Business Customs
Business customs in BiH remain an amalgam of old socialist-style habits and newly acquired business practices. However, the business culture is changing. Over the past decade the business community has benefited from the presence of many international agencies, foreign investors, and technical assistance programs. This change, most obvious in the larger business and industrial centers, has introduced new management, language, IT skills, as well as Western-style business practices. Most of today’s managers are fluent in English and are completely computer literate.
The exchange of business cards is a common practice. While most business meetings take place in a formal setting, it is not unusual to discuss business over coffee or lunch. An invitation to dinner should never be rejected; it may be a sign of a serious desire to do business. As is the case in many other countries, local companies prefer to do business with people they know well. Business friendships are highly valued. Establishing a local presence and employing local nationals signal a long-term commitment to the market. Such practices are well received.
Travel Advisory
Before traveling to BiH, U.S. citizens should consult the latest U.S. government travel advisory on the U.S. State Department’s website and the U.S. Embassy Sarajevo Alerts and Messages section of the website. Americans in BiH, whether visiting or residing, are urged to register with the U.S. Embassy in Sarajevo and enroll in the Smart Traveler Enrollment Program (STEP) to obtain updated information on travel and security.
Visa Requirements
U.S. citizens possessing a valid passport do not need a visa to enter BiH for short-term stays of up to three months while visiting for business or tourism. Foreigners must register with the local police at the nearest police station within 24 hours of arrival; however, hotels will do this automatically for their guests. Registration is free for the first three months, regardless of the purpose of the visit. Stays of longer than three months (for education, scientific research, employment, engagement in a professional activity, medical treatment, tourism, other justified reasons, or because of marriage to a BiH citizen) require a temporary resident permit, and visitors must apply for the permit before the end of their initial three months in BiH. Foreigners must state the reason for the extended visit and submit evidence of adequate financial support for the duration of their stay in BiH.
The maximum duration of a temporary residence permit is 12 months, with the possibility of a renewal. The fee is KM 100 or approximately $55. A police certificate indicating that the applicant has no criminal record is required for this permit and should be obtained from the applicant’s state of residence in the United States.
The local field office of the Foreigners’ Affairs Department of the Bosnian Ministry of Security at accepts applications for temporary residence permit.
U.S. Companies that require travel of foreign businesspersons to the United States are advised that security evaluations are handled via an interagency process. Visa applicants should go to the following links:
U.S. State Department Visa Webpage
Consular Section at U.S. Embassy Sarajevo
Currency
BiH’s official currency is the Convertible Mark (KM or BAM), which is the only currency valid for payment in BiH. BiH operates a currency board arrangement by which the Convertible Mark is pegged to the euro (One euro = KM 1.958). As a result, the Convertible Mark is one of the most stable currencies in Southeast Europe. (Currency note: $1= KM 1.80 on 8/22/2023). BiH remains a predominantly cash-based society, though credit cards are increasingly accepted, especially by large retailers. ATMs accept U.S. bank cards issued by major providers, though they are often assessed a fee that includes a flat rate as well as an ad valorem charge.
Telecommunications/Electronics
Telecommunications services in BiH are relatively advanced. There are three 900 MHz GSM/4G networks - BH Mobile, m:Tel, and Eronet, with solid coverage throughout the country and roaming agreements with most international mobile operators. All mobile operators feature GPRS service. Most hotels, and many restaurants and public places in the larger cities, offer Wi-fi.
Transportation
Air transport is the fastest and most reliable connection between Sarajevo and the outside world. There are three other international airports in BiH, but the Sarajevo Airport accounts for over 60 percent of total passenger and cargo traffic in BiH. However, travelers in winter experience frequent delays and cancellations due to inclement weather, especially fog and smog. Passenger traffic through Sarajevo is on the rise, with over one million travelers in 2022. Visits by foreign tourists have doubled in the last five years and numbers are projected to continue rising. The other three airports, Banja Luka, Mostar, and Tuzla have experienced growing passenger traffic, which fluctuates depending on the season.
Sarajevo International Airport is served by both legacy and low-cost carriers, though flight connections change often and vary by season. The airport features a cargo center with a fully equipped customs warehouse to serve the needs of cargo traffic. The Banja Luka Airport is the only airport in the RS. The airport offers Air Serbia flights to Belgrade twice a week, and low-cost carriers Ryanair and Wizz Air serve a number of European destinations. Tuzla Airport, located in northeast BiH, about 50 miles from the Serbian border and 34 miles from the Croatian border, has begun to develop as a hub for low-cost carriers, with Wizz Air serving a number of European destinations. Wizz Air has fueled strong passenger growth over the past two years, with over 400,000 passengers in 2022. Mostar Airport, located in southwest BiH, about 30 miles from the border with Croatia, primarily serves charter flights that target Catholic pilgrims visiting nearby Medjugorje, the site of alleged apparitions of the Virgin Mary to local Catholics in 1981. Croatia Airlines restarted a regular commercial connection with Zagreb in early 2023.
BiH’s road and railway systems have seen little improvement since the 1992-95 war. There are about 220 kilometers of highway in the entire country, although plans are slowly progressing to complete a north-south corridor that will link Sarajevo to northeastern and southern Croatia (Corridor Vc). Driving time from Sarajevo to either Belgrade or Zagreb is four to five hours, and similar driving time to the Croatian coast (Dubrovnik or Split). From Banja Luka, it is a two-hour drive to Zagreb. Rail travel to neighboring capitals is considerably slower. Car rental service is available from Budget, Hertz, Alamo, Avis, National, and Europcar as well as other local car-rental companies.
Language
There are three main ethnic groups in BiH: Bosniaks (Muslims), Croats (Roman Catholics), and Serbs (Orthodox). The official languages spoken in BiH – Bosnian, Serbian, and Croatian – are mutually understandable. In conversation, it is best to refer to the language as “the local language,” or B/C/S.
Health
The water supply in Sarajevo meets World Health Organization standards and, therefore, is not thought to pose a health risk. No lead or bacterial contamination has been found in the tap water in Sarajevo. The local cuisine is very similar to international cuisine and poses no risk. However, fresh vegetables and fruits should be thoroughly washed or peeled before consuming.
Water supply outages periodically affect some parts of Sarajevo. While the city has installed new pipes and pumps in some neighborhoods, it lacks the resources for a comprehensive and much-needed upgrade of the entire system. The effects of illegal construction on the water system further exacerbate the situation.
The drugs found in pharmacies are usually labeled in the local language but can still be identified by the generic name. The dosage is measured by the metric system. The following are recommended immunizations for those traveling to BiH: Tetanus, Diphtheria, Measles, Mumps, Rabies, Rubella, and Polio vaccines. Typhoid fever vaccine and Hepatitis A and B are recommended for those traveling in rural areas or anticipating extended stays.
Motor vehicle accidents are one of the leading causes of death in BiH. It is strongly recommended to use seatbelts when driving or being driven.
Mines and associated devices were used extensively during the 1992-95 war. While many areas have been cleared of mines, there is still a significant risk, especially near the former confrontation lines. The following advice is given to avoid mines: stay on known, safe surfaces; stick to approved routes; do not drive on road shoulders; and observe local behavior. Mine information, including a downloadable app, can be found at https://www.icrc.org/
Emergency health services are available in most cities. BiH does not have a unique 112 number for emergency services like in most European countries. Instead, emergency numbers in each entity are Police 122, Fire 123, and Ambulance 124.
Local Time, Business Hours, and Holidays
BiH is in the GMT +1 time zone. Regular business hours are from 8 am to 5 pm; however, most government agencies close at 4 pm. The Federation of BiH and the Republika Srpska observe different holiday schedules. It is recommended to check with the U.S. Embassy regarding local holidays. The Embassy holiday schedule can be found on the U.S. Embassy Sarajevo’s website.
Summer break is in full swing during the months of July and August and appointments can be difficult to schedule.
Temporary Entry of Materials or Personal Belongings
Exemption from customs duties is granted for the following:
Various business documents including promotional materials such as brochures, other business and legal documents, blueprints, tender documents, bids, tickets, vouchers, printed forms, photographs, and recordings.
Goods in the personal luggage of travelers including tobacco products (200 cigarettes, or 100 cigarillos, or 250 grams of tobacco per passenger per day), alcoholic beverages (two liters of wine or one liter of alcoholic beverages with the alcohol content above 22 percent), 60 cc/ml of perfume or 250cc/ml of toilet water.
Goods that are being used for commercial/promotional purposes including goods used and/or consumed at trade fairs including samples, printed materials (brochures, catalogs, price lists, photographs, videos, etc.), equipment, machines, and other products that are being displayed at trade fairs, and various items of insignificant commercial value.