreign companies entering Kosovo by providing them with the full range of banking services and advice. We were also an active player in the privatisation process and continue to be committed to this initiative with support for both local and international investors. Most of the international companies that privatised State Owned Enterprises in Kosovo are served by our bank. Having said all that, I do not want to claim that we did not face any challenges in Kosovo during almost 10 years of operating in the country. It is understandable that Kosovo as a developing country faced many challenges in establishing the institutions that ensure the country’s consistent, competitive and reliable functioning for the long term. The high level of unemployment was inherited from the period before the conflict and it has been very difficult to do something that would reduce it within a short period of time.

However, with the commitment of Kosovo people and institutions to work hard, Kosovo managed a great achievement, particularly in recent years when the real growth of GDP has consistently been one of the best in the region at around 3 to 4%. In this difficult environment where the countries of the region are facing great challenges the Kosovo macroeconomic environment can be considered a great success. With all the challenges that Kosovo was facing and continues to face as a young country, we as an international bank are always available to discuss problems and give advice to any institution or business looking for the best possible ways to overcome any obstacle and continue their further development. Another area of great potential that Kosovo has is the young population, together with the commitment, positive at-

Core Group had known for many years that it would embark on investment in Kosovo and our appetite for this grew over the last few years especially as political and economic stability was and is still the key fundamental for Kosovo’s future success. In 2010, Llamkos was mentioned as a potential target acquisition for Core Group especially as the trading environment changed with which Coresteel (part of the Core Group) was traditionally involved in. Our experience with trading steel in and out of various locations around the world especially to the automotive industry in North America naturally directed us towards becoming a producer. Llamkos in Kosovo provided that opportunity in the groups vision. At the end of 2010 and during the first six months of 2011, Core Group, it’s lawyers and bankers carried out substantial due diligence in order to be sure that the investment opportunity we were about to embark upon would allow us to grow not only in Kosovo but regionally and as one of the largest investors in Kosovo. In August 2011 the privatisation of Llamkos was completed and Core Group became the proud owners of Llamkos GalvaSteel ensuring re-employment of the 440 former staff as well as a commitment to invest €25m within the first 2 years. The site and all of the equipment including spare parts were left perfectly intact from when it was closed in 2008. Most of this credit is due to the passion and pride of the workforce and the people of Vushtrri have in this sizeable operation in Kosovo. Kosovo has considerable potential in terms of ‘the place to invest’. To name but a few, sound legal framework, youngest population in Europe, development of education as well as work ethic including entrepreneurial talent, low taxes and wages, strategically located for several countries in the region, strongest GDP compared to numerous others in Europe, an abundance of natural resources and potential for various other investment opportunities recognised by the government and agencies promoting Kosovo. All of these provided significant comfort

titude and willingness to move things forward. I will take one example of our IT team that works in our Bank here in Kosovo. As a result of their high level of professionalism, they achieved the ISO/IEC 20000-1:2005 certification which makes us the first bank in South Eastern Europe to acquire such international recognition. It shows the great potential of the young in Kosovo and is an indication of the capacity Kosovo has to compete with other countries in the region. Finally, I would like to say that overall Kosovo offers a great opportunity for investors and Raiffeisen Bank Kosovo is a great example of a successful investment and we strongly believe that although we are an international bank, we shall continue to act locally, support the economy and grow together with our customers.

in line with regular country due diligence and future business plans that had already been prepared for Core Groups’ other interests in Kosovo. Compared to its neighbouring countries, Kosovo is undoubtedly one of the most logical and sensible places to invest and Core Group believe the acquisition of Llamkos GalvaSteel to be the solid base from which we can build in the future. Our future plans will focus on three core areas. Further investment in Llamkos GalvaSteel and its current galvanising production line as well as further enhancing our profile for finished products from our on-site service centre capable of producing ventilation systems, pipes, tubes, profiles, corrugated sheets, containers and pretty anything that can be produced with galvanised steel. We are in the final stages of discussions with 2 short-listed suppliers of steel mill manufacturers and within 2012 we will sign an agreement for the supply of equipment allowing us to produce construction debars solely produced from recycled scrap. We aim to source the majority of scrap from within Kosovo that allows us to be self-sufficient in country as well as emphasising the recycling capability this country has. Other areas of focus for the Group are in the mining sector and the remediation of mining waste sites and cleaning up the environmental issues surrounds these deposits. These projects will last many years and will enhance Core Groups’ profile in Kosovo and the region whilst generating a significant income by way of taxes as well as increasing the number of employment opportunities. Our Group believes it only takes one visit to Kosovo to recognise the potential this country has to offer and would highly recommend the right investment here. This is a country in its infancy and with the right guidance and continued support there is no doubt that Kosovo will be the success story that all of us especially internationals have grown so close to. The Horizon - New Year’s Edition

Venera Demukaj American University in Kosovo

Foreign Direct Investments: Some Theoretical and Practical Issues with Reference to Kosova As most of the developing countries face huge trade deficits on their current account balances, net inflows of foreign finance represent an important component for their growth and development. The growth of foreign direct investments (FDI) in the developing world has been very rapid in recent decades. Yet, there is an ongoing controversy about the benefits and costs of foreign private investments. On the benefits side, FDI are seen as a way of filling the resource gaps recurring in host countries. The foreign firms help fill the gap of domestic resources, that is, savings and investments, to reach the targeted level of growth. If the foreign firms can generate export earnings, they will also contribute to the filling of the gap between foreign exchange requirements and those derived from exports. Further, host governments can raise more tax revenues by taxing operations and profits of the foreign direct enter16

The Horizon - New Year’s Edition

prises. Besides financial resources and new manufacturing plants, foreign private firms bring managerial and technological skills to the host countries. In this way, foreign direct companies contribute to national output, create new jobs, pay taxes to host governments and help creation of a more modernized society. As foreign private companies gravitate toward most profitable investment opportunities, they tend to create negative effects for the host societies through practices of transfer pricing and repatriation of profits. The activities of the foreign companies, might lead also to crowding-out of the local/indigenous industries, as well as to creation of the environmental damages. While the debate about the real impact of FDI on recipients’ economies has not been settled yet, it is important to identify some best practices that have made the FDI pivotal to some countries’

growth and development. As Dirk te Velde shows (2001), in some cases, countries opted for more quality rather than more quantity of FDI. In this context, instead of trying to attract more FDI in terms of quantity, Kosova should focus on the structure and quality of these investments. By doing so, FDI should be seen as an instrument of Kosova’s broad development goal, whereby the policies toward attracting more FDI represent important components of the development strategy. In the post-war period, Kosova’s economy has been heavily reliant on foreign aid and remittances. As the foreign aid flows have dropped off and there are concerns about long-term sustainability of remittances, Kosova is in immediate need of foreign direct investments. Kosova does have some areas for attracting serious foreign investors as its natural and human resources represent a potential source of growth and development.

According to IMF, as of end 2010, Kosova has attracted 2,620 million dollars of foreign investment, mainly in the financial and telecommunication sector. During this time, there have not been any substantial changes in the amount and the structure of the attracted FDI flows. Kosovo has a long haul in attracting and upgrading foreign investments. To reach this goal, the government should work harder by combining and implementing the right policies which would not only attract more FDI but will also generate more benefits for the society as a whole. The government might target directly the foreign private firms through policies such as provision of tax incentives, tariff, or export subsidies. Alternatively, government can also design policies that intend to support private sector development in general, with an effect on multinational companies, too. These policies include designing and funding of programs that improve the business environment, upgrade the skills of the workforce, and en-

courage technology transfer and its adoption. These more indirect policies require more efforts on the side of government, but should be more favored in the case of Kosova, as they could not be manipulated easily by interest groups. In addition, Rodriguez-Claire (2010) suggests that these policies do not interfere with free market principles and country’s bilateral and multilateral trade agreements. In the context of these softer industrial policies, Kosova’s government should engage more in building of a better image of the country and promotion of potential resources through a more active and innovative involvement of the investment promotion agency. Another important channel is better liaising of foreign investors with local firms and hence strengthening linkages between them. In this respect, the Kosovan Diaspora should be seen as a potential source of liaising between multinational and local companies as they can

capitalize on the knowledge gained and the contacts created in the developed countries. Further, in terms of a conducive business environment, Kosova government should work harder on addressing issues related to contract enforcement and reduce costly and timeconsuming bureaucratic procedures. Government should also focus on upgrading the quality of investments made. This can be reached through the policies that are related to the transfer, diffusion, and generation of technology in multinational firms and have been implemented successfully by some other countries, like Ireland and Singapore. These policies should focus, among other, on areas such as offering incentives for local research and development, strengthening of the capabilities of the local firms, establishing new research institutions and encouraging technology improvements between local firms and multinational firms

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Booz Allen Hamilton – Kosovo Pashko Vasa no.22 Pristina, Kosovo 10000 Tel: +381 38 609 406 Fax: +381 38 609 407 www.boozallen.com

The Horizon - New Year’s Edition

Visar Hapqiu Policy and Project Officer AmCham Kosovo

Case for Investing in Kosovo: Why invest in Kosovo? When Kosovo adopted Euro as its official currency in 2002, policy makers in Kosovo decided on sacrificing some monetary policy tools in favor of the stability which euro brings, along with lower transaction costs for foreign investments and exports/imports. This has increased the importance and the necessity of FDI and Diaspora Investments in the country, as the main source of money for the country. In this regard, AmCham Kosovo has applauded the efforts of the Government in trying to lure more foreign investments in the country. To date, unfortunately, these efforts resulted in a limited success. This shows that the business environment in Kosovo is by no means a finished product, and many challenges remain for the government to improve the conditions for businesses and to provide them with an environment where they can flourish, and consequently appeal to foreign investors. By publishing “Case for Investing in Kosovo” thanks to the support of the Ministry of Diaspora and the Investment Promotion Agency of Kosovo, AmCham wanted to give its contribution in pro-

moting Kosovo’s potentials and business opportunities to foreign investors. Thus, making use of the data provided by the Tax Administration of Kosovo and the Kosovo Pensions Savings Trust, we analyzed the performance of the private sector in Kosovo over the period of the last three years. In the period from 2009 to 2011, the average annual turnover of companies operating in Kosovo increased by roughly 29 percent, while inflation rates have been stable over the course of this period fluctuating in the region of 2.5 - 3.5 percent. Tax payments as a percentage of annual turnover remained relatively unchanged over the period, and the number of people employed by the private sector increased by 14.4%, serving as a proof that the economic growth in Kosovo was mainly led by the private sector. In addition, 34 companies managed to exceed the turnover limit of 5 million euro from 2009 to 2011, resulting in 179 companies that have recorded a turnover of 5 million euro or higher

1,400,000.00

Average Annual Turnover of Registered Taxpayers Kosovo also marked a significant success in the Doing Business Report for 2013, improving its ranking by 28 positions (from the 126th to the 98th place), culminating in the improvement of the investor protection indicator by 76 places. Combining these data with the investment potentials

The Horizon - New Year’s Edition

1,200,000.00 1,219,598

1,000,000.00 800,000.00 600,000.00

946,733

1,044,926

400,000.00 200,000.00 0.00

2009

2010

2011

that Kosovo offers in various sectors such as agriculture and horticulture, Business Process Outsourcing, energy and mining, tourism etc., should serve as an encouragement for foreign investors to choose Kosovo as the destination for their investments in the Western Balkans.

Public Procurement in Kosovo: Challenges of the Business Community MAG. Ardi Shita, LL.M. Secretary General Alternative Dispute Resolution Center Public procurement has proven to be a dedicated follower of political fashion not only in Kosovo but throughout the world. Historically, we see consistent attempts to link public procurement with the government policy in areas as diverse as economic development policies, reducing unemployment, improving employment conditions, support for businesses, local development and decreasing the level of unemployment, to mention only a few. The aim of the Public Procurement Project of the American Chamber of Commerce in Kosovo was to conduct a proper analysis of the public procurement practices which are implemented in Kosovo in terms of transparency and accountability of procuring bodies. Having in mind the recent developments in the country in the spirit of the European integration process, AmCham also prepared a comparative study on the harmonization of Kosovo Law on Public Procurement with the EU Acquis Communautaire. On December 18, AmCham organized a round table on Public Procurement in Kosovo in order to discuss the results of the report “Public Procurement in Kosovo: Challenges of the Business Community” which was the final product of the project sponsored by the Kosovo Foundation for Open Society SOROS. The purpose of the roundtable was to discuss with the business community and the key actors involved in the development of public procurement in Kosovo, the findings of the report, its conclusions and recommendations. Representatives of Procurement Review Body, Central Procurement Agency and Public Procurement Regulatory Commission shared their views on the issues being faced by the business community. The report has been drafted based on primary and secondary research conducted by the project team. A survey was distributed to roughly 250 businesses of different sizes pertaining to diverse industries. This list contained both members and nonmember companies of AmCham. Out of these businesses, 80 of them responded to the survey, results of which have been used to draw conclusions and recommendations. In addition, procurement experts from the Public Procurement Regulatory Commission and from the Public Review Body were interviewed to find out their opinion regarding one of the most important topics for the private sector in Kosovo. The survey brought up a very concerning fact: 92.5 percent of respondents claimed to have encountered problems in procurement activities. Results from the survey grouped the most common problems faced by the business community as follows: 1.Over-reliance on the lowest price criterion 2. Technical specifications often drafted to favor specific companies 3. Arbitrary cancellation of tenders

4.Prevalence of corruption 5.Unnecessary document requirements 6.Problems with the law itself/weak rule of law Discriminatory practices Another disturbing finding of the study was that 52 percent of respondents who have found irregularities in public procurement did not appeal to the Procurement Review Body, fearing that the contracting authorities will avenge them on other occasions in the procurement agency / ministry. Having in mind that a large number of businesses base their existence predominantly (and sometimes solely) on public procurement projects, making improvements in this field a necessity. Thus, in order for the situation in this sector to improve, changes in legislation should be followed by a better implementation of these laws, by all involved parties, starting from contracting authorities and businesses to the procurement review body. The following recommendations emerged after analyzing the data, after interviewing field experts and conclusion of the round-table, with the purpose of serving to stakeholders in improving the current situation: 1. Contracting authorities should carefully consider their options when selecting a contract award criterion 2. Technical specifications should necessarily be drafted by experts of the field: 3. Contracting authorities should make sure that there are enough funds to cover for the expenses of the project, before announcing the tender 4. Contracting authorities should avoid the practice of requiring extensive documentation of applying for tenders 5. E-procurement platform should be established 6. Corruption should be fought systematically 7. Proper implementation of the legal framework is necessary for improving the results and transparency of public procurement in Kosovo 8. Time limit for submission of complaint on technical specifications should be introduced 9. Clear definition of arithmetic errors and its percentage, as it may leave room for interpretation: 10. The fee for complaints made to the Procurement Review Body should be decreased As it is very important to push these recommendations forward, the American Chamber of Commerce in Kosovo committees itself to work with the National Economic Development Council and other Government stakeholders in improving the public procurement law and practices in Kosovo – finally resulting in an overall improvement of the doing business environment in the country. The Horizon - New Year’s Edition

Focus on Patron Member 20

The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

Focus on Patron Member The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

MA. Nora Siqeca Communications Manager

Generalized System of Preferences What is GSP? The U.S. Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world by providing preferential duty-free treatment to the U.S. for over 3,500 products from 127 designated beneficiary countries (BDCs) and territories, including 44 least-developed beneficiary developing countries (LDBDCs). The GSP program was instituted on January 1, 1976, and authorized under the Trade Act of 1974. Current Congressional authorization of the GSP program will expire July 31, 2013. To be eligible for duty-free treatment pursuant to GSP, an import must meet the following requirements

1. It must be included in the list of GSP-eligible articles; 2. It must be imported directly from a BDC; 3. The BDC must be eligible for GSP treatment for that article; 4. The article must be the growth, product, or manufacture of a BDC and must meet the valueadded requirements; 5. The exporter/importer must request duty-free treatment under GSP by placing the appropriate GSP Special Program Indicator (SPI) (A, A+ or A*) before the HTSUS number that identified the imported article on the appropriate shipping documents.

The importer is responsible for claiming the preference benefit by using the GSP’s SPI code “A” or “A+”, as a prefix, before the HTSUS tariff-line number when completing the shipment entry documentation. If GSP is not claimed on the entry summary, there are other ways to claim it. One is to file a Post Entry Amendment with Customs at least 20 working days prior to liquidation of the entry. Products/Aricles eligible for GSP treatment are identified in the current edition of the Harmonized Tariff Schedule of the United States (HTSUS), which is published by the U.S. International Trade Commission (USITC). The complete HTSUS can be downloaded from http://www.usitc.gov/tata/hts. It is the President who determines which countries and which products are eligible for GSP benefits, based on the recommendations of the U.S. Trade Representative.

The rules-of-origin requirements. For an imported article to be GSP-eligible, it must be the growth, product, or manufacture of a BDC, and the sum of the cost or value of materials produced in the Beneficiary Developing Country (BDC) plus the direct costs of processing must equal at least 35 percent of the appraised value of the article at the time of entry into the United States. Customs and Border Protection is charged with determining whether an article meets the GSP rules of origin.

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The Product must be imported directly. Generally, the imported article must either be shipped directly from the BDC to the United States without passing through the territory of any other country or, if a shipment from a BDC passes through the territory of any other country en route to the United States, the imported articles must not enter the commerce of the other country.

List of GSP Eligible Countries The following independent countries are GSP-eligible beneficiary developing countries (BDCs):

Afghanistan

Egypt

Madagascar

Seychelles

Albania

Eritrea

Malawi

Sierra Leone

Algeria

Ethiopia

Maldives

Solomon Islands

Angola

Fiji

Mali

Somalia

Azerbaijan

Gabon

Mauritania

South Africa

Armenia

Gambia

Mauritius

South Sudan

Bangladesh

Georgia

Moldova

Sri Lanka

Belize

Ghana

Mongolia

Suriname

Benin

Grenada

Montenegro

Swaziland

Bhutan

Guinea

Mozambique

Tanzania

Bolivia

Guinea-Bissau

Namibia

Thailand

Bosnia and Herzegovina

Guyana

Nepal

Timor-Leste

Botswana

Haiti

Niger

Togo

Brazil

India

Nigeria

Tonga

Burkina Faso

Indonesia

Pakistan

Tunisia

Burundi

Iraq

Papua New Guinea

Turkey

Cambodia

Jamaica

Paraguay

Tuvalu

Cameroon

Jordan

Philippines

Uganda

Cape Verde

Kazakhstan

Russia

Ukraine

Central African Republic

Kenya

Rwanda

Uruguay

Chad

Kiribati

St. Kitts and Nevis

Uzbekistan

Comoros

Kosovo

Saint Lucia

Vanuatu

Congo (Brazzaville)

Kyrgyzstan

Venezuela

Congo (Kinshasa)

Lebanon

Saint Vincent and the Grenadines

Côte d’Ivoire

Lesotho

Samoa

Zambia

Djibouti

Liberia

Sao Tomé and Principe

Dominica

Former Yugoslav Republic of Macedonia

Serbia

Ecuador

Senegal

Republic of Yemen Zimbabwe

The GSP program is administered by the Office of the U.S. Trade Representative (USTR). Public inquiries about the program may be directed to the GSP Program Office at USTR, using the following contact information: E-Mail: gsp@ustr.eop.gov

Telephone: (202) 395-6971

Fax: (202) 395-9674

The Horizon - New Year’s Edition

Policy an legislative highlights Draft Law on Custom-exempted Goods and Goods with Zero Percent Customs Duties During August, the Ministry of Finance prepared the draft law for goods exempted from customs duties, a list of products used as raw material by producers in Kosovo. This list has been sent for comments to the business community and business associations, including the American Chamber of Commerce. After consultations with member companies pertaining to the production sector, AmCham prepared its comments and recommendations for including additional products in this list with the aim of further supporting the growth of the production sector. To emphasize the importance that such a law poses for the manufacturing sector in the country, the American Chamber of Commerce in cooperation with local business associations and other businesses held a joint conference with the participation of representatives from the Ministry of Finance. The Conference in hand intended to make the position of the business community towards the draft law being defective known and to require for the list in hand to include all the raw materials which cannot be found or produced in Kosovo in order to avoid a selective selection of these products. AmCham’s Initiatives for making changes to the Law on Labor In the first meeting of the National Economic Development Council, AmCham presented the document on Labor Law, namely on Maternity Leave provisions, which currently is burden on businesses and is not in line with the overall level of economic development in the country. The alternative that is supported by AmCham is to reduce the length of maternity leave from 12 months to 9 months, 3 out of which to be paid by businesses, 3 by the Government, and 3 months of unpaid leave. Government officials confirmed their willingness to commence the proposed amendments to the law, because according to them, the em-ployment of women among Kosovo businesses has already decreased.

The Horizon - New Year’s Edition

AmCham’s Initiatives for making changes to the Law on Official Holidays As part of its advocacy efforts to improve the position of businesses in the society and overall doing business environment in the country, AmCham also presented a position paper on the Law on Official Holidays of the Republic of Kosovo. The number of official holidays during which employees are granted a paid day off is too high and that the list includes some holidays which are not celebrated in other countries (i.e. Europe Day). AmCham through its position paper recommended to reduce the number of holidays and to remove the transferability of paid days off in cases when holidays fall on weekends. The recommendations were received well by members of the National Economic Development Council, who stressed that the Law will be reviewed and the recommended changes will be included. Decision 05/91 for exempting biodegradable plastic bags from excise tax Based on the requests and recommendations of businesses, on September 12, the Government the issued a decision for exempting biodegradable plastic bags from the excise tax of 3 euro per kg (Decision 07/75, dated May 23, 2012). With the new Decision, in order to differentiate biodegradable plastic bags - which cause no damages to the environment - from other plastic bags, the sub-categorization of these plastic bags has been done in the Integrated Tariff of Kosovo. As a result, biodegradable plastic bags are no longer subject to the excise tax of 3 euro per kilogram. Law No. 04/L-121 on Consumer Protection Issued in November, the Law on Consumer Protection regulates and preserves the basic rights of consumers when buying goods, services, and other forms in the free market, as well as, defines the responsibilities of the retailers, manufacturers, and suppliers. The Law in hand applies to the regulation of the relations between consumers on the one hand and the producers, vendors, suppliers and service provides on the other, in order to protect consumers from the unfair practices of the goods and services market of the Republic of Kosovo.

Draft Law on Tourism The Law on Tourism defines the establishment and principles of an institutional framework and the regulations for the development of tourism, tourism promotion as well as the establishment and the development of the tourist services standards. This Draft law regulates the relations between public institutions and private entities, natural and legal representatives, national or foreign, engaged in tourism activities, and also define the rights and the responsibilities of the entities engaged in tourism activities in accordance with the standards and regulations defined by the law in hand. This Law defines the duties and responsibilities of the respective tourism related units as well as the establishment of the Categorization system, a system under which tourism related units are categorized according to their level of accommodation. Draft law on Economic Areas The draft Law on Economic Areas intends to attract foreign investments through the development and the promotion of economical areas. This draft law also intends to develop and promote industrial activities and goods for export, to facilitate the entry of goods and capital, to make the application of the newest technology possible, to create new jobs and to benefit from investment opportunities, external financing and trade exchange. It regulates the establishment, management and the supervision of the economic zones in Kosovo. Draft Law on Foreign Investments The Kosovo’s Assembly, during October, issued the foreign investments bill, a bill dedicated in regulating, protecting, promoting and encouraging foreign investments in the country, providing the investors in hand with fundamental rights and assurances, guaranteeing them on the safety of their investments, with their investments being protected and treated fairly, in strict accordance with the international laws and standard practices. This law guarantees fair and equal treatment of the foreign investors and their investments in the country. Also, this law avoids and prevents economical discrimination that foreign investors may encounter in comparison with the local businesses.

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Drawing inspiration from the TITAN Group’s code of conduct, Sharrcem, as a member, works diligently on the implementation of internal and external projects and processes to improve its corporate responsibility and social footprint. In this regard most of the company’s efforts are directed towards environmental protection, the creation of a safety culture and a healthier society. Using these as pillars for our CSR policy, Sharrcem is proud that it has completed numerous projects that show its commitment towards continuous CSR engagement.

STREET LIGHTS IN HAN I ELEZIT n the spirit of safety and society Sharrcem has identified a need of the community next to the plant for propper illumination of the motorway, in accordance with modern community standards. A one kilomoter section of the motorway leading to the Macedonia border was poorly illuminated, and therefore, hazardous for all, especially pupils walking home from school in the evenings. Consequently, Sharrcem, decided to spearhead a project to rectify this issue and as a result installed brand new lighting for the entire length of the road. Since completed, the lighting installed, has provided a much safer environment for all, including general travelers that go back and forth to the border.

EMIN DURAKU SCHOOL YARD Sharrcem also has in place a program dedicated to improvements in the urban areas in different cities in Kosovo. This August Sharrcem concentrated their efforts to give a hand to the primary school “Emin Duraku”, in Kaçanik, to renovate its yard. Besides supporting the project financially and materially Sharrcem also wanted to be directly involved. For over three weeks, six company employees worked tirelessly defying the sweltering August heat to prepare the yard before the beginning of the school year.

ENVIRONMENTAL SUSTAINABILITY Striving towards Environmental Sustainability Sharrcem has put into operation its major “Green” investment, in value of over 5 million EUR. The two massive bagged filters, weighing in with a combined weight of over 400 tons, have proven the efficiency of a modern technology able to decrease the level of gas and dust emissions much lower than the legal requirements. Even within the first month of its implementation the local community has openly appreciated the noticeably cleaner air. Furthermore Sharrcem is one of the first companies in Kosovo which has fulfilled the strict requirements for obtaining the Integrated Pollution Prevention Control (IPCC) license. For 2013 Sharrcem is preparing the implementation of the Environmental Management System, ISO 14001, with which it will fulfill its efforts to sustainably keep its environmental footprint in line with the highest standards of modern societies.

The Horizon - New Year’s Edition

TRAFFIC SAFETY PROGRAM The Kosovo CSR Network is pleased to announce the 2nd term of its “Traffic Safety Program”. The Traffic Safety Program began last year with 4 schools and now involves 7 schools throughout Kosovo. The idea of the project is to engage retired school teachers to help children in these primary schools to cross the streets during rush hours. The attitudes and behaviors toward traffic safety are a reflection of the value placed on it within the community. School crossing guards play an important role in the lives of children who walk to school as they help children cross safely at the intersection with heavy traffic flow. The Network hopes that through the implementation of the program involving crossing guards at primary schools people will change their attitudes toward safety and consequently improve their behavior on the road. Working together with the local police in Prishtina and Peja the Network identified the locations where adult school crossing guards are needed. The Network then hired retirees to help the children. The idea of retirees was to promote active ageing. The Network established crossing procedures and equipped the guards with crossing signs, reflective vests, and raincoats. This enhanced visibility allows motorists and pedestrians to see the guard and the signals the guard’s presence more clearly. The program had great success in the first year, the schools associated with this program include in Prishtina: Shkolla Emin Duraku, Shkolla Asim Vokshi, Shkolla Ismail Qemajl, Shkolla Hilmi Rakovica, Shkolla Xhemajl Mustafa; in Gjakova: Shkolla Zekerija Rexha; in Deçan: Shkolla Lidhja Prizrenit; in Pejë: Shkolla Xhemajl Kada. The Kosovo CSR Network is supported by 16 members and is a member of CSR Europe. The Network invites new members to join and help in creating a better community.

The Horizon - New Year’s Edition

Green Kosovo Another project initiated by the CSR Network along with Meridian Express is the “Green Kosovo” project. The aim of the project is to increase awareness of the benefits of using reusable bags. Plastic and paper bags that are distributed at shopping outlets worldwide are creating all sorts of environmental problems. Pollution. Dead animals. Overfilled landfills. Oil consumption. The list goes on. The cost of properly recycling plastic bags is more than the production costs. Kosovo CSR Network and Meridian believe that using reusable eco-friendly bags will lessen the demand for plastic bags, in theory reducing pollution. The idea is that customers will bring their own bags with them every time they shop. The bags are in circulation and can be found at all Meridian Express markets. Meridian Express welcomes everyone to their markets and free reusable bag.

Fast Facts on Plastic Bags •

Over 1 trillion plastic bags are used every year worldwide.

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About 1 million plastic bags are used every minute.

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A single plastic bag can take up to 1,000 years to degrade.

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More than 3.5 million tons of plastic bags, sacks and wraps were discarded in 2008.

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Plastic bags are the second-most common type of ocean refuse, after cigarette butts.

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Plastic bags remain toxic even after they break down.

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Every square mile of ocean has about 46,000 pieces of plastic floating in it.

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The average family accumulates 60 plastic bags in only four trips to the grocery store.

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Ten percent of the plastic produced every year worldwide ends up in the ocean. 70% of which finds its way to the ocean floor, where it will likely never degrade. (UN, 2006)

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When plastics break down, they don’t biodegrade; they photodegrade. This means the materials break down to smaller fragments which readily soak up toxins. They then contaminate soil, waterways, and animals upon digestion.

The Horizon - New Year’s Edition

GALA NIGHT

PLATINUM SPONSORS

AmCham Kosovo organized its traditional Annual Charity Gala Dinner, as a means to collect funds for charity purposes. The main purpose was raising funds for the organization Down Syndrome Kosova, which represents people affected by the syndrome Down. The funds raised will be used to purchase the equipment for packing honey, which will make Down Syndrome Kosovo a self- sustainable organization. Amcham also announced the establishment of the American Chamber Charity Foundation, whose purpose will be to support the ongoing charitable projects representing

The Horizon - New Year’s Edition

the most vulnerable groups of society that do not have the necessary support. The top donors to this event were: Meridian Corporation, Dukagjini Group, Sharrcem, and others include: Banka Kombëtare Tregtare, Banka TEB, Ferronikeli, Bechtel Enka, Devolli Corporation, International Prishtina Airport, Boga & Associates, Pallaska & Associates, Banka për Biznes, Llamkos GalvaSteel, SCAAK, American University of Kosovo, Radiotelevisioni 21, KOSTT, Marigona Residence, NLB Prishtina, ProCredit Bank, Z Mobile, Baker Tilly Kosova, IPKO Foundation, Pestova dhe Kreatoda.

The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

EVENTS Roundtable on Competition Law

AmCham Kosovo together with the Kosovo Competition Authority (KCA), on August 13, 2012 organized a round table for discussing the Law on Protecting the Competition. The aim of this roundtable was to inform the business community on their rights in terms of competition, as well as, the raise awareness on the role of the Kosovo Competi-tion Authority. The conference was welcomed by the business community. During the meeting, the participants concluded that: implementing the law on protecting competition brings obligations to businesses, and there is lack of awareness in the business community with regards to their rights and obligations arising for this law. During the discussions, the business community was more interested on the price setting, past experiences of the KCA, and the hierarchy of the fining process.

Roundtable on Draft Law on Custom-Exempted Goods and Goods with Zero Percent Customs Duties

On August 16, 2012, AmCham Kosovo organized a roundtable on the Draft Law on Custom-Exempted Goods and Goods with Zero Percent Customs Duties. The aim of the meeting was to discuss the provisions on the Draft Law with the business community including economic chambers in Kosovo and business representatives. A joint conclusion among businesses present at the meeting was the request for a comprehensive list of custom-exempted goods for raw materials that are not produced in Kosovo. The private sector represents an important pillar of the economic development of Kosovo; therefore, the fiscal policies should support this sector, which is one of the greatest contributor of the Kosovo’s budget and employment in the country. The meeting was chaired by the Executive Director of Am-Cham, Arian Zeka, and present in this meeting was the political advisor of Ministry of Finances, Menderez Ibra, the head of Kosovo Customs, Naim Huruglica, the director of the Kosovo Chamber of Commerce, Safet Gerxhaliu, the director of the British Chamber of Commerce in Kosovo, Ray Power, the director of STIKK, Vjollca Cavolli, the manager of Business Alliance of Kosovo, Lumnije Ajdini and representatives of production companies and other sectors.

U.S. Ambassador, H.E Tracey Ann Jacobson Recognized as Honorary M in the agriculture and mining sectors. Toward the end of the visit Mr. Meyer, accompanied by AmCham, visited Pestova, the poTtato production and processing company.

Press Conference on the Importance of Foreign Direct Investments

On September 6, 2012, during a press conference, organized by the tree leading business associations in Kosovo, being the American Chamber of Commerce in Kosovo, Kosovo Chamber of Commerce, and Alliance of Kosovar Businesses, AmCham emphasized the importance of the private sector development and foreign investments in Kosovo. The business associations called upon the authorities to ensure a fair, transparent process, and to use this process as a benchmark that Kosovo is open to investors, foreign and domestic, and send a positive message that we are a welcoming environment for doing business. For detailed information, you download the document by clicking the link below: http://www.amchamksv.org/images/userfiles/files/7618_english-positionpaperontheprivatesectorandfdi.pdf

Strengthening the Cooperation with U.S. Embassy in Prishtina • Kosovo

On September 14, 2012 the U.S. Ambassador in Prishtina H.E. Tracey Ann Jacobson, welcomed to a meeting the leaders of the AmCham Kosovo, respectively the President of the Board, Erolld Belegu, and the Executive Director, Arian Zeka. While discussing the recent economic developments and Kosovo Government policies, both parties agreed that the Government shall be more focused on economic issues, while

The Visit of Iowa Delegation

The representative of Iowa delegation, Mr. Eugene Meyer, during the first week of September visited the facilities of the AmCham Kosovo, where he met the AmCham President of the Board, Erolld Belegu, and the Executive Director, Arian Zeka. The aim of the meeting was to harmonize the common interests and establishment of long term connections for businesses of both countries. Meanwhile, during the luncheon, Mr. Meyer accompanied by the General Timorthy Orr, met the AmCham Board and business members to discuss the potentials and projects for concrete actions, while focusing

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Press Conference on the Establishment of Heavy Industry Committee

Member of AmCham BoD

Kosovo Your Investment Destination

creating a better environment for doing business, as a condition for a sustainable economic development. During the meeting, they discussed about the continuation of the close cooperation between the American Chamber of Commerce in Kosovo and the U.S. Embassy in Pristina.

Investment Conference in Washington

The Investment Conference in Washington DC, was organized on September 25, 2012 by the AmCham Kosovo in cooperation with Investment Promotion Agency of Kosovo, Ministry of Trade and Industry, Ministry of Economic Development, Kosovo’s Embassy in Washington DC and US Chamber of Commerce in Washington. The purpose of of the conference was to promote Kosovo’s investment opportunities and potentials. At the conference, where U.S. businesses and interested stakeholders were present, the companies had the opportunity to learn about the progress that Kosovo has marked in the doing business environment, as well as, upcoming privatization and public-private partnership projects, which might be of interest for the foreign investors. Present at the conference were also representatives of major U.S. and global institutions, including trade and commercial officials of the U.S. State Department, representatives of Overseas Private Investment Corporation (OPIC), International Financial Corporation, World Bank. During the conference, the Executive Director of AmCham Kosovo, Arian Zeka presented the latest study Case for Investing in Kosovo, the main finding of which shows that despite the global financial crisis Kosovo’s private sector companies have grown for 29 percent in terms of annual turnover.

Roundtable Discussions on Labor Law

A roundtable discussion was organized by the AmCham Kosovo, on October 10, 2012 with the aim of discussing the Law on Labor, its implementation, and the role of the Labor Inspectorate. This event enabled the business community to express their concerns regarding the law itself, as well as, the work of the Labor Inspectorate. A joint conclusion of the business community was the need to change certain provisions of the existing laws, while emphasizing the importance of involving all relevant stakeholders in the drafting process of the new law.

The Visit of Senator Beall

Senator Daryl Beall accompanied by the representatives of the U.S. Embassy in Prishtina, on October 12, visited the headquarter of AmCham in Kosovo, where he met with the President of the AmCham Board of Governors, Erolld Belegu, Executive Director, Arian Zeka, and the Secretary General of the ADR Center, Ardi Shita. During the meeting, the aim of which was to harmonize the common interests, Senator Beall was more informed on the business environment and the latest economic developments in Kosovo. Most importantly, the participants had the opportunity to discuss the establishment of long term connections of businesses between two countries, where Senator Beall expressed his readiness to promote the Kosovo businesses to the community he represents.

H.E. Ambassador Jacobson Recognized as Honorary Member of Board of Governors

On October 19, 2012 Board of Governors of the AmCham Kosovo honored the US Ambassador in Kosovo, H.E. Tracey Ann Jacobson, with Honorary Membership of the AmCham Board of Governors. During the luncheon, AmCham Board of Governors discussed the challenges that Kosovo business community is currently facing with, while emphasizing the im¬portance of further improvement of the communication be¬tween Government, business community, and civil society.

Press Conference on the Establishment of the Heavy Industry Committee

Through a joint press conference organized on November 10, 2012, the American Chamber of Commerce (AmCham) and the Kosovo Chamber of Commerce (KCC) announced the establishment of the joint committee on heavy industry. The committee will serve as a tool to identify the problems that the Kosovo heavy industry is currently facing and prepare recommendation for overcoming these problems. The Committee includes the largest Kosovo enterprises from the heavy industry sector. During the conference Mr. Gërxhaliu, the head of KCC, and Mr. Zeka, the executive director at the AmCham, announced that the heavy industry problems along with the recommendations for solving these problems will be presented to the National Council for Economic Development.

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Breakfast for Executives with TAK Director

The Breakfast for Executives is an exclusive event of AmCham, dedicated for the executive chiefs/managing directors of the member companies. The idea of this event is to serve as a forum for meeting and discussing with the officials of institutions and various state agencies. Hotel Nartel, an AmCham member, hosted the first Breakfast for Executives on November 20th, 2012, where the special guest of this first meeting was the general director of the Tax Administration of Kosovo, Mr. Behxhet Haliti and his co-workers. During the meeting with the executive directors of the AmCham member companies, the general director of the TAK, Mr. Haliti emphasized that due to the cooperation with the business organizations such as American Chamber of Commerce, and through the establishment of a system which facilitates the declaration and payment of taxes, TAK managed to increase the revenue budget collection.

Conference on Financial Reporting Transparency and Cost of Capital

The consulting company Baker Tilly Kosovo, in cooperation with the Amcham Kosovo, invited businesses, banks, and public institutions, on November 21, 2012, to discuss on the situation of financial transparency in Kosovo, and its effects on interest rates and the confidence of foreign investors. The participating entities of the meeting called on the Government of Kosovo to enhance the capacities of the Financial Reporting Council and the Business Registration Agency in bestowing the necessary infrastructure to support foreign direct investments. The relevant institutions should make more investments in creating more resources to improve and provide the Council in hand with the opportunity of fulfilling its duty contemplated by the law on financial and accounting reporting in order of increasing the number of foreign investments and economical prosperity of the country.

Media Conference Addressing the Concerns of the Business Community

AmCham Kosovo jointly with Kosovo Chamber of Commerce, on November 30, 2012, through media conference reiterated their call for a more inclusive fiscal package, a package which would stimulate further development of the manufacturing sector of the country. The leaders of the two largest business organizations in the country

Labor Law Discussions 32

The Horizon - New Year’s Edition

Financial Reporting Transparency and Cost of Capital Mr. Safet Gërxhaliu, president of KCC, and Arian Zeka, executive director of AmCham demanded that “the list of products which will be exempted from custom duties through the bill in hand should be more inclusive rather than selective”, especially taking into account the increasingly low exports of the country and the significant increase of imports. It is stressed the fact that the admission of the aforementioned products and other products used as raw material which cannot be manufactured in Kosovo in the list of products which will get exempted from custom duties will give the needed impetus to the manufacturing sector in the country.

Promoting Kosovo Invetment Potentials

l Conference Meeting with EmberClear Representatives

The president of the AmCham Board of Directors (BoD), Erolld Belegu, together with the Executive Director, Arian Zeka, on December 12, 2012, met the representatives of Energetic American-Canadian Company “EmberClear” which is planning to invest in Kosovo. Despite all of the difficulties in the business environment, Kosovo remains an attractive place for foreign investors. AmCham considers these kinds of projects to be important for a sustainable economic development, a lower rate of unemployment, and improvement of the citizens’ well-being.

Discussions on New Fiscal Package

U.S. Ambassador’s Reception

On the occasion of the newly appointed U.S. Ambassador in Prishtina, H.E. Tracey Ann Jacobson, the U.S. Embassy in cooperation with the American Chamber of Commerce organized a reception. The event, which was hosted at the Ambassador’s residence, was profiled for a select audience of AmCham members and Kosovo decision-makers. Businesses used the opportunity to network with each other and establish connections with the decision makers of the Kosovo’s Government and U.S. representatives in Kosovo.

Discussions on the Law for Protecting the Competition The Horizon - New Year’s Edition

Breakfast for Executives with the director of Kosovo Customs

The chief executives of AmCham business members, on Dec. 13, 2012, had breakfast with the director of Kosovo Customs, Mr. Naim Huruglica, to discuss about their issues related to the customs. Heads of AmCham considered this meeting as a continuance of partnership with the purpose of further improvement of dialog which is of interest of both parties. The general director of Kosovo Customs, Mr. Huruglica, talked to the executive directors of AmCham members about the importance of the launched process of Integrated Border Management (IBM) and its impact on smuggling reduction and budget income increase. Based on the raised concerns from business community, more specifically from AmCham members, Mr. Huruglica explained the implementation of the new informative technology system (ASYCUDA). He referred to it as the ‘revolutionary system’ because of opportunities that it offers, adding that neither the Customs officials nor the importing companies themselves are using these opportunities as much as they should.

Roundtable on Public Procurement in Kosovo

Breakfast with the Kosovo Customs Director, Mr. Naim Huruglica

AmCham Kosovo, on December 18th, organized a roundtable on Public Procurement in Kosovo to discuss the results of the AmCham report on “Public Procurement in Kosovo: Challenges of the Business Community” and the prospects for the improving the doing business through the reforms in the field of public procurement. The study, which was supported by the Kosovo Foundation for Open Society (KFOS), is the first of its kind representing the views and opinions of the business community against the practices and public procurement law in Kosovo. A disturbing finding of the study is that 52 percent of respondents who have found irregularities in public procurement do not appeal to the Procurement Review Body (PRB), fearing that the contracting authorities will avenge them on other occasions in the procurement agency/ ministry. The participants at the table had the chance to discuss the study findings, while a joint conclusion was that the field of public procurement in Kosovo has room for many improvements, and that positive changes in laws and regulations need to follow up with real improvements on the field.

Taxpayer of the Year

To encourage and promote the regular payment of taxes, the American Chamber of Commerce, on Dec. 21, 2012, paid tribute to the most proficient taxpayers in Kosovo for 2011, in three categories. The companies in hand were awarded based on the official data on the taxpayers. In this way the American Chamber of Commerce continued its tradition of giving recognition and certificates of gratitude to the most proficient contributors of the \ budget. “Elnor”, “Albi Mc”, “Grant Thornton L.L.C”, F.B.I “TREPÇA” and IMSRefractory” were the ones who were awarded as the best taxpayers in the category of companies with a yearly turnover of 100,0001,000,000 euro. The 1,000,000-2,000,000 yearly turnover category awarded companies such as “Arena Engineering”, “Banja e Kllokit”, “Deloitte Kosova”, “Vila Gërmia” and “Newco Trofta” as the most prominent taxpayers of year. On the other hand the over 2,000,000 euro yearly turnover category awarded companies such as “CocaCola HBC”, “Fortesa”, “SHARRCEM”, “Studio Moderna Kosovë” and “ASSECO SEE”.y/ ministry. The participants at the table had the chance to discuss the study findings, while a joint conclusion was that the field of public procurement in Kosovo has room for many improvements, and that positive changes in laws and regulations need to follow up with real improvements on the field. 34

The Horizon - New Year’s Edition

Public Procurement Conference

Senator Beall Visits AmCham

New Members

ASK Foods was founded as a result of the acquisition of Kravarica Valley which is situated on the outskirts of Gjilan, Kosovo. The acquisition was done under the Kosovo Privatization of old Yugoslav Social Enterprises scheme. In 2010, Namoni brothers developed a factory processing fruit and vegetables. The company currently employs 157 employees, which reaches over 400 during peak season. The factory complies with modern European standards which enables Ask Foods to expand its production capacity to fulfill the market requirements. ASK Foods is certified with ISO 9001:2008 and HACCP food safety. Ask uses modern food processing technology in line with traditional food recipes to get the best quality products. It produces a range of all natural products with no additives, preservatives, artificial colours, aromas or flavors.

Operating since 1998, HOLLTECH, is a rapidly growing company specialized in producing door openers, door components and full set of sectional doors and rolling doors.They have installed their products in different countries, like: Kosova, Albania, Macedonia and Montenegro. With more than 10 years’ experience and their enthusiastic, no-nonsense work team, they aim to be your long term, reliable supplier with solid product quality and right price!

Universal Food produces wheat flour, with the capacity of 500 tons/day and processes by computer-controlled full automation system. Universal food employs around 260 employees. The factory was privatized in 2007, which was successfully acquired by Aksoy Group. Aksoy Group has created business opportunities in various sectors in different countries and added value to their economies. Group’s aim is to be a innovative company that creates solutions by using constantly developing technologies in order to use the world’s resources efficiently.As a family-owned enterprise, Aksoy Group with its active and dynamic teamwork, raises its quality in different sectors such as flour industry, construction and overseas business using modern technologies and meets expectations on time and seamlessly.

Universum University College is a higher education institution in Kosovo aspiring to be the first research-intensive institution in the region. It offers studies in Business, Economics, Social Studies and Education. It is one of the few unconditionally accredited higher education institutions in Kosova from the Kosovar Agency for Accreditation, with the evaluation conducted by international experts. Its strategic planning, curriculum and quality assurance system were highly evaluated by international experts. It is renowned for its academic background, research facilities, and international opportunities offered to its students and academic staff.

Jens Automotive House is the leading company in Kosovo for importing, retailing and distribution of automotive parts and synthetic oils with the best combination of quality, good stocks, customer service and competitive pricing available. The company offers a wide variety and renowned European and world manufacturers of automotive parts and components such as: Swag, Kamoka, Mobil 1, Filtron, Bilstein, Sachs, Pagid, Luk, Perburg, Nissens, SKF, Beru,Bosch, Gates etc. Jens Automotive House is representative of Kamoka brand for Kosovo, Albania, Macedonia and Montenegro. It makes the delivery of its products and orders to the clients throughout Kosovo at the same day.

MarketingMIX advertising agency was established with a concept of a full service agency for integrated communication in which idea and effectiveness play deciding role. The staff is combined of experience with their marketing abilities. They offer a winning blend of consultancy and creativity, resulting in fully managed, highly successful marketing campaigns. They have a huge breadth of knowledge and expertise and they bring creativity and innovation together to deliver results.

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New Members

Butterfly Consulting LLC is a Kosovobased company specialized in provision of business consulting services and other business facilitation services. In addition, Butterfly Consulting LLC gathers teams of professionals in business consulting, marketing, research, training and professional development, and web and graphic design, who are devoted to nothing but the highest standards of quality with an aim of shaping, promoting, improving and facilitating your business. The company offers the following services: business and management consultancy, market research and public polling, professional trainings, advertising, secretarial and translation services, management services of holding companies, marketing research and analysis in various sectors of economy and areas of business, review of various spheres of the current legislation.

HAXHIJAHA -Bodrumi i Vjetër, was established in 1953 as the Agricultural Cooperative named “Kosovo Vera” Orahovac. Its main activity was the production of wines and alcoholic beverages. With its privatization in 2006, the company continued as the private property of new under Bodrumi which the company operates within the NPT “Haxhijaha” Orahovac. It produces wines with geographical genesis of high quality in accordance with European standards such as Cabernet Sauvignon, Merlot, Pinot Noir, Vranç by varieties of red, and white varieties of Chardonnay, Rhine Riesling, Riesling Italian and production of alcoholic beverages: Brandy Kosovo, Darda Extra, and Darda, always taking into account the growth trend of pallets with other products. 36

The Horizon - New Year’s Edition

Kreatoda was established in 2012 and its main activities include multimedia, marketing, and branding, Creative Chamber / Web design & development, web Application, print design, corporate identity. Kreatoda is a creative work space based in Prishtina. Multimedia services, realized in a perfect way, studied to make visible the creativity and functionality needed for the business campaigns. It has a creative, communicative team, which makes the collaboration between Kreatoda and the clients to result with a finalization of high level projects and works. The arc of their services offers you a lot of choices, enough to fulfil all needs of the clients.

Scmpa, established in 2007, is a leading manufacturer of Printed Biodegradable shopping bags, Garbage bags & other various plastic packaging, the company has a wide system of services for customers: in-house production, mobile door to door sale service Printed Biodegradable shopping bags Garbage bags & other various plastic packaging

The construction company, Global Construction, founded by a manager with many years of experience in the field of business management, a decade ago, respectively in 2000, has started with the construction of three residential buildings in Albania, with a construction of 21,000 m2. While in Kosovo we have built three buildings about 16,000 m2, and planned two others in about 10,000 m2. Global Construction L.L.C. is licensed as enterprise specialized in the construction field and its accompanying activities. The company builds on the outskirts of the town avoiding the center of the city with its flaws, traffic overload, over population, and its filthiness

ADAS Counsel is an agency created in 2001 offering services mainly on intellectual property matters and related aspects. General the services covered all the administrative and legal aspects of the IP but also the enforcement of the companies rights against unfair competition fraud or infringement at all stages. The office remains the office managing the greatest patents rights in Kosovo generally in pharmaceutics and biochemistry for our clients in USA, Europe and Asia. The office represents the local and regional clients in the field of Intellectual property also in regional countries. Agency provides also a wide assistance services to Inventors, and technology transfer, Know-How for Kosovo entrepreneurs and Inventors as well as educative programs to business and Universities. ADAS Counsel Kosovo is proud member of International Trademark Association (INTA).

New Members

Individual LINK Software, established in 1991 in Prizren, is one of the first Kosovar companies offering software developed by national experts. The company is composed of a team of experts dedicated for developing contemporary qualitative software. Preliminarily, Link developed Ds50, an accounting /financial software, complied with the Republic of Kosovo legislation. This product includes the modules of managerial accounting (including cash and bank flow), financial accounting, production, personal incomes, and other modules. Apart from Ds50, Link Software has developed products in the Medical, Human Resources., Hotel, Restaurant, Café, sectors.

Iron Consulting’s core activity is corporate affairs. In short, we deliver results for corporations that need, or want, to influence opinion. Whether it’s the opinion of one important person, a legislative or administrative body, or an entire country, our professionals have the experience to get the job done. We work closely with each client to understand its unique needs and goals, then build a tailored roadmap for achieving these ends. We offer a full suite of services for influencing opinion, and maintain multi-directional channels of communication between clients and their target public.

Stephen Leeds Stephen Leeds works for ECORYS, which is a leading European and research and consultancy company, and offers Technical Assistance (TA) to improve Public Financial Management (PFM) capacities in certain budget organizations on the Republic of Kosovo. He serves as a PFM Adviser to the Ministry of Agriculture, Forestry and Rural Development. He has been a member of AmChams in other countries.

M&Sillosi, which was established in 2005 and currently employing over 90 employees, is the largest producer of high quality wheat flour and bran in the region. Their daily production capacity reaches 600 tons/day, producing under already acquired ISO and HACCP standards. In addition to the domestic sales, as the leading wheat flour producer in the region, M&Sillosi is an international provider currently exporting to several countries.

Fundway LLC is a private investment fund established in 2010 and conducts business through the region. The Fundway team includes the founders of one of the leading telecommunications companies in the country. The telecommunications company attracted one of the largest Foreign Direct Investment in Kosovo. Fundway’s Business Strategy is further to contribute value and continue identifying, funding and developing business opportunities in the region. Our Economic Interest is driven by great importance to social and economic development. Till today Fundway has managed its portfolio comprising projects in Funding, Management, Media, Financial Services, Real Estate development, Energy Efficiency, Mining and Telecommunication opportunities in the region.

We Are the Business Voice for Growth! The Horizon - New Year’s Edition

SIGAL Insurance offers 10%

discount to all AmCham Members for Personal Health Insurance packages. For more information please visit: http://www.uniqagroup.com/uniqagroup/cms/ eng/group/group_companies/kosovo.jsp

Hotel Victory offers 20%

discount to all AmCham members and their clients/visitors in the hotel services, including accommodation, dinning, usage of conference halls, and other services.

How to Join this Program? Members interested to join the M2M program and offer their products/services at a special discount to AmCham Members have to inform the AmCham office in writing. A discount provider has to indicate the product or service discount rate. How to obtain discount? All members, regardless if they provide discounts as part of Program, can obtain discounts. Members will be able to find information on discounts in the M2M section of our web site. How is M2M advertised? The Program will be advertised internally through AmCham communications channels: a M2M event. AmCham web site, e-mail notification, and AmCham magazine.

MEMBER NEWS AND ACHIEVEMENTS

Baker Tilly Kosovo Our First Ten Years During first ten years we have enjoyed working and providing services to our highly esteemed clients, and every success of our client was a big milestone achievement for firm, too. As a member firm of one the greatest network worldwide, we will benefit from the international expertise in many areas, which we will try to deploy during our service to our clients in the future in Kosovo. Founded in 2002, the firm offers services ranging from accounting, audit, tax and business consultancy to organizations on a national and international level. Firm’s team consists of experienced professionals, including tax experts, licensed and certified auditors, and a team of supporting professionals with business administration, accounting and finance degrees. Commitment to offer high quality services is achieved by the personalized approach we provide to each client. We use our best professional resources available to provide our clients with timely and affordable professional services. About Baker Tilly International Through our membership of Baker Tilly International, the world’s 8th largest accountancy and business advisory network, we are able to provide premier advisory services worldwide, drawing on internationally recognised industry and service line experts in 125 countries. Each of the network’s 149 member firms is independent and autonomous; however we have chosen to work together, resulting in strong professional relationships and efficient collaboration. Baker Tilly International member firms demonstrate a high professional standard, as well as a strong commitment to the network’s core values of integrity, leadership, transparency and ethics. Each member firm offers outstanding personal service combined with the expertise, strength and resources of a truly global network to support you as you grow regionally and globally.

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EVEN A MODEST DONATION CONTRIBUTES TO A CHANGE

AmCham

Charity Foundation With aim of supporting charitable projects representing the most vulnerable groups of society

AmCham Kosovo established a Foundation to support charitable projects. A recent charity initiative involved supplying Down Syndrome Kosova with a honey packaging device, which enables this organization to become self-sustainable. For more information on future projects and events, please contact the foundation coordinator at

038 248 012

or visit AmCham web page at:

www.amchamksv.org

So JOIN US, by donating to: TEB Bank Prishtina ACCOUNT:

2011000062898817

American Chamber of Commerce in Kosovo The Horizon - New Yearâ&#x20AC;&#x2122;s Edition

The Horizon - New Yearâ&#x20AC;&#x2122;s Edition