Production, storage, processing, temporary accommodation, trade, as well as transshipment and transit of cigarettes and tobacco products will be prohibited in Montenegro’s free zones. The import and export of weapons, military equipment, hazardous waste, medicines, medical supplies, and dual-use goods will require special permits when conducted within these zones.
The entire customs area, including fences, entrances, and exits, must be physically and technically secured, illuminated at night, and equipped with both external and internal video surveillance. Customs authorities must have direct, unannounced access to this surveillance at all times. These provisions are outlined in the Draft Law on Free Zones prepared by the Ministry of Economic Development (MER), which has been opened for public consultation. Comments and suggestions can be submitted electronically or by mail to MER.
The draft law’s explanation notes that the necessary funds and arrangements to enforce this regulation are not secured for the current year but should be planned for in the following year’s budget.
Minister of Economic Development and Deputy Prime Minister Nik Đeljošaj emphasized that the primary goal of the draft law is to establish mechanisms to combat illegal trade in free zones in line with the best European practices. This includes introducing effective control measures and strengthening customs supervision. A key innovation is the prohibition of any production, processing, storage, temporary accommodation, trade, transshipment, and transit of tobacco and tobacco products within free zones, sending a clear message that the state is determined to suppress illegal activities, which Montenegro has unfortunately been associated with for some time.
Compared to current practice, the draft law grants broader powers to customs authorities for managing free zones, enabling more effective oversight of goods and activities and increasing transparency. It defines comprehensive customs control provisions, including physical and technical security, video surveillance, and a range of security, information, IT, and organizational requirements and obligations for founders, operators, users, and other parties active in free zones.
The draft also more precisely defines the roles of founders, operators, and users of free zones. To improve data access and control over those establishing and managing zones, only business entities and entrepreneurs registered in Montenegro will be eligible to act as founders, operators, or users, excluding foreign legal and natural persons.
Furthermore, the law sets conditions that must be met by operators, founders, and users before receiving approval to establish or begin operations in free zones. These include checks on financial solvency, security, and protection requirements, as well as security clearances conducted by the National Security Agency (ANB) and Ministry of Internal Affairs (MUP). The law also improves the procedure for submitting and reviewing initiatives to establish free zones, requiring the Ministry of Economic Development to guide founders in improving their documents.
A legally regulated mechanism for the closure of free zones is introduced, respecting principles of legal certainty, transparency, and protection of property rights. The penal policy has been significantly enhanced with more detailed and precise administrative penalties, clearly separating the responsibilities of founders, operators, and users, thereby expanding accountability. A wider range of fines has been introduced, allowing authorities flexibility in proportional punishment based on the severity of violations.
The Ministry of Economic Development formed an inter-ministerial working group on December 17, 2024, led by State Secretary Ana Raičević. The group included representatives from government sectors, NGOs, the private sector, and the British Embassy, which supports Montenegro’s anti-corruption efforts and provided expert legal assistance in drafting the law. The drafting process began in late January 2025 and was completed on June 10, 2025, after 19 working group meetings. The result is a new legal framework establishing clear and predictable rules for the establishment, management, and operation of free zones in Montenegro.
