Bosnia and herzegovina Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bosnia and herzegovina, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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BiH is among the least competitive economies in Southeast Europe and government officials have made little progress to enact necessary reforms to strengthen the business environment. 

BiH lacks a single economic space. Overlapping regulations and jurisdictions and complex legal and regulatory frameworks negatively affect companies trying to do business across the entire country. BiH’s investment climate is marred by corruption, non-transparent business procedures, insufficient protection of property rights, and a weak judicial system. The process to start a business or obtain a permit is lengthy and arduous. The public procurement system lacks openness and transparency, and tenders are often subject to political interference or manipulation. Government-owned companies crowd out the public sector and benefit from preferential treatment. Dispute resolution is also challenging as the judicial system moves slowly, often does not adhere to existing deadlines, and provides no recourse if the company in question re-registers under a different name. Judges, especially in the Federation where there is no dedicated commercial court, often lack experience with technical commercial matters. Arbitration and mediation of commercial disputes are infrequently used.

State property, and its disposition, remains a hotly contested political, legal, and economic issue. The BiH Constitutional Court has ruled that entities and municipalities are not competent to dispose of state property in any way, including title, leasehold, concession, repurposing, or temporary use. The lack of a comprehensive solution to the issue of state property, which covers an estimated 70 to 80 percent of BiH territory, creates legal ambiguities that further complicate the business environment, disrupt the economy, and hinder investment. Investors should conduct adequate due diligence. This includes avoiding exposure to individuals and entities under U.S. sanctions and clarifying land ownership rights to avoid becoming entangled in a potential illegal and/or unconstitutional arrangement. Potential investors are encouraged to read the legal reviews and statements of the High Representative for BiH.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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