The tobacco ramp in the Free Zone remains down.

Deputies Branislav Nenezić, Boris Mugoša i Nikola Zirojevic They are demanding that the trade, transshipment, temporary storage and transit of tobacco products be re-enabled in the Free Zone of the Port of Bar, claiming that this would remove business barriers and prevent damage to the Port of Bar, economic entities and the state budget.

Such a solution is not acceptable to the Deputy Prime Minister and Minister of Economic Development at this time. Nika Đeljošaj, but not for the deputy executive director of the Network for the Affirmation of the Non-Governmental Sector (MANS) Dejan Milovac, who warn that opening the tobacco zone, without full control mechanisms and guarantees, could return Montenegro to old smuggling routes.

On June 12, Nenezić, Mugoša and Zirojević submitted the Bill on Amendments to the Law on Free Zones to the parliamentary procedure, requesting, among other things, that the provision prohibiting the temporary accommodation, trade, transshipment and transit of tobacco and tobacco products be deleted from the regulations, as well as that a new provision be added that would again allow these activities in the Free Zone, in accordance with the law and special regulations, justifying this by removing business barriers and preventing damage to the Port of Bar, economic entities and the state budget.

What do the MPs propose?

Nenezić, Mugoša and Zirojević proposed that the user of the free zone could be a domestic or foreign legal entity, or an entrepreneur who carries out economic activity in its territory. The current law limits this right to companies registered in Montenegro.

The proposal also envisages deleting the provision of Article 20 of the Law, which prohibits the temporary storage, trade, transshipment and transit of tobacco and tobacco products, and adding a new provision that would again allow these activities in the Free Zone, in accordance with the law and special regulations.

The MPs explain that the adoption of their proposal would remove "all business barriers and prevent major financial damage to economic entities operating in the Port of Bar Free Zone and to the budget of Montenegro."

They assessed that the current legal solution, which conditions business operations in the zone with domestic registration of business entities, is not in line with the functioning system of the European Union Customs Code.

"Such administrative restrictiveness directly burdens business and attracts foreign clients who only transit or store goods, which extremely adversely affects the competitiveness and operational work of the port in the global logistics market," the explanation states.

The MPs specified that the abolition of this condition and harmonization with European Union practice would allow for freer access for foreign partners, while control over goods would be carried out through customs procedures, rather than through the form of legal company registration.

Explaining the proposal to enable the trade of tobacco products through the Free Zone, the proponents stated that the Law on Free Zones should not deal with individual types of goods.

The MPs also state that the provision, which they proposed to delete, creates a different regulatory framework for the same type of goods depending on whether they are transported by road, sea or rail.

"This ban completely excludes maritime transport and gives priority to road and rail transport," the explanation states.

Đeljošaj: The mafia is constantly trying to exert pressure

Đeljošaj says that "every day we confirm that the state is stronger than the tobacco mafia, that the rule of law, institutions and public interest are above the particular interests of those who would like to return the free zones to the way they were, at a time when such a system served their interests."

"Since the adoption of the new Law on Free Zones, we have witnessed numerous attempts by the tobacco mafia to exert pressure and influence changes to the law. However, we have remained consistent in our decision to preserve the regime established by the new legal solution for the period stipulated by the law itself," the Deputy Prime Minister told "Vijesti".

He also points out that the Ministry has not officially received the aforementioned Bill, so it cannot comment on its specific solutions at this time.

"After the Proposal is submitted in the regular procedure and reviewed in its entirety, the Ministry will provide its expert opinion, in accordance with its jurisdiction and applicable procedures," the Deputy Prime Minister emphasized.

He points out that the new Law on Free Zones has established a significantly stricter and more modern system of supervision, control and monitoring of goods flows, with the aim of strengthening transparency and reducing the risk of illegal activities.

"Given that some of the by-laws are in the final stage of finalization, it is necessary to ensure that the entire normative framework is fully completed and implemented in practice. In the context of the above issue, it is important to emphasize that the ban on the storage and trade of tobacco products in free zones is in force, which represents one of the key measures for combating the risk of illegal cigarette trade," Đeljošaj emphasized.

He added that in the coming period, the Ministry will continue to monitor the implementation of this legal solution and its effects in practice, in order to conduct a comprehensive assessment of its impact on the security, transparency and legality of business operations in free zones, based on concrete results and experiences gained during the full implementation of the regulations.

Smuggling did not bypass the system, but through it.

MANS said that the issue of the Port of Bar Free Zone is not primarily an issue of economics, but rather an issue of the rule of law.

"Montenegro did not ban the trade of tobacco products through the Free Zone because someone was against the development of the Port of Bar or international trade, but because that area has been recognized for decades as one of the key points of international cigarette smuggling," the deputy executive director told "Vijesti". Dejan Milovac.

He recalls that the Free Zone of the Port of Bar has been mentioned for years in reports by international organizations, European institutions and foreign security services as an important segment of regional and international smuggling routes.

"For MANS, the issue of the Port of Bar Free Zone is not primarily an issue of economics, but rather an issue of the rule of law," Milovac emphasized.

He finds it particularly worrying that one of the main arguments for reopening trade in tobacco products is the existence of customs procedures and control mechanisms.

"It is precisely the experience of Montenegro that shows that for decades cigarette smuggling had a strong foothold and support precisely in those state structures that were tasked with preventing it, including parts of the customs service and other competent institutions," Milovac emphasizes.

According to him, the problem was never just about regulations, but above all about their implementation and "the entrapment of the system that was supposed to provide control."

"Cigarette smuggling in Montenegro was not possible only because of the activities of criminal groups. It was possible because the institutions that were obliged to prevent it tolerated such activities for years or were not capable of preventing such activities," Milovac specified.

He says that it is therefore wrong to claim that the problem can be solved by invoking the same control mechanisms that have shown serious weaknesses in the past.

Without judgments and reforms, there are no guarantees.

Milovac warns that even after decades of accusations and international warnings about the role of the Port of Bar Free Zone in regional and international cigarette smuggling, the state has not yet managed to secure final court rulings.

"On the contrary, what has been done so far by the judiciary has hardly produced a serious deterrent effect or sent a clear message that future abuses will be discovered and sanctioned," he pointed out.

The Deputy Executive Director of MANS recalls that the ban on the storage, transshipment and transit of tobacco products has never been an ideal or long-term solution, but rather "a forced measure by a state that has failed to build institutions capable of controlling one of the riskiest segments of international trade."

"If the ban was a consequence of the state's institutional powerlessness, then it is logical to expect that before it is lifted, the public will receive convincing evidence that the reasons for its introduction have been eliminated in the meantime," Milovac believes.

He emphasizes that MANS does not see any substantial reforms of the management system of the Port of Bar Free Zone, nor any significant efforts to strengthen the institutions that control the trade of high-risk goods.

"There are no clear indicators that the mechanisms for verifying zone users, controlling the real owners of companies, monitoring goods and cash flows have been improved, nor that the system is more resistant to corruption today than it was during the period when cigarette smuggling flourished," they stated.

Who will verify the beneficial owners and origin of capital?

Additional concern, says Milovac, is caused by the proposal that users of the zone could be foreign legal entities without registration in Montenegro.

"This provision itself is not necessarily controversial if there is a strong system for verifying the beneficial owners and origin of capital, but in combination with the return of tobacco products to the zone, it raises the question of whether the state has sufficient capacity to control who actually operates in that area and what goods are moving through it," he warns.

Milovac reminds us that key evidence about the organization of cigarette smuggling, the real owners of companies, and money flows is often found outside the borders of the state, which is why effective international legal assistance is one of the key issues for assessing the risks of such a legal solution.

According to him, any discussion about the possible return of tobacco products to the Free Zone would have to first answer several questions.

"Where are the final verdicts for cigarette smuggling through the Free Zone of the Port of Bar, who was responsible within the institutions responsible for controlling that system, what specific reforms have been implemented in the zone and the competent authorities, how will full traceability of goods and money be ensured, and how will Montenegro be prevented from once again becoming part of international smuggling routes," Milovac specifies.

"Until the state demonstrates that it is capable of controlling what it was previously unable to control, the opening of the Free Zone for the trade of tobacco products represents an unnecessary and risky experiment with serious security, financial and reputational consequences for Montenegro," he concludes.