We have left behind the first week of the state of emergency declared for the suppression of coronavirus disease, during which state authorities passed several regulations that have serious impact on the lives of citizens and functioning of economy. At the same time, both state and private sector had to adjust to the new circumstances and it is very likely there will be some new measures in the upcoming period.

The key novelties that marked the previous week shall be presented herein.

a. Restricted trade in goods and services

One of the first measures introduced by the Government was temporary ban on export of essential products that are essential for the population, i.e. certain commodities, safety equipment and products for personal hygiene and disinfection. The ban will be in force for 30 days, starting from 14 March and it shall not refer to goods transiting through the territory of the Republic of Serbia.

Temporary limitation of retail and wholesale prices for main commodities and safety equipment was introduced so that the prices would not exceed the levels as of 5 March 2020. This limitation will also be in force for 30 days, starting from 15 March. In addition, the margins for all members of supply chain of commodities and safety equipment have been restricted so that they would not exceed the margins for such products as of 5 March 2020. This limitation is also temporary and it will be in force for 30 days, starting from 18 March.

Export and re-export of medicines from the Republic of Serbia will be prohibited for a period of 30 days, starting from 16 March. The exception includes medicines produced in the Republic of Serbia exclusively for foreign markets (not registered in the Republic of Serbia) and medicines dispatched in the procedure of transit from the customs territory of the Republic of Serbia.

Retail price of safety equipment (masks) distributed by the Republic Fund for Health Insurance to economic entities for the purpose of market supply during the state of emergency has been restricted and it may not exceed RSD 120,00/piece, VAT included. Also, retail companies may not supply a natural person – end-user with more than 10 masks.

Special operating measures have been introduced for catering facilities. Namely, starting from 21 March  throughout the state of emergency i.e. danger from spreading of COVID-19 disease, serving and delivering meals and beverages to guests may not be done immediately in closed spaces and in organised open gardens. The delivery of meals and beverages may be continued via organised delivery services or via counters i.e. without customers entering the service facilities.

Starting from 21 March throughout the state of emergency i.e. danger from spreading of COVID-19 disease, sale of goods and rendering of services have been prohibited in commercial centres and retail shops which are accessed from a confined space. This measure does not apply to other forms of operation such as online sale. The retailers trading in commodities, medicines and medical devices have been exempted from this measure.

b. State assistance

The Government passed the Regulation on tax measures during the state of emergency for the purpose of mitigating economic consequences of COVID-19 disease caused by virus SARS-CoV-2. The regulation only applies to taxpayers who have already been granted the delay in repayment of tax debt. It has been confirmed that, in case of delay in payment during the state of emergency and starting from the instalment due in March 2020, the Tax Administration shall not enforce collection i.e. collect from the collateral.

Other measures are due in the upcoming period, which will refer to the entities that regularly fulfil their obligations.

c. Measures of the National Bank of Serbia

The National Bank of Serbia enacted the decisions on temporary measures for preserving stability of financial system, which refer to moratorium on financial leasing and loans. These measures will be in force for minimum 90 days i.e. during the state of emergency. For using this possibility, it is not necessary to file a request to the bank i.e. leasing company, since client’s “silence” will be considered as acceptance of general offer that the bank/leasing company is obliged to publish on its website.

d. Employment

BREAKING: On March 24, 2020 the Ministry of Labour published on its website the detailed explanation of rights and obligations of employees and employers during the state of emergency (please click here).

Working arrangements during the state of emergency have been elaborated in our previous posts (more information can be found here and here).

In the meantime, the prohibition of movement in the period from 8 p.m. to 5 a.m. imposed an obligation on employers to provide special permits from the Ministry of Interior for employees going to or coming from work in that period. After certain initial ambiguities, a special e-mail address was launched by the Ministry of Economy for applications, whereas employees need to possess a work order issued by the employer. Considering that the movement prohibition period was subsequently modified to 5 p.m. to 5 a.m. i.e. by 3 a.m. on Saturday, it can be expected that an additional number of employers will need to report the movement of employees in that period.

The breach of movement prohibition i.e. the unauthorised movement may also be subject to misdemeanour fine as stipulated by special Regulation.

From 21 March, it has been prohibited to carry out public road passenger transport by buses, except for special shuttle buses that the companies will operate exclusively for realising employees’ working tasks. Serbian Chamber of Commerce instructed companies to establish direct contact with transport companies in order to organise shuttle buses on commercial basis. The Secretariat for Public Transport of the City of Belgrade launched a special e-mail address where the employers would submit their applications regarding employee needs for special city and suburban shuttle lines. There are currently 32 shuttle bus lines.

The Republic Fund for Health Insurance announced that employees who were on sick leave at the moment of declaration of the state of emergency will not be obliged to extend their leave through medical board, whether the leave was designated by a selected practitioner or medical board. The sick leave will be automatically extended for 30 days.

e. The work of courts and deadlines relevant for court proceedings

Following the recommendation of the Ministry of Justice, which in practice led to different interpretations and different practices of courts in the Republic of Serbia, the High Judicial Council passed a decision and defined the scope of work for the courts in the state of emergency. It was established that only the proceedings that cannot be delayed would be carried out in criminal and civil matters (the latter includes: deciding on temporary measures, measures of protection against family violence, ban on press distribution, certain statutory disputes and enforcement of decisions in family law matters).

With regard to deadlines, special Government Regulation prescribes that all deadlines for submission of initial acts in family, criminal, extrajudicial and executive proceedings, as well as proceedings before the Administrative and Constitutional Courts, deadlines for submission of legal remedies or for undertaking other procedural activities in the stated proceedings, as well as deadlines for submission of regular and extraordinary legal remedies in criminal and misdemeanour proceedings and proceedings for economic offences will cease to run during the state of emergency declared on 15 March 2020.

f. The work of public notaries

The work of public notaries has also been changed. According to the instructions of the Public Notary Chamber, public notary offices will continue to work every day from 9 to 17, however with suspension of legalization of signatures, manuscripts and copies, except in particularly urgent and justified cases.

Public notaries will continue to perform the official duties of certification of agreements, execution of notarial deeds and minutes, providing that the clients are not in the category of persons under special protection and scheduling the clients so that there is minimum one-hour distance between them.

During the state of emergency, public notaries will not schedule hearings in the procedures of executing death certificates, resolving inheritance and other extrajudicial proceedings that are entrusted to public notaries by courts and which require the presence of parties. Also, the already scheduled hearings in these proceedings will be delayed, except in cases that require urgent action and do not jeopardise the particularly protected categories of population.

g. The work of public enforcement officers

The work arrangement of public enforcement officers has also been modified in accordance with the Instructions of the Chamber of Public Enforcement Officers.

During the state of emergency, public enforcement officers will not decide on proposals for enforcement and will not undertake executive activities for settlement of financial and exercising of non-financial claims, particularly if the enforcement is conducted by means of following enforcement mechanisms: sale of real estate or assets of enforcement debtors, transfer of salaries, pensions and other regular incomes, by transfer of assets of the enforcement debtor and by eviction and sale of real estate of the enforcement debtor.

The already established enforcement against salaries or pensions will not be implemented, whereas the concluded agreements on debt repayment in instalments will not be applied during the state of emergency.

h. Movement of attorneys during the movement prohibition

Movement prohibition imposed by the Order of the Ministry of Interior also applies to attorneys, except for those summoned by state authorities in order to act as ex officio defence counsels or as selected defence counsels of suspects, in which case they need not to obtain special movement permit but will have to undertake several steps stipulated in the instructions of the Serbian Bar Association.

i. The work of public administration bodies, public companies and other institutions

Direct work with clients (through counters etc.) has been suspended in all public administration bodies, in AP Vojvodina and local self-government units, special organisations, institutions, public companies and other organisations established by or in major ownership of the Republic of Serbia, autonomous province or local self-government unit. Communication shall be continued by written or e-mail or by phone.

The suspension will last until the end of the state of emergency, while all institutions subject to this measure shall be obliged to publish e-mail addresses for communication on their websites.

This suspension does not include: the Ministry of Finance – Customs Administration and PE “Pošta Srbije”, as well as certain counters of the Ministry of Finance – Tax Administration, Treasury Administration and PE “Elektroprivreda Srbije”.

In accordance with the above, the Business Registers Agency also closed its counters. In addition to written communication via mail, the users will also be able to use electronic services of BRA, namely the e-Registration of incorporation of a single- and multi-member LTD, e-Incorporation of Sole Proprietors, e-Construction permits, e-Submission of financial statements and the Central Records of Beneficial Owners.

In line with the stated measure, the validity of all personal documents of citizens of the Republic of Serbia has been extended (ID card, travel documents, driver’s licence, registration documents and firearms certificate) until the end of the state of emergency. Exceptionally, registration documents will be issued exclusively for initial entry of vehicle into the register and change of vehicle owner, whereas registration stickers will be issued exclusively at vehicle inspection.

j. Restriction of movement and traffic

The prohibition of movement of persons is in force from 5 p.m. until 5 a.m., except on Saturdays when this prohibition lasts until 3 a.m., with certain additional exceptions. Also, this prohibition fully applies to persons over the age of 65 i.e. 70.

The information regarding the movement of employees and attorneys during the movement prohibition hours can be found in chapters d. and h. above. In addition, farmers must also apply for movement permit to the Plant Protection Directorate or Agricultural Inspection Sector, depending on the need for movement (application of agri-technical measures or performance of activities relating to cattle-breeding).

Additional restrictions have been introduced for asylum-seekers and irregular migrants accommodated in asylum and reception centres, who can leave them only for justified reasons and with the permission of the Commissariat for Refugees and Migration of the Republic of Serbia.

During the risk from spreading of COVID-19 disease, public gatherings have also been prohibited in the entire territory of the Republic of Serbia in public confined spaces – when more than five persons are simultaneously gathered.

With regard to traffic, all aircrafts performing international passenger transport will be prohibited to land to/depart from the airports in the Republic of Serbia, with certain exceptions; the prohibition shall include public road transport of passengers by buses, international and domestic railway and waterway passenger transport.

Starting from 20 March, all passenger border crossings in the Republic of Serbia have been closed – for international road, railway and waterway transport, including for entry via border crossings with neighbouring countries, hence it is only possible to enter the country on basis of special authorisation of competent authorities.

This article is to be considered as exclusively informative, with no intention to provide legal advice.
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