Selling home-made rakija in Republika Srpska: producer registration, excise, labelling

In Republika Srpska, making and selling rakija is governed by the Zakon o jakim alkoholnim pićima (Law on Strong Alcoholic Beverages), and excise by the Zakon o akcizama u BiH (Law on Excise in BiH). This applies to households, farms and rural guesthouses that want to sell rakija or serve it to guests.

In short

• A person who distils rakija for their own needs is not a producer and does not register, but may not display, serve or sell that rakija in bulk (art. 46 and 53). Only rakija in original packaging filled by a registered producer may be put on the market (art. 42).
• Only entrepreneurs and companies entered in the Register of Producers of Strong Alcoholic Beverages, kept by the Ministarstvo poljoprivrede, šumarstva i vodoprivrede (Ministry of Agriculture, Forestry and Water Management), may produce.
• Excise on natural fruit brandy (no flavourings, ethyl alcohol or sugar) is 8.00 KM per litre of absolute alcohol. Example: a litre of 40% vol. rakija holds 0.4 l of absolute alcohol, so 3.20 KM excise. Other alcoholic drinks carry 15.00 KM.
• A non-producer who displays, serves or sells rakija made for own needs faces a fine of 500 to 1,500 KM, and the inspector may seize it. The costs of seizure, storage and destruction fall on the person it was taken from. The fine is set in art. 53, seizure in art. 49 para. 1 item 11, and the costs in art. 50 para. 2.

Who it applies to

• Households and farms that distil: for their own use only.
• Entrepreneurs and companies that want to produce and sell rakija.
• Rural guesthouses and restaurants: they may serve rakija bought in original packaging from a registered producer. They may not serve or display bulk rakija poured from a demijohn or jug, even if they are a registered business (art. 46 para. 1).

What to do

1. Register the activity as an entrepreneur or legal entity. Registering as an agricultural holding alone is not enough, because the law allows production only by legal entities and entrepreneurs.
2. Meet the conditions: a production room separate from the room for raw materials and finished product, a qualified person running production, and equipment as required by the Pravilnik o minimalnim tehničko-tehnološkim uslovima (Sl. glasnik RS 71/16).
3. Submit a written request to the Ministry. Attach: proof of registration of the business, proof of qualified staff, a contract with an authorised laboratory for regular quality testing, and proof of payment of the administrative fee. The minister issues a decision confirming the conditions and entering you in the Register.
4. Before starting, register with the Uprava za indirektno oporezivanje BiH (UIO, Indirect Taxation Authority) in the Unified Register of Indirect Tax Payers, and notify your production premises and storage at least 15 days before use (forms PPPA and PSA).
5. For retail packs with 5% alcohol or more, request excise stamps from UIO (form ZI-AL). Only drinks with less than 5% alcohol may go without a stamp (art. 25 of the Law on Excise in BiH).
6. Before starting production, adopt a producer specification (proizvođačka specifikacija, art. 10), the content of which is set by a Pravilnik. Starting production without one is an offence.
7. Before sale, have the rakija quality-tested by an authorised laboratory. It may be sold only in original packaging filled by the producer. Bulk rakija may not be displayed, served or sold at a market, fair, catering outlet or shop.
8. Label according to the Pravilnik o deklarisanju, opisivanju i predstavljanju jakih alkoholnih pića (Sl. glasnik RS 72/16). Fruit rakija must be at least 37.5% vol., must not be flavoured, no ethyl alcohol may be added, and the name must give the fruit, for example "rakija od šljive" (plum rakija) or šljivovica. The Pravilnik allows sweetening only to round off the final taste, up to 10 g/l (art. 6 para. 1 item 5), but the lower 8.00 KM excise rate applies only to natural fruit brandy without sugar (art. 8 of the Law on Excise in BiH).
9. Keep a cellar record (podrumska evidencija) and by 25 February send the Ministry a report on production, sales and stocks for the previous year.

Deadlines and amounts

• Excise: 8.00 KM per litre of absolute alcohol (natural fruit brandy); 15.00 KM for other alcoholic drinks.
• Notifying premises and storage to UIO: 15 days before use.
• Annual report to the Ministry: by 25 February.
• Producing without entry in the Register (art. 51): legal entity 5,000 to 15,000 KM, responsible person in a legal entity 2,000 to 6,000 KM, entrepreneur 3,000 to 9,000 KM. The same fines apply to putting rakija on the market that is not in original packaging or not tested, and to bulk rakija at a market, fair or outlet.
• A non-producer who displays, serves or sells rakija made for own needs: 500 to 1,500 KM (art. 53).
• No producer specification, no cellar record or a missed 25 February report (art. 52): legal entity 3,000 to 9,000 KM, responsible person 1,000 to 3,000 KM, entrepreneur 2,000 to 6,000 KM.
• Check the administrative fee and any other costs with the Ministry of Agriculture, Forestry and Water Management before applying.

Where to go

• Ministry of Agriculture, Forestry and Water Management of Republika Srpska, Banja Luka: entry in the Register of Producers.
• Uprava za indirektno oporezivanje BiH: excise registration, stamps, info@uino.gov.ba. UIO has regional centres in Banja Luka, Mostar, Tuzla and Sarajevo; for East Herzegovina municipalities, ask which one is competent at info@uino.gov.ba or at Regionalni centar Mostar.
• Agricultural and food inspectors of the Republička uprava za inspekcijske poslove (Republic Inspectorate), or the municipal inspector in Trebinje, Bileća, Gacko, Ljubinje, Nevesinje and Berkovići: supervision and advice before applying.

Laws and sources

• Pravilnik o deklarisanju, opisivanju i predstavljanju jakih alkoholnih pića (Službeni glasnik RS br. 72/16), which cites the Zakon o jakim alkoholnim pićima (Službeni glasnik RS br. 81/15)
• Službeni glasnik RS, electronic register of regulations: Zakon o jakim alkoholnim pićima (Sl. glasnik RS 81/15), art. 3, 10, 11, 12, 13, 42, 46, 49, 50, 51, 52 and 53
• Pravilnik o minimalnim tehničko-tehnološkim uslovima za proizvodnju jakih alkoholnih pića (Sl. glasnik RS 71/16) and Pravilnik o Registru proizvođača jakih alkoholnih pića, sadržaju proizvođačke specifikacije, obilježavanju posuda i vođenju podrumske evidencije (Sl. glasnik RS 103/16)
• Zakon o akcizama u BiH (Sl. glasnik BiH 49/09, 49/14, 60/14, 91/17 and 50/22), art. 8, 12, 13, 19, 25
• UIO: marking with excise stamps