(Last updated: 06 Nov 2008)
 

Business opportunities

Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the left side of this page).

In conjunction with the market profiles, the Opportunities Online portal may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, identified by our overseas network to Australian businesses.

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business tips

In business, Macedonian attitudes are broadly similar to Australians and Europeans.

English is widely spoken in business circles. Surnames are usual until you are invited to use first names.

Dress is conservative, so the rule is to wear suit to meetings.

Visits are generally difficult to arrange during the peak summer holiday months of July and August. Many companies also shut down over New Year and Christmas period. Your visit should be planned in advanced as senior executives expect notice of an unsolicited meeting. Macedonian business people will want a clear understanding of what is to be dealt with in any meeting. Take a short CV, a company profile and product literature with you.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

The Former Yugoslav Republic of Macedonia (FYROM) has become a World Trade Organization member. Customs regulations generally comply with European Union and most tariff duties are ad valorem (per cent). Two-column tariff based on the Harmonised System.

Non-tariff barriers

Import restrictions

Import licensing is no longer required except for a small number of goods on the negative list. These goods are subject to both licensing and global quotas. Importers are usually required to be registered with the Ministry of Economy, where they can apply and obtain import licences.

Product certification, labelling and packaging

Labelling and marking

Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified.

The following items must appear on the two vertical sides of each outer container:

• the sales contract number
• the consignee's instruction number
• the import licence number
• gross and net weights

Special labelling regulations apply for the retail sale of food and some other products. All labels must bear directions for use in Macedonian. 

Special certificates

Plants and their products require phytosanitary certification issued by the approved authority in the country of origin; in Australia this is usually the Australian Quarantine and Inspection Service, the Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

A veterinary certificate, issued by the approved authority in the country of origin is required for imports of live animals (specific criteria apply as the veterinary agreement is not yet signed), meat and meat products.

Packaging

No general requirements. Any specific requirements and instructions will be stipulated in the contract.

Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions during transit and delivery.

If hay or straw is used as a packing material a phytosanitary certificate, issued by the appropriate authority in the country of origin, must accompany the shipment papers (see also 'Special certificates').

Methods of quoting and payment

Quotes should be in Western currencies (Pound Sterling, US dollars, EURO’s and Australian dollars) FOB, CIF or C&F (Incoterms 2000), European ports, as requested by the importing organisation.

Method of payment is usually stipulated in the contract.

Documentary requirements

Commercial invoice

No prescribed form, and two copies are required by customs. The invoice must also be signed by the shipper and show the following:

• The names and addresses of the shipper and consignee
• The country of origin and purchase of goods
• The number of packages and a description of the outer packing
• The quantity and value of the goods
• A precise description of the goods as per the Harmonised System

Bill of lading

No specific requirements. To Order bills acceptable.

Packing list

Not obligatory but facilitates clearance.

Certificate of origin

Required where there may be doubt as to origin or when stipulated in the contract. Certification by an approved authority (see 'Guidelines', section 2.3) is prescribed.

Public health requirements

Specific plant and animal health regulations apply (see also 'Special certificates').

Medicinal products, cosmetics, foodstuffs and agricultural machines and equipment may require testing and approval by the Macedonian authorities before import is allowed.

Specific requirements will be stipulated in the contract.

Insurance

Usually arranged by the importer through state insurance organisations. However, the importer's advice should be sought.

Weights and measures

The metric system.

Setting up in Macedonia

The Agency for Foreign Investments and the Chamber of Commerce can provide support to foreign companies to establish their businesses in Macedonia.

Agency for Foreign Investment
Director: Viktor Mizo
Nikola Vapcarov 7, 1000 Skopje
Tel. +389 2 3117 564
Email: contact@macinvest.org.mk

Economic Chamber of Macedonia
Contact: Vlatko Stojanovski
Directorate for Matters of Foreign Economic Cooperation and Promotion
Email: vlatko@ic.mchamber.org.mk
Tel: +389 2 3244 004
Fax: +389 2 3244 088

Taxation

The taxation system is uniform across the FYROM, only small differences may occur in local taxes. Generally, foreign companies and individuals pay the same taxes as Macedonian legal or natural persons. The exceptions to this rule are businesses where taxation is regulated by international treaties concluded by Macedonia (Agreements on Avoidance of Double Taxation).

All companies intending to operate a business or undertake business activity are given a taxpayer identification number (NIP) after registration with the appropriate local tax office. In order to calculate tax, the taxpayers are obliged by law to maintain accounts and calculate tax independently. A one per cent customs clearance fee is levied on all imports.

With the recent economic reforms, Macedonia has created the most attractive tax package in Europe. 

Currently, the corporate income tax is 10 per cent, personal income tax is 10 per cent,  the Value Added Tax (VAT) is 18 per cent general rate and five per cent preferential tax rate and property tax is 0.1-0.2 per cent.

The main taxes in FYROM are:

• Value Added Tax
• Corporate income tax
• Personal income tax
• Excise tax - levied on certain consumer goods, including cigarette, coffee, alcohol, perfume, motor cars and jewellery
• Stamp duty

Intellectual property protection

During the past couple of years the intellectual property rights in Macedonia are being protected much more by the authority for protection of intellectual property and by the Customs Administration.

Banking and finance

The banking system in Macedonia is supervised by the National Bank of Macedonia (NBM), which is the country’s central Bank. NBM is responsible for the issuing of money and controlling the monetary and credit policy.

• Macedonia has made significant progress in recent years on the compatibility of central bank legislation with European Union standards.
• There are 23 banks in Macedonia that are privately owned or operate as commercial companies.
• The financial sector is developing fast, in particular through the increased presence of strategic investors from abroad in large Macedonian institutions.
• A number of foreign banks are establishing banking operations in Macedonia, either through local subsidiaries or fully operating branch offices.

The largest bank, Stopanska Bank was bought by the Greek National Bank, and there are other banks with majority of international bank share ownership.