The Import Tariffs of Bosnia and Herzegovina are harmonized each year with the Combined Nomenclature of EU and legislative regulations. Goods imported into Bosnia and Herzegovina and placed in free circulation are subject to payment of value added tax (VAT) at the rate of 17 percent while certain groups of products (e.g. coffee, cigarettes, oil, oil derivatives etc.) are subject to payment of specific taxes (excise) in accordance with the Law on Excise of BiH. The rates of specific taxes have an ad valorem and/or specific rates form.