Table of Contents Doing Business in Kosovo ______________________________________________ 6 Market Overview _________________________________________________________ 6 Market Challenges ________________________________________________________ 7 Market Opportunities ______________________________________________________ 7 Market Entry Strategy _____________________________________________________ 8 Political Environment______________________________________________________ 9 For background information on the political and economic environment in Kosovo, please visit the U.S. Department of State Background Notes: http://www.State.gov/r/pa/ei/bgn/ . _____ 9 Selling US Products & Services _________________________________________ 10 Using an Agent to Sell US Products and Services _________________________________ 10 Establishing an Office _____________________________________________________ 10 Franchising ____________________________________________________________ 10 Direct Marketing ________________________________________________________ 10 Joint Ventures/Licensing __________________________________________________ 11 Selling to the Government _________________________________________________ 11 Distribution & Sales Channels _______________________________________________ 11 Express Delivery ________________________________________________________ 11 Selling Factors & Techniques _______________________________________________ 11 eCommerce ____________________________________________________________ 12 Trade Promotion & Advertising _____________________________________________ 12 Pricing ________________________________________________________________ 15 Sales Service/Customer Support _____________________________________________ 16 Protecting Intellectual Property _____________________________________________ 16 Due Diligence ___________________________________________________________ 16 Local Professional Services _________________________________________________ 16 Principle Business Associations _____________________________________________ 19 Limitations on Selling US Products and Services _________________________________ 19 Web Resources _________________________________________________________ 19 Leading Sectors for US Exports & Investments ______________________________ 21 Energy ________________________________________________________________ 21 Overview ___________________________________________________________________ 21 Leading Sub-Sectors ___________________________________________________________ 22 Opportunities ________________________________________________________________ 23 Web Resources _______________________________________________________________ 23 Agricultural Sector _______________________________________________________ 24 Overview ___________________________________________________________________ 24 Leading Sub-Sectors ___________________________________________________________ 25 Opportunities ________________________________________________________________ 25 Web Resources _______________________________________________________________ 25 Health ________________________________________________________________ 26 Overview ___________________________________________________________________ 26 Leading Sub-Sectors ___________________________________________________________ 26 Opportunities ________________________________________________________________ 26 Web Resources _______________________________________________________________ 26 Infrastructure __________________________________________________________ 28 Overview ___________________________________________________________________ 28 Leading Sub-Sectors ___________________________________________________________ 28 Opportunities ________________________________________________________________ 28 Web Resources _______________________________________________________________ 29 Mining and Minerals _____________________________________________________ 30 Overview ___________________________________________________________________ 30 Leading Sub-Sectors ___________________________________________________________ 30 Opportunities ________________________________________________________________ 31 Web Resources _______________________________________________________________ 31 Telecommunications _____________________________________________________ 32 Overview ___________________________________________________________________ 32 Leading Sub-Sectors ___________________________________________________________ 32 Opportunities ________________________________________________________________ 33 Web Resources _______________________________________________________________ 33 Customs, Regulations and Standards _____________________________________ 34 Trade Barriers __________________________________________________________ 34 Import Tariff ___________________________________________________________ 34 Import Requirements & Documentation _______________________________________ 35 Labeling/Marking Requirements ____________________________________________ 35 U.S. Export Controls ______________________________________________________ 35 Temporary Entry ________________________________________________________ 36 Prohibited & Restricted Imports _____________________________________________ 36 Customs Regulations _____________________________________________________ 36 Standards for Trade ______________________________________________________ 37 Overview ___________________________________________________________________ 37 Standards ___________________________________________________________________ 37 Testing, inspection and certification _______________________________________________ 37 Publication of technical regulations ________________________________________________ 38 Contact Information ___________________________________________________________ 38 Trade Agreements _______________________________________________________ 38 Licensing Requirements for Professional Services ________________________________ 39 Web Resources _________________________________________________________ 39 Investment Climate Statement _________________________________________ 39 Executive Summary ______________________________________________________ 39 Openness To, and Restrictions Upon, Foreign Investment __________________________ 41 Policies Towards Foreign Direct Investment ____________________________________ 41 Limits on Foreign Control and Right to Private Ownership and Establishment ___________ 42 Other Investment Policy Reviews ____________________________________________ 42 Business Facilitation _____________________________________________________ 42 Outward Investment _____________________________________________________ 43 Bilateral Investment Agreements and Taxation Treaties ___________________________ 43 Legal Regime ___________________________________________________________ 43 Transparency of the Regulatory System _______________________________________ 43 Legal System and Judicial Independence _______________________________________ 44 Laws and Regulations on Foreign Direct Investment ______________________________ 45 Competition and Anti-Trust Laws ____________________________________________ 45 Dispute Settlement _______________________________________________________ 46 Bankruptcy Regulations ___________________________________________________ 47 Industrial Policies _______________________________________________________ 47 Investment Incentives ____________________________________________________ 47 Foreign Trade Zones/Free Ports/Trade Facilitation ______________________________ 48 Performance and Data Localization Requirements ________________________________ 48 Protection of Property Rights _______________________________________________ 48 Real Property ___________________________________________________________ 48 Intellectual Property Rights ________________________________________________ 50 Financial Sector _________________________________________________________ 51 Capital Markets and Portfolio Investment ______________________________________ 51 Money and Banking System ________________________________________________ 51 Foreign Exchange and Remittances ___________________________________________ 52 Sovereign Wealth Funds ___________________________________________________ 52 State-Owned Enterprises __________________________________________________ 52 Privatization Program ____________________________________________________ 53 Responsible Business Conduct ______________________________________________ 53 Corruption _____________________________________________________________ 54 Resources to Report Corruption _____________________________________________ 54 Political and Security Environment ___________________________________________ 55 Labor Policies and Practices ________________________________________________ 55 OPIC and Other Investment Insurance Programs _________________________________ 57 Foreign Direct Investment and Foreign Portfolio Investment Statistics _________________ 57 Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy _____________________ 57 Table 3: Sources and Destination of FDI ____________________________________________ 57 Table 4: Sources of Portfolio Investment ___________________________________________ 58 1. Contact for More Information on the Investment Climate Statement _______________ 59 Trade & Project Financing ____________________________________________ 60 Methods of Payment _____________________________________________________