RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/HRV/7/Rev.4 
13 June 2000 
 (00-2353) 
Working Party on the  
Accession of Croatia  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
 THE ACCESSION OF CROATIA TO THE 
 WORLD TRADE ORGANIZATION  
 
Revision  
 
INTRODUCTION 
 1. The Government of Croatia applied for accessi on to the General Agreement on Tariffs and 
Trade (GATT 1947) in September 1993.  At its m eeting on 27 October 1993, the GATT 1947 Council 
of Representatives established a Working Party to ex amine the application of the Government of 
Croatia to accede to the General Agreement under  Article XXXIII of the General Agreement.  
Following the conclusion of the Uruguay Round, Cr oatia requested accession to the World Trade 
Organization (WTO) under Article XII of the Marr akesh Agreement establishing the World Trade 
Organization.  Having regard to the deci sion adopted by the WTO General Council on 
31 January 1995, the existing GATT 1947 Accession Working Party was transformed into a WTO Accession Working Party.  The terms of referen ce and the membership of the Working Party are 
reproduced in document WT/ACC/HRV/8/Rev.6. 
 
2. The Working Party met on 1 April 1996;  23-24 January 1997;  21 January and 
16 October 1998;  27 September 1999;  and [                 ] 2000 under the Chairmanship of 
Ms. A.-M. Plate (the Netherlands). 
 
DOCUMENTATION PROVIDED  3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Croatia (L/7466) and the questions submitted by Members on the foreign 
trade regime of Croatia, together with th e replies thereto (WT/ACC/HRV/3 and Corr.1, 
WT/ACC/HRV/4 and Addenda 1 and 2, WT/ACC/HR V/7 and Add.1, WT/ACC/HRV/11 and Add.1, 
WT/ACC/HRV/27 and Addendum 1, WT/ACC/HRV/ 30, WT/ACC/HRV/39 and Addenda 1 and 2, 
WT/ACC/HRV/45 and Corr.1 and 2, WT/ACC/HRV/48, WT/ACC/HRV/51, WT/ACC/HRV/54), and 
other information provided by the Croatia n authorities (WT/ACC/HRV/5 and Corr.1, 
WT/ACC/HRV/6 and Rev.1 and Corr.1, WT/ACC/HRV/9 and Corr.1, WT/ACC/HRV/12 and Corr.1, WT/ACC/SPEC/HRV/7/Rev.4 
Page 2  
 
 WT/ACC/HRV/13, WT/ACC/HRV/14, WT/ACC/HRV/15, WT/ACC/HRV/16 and Rev.1, 
WT/ACC/HRV/17, WT/ACC/HRV/18, WT/ACC/HRV/19, WT/ACC/HRV/20, WT/ACC/HRV/21, 
WT/ACC/HRV/22, WT/ACC/HRV/23, WT/ACC/HRV/24, WT/ACC/HRV/25, WT/ACC/HRV/37 
and Rev.1, WT/ACC/HRV/40, WT/ACC/HRV/ 43, WT/ACC/HRV/49, WT/ACC/HRV/55 and 
WT/ACC/HRV/58 and Rev.1), including the legisla tive texts and other documentation listed in 
Annex I. 
 
INTRODUCTORY STATEMENTS  4. In his introductory statement, the representa tive of Croatia stressed that accession to the 
World Trade Organization was among the main prior ities of his Government.  Croatia was pursuing a 
program  of thorough economic adjustment and refo rm, transforming its economy into one based fully 
on market principles.  The efforts of the Governme nt were underpinned by credits from the IMF, the 
World Bank and the European Bank for Reconstruc tion and Development.  Croatia was strengthening 
institutional relations with the European Union and free-trade ties with countries in central and eastern 
Europe.  
 5. The near-term goals of his Government were to accelerate economic growth, privatization, 
public enterprise restructuring and the rehabilitation of banks;  comprehensiv e reconstruction of war-
torn areas;  fight unemployment while maintaining lo w inflation and a stable exchange rate;  and to 
continue to develop the legal and institutional fra mework.  An internationally compatible market 
framework had been established with the enactment  of the Company Law and the Law on Trade, for 
the most part adjusted in accord ance with the principles of the GATT and resulting in substantial 
liberalization of foreign trade.  Croatia had also  introduced a new Customs Tariff, incorporating the 
1996 amendments to the Interna tional Convention on the Harmonized Commodity Description and 
the Recommendation of the World Customs Organi zation Regarding Ozone Layer Depleters and the 
Draft Recommendation on Drugs.  Some financia l incentives and subsidies were provided to 
agriculture in accordance with the Law on Financ ial Incentives and Subsidi es in Agriculture and 
Fisheries (and its amendments).  The Government intended to maintain guara nteed prices for a small 
group of agricultural products, while a system of  variable levies had been abolished.  The 
representative of Croatia assured members of the Wo rking Party that Croatia would take all necessary 
steps to continue to improve its legal and institu tional framework, so that the accession process could 
be accomplished as soon as reasonably possible. 
 
6. In their opening remarks many members of th e Working Party welcomed the request from 
Croatia to accede to the WTO.  Me mbership in the WTO would assist Cr oatia in its efforts to repair 
the damage of war and underpin its continuous and systematic transformation towards a market  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 3 
 
 
 economy.  Several members declared their interest in  working constructively together with Croatia in 
establishing its terms of accession and ensuring that the mandate of the Working Party be concluded 
in a timely manner. 
 7. The Working Party then proceeded to review the economic policies and foreign trade regime 
of Croatia and the possible terms of a Draft Protocol of Accession to the WTO.  The views expressed 
by members of the Working Party are su mmarized below in paragraphs 8 to 224. 
 ECONOMIC POLICIES  Monetary and Fiscal Policy
 
 
8. Some members of the Working Party requested  information on taxation policies in Croatia, 
and confirmation that the tax system did not differe ntiate between foreign a nd domestic ownership.  
Noting certain problems regarding the collection of taxes, some members asked Croatia to elaborate 
on the informal sector of the economy and measures taken to reduce tax evasion. 
 9. The representative of Croatia provided an up-date d description of the internal taxation regime 
in July 1996 (document WT/ACC/HRV/20).  The main  elements of the tax system were the Law on 
Profit Tax, the Law on Income Tax and the La w on Value Added Tax, replacing the Law on the 
turnover tax of products and servi ces on 1 January 1998.  Revenues from the profit tax and the income 
tax were divided between the State, municipalities,  townships and counties in fixed percentages in 
accordance with Article 45 of the Law on Financin g Local Self-Government and Local Government.  
In addition, local self-government units and government  units could also collect some local taxes in 
order to fill their budgets. 
 10. The representative of Croatia said that the size of the informal economy was unknown, but 
studies based on employment data suggested that the informal sector might add some 16 to 21 
per cent to the official gross domestic product.  Sectors with informal economic activity of some 
significance were trading, catering, construction, domestic appliance and car repair, commercial and 
residential property rental, business services and household personal services, while the processing industry and agriculture appeared to be less affe cted.  Steps taken to contain the informal sector 
included the development of an effective tax system  (in particular following the introduction of value-
added tax), lower taxes and impr oved labour relations within a st ronger regulatory framework and 
more effective labour inspection.  The financial poli ce was also stepping up operations to enforce the 
tax laws. WT/ACC/SPEC/HRV/7/Rev.4 
Page 4  
 
 Foreign Exchange and Payments
 
 
11. The representative of Croatia noted that the lega l basis for Croatia's foreign exchange regime 
was the Law on the Foundations on the Foreign Exch ange System, effective since 19 October 1993.  
The Law regulated the foreign exchange market, in  which all purchase and sale of foreign exchange 
took place.  Croatia had opted for a floating exchange  rate for its national cu rrency - the Kuna, pegged 
to the Deutsche Mark, and as from 1 January 1999 to the Euro - to enable the economy to adjust to 
external shocks.  The National Bank of Croatia was authorized to intervene in the foreign currency 
market to maintain a competitive exchange rate.  Exchange rates were published daily by authorized 
banks and the National Bank of Croatia.  
12. A member of the Working Party asked whether Croatia differentiated between exporters and 
other firms regarding the availability of foreign ex change or the rate of exchange and requested 
further information on Croatia's relationship with th e IMF, in particular whether any reservations had 
been made under Article XIV (Transitional Arrange ments).  The representative of Croatia said that 
Croatia did not differentiate between  exporters and other firms in currency exchange rates or in the 
availability of foreign exchange.  Croatia ha d become member of the IMF in December 1992 
following the model of partial succession.  As a me mber of the IMF Croatia maintained no reservation 
under Article XIV.  Croatia had accepted the obligati ons of Article VIII, Sections 2, 3 and 4 of the 
IMF Articles of Agreement with effect from 29 Ma y 1995.  Thus, Croatia did not maintain any 
restriction on payments and transfers for current international transactions. 
 13. A member of the Working Party inquired about  the Law on Credit Relations with Foreign 
Countries.  The representative of Croatia said that  the Law regulated borrowing from international 
financial institutions and lending or borrowing arra ngements with foreign partners by authorized 
banks, companies or other legal entities, and guarantees issued for the account of domestic and foreign entities.  A copy of the Law was provided to  the Working Party.  Resident juridical persons, 
including commercial banks, were allowed to borrow abroad, but were required to register loans, 
including commercial credits, with the National Bank of Croatia.  Resident le gal or natural persons 
could only extend credits to non-residents from prof its or credits obtained abroad.  Natural persons 
could borrow from non-residents in domestic or fo reign currency.  On the issue of assets and 
liabilities of former Yugoslavia, the representative of Croatia said that negotia tions were continuing.  
He added that Croatia had accepted calculations of the Internati onal Monetary Fund and had assumed 
28.49 per cent of the non-allocated debt of former Yugoslavia. 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 5 
 
 
 Investment Regime  
 
14. The representative of Croatia said that forei gn investment was regulated under the Company 
Law, entering into force on 1 January 1995.  Th e Law defined a foreign investor as any foreign 
national or legal person with a registered seat outsi de the Republic of Croatia.  The new legal regime 
had nullified a number of restrictions on foreign inve stment maintained under previous legislation (the 
Law on Foreign Investments).  No particular sector was closed to foreign investment.  However, 
investments in the military industry and telecommuni cations were subject to a special procedure.  
According to the Law on Telecommunications, foreig n investment in radio and television concessions 
was limited to 25 per cent of the capital of the c oncessionaire.  Inward portfolio investment was not 
restricted, except for central bank short- term securities in the primary market. 
 
15. The representative of Croatia noted that foreign direct investment by non-residents could take 
the form of joint venture or full ownership.  Regi stration with the commercial courts was required.  
National treatment applied to foreign investment  in principle, on condition of reciprocity.  
Amendments to the Company Law, abolishing the condition of reciprocity and thus providing full 
national treatment in respect of the establishmen t of commercial presence, had been adopted by 
Parliament in March 1999, and would be valid fro m the date of Croatia's accession to the WTO. 
 
16. The representative of Croatia said that Croatian residents were required to report investments 
abroad to the Ministry of Economy ex post for statistical purposes.  Acquisition of real estate in Croatia by non-residents was granted on the basis of reciprocity.  However, foreign exchange 
restrictions in practice prevented Croatian residents from purchasing real estate abroad.  
State Ownership and Privatization
 
 17. Some members of the Working Party asked Croatia  to provide information on its privatization 
programme and outline future plans in this area, noting that the present Law on Privatization did not 
concern public enterprises, banks, insurance compani es, cooperatives, marinas, hospitals and schools.  
Croatia was requested to provide an update on the status of current privatization activities, and an 
overview of plans concerning (i) privatization of  the Government's holdings in manufacturing and 
services enterprises, and (ii) ownership changes for firms and enterprises termed "socially owned", the 
form of ownership under the former Socialist Fe deral Republic of Yugoslavia.  The information 
should indicate the type of firms privatized (e.g. retail services, manufacturing, agricultural 
processing), the nature of the firms remaining in Stat e or other non-private form  of ownership, and the 
portion of Croatia's trade and economic activity  accounted for by these non-privatized holdings. 
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 6  
 
 18. The representative of Croatia said that the overall privatization process had begun with the 
passage of the Law on Transformation of Socially- Owned Enterprises on 21 April 1991.  Privatization 
involved the transformation of former "socially-owned " enterprises into joint-stock or limited liability 
companies with defined ownership structures.  Fo llowing independence, ten large infrastructure and 
utilities companies had come under direct State owne rship as "public enterpri ses" while the remaining 
socially-owned enterprises were to  be privatized in a two-stage process.  These enterprises submitted 
requests for commercialization to the Croatian Pr ivatization Fund and c ould request "autonomous 
transformation", i.e. propose their own priva tization plans, until 30 June 1992.  First-stage 
privatization had been organized by the Croatian Pr ivatization Fund, seeking wide participation by 
employees and the population at large by offering preferential rights for share subscription at substantial discount, and payment by instalments.  A total of about 3,000 enterprises had begun the 
process of "autonomous transformation".  By 30 June 1992, 2,444 en terprises had submitted 
proposals.  From April 1991 to October 1995, some 2,200 socially-owned enterprises, i.e. 75 per cent of the initial number of enterprises subject to privatization, accounting for more than 30 per cent of employment had been fully or almost entirely privatized.  A further 750 companies had been 
privatized in this manner between October 1995 and May 1999.  Shares in enterprises not privatized 
during the first stage had subsequently been transfer red to the Croatian Pension Funds (one third) and 
the Croatian Privatization Fund (two thirds).  Unde r the responsibility of the latter, shareholdings had 
been reduced by various methods, including auctions  at the Zagreb Stock Exchange, direct trade 
deals, tenders open to foreign investors, as well as  free distribution of shares to war veterans, widows 
and their families.  Shares in some specific enterpri ses had been earmarked to  be sold against frozen 
foreign exchange deposits (FFED).  Asked about the conditions for foreigners to participate in 
privatization tenders, the representative of Croatia said that the Company Law provided for national 
treatment of foreign investment, incl uding participation in privatization. 
 
19. Croatian citizens had participated actively in th e privatization;  some 600,000 small investors 
had acquired shares in a total of more than 2,500 enterprises.  The Governme nt also encouraged the 
establishment of Privatization Investment Funds (P IF's).  These were specialized funds collecting 
vouchers and coupons in exchange for shares in compani es put up for mass privatization.  Contrary to 
other investment funds, the PIF's were not allo wed to exchange shares against frozen foreign 
exchange deposits.  20. The second phase of the privatization process had been implemented through mass voucher 
privatization.  This privatization had, in effect, b een a distribution of shares not sold in the first phase 
of privatization.  Vouchers had been distributed  to individuals affected by the hostilities such as 
injured servicemen, war widows and their families, and other displaced persons and refugees.  The 
shares to be represented by vouchers had been held in the portfolio of  the CPF;  shares held by the  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 7 
 
 
 State pension funds had not been included in the pr ocess.  In total, more than 500 companies had their 
shares sold through voucher privatization.  The firs t round of vouchers had been distributed in June 
1998, and the process had been concluded by Septem ber 1998.  Voucher privatization had ensured the 
privatization of 50 to 60 per cent of the residual portfolio of CPF, including shares in 30 to 50 top-quality companies reserved for strategic investors or public offerings, constituting the final step in the 
complete privatization of the residual portfolio .  With voucher privatization completed, the 
privatization process had virtually reached the end, except for the small residual CPF portfolio and the 
large State-owned enterprises.  The representative of Croatia provided deta iled information on the 
privatization process in documents WT/A CC/HRV/40, WT/ACC/HRV/51 (pp.5-26) and 
WT/ACC/HRV/54 (pp.3-12).  Further information on pr ogress in privatization in Croatia is provided 
in Table 1(a)-(c). 
 
Table 1(a):  Information on the privatiz ation process in Croatia (as per May 1999)
 
 100% 
State 
Owned 50-99% 
State 
Owned 25-50% 
State 
Owned up to 
25% 
State 
Owned Fully 
PrivatizedTotal Total  
(nc. 
included) Total 
(bank-
ruptcies 
included) 
No of Companies 44 53 146 502 1,856 2,601 2,726 2,950
Per cent of total 1.69 2.04 5.61 19.30 71.36 100  
Per cent of total (incl. 
non – commercialized) 1.61 1.94 5.36 18.42 68.09   
Per cent of total (incl. 
non – commercialized and bankruptcies) 1.49 1.80 4.95 17.02 62.92   
Total equity (HRK 
million) 3,147.7 1,845.5 5,709.8 19,541.8 57,487.5 87,732.3  
Per cent of total equity 3.9 2.10 6.51 22.27 65.53 100  
Average equity per 
company (HRK 
million) 71.5 34.8 39.1 38.9 31.0   
No of shareholders not 
compar
able 5,269 22,560 222,851 227,011   
Average No of Sh. (per 
Company) not 
compar
able 99.42 154.52 443.93 122.31   
 
No. of Companies Covered by Transformation Law 2,950 
- of which commercialized 2,825 - of which non commercialized 125 Liquidations and Bankruptcies 224 
  
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 8 
Table 1(b):  Information on the privatization process in Croatia (as per May 1999), by sector  
 Enterprises in privatization Privatized Enterprises No n-privatized En§terprises Enterprises in liquidation and 
bankruptcies 
Sector No. Equity (DEM) % of total 
equity 
included 
in 
privati-
zation No. Equity (DEM) % of 
sector's 
Equity No. Equity (DEM) % of 
sector's 
Equity No. Equity (DEM) % of 
sector's 
Equity 
Industry and mining 832 11,422,388,209 44.70 658 8,932,027,911 78.20 68 1,883,817,247 16.49 106 606,543,051 5.31 
Agriculture and fishing 249 2,001,849,648 7.83 196 1,048,914,286 52.40 26 652,687,931 32.60 27 300,247,431 15.00 
Construction 297 1,185,996,138 4.64 242 903,996,519 76.22 28 139,153,518 11.73 27 142,846,100 12.04 
Trade 513 4,487,864,122 17.56 433 4,087,737,546 91.08 41 229,970,803 5.12 39 170,155,773 3.79 
Tourism and catering 241 4,395,917,337 17.20 203 4,220,684,494 96.01 32 168,929,018 3.84 6 6,303,824 0.14 
Housing construction and 
utilities 194 221,338,662 0.87 180 196,192,095 88.64 7 3,301,666 1.49 7 21,844,900 9.87 
Communal utilities 36 34,612,220 0.14 33 32,882,020 95.00 3 1,730,200 5.00  
Financial and other 
services 359 1,577,084,863 6.17 325 1,232,295,514 78.14 25 305,378,451 19.36 9 39,410,898 2.50 
Education, culture and 
publishing 89 210,391,650 0.82 75 178,265,028 84.73 11 28,889,422 13.73 3 3,237,200 1.54 
Health and social care 15 17,762,015 0.07 13 16,367,300 92.15 2 1,394,715 7.85  
Total 2,825 25,555,204,865 100.00 2,358 20,849,362,714 81.59 243 3,415,252,973 13.36 224 1,290,589,177 5.05 
Note:  non-commercialized Enterprises are not included in table, No. of Enterprises covered by Transformation Law = 2,950 
 "Privatized enterprises" means companies in  which State ownership does not exceed 50 per cent,  The percentage refers to the s hare of private ownership,  "Non-
 privatized" means still government controlled, and the percentage refers to the share of private ownership, Liquidations and b ankruptcies are stated in percentages in 
 relation to each total activity,   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 9 
 
 
 Table 1(c):  Net proceeds from privatization  
DM million 
 1991 1992 1993 1994 1995 1996 1997 1998* Total 
Cash 4.2 86.6 123.4 208.3 177 269.4 154.7 170.7 1194.3
Bonds for 
Reconstruction** - 48.3 28.1 41.9 1.4 0.5 0.8 0.1 121.1
Swaps with FFCD's - 157.4 455.6 741.9 257.7 253.7 152.1 37.7 2056.1
Total 4.2 292.3 607.1 992.1 436.1 523.6 307.6 208.5 3371.5
* 1 January -31 July 1998, Cash proceeds include also earnings from the sale of PLIVA's shares on 
 international market which were transferred through the CPF account 
** High-yield bonds in hard currency issued by the Ministry of Finance, which can be swapped for shares  at 30 per cent discount 
 
21. The representative of Croatia added that the Law on Transformation and Privatization of 
Socially Owned Enterprises had also applied to ag riculture.  Former socially-owned farms which had 
not filed requests for "autonomous transformation" ha d been transferred to the Croatian Privatization 
Fund.  These farms were currently organized as  joint-stock or limited liability companies and 
managed by their respective Management Boards.  Some 180 cooperative enterprises would also be 
privatized under the Law on Farm Cooperatives.  In some cases agricultu ral enterprises had been 
divided into smaller independent units.  All agri cultural trading and processing enterprises had been 
privatized.  Croatia intended to privatize th e entire food procurement and processing system. 
 
22. Sectors not covered under the Law on Privatiza tion were privatized under other provisions.  
Shares in banks were sold by their founding institut ions or, in case of financially troubled banks, with 
the assistance of the Agency for Bank Rehabilit ation.  The Law on Sea Ports provided for the 
privatization of port services and the award of concessions;  the actual port was regulated by the port 
administration.  Medical services and other activities within hospitals and clin ics, but not the property 
or infrastructure, could be privatized in accordan ce with the Statute of Conditions for the Lease of 
Medical Facilities for Primary Medical Care and Ho spitals.  Public educational facilities would be 
privatized in the near future.  The Law on Priva tization included a provision on the privatization of 
public enterprises (Article 13, Paragraph 13).  Decisi ons had been taken to proceed with step-by-step 
privatization of Croatian Railways (HZ), Hrvatske Sume (Croatian Forests), the Official Gazette, 
Croatian Petroleum Company (INA), Croatian Radi o and Television Broadcasting (HRT), Croatian 
Electricity Company (HEP), Croatian Telecommunica tions (HT), the Coastal Shipping Company and 
Plovput (a lighthouse company).  He indicated that the process of privatizing public utilities and large 
State-owned enterprises had begun in 1999.  Each co mpany would be privatized in accordance with a 
special law to be adopted by Parliament.  The law would determine, for every enterprise, the share of 
the company to be privatized, i.e, offered to fore ign and domestic investors.  Investors would be 
chosen on the basis of public tender in a transparen t and legally-based manner.  Prior to the adoption 
of each law, and the initiation of the process of  privatization, his Government would select a 
privatization consultant in an in ternational tendering procedure.  Consultants for Croatian Telecom WT/ACC/SPEC/HRV/7/Rev.4 
Page 10  
 
 and banks (Privredna banka , Splitska banka and Rije čka banka) had already been selected.  He 
envisaged that CPF ownership over companies would evaporate within the next two years, and the 
privatization of large State-owned enterprises woul d be achieved over a period of some five years. 
 23. The representative of Croatia said that Croatia had also adopted a Law on Compensation for 
Expropriated Assets.  The law foresaw the restitution of assets either in kind, through shares reserved 
in the Croatian Privatization Fund or by payment from the Croatian Compensation Fund. 
 24. A member held the view that information provid ed by the representative of Croatia, including 
the information contained in document WT/ACC/ HRV/40, was useful but not sufficiently 
comprehensive to cover important aspects of Stat e ownership and privatization in Croatia.  The 
Working Party should have been in formed that, while agriculture wa s almost exclusively in private 
hands, a significant number of industries and enterp rises remained under State control or had been 
transferred to private ownership through a non-tran sparent and non-competitive privatization process.  
This member stated that Croatia maintained legisl ation which prevented the privatization of important 
assets in various forms to potential owners of non- Croatian origin.  The same legislation did not 
recognize previously acquired property rights, and prevented the exercise of these rights.  25. In reply, the representative of Croatia said that Croatia had responded to questions and issues 
raised by members of the Working Party, and its pr ivatization process had been described in detail in 
various accession documents.  Croatia's privati zation process had been assessed by independent 
sources to be one of the most successful among countries in transition.  Concerning legislation regulating previously acquired prope rty rights, the representative of Cr oatia said that Croatia did not 
discriminate between Croatian or non-Croatian owners  of property rights on assets acquired legally in 
Croatia by legal persons.  The only specific li mitation was a temporary ban on the exercise of 
ownership rights on previously "s ocially-owned" assets located in Cr oatia by legal persons originating 
in the other successor countries of the former Social ist Federal Republic of Yugoslavia (SFRY).  This 
measure had been introduced to prevent privatiza tion of assets acquired under the vague concept of 
"social ownership" until the relevant  legal ownership issues had been clarified in each particular case.  
According to former Yugoslav legislation, socially -owned assets could have been acquired without a 
payable legal transaction, for example, when assets were granted to a legal persons by decision of 
local or higher authorities, or the enterprises them selves.  The key issue at hand was to determine 
which assets subject to former social ownership coul d now be considered in private ownership with 
clear title based upon adequate payment for their acquis ition,.  Croatia therefore suggested that strict 
distinction should be maintained between universal  property rights, where Croatia maintained no 
restrictive or discriminatory practice which might divert from MFN practice, and property rights based on the concept of social ownership in form er SFRY.  The representative of Croatia called upon  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 11 
 
 
 the Member in question to acc elerate ongoing bilateral negotiati ons outside the WTO to find a 
mutually acceptable solution that would address the interests and concerns of both parties. 
 
26. The representative of Croatia confirmed his country 's readiness to ensure the transparency of 
its ongoing privatization programme and to keep  WTO Members informed of its progress in the 
reform of its transforming economic and trade regime .  He stated that his Government would provide 
annual reports to WTO Members on developments in  its programme of privatization as long as the 
privatization programme would be in existence along the lines of that provided to the Working Party.  
He also stated that his Government would prov ide annual reports on other issues related to its 
economic reforms as releva nt to its obligations under the WTO.  The Working Party took note of 
these commitments. 
 
Pricing Policies  
 27. The representative of Croatia said that price contro ls had been liberalized in recent years.  In 
general, companies determined prices freely without any government interference.  Existing controls 
were applied in accordance with the Law on Excepti onal Measures of Price Controls.  Direct price 
controls could be prescribed to prevent negative effects of changes in prices for basic goods and 
services which had a direct impact on the cost of livi ng, or to prevent monopoly pricing (Article 4).  
This provision underlined the exceptional character of direct price controls, which could only be 
implemented for a limited period of time and only if the negative effects could not be eliminated by 
other economic policy measures.  Having introduced su ch controls, the Government was also obliged 
to take appropriate measures which would eventual ly allow the elimination of the price controls. 
 
28. The Government, upon a proposal by the Ministry of Economy, could implement direct price 
controls either by fixing maximum prices;  or dering price reductions to a certain level;  or by 
requiring economic agents to report price changes in  advance.  In case of prior reporting of price 
changes, the Ministry of Economy could object to the new prices within 15 days from the date the 
prices were reported, and request a company to recons ider the proposed prices.   The Law provided for 
penalties amounting to HRK 5,000- 20,000 (US$800-3,000) for compan ies changing prices against the 
objections of the Ministry, and the Government could order the prices be brought back to the original 
level.  A company objecting to such administrativ e action could institute proceedings and request 
compensation for the damage incurred.  All regul ations regarding price control measures were 
published in the Official Gazette of th e Republic of Croatia "Narodne Novine". 
 29. Government Regulations determined the goods and services subject to these measures.  At 
present, the only direct price controls in force we re obligatory prior reporting of price changes for WT/ACC/SPEC/HRV/7/Rev.4 
Page 12  
 
 milk for daily consumption;  fer tilizers;  wheat flour;  bread type 850;  petroleum products;  natural 
gas;  electric energy;  radio and television subscrip tions;  transporta tion of passengers and freight by 
local rail or maritime line traffic;  standard le tters and postcards;  tele phone impulse and telephone 
subscription;  road, bridge and tunnel tolls;  offi cial forms;  roundwood logs; cubic wood;  and the 
services of loading and transportation of wood sor tings.  The producers of goods  and services subject 
to current controls were mainly public utilities or State-owned legal entities.  Goods and services 
currently subject to price control in Croatia are listed in Table 2. 
 
Table 2:  Goods and Services Subject to State price control
 
Classification (Harmonized 
System or Common 
Product Classification) Product or Sector 
HS 0401 Milk and cream, not concentrated  nor containing added sugar or other 
sweetening matter, 
HS 1101.00 Wheat or meslin flour, 
HS 2710.0012 ---- lead-free motor petrol 
HS 2710.0013 ---- other motor petrol 
HS 2710.0016 ---- petrol for processing or mixing (primary or base) 
HS 2710.0022 ---- kerosene type jet fuel 
HS 2710.0031 ---- gas oils 
HS 2710.0032 ---- extra light and light special fuel oil 
HS 2710.0033 ---- fuel oils with low sulphur content 
HS 2710.0034 ---- other fuel oils 
HS 2711.11 --Natural gas 
HS 2713.20 - Petroleum bitumen  
HS 2716.00 Electrical energy 
HS 3102 Mineral or chemical fertilisers, nitrogenous, 
HS 3105 Mineral or chemical fertilisers c ontaining two or three of the fertilising 
elements nitrogen, phosphorus a nd potassium; other fertilisers; goods 
of this Chapter in tablets or simi lar forms or in packages of a gross 
weight not exceeding 10 kg, 
HS 4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; 
wood in chips or particles; sawdust and wood waste and scrap, whether 
or not agglomerated in logs, briquettes, pellets or similar forms, 
HS 4403 Wood in the rough, whether or not  stripped of bark or sapwood, or 
roughly squared, 
CPC 9613 Radio and TV services 
CPC 7111; 7112 Transportation of cargo an d passengers by domestic railway 
CPC 7442 Highway, bridge and tunnel operation services 
CPC 7211; 7212 Domestic passenger transporta tion by coastal water ferries; domestic 
freight transportation by coastal  water ferries  
CPC 7511 Postal services: standardized lette rs and postcards in the domestic mail 
system  
CPC 7521 Public local telephone services  
CPC 7123 Transportation of timber assortments 
Local self-government bodies can prescribe price c ontrol (Article 11 of the Law on Exceptional 
Measures of Price Controls) for : 
HS 2716.00  Heating energy  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 13 
 
 
 Classification (Harmonized 
System or Common 
Product Classification) Product or Sector 
CPC 82101; 82102 Housing rents and residential services 
CPC 71211  Urban and suburba n regular transportation  
CPC ex 18000 drinking water supply 
CPC ex 94010 Waste water drainage and purification 
CPC ex 887 Gas supply 
CPC ex 94030 Public cleaning 
CPC 94020 Municipal solid waste disposal 
CPC 97090 Maintenance of public grounds 
CPC 97090 Maintenance of not classified roads 
CPC 97090 Management and maintenance of retail sale market places 
CPC 97030 Maintenance of cemeteries a nd crematories and undertakers services 
CPC 87409 Provision of chimney services 
 
30. Local administrative bodies were responsible for direct and indirect price controls of public 
utilities, i.e. central heating, water supply, sewag e and other sanitary services, distribution of gas, 
public transport, etc.  However, the Government  could prescribe such measures to prevent market 
disturbance or monopoly behaviour if local administrative bodies did not take action. 
 
31. Asked whether the Law on Exceptional Mesures of Price Controls could authorize the 
application of price controls and reporting re quirements on prices of imports and exports, the 
representative of Croatia said that the Law itself did not include any specific article or provision 
regarding price controls on imports  or exports, but the Government had adopted a by-law regulation 
which excluded imports and exports from price cont rol measures.  Thus, the current requirement of 
prior reporting of price changes for certain goods and services was not applied to imports or exports. 
 32. The representative of Croatia st ated that the prices of goods and services in every sector of 
Croatia were determined freely by market forces with the exception of those noted in Table 2. 
 33. The representative of Croatia stated that in the application of price controls or State guidance 
now or in the future, Croatia would apply such measures in a WTO-consistent fashion, and take 
account of the interests of exporting WTO member s as provided for in Article III:9 of the GATT 
1994.  Croatia would publish the list of goods and ser vices subject to State controls any that are 
introduced or re-introduced in the future in its O fficial Journal, including any changes in the list 
provided of current requirements in place.  Th e Working Party took note of this commitment. 
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 14  
 
 Competition Policy
 
 
34. The representative of Croatia said that the Law on the Protection of Market Competition had 
been adopted by Parliament on 27 June 1995.  Certain practices, including price fixing, market sharing and tying-in arrangements, were generally or specifically prohibited, but the rule of reason 
applied and group exemptions could be granted, for example for contracts related to specialization, 
exclusive or selective distribution, exclusive purchasing, franchising and research and development.  
The Law applied to all firms operating in Croati a regardless of the form of incorporation or 
ownership.  An indicative list of State-owned or public enterprises which could qualify for exemption 
was found in an Annex to the Law on Public Purc hasing.  However, until now no entities or legal 
persons owned, managed or under the authority of the State had been specifically or explicitly 
exempted from the Law on the Protection of Market  Competition.  In response to specific questions 
on the regulation of export cartels, he confirmed that Article 4 (2) of the Law limited its scope to anti-
competitive practices affecting the home market prov ided international agreements signed by Croatia 
did not stipulate otherwise.  Croatia had establis hed a Competition Protection Agency to enforce 
legislation.  Cases would be decided by its Council. 
 FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
35. The representative of Croatia said that the centr al Government was responsible for a number 
of functions including internationa l relations, economic policy and customs matters.  Each Ministry 
was responsible for proposing new or amended legislation within its area of competence.  Following 
approval by the Government draft legislation would be forwarded to Parliament for adoption.  Most 
international agreements were s ubject to ratification by Parliame nt.  International agreements, 
including the Protocol of Accession of Croatia to  the WTO once ratified by the Croatian Parliament, 
would become an integral part of the internal  legislation and would have precedence over domestic 
laws and other acts.  Although the possibility of di rect application of international agreements in 
Croatia's legal system existed, the WTO provisi ons were contained in specific laws covering 
particular areas stipulated in the WTO Agreements. 
 36. Concerning the right of appeal of administrative decisions, in particular in relation to the 
"independent tribunal" provision of  Article X of the GATT 1994, the representative of  Croatia said 
that the right of appeal was stipulated in the Law on Trade, the Customs Law, the Company Law and 
other laws related to issues addressed in WTO Agre ements.  He confirmed that Croatian legislation 
provided an automatic right of appeal by trader s and other natural and legal persons in all WTO 
related matters.  An appeal by a trader could be  lodged with the High Administrative Court (HAC), 
which was an independent tribunal in accordan ce with Article X of the GATT 94.  The High  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 15 
 
 
 Administrative Court was part of Croatia's regular judicial system. Being part of the judicial branch, 
the HAC was independent from State administrative bodies and the executive branch in general.  The 
role of the HAC was to ensure legal protection of  traders and other legal and natural persons in 
matters related to rulings made by administra tive bodies and agencies.  In doing so, the HAC, 
following an appeal by the plaintiff party, rule d on whether a decision or act issued by the 
administrative body had been made in accordance with  the law and procedures set therein.  Rulings of 
the HAC were final.  Appeals against decisions  or acts of administrative bodies could be lodged 
automatically with the HAC for all WTO issues, ex cept customs and tax related matters.  In such 
cases, the first complaint (or appeal) against an act  or decision issued by the lower administrative 
body (customs office or local tax authority) shou ld be lodged with the central customs or tax 
authorities (the Customs Directorate and the Tax Director ate of the Ministry of Finance).  If the trader 
was not satisfied with the ruling made by the central  authorities, he could file an automatic appeal 
with the HAC.  This system provided traders a proce dure of direct appeal of administrative rulings to 
authorities not bureaucratically affiliated with  the agency that had issued the ruling. 
 
37. The representative of Croatia confirmed that fro m the date of accessi on Croatia’s laws would 
provide for the right to appeal administrative rulin gs on matters subject to WTO provisions to an 
independent tribunal in conformity with WTO obligations, including Article X:3(b) of the 
GATT 1994.  The Working Party took note of this commitment. 
 
38. The representative of Croatia said that Croatia had established a system of local 
self-government and administration based on the European Charter on Local Self-government.  Within this system, Croatia was divided into 21 counties (including the City of Zagreb), subdivided into 421 municipalities, 50 townships and two special  self-governing districts.  The activities of local 
government units were financed in part from local dues and fees and income from own assets, in part 
from fixed percentage shares of revenue from the income tax, the profit tax, a tax on real estate transactions and a tax on gambling.  Property taxes collected by the counties included taxes on motor 
vehicles and vessels, raised in fixed kuna amounts ranging from the equivalent of DM 30 to 200 per 
year for cars, DM 20 to 100 for motorcycles, and DM 40 to 550 for vessels. 
 39. Some members noted that local authorities coul d levy taxes on certain goods and services and 
asked what control the central government could exerci se to ensure that the taxation practices of local 
authorities would be consistent with  WTO obligations.  The representa tive of Croatia replied that only 
the central authorities (the Government and Parlia ment) could propose and a dopt legislation of any 
kind, including in the area of taxation.  Accordi ng to the Law on Funding Units of Local Government 
and Administration, local units had the right to collect taxes, but not to prescribe or levy them.  Thus, as local authorities could only collect taxes establishe d by law, their practices would be in compliance WT/ACC/SPEC/HRV/7/Rev.4 
Page 16  
 
 with WTO obligations.  Legal or natural persons providing catering services paid local and municipal 
consumption tax in accordance with Article 32 of  the Law on Funding Units of Local Government 
and Administration.  The tax amounted to maximum 3 per cent of the retail price of beverages sold in 
restaurants, bars, etc.  40. Decisions on concessional rights were subject to shared responsibility between central and 
local governments.  Concessions were regulated by the Law on Concessions, unless special statutes 
provided otherwise, and could be granted for up to 99 years to a domestic or foreign person.  
Decisions on the granting of concessions were take n by the House of Representatives (Parliament) on 
the proposal of the Government, and upon the opinion of the local administrative body where the concession would be exploited.  Pa rliament could delegate the aut hority to grant concessions to the 
Government.  The decision to grant a concession was required to be based on public bidding or 
soliciting of tenders to select the successful candida te.  Following the deci sion to grant a concession 
by Parliament or the Government, the executive branch of the administrative body concluded a 
contract with the concessionaire, regulating th e conditions under which a concession could be 
exploited or terminated.  Special laws could provi de different conditions, as an exemption to this 
general law, to obtain or exploit a concession.  For example, local road concessions were granted by 
local authorities, and the Law on Sea Ports provided for concessions to be granted by the port authority. 
 
41. The representative of Croatia confirmed that  sub-central administrative authorities and 
entities, e.g. local administrative bodies, have no jurisdiction or authority to establish regulations over issues of subsidies, taxation, trade policy or any other measures covered by WTO provisions in 
Croatia independent of the central authorities and that application of these measures are exclusively 
the responsibilities of the executive and legislative br anches of the central government.  He confirmed 
that the provisions of the WTO Agreement, includi ng Croatia's Protocol, shall be applied uniformly 
throughout its territory, including in regions engagi ng in border trade or frontier traffic, special 
economic zones, and other areas where special regimes for tariffs, taxes and regulations are 
established.  He added that when apprised of a situation where WTO provisions were not being 
applied or were applied in a non-uniform manner,  central authorities would act to enforce WTO 
provisions without requiring affected parties to pe tition through the courts, and will eliminate or 
nullify measures taken by sub-central authorities in Croatia that are inconsistent with WTO provisions from the date of accession.  The Working Party took note of these commitments. 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 17 
 
 
 POLICIES AFFECTING TRADE IN GOODS 
 
Trading Rights  
 42. The representative of Croatia said that Croatia  had applied temporarily the Law on Foreign 
Trade Operations of the former Yugoslavia sin ce October 1991.  The Law laid down a number of 
conditions regarding registration of  companies, reporting requirements, restrictions on the right to 
engage in foreign trade, and rules for special tr ade operations.  The Law on Foreign Trade Operations 
had been superseded by the Company Law, enteri ng into force on 1 January 1995, and the Law on 
Trade, in effect since February 1996.  The Co mpany Law contained exhaustive and precise provisions 
concerning the establishment, incorporation and regi stration of stock corporations, limited liability 
companies, general or limited partnerships, and so le proprietorships.  The restrictions or special 
conditions governing foreign trad e operations under the former Law on Foreign Trade Operations had 
been abolished with the new Law on Trade and the Company Law;  for example, companies engaging 
in foreign trade were no longer required to regi ster separately with the Commercial Court, and 
companies were now free to re-export, import or invest abroad without approval of the Ministry of 
Economy.  43. The representative of Croatia added that although the former Law on Foreign Trade 
Operations had limited or conditione d the freedom of trade, foreign trade had never been subject to 
State monopoly.  The State did not restrict the right of persons or entities to import or export under present legislation.  The registration criteria to  be met by domestic or foreign enterprises and 
individuals wishing to engage in foreign trade were set out in Article 4 of the Law on Trade, 
providing for free trade and equal market conditions. 
 
44. All natural and legal persons wishing to e ngage in business activities were required to 
establish a company and register it with a Commercial Court before the commencement of their business activity.  Once incorporated and entered in  the Commercial Court registry, a company could 
perform all business activity it had chosen to li st in its application for a Commercial Court 
registration.  Any company wishing to perform a trade activity, including importation and exportation, 
was free to enter this activity in its incorporati on act.  A company seeking incorporation to trade in 
certain sensitive goods for reasons of health, safety or  security - such as arms , explosives, medicines, 
drugs, narcotics, and toxins – was required to submit to the Co mmercial Court an activity licence 
issued by a competent authority before incorpora tion of the company.  Following the incorporation 
with a commercial court, such a company would be eligible to apply for import and export licenses 
for these products.  Thus, Croatia did not maintain any special registry of authorized trading companies nor any special registry of authorized impor ters or exporters of goods subject to licensing.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 18  
 
 In general, all companies incorporated for trade ac tivities were eligible to apply for an import license 
each time they would wish to import goods subject to licensing.  First time applicants for import 
licenses were required to submit a copy of their Commercial Court incorporation act to allow the 
competent authority to ascertain, before issuing an import license, that the company actually existed. 
The company would not need to incl ude the copy of the incorporati on act in case of any subsequent 
application. 
 
45. A member asked whether Croatia had an activity  licensing regime and, if so, Croatia was 
requested to describe the criteria applied to receive such a licence, and the procedures used to grant it, 
with particular reference to (i) activities involvi ng importation;  and (ii) the WTO Agreement on 
Import Licensing Procedures.  In reply, the representa tive of Croatia said that Croatia maintained an 
activity licensing regime of limited scope for produc ts affecting public health and safety, covering 
activities relating to arms and ammunition, expl osive substances, medicines and pharmaceutical 
products, toxins, and narcotics.  Companies wish ing to do business in these areas should obtain an 
activity licence prior to registration at the comme rcial court for such business.  Conditions and 
requirements to be fulfilled by enterprises dealing in such products were stipulated in the Law on 
Arms, the Law on Explosive Substances, the Law on Medicines and Pharmaceutical Products, the 
Law on Toxins, and the Law on Production and Activ ities with Narcotics.  Detailed information on 
the activity licensing regime, including its scope, procedures, requirements and criteria applied was 
provided in document WT/ACC/HRV/51, pp. 30-33.  He added that Croatia did not charge licensing 
fees for any business activity.  Information provi ded by Croatia on import licensing procedures 
(document WT/ACC/HRV/25) indicated, in his view, that Croatia's regime was in full compliance 
with the WTO Agreement on Import Licensing Procedures.  
46. The representative of Croatia confirmed that no restrictions existed on the right of foreign and 
domestic individuals and enterprises to import and export goods and services into Croatia's customs 
territory, except as provided for in WTO Agreements.  He confirmed that indi viduals and firms were 
not restricted in their ability to import or expor t based on their registered scope of business and the 
criteria for registration of companies in Croatia were  generally applicable and published in the official 
journal of Croatia.  47. The representative of Croatia confirmed that fro m the date of accession Croatia would ensure 
that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied 
on such rights would be in full conformity with  its WTO obligations, including Articles VIII:1(a), 
XI:1 and III:2 and 4 of the GATT 1994 and that it woul d also implement such laws and regulations in 
full conformity with these obligations.  The Working Party took note of this commitment. 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 19 
 
 
 A. IMPORT REGULATION 
 
Customs Tariff  
 48. The representative of Croatia said that Croa tia had been an active member of the World 
Customs Organization since gaining full membership  on 1 July 1993.  Croatia had joined the 
International Convention on the Harmonized Commodity Description and Coding System on 
26 September 1994.  The Customs Law, the Customs Tariff Law and the Law on Customs 
Administration constituted the legal framework for the customs regime of Croatia.  The right of 
appeal against decisions of Cust oms was ensured in Articles 242 to 244 of the Customs Law, and its 
Articles 249 to 253 regulated the subsequent settleme nt of accounts, payment and refund of customs 
duties.  The Customs Law had been applied with minor changes since 1991.  Parliament had passed a 
new Customs Law on 30 June 1999.  The Law c ontained provisions on customs valuation and 
customs procedures in full conformity with the relevant WTO Agreements.  
Ordinary Customs Duties
 
 49. A member asked Croatia to provide a descripti on on how the current tariff had been formed 
by incorporating miscellaneous border charges and im port taxes in the original customs tariff, a chart 
on the current structure of the tariff in terms of tariff lines and duty levels , information on the number 
of lines subject to ad valorem , specific or mixed tariffs, as well as information on the weighted and 
simple average of the current applied rates.  50. The representative of Croatia replied that th e present Customs Tariff Law had been adopted 
by Parliament in June 1996 and had entered into force on 1 July 1996.  According to the Law, the 
nomenclature of the customs tariff was based on the International Convention on Harmonised Commodity Description and Coding System.  The customs tariff consisted of 7,059 tariff lines.  All tariff items were subject to ad valorem tariffs, and 590 tariff items were subject to compound rates 
(ad valorem and specific duty).  The ad valorem  rates range from 0 to 25 per cent according to the 
structure described in Table 3.  The simple average tariff rate was 12.1 per cent, and the weighted 
average tariff amounted to 9 per cent based on 1998 import data. WT/ACC/SPEC/HRV/7/Rev.4 
Page 20  
 
 Table 3:  Tariff structure
 
Tariff rate (per cent) Number of tariff items 
0 505 
0 – 5 3,038 
5 – 10 828 
10 – 15 883 
15 – 20 1,260 
20 and above 545 
 
51. The Customs Tariff Law had abolished the appli cation of non tariff measures, terminating the 
Law on Special Levies on Import of Agriculture and Food Products, and Article 35 of the Customs 
Law (prescribing a 1 per cent customs registration fee on imported goods), as well as a special import 
levy of 10 per cent.  The tariff rates determined by the current Law were governed by the basic 
criteria that (i) tariffs were the only trade policy measure applied to protect domestic industrial and 
agriculture production;  (ii) tariffs were consider ed measures of trade policy, not fiscal measures;  
(iii) tariffs were a function of ec onomic development, in particular, the technological rehabilitation of 
the economy;  (iv) the average tariff should be at th e level applied in other countries in transition;  
(v) rates exceeding 15 per cent were applied only to protect industries and activities seriously damaged by war;  (vi) minimum tariff rates were applied to imported raw materials;  and (vii) all 
non-tariff measures applied to imports were no longer  implemented with the entry into force of the 
Customs Tariff Law.  Other Duties and Charges Levied on Im ports but not on Domestic Production
 
 
52. The representative of Croatia said that all duti es and charges other than ordinary customs 
duties had been abolished with the introduction of the new customs tariff on 1 July 1996.  Among the 
abolished duties and charges were a 10 per cent ch arge on imports, a 1 per cent customs registration 
fee, and import levies affecting various agricultu ral and food products (a list was provided in 
document WT/ACC/HRV/7/Add.1).  For the time be ing, imported cement was subject to an 
administrative stamp tax of HRK 60 per customs declaration, a HRK 170 quality control fee, and a weight-based fee for sampling and testing of imported cement.  With the implementation of the new Law on State Inspectorate (early October 1999) and the associated implementing regulations (end 
October 1999), he confirmed that Croatia would re move the weight-based fee, and fees for quality 
control would be based on the cost of the service rendered.  The representative of Croatia confirmed 
that the authorities of Croatia and the Former Yugoslav Republic of Macedonia had agreed that 
Croatia would eliminate its 1 per cent customs duty at the latest by the date of accession, and the Former Yugoslav Republic of Mace donia would eliminate its 1 per cent customs evidence fee as from 
1 January 2000.  He further confirmed that a 1 per cent customs evidence fee on imports from the  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 21 
 
 
 Federation of Bosnia and Herze govina had been abolished on 15 May 1999 when MFN trade had 
been reintroduced between Croa tia and Bosnia and Herzegovina. 
 
53. The representative of Croatia confirmed that Cr oatia levied no duties and charges on imports 
other than ordinary customs duties.   Any such charges applied to imports after accession would be in 
accordance with WTO provisions.  He confirmed th at Croatia would not list in its schedules of 
commitments for goods any other duties and charges within the meaning of Article II:1(b) of the 
GATT 1994, binding all such duties and charges at "zero".  Tariff Rate Quotas, Tariff Exemptions
 
 
54. The representative of Croatia said that the Cust oms Law provided the legal framework for the 
establishment of tariff rate quotas, on an MFN basi s, in exceptional cases.  Tariff rate quotas were 
introduced by special regulation adopted by the G overnment.  Croatia had implemented tariff rate 
quotas as part of its free trade agreements with  Slovenia and the Former Yugoslav Republic of 
Macedonia.  These tariff rate quotas were applied fo r agricultural and food products.  Administration 
and allocation of the tariff rate quotas were based on three criteria which were always combined;  (i) 
allocation to traditional traders, with at least 10 per cent reserved for new entrants, (ii) regional 
criteria (equal treatment of importers from all Croa tia's regions), and (iii) the needs of the domestic 
processing industry.  In the future, the main criteria would be first come/first served.  On a further 
point, the representative of Croatia confirmed that  all MFN tariff rate quota access provided for under 
Section I, Part I-B of Croatia's Schedule of C oncessions and Commitments on Goods will be strictly 
in addition to any preferential tariff quota access that may be provided, where such MFN and 
preferential access affect the same products. 
 
55. The representative of Croatia said that exemp tions from payment of customs duty could be 
granted in accordance with the provisions and proc edures of the Customs Law.  Article 18 of the 
Customs Law established regulations for goods not subject to customs payment such as goods in 
transit, international tender docum ents and other printed or record ed material related to culture, 
science, education, etc.  Further exemptions were outlined in Articles 24 to 33 for items imported by 
foreign diplomatic and consular o ffices in Croatia in accordance with  their needs and requirements for 
official purposes;  articles for personal use when  travelling abroad;  goods received for free from 
abroad by legal or natural persons;  goods destined  for disaster relief and humanitarian purposes;  and 
importation of industrial and other e quipment related to foreign invest ment (Article 29).  Exemptions 
could also be granted under Article 54 - impor ts on the basis of tariff quotas - and Article 59 
(commitments under international agreements).  He added that the tariff exemptions were non-
discriminatory and of a general nature. WT/ACC/SPEC/HRV/7/Rev.4 
Page 22  
 
  
Fees and Charges for Services Rendered
 
 
56. The representative of Croatia said that Croatia charged a stamp tax at a flat rate of HRK 60 
per customs declaration (HRK 50 for the declaration, and HRK 10 for the registration document) in accordance with the Law on Administrative Fees.  The stamp tax covered registration of the 
consignment, documentation contro l, registration and certification of documents, inspection of the 
vehicle and goods, data entry, calculation of duties an d taxes, and issuance of the receipt.  In addition, 
a 1 per cent ad valorem fee had been levied on the basis of Article 35 of the Customs Law.  The fee 
represented the cost of record-keeping at customs.  The ad valorem customs registration fee had been 
abolished in the new Customs Tariff Law on 1 July 1 996.  He confirmed that Croatia did not require 
consular authentication or registration of cu stoms documents in the country of origin. 
 57. Asked to list by HS tariff line numbers products  subject to taxes and administrative charges 
for environmental purposes, the representative of Croatia said that imported waste was subject to an 
administrative tax of HRK 20,000.  This tax was not levied on each consignment, but charged when a 
licence, valid for one year or more, was issued by the State Directorate for Environment.  Domestic 
enterprises dealing with waste and hazardous waste were subject to a stamp tax of HRK 1,000.  
Imports classified as waste were determined in accordance with the Law on Waste and relevant 
international conventions such as the Basle Conven tion.  Having considered comments by members, 
his Government had issued a new Decision on 24 June 1999, reducing the stamp tax for importation 
and exportation of waste to HRK 2,000.  The repr esentative of Croatia confirmed that all imported 
industrial goods not classified as waste in regular customs clearance procedure were not, and would 
not be, subject to administrative fees and additional taxes for environmental purposes. 
 
58. The representative of Croatia confirmed that, from the date of accession, Croatia would 
impose any fees or charges for services rendered related to im portation or exportation only in 
conformity with Article VIII of the GATT 1994.  In formation regarding the application and level of 
any such fees, revenues collected  and their use, would be provided to WTO Members upon request.  
The Working Party took no te of these commitments. 
 Application of Internal Taxes to Imports
 
 
59. The representative of Croatia said that certain products - coffee, coffee husks and skins, 
coffee substitutes containing coffee, alcoholic a nd non-alcoholic beverages, tobacco and tobacco 
products, motor vehicles, motorcycles, vessels, aircraft for private use and petroleum products - were subject to excise tax
 in accordance with the provisions of th e Law on Special Taxes on Products and  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 23 
 
 
 the Law on Excise Duties on Automobiles and other Motor Vehicles, Vessels and Aircraft.  He 
acknowledged that excise taxes on beer, non-alcoholic and alcoholic beverages, tobacco and tobacco 
products had differentiated between  imported and domestically-produ ced goods until January 1998.  
Parliament had adopted the Law Amending the Law on Excise Taxes on Alcoholic Beverages in 
October 1998, and the Law Amending the Law on Ex cise Taxes on Tobacco and Tobacco Products on 
18 June 1999.  The amended Law had been applied since 1 July 1999, thus bringing all excise taxes 
into conformity with Article III of the GATT.  Th e products subject to excise taxes and the respective 
tax rates per July 1999 are enumerated in Table 4.  
Table 4:  Excise Taxes in Croatia (rates applied in July 1999)
 
Product description Tax rate  
(in kuna) 
Coffee, per kg:  
Non-roasted coffee 3.60 
Roasted coffee 9.00 
Coffee husks and skins 12.00 
Coffee substitutes containing coffee 15.00 
Non-alcoholic beverages, per hl: 40.00 
Beer (alcoholic), per hl: 80.00 
Beer (non-alcohol – max 0,5 per cent vol), per hl: 40.00 
Alcohol and alcoholic beverages, per litre absolute alcohol 40.00 
Tobacco and tobacco products:  
Tobacco, per kg 35.00 
Cigarettes:  
Group A*- Popular group 3.90 
Group B*- Standard group 4.30 
Group C *- Extra group 7.00 
Cigars, per piece 1.00 
Cigarillos, 20 pieces 4.00 
Petroleum products:  
Petrol, types such as MB-98, MB-86  2.10 
Petrol, types such as BMB-98, BMB-95, BMB-91 1.80 
Diesel, such as D-i, D-2, D-3 1.60 
Heating oil - extra light and special light 0.30 
Automobiles:  
Power 55-75 kW 
 "  Power 75-90 kW 
 
" - 
 
- 
 
- 
 
- new 
 
used 
 
new 
 
used 3,000.00 
 
2,000.00 
 
7,000.00 
 
5,000.00 
                                                      
* The characteristics of classification into the gr oups A, B and C are set according to the Law on 
Tobacco 
  WT/ACC/SPEC/HRV/7/Rev.4 
Page 24  
 
 Product description Tax rate  
(in kuna) 
Power 90-110 kW  "  Power more than 110kW 
 
" - 
 
- 
 
- 
 
- new 
 
used 
 
new 
 
used 15,000.00 
 
11,000.00 
 
30,000.00 
 
22,000.00 
Motorcycles 
engine power in kW 
more than not exceeding  
6 20 2,000.00 
20 55 4,000.00 
55 75 7,000.00 
75  10,000.00 
Vessel without cabin 
length in meters 
more than not exceeding  
8 12 6,000.00 
12 15 12,000.00 
15  24,000.00 
Vessel with cabin 
length in meters  
more than not exceeding  
8 12 15,000.00 
12 15 45,000.00 
15  90,000.00 
Aircraft for private use 
number of seats  
more than not exceeding  
1 4 7,000.00 
5 12 35,000.00 
13 50 75,000.00 
50  150,000.00 
 
60. Asked about the taxation of used automobiles, the representative of Croatia said that excise 
duty on all products liable to such duty was paid when  the product was distributed for the first time in 
the Croatian market, any further resale was charged VAT only.  61. The representative of Croatia said that goods and services had been subject to turnover tax 
pursuant to the provisions of the Law on the Turn over Tax of Products and Services until the end of 
1997.  The turnover tax had been replaced by value a dded tax, levied at a single rate of 22 per cent, 
with the entry into force of the Law on Value Added Tax on 1 January 1998.  The Law on Value 
Added Tax provided full national treatment.  Busi nesses, whose turnover did not exceed HRK 85,000 
(in the previous year, after certain deductions ), could opt to be exempt from paying VAT. 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 25 
 
 
 62. Exempt from payment of VAT in domestic trade (Article 11) were house rents (residential);  
banks, saving banks, credit and saving institutions as  well as insurance and reinsurance companies;  
medical services, dentist and similar services provided as private practice;  medical services in health 
institutions;  services and goods delivered by pr e-school, elementary school, secondary and high 
school and similar institutions and social care ins titutions;  and services provided and goods delivered 
by religious communities and institutions, and cultura l and similar institutions.  He confirmed that 
VAT exemptions for services such as medical and educational services were applied equally to 
domestic and foreign service suppliers in all four modes of delivery. 
 63. Real estate transactions, except new construction;  company shares;  land;  and money and 
securities transactions and deliveries were exempt fr om the value added tax.  Also exempt from VAT 
were certain imported goods and go ods in transit, namely temporary imports of goods exempt from 
customs duty;  imports of humanitarian aid, except petroleum and petroleum products, tobacco, tobacco products, alcohol and alcoho lic beverages;  imports of bulli on by the Croatian National Bank;  
imports of foreign legal means of payment, secu rities and company shares; and transit of goods 
through the customs territory of the Republic of Cr oatia.  All exported goods we re exempt from value 
added tax.  The representative of Croatia confirmed that Croatia levied only customs tariffs, VAT and 
excise taxes on imports.  
64. The representative of Croatia stated that, from the date of accession, Croatia will apply its 
domestic taxes, including those on products listed in Table 4, in compliance with Articles I and III of 
the GATT 1994.  The Working Party took note of this commitment.  Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems.
 
 
65. The representative of Croatia said that the La w on Trade contained provisions in Articles 40 
to 43 regarding the imposition of import quotas, including for the purpose of protecting infant industries.  In view of Croatia's situation in  the post-war period, and the level of economic 
development, the Croatian Government had c onsidered itself entitled to recourse to GATT 
Article XVIII, but as the economic situation had impr oved the Government had decided not to invoke 
GATT Article XVIII, and the provisions of the La w on Trade had been changed accordingly.  The 
provisions in Article 40, which had authorized  the Government to introduce quantitative import 
restrictions for the protection of infant industri es, had been abolished through the Law Amending the 
Law on Trade (Article 15), adopted on 30 June 1999. 
 66. A number of members agreed that it would be both appropriate and useful for Croatia to 
consider its industry development needs in the process of negotiating its accession to the WTO.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 26  
 
 Planned policies to develop industries through trade measures should be made known prior to 
accession, and industry protection needs should be taken into account during the market access/tariff 
negotiation phase of an accession.  However, it woul d be neither appropriate nor useful for an 
applicant for WTO accession to seek accession on the basi s that it expected to have recourse to import 
quotas under the infant industry provisions unde r the GATT 1994.  The Multilateral Trading System 
allows for industry protection thr ough tariffs rather than through quantitative restrictions, and this 
should be reflected in Croatia's accession commitments. 
 67. The representative of Croatia added that his Government had adopted a Decree on 
12 July 1996, abolishing all import quotas with imme diate effect.  The abolition completed a process, 
begun in 1994, of reducing the number of products subject to import quotas.  Quantitative restrictions 
had been imposed on certain agricultural products, some foodstuffs, textile fibres, cement, iron and 
steel products, and machinery to facilitate the est ablishment of a market economy and assist areas 
damaged by war.  Asked about a temporary lim itation/ban on sugar imports, the representative of 
Croatia said that the import ban on sugar was lif ted on 2 May 1998 (Official Gazette No. 60/1998). 
 
68. The representative of Croatia provided information on import licensing procedures in 
document WT/ACC/HRV/25.  The most recent decision on goods subject to import licences had been passed by the Government on 12 July 1996 in accordance with Article 46 of the Law on Trade 
(Table 5 - see Annex).  The licensing system coul d not be abolished wit hout legislative approval 
under Croatia's legal system.  He added that import licences applied to the usual products allowed by 
Articles XX and XXI of the GATT 1994.  In accordance with the Law on Trade, licences could be prescribed for the purpose of fulfilling interna tional agreements, ensuring State security, the 
protection of human, animal and plant health and protection of the environment, maintenance of 
public morals, and to control trade in works of  art and precious metals.  Import licences were 
compulsory for tanks, war vessels, military arms, revolvers, pistols, guns, parts and equipment for 
arms, ammunition, swords and sabres, nuclear reactor s, radioactive materials, isotopes, derivatives, 
hydrocarbons, mint postage stamps, gold, coins, ir on tubes and bars, and tractors (more than five 
years of age).  The licences were issued by the Ministry of Economy, which was also the licensing 
authority for imports of substances affecting the ozone layer (Montreal Convention).  In addition, 
drugs and medical products, glands and other orga ns, vaccines, drugs, pharmaceutical goods, dialysis 
appliances, and narcotics were subject to licences issued by the Ministry of Health;  imports of 
veterinary drugs and vaccines were licensed by the Ministry of Agriculture and Forestry;  and the 
State Office for Standardization and Metrolog y issued import licences for certain scales and 
measuring instruments.  The Ministry of Mariti me Affairs, Transport and Telecommunications was 
the licensing authority for imports of telecommu nications instruments and appliances such as 
transmitters, radars, radio remote controls and radio navigation equipment.  Licences for imports of  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 27 
 
 
 armaments and military equipment for the Croatian Army and Croatian Police were issued by the 
Ministry of Defence and the Ministry of Internal Affairs.  The licensing regime applied equally to 
imports from all countries. 
 69. The purpose of the licensing regime was to m onitor and control import and export of goods 
which for various reasons were classified as sens itive, and Croatia had no intention to limit the 
quantity and value of imports, except as provided for in international conventions such as the 
Montreal and Basel Conventions.  The Decision on goods subject to the import and export licence 
regime had been amended on several occasions over th e past threeyears (Official Gazette Nos. 58/96, 
67/96, 15/97, 95/97, 132/98, 8/99, 15/99 and 79/99) with a view to minimizing the volume of goods 
subject to licensing and to ensure that licences were  issued on an automatic basis.  Import licences for 
combine harvesters had been abolished in 1997.  The Government had reviewed the import situation 
for other products in 1998, and had decided to a bolish import licences for iron tubes and bars as from 
1 January 1999.  He added that the import licen ces for iron tubes and bars had been temporary 
surveillance licences, issued to ga ther trade data.  Import licences for precious metals and coins were 
granted automatically and immediately upon request.  The most recent Decision, adopted on 22 July 
1999, had removed import licences for dishwashers and machinery for cleaning and drying bottles.  70. Licence applications were submitted to no more  than one administrative body.  The amount 
and type of information to be submitted was stipulat ed in the Decision on goods subject to import and 
export licences.  As the licences carried no limitation on the quantity or value of imports, applications could be submitted until the very moment of importa tion.  The validity of a licence could be extended 
upon request of the licence holder.  An administrative fee of HRK 125.00 was charged for each import licence. Licences were not transferable be tween importers.  Applications could only be 
rejected if the importer did not fulfil the conditions stipulated in international conventions for specific 
goods or did not meet standard criteria for the tran sportation of certain goods.  An importer denied an 
import licence could file an administrative lawsuit with the Administrative Court of the Republic of 
Croatia. 
 
71. A member was concerned about reports that Croatia had banned importation of certain 
products (pork, wheat, flour, sugar, etc,), and imposed  additional restrictions on steel, particularly as 
these appeared to be recent measur es.  Acceding countries were expected to observe WTO provisions 
from the time of application, and Croatia would n eed to demonstrate tangibly that previous measures 
for trade regulation had been permanently discarde d.  The representative of Croatia replied that 
temporary import bans on pork, wheat, flour and suga r had been abolished.  He confirmed that all 
previous restrictive measures for import regulation had been permanently discarded, and that there WT/ACC/SPEC/HRV/7/Rev.4 
Page 28  
 
 were no bans, quantitative restrictions, or restric tive licensing requirements on imports at present.  
Licences were still applied on iron tubes and bars imported from non-WTO members. 
 
72. The representative of Croatia confirmed that, after accession, Croatia would take recourse to 
quantitative import restrictions only in situations envisaged in WTO Agreements, including Article 
XII of the GATT and according to the WTO Agreement on Safeguards. 
 
73. The representative of Croatia confirmed that Croatia would, from the date of accession, 
eliminate and shall not introduce, re-introduce or ap ply quantitative restrictions on imports, or other 
non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, licensing requirements and other restrictions having equivalent effect that cannot be justified under 
the provisions of the WTO Agreement.  He furt her confirmed that the legal authority of the 
Government of Croatia to suspend imports and expo rts or to apply licensing requirements that could 
be used to suspend, ban, or otherwise restrict th e quantity of trade will be applied from the date of 
accession in conformity with the requirements of the WTO, in particular Articles XI, XII, XIII, XVIII, 
XIX, XX and XXI of the GATT 1994, and the Mu ltilateral Trade Agreements on Agriculture, 
Application of Sanitary and Phytosanitary Measu res, Import Licensing Procedures, Safeguards and 
Technical Barriers to Trade.  The Worki ng Party took note of these commitments. 
 
Customs Valuation
 
 74. The representative of Croatia provided information on the implementation and administration 
of the customs valuation agreement in documen t WT/ACC/HRV/19.  Rules on customs valuation 
were laid down in Articles 36 to 48 of the Custom s Law of the Republic of Croatia and implemented 
through the Statute on the Conditions and Method of Determining Tariff Bases (the Statute).  Both 
regulations had been assumed from the former Yugos lavia (which had joined the GATT in 1973).  
Article 36 (1) of the Customs Law stipulated customs valuation based on transaction values. 
 
75. A member stated that Croatia's legislation was not fully consistent with the Agreement on the 
Implementation of Article VII of the General Ag reement on Tariffs and Trade 1994 (the Customs 
Valuation Agreement), in particular with respect to (i) Article 2 - the use of transaction value of 
identical merchandise when customs value could not be determined under the provisions of Article 1 
of the Agreement;  (ii) the prohibitions in the Agreement regarding the de termination of customs 
value based on the acceptance of the higher of two alternative values or minimum customs values;  
and (iii) a system of reference prices establis hed under Article 44 of the Customs Law.  The 
representative of Croatia replied that the first point  of apparent non-conformity with WTO rules was 
due to a translation error.  He acknowledged that  the Customs Act did not explicitly prohibit the  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 29 
 
 
 acceptance of the higher of two altern ative values, however, in practi ce the lowest value was chosen.  
The Customs Law would be amended to include a ll prohibitions contained in Article 7.2 of the 
Agreement, including a ban on minimum customs values.  In his view, Article 44 of the Customs Law 
did not provide for a reference price system.  A valuation list had been intended for information 
purposes and to facilitate the work of Customs in its fight against fraud, however, no such list had 
been established. 
 
76. On a further point of clarification he stated th at according to Article 10 of the Customs Law, 
test values would only be used in transactions betwee n related parties at the re quest of the importer, as 
provided for in Article 2.1(b) of the Cust oms Valuation Agreement and the corresponding 
Interpretative Note of the Customs Valuation Ag reement.  He therefore considered Croatian 
legislation to be in full conformity with the WT O.  His authorities were not familiar with the 1984 
Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods.  The Customs Law would be revised to include the operativ e Interpretative Notes to the Customs Valuation 
Agreement and to align its Article 36 (5) and 41 mo re closely with Article 8 of the Agreement. 
 
77. Some members sought a commitment from Croatia  to apply fully Article VII and the WTO 
Agreement on the Implementation of the Article VII,  including the Interpretive Notes, from the time 
of its accession to the WTO.  In their view, Croa tia should accede to the WTO without recourse to any 
special and differential treatment provisions of Article 20 and Annex III of the Customs Valuation 
Agreement.  Croatia was also asked to provide  specific information on the procedures invoked to 
ensure full compliance with Article 13 of the Ag reement on Customs Valuation pertaining to the 
ability of importers to withdraw goods from custom s even though the final valuation determination 
had not been made. 
 
78. The representative of Croatia confirmed that Croatia would be implementing fully the WTO 
Agreement on the Implementation of Article VII of the GATT 1994 from the date of accession.  Croatia would appreciate technical assistance form WT O members in changing its legislation related 
to customs valuation. 
 79. A member commended Croatia for its efforts to  implement fully the WTO Customs Valuation 
Agreement upon accession, and looked forward to re viewing draft legislation at the earliest 
opportunity.  Croatia was specifically requested to in corporate in its new legislation the provisions of 
Decision 4.1, of the Committee on Customs Valuat ion concerning the "Valuation of Carrier Media 
Bearing Software for Data Processing Equipment" and the "Decision on the Treatment of Interest 
Charges in the Customs Value of Imported Goods '';  provisions covering currency conversion, 
confidentiality, the right of appeal and transparency (Articles 9-12 of the Agreement);  the text of the WT/ACC/SPEC/HRV/7/Rev.4 
Page 30  
 
 "Interpretative Notes to the Valuation Agreement";  and to ensure that all the prohibited forms of 
valuation were explicitly listed in the text of the new law. 
 
80. In reply, the representative of Croatia said that  the customs valuation provisions in the new 
Customs Law were in conformity with Ar ticle VII of the GATT and the Agreement on 
Implementation of the Article VII of the GATT 1994.  Although the new Customs Law, passed by 
Parliament on 30 June 1999, was set to enter into force on 1 January 2000, its provisions relating to 
customs valuation would be applied as of 24 Se ptember 1999.  The Law incorporated provisions 
covering currency conversion, confid entiality, the right of appeal a nd transparency, as well as the 
Decision of the Committee on Customs Valuation concer ning the treatment of interest charges in the 
customs value of imported goods (in Article 39, paragraph 1(c)), and the Decision concerning 
valuation of carrier media bearing software for da ta processing equipment (in Article 43).  The "sale 
for exportation value" for cinematographic films did not include royalties or licensing fees for the 
right to reproduce or distribute the films, as provide d for in Croatia's releva nt legislation amending 
Article 38 and 43 of the Customs Law.  Articles 9 a nd 10 of the Agreement had been incorporated in 
Articles 47 and 45, respectively, of the new Law.  Article 44, paragraph 4 of the Law incorporated 
Article 11 of the Valuation Agreem ent, and Article 12 of the Valuation Agreement was incorporated 
in Article 44, paragraph 5 of the Law.  The prohi bited forms of valuation were explicitly listed in 
Article 37 of the new Customs Law.  The text of the "Interpretative Notes to the Valuation 
Agreement" would be incorporated in a Regulation,  which would be adopted following the entry into 
force of the customs valuation part of new Cust oms Law (in October 1999).  This regulation would 
stipulate further detailed conditions and pro cedures for determining customs valuation. 
 81. Having examined the draft Customs Law in view of the requirements of the Customs 
Valuation Agreement, a member pointed out that pr ovisions providing for the right of appeal without 
penalty to a judicial authority were unclear, and th at the draft Law did not indicate how Croatia would 
implement its transparency obligations.  Croatia ha d also failed to implement fully the Interpretative 
Notes set forth in Annex 1 of the Agreement.  Article 46 of the draft Law - which allowed the 
establishment of "special rules for determining th e customs value of goods" - was unacceptable, and 
Article 41.1 of the draft Law, in particular the term  "counter-value", needed further clarification.  A 
statement in Article 44.1 regarding transaction va lue was not technically accurate, and should be 
deleted.  
82. The representative of Croatia replied that Ar ticle 44 of the draft Customs Law had been 
revised to provide for the right of appeal in accordance with Article 11 of the Customs Valuation 
Agreement.  Article 12 of the Agreement (transpa rency) was included in Article 44.5 of the new 
Customs Law.  Articles 44.1 and 46 of the draf t Law had been deleted, and the language in  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 31 
 
 
 Article 41.1 had been revised.  He confirmed that currency rates used in determining customs value 
were duly published as provided for in Article 46 of the Customs Law.  Currency rates were fixed in 
accordance with the provisions of  the Law on Foreign Exchange Op erations, and set and published by 
the Croatian National Bank (the central bank).  Th e currency rates were published in the daily 
newspapers, the Croatian National Ba nk official newsletter, and were available on the Internet.  On a 
further point raised by a member, he confirmed th at the Regulations had been amended to comply 
with Article 38 of the Customs Law, which stated clearly that royalties and license fees related to the 
goods being valued were added to the price actually  paid or payable in determining the transaction 
value.  Such charges for the right to reproduce or distribute cinematographic films were not included, 
however, when determining the "sale for exportati on value" for cinematographic films, nor added 
toward the dutiable value as provided for in Croatia 's relevant legislation amending Article 38 and 43 
of the Customs Law.  He also confirmed that Ar ticle 37 of the Customs Law stipulated that no 
customs value would be determined on the basis of  minimum customs values, and that Croatia would 
not use any form of price lists to value imports after accession.  With regard to the use of a Declaration on the customs value (DCV) or declara tion on the customs value, he said that the DCV 
was fully in compliance with the WTO Valuation Ag reement and was similar to the one used in the 
European Union and other WCO members.  The DCV had been communicated to the Technical 
Committee for the evaluation of the customs va lue of the WCO, and had been published and 
transmitted to other WCO members.  He also conf irmed that, if and when the Technical Committee 
might decide that the DCV would cease to be used , Croatia would accordingly accept such a decision.  
Croatia would include the Interpretative Notes set forth in Annex 1 of the Customs Valuation 
Agreement in its implementing regulations , to be enforced as from October 1999. 
 83. The representative of Croatia confirmed that Croatia would fully a pply the WTO provisions 
concerning customs valuation from the date of accession without recourse to a transition period, 
including the Agreement on the Implementation of Ar ticle VII of the GATT 1994.  In this regard, 
minimum import valuation provisions had been el iminated and the new Law and its implementing 
regulations incorporated Annex I (Interpretative Not es) and provisions for the Valuation of Carrier 
Media Bearing Software for Data Processing Equipm ent (Decision 4.1).  He further confirmed that 
the Customs Law had been amended so that the "sal e for exportation value" of cinematographic films 
imported in Croatia would not include royalties and licence fees for the right to reproduce or 
distribute them, nor would such charges be added toward their dutiable value.  The Working Party 
took note of these commitments. 
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 32  
 
 Rules of Origin
 
 
84. A member noted that Croatia was developing rules of origin to ensure conformity with the 
WTO Agreement on Rules of Origin and requested a description of the rules to be used for non-
preferential and preferential trade.  Croatia w as also asked to describe how it would meet the 
obligations under the WTO Agreement on Rules of Or igin for issuing binding assessments of origin, 
both for non-preferential and for preferential regimes,  within 150 days of requests by exporters and 
importers, as provided under Article 2 (d) of the Agreement and Annex II, and outline the process of 
appeal against determinations of origin.  85. The representative of Croatia said that the basic principles of rules of origin were regulated 
under Articles 25 and 26 of the Law on Trade.  Th e Government had adopted a new Regulation on 
Rules of Origin on 24 June 1999.  The new regulati on, taking into account achievements within the 
World Customs Organization on harmonization as well as the regulations and experience of WTO 
Members, complied fully with the relevant WTO provi sions.  The rules of origin were described and 
explained in detail in the new regulations, notably the criteria for determining "essential change".  The 
last essential changes conferring origin according to the present regulation involved either a change of 
tariff heading in relation to the non-originating mate rials used in the production of finished products, 
or non-originating materials not exceeding 50 per cent of the total value of the finished product.  
Fulfilment of one or the other criterion was suffici ent in conferring origin.  A regulation including 
company headquarters location among the requirements in determining product origin was valid only 
in the context of preferential duty treatment, and had not been applied since 1993.  86. Asked to provide further details  on Croatia's preferential and non-preferential rules of origin 
contained in new regulations in preparation, the representative of Croatia said that his Government 
was waiting for harmonized rules of origin to be worked out in the WTO and WCO so that 
arrangements worked out at the international level c ould be included in Croatia 's regulations.  Croatia 
submitted a translated copy of its regulations con cerning rules of origin to the Working Party. 
 
87. The representative of Croatia confirmed that  Croatia would remedy any departures from full 
conformity with the WTO Agreement on Rules of Origin  prior to its accession, and that by that time, 
Croatia's application of rules of origin for both MF N and preferential trade would be administered in 
conformity with the provisions of the Agreement.   Croatia would adopt the Harmonized Rules of 
Origin once finalized by the WTO in co-ope ration with the World Customs Organization. 
 88. The representative of Croatia confirmed that from the date of accession its laws and 
regulations on rules of origin would be in conformi ty with the provisions of the Agreement.  In this  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 33 
 
 
 regard, the requirements of Article 2(h) and Annex II, paragraph 3(d) , i.e., that for non-preferential 
and preferential rules of origin, respectively, its cu stoms authority or preshipment inspection authority 
acting on its behalf will pr ovide upon request an assessment of th e origin of the import and outline the 
terms under which it will be provided.  The Work ing Party took note of this commitment. 
 Other Customs Formalities
 
 
89. The representative of Croatia said that goods submitted for customs cl earance were at the 
disposal of the importer upon payment of customs duty.  An importer could be allowed a five-day period to pay the duty provided a Customs Gu arantee was submitted to  the customs office. 
 
90. A member, referring to press reports indicating th at a considerable quantity of goods had been 
arriving in Croatia without payment of customs duties through the border with the Bosnian Federation, stated that it was critical for the ac cession process that Croatia address the issue of 
uniform application of its customs regime vis-à-vi s other countries.  This member requested a report 
from Croatia on how it planned to implement strict customs enforcement at its borders prior to WTO 
accession.  In reply, the representative of Croatia sa id that his Government had taken concrete steps 
directed towards enforcing strict implementation of rules of origin in trade with Bosnia and 
Herzegovina under the bilateral Free Trade Agreemen t, in spite of protests and border crossing 
blockades on the Bosnian side of the border by fa rmers from Bosnia and Herzegovina.  Furthermore, 
steps had been taken to improve co-operation and th e exchange of electronic information between the 
customs offices of Croatia and Bosnia and Herzegovi na.  Together with Bosnia and Herzegovina, and 
with World Bank Funding, Croatia was prepari ng measures aimed at improving border-crossing 
infrastructure, decreasing the number of border cr ossings and bringing the bilateral free trade 
legislation in line with WTO standards and national legislation.  He therefore concluded that the 
Croatian authorities had regained full customs and security control of the border with Bosnia and 
Herzegovina.  The border and customs regime with  Bosnia and Herzegovina now resembled closely 
the regime prevailing at Croatia's  borders with other countries. 
 
91. A member commended Croatia for recognizing th at its current customs control with the 
Federation of Bosnia and Herzegovina was inade quate and inconsistent with WTO provisions, and 
Croatia's intention to enforce WTO provisions an d the terms of its accession package within its 
customs territory.  This member requested Croatia to report on specific steps taken to regularize the 
current WTO-inconsistent customs regime in place.  Croatia was urged to strictly define its customs 
territory vis-à-vis the Federation of Bosnia and He rzegovina and reminded that Croatia's inability to 
do so would bring into question its ability to enforce WTO Agreements in area such as taxes, charges, 
non-tariff requirements, intellectual property prot ection and MFN application of standards and WT/ACC/SPEC/HRV/7/Rev.4 
Page 34  
 
 sanitary requirements, and would also put into qu estion the value of MFN commitments undertaken in 
market access negotiations. 
 
92. Another member drew the attention of the Work ing Party to the question of current practices 
in the application of rules of origin in custom s procedures on the border between Croatia and Bosnia 
and Herzegovina.  Preferential rules of origin applied to goods originating in one part of the territory 
of Bosnia and Herzegovina, and to goods regarded as originating in Croatia a nd exported to that part 
of the territory of Bosnia and Herzegovina.  In th e view of this member, this practice resulted in 
different customs treatment of goods in trad e between Croatia and Bo snia and Herzegovina. 
 93. The representative of Croatia acknowledged that the Free Trade Agreement and the 
accompanying preferential rules of origin covering tr ade with one part of Bosnia and Herzegovina did 
not meet the requirements of Article XXIV of GATT 1994.  The 1995 Agreement on Economic 
Cooperation had been abolished on 15 May 1999, thereby reintroduc ing MFN-based trade until a new 
Free Trade Agreement would be concluded with  Bosnia and Herzegovina as a whole.  His 
Government had proposed to the Council of Minister s of Bosnia and Herzegovina to negotiate a Free 
Trade Agreement covering substantially all trade be tween Croatia and the whole territory of Bosnia 
and Herzegovina.  His Government expected the new FTA to be signed and implemented prior to 
Croatia’s accession to the WTO.  He confirmed that, irrespective of whether or not Croatia and 
Bosnia conclude an FTA, Croatia's  treatment of imports from all pa rts of Bosnia and Herzegovina 
would correspond to its WTO obligations, and that im ports would receive equal treatment as provided 
for in Article I of the GATT.  94. The representative of Croatia confirmed that Cr oatia was in a position to implement strict 
customs enforcement on all its borders, including the border with Bosnia and Herzegovina.  The 
customs territory of the Republic of Croatia, within  which the customs regulations and controls were 
enforced, corresponded exactly to the territorial bound aries of the Republic of Croatia.  He confirmed 
Croatia's determination to enforce WTO provisions, rules and disciplines and the terms of Croatia’s 
WTO accession package within these boundaries to  ensure proper implementation of all WTO 
principles, in particular the principle of uniform application of Croatia's customs regime towards all 
countries according to the MFN clause,  prior to the accession to the WTO. 
 Anti-Dumping, Countervailing Duties, Safeguard Regimes
 
 
95. The representative of Croatia said that the new Law on Trade contained provisions on anti-
dumping measures (Articles 48 and 49), countervaili ng duties (Article 50) and safeguard measures 
(Articles 38 and 39).  Moreover, Article 40 of the Law on Trade authorized the Government to  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 35 
 
 
 introduce import quotas inter alia as safeguard measures.  Article 55 of the Customs Law, intended as 
a safeguard clause allowing the imposition of a 15 pe r cent special customs protection duty, had never 
been applied, and had been deleted in the new Cu stoms Law.  He confirmed that no other provisions 
in existing or draft legislation dealt with trade remedy measures.  96. A member noted that Croatia's legislation in the anti-dumping area was not fully consistent 
with WTO requirements, notably regarding the de termination of dumping.  The representative of 
Croatia acknowledged that Article 48 of the Law on Trade was not compatible with Article 2 of the 
Agreement on the Implementation of Article VI of  the General Agreement on Tariffs and Trade 1994 
(the Anti-Dumping Agreement) with respect to the definition of the substantive criteria for assessing 
dumping.  Article 48 would accordingly be revised to ensure WTO conformity.  He added that 
Article 49 would also be amended to bring it into  conformity with the "standing requirement" of 
Articles 4 and 5 of the Anti-dumping Agreement.  He stressed that the anti-dumping provisions in the Law on Trade could not be applied in the absence of a special implementing regulation.  This 
regulation, covering the anti-dumping procedure a nd the conditions for the application of the 
additional duty, would be in complianc e with the Anti-Dumping Agreement. 
 97. Regarding the imposition of countervailing meas ures, a member noted that the Law on Trade 
did not provide for an injury requirement, nor di d it appear to differentiate between so-called 
actionable and non-actionable subsidies within the meaning of Article 8 of the Agreement on 
Subsidies and Countervailing Measures.  The representa tive of Croatia replied that an injury criterion 
and a provision relating to the treatment of non-act ionable subsidies had been inserted in the Law 
Amending the Law on Trade, adopted by Parliament on 30 June 1999. 
 
98. Noting that Croatia planned to introduce detaile d regulations for the application of safeguard, 
anti-dumping and countervailing measures, a member ask ed that legislation authorizing Croatia's use 
of trade remedies be submitted to the Working Part y for review and comment.  This review should 
take place prior to the completion of Croatia's acc ession to ensure the conformity of the legislation 
with WTO provisions.  In reply, the representative of Croatia said that the Law Amending the Law on 
Trade would harmonize provisions regarding th e application of safeguard, anti-dumping and 
countervailing measures to incorporate fully the basi c and key provisions of the WTO Agreements to 
ensure the conformity of Croatian legislation with  these Agreements.  After adoption of this Law by 
Parliament, his Government would issue regulatio ns laying down detailed rules of procedure and 
determining other technical issues related to the application of such measures. 
 99. The representative of Croatia said that Croatia would not apply any anti-dumping, 
countervailing or safeguard measure until it had no tified and implemented appropriate laws in WT/ACC/SPEC/HRV/7/Rev.4 
Page 36  
 
 conformity with the provisions of the WTO Agr eements on the Implementation of Article VI, on 
Subsidies and Countervailing Measures, and on Safegua rds.  In the elaboration of any legislation 
concerning anti-dumping duties, countervailing duties a nd safeguards, Croatia would ensure their full 
conformity with the relevant WTO provisions, in cluding Article VI and XIX of the GATT 1994 and 
the Agreement on the Implementation of Article VI, the Agreement on Subsidies and Countervailing 
Measures and the Agreement on Safeguards.  After su ch legislation was implemented, Croatia would 
only apply any anti-dumping duties, countervailing du ties and safeguard measures in full conformity 
with the relevant WTO provisions.  The Wo rking Party took note of these commitments. 
 B. EXPORT REGULATIONS  
Customs Tariffs, Fees and Charges for Services Rende red, Application of Internal Taxes to Exports
 
 100. The representative of Croatia said that Croatia had eliminated export duties, which had been 
levied temporarily on certain items (metal scra p and wood timber).  The Government Regulation 
stipulating export duties for these items had been a bolished in 1996.  However, by abolishing that 
particular Regulation, Croatia had not eliminated the authority to apply export tariffs as stipulated in 
Article 34 (2) of the Customs Law, enabling his G overnment to impose export tariffs in exceptional 
cases for the protection of exhaustible natural res ources, or to ensure essential materials to the 
domestic industry and to prevent shortages in domestic  supply.  He added that, at the moment, Croatia 
did not apply any export tariffs or taxes.  101. The representative of Croatia confirmed that after accession to the WTO, Croatia would apply 
export duties only in accordance with the provisions of the WTO Agreement and published in the 
Official Gazette "Narodne Novine".  Changes in th e application of such measures, their level and  
scope would also be published in the Official Ga zette "Narodne Novine".  The Working Party took 
note of this commitment.  
Export Restrictions
 
 102. The representative of Croatia said that the Law on Trade allowed the imposition of export 
quotas in exceptional cases for the purpose of protecting non-renewable natural resources.  Accordingly, the main products subject to export quotas in accordance with Government Decision of 
12 July 1996 had been corn, crude oil, natural gas, wood, raw leathe r, glass, and newspaper waste.  
Quotas had been set for a maximum period of one  year, and by 1 November each year, the 
Government had been obliged to pass a regulation st ipulating the quantity allo wed to be exported in 
the following year.  The criteria and conditions applie d in the allocation of the quotas - predominantly  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 37 
 
 
 public tendering - had been laid down by the Government.  The invitation to tender had been 
published in newspapers at least eight days prior to the auction.  Minimum 10 per cent of the quota 
had been set aside for new producers, the remaini ng 90 per cent were allocated on the basis of best 
offer.  Quotas had been allocated twice a year, in principle, and any domestic or foreign natural or 
legal person duly registered in the Republic of Croatia could apply for the quotas.  Those not 
registered with the Commercial Court needed to apply for a quota through a registered exporter. 
 
103. A member reminded Croatia that all quantitative restrictions not justified under specific WTO 
provisions had to be eliminated or otherwise brought  into conformity with WTO rules upon accession.  
The representative of Croatia replied that his Govern ment, continuing the polic y of bringing Croatia's 
trade policy measures into conformity with the principles of the GATT 1994, had adopted decisions 
abolishing the export quotas for crude oil, gas, corn  and semi-processed leather at the end of 1997 and 
in mid-1998.  A Government Decision to abolis h all remaining export quotas, effective 1 January 
1999, had been passed on 8 October 1998.  After accessi on Croatia would, if necessary, consider the 
use of other, WTO-consistent trade policy measur es (such as export duties) to ensure supplies of 
essential raw materials for the domestic market. 
 104. The representative of Croatia said that Croatia  licensed exports of cer tain items (96 tariff 
positions) for statistical and monitoring purposes.  The products concerned are listed in Table 6 (see 
Annex).  The Ministry of Economic Affairs issued licences automatically within 14 days upon receipt 
of the application.  He confirmed that Croatia ha d eliminated all export quotas, bans and other forms 
of export restrictions as of 1 January 1999.  105. The representative of Croatia confirmed that Cr oatia had eliminated all export quotas, bans 
and other forms of export restrictions as of 1 Janua ry 1999, and said that from the date of accession 
export restrictions would only be imposed in conformity with relevant provisions of WTO 
Agreements, including Article XI of the GATT.  The Working party took note of this commitment. 
 
Export Subsidies
 
 106. The representative of Croatia said export incen tives had been allowed under the old Foreign 
Trade Operations Act, but no support had been provided for the export of goods.  Croatia thus did not apply any export subsidies.  He added that the new Law on Trade contained no provisions on export 
subsidies.  The Croatian Bank for Reconstruc tion and Development (H BOR) – a State-owned 
investment bank – had been established and an expor t financing and guarantee system had come into 
operation in late 1998.  The system was based on th e Berne Union and OECD consensus criteria.  The WT/ACC/SPEC/HRV/7/Rev.4 
Page 38  
 
 bank was funded through the Gove rnment budget, bond issues and ex ternal sources (World Bank, 
EBRD, KfW, etc,). 
 
107. Import duty was not charged on imports used in  the production of goods to be exported and 
which remained under customs control, provided su ch importation was reported in advance.  Re-
export transactions were also not subject to paym ent of duties, provided the imported goods would be 
declared in accordance with the principles of temporary admission, and the customs authorities were 
satisfied that the goods imported in this manner would leave Croatia.  Exported goods and re-export 
transactions were also exempt from VAT.  108. The representative of Croatia confirmed that Croatia did not maintain subsidies including 
export subsidies which met the definition of a prohib ited subsidy, within the meaning of Article 3 of 
the Agreement on Subsidies and Countervailing Measures and that it would not introduce such 
prohibited subsidies in the future.  The Wo rking Party took note of this commitment. 
 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
 Industrial Policy, including Subsidies
 
 
109. The representative of Croatia provided inform ation on subsidy programmes in relation to 
Article 25 of the Agreement on Subsidies and Countervailing Measures (circulated in document 
WT/ACC/HRV/12).  Croatia did not have a subsid y programme per se, but rather an industry 
rehabilitation and reorganization programme.  Th e Government had assisted an area heavily 
devastated during the war by financing the payroll of seven enterprises located there and involved in 
the production of steel (Sisak Steel and TPK-EPO Zagreb), steel refining (Valjaonica Kumrovec), and 
textiles (Dalmatinca, Diokom, Pazinka and Velebit) at an accumulated cost of approximately US$3.2 
million by mid-1996.  Croatian Railways had also been  subsidized in the post-war period to the level 
of some US$400 million by the end of 1996.  Th e Government also subsidized sea transport of 
tourists by paying the difference between reve nues and expenditure on po pular tourist lines and 
connections (about US$31 million in  1995 and US$35 million in 1996). 
 110. Requesting specific information on subsidies to shipbuilding, a member stated that Croatia 
had generally not provided sufficiently detailed inform ation on its subsidization policies, in particular 
with regard to policy objectives, levels of subsidizati on, effects, and the duration of such policies.  In 
reply, the representative of Croatia said that the sh ipbuilding industry had not been subsidized since 
1991 to date.  A restructuring programme for shi pyards was under way, but the form and scope of 
subsidization had not yet been dete rmined.  Asked about plans to harmonize subsidies to fisheries and  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 39 
 
 
 the canning industry to WTO requirements, he said th at Croatia had provided data on subsidies which 
were in accordance with WTO rules.  Informati on on subsidies and othe r forms of government 
support to industry and agriculture for 1997 and 19 98 had been submitted to the Working Party in 
December 1998.  The representative of Croatia provided detailed information on non-agricultural 
subsidies in 1998 and 1999 in document WT/ACC/HRV /49.  He confirmed that Croatia maintained 
no subsidies which met the definition of a prohibited subsidy within the meani ng of Article 3 of the 
Agreement on Subsidies and Countervailing Measures. 
 111. The representative of Croatia confirmed that Croa tia would not maintain, and from the date of 
accession would not introduce, subsidies including export subsidies which met the definition of a 
prohibited subsidy, within the meaning of Article  3 of the Agreement on Subsidies and Countervailing 
Measures and would therefore not seek a transitional pe riod for the elimination of such measures.  In 
addition, he confirmed that all s ubsidy programmes would be administered in line with the Agreement 
on Subsidies and Countervailing Measures and that  all necessary information on programmes to be 
notified, if such exist, would be provided to the Committee on Subsidies and Countervailing Measures 
in accordance with Article 25 of the Agreement upon entry into force of Croatia's Protocol of 
Accession.  The Working Party took note of these commitments.  Technical Barriers to Trade, Standards and Certification
 
 
112. The representative of Croatia said that Croatia was implementing the requirements of the TBT 
and SPS Agreements in laws and re gulations which would be in force prior to accession to the WTO.  
Among the laws and regulations already in force were the Law on Standardisation;  the Law on 
Health Safety and Health Control of Foodstuffs and Goods of Personal Usage;  the Veterinary Law;  
the Law on Plant Protection;  the Law on Pharma ceuticals and Medical Products;  the Regulation on 
Phytosanitary Inspection of Plants and Control of  Plant Protection Products in the National Cross-
Boundary Transportation;  and technical regula tions on quality and health requirements for each 
product subject to quality and SPS control.  By en d July 1999, Croatia planned to adopt a Law on 
State Inspectorates (adopted on 30 June 1999) and issu e Regulations related to  the implementation of 
the TBT and SPS Agreements, i.e. on the Proced ure for the Adoption of regulations on Basic 
Requirements for Goods, Processes and Services (adopted on 27 May 1999);  on Methods and Procedures of Quality Control;  on the List of Items Subject to Quality Control;  and on the Bearing of 
Costs of Quality Control.  His Government wa s examining all existing regulations and, where 
necessary, completing them with new provisions to ensure full conformity with the procedures for 
preparing, adopting and applying new technical regul ations and standards established in the TBT and 
SPS Agreements.  Croatia's implementing regulations  would include a checklist of points addressing WT/ACC/SPEC/HRV/7/Rev.4 
Page 40  
 
 the issues regulated in the TBT and SPS Agreemen ts, including the Code of Good Practice for the 
Preparation, Adoption and Application of Standards. 
 
113. The representative of Croatia said Croatian state bodies were members of international and 
European standardization organizations, includi ng the ISO, IEC, ITU, EOQ, ETSI, CEN and 
CENELEC.  The Law on Standardization (Standardiza tion Act) had entered into force on 10 July 
1996, and the application of Croatian standards was no longer obligatory as from 1 January 1997.  
The new Law mandated new Croatian standards to be  based also on international (ISO, IEC) or 
regional/European standards, or where these did not ex ist, on the standards of other countries.  A large 
number of Croatian standards would be prepared by  accepting international and European standards.  
A TBT enquiry point had been established in the St ate Office for Standardization and Metrology and 
had been fully functional since 1 March 1999.  Dr aft standards were published in the State Office 
Journal, allowing at least 30 days for comme nts and remarks from the public. New technical 
regulation or national standards would be prepared  only when the regulatory authorities considered 
international standards to be ine ffective or inappropriate in Croatia  due to climatic, geographical, or 
technological factors.  In such cases, the regulator y authority would publish a notice in the Official 
Gazette of the State Office for Standardisation a nd Metrology about the draf t technical regulation or 
standard, and supply a copy of the draft to the WTO Secretariat.  Copies of draft technical regulations or standards would be provided to other WTO Members upon request.  The regulatory authority 
would allow all interested parties 90 days to comm ent on draft technical regulations or standards.  
Any comments would be duly considered and par ties making comments would be informed, and an 
explanation would be pr ovided, if their comments could not be accepted.  The final technical 
regulation or standard would be published in the Official Gazette of the Republic of Croatia, with 
copies submitted to the WTO Secretariat, and become  applicable three months after publication in the 
Official Gazette.  The State Office for Standardiza tion and Metrology had informed the International 
Organization for Standardization (ISO) about th e acceptance of the Code of Good Practice for 
Standardization in October 1998.  
114. A number of products were subject to qualit y control, based on 55 regulations on mandatory 
testing and certification.  The rules on quality cont rol applied equally to domestically-produced and 
imported goods.  Border controls were carried out by market inspectors, who were officials of the 
State Inspection, in accordance with Article 6 of the Law on Import and Export Quality Control of Goods.  Croatian goods were controlled during the production process and when leaving the factory.  
In addition, spot-checks took place at the retail level.   The list of affected products had been reduced 
gradually to 29 items.  The products concerned and th e relevant regulations are listed in Table 7 (see 
Annex).   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 41 
 
 
 115. A list of legal persons authorized to perform  mandatory product attest ation was provided to 
the Working Party in document WT/ACC/HRV/22.  Pr ior examination of expert institutions, as 
opposed to sensor (visual) inspection, was required for agricultural products, al coholic beverages, oil 
derivatives and textiles.  Following a sensor inspection, an inspector could issue certificates without 
preliminary tests for repeat shipments.  Manufact urers' self-declarations were not accepted under the 
present system.  The fees associated with quality control were enumerated in the Decision on 
Amounts to be Paid for Covering the Costs of Qu ality Control of Products Upon Export and Import 
(Official Gazette No. 42/96), which was provided to the Working Party.  116. Croatia was asked to justify the mandatory qualit y inspections at the border, particularly on 
furniture and textiles, and a member reminded the representative of Croatia that Article 2.2 of the 
TBT Agreement stipulated that technical regulati ons should not be more trade-restrictive than 
necessary to fulfil a legitimate objective, and that in ternational standards should be used where these 
existed (Article 2.4).  Croatia’s "quality co ntrol" certification process was covered by the 
requirements of  inter alia the WTO Agreements  on Import Licensing Procedures, Technical Barriers 
to Trade and Sanitary and Phytosanitary Measures.  Croatia's system did not seem consistent with 
these requirements, in particular with the requireme nts for transparency, enquiry point information, 
prior publication, MFN or national treatment.  The system was burdensome to imports and was not applied in a similar fashion to domestic goods.  Croatia should review and revise the system. 
 
117. In response, the representative of Croatia said th at quality controls were required to prevent 
deceptive practices or to protect human health and safety, animal or plant life and health, or the 
environment.  The only products controlled were th ose imported by a large number of importers and 
those widely dispersed in the Croatian market.  Th e respective government regulations were mostly 
former Yugoslav standards, based on international st andards or national standards of other countries, 
or more recently adopted regulations based on inte rnational or regional (European) standards.  The 
Law on Standardization envisaged acceptance of inte rnational standards, European standards, or 
standards of other countries, including recognition of  foreign laboratory tests and documents issued 
abroad.  Croatian standards had been voluntary since 1 January 1997. 
 118. Various technical regulations had been adopted, and others would be prepared, to determine 
the essential requirements for products (safety, health , environmental protection, user protection) by 
harmonizing them with international rules and Europ ean directives.  It was also foreseen to regulate 
the acceptance of suppliers' declaration of conformity.  Conformity assessment procedures would be 
performed by testing laboratories and certificati on bodies accredited according to the new Croatian 
accreditation scheme, which was in compliance with  international guides and recommendations.  The 
new accreditation system had been established by th e State Office for Standardization and Metrology WT/ACC/SPEC/HRV/7/Rev.4 
Page 42  
 
 (DZNM) in September 1997.  DZNM was affiliate to EAL (European Co-operation for Accreditation 
of Laboratories).  A Regulation on recognition of fo reign test reports issued by internationally-
recognized testing organizations had been publishe d in July 1997, and had been in force since 
1 September 1997.  119. A member stated that Croatia's efforts to unify its legislation on quality control were 
encouraging, but Croatia's responses did not addr ess the fundamental issue of application of the 
requirements to imports in a manner no less favorable  than to similar domestic goods.  This member 
considered the current system demonstrably burdensom e to imports and noted that it was applied, if at 
all, in manner more convenient fo r domestic goods than for imports.  Croatia was requested to provide 
additional detail on how "quality c ontrol" operated vis-à-vis the requirements of the TBT and SPS 
Agreements, indicating whether the controls were sta ndards or sanitary requirements, and to (i) clarify 
whether any domestic regulations stipulated the collection of specific fees for quality control 
inspection of domestic goods;  (ii) list the fees ch arged for quality control inspection for imports and 
exports, indicating how these fees were consistent wi th the national treatment provisions of Article III 
of the GATT and the provisions on f ees applied to imports of Article VIII of the GATT;  (iii) describe 
how the import quality control process worked in practice for goods such as petrol, liquefied gas, 
paraffin, diesel fuels, jet fuels, antifreeze and oils, in particular, whether certificates were issued on 
repeat shipments without repeating preliminary test s;  (iv) identify laws or regulations applying 
quality requirements to domestic goods and provide the text of provisions  stating such requirements to 
the Working Party;  and (v) provide further in formation on how new legislation would eliminate 
discrimination, for example at what point of sale such requirements would be applied to imports and 
domestic goods.  This member also noted that pharmaceuticals were not included in the quality control list, but understood that the Croatian Minist ry of Health required repeated batch testing of 
pharmaceuticals, but not for domestic producers.  This  procedural discrimination thus added costs to 
imports.  Croatia was asked to describe the current approval process for pharmaceuticals. 
 120. The representative of Croatia admitted that certain  inconsistencies existed in currently applied 
quality and SPS control.  Croatia was therefore focusing on steps to address the issue of non-
discrimination under Article III of the GATT, a nd meeting the requirements of the TBT and SPS 
Agreements.  Concerning quality controls, standardi sed products such as fuels would continue to 
receive certificates issued on repeat shipments of the same producer without repeating preliminary 
tests.  Quality controls on pharmaceuticals were pe rformed by the Pharmaceutical Inspection of the 
Ministry of Health in accordance with the special Law on Pharmaceuticals and Medical Products and 
therefore not listed in the general quality control list.  Each consignment of domestically-produced 
and imported pharmaceutials was subject to repeated batch testing by the Pharmaceutical Inspection.   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 43 
 
 
 The fees charged for quality control and SPS contro l inspections were equal for domestic products 
and imported products. 
 
121. The representative of Croatia added that having reviewed all comments, remarks and requests 
of Working Party members, Croatia had conclude d that the main outstanding problem had been 
related to the mandatory quality control system a pplied to imported products.  His Government had 
accordingly decided to change legislation and prac tice in this area.  Parliament had passed new 
legislation on 30 June 1999, to be enforced as from early October 1999.  The new Law on State 
Inspectorate would incorporate the following changes in relation to present practice. 
 
(a) Quality control would be based on ensuring co nsumer protection.  Quality controls on 
imported items prior to customs clearan ce would be abolished.  The State 
Inspectorate would perform quality contro ls on designated imported and domestic 
products at the wholesale and retail level.  The State Inspectorate would check whether products were covered by proper quality conformity documentation issued 
by authorised institutions in Croatia or abroad, and whether labelling and packaging 
requirements had been met.  The State In spectorate would also be entitled to check 
product content against declared values by analyzing samples; 
 
(b) Controls of domestic products would be conducted either at  the production site or at 
the wholesale and retail level; 
 (c) A Government Regulation could be issued, de fining a list of items subject to control 
of documentation relevant to conformity w ith quality requirements.  The list would 
be shorter than the list applied at present;  and 
 (d) A Government Regulation could be issued de fining the structure of inspection fees, 
equalizing fees for the inspection of impor ted and domestically produced items, and 
abolishing present practice of charging fees in proportion to the inspected quantity, 
 Having passed the new Law on State Inspectorate and a Government Regul ation on methods and 
procedures for issuing technical regulations prescr ibing quality and health requirements, Croatia 
considered its legal framework on TBT and SPS issu es to have been completed, thus ensuring 
consistency with national treatment, MFN treatment , transparency requirements and other provisions 
of the GATT and the Agreements on TBT and SPS.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 44  
 
 122. The representative of Croatia confirmed that Croatia would apply a ll obligations under the 
WTO Agreement on Technical Barriers to Trade from  the date of accession without recourse to any 
transition period.  The Working Party took note of this commitment. 
 Sanitary and Phytosanitary Measures
 
 
123. The representative of Croatia said that Croatia's sanitary regime was based on the Law on 
Animal Health Protection and Vete rinary Medicine (Official Gazette NN 52/91).  A large number of 
other legal provisions (rules, decrees, instructions) had been adopted in accordance with this Law, in 
particular concerning the prevention and eradicatio n of contagious diseases, the control of animal 
breeding and trade in animals and products of anim al origin.  Recent examples included regulations 
relating to proteins in the feed of ruminants, and imports of pigs and wild boars from certain countries 
(Official Gazette 28/1997).  Sanitary measures were implemented on the basis of the Veterinary Law, the Law on Veterinary Drugs and Veterinary-Medical  Products and the Act on the Safety and Sanitary 
Inspection of Foodstuffs and Articles for General U se.  Imported products were subject to sanitary 
controls at the customs clearance houses, prior to cu stoms clearance, as well as at the point of sale at 
the retail level.  Sanitary controls of domestic products took place at the production site and at the 
point of (retail) sale.  Croatia was harmonizing its veterinary legislation with European Community 
requirements. 
 
124. Croatia participated in the activities of the FAO/WHO Codex Alimentarius Commission 
(FAO/WHO - CAC) and the International Office of Epizootics (IOE).  Croatia's sanitary measures 
were based on the standards, guidelines or recomme ndations of these two organizations, as well as on 
the regulations, decisions or directives in force in the European Union.  According to the general or 
specific requirements of the FAO/WHO - CAC and IOE, Croatia reported to these organizations on a 
monthly or annual basis, or as appropriate.  As from 10 October 1998, the State Office for 
Standardization and Metrology served as the enquiry point responsible for the provisions of responses 
or relevant documentation regard ing the SPS Agreement.  All adopted  regulations related to sanitary 
measures were published in the Official Gazette of  the Republic of Croatia  (Narodne Novine), and 
submitted for comment and discussion to professiona l and scientific bodies and involved institutions 
prior to adoption.  Concerning risk assessment, the me thods used to analyze th e risks associated with 
importation of animals, animal products, animal ge netic material and foodstu ffs were in accordance 
with the relevant models developed by the IOE.  Wh ere such models did not exist, the Ministry of 
Agriculture and Forestry would determine the measur es to be applied in coope ration with the Croatian 
Veterinary Institute and the Veterinary Faculty.  In such instances, the Croatian authorities took into 
account available scientific evidence as well as other relevant data in accordance with the provisions 
of the SPS Agreement.  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 45 
 
 
  
125. Veterinary legislation was continuously adjusted  to international standards, particularly to 
those established by the International Agency for Epizootic Diseases (Paris) and Codex Alimentarius, 
Croatian requirements, i.e. veterinary and sanitary  conditions for importation of live animals and 
animal products, were in accordance with IO E recommendations.  Imported products were 
accompanied by certificates issued by the veterinary authorities of the exporting country as part of the 
import licenses issued by the Ministry  of Agriculture and Forestry – Veterinary Directorate.  Import 
certificates were issued centrally by the State Vete rinary Agency.  The border veterinary inspection 
controlled and inspected animals and animal products , animal offal substances, semen, embryo, and 
other goods that could transmit contagious diseases or  affect human or animal life when imported, 
exported or in transit.  The product coverage of Croatia's sanitary measures is outlined in Table 8.  
The veterinary inspection at the border was base d on the Codex of the International Agency for 
Epizootic Diseases (Paris);  international bilate ral agreements on veterinary co-operation;  the 
Veterinary Law ("Official Gazette" No. 70/97);  and International Conven tions on the Harmonisation 
of Border Inspection of Products.  Croatia's veteri nary inspection at the border was organised within 
the Department for Border Veterinary Inspection of the Ministry of Agriculture and Forestry - 
Veterinary Directorate.  Five border veterinary st ations - in Zagreb, Gorican, Osijek, Rijeka and Split 
– had been established by the Government Decision of  7 January 1991 ("Official Gazette" No. 58/91).  
The borders where veterinary inspection was carried  out were determined by the Decree of the 
Minister of Agriculture and Forestry on Borders of 6 January 1995.  The veterinary and sanitary 
inspection requirements were identical for ship ments by domestic producers and producers from 
exporting countries.  Croatia had harmonized its bor der veterinary inspection system completely with 
the requirements of the European Union.  Veterina ry inspectors were trained on a regular basis to 
improve the standards of control, inspection a nd approval procedures in accordance with the SPS 
Agreement. 
 126. Concerning phytosanitary regulations, the representa tive of Croatia said that the basic law in 
this area was the Law on Plant Protection ("Official Gazette" No. 10/94 and 19/94), drafted in 
compliance with the basic principles and requirement s of international standards, instructions and 
recommendations (the International Plant Protec tion Convention and Europ ean and Mediterranean 
Organisations for Plant Protection).  Based on this Law, Croatia had issued the Regulation on Phytosanitary Inspection of Plants and Control of  Plant Protection Products in the National Cross-
Boundary Transportation ("Official  Gazette" 12/95 and 96/95).  This  regulation was under revision (to 
be completed in Spring 1999) to harmonize it with in ternational standards, measures, and procedures 
and to meet the requirements of SPS Agreement.  He  expected Croatia would be able to apply fully 
the Agreement on Sanitary and Phytosanitary Measur es with regard to phytosanitary measures by the 
end of 1999.  Croatia had been member of th e European and Mediterranean Plant Protection WT/ACC/SPEC/HRV/7/Rev.4 
Page 46  
 
 Organization since 1994, and had joined the International Plant Protection Convention on 
12 May 1999.  Croatia reported regularly to EPPO on all issues concerning plant protection.  Products 
subject to phytosanitary measures are listed in Table 9. 
 127. The Regulation on the Sanitary Inspection of Pl ants and Plant Protection Chemicals in the 
Traffic Across the State Border ("Official Gazette " No. 12/95) applied, as far as possible, measures 
and recommendations equivalent to measures applie d by other members trading in similar products 
(plants and plant products).  Trad e bans could be imposed on seeds and planting materials to prevent 
the spreading of pests, but Croatian measures were not stricter than those internationally recommended and did not make any distinction be tween imported and domestic products.  The 
Government had provided funds fo r the introduction of information systems in 1998, and would seek 
funds necessary for the purchase of technical equi pment (laboratory equipment and other facilities 
needed for the proper functioning of the phytosanita ry inspection) in 1999.  He added that Croatia 
accepted that the establishment and effective functi oning of such facilities were an essential basis for 
ensuring that border inspections and import approvals  were soundly based on scientific evidence, as 
required under the SPS Agreement.  Any trade bans, including those on seeds and planting materials, 
needed to be based on scientific evidence.  Con cerning risk assessment, among its many activities in 
the plant protection field (systematic survey and monitoring of harmful organisms, phytosanitary 
supervision of seed and propagating ma terial, diagnostics, testing, information and advisory activities, 
etc,) the National Institute for Plant Protection in  Agriculture and Forestry was responsible for 
activities in assessment of risk of plant p ests (both quarantine and non-quarantine). 
 128. The plant protection administration within the Mini stry of Agriculture and Forestry was in the 
process of reorganization.  Plant protection inspectio n services at the border were organized within a 
special section of the Ministry of Agriculture and Forestry (the Department for Agriculture, Food and 
Tobacco Industries).  Operating in five units, th e inspection services controlled a total of 19 plant 
border crossings where plants imported or transpor ted through Croatia were subject to mandatory 
examination.  The Institute for Plant Protection in  Agriculture and Forestry examined plants for 
export.  The border inspection service cooperated with  the Institute in organizing quarantine-related 
activities and maintaining quarantine facilities.  129. Food products were subject to various laws a nd regulations, notably the Law on Food Quality 
and Food Quality Control, regulations on additiv es, admissible levels of pesticides, toxins,  
mycotoxin, metals and like substances, and regula tions concerning microbiotic quality control.  The 
Law on Health Safety and Controls of Foodstuffs and Goods of General Usage ("Official Gazette" 
No. 1/97) stipulated the health and safety conditions for imported or  domestically-produced foodstuffs 
and goods of general usage.  In  addition, the Law provided for health control of the production and  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 47 
 
 
 distribution of foodstuffs and goods of general usage.  The provisions of the Law also applied to raw 
materials, spices, additives and substances used fo r enriching foodstuffs.  Regulations adopted on the 
basis of Article 50 of the Law on Health Safety a nd Health Control of Foodstuffs and Goods had been 
published in the "Official Gazette" No. 46/94 and in cluded Rules on Health Safety of the Drinking 
Water;  Micro-biological Standards of Foodstuffs ;  Quantities of Pesticides, Toxins, Micro-toxins, 
Metals and Histamine and Similar Substances that  Foodstuffs May Contain and Other Conditions in 
Relation to Health Safety or Foodstuffs and Othe r Goods;  Conditions of Preserving Food and other 
Goods by Ionising Radiation;  Health  Safety of Dietetic F ood;  Conditions related to the Health Safety 
that the Goods of General Usage have to Comply with in Order to be Distributed on the Market;  
Preparation and Sale of Foodstu ffs Outdoors;  Micro-biological Cleanness Norms and Methods of 
their Defining;  and Special Working Cloths  and Shoes for Workers who in Production and 
Distribution Come into Close Contact with Foodst uffs, Cosmetic and Toilet Preparations for Body 
and Face.  Croatia was also preparing and adopti ng other implementation rules and regulations based 
on Article 50 of the Law.  
130. Foodstuffs were defined as a ll products used as food or drink, processed or non-processed, 
including drinking water.  Goods of general usag e included tableware, accessories, equipment and 
apparatus for production of foodstuffs and goods of  general usage and containers, toys, perfumery, 
cosmetic and toilet preparations for body and f ace, washing preparations, tobacco, tobacco products 
and smoking accessories as well as ce rtain goods and instruments coming into close contact with skin 
or mucous membrane when used.  The list of im ported products subject to  quality control and the 
relevant regulations (Table 7 - see Annex) included 27 categories of food products.  Prior examination 
was required for Croatian exports of canned meat, wine and plum brandy. 
 
131. According to Article 5, paragraph 1, point 3 of  the Law, foodstuffs or goods were considered 
unsafe for human health if their sensory characteristics had changed or if they contained pathogenic 
micro-organism or pathogenic parasite ;  bacteria toxin, micro toxin, histamine, and similar substances 
in quantities exceeding those determined by the regul ations;  natural toxin or other natural toxic 
substances in quantities noxious for human health;  pesticides, metals, non-metals, veterinary 
medicaments residue and other noxious substances in  quantities harmful to human health;  additives 
not allowed for the production of foodstuffs and other goods of general usage or additives in 
quantities determined inadmissible by special regula tions;  radio nuclides in quantities exceeding the 
limit regulated by the Law;  mechanically damage d admixtures noxious for human health or causing 
aversion;  materials originating from dead anim als or animals suffering from disease noxious to 
human health; or if they contained other micro- organisms, parasites or substances in quantities 
harmful to human health.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 48  
 
 132. Five inspectorates were in charge of quality and SPS control in Croatia;  the State 
Inspectorate (quality control), the Sanitary Inspector ate (health control of goods of general use), the 
Veterinary Inspectorate (health control of foodstuffs of animal origin), the Phytosanitary Inspectorate 
(plant health control), and the Pharmaceutical insp ectorate (quality control of pharmaceuticals).  The 
competent authority had the right to take samples to  be tested by authorised laboratories.  Health 
control of imported foodstuffs and other goods were effected by the border sanitary inspector and by 
the border veterinary inspector (products of animal origin) in accordance with Article 32 of the Law.  
The costs of controls and health safety inspections  were borne by the importer (Article 35).  The 
importer was not allowed to distribute or pro cess the imported goods until he received the official 
decision that the goods were safe.  
133. A member noted that various agricultural products  were subject to quality control standards, 
and requested Croatia to clarify whether these quality  standards were actual SPS regulations or just 
consumer preferences.  This member could not understand why processed products such as mustard, 
biscuits, pasta, soup, baking powder, condiments,  margarine, and mayonnaise required SPS testing 
and asked Croatia to explain the public policy objec tive of each of these measures and whether they 
were intended to address known risks to public health  or safety.  Information such as a step-by-step 
account of the entire testing process and an assessme nt of the time-frame involved would also be 
welcomed. 
 
134. In reply, the representative of Croatia said that  quality controls had been established for the 
protection of consumers' rights, and the public policy objective of SPS controls was to address risks to 
public health.  For example, a processed product subject to control - such as fruit juice - was 
examined by a Sanitary Inspector assessing the imp act of its ingredients on public health (applying 
regulations prescribed in accordance with the SPS Ag reement), and by a State Inspector assessing the 
conformity of the declared ingredients with th e actual content, as well as the conformity with 
prescribed quality, packaging and labeling requ irements (applying regulations prescribed in 
accordance with the TBT Agreement) .  When needed, inspectors would take samples which were sent 
to authorised laboratories.  The shipment was re leased to the warehouse of  the importer or producer 
when the analyses had been completed, which woul d normally take no more than 3 to 4 days.  
Technical products such as electrical or mechanical  appliances were not subject to sampling, as the 
inspectors recognised tests and certif icates issued by authorised dom estic or foreign institutions.  
Quality controls on imported pr oducts were performed at the customs clearance houses prior to 
customs clearance, and at the retail sale outlet.  Do mestic products were subject to quality control at 
the production site and at the re tail sale outlet.  His Government was considering the possibility of 
rationalizing the operational structure of its inspectorat es.  Quality controls on imported items prior to 
customs clearance would cease with the implementa tion of the new Law on State Inspectorate in  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 49 
 
 
 October 1999.  As from that time, the State Insp ectorate would be performing quality controls on 
designated imported and dom estic products at the wholesale and retail level. 
 
135. The representative of Croatia confirmed that Cr oatia's sanitary and phytosanitary standards 
system would be in compliance with WTO provisi ons under the Agreement on the Application of 
Sanitary and Phytosanitary Measur es as of the date of accession to the WTO, and that Croatia would 
apply the Agreement on the Application of Sanita ry and Phytosanitary Measures from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment.  Trade-Related Investment Measures
 
 
136. The representative of Croatia said that Croatia had no trade-related investment measures in 
place at the present time, nor did it intend to intro duce any such measures in the future.  Croatia 
accordingly did not seek to notify any measures fo r elimination under the provisions of the WTO 
Agreement on TRIMs. 
 137. The representative of Croatia said that Croatia would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  The Working Party took note of this commitment. 
 State Trading Entities
 
 138. Referring to the definition of State trading enterprises contained in paragraph 1 of the 
Understanding on the Interpretation of Article XVII of the General Agreement on Tariffs and Trade 
1994, the representative of Croatia stated that Croa tia did not have or maintained any enterprise 
covered by the provisions of Article  XVII.  Ten large enterprises we re under direct State ownership, 
but none of these public enterprises were granted excl usive or special rights or privileges which could 
influence, through their purchases or sales, the le vel and direction of im ports and exports.  Upon 
accession to the WTO, his Government would notify any State-trading enterprise, monopoly or exclusive service supplier, existing at the time, in accordance with Article XVII of the GATT and 
Article VIII of the GATS.  
139. A member pointed out that the representative of Croatia interpreted Article XVII of the 
GATT 1994 narrowly.  For transparency purposes, it would be useful to inform the Working Party 
about a number of private monopolies supported and infl uenced by State and local authorities.  These WT/ACC/SPEC/HRV/7/Rev.4 
Page 50  
 
 existed in various sectors such as transport services, distribution services, tourism, financial services, 
procurement, etc. 
 
140. In reply, the representative of Croatia said that  this member's statement was not supported by 
facts.  The Law on the Protection of Market Competition regulated the activities of monopolies in Croatia, and the Agency on the Protection of Mark et Competition had been established in 1995.  The 
Agency was entrusted with the task of detecti ng monopolistic practices.  In its three years of 
existence, the Agency had examin ed the market conditions in all sectors, and not found any private 
monopolistic behaviour allowing monopolies or oligopol ies to exploit their market share to the 
detriment of competitors or consumers.  Moreover, in his view, the State trading issue did not arise unless direct ownership relations, accompanied by gr anted trading preferences, existed between the 
State and a private sector monopoly, and this was not the case in Croatia.  He confirmed that his 
Government did not grant monopolistic trading rights  in goods and services to any firm other than 
those mentioned in paragraph 145, which would be notified to the WTO upon accession. 
 
141. Responding to specific questions from members, he said that a State-owned company (Astra 
International) engaged in foreign trade with th e same rights and obligation as any other Croatian 
foreign trade company.  Most petroleum and petr ochemical products were produced and distributed 
by the State-owned enterprise INA, which competed  with more than 20 smaller companies in the 
distribution and trade in crude oil and oil products.  He stated that Hrvatske sume (Croatian Forests) 
was a public utility company operating in full confor mity with Article XVII of the GATT.  Other 
public enterprises included Hrvatske ceste (Croatia n Roads), Hrvatska vodoprivreda (Croatian Water 
Utilities), Hrvatska posta i teleko munikacija (Croatian Post and Telecommunications, from 1 January 
1999 divided into two companies - Hrvatska pošta (Croatian Post) and Hrva tske telekomunikacije 
(Croatian Telecommunications)), Hrvatska elektropriv reda (Croatian Electricity), Hrvatske zeljeznice 
(Croatian Railways), Hrvatska radio televizija (Croatian Ra dio and Television), Jadrolinija 
(Adriatic Line), and Narodne novine (Official Gaze tte).  Alcohol and tobacco products were produced 
and distributed by a large number of companies, none  of which were State-owned or State-mandated.  
Former socially-owned farms had been transformed in to joint-stock companies, and most of them had 
been privatized.  142. The Law on Commodity Reserves (Official Gazette 68/1997) stipulated public stockholding 
of some agricultural and non-agricultural products .  Commodity reserves had been established to 
ensure essential supplies in case of war, threat of war,  or natural disaster.  This function of commodity 
reserves as permanent reserves was ensured by dete rmining the goods needed for those situations.  
The main function of commodity reserves would be  ensured within the framework and appropriate 
manner for the set objectives.  The Directorat e for Commodity Reserves (formerly the State  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 51 
 
 
 Directorate for Commodity Reserves) - a non-profit governmental body within the Ministry of 
Economy - intervened in the market only upon order by the Government.  In certain circumstances the 
Directorate could intervene to prevent domestic pr ice increases on agricultural and food products, but 
only upon a decision of the Government.  Purchases would be made by tender, and the Directorate 
would select the most favourable bid on the basis of purely commercial considera tions in line with the 
non-discrimination principle of Article XVII of the GATT.  The Directorate could export goods 
bought through intervention in the domestic market  by government decision only, in which case 
goods were exported through a commercial comp any chosen on the basis of public tender. 
 143. Some members noted that the Law on Commodity  Reserves appeared to provide for both 
public stockholding and commodity intervention functions.  Although the Directorate for Commodity 
Reserves appeared to make purchases on a commercia l basis through a tender system, it was also 
noted that the Directorate could export products , purchased through intervention in the domestic 
market, by government decision.  Croatia was therefore requested to explain under what circumstances the Government could decide to instru ct the Directorate to export products, the system 
for exporting products, and whether the Director ate used established guaranteed prices when 
purchasing commodities from domestic producers.  This information was necessary to determine whether the Directorate for Commodity Reserves wa s a State trading enterprise in the context of 
GATT Article XVII. 
 
144. The representative of Croatia replied that his Government could adopt a Decision to export 
products purchased through interventio n in the domestic market at guaranteed prices and held at the 
Directorate for Commodity Reserves only when estim ates indicated that these were surplus products 
exceeding the needs of the domestic market.  The Di rectorate for Commodity Reserves was obliged to 
sell such products through a tender system where all interested exporters were subject to equal 
conditions.  Tenders and selecti on procedures were carried out in accordance with the Law on 
Procurement of Goods and Services  and Sub-contracting.  The Directorate for Commodity Reserves 
used guaranteed prices for purchases of products when such prices had been pr escribed (i.e. for wheat, 
sugar beet, soyabeans, sunflower, rapeseed oil a nd tobacco);  the strategic commodity reserves of 
other products were purchased at market prices.  145. The representative of Croatia agreed that Hrvatske sume (Croatian Forests) and the 
Directorate for State Commodity Reserves were State-trading entities within the meaning of 
Article XVII of the GATT.  He confirmed that Croatia would notify these entities to the WTO upon 
accession.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 52  
 
 146. The representative of Croatia confirmed that his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges and would act in full conformity with the provisions of the WTO 
Agreement, in particular Article XVII of the GAT T 1994 and the Understanding on that Article and 
Article VIII of the GATS.  He further confirme d that Croatia would notify any enterprise falling 
within the scope of Article XVII.  The Wo rking Party took note of these commitments. 
 
Free Zones, Special Economic Areas
 
 147. The representative of Croatia said that nine  customs zones were operating in Croatia 
following the entry into force of the new Law on Fr ee Zones (13 June 1996).  These were situated in 
Zagreb, Krapina, Kukuljanovo, the port of Rijeka , Šibenik and Osijek.  A free zone could be 
established by one or more domestic le gal person.  The user of the zone  could be its founder, or any 
other foreign or domestic legal or natural person.  Activities carried out in a free zone included goods 
production and processing, goods assembly, wholesale tr ade warehousing, and repackaging.  Banking 
and other payment transaction activities such as insu rance and reinsurance could take place in a free 
zone subject to approval by the Ministry of Finan ce.  Operators paid no customs duties or other taxes 
on imported goods intended for production and consumption in the customs zone.  Companies located in the zones were not obliged to  export any minimum portion of their output.  Goods processed in the 
zone for the domestic market would be subject to  customs and other duties on the raw materials and 
other imported inputs used in the production pro cess.  Users engaged in or participating in 
infrastructure construction within the zone, in pr ojects with a value exceeding HRK 1 million, were 
exempt from paying profit tax during the first five y ears of business activities.  Other users paid profit 
tax equal to 50 per cent of the standard rate. 
 
148. The representative of Croatia stated that the fr ee zones authorized by the legislation described 
in paragraph 147 would be fully subject to the co verage of Croatia's co mmitments taken in its 
Protocol of Accession to the WTO Agreement, and that Croatia would ensure enforcement of its 
WTO obligations in those zones.  In addition, goods produced in these areas under tax and tariff 
provisions that exempt imports a nd imported inputs from tariffs and cer tain taxes will be subject to 
normal customs formalities when entering the rest of  Croatia, including the application of tariffs and 
taxes.  The Working Party took note of these commitments.  
Government-mandated Countertrade and Barter
 
 149. The representative of Croatia said that the State did not conclude compensation deals in its 
own name and did not in any way participate in the conclusion of compensation deals.  All laws and  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 53 
 
 
 trade policy measures, including customs duties, licences, etc, applied to goods exchanged in 
compensation deals.  Such deals were concluded by  natural or legal persons, and the contracts were 
registered with the Ministry of Economy for statistical purposes.   In 1995, the Ministry had recorded 
930 compensation contracts, accounting for around 5 per cent of Croatia's foreign trade.  In 1996, the 
number of contracts registered in the Ministry of Economy fell to around 600, and the decline had continued in 1997.  The number of such contra cts was expected to fall as the economy was 
consolidating and stabilizing in Croa tia and in neighbouring countries. 
 150. The previous Law on Foreign Trade Operations had also regulated a system of long-term 
production cooperation.  Long-term production cooper ation referred to a continuous exchange of 
goods in so called tie-in trade for a period of not less than three years (the legal minimum).  The 
parties to such arrangements could agree that no payment would be exchanged for each transaction, 
but the balance might be paid to a bank account.  In 1995, 90 contracts were in force on long-term 
manufacturing cooperation between Cr oatian firms and their partners, mostly from Germany, Italy 
and the Russian Federation.  Goods exchanged in long-term production transactions were subject to 
the normal trade policy instruments, including customs duties and licensing requirements.  The new 
Law on Trade, which had entered into force in Febr uary 1996, did not specifically regulate these types 
of contracts.  Companies were free to enter into  such arrangements if they found it in their own 
interest. 
 
Government Procurement
 
 151. The representative of Croatia said that Parliament had passed the Law on Procurement of 
Goods and Services and Sub-contracting in mid-December 1997.  The Law replaced the 
Government’s Regulation on the Procedure for Procurement of Goods and Services and Sub-
contracting.  The Law had entered in force in March 1998.  152. Entities under obligation to apply the Law on Procurement of Goods and Services and 
Sub-contracting were Government authorities and other State authority bodies;  bodies of the local 
government and self-government units;  legal persons owned by the Stat e or legal persons using funds 
from the State budget for their regular activities and capital investments;  legal persons using budget 
guarantees or other insurance concerning the proc urement contract or other support related to 
commitments assumed under that contract;  and le gal persons using financing from extrabudgetary 
funds (Pension Fund, Croatian Health Insurance Fund, Employment Fund and other extrabudgetary 
funds established by the Government).  WT/ACC/SPEC/HRV/7/Rev.4 
Page 54  
 
 153. The Law applied to all public procurements w ith the total value of goods, services and works 
exceeding HRK 200,000 (US$32,000) in a fiscal year .  Bidders, regardless of their residence and 
headquarters, except when the purchaser would limit th e participation in tenders  to domestic suppliers 
(i.e. apply national preference), were allowed to par ticipate in tenders.  The Law stipulated conditions 
and liabilities of the purchaser with regard to app lication of national preference, as well as other 
conditions concerning government  procurement including procurement implementation, pre-
procurement, international tendering (obligatory for works and goods with total invoice value 
exceeding HRK 12 million (US$2 million), or HRK 6 million (US$1 million) for services), the procurement procedure, conditio ns for tendering, evaluation and comparison of offers, and 
implementation and monitoring of the implementation of the Law. 
 
154. A member expected Croatia to become member of the Agreement on Government 
Procurement by tabling a schedule of commitments to the GPA Committee no later than three months 
after the date of accession to the WTO.  In reply, the representative of Croatia stated that, mindful of 
the rather limited and selective present membership of the Agreement on Government Procurement 
and that no major obstacles for international bidders  were experienced in enforcement of the national 
law on government procurements, his Government would apply officially for observer status to the 
Agreement on Government Procurement.  This would enable Croatia to get more acquainted with the 
practical aspects of the Agreement's disciplines and determine an adequate c overage and staging, in 
order for Croatia to start negotiations on accessi on to the Agreement at an appropriate stage. 
 155. The representative of Croatia confirmed that his Government had applied officially for 
observer status in the Committee on Government Pr ocurement on 14  June 1999.  This step would 
enable Croatia to get more acquainted with the pr actical aspects of the disciplines of the Agreement 
and determine the adequate  coverage and staging of Croatia's commitments. 
 156. The representative of Croatia confirmed that Cr oatia will initiate negotiations for membership 
in the Agreement on Government Procurement upon acces sion by tabling an entity offer at that time.  
He also confirmed that, if the results of the negotiations are satisfactory to Croatia and the other 
members of the Agreement, Croatia will complete negotiations for membersh ip in the Agreement by 
31 December 2001.  The Working Party took note of this commitment.  Transit
 
 
157. The representative of Croatia said that transit of  goods through the customs territory of the 
Republic of Croatia was regulated by  Articles 275 to 283 of the Custom s Law.  In addition, provisions 
concerning transit transport were included in the Articles dealing specifically with rail, road, sea,  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 55 
 
 
 waterways and air transport, as well as in the Ar ticles concerning despatch of goods to another 
customs office for customs clearance.  The carrier submitted transit documents to the customs office 
at the point of entry.  Customs charged a stamp ta x at a flat rate of HRK 10 per customs declaration 
for the services rendered.  The customs office w ould inspect the goods and transit vehicles, and 
provide an escort to the customs office at the point  of exit.  The carrier was responsible for the 
carriage of goods and the transit documents within th e customs territory.  The customs office of exit 
would check the transit documents and customs marks and, if necessary, inspect the goods and 
vehicles.  Goods prohibited to import into Croatia could not be carried in transit through the customs 
territory.  158. Croatia made no distinction on the basis of the flag of the carrier, the place of origin, 
departure, entry, exit or destination, or on any ci rcumstances relating to the ownership of the goods or 
the means of transportation.  Based on a Decisi on on special measures of customs surveillance on 
import, export and transit of certain goods (pet roleum, petroleum derivatives, tobacco and tobacco 
products, coffee, alcohol, alcohol drinks, beer, movable cultural artifacts - archeological and 
ethnological artifacts, old furniture, old paintings and sculptures, old musical instruments, etc,), such 
goods were only allowed to enter or exit Croatia at designated border crossing points, determined in 
coordination with Slovenia (5), Bosnia and He rzegovina (7), and the former Republic of 
Yugoslavia (1), or through 4 marine ports.  The Deci sion was not applicable to air and rail transport. 
 
159. A member noted reports that Croatia was bl ocking transit trade from the Bosnian Serb 
Republic, and would appreciate Croa tia's views and assurances on this point.  The representative of 
Croatia replied that Croatia ha d not blocked transit trade from the Bosnian Serb Republic.  The 
reconstruction of bridges across the river Sava ( border crossings Slavonski Brod - Bosanski Brod, 
Gradiška - Bosanska Gradiška, Hrvatska Dubica - Bosanska Dubica) had caused difficulties and the 
closing of some border crossings.  At the same time, other temporary border crossings had been 
established to enable transit.  Freedom of tr ansit was assured by Croatia's Customs Law and 
International Agreements.  Croatia was obliged to  ensure freedom of transit according to several 
international conventions, including the Convention on the contract for the international road transport 
(CMR), the Customs convention on international tr ansport of goods based on the TIR carnet, the ATA 
Convention, and the Convention on temporary admiss ion.  He assured the Working Party that Croatia 
provided, and would continue to provide, freedom of  transit to the Bosnian Serb Republic as well as 
to all other countries in accordance with Article V of the GATT 1994. 
 
160. The representative of Croatia confirmed that his Government would apply its laws and 
regulations governing transit operations and would act in full conformity with the provisions of the 
WTO Agreement, in particular Article V of the GA TT 1994.  In this regard, he stated that Croatia WT/ACC/SPEC/HRV/7/Rev.4 
Page 56  
 
 would not deny right of transit to exports from any country.  The Working Party took note of this 
commitment. 
 
Agricultural Policies
 
 161. The representative of Croatia said that all quan titative restrictions and supplementary fees and 
charges for imported agricultural products, including  special compensatory fees and variable levies, 
had been abolished with the introduction of the ne w customs tariff on 1 July 1996.  The new tariffs 
were compound rates, consisting of an ad valorem  and a specific duty element, for several products. 
 162. The Government guaranteed prices for the following commodities:  wheat, sugar beet, 
sunflower, soybeans, rapeseed and tobacco.  The gu aranteed prices applicable in 1998 are listed in 
document WT/ACC/HRV/39/Add.2, reply 22.  The system of guaranteed prices was implemented 
through the Directorate for Commodity Reserves.  The price for milk was also guaranteed, but the 
guarantee had not been enforced recently as the dom estic price had exceeded the intervention level.  
The abolition of the system of guaranteed prices was a long-term policy objective.  A recent step 
towards this objective had been a significant d ecrease of guaranteed prices for the year 1999, 
especially for wheat (down 32 per cent).  
163. The budget expenditures for production and in put subsidies to the agricultural sector 
amounted to HRK 599.3 million (average 1996-1998), representing 4.2 per cent of the value of total 
agricultural output in the period 1996-1998.  Produc tion subsidies had been provided for milk, sugar 
beet, sunflower, soybeans, rapeseed, tobacco, origin al-breed livestock, meat and bone flour, milk, 
semen, grape on island vineyards, honey and o lives.  Major input subsidy items were mineral 
fertilizers and certified agricultural seeds.  Croatia did not provide export subsidies for agricultural 
and food products, as reflected in its schedule of  commitments annexed to Croatia's Protocol of 
Accession.  
164. Croatia was reforming its system of agricultural subsidies.  This was a lengthy process as it 
required the establishment of a land registry to allo w the Government and the Ministry of Agriculture 
and Forestry to define "less favoured areas" and ot her factors determining subsidy payments.  The 
new system, which would be implemented following  Parliament's approval of the State budget for 
1999, would correspond to the requirements of the Agreement on Agriculture.  This budget increased 
allocations for measures in line with Annex 2 of Agreement on Agriculture, while reducing the budget  
share of price support measures.  Croatia was also introducing area payments in crop production, selective payments (per head) in livestock production and investment aids for vineyards and orchards 
within the framework of the new system, approved by  Parliament in March 1999.  Input subsidies for  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 57 
 
 
 mineral fertilizers and fuel, as well as production su bsidies for sugar beet, soybean, sunflower seed 
and rapeseed had been abolished.  He confirmed th at Croatia would not appl y any kind of subsidy to 
agro-processing industries. 
 165. The representative of Croatia said that Croa tia takes a commitment to decrease the AMS 
ceiling relating to the 1996-1998 base period by 20 per cent in equal annual instalments within a 
period of five years from the date of accession.  The AMS calculations are presented in the revised 
consolidated technical document on domestic support  and export subsidies in agriculture (document 
WT/ACC/SPEC/HRV/1/Rev.2).  166. Croatia's commitments on agricultural tariffs, on domestic support and export subsidies for 
agricultural products are in the Schedule of C oncessions and Commitments on Goods annexed to 
Croatia's Protocol of Accession to the WTO.  Trade in Civil Aircraft
 
 
167. A member sought a commitment from Croatia to adhere to the WTO Agreement on Trade in 
Civil Aircraft from the date of accession.  The representative of Croatia confirmed that Croatia would become a party to the Agreement on Trade in Civil Aircraft. 
 
168. The representative of Croatia confirmed that  Croatia would implement the Agreement on 
Trade in Civil Aircraft without exceptions or tr ansitional period from the date of accession.  The 
representative of Croatia confirmed that Croatia would become a signatory to the Agreement on Trade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this commitment. 
 
Trade-Related Intellectual Property Regime
 
 1. General 
 
(a) Intellectual property policy  169. The representative of Croatia said that Croatia  had adopted the former Federal (Yugoslav) 
Law on the Protection of Inventions, Technical Im provements and Distinctive signs (NN 53/91).  The 
Law had been changed and amended in April 1992, and the title change d to Industrial Property Law, 
governing patents, trade and service marks, and industrial designs.  The system of industrial property protection was under revision, and as part of the reforms each area of industrial property would be WT/ACC/SPEC/HRV/7/Rev.4 
Page 58  
 
 governed by a separate law.  Current legislation included a technical advance criterion which would 
not be included in future legislation. 
 
170. A member was concerned about the pace of draf ting and ratification of intellectual property 
laws in Croatia, and encouraged the Government to  strengthen its efforts to enact legislation and 
establish the necessary administrative framework for effective implementation prior to WTO 
accession.  Asked whether Croatia would seek transi tional arrangements, the representative of Croatia 
replied that Croatia would respect the provisions of  Article 65.3 of the TRIPS Agreement.  A member 
stated its policy that acceding countries be in full conformity with the TRIPS Agreement on the date 
of accession, with no transition permitted.  Article 65. 2, 3 and 4 were included to provide a period of 
transition for those countries that were alread y members of the GATT and were entitled to be 
Members of the WTO without additional accession ne gotiations.  The transition provisions in Article 
65.2, 3 and 4 were part of the balance achiev ed between developed and developing countries 
regarding intellectual property, recognizing that most developing and non-market economy countries 
had further to go than did developed countries to bri ng their laws and practices  into conformity with 
TRIPS.  Newly acceding countries should have no su ch need since they could make the necessary 
changes during the course of accession negotiations, to  become affective on the date of accession, if 
not before.  Croatia should report to the Working Party on its specific plans to alter its current 
legislation to be in a position to fully implemen t the TRIPS Agreement by the date of accession. 
 
171. The representative of Croatia said that harmonization of Croatia's legislation with the 
requirements of the TRIPS Agreement had been acco mplished with the introduction a new Trademark 
Law, a new Law on Geographical Indications, a ne w Patent Law, a new Law on Industrial Design, 
and a Law on the Topographies of Integrated Circuits.  In the area of copyright, Croatia intended to 
introduce a new Law on Copyright and Neighbouring Rights, but would in the interim ensure 
compliance with the TRIPS Agreement by amending the existing Copyright Law.  Parliament had 
passed the new laws on 30 June 1999.   In addition, Croatia would appl y the provisions relating to the 
enforcement of intellectual property rights in th e new Customs Law, also passed by Parliament on 
30 June 1999.  An overview of Croatia's intellectua l property legislation is provided in Table 10. 
 (b) Responsible agencies for policy formulation and implementation  172. The representative of Croatia said that the State Intellectual Property Office of the Republic 
of Croatia had been the competent authority for in dustrial property since its establishment, and for 
copyright and neighbouring rights since November 1996.  The Ministry of Agriculture and Forestry was the competent authority for the protection of new plant varieties. 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 59 
 
 
 (c) Participation in internationa l intellectual property agreements 
 
173. The representative of Croatia said that Croatia was a party to the Convention Establishing the 
World Intellectual Property Organization;  the Pa ris Convention for the Protection of Industrial 
Property;  the Madrid Agreement Concerning the International Registration of Marks;  the Nice 
Agreement Concerning the International Classificatio n of Goods and Services for the Purposes of the 
Registration of Marks;  the Locarno Agreement Es tablishing an International Classification for 
Industrial Designs;  the Berne Convention for the Prot ection of Literary and Artistic Works, Paris Act 
1971;  the Brussels Convention Relating to the Distribution of Programme - Carrying Signals Transmitted by Satellite;  and the Universal Copyri ght Convention, 1952 and 1971.  Croatia intended 
to seek membership of the Rome Convention upon enactment of legal provisions granting protection 
for phonogram producers  and broadcasting organizati ons in compliance with the Convention.  This 
was likely to happen in 1998.  Cr oatia had deposited the instrument of accession to the Patent 
Cooperation Treaty with the Director-General of the World Intellectual Property Organization on 
30 April 1997.  As stated in the instrument of accession, the Patent Cooperation Treaty entered into 
force in Croatia on 1 July 1998.  Croatia also in tended to accede to the Hague Agreement Concerning 
Deposit of Industrial Designs in the near future.  (d) Application of national and MFN treatment to foreign nationals 
 
174. The representative of Croatia said that Croatian legislation granted national treatment to 
foreign nationals, while MFN treatment was not applie d for the time being.  Foreigners and nationals 
enjoyed equal treatment in civil and criminal procedures.  
2. Substantive standards of protection, includi ng procedures for the acquisition and maintenance 
 of intellectual property rights  175. Regarding acquisition of intellectual propert y right and know-how, the representative of 
Croatia said that the Law on Foreign Trade Operati ons, Chapter VIII, had cont ained certain restrictive 
clauses on acquisition of know-how from foreigners , but this legislation had been abolished 
(January 1996).  (a) Copyright protection 
 
176. The representative of Croatia said that the basic provisions on copyright and neighbouring 
rights were contained in the Chapter on basic freedom and rights of men and citizens in the 1990 Constitution.  In accordance with a 1991 Law on adop tion of Yugoslav federal laws in the areas of WT/ACC/SPEC/HRV/7/Rev.4 
Page 60  
 
 education and culture, Croatia had adopted the Copy right Law of 1978 as amended in 1986 and 1990, 
with further changes and amendments under Croatia n Law of 1993.  Croatian legislation protected 
performers only, but also regarding the fixation of a picture or pictures in combination with sound.  
An Amended Copyright Law, ensuring protec tion for phonogram producers and broadcasting 
organizations in accordance with the requirements of the TRIPS Agreement, had been submitted to 
the legislative procedure.  According to Article 39 of the Modified and Amended Copyright Law, the 
Law was applicable to phonograms and performances lawf ully fixed up to fifty years prior to the year 
of entry into force of the amended Law (July 19 99).  Croatia intended to introduce a new Law on 
Copyrights and Neighbouring Rights to harmonize its legislation with all aspects of existing international standards.  This Law would be dr afted after the entry into force of the amended 
Copyright Law.  The Modified and Amended Copyri ght Law, passed by Parliament on 30 June 1999, 
had been in force and implemented since mid-July 1999. 
 177. Copyright covered economic rights and moral right s.  Economic rights were transferable inter 
vivos and mortis causa;  moral rights were only tr ansferable mortis causa.  The general term of 
duration of economic rights was the life of the author and 50 years after his/her death.  Special terms 
of protection of anonymous and pseudonymous works were 50 years from the day the work had 
become available to the public, and 25 years fo r photographic films, photographic works and works of 
applied art.  The duration of moral rights was not limited.  Computer programmes were protected as 
literary, scientific and artistic works, and databases could be protected as collections of works.  
Persons could become owners of copyright by vi rtue of law in the course of employment or 
organization of collective works such as the crea tion of databases or encyclopaedias.  Copyright 
legislation provided for exclusive distribution rights,  including rental and lending rights, for artists 
and performers.  Croatia had adopted the Berne Conve ntion, ratified by the former Yugoslavia, with a 
reservation relating to the right of translation.  Ho wever, the Copyright Law granted the author of a 
work published in a foreign language and enjoying protection under the provisions of the Berne 
Convention, the right to remuneration for the tr anslation.  The said reservation on the Berne 
Convention had been removed in the Amended Copyright Law submitte d to the legislative procedure 
on 24 March 1998. 
 178. Limitations to the exclusive right were regulat ed under the Law.  Free use (exploitation) of 
works was allowed for personal use, public inform ation or for educational or scientific purposes. 
 
(b) Trademarks, including service marks 
 179. The representative of Croatia said that the protec tion of trade and service marks was regulated 
on the basis of the Industrial Property Law, Regulati ons for the Procedure for the Grant of Trademark  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 61 
 
 
 Rights, and the Law Governing Administrative Fees for the Establishment of Rights of Industrial 
Property.  The acquisition of trademark rights was b ased on registration;  the procedure was instituted 
by filing an application with the State Intellect ual Property Office of the Republic of Croatia.  A 
granted right was entered in the trademark register and published in the official gazette.  A mark was 
valid for a period of ten years from the day the tradem ark application was filed.  The validity could be 
extended an unlimited number of times provided th e trademark was used and maintained through 
payment of the prescribed administrative fees.  The State Intellectual Property Office could decide to 
terminate a trademark not used by the owner for any unjustified reason for more than five years. 
 180. The representative of Croatia said that Parliament had passed a new Trademark Law on 
30 June 1999.  The Law had entered into force in mi d-July 1999, however, due to the time need for all 
preparations required under the new system establis hed by the Law, the Law would be implemented 
from 30 November 1999.  (c) Geographical indications, including appellations of origin 
 
181. The representative of Croatia said that the present system of protection was based on 
Articles 37 to 43 of the Industrial Property Law.  The area was also regulated under the Law on Wine and Regulations on the Quality of Wine and the Qu ality of Spirits.  An appellation of origin was 
established by entering the geographical name and its related product in a register kept by the State 
Intellectual Property Office.  Entries into the regi ster were made ex officio upon proposals from the 
Croatian Chamber of Commerce.  According to Article 40 of the Industrial Property Law, the Croatian Chamber of Commerce determined the geogra phical names to be protected by an appellation 
of origin;  the products which could be put in circul ation with the specified appellation of origin;  the 
place or territory a product was originating from;   how products should be  marked;  and detailed 
requirements on the granting of rights to use certain marks.  For wines, these matters were regulated 
by the Law on Wines and the Regulations Concerning Wines (NN 34/95 and 96/96).  Wines meeting the requirements of controlled origin could be entere d in the register of protected appellations of 
origin by the State Office upon a proposal by from the Croatian Chamber of Commerce and prior 
examination of the request by the Ministry of Agriculture and Forestry.  The appellation of origin of a product could be established in favour of a forei gn person on the basis of reciprocity under 
international agreements concluded or acceded to by the Republic of Croatia. 
 
182. Croatia had introduced a new separate Law on Geographical Indications based on Articles 22 
to 24 of the TRIPS Agreement.  Parliament ha d passed the Law on 30 June 1999 and it had entered 
into force in mid-July 1999.  However, due to th e time needed for all preparations required under the 
new system established by the new Law, the Law would be implemented from 30 November 1999.  A WT/ACC/SPEC/HRV/7/Rev.4 
Page 62  
 
 provision to refuse or invalidate the registrati on of a trademark containing or consisting of a 
geographical indication for wines a nd spirits not having this origin  would be included in the new 
(draft) Trademark Law (Article 5). 
 (d) Industrial designs  
183. The representative of Croatia said that industria l designs were regulated under the Industrial 
Property Law and Regulations on the Procedure for the Grant of Rights to Models or Designs.  
Parliament had passed a new Law on Industrial Design in conformity with the TRIPS Agreement, in 
particular its Articles 25 and 26, on 30 June 1999 a nd it had entered into force in mid-July 1999.  
However, due to the time needed for all preparati ons required under the new system established by the 
new Law, the Law would be implemented from 30 November 1999. 
 184. A right to a model or a design was granted for a period of ten years as from the date of filing 
the application with the State Intellectual Propert y Office.  The right was non-renewable.  Textile 
designs were protected cumulatively by the Copyri ght Act, as a work of applied art and industrial 
design, and by the Industrial Property Law as a mode l or design.  In the latter case, the applicant 
would need to indicate whether protection was sought for three-dimensional (model) or two-
dimensional design (design). 
 
(e) Patents  185. The representative of Croatia said that a first dr aft of a new Patent Law, based on the WIPO 
model law and Austrian legislation, remained unde r discussion within his Government.  Parliament 
had passed the new Patent Law on 30 June 1999 a nd it had entered into force in mid-July 1999.  
However, due to the time needed for all preparati ons required under the new system established by the 
new Law, the Law would be implem ented from 30 November 1999.  Othe r legislation relevant to the 
Law would also be adopted, including the La w on Agents, the Law on Fees, the Regulation on 
Expenses, the Law on Inventions by Employ ees, and the Law on Confidential Inventions. 
 186. A patent was valid for a period of 20 years coun ting from the date of filing the application.  
Microorganisms and microbiological processes were  patentable under the Rules on Procedure for 
Patent Grant. 
 
187. Provisions on compulsory licensing could be found in the Industrial Property Law 
(Article 139).  A request for the grant of a compulso ry licence could not be submitted earlier than four 
years after the filing date of the patent application, or three years after the date of the patent grant if  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 63 
 
 
 this term expired earlier.  According to the Law, the patent owner would be considered not using or 
insufficiently using the patent if, inter alia, dom estic demand was satisfied by importation to a great 
extent, or the importation of the products manuf actured according to the protected invention 
hampered or obstructed the industrial application in the country.  No compulsory licence had been issued thus far.  Croatian legislation on compulso ry licensing would be harmonized with Article 31 of 
the TRIPS Agreement in the new Law on Patents. 
 
188. The fees and charges involved in granting a pa tent were established in accordance with the 
Law on Administrative Fees in the Field of Indus trial Property and the Decision on the Procedure 
Special Charges and Information Service Charg es of the State Intellectual Property Office. 
 
(f) Plant variety protection 
 189. The representative of Croatia said that this area was regulated by the Law on the Protection of 
Agricultural Plants.  The Law, which regulated the pr otection of new plant varieties, had been enacted 
in November 1997 and became effective on 13 D ecember 1997.  The Law was in compliance with the 
UPOV Convention, which Croatia intended to join.  National treatment was accorded on the condition 
of reciprocity, as provided by the UPOV Convention.  
(g) Layout designs of integrated circuits 
 190. The representative of Croatia said that Croatia had introduced a Law on the Topographies of 
Integrated Circuits in compliance with the provisi ons of Articles 35 to 38 of the TRIPS Agreement.  
Parliament had passed the Law on 30 June 1999 and it had entered into for ce in mid-July 1999.  
However, due to the time needed for all preparati ons required under the new system established by the 
new Law, the Law would be implemented from 30 November 1999.  (h) Requirements on undisclosed information, including trade secrets and test data. 
 
191. The representative of Croatia said that a Law on the Protection of Data Secrecy had entered 
into force at the end of 1996.  Clauses regulating the protection of information within government 
administration or by enterprises themselves coul d be found in the Law on General Administrative 
Procedure (Article 150), the Law on Government Officials and Employees (Article 32), the Penal 
Law (Article 295), the Labour Law (Articles 89,  92 (paragraph 4), 93 and 155), the Trade Law 
(Article 58) and the Company Law (Articles 248, 273 and 629).  Test data and other information 
supplied in the context of approving the marketi ng of pharmaceutical and of agricultural chemical 
products were protected by special regulations (by-la ws) applied by the Ministry of Health and the WT/ACC/SPEC/HRV/7/Rev.4 
Page 64  
 
 Ministry of Agriculture and Forestry.  The rules did not differ from the normal provisions applied in 
other countries.  Article 16 of the Law on Medicin es and Medical Products stipulated that documents 
received on pharmaceuticals or medical produc ts should be treated as trade secrets. 
 3. Measures to control abuse of  intellectual property rights 
 
192. The representative of Croatia said that mechanisms for the protection of intellectual property 
rights existed in administrative, civil and penal law.   Abuse of copyright and the right of performers 
was controlled by agents of the organization of au thors or the organization for performers' rights.  
Representatives registered with the State Intellectua l Property Office could act on behalf of foreign 
and domestic legal and natura l persons in the procedure for protection of industrial property rights.  A 
new Law on Enforcement included compulsory measures (fines, arrest and imprisonment) which 
could be applied in an expedite procedure.  193. Punishment - fines or imprisonment - for the infringement of copyright was set out in the 
Penal Law as well as in the Amended Copyright Law.  Fines for infringement of the rights of authors 
or performers could amount to (maximum) HRK 60,000.  4. Enforcement 
 
194. The representative of Croatia said that the Law on Enforcement, relating to the enforcement 
of court decisions, had entered into force on 12 August 1996.  Articles 298 and 299 of the Law 
contained provisions on provisional measures.  A court could also order provisional measures at the 
request of the infringed party in accordance with Ar ticle 442 of the Law on Legal Proceedings.  In his 
view, Croatian legislation fulfilled the requirement of Article 44 of the TRIPS Agreement regarding 
the right of a party to ask for injunctions.  He al so noted that the Law on the Protection of Market 
Competition could be invoked in disputes over the infringement of intellectual property before a 
commercial court in Croatia. 
 
195. In the combat against illegally produced pho nograms, the authorities in Croatia had seized 
12,899 video tapes, 9,646 audio tapes and 4,873 co mpact discs in 1996.  During 1997, 14,405 video 
tapes, 11,986 audio tapes and 2,920 compact discs had been seized.  During 1998 and the first quarter 
of 1999, the Department for Economic Crime Preventi on of Ministry of Interiors (police) had brought 
149 criminal charges for video piracy, 138 criminal charges for audio piracy and 47 criminal charges 
for trademark counterfeiting.  In the same period, the Department had seized temporarily 16,051 video 
tapes, 34,442 audio tapes, 6,618 CDs and 6,390 pro ducts bearing counterfeited trademark.  Criminal 
proceedings relating to these charges were under way.  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 65 
 
 
  
(a) Civil judicial procedures and remedies 
 
196. The Commercial Courts seated in Zagreb, Osije k, Rijeka and Split had initial jurisdiction over 
intellectual property matters.  The High Commerc ial Court (in Zagreb) was the competent second-
instance body for the protection of intellectual pr operty.  Decisions of the High Commercial Court 
could be appealed to the Supreme Court of the Re public of Croatia, which could also decide on the 
infringement of procedural rights.  The procedures in a case of infringement before a court were laid 
down in the Law on Civil Procedure, which also contained provisions on the right to obtain information to develop the case of a right holder.  Depending on the complexities of the case, the time between the initiation of the case before the court, and the court's decision, could take from two to 
three months to more than one year.  Court deci sions were set out in wr iting and substantiated in 
accordance with Article 338 of the Law on Legal Proceedings.  197. The dissatisfied party to a dispute could invoke  regular legal remedies (appeal and objection) 
or extraordinary legal remedies (request for the pr otection of legality, review or repetition of the 
procedure).  For example, a request for review of  a decision of the High Commercial Court should be 
filed with the Supreme Court within 30 days of re ceipt of the decision of the appellate court.  A 
request for the protection of legality should be file d with the Supreme Court by the Croatian State 
Attorney if the law or a treaty had been violated by a final decision. 
 (b) Provisional measures  198. The representative of Croatia said that the Law on Enforcement contained provisions on 
provisional measures.  In respect of infringement of  copyright, a court could order provisional seizure 
or prohibit the continued use of the disputed obj ects or works.  The comp etent police administration 
could prohibit cultural or artistic performances at  the request of the author or a professional 
association.  The financial police could temporar ily seize objects, documentation or financial means 
utilized in a criminal or economic offence or infringe ment.  As a general rule, courts did not have the 
authority to introduce provisional measures inaudita a ltera parte, but could do so if the rights of the 
infringed party were seriously threatened, and agai nst security for any damage inflicted on the other 
party as a result of the provisional measure.  In addition, Article 442 of the Law on Civil Procedure 
stipulated that judicial authorities could introdu ce provisional measures inaudita altera parte for the 
purpose of eliminating an immediate threat of unl awful damage, removing irreparable damage, or to 
prevent violence.  WT/ACC/SPEC/HRV/7/Rev.4 
Page 66  
 
 (c) Administrative procedures and remedies 
 
199. Administrative procedures in the area of indus trial property were carried out by the State 
Intellectual Property Office.  An administrative laws uit against an act of the Office could be initiated 
before the Administrative Court.  The administ rative procedure itself was governed by the Law on 
Industrial Property, the Law on General Administ rative Procedure and the Law on Administrative 
Lawsuits. 
 (d) Special border measures  200. The representative of Croatia said that Croatia had recently adopted the Law on the 
Ratification of International Conve ntion on the Harmonization of Bord er Controls of Goods.  Croatia 
planned to introduce a border control system conc erning the infringement of intellectual property 
rights, with due consideration to Articles 51 to 60 of the TRIPS Agreement, through the new Customs 
Law which Parliament had passed on 30 June 1999. 
 
(e) Criminal procedures  201. The representative of Croatia said that action in cases of copyright piracy and trademark 
counterfeiting could be instituted ex officio by the State attorney on the basis of criminal charges 
brought by the author or other copyright holder, the trademark holder, the police or any other government body (financial police, market inspector ate) which, in the course of its activity, had 
detected a committed criminal act.  Remedies - in cluding seizure, forfeiture and destruction of the 
infringing goods - were available in the Penal Law,  notably in Chapters XVII and XXI, as well as in 
the Amended Copyright Law.  The procedural crim inal provisions were contained in the new Law on 
Criminal Procedure in force since January 1998.  202. The representative of Croatia that his Governme nt would apply fully th e provisions of the 
Agreement on Trade-related Aspects of Intellectua l Property Rights (TRIPS) by the date of its 
accession to the WTO without recourse to a transitional period.  The Working Party took note of this commitment.  Policies Affecting Trade in Services
 
 
203. The representative of Croatia said that, as a ma rket-oriented country in transition, Croatia was 
adjusting its legislation according to the princi ples of liberalization advocated by the WTO.  
Accepting fully the rules and principles of the Gene ral Agreement on Trade in Services, Croatia was  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 67 
 
 
 strongly committed to the rules preventing discriminat ory measures and restrictions related to market 
access and national treatment in all modes of su pply.  He noted that Croatia would seek MFN 
exemptions in the road transport area, audiovisual  services and concerning acquisition of real estate 
(reciprocity requirement).  These exemptions would apply to all countries.  204. On a further point raised by a member, the representative of Croatia confirmed that Croatia 
would accord national treatment to foreign persons who have acquired assets on whatever legal basis 
in respect of their ownership rights and obligatio ns, in accordance with GATS Article XVII.  The 
Working Party took note of this commitment.  205. Regulation of services activities was within the competence of various institutions, including 
the Ministries of Science and Technology;  Fina nce, Economy, Maritime Affairs, Transport and 
Communications;  Health;  Education and Sports;  Urban Planning, Construction and Housing;  
Labour and Social Welfare;  and the Croatian Se curities Commission, etc.  Several new laws and 
amendments were in preparation (listed in doc ument WT/ACC/HRV/30, reply 163).  Work permits 
were issued in accordance with the Law on Employm ent of Foreign Persons.  The Law did not make 
any distinction between short-term or long-term em ployment, and stipulated that work permits were 
issued in concordance with the length of employm ent contracts, with validity up to two years 
(renewable). 
 
206. The Company Law, the basic act for commenci ng business activity in Croatia, stipulated the 
conditions for establishing commercial presence in Cr oatia.  He confirmed that commercial presence 
could take the form of a fully new company, subsidia ry, branch and/or any kind of joint-venture, and 
that commercial presence with respect to the degr ee of foreign ownership was not limited.  In 
response to a specific question, he replied that the Law defined a branch office as serving the purpose 
of carrying out business activities of a company or an individual merchant outside the place of the 
registered office.  A branch office was not a separ ate legal entity;  its rights and obligations were 
vested in the parent company.  Branch offices were registered with the appropriate registration court.  
Applications should be accompanied by (i) an excerpt  from the home court register of the founder or a 
valid document indicating the legal form of the f ounder and the date of establishment;  (ii) the 
decision of the founder to set up a branch office;  (iii) a certified copy of the foundation statement, articles of association or memorandum of assocition of  the founder;  and (iv) a certified abbreviated 
(most recent) annual balance sheet of  the founder.  A foreign person c ould have several branch offices 
in Croatia.  The founder was required to designa te a person (or persons), residing in Croatia, 
authorized to represent the branch office in Croatia.  The scope of activities allowed to be carried out 
by a representative office was regulated by the Law on Trade.  A representative office could not be 
used to carry out regular business activities.  Be fore opening a representative office foreign persons WT/ACC/SPEC/HRV/7/Rev.4 
Page 68  
 
 were required to register it in the Register of Representative Offices, kept by the Ministry of the 
Economy.  The procedure for opening and registration of representative offices was regulated by the 
Decree on conditions for Establis hment and Operation of Foreign Representative Offices in the 
Republic of Croatia (published in the Official Gazette on 24 January 1997). 
 207. The representative of Croatia provided information on the establishment of a bank, branch 
and representative office (circulated in document WT/ACC/HRV/17 of 29 July 1996).  Foreign banks 
were admitted in Croatia on the basis of reciprocity .  The reciprocity requirement had been removed 
through Amendments on the Banking Law, which ha d entered into force on 29 June 1998.  The 
appropriate bank licence was issued by the National Bank of Croatia.  The minimum capital 
requirement for the establishment of a bank amounted to DM 5 million in local currency, or DM 15 
million for banks registered for transactions with  foreign countries.  Savings banks could be 
established with a minimum capital equivalent to DM  1 million, but these banks were not allowed to 
accept deposits from, or extend credits to, legal persons  or make transactions with foreign countries.  
A representative office of a foreign bank could onl y engage in market research, promotion or 
representational activities.  Parliament had adopted a new Banking Law on 18 December 1998 
(Official Gazette No. 161/98).  Its main features rela ted to the provisions reinforcing the competence 
and the supervisory rôle of the Croatian National Bank (Central Bank) in securing the stability of the 
banking system in Croatia.  The reciprocity re quirement for establishment had been abolished 
definitely in the new Law.  According to the new Law, the minimum capital requirement for the 
establishment of a bank amounted to HRK 20 million, or HRK 60 million for banks registered for transactions with foreign countries.  Regarding brokerages and securities houses, foreign operators 
would need a local intermediary.  Foreign co mpanies with operating presence in Croatia could 
manage and underwrite share issues, otherwise a loca l partner would be required.  Non-residents were 
not allowed portfolio investment in short-term securities. 
 208. The insurance sector was govern ed by the Law on Insurance.  Foreign insurance companies 
were not permitted to operate through branch offices in Croatia, but would need to establish either a 
wholly-owned or a joint-stock company, only as a s ubsidiary.  This limitation would be abolished and 
branching in the insurance industry allowed fo r non-residents upon accession to the WTO.  Croatia 
had introduced certain restrictions on cross-border provision of insurance and re-insurance to reduce 
capital outflows and encourage the development of a domestic insurance market.  Restrictions on modes 1 and 2 in reinsurance and retrocession would be removed upon accession to the WTO.  
Companies not headquartered in Croatia were, for example, only allowed to provide life and non-life 
insurance against risks not covered by Croatian co mpanies.  From the date of accession, cross-border 
provision of MAT insurance services and a number of  other insurance services would be allowed.  
However, full opening of Croatria's insurance sector to  direct foreign competition, particularly in all  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 69 
 
 
 aspects of direct life and non-life insurance on a cross-border basis, would put the domestic sector in 
unequal position with insurance industries in neighbo uring countries whose national markets were not 
yet fully liberalised. 
 209. The telecommunications sector was currently regul ated by the Ministry of Maritime Affairs, 
Transport and Communications.  Competition was allowed in all telecommunication services sectors 
except basic services in fixed networks (voice te lephony and telex) and leased lines.  Foreign 
companies could only provide basic telecommunication services through, and in agreement with, Croatian Post and Telecommunications (HPT).  Other services, such as mobile telecommunication networks, electronic mail, on-line information, elect ronic data interchange and value-added services 
could be provided by a Croatian subsidiary operating with a concession from the Telecommunications 
Council.  The "Law on the separation of the Croatia n Post and Telecommunications into the Croatian 
Post and the Croatian Telecommunications" had been adopted on 10 July 1998.  The Law stipulated 
the actual separation into two joint-stock comp anies - one for postal services, the other for 
telecommunications - to take effect as from 1 January 1999.  According to the Law on 
Telecommunication, foreign entities could hold up to  25 per cent of the capital of the radio and 
television concessionaire in radio, television and cable television concessions.  Until 1 January 2003, 
HT (Croatian Telecommunication) would be the so le supplier of fixed network infrastructure and 
provider of basic telecommunication services.  From that date, the market would be opened to other 
providers.  The situation was similar for enhanced telecom services and other telecom services, where 
the market would be opened for other providers as of 1 January 2001.  210. The State-owned Croatian Railways (HZ) held  a monopoly on transportation of passengers 
and goods by rail, but was exposed to heavy compe tition from other modes of carriage, in particular 
road transport.  Foreign companies could provide public transportation through a registered Croatian 
subsidiary licensed by the authorities concerned.  The Maritime Code required foreign-flag carriers 
transporting passengers and goods betw een Croatian ports to hold a licence for cabotage.  Croatia was 
requesting an MFN exemption on road passenger and freight transportation because of the  
commercial characteristics of road transport servi ces in the region.  These services were regulated 
through bilateral or plurilateral ag reements on road transport, which reserved or limited the supply of 
road transport services and specified operating conditions, including transit permits quotas and/or preferential road taxes of transport services into, in , across and out of the territories of the parties 
concerned.  The MFN exemption was therefore essen tially of commercial nature, and was related to 
the issue of competitiveness on the European road passenger and freight transport market. 
 211. Concerning professional services, he said that legal services and legal assistance could only 
be provided by lawyers and lawyers' associations registered with the Bar Council of the Republic of WT/ACC/SPEC/HRV/7/Rev.4 
Page 70  
 
 Croatia.  Registration in the Bar Council required Cr oatian citizenship, a degree from the Faculty of 
Law, passing of the bar examination in Croatia, a nd high proficiency in the Croatian language.  The 
citizenship requirement applied only for legal proc edures relating to Croatian Law, and not for legal 
consultancy on foreign and inte rnational law (through consultanc y firms).  Parties could be 
represented by lawyers registered in other countries in  disputes before selected (arbitration) courts in 
matters involving international issues.   Foreign auditing companies - not established in Croatia - could 
access the Croatian market only in join t operation with a local partner. 
 212. A new Law on the Tourist Industry had entered into force at the end of 1996, harmonizing 
Croatian legislation with regulations applicable  in European Communities' countries.  The new 
legislation provided a framework for upgrading cater ing and tourism services in Croatia.  The war had 
affected the tourist industry significantly, and th e Croatian Tourism Association was implementing a 
promotion programme to regain lost markets.  The Government had assisted the revival of the 
industry by allocating about HRK 30 million (US $4.6 million) in its 1997 budget and HRK 30 million 
in the 1998 budget for the promotion of tourism (studies of markets overseas, participation in 
international fairs, printing of catalogues, etc,),  and HRK 45 million (US$6.9 million) in 1997 and 
HRK 43 million in 1998 in subsidies to air, road and sea transport to promot e tourist visits, tour 
operators, travel and tourist agencies.  A budget a llocation of HRK 70 million for the tourism industry 
was foreseen for 1999. 
 
213. Croatia's Schedule of Specific Commitments on Se rvices is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Repor t (see paragraph 226 below).  This Schedule of 
Specific Commitments on Services contains the legally binding market access commitments of 
Croatia in respect of services. 
 
Transparency
 
 Publication of Information on Trade 
 
214. The representative of Croatia stated that the transparency of Croatia's laws and other 
regulations was ensured through obligatory publication of  all laws and regulations  in Croatia's Official 
Gazette "Narodne Novine".  A Law granted that no me asure could be applied be fore being published.  
A Law entered into force eight days after its publi cation in the Official Gazette.  All amendments and 
changes in laws and regulations were also publishe d in Official Gazette to enable all interested 
persons (companies) to get acquainted with th em.  Furthermore, TBT measures including draft 
standards were published in the Official Journal of the State Office for Standardisation and Metrology 
allowing the public 30 days to provide comments and remarks.  The competent authorities in Croatia  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 71 
 
 
 were drafting a Regulation on methods and procedur es for issuing technical regulations prescribing 
quality and health requirements as a referral point for SPS controls on these item.  He added that the 
Official Gazette "Narodne novine" was av ailable on the internet (www.nn.hr). 
 215. The representative of Croatia said that, at the la test from the date of accession, all laws and 
regulations related to trade would be published in the Official G azette "Narodne novine" promptly and 
that no law or regulation relate d to international trade would b ecome effective prior to such 
publication.  He further stated that Croatia w ould implement fully Article X of the GATT 1994 and 
the other transparency requirements in WTO Ag reements requiring notification and publication. 
 Notification 
 
216. The representative of Croatia said that, at the latest upon entry into force of the Protocol of 
Accession, Croatia would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subsequent ly enacted by Croatia which gave effect to the 
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of this commitment. 
 Trade Agreements
 
 
217. The representative of Croatia submitted an updated list of bilatera l trade and economic 
agreements, and international or ganizations in which Croatia wa s participating (circulated in 
document WT/ACC/HRV/6/Rev.1 on 9 October 1996).  The trade and economic cooperation 
agreements were based on the principle of most favour ed nation treatment.  He added that Croatia was 
fully committed to the MFN principl e in market access and in other areas covered by the WTO.  His 
Government intended to co nclude free-trade agreements with C EFTA countries and in due course join 
the European Communities, and would ensure that an y such agreements would meet the requirements 
of GATT Article XXIV. 
 
218. Trade preferences for goods originating in Tunisia, Turkey, Uruguay, Spain, Former 
Yugoslav Republic of Macedonia and Slovenia had been abolished at the end of 1993.  At present, the 
only preferential trading agreements in force were  a Free Trade Agreement with the Former Yugoslav 
Republic of Macedonia, and an FTA with the Repub lic of Slovenia concluded in 1997.  These FTA's 
were based on the CEFTA model a nd covered substantially all trad e between Croatia, Slovenia and 
the Former Yugoslav Republic of Macedonia.  Prefer ential market access on agricultural products was 
granted through tariff rate quotas.  None of these Ag reements covered trade in services.  Copies of the 
trade agreements were provid ed to the Working Party. WT/ACC/SPEC/HRV/7/Rev.4 
Page 72  
 
  
219. The Trieste and Gorizia Agreement of 1955 included provisions regulating border trade 
between the municipalities of Buje, Novigrad and Um ag in Croatia and border areas in Slovenia.  The 
exchange of trade was based on indication lists "A " (exports) and "B" (imports), and duty-free lists 
"C" (exports) and "D" (imports).  Products im ported under list "D" (reproduced in document 
WT/ACC/HRV/30, pp,78-80) were duty-free provided they were designated for usage in the border 
area determined by the Trieste Agreement.  Local  export-import trade could be carried out by a 
company located in the bo rder area and registered with the Court register for such activities. 
 220. In response to a request by a member, the representative of Croatia confirmed that Croatia 
would notify the Free Trade Agreement between th e Republic of Croatia a nd the Former Yugoslav 
Republic of Macedonia to the Committee on Regional Trade Agreements no later than upon Croatia's 
accession to the WTO.  221. A member noted provisions regarding a 1 per cent customs evidence fee in Croatia's Free 
Trade Agreement with the Former Yugoslav Republic  of Macedonia, and ques tioned the consistency 
of such a fee with Articles XXIV and VIII of the GATT.  The representative of Croatia replied that 
Croatia applied 1 per cent customs duty on im ports from the Former Yugoslav Republic of 
Macedonia, while the latter applied a 1 per cent cu stoms evidence fee on Croatian exports.  Croatia 
recognized that such provisions in its Free Trade Agreement with the Former Yugoslav Republic of 
Macedonia were not in compliance with Article XXIV  of the GATT.  The authorities of Croatia and 
the Former Yugoslav Republic of Macedonia had accord ingly agreed that Croatia would eliminate the 
1 per cent customs duty, thereby applying zero duty in  accordance with the Free Trade Agreement, at 
the latest by the date of accession, and the Form er Yugoslav Republic of Macedonia would eliminate 
the 1 per cent customs evidence fee as from 1 January 2000. 
 222. A member requested Croatia to report on the specific steps taken to date to pursue a 
WTO-consistent FTA with Bosnia and Herzegovina.  In reply, the representative of Croatia said that 
the Agreement on Economic Cooperation between the Government of the Republic of Croatia and the 
Governments of the Republic a nd Federation of Bosnia and Her zegovina had been negotiated and 
signed in 1995.  At that time, Bosnia and Her zegovina was not organized under the Dayton Peace 
Agreement provisions, thus there were two customs territories in Bosnia and Herzegovina (Federation 
and Republic Srpska).  Having in mind the special  relations envisaged between the Republic of 
Croatia and the Federation of Bosnia and Herzeg ovina in the Washington Agreement, Croatia's 
Government had opted for a Free Trade Agreement w ith the federal customs territory in Bosnia and 
Herzegovina.  New political developments aris ing from the Dayton Peace Agreement signed in 
December 1995, which also introduced a single cust oms territory of Bosnia and Herzegovina with two  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 73 
 
 
 customs administrations, had underscored the necess ity of changing the scope of the Agreement on 
Economic Cooperation.  Therefore, Croatia's G overnment had passed a decision in May 1998 to 
negotiate a draft Trade Agreement with the Co uncil of Ministers of Bosnia and Herzegovina, 
introducing a free trade arrangement with the whol e territory of Bosnia and Herzegovina.  The 
negotiations had been delayed due to the preparat ion of elections in Bosnia and Herzegovina in 
September 1998.  The draft new Free Trade Agreem ent proposed by Croatia envisaged completely 
free trade in industrial goods (without a 1 per cent cu stoms fee) and exchange of concessions in trade 
in agricultural goods, thus bringing the provisions of that Agreement in line with WTO rules and 
disciplines.  223. Negotiations between the Government of Croatia and the Council of Ministers of Bosnia and 
Herzegovina on concluding a Free  Trade Agreement, covering subs tantially all trade in products 
originating in the Republic of Croatia and the w hole territory of Bosnia and Herzegovina, had begun 
in March 1999.  The Agreement on Economic Coope ration between the Republic of Croatia and the 
Federation of Bosnia and Herze govina had been abolished on 15 Ma y 1999, thus reintroducing MFN 
based trade between Croatia and the whole territory of Bosnia and Herzegovina.  This regime would 
remain in place until the conclusion of a Free Tr ade Agreement between Croatia and Bosnia and 
Herzegovina as a whole.  The Government of Cr oatia expected the new FTA to be signed and 
implemented prior to Croatia’s accession to the WTO. 
 
224. The representative of Croatia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle V of the GATS in its trade agreements, 
and would ensure that the provisions of these WT O Agreements for notification, consultation and 
other requirements concerning free trade areas and customs unions of which Croatia was a member 
were met from the date of accession.  The Working Party took note of these commitments. 
 Conclusions
 
 
225. The Working Party took note of the explanati ons and statements of Croatia concerning its 
foreign trade regime, as reflected in this report.   The Working Party took note of the commitments 
given by Croatia in relation to certain specific matte rs which are reproduced in  paragraphs 26, 33, 37, 
41, 47, 58, 64, 73, 83, 88, 99, 101, 105, 108, 111, 122, 135, 137, 146, 148, 156, 160, 168, 202, 204, 216 and 224 in this Report.  The Working Part y took note that these commitments had been 
incorporated in paragraph 2 of the Protocol of Accession of Croatia to the WTO. 
 226. Having carried out the examination of the foreign trade regime of Croatia and in the light of 
the explanations, commitments and concessions made  by the representative of Croatia, the Working WT/ACC/SPEC/HRV/7/Rev.4 
Page 74  
 
 Party reached the conclusion that Croatia should be invited to accede to the Marrakesh Agreement 
Establishing the WTO pursuant to the provisions of Article XII.  For this purpose the Working Party 
has prepared the Draft Decision and Protocol of Accession reproduced in the Appendix to this report, 
and takes note of Croatia's Schedule of Sp ecific Commitments on Services (document 
WT/ACC/HRV/…) and its Schedules of Concession s and Commitments on Agriculture and Goods 
(document WT/ACC/HRV/…) that are attached to the Protocol of Accession.  It is proposed that 
these texts be approved by the General Council when  it adopts the Report.  When the Decision is 
adopted, the Protocol of Accession would be open for acceptance by Croatia which would become a 
Member thirty days after it accepts the said Protocol .  The Working Party agreed, therefore, that it had 
completed its work concerning the negotiations for the accession of Croatia to the Marrakesh 
Agreement Establishing the WTO.  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 75 
 
 
 APPENDIX 
ACCESSION OF CROATIA  
Draft Decision  
The General Council,  Having regard
 to the results of the negotiations direct ed towards the establishment of the terms 
of accession of the Republic of Croatia to the Marrakesh Agreement Esta blishing the World Trade 
Organization and having prepared a Prot ocol for the Accession of Croatia, 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic  of Croatia may accede to the Marrakesh Agreemen t Establishing 
the World Trade Organization on the te rms set out in the said Protocol. WT/ACC/SPEC/HRV/7/Rev.4 
Page 76  
 
 PROTOCOL OF ACCESSION OF CROATIA 
TO THE MARRAKESH AGREEMENT ESTABLISHING 
THE WORLD TRADE ORGANIZATION 
DRAFT 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and the 
Republic of Croatia (hereinafter referred to as "Croatia"), 
 Taking note
 of the Report of the Working Party on the Accession of Croatia to the WTO in 
document WT/ACC/HRV/…. (hereinafter referred to as the "Working Party Report"), 
 Having regard  to the results of the negotiations on the accession of Croatia to the WTO, 
 Agree  as follows: 
Part I – General 1. Upon entry into force of this Protocol, Cr oatia accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO. 
2. The WTO Agreement to which Croatia accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal instrume nts as may have entered into force before the date 
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in 
paragraph 225 of the Working Party Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in the paragraphs referred to in paragraph 225 of the Working 
Party Report, those obligations in the Multilateral  Trade Agreements annexed to the WTO Agreement 
that are to be implemented over a period of time st arting with the entry into force of that Agreement 
shall be implemented by Croatia as if it had accepted that Agreement on the date of its entry into force. 
4. Croatia may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and 
meets the conditions of the Annex to the GATS on Article II Exemptions.  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 77 
 
 
 Part II – Schedules. 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to Croatia.  The staging of concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the 
respective Schedules. 
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
Part III - Final Provisions 
7. This Protocol shall be open for acceptanc e, by signature or ot herwise, by Croatia until 
[31 October 2000]. 
8. This Protocol shall enter into force on th e thirtieth day following the day of its acceptance. 
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance 
thereto pursuant to paragraph 7 to each member of the WTO and Croatia. 
10. This Protocol shall be regist ered in accordance with  the provisions of Article 102 of the Charter 
of the United Nations. 
11. Done at Geneva this … day of  … two thousand … in a single copy in the English, French and 
Spanish languages each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in only one or more of these languages. WT/ACC/SPEC/HRV/7/Rev.4 
Page 78  
 
 ANNEX 1 
Laws, regulations and other information provided to the Working Party by Croatia
 
- The Law on the Foreign Exchange System, Foreign Exchange Operations and Gold 
Transactions; 
- Transformation of Socially-Owned Enterprises Act; 
- The Privatization Act of 1 March 1996; - Annual Report of the Croatian  Privatization Fund for 1994; 
- Financial Statements of the Croati an Privatization Fund for 1993 and 1994; 
- Privatization in the Republic of Croatia; 
- Results of Voucher Privatization in Croatia; 
- List of Public Enterprises; - Electric Power Supply Act with Explan ations and Restructuring Programme; 
- Restructuring Programme and th e new Croatian Railways Act; 
- Law on Exceptional Measures of Price Control; 
- Decision Promulgating the Law on Exceptional Me asures of Price Controls of 8 July 1997; 
- Decision on the Compulsory Reporting of Price Lists and Tariffs of Certain Legal Persons; 
- Order on Identifying Products Requiring Reporti ng of Prices and Margins for the Purpose of 
Control; 
- Decision on Compulsory Reporting of the Pri ce Lists or Tariffs of Certain Products and 
Services; 
- Order on Identifying the Products and Services  Requiring the Reporting of Price Lists of 
Tariffs; 
- List of Products and Services which are s ubject to the Obliged Notification of Prices; 
- The Croatian Competition Protection Act; - The Croatian Company Law; 
- Law on Trade; 
- Law Amending the Law on Trade (adopted on 30 June 1999); - The Croatian Customs Law; - Customs Law (adopted on 30 June 1999); - The Croatian Customs Service Act; - Diskette containing the new customs tariff (in force as from 1 July 1996); 
- Decree on the Criteria for Tariff Quota; 
- Decree Amending the Law on Administrative Taxes; - Decree of 24 June 1999 Amending the Administrative Taxes Amounts of the Law on 
Administrative Taxes (equalizing administra tive fees on import and export of waste); 
- Tax System of the Republic of Croatia:  Profit Tax Act, Income  Tax Act and VAT Act; 
- Law on Excise Tax on Oil Derivatives; 
- Law on Excise Tax on Beer; - Law on Excise Taxes on Automobiles, Ot her Motor Vehicles, Vessels and Aircraft; 
- Law on Excise Tax on No n Alcoholic Beverages; 
- Law on Excise Tax on Coffee; - Law on Excise Taxes on Spirits; 
- Law on Excise Tax on Spirits; 
- Law amending the Law on Special Taxes on Tobacco Products (ado pted on 18 June 1999); 
- Export/Import Quotas for the Years 1991, 1992 and 1993; - Export/Import Quotas  for the Year 1995; 
- Export/Import Quotas for 1996; 
- List of Goods Imported and Expor ted on the Basis of 1995 Licences; 
- Export/Import Licences in 1996; - Decision Amending the Decision Determining th e Goods Imported and Exported on Basis of 
Licences;  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 79 
 
 
 - Decision Amending the Decision Determining the Goods Imported and Exported on the Basis 
of Licences; 
- Extract of the Draft Customs Law relate d to the issue of Customs Valuation; 
- Statute of the Republic of Croatia on the Cond itions and Method of Determining Tariff Bases; 
- Customs Regulations for Determining the Cust oms Value According to the Customs Law of 
the Republic of Croatia (Articles 29 to 48); 
- Law on Waste; - Law on Environmental Protection; - Decree on Rules of Origin and Procedure fo r Issue of Certificate of Origin (as of 
24 June 1999); 
- Attachment to the Decree on Rules of Origin; 
- Certificate of Origin; - Decision on Determining the Goods Expo rted on Basis of Quota of 12 July 1996; 
- Decision on Termination of the Decision on Determining the Goods Exported on Basis of 
Quota; 
- Decision on Termination of the Decision on De termining the Goods Exported on the Basis of 
Quota; 
- Subsidies and Supports from State Budget Gran ted in the Republic of Croatia in 1997 and 1998; 
- War Damage to the Agricultural Se ctor of the Republic of Croatia; 
- Basic Data on the Fishing Sect or of the Republic of Croatia; 
- Government Decision on Establishi ng the TBT and SPS Enquiry Point; 
- The Standardization Act of 2 July 1996; 
- Standardization Act; - State Office for Standardization and Metrology:  Rules for Preparation, Adopting and Issuing of 
Croatian Standards; 
- List of Croatian Standards; 
- Law on State Inspectorate (adopted on 30 June 1999); 
- Extract of the draft Law on State Inspectorat es in Economy and Labour Area Related to the 
Quality Control System; 
- Products Subject to Quality Control on Imports (HS Numbers); - Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import; 
- Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import of 23 May 1995; 
- Regulation on the Procedure for the Adopti on of Regulations on Basic Requirements for 
Goods, Processes and Services; 
- Regulation Amending the Regulation on Standard Quality of Liquid Fuels (as of 
24 June 1999); 
- Law Concerning the Healthiness and Health Co ntrol of Foodstuffs and General Use Articles; 
- Law concerning the Healthiness and Health Cont rol of Foodstuffs and General Use Articles 
(1996); 
- Drugs and Medical Products Law; - Plant Protection Act; 
- Phytosanitary Certificate; 
- Regulation on Phytosanitary Insp ection of Plants and Control of Plant Protection Products in the 
National Cross-Boundary Transportation; 
- Regulation on Phytosanitary Inspection of Plants  and Control of Plant Protection Products in 
National Cross-Boundary Transportati on (to be revised by 1 June); 
- Draft Regulation on the Amendments of the Regulation on Phytosanitary Inspection of Plants 
and Control of Plant – Protection Products in the National Cross – Boundary Transportation; 
- List of Quarantine Plant Pests; - Norms for the Establishment of Health Conditions of Crops, Nurseries, Seed and Planting 
Material; 
- Law on State Commodity Reserves; 
- The Croatian Free Zones Act; WT/ACC/SPEC/HRV/7/Rev.4 
Page 80  
 
 - Decree on Procurement of Goods, Works and Services; 
- Law on Procurement of Go ods, Services and Works; 
- Agricultural Strategy of the Republic of Croatia; - List of Protection Measures on Agricultural and Food Products; 
- Import Prices for Agricultural Products in 1997; 
- The Tobacco Law of 5 July 1999; 
- Agreement on Trade-related Aspect s of Intellectual Property Rights; 
- Copyright Law (unofficial consolidated integral version); - Law on the Amendments of the Copyright Law (adopted on 30 June 1999); - Trademark Law (adopted on 30 June 1999); 
- Patent Law (adopted on 30 June 1999); 
- Industrial Design Law (adopted on 30 June 1999); - Law on the Protection of Layout-Designs on Inte grated Circuits (adopted on 30 June 1999); 
- Law on the Protection of Geographical Indica tions of Products and Services (adopted on 
30 June 1999); 
- The Croatian Banking Act; 
- Law Amending the Law on Banks and Savi ngs Banks (Official Gazette No.89 of 
30 June 1998); 
- Credit Relations with Foreign Countries Act; 
- Insurance Law; - Law on Insurance and Sale of Securities of 1 January 1996; 
- Decision Promulgating the Law on I nvestment Funds of 14 December 1995; 
- Law on Telecommunications; - The Agreement on the Economic Co-operation between the Government of the Republic of 
Croatia and the Government of the Republic and Federation of Bosnia and Herzegovina; 
- Free Trade Agreement between the Republic of Croatia and th e Former Yugoslav Republic of 
Macedonia; 
- Free Trade Agreement between the Republic of Croatia and the Republic of Slovenia; - Reasons for requesting developi ng country treatment for the Repu blic of Croatia within the 
WTO; 
- Tender Documentation for the Purchase of Joint Stock Companies; - World Bank Project Portfolio in Croatia; 
- List of IBRD, EBRD and CEF Project Loans;  and 
- Imports to Croatia 1998.  
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 81 
 
 
 Table 5  
Products Subject to Import Licensing1 
HS code Produce description Licensing authority 
26.12  Uranium or thorium ores and concentrates  
 2612.10 Uranium ores and concentrates  
 2612.20 Thorium ores and concentrates  
28.44  Radioactive chemical elements and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and their compounds;  
mixture and residues containing those products:  
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures c ontaining these products  
 2844.20 - Uranium enriched in U 235 and its compounds;  
plutonium and its compounds;  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures containing uranium enriched U 235, plutonium or compounds of these products  
 2844.30 - Uranium depleted in  U 235 and its compounds; 
alloys, dispersions (inc luding cermets), ceramic 
products and mixtures containing uranium depleted in U 235, thor ium or compounds of 
these products  
 
Ministry of Economy 
 2844.40 Radioactive elements and isotopes and 
compounds other than those of subheading No. 
2844.10, 2844.20 or 2844.30; alloys, dispersions ( including cermets ), ceramic products and mixtures containing these elements, isotopes or compounds; radioactive residues  
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactors  
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such isotopes, whether or not  chemically defined  
 2845.10 - Heavy water (deuterium oxide)  
 2845.90 - Other  
 2845.901 - Deuterium  
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated  
 2904.201 - Nitrobenzene  
 2904.202 - Dinitrobenzene  
 2904.203 - Di and trinitrotoluene  
29.20  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their halogenated, sulphonated, nitrated or nitrosalted 
derivatives:  
                                                      
1 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer WT/ACC/SPEC/HRV/7/Rev.4 
Page 82  
 
 HS code Produce description Licensing authority 
 2920.90 - Other:  
 2920.9003 - Nitroglycerin  
 2920.9004 - Other esters of nitrate acid  
 2920.9006 - Salts from other acids  
30.01  Glands and other orga ns for organo-therapeutic 
uses, dried, whether or not powdered;  extracts 
of glands or other organs or of their secretions 
for organo-therapeutic uses;  heparin and its salts;  other human or animal substances prepared for ther apeutic or prophylactic uses, not 
elsewhere specified or included  
 
 
 
 3001.10 - Glands and other orga ns, dried, whether or not 
powdered  
 3001.90 - Other  
 3001.909 - Other  
30.02  Human blood;  animal blood prepared for 
therapeutic, prophylactic or diagnostic uses;  
antisera and other blood fractions and modified 
immunological products, whether or not obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar 
products  
 3002.10 - Antisera and other blood fractions and 
modified immunological products, whether or 
not obtained by means of biotechnological 
processes Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 
 3002.20 - Vaccines for human medicine  
 3002.30 - Vaccines for veterinary medicine  
 3002.90 - Other  
 3002.909 - Other  
30.03  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) consisting of two or 
more constituents which have been mixed 
together for therapeutic or prophylactic uses, not 
put up in measured doses or  in forms or packings 
for retail sale:  
 3003.10 - Containing penicillin  or derivatives thereof, 
with a penicillanic acid structure, or streptomycin or their derivatives  
 3003.20 - Containing other antibiotics  
 3003.201 - Containing rolitetracyclin  
 3003.209 - Other  
 3003.30 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics  
 3003.31 - Containing insulin  
 3003.39 - Other  
 3003.40 - Containing alkaloids or derivatives thereof but 
not containing hormones or other products of heading No.2937 or antibiotics  
 3003.90 - Other  
 3003.901 Polimaltic complex w ith iron (III) hydroxide   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 83 
 
 
 HS code Produce description Licensing authority 
 3003.902 - Saccharine complex with iron (III) hydroxide  
 3003.909 - Other 
30.04  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or 
packings for retail sale:  
 3004.10 - Containing penicillin  or derivatives thereof, 
with a penicillanic acid structure, or 
streptomycin or their derivatives:  
 3004.101 - Ready made medicaments for retail sale  
 3004.109 - Medicaments in doses in bulk  
 3004.20 - Containing other antibiotics  
 3004.201 - Ready made medicaments for retail sale  
 3004.209 - Medicaments in doses in bulk  
 3004.3 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics  
 3004.31 - Containing insulin  
 3004.301 - Ready made medicaments for retail sale  
 3004.319 - Medicaments in doses in bulk  
 3004.32 - Containing adrenal cortical hormones  
 3004.321 - Ready made medicaments for retail sale  
 3004.329 - Medicaments in doses in bulk  
 3004.39 - Other  
 3004.391 - Ready made medicaments for re tail sale Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 3004.399 - Medicaments in doses in bulk  
 3004.40 - Containing alkaloids or derivatives thereof but 
not containing hormones,  other products of 
heading No.2937 or antibiotics  
 3004.401 - Ready made medicaments for retail use  
 3004.402 - Oncovin doses in bulk  
 3004.409 - Other medicaments in doses in bulk  
 3004.50 - Other medicaments containing vitamins or 
other products of heading No.2936  
 3004.501 - Ready made medicaments for retail sale  
 3004.509 - medicaments in doses in bulk  
 3004.90 - Other  
 3004.902 - Other medicaments for retail sale  
 3004.903 - Medicaments in doses in bulk  
 3004.909 - Other  
30.06  Pharmaceutical goods specified in note 4 to this 
chapter  
 3006.20 - Blood grouping reagents  
 3006.30 - Opacifying preparations for x-ray 
examinations; diagnostic reagents designed to be administered to the patient  
 3006.60 - Chemical contraceptive preparations based on 
hormones or spermicides  
36.01 3601.00 Propellant powders  WT/ACC/SPEC/HRV/7/Rev.4 
Page 84  
 
 HS code Produce description Licensing authority 
 3601.001 - Propellant powders with no smoke  
 3601.002 - Black propellant powder for hunters 
 3601.003 - Black propellant powder for miners  
 3601.009 - Other Black propellant powder  
36.02 3602.00 Prepared explosive, other than propellant 
powders  
 3602.001 - On the basis of ammonium nitrate  
 3602.002 - On the basis of chlorate and perchlorate  
 3602.003 - On the basis of nitroglycerine  
 3602.004 - On the basis of nitrate esters  
 3602.009 - Others  
36.03 3603.00 Safety fuses; detonating fuses; percussion or 
detonating caps; igniters;  electric detonators:  
 3603.001 - Detonating fuses  
 3603.002 - Safety fuses  
 3603.003 - Caps  
 3603.004 - Igniters  
 3603.009 -Detonators  
36.04  Fireworks, signalling flares, rain rockets, fog 
signals and other pyrotechnic articles  
 3604.90 - Other  
 3604.901 - Rain rockets 
38.01  Artificial graphite; colloidal or semi-colloidal 
graphite; preparations based on graphite or other carbon in the form of pastes, plates or other 
semi-manufactures 
 3801.10 - Artificial graphite 
 3801.101 -Of nuclear grade 
48.08  Paper and paperboard, corrugated (with or 
without glued flat surf ace sheets), creped, 
crinkled, embossed or perforated, in rolls or 
sheets, other than paper of the kind described in 
heading No.48,03  
 
 
   
Ministry of Economy 
 4808.10 - Corrugated paper and paperboard, whether or 
not perforated  
48.19  Cartons, boxes, cases, bags and other packing 
containers, of paper, paperboard, cellulose 
wadding or webs of cellulose fibres;  box files, letter trays, and simila r articles, of paper or 
paperboard of a kind used in offices, shops or the like  
 4819.10 - Cartons, boxes and cases, of corrugated paper 
or paperboard  
49.07 4907.00 Unused postage, reve nue or similar stamps of 
current or new issue in the country to which they are destined;  stamp-impressed paper;  banknotes;  cheque forms;  stock;  share or bond 
certificates and similar documents of title:  
 4907.002 - Securities (stocks, cheque forms, etc,)  
 4907.003 - Banknotes which are not legal tender in any 
country   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 85 
 
 
 HS code Produce description Licensing authority 
 4907.009 - Other  
 
68.15  Articles of stone or of other mineral substances 
(including carbon fibres, arti cles of carbon fibres 
and articles of peat) not elsewhere specified or 
included.  
 6815.10 - Non –electrical articl es of graphite or other 
carbon  
 6815.101 - Of nuclear grade graphite  
70.17  Laboratory, hygienic or pharmaceutical 
glassware, whether or not graduated or calibrated  
 
 7017.10 - Of fused quartz or other fused silica 
 7017.20 - Of other glass havi ng a linear coefficient of 
expansion not exceeding 5x10 -6 per Kelvin 
within a temperature range of 0 c to 300 c State Bureau of Standards 
and Measurements 
 7017.90 - Other  
71.08  Gold (including gold plated with platinum) 
unwrought or in semi-manuf actured forms, or in 
powder form:  
 7108.1 - Non-monetary  
 7108.11 --- Powder Ministry of Economy 
 7108.12 --- Unwrought  
 7108.13 -- Semi-manufactured  
 7108.20 - Monetary  
71.18  Coin  
 7118.10 - Coins (other than gold coin), not being legal 
tender   
 7118.90 - Other  
73.10  Tanks, casks, drums, cans, boxes and similar 
containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not 
lined or heat-insulated, but not fitted with 
mechanical or thermal equipment.   
  
State Bureau of Standards 
and Measurements 
 7310.10 - Of a capacity of 50 l or more  
 7310.2 - Of a capacity of less than 50 l :  
 7310.29 - Other  
84.01  Nuclear reactors;  fuel elements (cartridges), 
non-irradiated, for nuclear reactors, machinery and apparatus for isotopic separation:  
 8401.10 - Nuclear reactors  
 8401.20 Machinery and apparatus for isotopic separation, 
and their parts  Ministry of Economy 
 8401.30 - Fuel elements (car tridges), non-irradiated  
 8401.40 - Parts of nuclear reactor  
84.13  Pumps for liquids, whether or not fitted with a 
measuring device;  liquid elevators  
 8413.1 - Pumps fitted or designed to be fitted with a 
measuring device  
 8413.11 -- Pumps for dispersing fuel or lubricants, of the 
type used in filling-stations or in garages  WT/ACC/SPEC/HRV/7/Rev.4 
Page 86  
 
 HS code Produce description Licensing authority 
84.23  Weighing machinery (excluding balances of a 
sensitivity of 5cg or be tter) including weight 
operated counting or checking machines; weighing machine weights of all kinds  
 8423.10 - Personal weighing machines, including baby 
scales;  household scales  
 8423.20 - Scales for continuous weighing of goods on 
conveyors  
 8423.30 - Constant weight scales and scales for 
discharging a predetermine d weight of material 
into a bag or container, including hopper scale  
 8423.8 - Other State Bureau of Standards 
and Measurements 
 8423.81 -- Having a maximum weighing capacity not 
exceeding 30kg,  
 8423.82 -- Having a maximum weighing capacity 
exceeding 30kg but not exceeding 5,000kg  
 8423.89 -- Other  
 8423.891 --- Weighbridge (railway and road)  
 8423.899 --- Other  
 8423.90 - Weighing machine weights of all kinds;  parts 
of weighing machinery  
 8423.901 --- Weight  
85.25  Transmission apparatus for radio-telephony, 
radio-telegraphy, ra dio-broadcasting or 
television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus;  television cameras; still 
image video cameras and other video camera 
recorders:  
 8525.10 - Transmission apparatus  
 8525.101 - Radio transmission  
 8525.109 -- Other  
 8525.20 - Transmission apparatus incorporating reception 
apparatus Ministry of Economy 
 8525.201 - Repeater for radio  
 8525.209 -- Other  
85.26  Radio apparatus, radio navigational aid 
apparatus and radio remote control apparatus  
 8526.10 - Radar apparatus  
 8526.91 - Radio navigational apparatus  
 8526.92 - Radio remote control apparatus  
87.01  Tractors (other than tractors of heading 
No.8709)  
 8701.90 - Other  
 8701.9021 ---- Over 5 years old  
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
89.06 8906.00 Other vessels, incl uding warships and lifeboats 
other than rowing boats:  
 8906.001 --- Warships of all sorts   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 87 
 
 
 HS code Produce description Licensing authority 
90.15  Surveying (including photogrammetrical 
surveying), hydrographic, oceanographic, 
hydrological, meteorological or geophysical instruments and appliances, excluding compasses;  rangefinders  
 9015.10 - Rangefinders  
 9015.20 - Theodolites and tacheometers  
 9015.30 - Levels  
90.16  Balances of a sensivity of 5 cg or better, with or 
without wights  
90.18  Instruments and applia nces used in medical, 
surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight testing instruments  
 9018.3 - Syringes, needles, catheters, ca nnulae and the 
like  
 9018.31 - Syringes, with or without needles  
 9018.90 - Other apparatus and instruments  
 9018.901 --- Apparatus for dialysis  
90.25  Hydrometers, and simi lar floating instruments, 
thermometers, pyrometers, barometers, hygrometers and psychrom eters, recording or 
not, and any combination of these instruments  
 9025.1 - Thermometers and pyrometers, not combined 
with other instruments  
 9025.11 -- Liquid-filled or direct reading  
 9025.19 -- Other State Bureau of Standards 
and Measurements 
 90.26  Instruments and apparatus for measuring or 
checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 
Nos,9014, 9015, 9028 or 9032:  
 9026.10 - For measuring or checking the flow or level of 
liquids:  
 9026.101 --- Electronic  
 9026.102 --- Electric 
 9026.109 --- Other  
 9026.20 - For measuring or checking pressure:  
 9026.201 --- Electronic  
 9026.202 --- Electric  
 9026.203 --- Manometers (non-el ectronic, non-electric)  
 9026.209 --- Other  
 9026.80 - Other instruments or apparatus:  
 9026.801 --- Electronic  
 9026.802 --- Electric  
 9026.803 --- Flow meters of gases (non-electronic and 
non-electric)  
 9026.809 -- Other  WT/ACC/SPEC/HRV/7/Rev.4 
Page 88  
 
 HS code Produce description Licensing authority 
90.27  Instruments and apparatus for physical or 
chemical analysis (for example, polarimeters, 
refactometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like;  
instruments and apparatus for measuring or 
checking quantities of hear, sound or light (including exposure meters); microtomes:  
 9027.10 - Gas and smoke analysis apparatus:  
 9027.101 --- Electronic  
. 9027.102 --- Electrical  
 9027.109 --- Other  
 9027.80 --- Other instruments and apparatus:  
 9027.801 ---Electronic  
 9027.802 ---Electrical  
 9027.809 --- Other  
90.28  Gas, liquid or electricity supply or production 
meters, including calibrating meters therefore:  
 9028.10 - Gas meters  
 9028.20 - Liquid meters  
 9028.201 --- For fuel  
 9028.202 --- Water meters  
 9028.209 --- Other  
 9028.30 - Electricity meters  
90.29  Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like;  speed indicators and tachometers, other 
than those of heading Nos, 9014 or 9015; 
stroboscopes State Bureau of Standards 
and Measurements 
 9029.10 - Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like:  
 9029.101 --- Electronic  
 9029.102 --- Electric  
 9029.109 --- Other  
 9029.20 Speed indicators and tachometers; str oboscopes
 9029.201 --- Electronic 
 9029.202 --- Electric 
 9029.209 --- Other 
90.30  Oscilloscopes, spectrum analyzers and other 
instruments and apparatus for measuring or 
checking electrical quantities, excluding meters of heading No.9028; instruments and apparatus for measuring or detecti ng alpha, beta gamma, x-
ray, cosmic or other ionising radiations: 
 9030.10 - Instruments and apparatus for measuring or 
detecting ionising radiations;   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 89 
 
 
 HS code Produce description Licensing authority 
91.06  Time of day recordin g apparatus and apparatus 
for measuring, recording or otherwise indicating 
intervals of time, with clock or watches movement or with synchronous motor (for example, time-registers, time-recorders):  
 9106.20 - Parking meters  
93.01 9301.00 Military weapons, othe r than revolvers, pistols 
and the arms of heading No.9307 
93.02 9302.00 Revolvers and pistol s, other than those of 
heading No.9303 or 9304  
93.03  Other firearms a nd similar devices which 
operate by firing of an explosive charge (for 
example, sporting shotguns and rifles, muzzle-
loading firearms, very pi stols and other devices 
designed to project only signal flares, pistols and 
revolvers for firing blank ammunition, captive-bolt humane killers, line-throwing guns):  
 9303.10 - Muzzle-loading firearms  
 9303.20 - Other sporting, hunting or target-shooting 
shotguns, including combination shotgun-rifles:  
 9303.30 - Other sporting hunting or target-shooting rifles  
 9303.90 - Other  
 9303.901 --- Starting rifles  
 9303.909 --- Other  
93.04 9304.00 Other arms (for example, spring, air or gas guns 
and pistols, truncheons ), excluding those of 
heading No.9307 Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
 9304.001 --- Shotguns for spear-fishing  
 9304.009 --- Other  
93.05  Parts and accessories of articles of heading 
Nos,9302 to 9304  
 9305.10 -- Of revolvers or pistols  
 9305.101 --- Shotguns for spear-fishing  
 9305.109 --- Other  
 9305.2 - For rifled barrels,  hunting and sporting rifles 
from heading No.9303  
 9305.21 --- Tubes for rifle barrels  
 9305.29 -- Other  
 9305.90 - Other  
 9305.901 --- Products from heading No. 9301  
 9305.909 --- Other  
93.06  Bombs, grenades, torp edoes, mines, missiles and 
similar munitions of wa r and parts thereof;  
cartridges and other amm unition and projectiles 
and parts thereof, includi ng shot and cartridge 
wads:  
 9306.10 - Cartridges for riveti ng or similar tools or for 
captive-bolt humane killers and parts thereof  
 9306.2 - Cartridges for rifled  barrels and their parts; 
cartridges for air guns  
 9306.21 --- Patrons  
 9306.29 -- Other  WT/ACC/SPEC/HRV/7/Rev.4 
Page 90  
 
 HS code Produce description Licensing authority 
 9306.30 - Other cartridges and parts thereof  
 9306.90 - Other  
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths thereof  
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 91 
 
 
 Table 6  
Products Subject to Export Licences2 
HS code Product description Licensing authority 
28.44  Radioactive chemical  element and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and other compounds;  
mixtures and residues containing those products:  
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including ce rmets), ceramic products 
and mixture containing natural uranium or 
natural uranium compounds;  
 2844.20 - Uranium enriched in U 235 and its compound;  
plutonium and its compounds;  alloys, 
dispersions (including ce rmets), ceramic products 
and mixtures containing uranium enriched U 235, plutonium or compounds of these products;  
 2844.30 - Uranium depleted in  U 235 and its compounds, 
thorium and its compounds;  alloys, dispersions (including cermets) ceramic products and mixtures containing uranium depleted in U 235, 
thorium or compounds of these products  
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactor  
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such 
isotopes, whether or not  chemically defined Ministry of Economy 
 2845.10 - Heavy water (deuterium oxide)  
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated  
 2904.201 --- Nitrobenzene  
 2904.202 --- Dinitrobenzene  
 2904.203 --- Di and trinitrotoluene  
2920  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their halogenated, sulphonated, nitrated or nitrosalted 
derivatives:  
 2920.90 Other:  
 2920.9003 Nitroglycerin  
 2920.9004 Other esters of ,,,, acids  
    
49.07 4907.00 Unused postage, revenue or similar stamps of 
current or new issue in the country to which they are destined;  stamp-impr essed paper;  banknotes;  
cheque forms;  stock;  share or bond certificates 
and similar documents of title:  
. 
 4907.002 --- Securities (actions , cheque books, etc,)  
 4907.003 --- Banknotes which are not legal means of 
payment in any of the countries  
                                                      
2 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer WT/ACC/SPEC/HRV/7/Rev.4 
Page 92  
 
 HS code Product description Licensing authority 
 4907.009 --- Other  
71.08  Gold including gold plated with platinum 
unwrought semi-manufactu red forms, or in 
powder form:  
 7108.1 - Non-monetary  
 7108.11 --- Powder  
 7108.12 --- Other unwrought forms  
 7108.13 -- Other semi-manufactured forms:  
 7108.20 - Monetary  
71.09 7109.00 Base metals or silver , clad with gold, not further 
worked than semi-manufactured  
71.10  Platinum, unwrought or in semi-manufactured 
forms, or in powder form  
 7110.1 Platinum  
 7120.11 Unwrought or in powder form  
 7110.19 -- Other  
 7110.2 Palladium Ministry of Economy 
 7110.21 -- Unwrought or in powder form  
 7110.29 -- Other  
 7110.3 Rhodium  
 7110.31 - Unwrought or in powder form  
 7110.39 -- Other  
 7110.4 Iridium, osmium and ruthenium  
 7110.41 -- Unwrought or in powder form  
 7110.49 -- Other  
71.11 7111.00 Base metals, silver or  gold, clad with platinum, 
not further worked than semi-manufactured  
71.18  Coin  
 7118.10 - Coin (other than gold coin), not being legal 
tender   
 7118.90 - Other  
84.01  Nuclear reactors;  fuel  elements (cartridges), non-
irradiated, for nuclear reactors, machinery and apparatus for isotopic separation:  
 8401.10 - Nuclear reactors  
 8401.20 Machinery and apparatu s for isotopic separation, 
and parts thereof  
 8401.30- Fuel elements (car tridges), non-irradiated  
 8401.40 Parts of nuclear reactor  
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
89.06 8906.00 Other vessels, including warships and lifeboats 
other than rowing boats:  
 8906.001 --- Warships of all sorts  
93.01 9301.00 Military weapons, other than revolvers, pistols 
and the arms of heading No.9307  
93.02 9302.00 Revolvers and pistols, other than those of 
heading No.9303 or 9304   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 93 
 
 
 HS code Product description Licensing authority 
93.03  Other firearms and si milar devices which operate 
by firing of an explosive charge (for example, 
sporting shotguns and ri fles, muzzle-loading 
firearms, very pistols and other devices designed to project only signal flar es, pistols and revolvers 
for firing blank ammunition, captive-bolt humane 
killers, line-throwing guns):  
 9303.10 - Muzzle-loading firearms  
93.05  Parts and accessories of articles of heading 
Nos,9301 to 9394  
 9305.10 -- Of revolvers or pistols  
 9305.101 --- Shotguns for spear-fishing  
 9305-109 --- Other  
 9305.90 - Other  
 9305.901 --- Products falling within heading No. 9301  
 9305.909 --- Other  
93.06  Bombs, grenades, torped oes, mines, missiles and 
similar munitions of wa s and parts thereof;  
cartridges and other ammunition and projectiles and parts thereof, includ ing shot and cartridge 
wads: Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
 9306.10 - Cartridges for riveting or similar tools or for 
captive-bolt humane killers and parts thereof  
 9306.2 Cartridges for shotguns an d parts thereof;  air gun 
pellets  
 9306.21 --- Cartridges  
 9306.29 -- Other  
 9306.30 - Other cartridges and parts thereof  
 9306.90 - Other  
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths thereof  
97.01  Paintings, drawings and pastels, executed entirely 
by hand, other than drawings on heading No. 4906 and other than hand-painted or hand-decorated manufactured articles;  collages and 
similar decorative plaques  
 9701.10 - Paintings (for example, oils, aquarelles and 
pastels) and drawings  
 9701.90 - Other Ministry of Culture 
 
97.02 9702.00 Other engravings, prints and lithographs  
97.03 9703.00 Original sculptures a nd statuary, in any material  
97.05 9705.00 Collections and collec tor's pieces of zoological 
botanical, mineralogical, anatomical, historical, 
archaeological, palaeotological, ethnographic or numismatic interest  
97.06 9706.00 Antiques of an age exceeding 100 years  
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 94  
 
 Table 7
 
Products Subject to Quality Control and  
Regulations for the Control of These Products (applicable from October 1999)  
 
 Product Description 
1. Meat and Meat Products  
The regulation on the quality of meat of beef ca ttle and venison (Narodne Novine, No. 53/91); 
The regulation on the quality of meat products (Official Gazette, No. 53/91); 
The regulation on the quality of pork and its categorization (Official Gazette No. 53/91). 
2. Fish, Cray-Fish, Mussels, Sea-Urchins, Frogs, Turtles, Snails, and Related Products  
The regulation on the quality of fish, cray-fish, mussels, sea-urchins, frogs, turtles, snail, and related 
products (Official Gazette, No. 53/91). 
3. Milk, Dairy Products, and Pure Cultures  
The regulation on the quality of milk, dairy products, and pure cultures (Official Gazette, No. 53/91). 
4. Ice-Cream, Ice-Cream Products, and Frozen Desserts  
The regulation on the quality of milk, dairy products, and pure cultures (Official Gazette, No. 53/91. 
5.  Fruit, Vegetables, Mushrooms and Related Products  
The regulation of the quality of fruit, vegetables, mu shrooms and related products (Official Gazette, No. 
53/91). 
6. Coffee, Coffee Products, and Products Made of Coffee Substitutes  
The regulation of the quality of coffee, coffee products, and products made of coffee substitutes (Official 
Gazette, No. 53/91). 
7. Teas  
The regulation of the quality of coffee, coffee products , and products made of coffee substitutes, tea, 
condiments, leaven, baking powder, pudding powder a nd low-caloric products (Official Gazette, No. 
53/91). 
8. Common Salt and Brining Salt  
The regulation of the quality of salt used as food (Official Gazette, No. 53/91). 
9. Soups, Soup Concentrates, Sauce Concentrates and Food Supplements  
The regulation of the quality of soups, soup con centrates, sauce concentrates and food supplements 
(Official Gazette, No. 53/91). 
10. Gain, Baking Products, Pasta, and Deep Frozen Pasta  
The regulation of the quality of grain, baking products, pasta, and deep frozen pa sta (Official Gazette, No. 
53/91). 
11. Biscuits and Biscuit-Related Products  
The regulation of the quality of biscuits and biscuit-related products (Official Gazette, No. 53/91). 
12. Food Oils and Vegetable Fats, Margar ine, Mayonnaise and Other Related Products  
The regulation of the quality of oils and vegetable fats, margarine, mayonnaise and other related products 
(Official Gazette, No. 53/91); 
The regulation of the quality of olive oil and blended olive oil (Official Gazette, No. 53/91). 
13. Sugar and Related Products  
The regulation of the quality of oils and vegetable fats, margarine, mayonnaise, sugar, honey and sugar-
related products (Official Gazette, No. 53/91). 
14. Honey and Other Apiary Products  
The regulation of the quality of honey and other apia ry products and regulations on methods of quality 
control of honey and other apiary produc ts (Official Gazette, No. 53/91). 
15. Cacao Products, Creams, Candies and Related Products  
The regulation of the quality of cacao products, chocolat e-related products, candies (Official Gazette, No. 
53/91). 
16.  Alcoholic Beverages  
The regulation of the quality  of alcoholic beverages (O fficial Gazette, No. 53/91). 
17. Non-Alcoholic Beverages  
The regulation of the quality of non-alcoholic bevera ges and soda-water (Official Gazette, No. 23/97). 
18. Fodder and Pet-Food  
The regulation of the quality of fodder (Official Gazette, No 53/91).  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 95 
 
 
  Product Description 
19. Fuel Oils  
The rules regulating the quality of fuel oils (Official Gazette No. 53/91). 
20. Jet Engine Fuels  
The rules regulating the quality of jet e ngine fuels (Official Gazette No. 79/95); 
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 96  
 
  
Table 8
 
Products subject to sanitary measures  
Tariff 
No. Product description Measure 
01 Live animals; animal products Veterinary regulations 
Health regulations 
02 Meat and edible meat o ffal Veterinary regulations 
Health regulations 
03 Fish, crustaceans, molluscs and other aquatic 
invertebrates Veterinary regulations 
Health regulations 
04 Dairy products, honey, eggs  Veterinary regulations 
Health regulations 
05 Products of animal origin  Veterinary regulations 
Health regulations 
15 Animal fats, prepared edible fats, animal waxes Veterinary regulations 
Health regulations 
16 Preparations of meat, fish, crustaceans, molluscs or 
other aquatic invertebrates Veterinary regulations 
Health regulations 
21 Miscellaneous edible prepara tions Veterinary regulations 
Health regulations 
23 Chemical Residues  Veterinary regulations 
Health regulations 
 Animal feed Veterinary regulations 
Livestock  regulations 
  WT/ACC/SPEC/HRV/7/Rev.4 
 Page 97 
 
 
 Table 9  
Products subject to phytosanitary measures  
Tariff Number Plants and Plant Product Description 
06.01 - 06.04 Living trees and other plants, bulbs, roots and similar, cut flowers and 
ornamental leaves 
07.01 - 07.14 Edible vegetables and certain r oot and tubers fresh or dried (excluded  
frozen and conserved) 
08.01 - 08.14 Edible fruits and nuts, peel of citrus fruit or melons fresh or dried 
(excluded  frozen, conserved, boiled) 
09.01 - 09.10 Coffee unroasted, tea, mate  and spices -  unpacked and unprocessed 
10.01 - 10.08 Cereals 
11.01 - 11.06 Products of milling industry – excluded malt, starch, inulin and gluten 
12.01 - 12.14 Oil seeds and fruits, miscellane ous grains, seeds and fruits, industrial and 
medicinal plants, straw and fodder  
14.01 - 14.04 Vegetable planting materials, vegetable products not elsewhere specified 
or included 
18.01 - 18.02 Cocoa beans, whole or broken, unroasted 
23.00 - 23.09 Residues and waste from the food industries, prepared animal fodder 
24.01 Unmanufactured tobacco, tobacco refuse 
27.03 Peat (including peat litter) 
31.01 Vegetable fertilizers, fertilizer produced by the mixing of animal and 
vegetable products 
38.08 Insecticides, rodenticides, fungicid es, herbicides, anti-sprouting products 
and plant-growth regulators, disinfect ants and similar products, put up in 
forms or packing for retail sale 
44.01- 44.18 Wood and wood products – excluded wood chemically or heat treated 
45.01 Natural cork, raw or simply prepared, waste cork, crushed, granulated or 
ground cork 
50.01 Silk - worm cocoons suitable for reeling 
50.03 Silk waste (including cocoons unsuitable for reeling, yarn waste and 
garnetted stock) 
52.01 - 52.02 Cotton, not carded or combed, cotton waste 
53.01 Flax raw or processed but not spun, tow and waste  (including yarn 
waste and garnetted stock) 
53.02 True hemp, raw or processed but not spun, taw and waste of true hemp 
53.03 Jute and other bast, raw or pr ocessed but not spun, tow and waste of 
these fibres 
53.04 Sisal and other textile fibres of the genus Agave  raw or processed but 
not spun 
.  
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 98 
Table 10:  Status of Legislation on Inte llectual Property Rights in Croatia (July 1999)  
 
Parts Sections Articles Full compliance already existing 
pursuant to the laws being 
previously in force Full compliance achieved pursuant to: 
    laws adopted on 
30 June 1999 the pertaining 
Regulations 
1 2 3 4 5 6 
Agreement on Trade-Related Aspects of Intellectual 
Property Rights      
Part I      
General Provisions and Basic 
Principles  Articles 1-8  MACL, PL,TL,IDL, LGI, 
LPLDIC  
      
Part II Section 1:     
Standards Copyright And Related Articles 9-14  CL & MACL  
Concerning the Rights     
Availability,      
Scope and Use Section 2:     
of Trademarks Articles 15-21  TL RuTL 
Intellectual 
Property Rights      
 Section 3: 
Geographical Indications  
Articles 22-24   
LGI  
RuLGI 
      
 Section 4:      
 Industrial Designs Articles 25-26  IDL RuIDL 
      
 Section 5:     
 Patents Articles 27-34 LPPV PL RuPL 
      
 Section 6:      
 Layout-Designs 
(Topographies) Articles 35-38  LPLDIC RuLPLDIC  
  WT/ACC/SPEC/HRV/7/Rev.4
 Page 99 
 Section 7:      
 Protection of Undisclosed 
Information Article 39 LT, LPDS, LPP, LMMP   
      
 Section 8:     
 Control of Anti-Competitive 
Practices in Contractual 
Licences  
Article 40  
LOR   
      
Part III Section 1:     
Enforcement General Obligations Article 41 LCP   
of      
Intellectual Section 2:     
Property 
Rights Civil and Administrative 
Procedures and Remedies Articles 42-49 LCP, LO, LE, PL, TL, IDL, LGI, 
LPLDIC   
      
 Section 3:     
 Provisional Measures Article 50 LE, PL, TL, IDL, LGI, LPLDIC   
      
 Section 4:      
 Special Requirements 
Related to Border Measures Articles 51-60  CL RuCL 
      
 Section 5:     
 Criminal Procedures Article 61 PL, LPP   
      
Part IV      
Acquisition and Maintenance 
of Intellectual Property Rights Article 62 LGAP, LAD PL, LPPV, TL, IDL,LIG, 
LPLDIC  
  
 WT/ACC/SPEC/HRV/7/Rev.4 
Page 100 
LEGEND (KEY) 
 
CL Copyright Law   NN 9/99 
LPPV    Law on the Protection of Plant Varieties  NN 131/97  
LT Law on Trade NN 11/96, 75/99  
LPDS  Law on the Protection of Data Secrecy NN 108/96 
LPP Law on the Protection of Plants NN 10/94  
LMMP Law on Medicines and Medical Products NN 124/97  
LOR  Law on Obligatory Relations  NN 53/91; 73/91; 
  111/93; 3/94;107/95; 7/96 
LCP  Law on Civil Procedure NN 53/91; 91/92 
LE Law on Enforcement   NN 57/96  
LPP Law on Penal Procedure  NN 110/97  
PL Penal Law NN 110/97  
LAP  Law on General Administrative Procedure NN 53/91 
LAD Law on Administrative Disputes  NN 53/91; 9/92; 77/92  
 MACL  Modified and Amended Copyright Law 
TL Trademark Law 
LGI Law on Geographical Indications 
IDL Industrial Design Law 
PL Patent Law 
LPLDIC   Law on the Protection of Layout-Designs of Integrated Circuits 
CL Customs Law 
 
RuTL  Regulations under the Trademark Law 
RuGI  Regulations under the Law on Geographical Indications 
RuIDL  Regulations under the Industrial Design Law 
RuPL  Regulations under the Patent Law 
RuLPLDIC   Regulations under the Law on the Protection of Layout. 
RuCL  Regulations under the Customs Law  
NN Official Gazette of the Republic of Croatia 
 
   WT/ACC/SPEC/HRV/7/Rev.4 
 Page 101 
 
 
 ANNEX  
 
 
SCHEDULE - CROATIA 
 
 
 
Part I - Goods  
 
[document WT/ACC/SPEC/HRV/10 and Corr.1] 
 
  
Part II - Services
 
 
[document WT/ACC/SPEC/HRV/11] 
   
__________