- The Promissory Note as collateral in the lohn business

Indirect Taxation Authority of Bosnia and Herzegovina, at the initiative of the Ministry of Foreign Trade and Economic Relations, adopted the Instruction on the use of blank own drawn bill in the customs procedure of inward processing on the basis of the lohn work.

By adopting above Instruction, the bank guarantee was the only collateral for in lohn business. To use a bill of exchange as a security in the lohn work, it is necessary to submit the Request (image 1) to the Sector for Business Services - Department of forcible collection of in Central Office of the ITA. Necessary conditions for the approval of the bill of exchange are prescribed in Article 3 of the Instruction. Evidence of compliance with the above conditions are prescribed in Article 5 of the Instruction. Relevant Sector makes a decision on the request within a month. If the requirements are met, the same Sector makes a Solution on approving the use of blank promissory notes, for an indefinite period, or until the conditions of the Solution are met. Reversal of Solutions is prescribed in Article 7 of Directive. A user for whom is terminated the Solution, can not be re-authorized for using promissory notes before the expiration of one year from the date of entry into force of the decision on the abolition of the Solution.

Request for laying blank promissory notes (image 2), in two copies, user shall submit to the Department of Business Services at the Regional Centre of the ITA, which shall be submitted with attachments from Article 8 of the Instruction. After checking the regularity of requirements, relevant Department same application keeps track in the appropriate Register.

In the case of non-payment of overdue obligations, the Department of Business Services fills the blank promissory note, and the same submits for payment to the debtor's bank. If the bills of exchange is not paid out, the ITA will initiate enforced collection procedure.