RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/HRV/6/Rev.1 
11 February 1999 
 (99-0526) 
Working Party on the  
Accession of Croatia  
 
 
ACCESSION OF CROATIA 
 
Elements of a Draft Report  
 
Revision  
 
INTRODUCTION 
 
1. The Government of Croatia applied for acc ession to the General Agreement on Tariffs and 
Trade (GATT 1947) in September 1993.  At its meeting 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 Articl e XXXIII of the General Agreement.  Following the 
conclusion of the Uruguay Round, Croatia requeste d accession to the World Trade Organization (WTO) 
under Article XII of the Marrakesh  Agreement establishing the Worl d Trade Organization.  Having 
regard to the decision adopted by the WTO General Council on 31 January 1995, the existing 
GATT 1947 Accession Working Party wa s transformed into a WTO Accession Working Party.  The 
terms of reference and the membership of th e Working Party are reproduced in document 
WT/ACC/HRV/8/Rev.3. 
 2. The Working Party met on 1 April 1996; 23-24 January 1997;  21 January and 16 October 1998;  ...........................  und er 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 the replies th ereto (WT/ACC/HRV/ 3 and Corr.1, WT /ACC/HRV/4 and 
Addenda 1 and 2, WT/ACC/HRV/7 and Add.1, WT/ACC/HRV/11 and Add. 1, WT/ACC/HRV/27 and 
Addendum 1, WT/ACC/HRV/30, WT/A CC/HRV/39 and Addenda 1 and 2, …… ), and other 
information provided by the Croatian 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/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/SPEC/HRV/6/Rev.1 
Page 2  
 
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/HR V/43, WT/ACC/HRV/45, …… ), including the legislative texts and 
other documentation listed in Annex I. 
 
INTRODUCTORY STATEMENTS  4. In his introductory statement, the representative of Croatia stressed that accession to the World 
Trade Organization was among the main priorities of his Government.  Croatia was pursuing a program  
of thorough economic adjustment a nd reform, transforming its economy into one based fully on market 
principles.  The efforts of the Government were underpinned by credits from the IMF, the World Bank 
and the European Bank for Reconstruction and Deve lopment.  Croatia was strengthening institutional 
relations with the European Union and free-trade ti es with countries in cent ral and eastern Europe.  
 
5. The near-term goals of his G overnment were to ac celerate economic grow th, privatization, 
public enterprise restructuring a nd the rehabilitation of banks;  co mprehensive 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 fram ework.  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 accordance 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 International Convention on  the Harmonized Commodity Description and the 
Recommendation of the World Customs Organization Regarding Ozone Layer De pleters and the Draft 
Recommendation on Drugs.  Some financial incentives  and subsidies were provided to agriculture in 
accordance with the Law on Financial Incentives an d Subsidies in Agriculture and Fisheries (and its 
amendments).  The Government intended to maintain  guaranteed 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 Working Party that Croatia would take  all necessary steps to continue to improve its 
legal and institutional framework, so that the acces sion process could be accomplished as soon as 
reasonably possible.    
6. In their opening remarks many members of  the Working Party welcomed the request from 
Croatia to accede to the WTO.  Membership in the WT O would assist Croatia in its efforts to repair the 
damage of war and underpin its continuous and syst ematic transformation towards a market economy.  
Several members declared their interest in working co nstructively together with Croatia in establishing 
its terms of accession and ensuring that the mandate of the Wo rking Party be concluded in a timely 
manner.  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 3 
 
 
 
7. The Working Party then proceeded to review th e economic policies and fo reign trade regime of 
Croatia and the possible terms of a Draft Protocol of Accession to th e WTO.  The views expressed by 
members of the Working Party are summarized below in paragraphs 8 to ....  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 di d not differentiate betw een foreign and domestic ownership.  Noting 
certain problems regarding the collection of taxes, some members asked Croatia to elaborate on the 
informal sector of the economy and meas ures 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 elemen ts of the tax system were the Law on Profit 
Tax, the Law on Income Tax and the Law on Value Added Tax, replacing th e Law on the turnover tax 
of products and services on 1 January 1998.  Reve nues from the profit tax and the income tax were 
divided between the State, municipa lities, townships and counties in  fixed percentages in accordance 
with Article 45 of the Law on Financing Local Self -Government and Local Government.  In addition, 
local self-government units and governme nt 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 s uggested that the informal sector might add some 16 to 21 per cent 
to the official gross dome stic product.  Sectors with informal economic activity of some significance 
were trading, catering, construction, domestic appl iance and car repair, commercial and residential 
property rental, business services and household pe rsonal services, while the processing industry and 
agriculture appeared to be less affected.  Steps taken to contain the informal sector included the 
development of an effective tax system (in particular following th e introduction of value-added tax), 
lower taxes and improved labour re lations within a stronger regulator y framework and more effective 
labour inspection.  The financial police was also  stepping up operations to  enforce the tax laws. 
 WT/ACC/SPEC/HRV/6/Rev.1 
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Foreign Exchange and Payments
 
 
11. The representative of Croatia noted that the le gal 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 currency - 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 fore ign 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 whethe r Croatia differentiated between exporters and 
other firms regarding the availability of foreign exch ange or the rate of exchange and requested further 
information on Croatia's relationship with the IMF, in particular whether an y reservations had been 
made under Article XIV (Transitional Arrangements).  The representativ e of Croatia said that Croatia 
did not differentiate betwee n exporters and other firms in currency exchange rates or in the availability 
of foreign exchange.  Croatia had become member of the IMF in December 1992 following the model of partial succession.  As a memb er of the IMF Croatia maintained no reservation under Article XIV.  
Croatia had accepted the obligations 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 main tain any restriction on payments 
and transfers for current international transactions.  13. A member of the Working Party inquired a bout the Law on Credit Relations with Foreign 
Countries.  The representative of Croatia said th at the Law regulated bo rrowing from international 
financial institutions and lending or borrowing arrangements with fo reign 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 Croa tia.  Resident legal or natural persons could only 
extend credits to non-residents from profits or cred its 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 Cr oatia said that negotiations were c ontinuing.  He added that Croatia 
had accepted calculations of th e International Monetary Fund and had assumed 28.49 per cent of the 
non-allocated debt of former Yugoslavia. 
  WT/ACC/SPEC/HRV/6/Rev.1 
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Investment Regime  
 
14. The representative of Croatia said that fore ign investment was regulated under the Company 
Law, entering into force on 1 January 1995.  The Law defined a foreign investor as any foreign national 
or legal person with a registered seat outside th e Republic of Croatia.  The new legal regime had 
nullified a number of restrictions on foreign investment maintained unde r previous legislation (the Law 
on Foreign Investments).  No particular sector was cl osed to foreign investment.  However, investments 
in the military industry and telecomm unications were subject to a spec ial procedure.  According to the 
Law on Telecommunications, foreign i nvestment in radio and televisi on concessions was limited to 
25 per cent of the capital of the co ncessionaire.  Inward portfolio inve stment was not re stricted, except 
for central bank short-term securities in the primary market 
 
15. The representative of Croatia noted that fore ign 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.  Parliament 
had adopted amendments to the Company Law whic h abolished the condition of reciprocity, thus 
providing full national treatment in respect of esta blishment of commercial presence.  These changes 
had entered into force on 26 June 1998.  
16. The representative of Croatia said that Croati an residents were require d 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 reciproc ity.  However, foreign exchange restrictions in 
practice prevented Croati an residents from purchasing real estate abroad. 
 
State Ownership and Privatization
 
 17. Some members of the Working Party asked Croa tia to provide information on its privatization 
programme and outline future plans in this area, not ing that the present Law on Privatization did not 
concern public enterprises,  banks, insurance companies, cooperativ es, 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) ow nership changes for firms and enterp rises termed "socially owned", the 
form of ownership under the former So cialist Federal Repub lic of Yugoslavia. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 6  
 
18. The representative of Croatia said that priv atization involved the transformation of former 
"socially-owned" enterprises into joint-stock or limited liability companies with defined ownership 
structures.  Following independence, ten large infr astructure and utilities companies had come under 
direct State ownership as "public enterprises" while the remaining socially-owned enterprises were to be privatized in a two-stage process.  These enterpri ses submitted requests for commercialization to the 
Croatian Privatization Fund and could request "a utonomous transformation", i.e. propose their own 
privatization plans, until 30 June 1992.  First-st age privatization was organized by the Croatian 
Privatization Fund, seeking wide participation by  employees and the popula tion at large by offering 
preferential rights for shar e subscription at substantia l discount, and payment by instalments.  Shares in 
enterprises not privatized during the first stage were subsequently transferred to the Croatian Pension Funds (one third) and the Croatian Pr ivatization 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 enterprises had been earmarked to be sold against frozen foreign exchange deposits (FFED).  Asked about  the conditions for foreigners to participate in 
privatization tenders, the represen tative of Croatia said that the Company Law provided for national 
treatment of foreign investment, includ ing participation in privatization. 
 19. Croatian citizens had particip ated actively in the privatization;  some 600,000 small investors 
had acquired shares in a total of more than 2,500 en terprises.  The Governme nt also encouraged the 
establishment of Privatization I nvestment Funds (PIF's).  These were specialized funds collecting 
vouchers and coupons in exchange for shares in compan ies put up for mass privatization.  Contrary to 
other investment funds, the PIF's were not allowed to exchange shares against frozen foreign exchange deposits. 
 
20. The second phase of the privatization proc ess had been implemented through mass voucher 
privatization.  This privatization had, in effect, been a distribution of shares not sold in the first phase of 
privatization.  Vouchers had been distributed to i ndividuals affected by the hostilities such as injured 
servicemen, war widows and their fa milies, 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 State pension 
funds had not been included in the process.  In to tal, more than 500 companies had their shares sold 
through voucher privatization.  The first round of vou chers had been distributed in June 1998, and the 
process had been concluded by September 1998.  The representative of Croatia provided information on 
the privatization process in document WT/ACC/H RV/40.  [Further information on progress in 
privatization in Croatia is provided in Table 1 (pending)]   WT/ACC/SPEC/HRV/6/Rev.1 
 Page 7 
 
 
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" had been transferre d 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 agricultural enterprises had been divided into 
smaller independent uni ts.  All agricultural trading and proces sing enterprises had been privatized.  
Croatia intended to privatize the entire food procurement and processing system.  22. Sectors not covered under the Law on Privatization were privat ized under other provisions.  
Shares in banks were sold by their founding institutio ns or, in case of financ ially troubled banks, with 
the assistance of the Agency for Bank Rehabili tation.  The Law on Sea Ports provided for the 
privatization of port services and the award of conces sions;  the actual port wa s regulated by the port 
administration.  Medical services and other activities w ithin hospitals and clinics, but not the property or 
infrastructure, could be privatized in accordance with  the Statute of Conditions for the Lease of Medical 
Facilities for Primary Medical Care and Hospitals.  P ublic educational facilities would be privatized in 
the near future.  The Law on Privatization included a provision on the privatization of public enterprises 
(Article 13, Paragra ph 13).  The Ministry of Priv atization and Management of  State Assets would draft 
proposals for decision by the Government.  Privatiza tion of the most significant companies required 
approval by Parliament, and privatization would be pursued individually for each company.  Decisions 
had been taken to begin, in the foreseeable future , privatization of Croatian Railways (HZ), Hrvatske 
Sume (Croatian Forests), the Official Gazette, Croatian Petroleum Company (INA), Croatian Radio and Television Broadcasting (HRT), Croatian Electricity Company (HEP), Croatian Post And Telecommunications (HPT), the Co astal Shipping Company and Plovput (a lighthouse company).  The 
process of privatizing public  utilities and larg e State-owned enterp rises was expected to begin in the 
course of 1999.  23. The representative of Croatia said that Cr oatia had also adopted a Law on Compensation for 
Expropriated Assets.  Th e law foresaw the restitution of assets e ither in kind, through shares reserved in 
the Croatian Privatization Fund or by paym ent from the Croatian Compensation Fund.  
 Pricing Policies
 
 
24. The representative of Croatia said that price cont rols had been liberalized in recent years.  In 
general, companies determined pr ices freely without any government interference.  Existing controls 
were applied in accordance with the Law on Excepti onal Measures of Price C ontrols.  Direct price WT/ACC/SPEC/HRV/6/Rev.1 
Page 8  
 
controls could be prescribed to prevent negative effe cts of changes in prices for basic goods and services 
which had a direct impact on the cost of living, or to prevent monopoly pricing (Article 4).  This 
provision underlined the excepti onal 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 m easures which would eventually allow th e elimination of the price controls. 
 
25. The Government, upon a proposal by the Minist ry of Economy, could implement direct price 
controls either by fixing maximum prices;  ordering pr ice reductions to a certain level;  or by requiring 
economic agents to report price cha nges in advance.  In case of pr ior 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 reconsider th e proposed prices.  The Law provided for penalties 
amounting to HRK 5,000-20,000 (US$800-3,000) for co mpanies 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 administrative action coul d institute proceedings and request compensation 
for the damage incurred.  All regulations regarding pr ice control measures were published in the Official 
Gazette of the Republic of Croatia "Narodne Novine". 
 26. 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 milk 
for daily consumption;  fertilizers;  wheat flour;  bread type 850;  petroleum products;  natural gas;  
electric energy;  radio and television subscriptions;  transportation of passengers  and freight by local rail 
or maritime line traffic;  standa rd letters and postcards;  telephone impulse and telephone subscription;  
road, bridge and tunnel tolls;  offi cial forms;  roundwood logs; cubic w ood;  and the services of loading 
and transportation of wood sortings.  The producers of goods and services subject to current controls 
were mainly public utilities or Stat e-owned legal entities.  Goods and se rvices 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  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 9 
 
 
Classification (Harmonized 
System or Common 
Product Classification) Product or Sector  
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 tw igs, 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 and 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 control (Article 11 of the Law on Exceptional 
Measures of Price Controls) for : 
HS 2716.00  Heating energy 
CPC 82101; 82102 Housing rents and residential services 
CPC 71211  Urban and suburban 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 and cr ematories and under takers services 
CPC 87409 Provision of chimney services 
 WT/ACC/SPEC/HRV/6/Rev.1 
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27. Local administrative bodies we re responsible for direct and in direct price controls of public 
utilities, i.e. central heating, wate r supply, sewage and other sanitary services, distribution of gas, public 
transport, etc.  However, the Gove rnment could prescribe such measur es to prevent market disturbance 
or monopoly behaviour if local admini strative bodies did not take action. 
 28. Asked whether the Law on Exceptional Mesu res of Price Controls could authorize the 
application of price controls a nd reporting requirements on prices  of imports and exports, the 
representative of Croatia said that the Law itself  did not include any spec ific article or provision 
regarding price controls on impo rts or exports, but the Government  had adopted a by-law regulation 
which excluded imports and exports from price control measures.  Thus , the current requirement of prior 
reporting of price changes for certain goods and se rvices was not applied to  imports or exports. 
 
29. The representative of Croatia stated that pric es for most goods and services were determined 
without government guidance or control.  
30. The representative of Croatia stated that in th e application of price c ontrols or State guidance 
now or in the future, Croatia would apply such measur es in a WTO-consistent fa shion, and take account 
of the interests of exporting WTO members as provided for in Articl e III:9 of the GATT 1994.  Croatia 
would publish the list of goods and services subject to State controls  any that are introduced or re-
introduced in the future in its Official Journal, in cluding any changes in the list provided of current 
requirements in place.  [The Working Party took note of this commitment.]  
 Competition Policy
 
 
31. The representative of Croatia said that the Law on the Protection of Market Competition had 
been adopted by Parliament on 27 June 1995.  Certai n practices, including price fixing, market sharing 
and tying-in arrangements, were ge nerally or specifically prohibited, but the rule of reason applied and 
group exemptions could be granted, for example for contracts related to spec ialization, exclusive or 
selective distribution, exclusive purchasing, franchising and resear ch and development.  The Law 
applied to all firms operating in Cr oatia 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 Purchasing.  Howeve r, 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 Competiti on.  In response to specific que stions 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 provided internationa l agreements signed by Cr oatia did not stipulate  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 11 
 
 
otherwise.  Croatia had established a Competition Protection Agen cy to enforce legislation.  Cases 
would be decided by its Council.  
 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  32. The representative of Croatia said that the ce ntral Government was res ponsible for a number of 
functions including international re lations, economic policy and customs matters.  Each Ministry was 
responsible for proposing new or am ended legislation within its ar ea of competence.  Following 
approval by the Government draft legislation would be forwarded to Parliame nt for adoption.  Most 
international agreements were subjec t to ratification by Parliament.  Cr oatia's Protocol of Accession to 
the WTO would be subject to such ratification. 
 
33. The representative of Croatia said that Croatia had established a system of local self-government and administration based on the Eur opean Charter on Local Self-government.  Within 
this system, Croatia was divided into 21 counties (i ncluding the City of Zagreb), subdivided into 421 
municipalities, 50 townships and two special self-governing di stricts.  The activities  of local government 
units were financed in part from local dues and fe es and income from own assets, in part from fixed 
percentage shares of revenue from the income tax, th e profit tax, a tax on real estate transactions and a 
tax on gambling.  Property taxes collected by the c ounties included taxes on motor vehicles and vessels, 
raised in fixed kuna amounts ranging from the equiva lent of DM 30 to 200 per year for cars, DM 20 to 
100 for motorcycles, and DM 40 to 550 for vessels.  34. Some Members noted that loca l authorities could 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 consis tent with WTO obligations.  The repres entative of Croatia replied that only 
the central authorities (the Government and Parliame nt) could propose and adopt legislation of any kind, 
including in the area of taxation.   According to the Law on Fundi ng Units of Local Government and 
Administration, local units had the right to collect ta xes, but not to prescribe or levy them.  Thus, as 
local authorities could only collect taxes established by law, their prac tices would be in compliance with 
WTO obligations.  Legal or natura l 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. 
 WT/ACC/SPEC/HRV/6/Rev.1 
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35. Decisions on concessional rights were subject to  shared responsibility be tween central and local 
governments.  Concessions were re gulated by the Law on Concessions, unless special st atutes provided 
otherwise, and could be granted for up to 99 years to  a domestic or foreign person.  Decisions on the 
granting of concessions were taken by the House of Representatives (Parliament) on the proposal of the 
Government, and upon the opinion of the local admi nistrative body where the concession would be 
exploited.  Parliament could dele gate the authority to grant concessions to the Government.  The 
decision to grant a concession was required to be based on public bidding or so liciting of tenders to 
select the successful candidate.  Following the deci sion to grant a concession by Parliament or the 
Government, the executive branch of the of the administrative body conclude d a contract with the 
concessionaire, regulating the condi tions under which a concession coul d be exploited or terminated.  
Special laws could provide different conditions, as an ex emption 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.  POLICIES AFFECTING TRADE IN GOODS 
 
Trading Rights
 
 36. The representative of Croatia said that Cr oatia had applied temporarily the Law on Foreign 
Trade Operations of the former  Yugoslavia since October 1991.  The Law laid down a number of 
conditions regarding registration of companies, repo rting requirements, restrictions on the right to 
engage in foreign trade, and rules for special trade operations.  The Law on Foreign Trade Operations had been superseded by the Company Law, ente ring into force on 1 January 1995, and the Law on 
Trade, in effect since February 1996.  The Compan y 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 trade 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 register se parately with the Commerc ial Court, and companies 
were now free to re-export, import or invest abro ad without approval of the Ministry of Economy. 
 37. The representative of Croatia added that alt hough the former Law on Fo reign Trade Operations 
had limited or conditioned the freedo m of trade, foreign trade had never been subject to State monopoly.  
The State did not restrict the right of persons or en tities to import or export under present legislation.  
The registration criteria to be met by domestic or foreign enterprises and individuals wishing to engage  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 13 
 
 
in foreign trade were set out in Article 4 of the Law on Trade, providing for free trade and equal market 
conditions. 
 
38. Croatia maintained no registry of authorized im porters of goods subject to licensing.  In general, 
all companies incorporated for trad e activities or activities using licens ed goods were eligible to apply 
for import licences.  First-time applicants were requi red to submit additional documentation such as the 
registration with the Commercial Court.  Arms traders needed a prior licence to sell arms from the 
Ministry of Internal Affairs.  
39. 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. 
 
[Market Access Negotiations
 
 
40. In a communication dated 24 July 1995 (document WT/ACC/HRV/3/Add.1), Croatia 
announced its readiness to commence  bilateral negotiations for its concessions under the GATT 1994.  
Croatia wished to commit itself to  tariff ceilings on a selective product-by-product basis according to 
Article XXVIIIbis, paragraph 2(a) of the GATT 1994.  Moreover, Croatia decl ared itself a "developing 
country" and as such entrusted WT O Members to take this into consideration when making their 
requests for concessions.  Following initial negotiatio ns with members of the Working Party and having 
adopted new legislation relating to its trade regime, Croati a decided not to declare itself a "developing 
country", but only to seek special and differential tr eatment in a limited number of areas.  The reasons 
for requesting developing country treatment were furt her explained in a separate submission (document 
WT/ACC/HRV/4, Appendix 1).  An initial offer on market access for trade in industrial goods was 
submitted in April 1997, and an in itial offer on trade in agricultur e in May 1997.  [Members were 
notified in documents WT /ACC/SPEC/HRV/3 dated 23 April 1997 and document 
WT/ACC/SPEC/HRV/2 of 14 May 1997.]  Revised offers on market  access for trade in industrial 
products were submitted in March 1998 (doc ument WT/ACC/SPEC/HRV/3/Rev.1) and in 
November 1998 (document WT/ACC/ SPEC/HRV/3/Rev.2) for trade in goods, and a revised offer on 
market access for trade in agriculture in Nove mber 1998 (document WT/ACC/SPEC/HRV/2/Rev.1).  
The offers are available on diskette in the Secretariat.] 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 14  
 
A. Import Regulation
 
 
Customs Tariff 
 41. The representative of Croatia said that Croatia had been an active member of the World Customs Organization since gaining full membersh ip on 1 July 1993.  Croatia had joined the 
International Convention on the Harmonized Co mmodity 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 Customs was ensured in Articl es 242 to 244 of the Customs Law, and its Articles 
249 to 253 regulated the subsequent settlement of accounts, payment a nd refund of customs duties.  The 
Customs Law had been applied with minor changes si nce 1991.  Some amendments were in preparation 
to adjust to the WTO provisions on customs valuation and customs procedures to the Community Customs Code.  
Ordinary Customs Duties 
 42. The representative of Croatia said that a ne w Customs Tariff Law, based on the 1996 version of 
the Harmonized System, had entered into force on 1 Ju ly 1996.  The new customs tariff was provided to 
the Working Party in diskette form.  He added that tariff rates were increased on some agricultural and 
food products, reflecting th e abolition of import quotas.  Comp ound rates (ad valorem and specific 
element) had been established for some agricultural products.  Maximum levels fo r the specific elements 
and the corresponding seasons had been  established for fresh fruit and vegetables;  the upper limits were 
published in Annex A of the Customs Tariff.  No fu rther seasonal duties or charges were planned.  
Goods valued at less than US$500 intended for hous ehold use and carried by natural persons entering 
Croatia were assessed a unified customs duty of 8 per cent.  Other Duties and Charges Levied on Imports but not on Domestic Production 
 
43. The representative of Croatia said that all du ties and charges other than ordinary customs duties 
had been abolished with the introduction of th e new customs tariff on 1 July 1996.  Among the 
abolished duties and charges were a 10 per cent charge  on imports, a 1 per cent customs registration fee, 
and import levies affectin g various agricultural and food products (a list was provided in document 
WT/ACC/HRV/7/Add.1). 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 15 
 
 
44. [The representative of Croatia confirmed that  Croatia 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 further confir med that Croatia would no t list any other charges 
in its Goods Market Accession Schedule under Article II:1(b) of the GATT 1994, binding such 
charges at "zero".] 
 
Tariff Rate Quotas, Tariff Exemptions 
 
45. The representative of Croatia said that exemptions from payment of customs duty could be granted in accordance with the pr ovisions and procedures of the Cu stoms Law.  Article 18 of the 
Customs Law established regulations for goods not subject to customs payment such as goods in transit, 
international tender documents and other printed or recorded materi al related to culture, science, 
education, etc.  Further exemptions were outlined in Articles 24 to 33 for items imported by foreign 
diplomatic and consular offices in Croatia in accorda nce with their needs and requirements for official 
purposes;  articles for personal us e when travelling abroad;  goods rece ived for free from abroad by legal 
or natural persons;  goods destined for disaster reli ef and humanitarian purpos es;  and importation of 
industrial and other equipment related to foreign inve stment (Article 29).  Exemptions could also be 
granted under Article 54 - imports on the basis of tariff quotas - and Article 59 (commitments under 
international agreements).  He adde d that the tariff exemptions were non-discriminatory and of a general 
nature. 
 
Fees and Charges for Services Rendered  46. The representative of Croatia said that Croatia charged a stamp tax at a flat rate of HRK 60 per 
customs declaration.  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 1996. 
 47. In reply to a specific question on charges on imported cement, he noted that shipments were 
subject to certain administrative charges set in fixe d amounts.  A shipment of  cement would be subject 
to a customs declaration stamp tax (HRK 60) per declaration as well as  a quality control tax (HRK 170) 
and an additional weight-based quality control charge for physical examination of the shipment.  The quality control charges applied also to domestic products. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 16  
 
48. Asked to list by HS tariff line numbers produc ts subject to taxes and administrative charges for 
environmental purposes, the representative of Croati a 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.  Imports classified as waste were determined in accordance with the Law on Waste and relevant international conventions such as the Basle Convention. 
 
Application of Internal Taxes to Imports  49. The representative of Croatia said that certain products - coffee, coffee husks and skins, coffee substitutes containing coffee, al coholic and non-alcoholic beverage s, tobacco and tobacco products, 
motor vehicles, motorcycles, vessels, aircraft for pr ivate use and petroleum products - were subject to 
excise tax
 in accordance with the provi sions of the Law on Special Taxes on Products and the Law on 
Excise Duties on Automobiles and other Motor Vehicl es, Vessels and Aircraft.  He acknowledged that 
excise taxes on beer, non-alcoholic  and alcoholic bevera ges, tobacco and tobacco products had 
differentiated betw een imported and domestically-produced  goods until January 1998.  However, the 
majority of the excise taxes, ex cept those on tobacco products, had been brought into conformity with 
Article III of the GATT.  Parliament had adopt ed the Law Amending the Law on Excise Taxes on 
Alcoholic Beverages in October 1998, and the La w Amending the Law on Excise Taxes on Tobacco 
and Tobacco Products was under consideration by Parlia ment.  The products subjec t to excise taxes and 
the respective tax rates per 1 Februa ry 1999 are enumerated in Table 3. 
 
Table 3:  Excise Taxes in Cr oatia (rates on 1 February 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 c ontaining coffee 15.00 
Non-alcoholic beverages, per hl:  
 Domestic 40.00 
 Imported 40.00 
Beer (alcoholic), per hl:  
 Domestic 80.00 
 Imported 80.00 
Beer (non-alcohol – max 0,5 per cent vol), per hl:  
 Domestic 40.00 
 Imported 40.00 
Alcohol and alcohol ic beverages:  
 Domestic, per litre absolute alcohol 40.00  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 17 
 
 
Product description Tax rate (in kuna) 
 Imported,  " " " 40.00 
Tobacco and tobacco products:  
 Domestic tobacco, per 1,000 grams 28.00 
 Imported tobacco,    "   "  " 56.00 
 Imported cigarettes, all kinds 8.50 
 Cigarettes sold in specialized warehouses and duty-free zones 7.50 
 Domestically-produced cigarettes 
 containing at least 60 per cent domestic tobacco  
 - soft pack  - hard pack   containing less than 60 per cent domestic tobacco  
 
3.50 4.20 5.00 
 Cigarettes produced in the Republic of Croatia on the basis of  production licences   -   containing at least 60 per cent domestic tobacco 
 -   containing less than 60 per cent domestic tobacco  
 
5.00 
7.50 
 Cigars, domestic and imported, per piece 0.60 
 Cigarillos, domestic an d imported, 20 pieces 4.00 
Petroleum products (both domestic and imported):  
 Petrol, types such as MB-98, MB-86  1.90 
 Petrol, types such as BMB-98, BMB-95,  BMB-91 1.60 
 Diesel, such as D-i, D-2, D-3 1.40 
 Heating oil - extra light  and special light 0.30 
Automobiles:    
 Power 55-75 kW 
 "  Power 75-90 kW  "  Power 90-110 kW 
 " 
 Power more than 110kW  " - 
- - - - 
- 
- - new 
used new used new 
used 
new  used 3,000.00 
2,000.00 7,000.00 5,000.00 
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 WT/ACC/SPEC/HRV/6/Rev.1 
Page 18  
 
Product description Tax rate (in kuna) 
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 
 
50. He confirmed that Croatia's ex cise tax legislation would be br ought into full conformity with 
Articles II and III of the GATT prior to accession to the WTO.  Asked about the taxation of used automobiles, he 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.  
51. The representative of Croatia said that goods and services had been subject to turnover tax 
pursuant to the provisions of the Law on the Turnover Tax of Products  and Services until the end of 
1997.  The turnover tax had been replac ed by value added tax, levied at a single rate of 22 per cent, with 
the entry into force of the Law on Value Added Ta x on 1 January 1998.  The Law on Value Added Tax 
provided full national treatment.  Businesses, wh ose turnover did not exceed HRK 85,000 (in the 
previous year, after certain deductions), c ould opt to be exempt from paying VAT. 
 52. Exempt from payment of VAT in domestic trade (Article 11) were house rents (residential);  
banks, saving banks, credit and saving institutions as well as in surance and reinsurance companies;  
medical services, dentist a nd similar services provided as private pr actice;  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 instituti ons;  and services provided and goods delivered by 
religious communities and institutions, and cultural  and similar institutions.  He confirmed that VAT 
exemptions for certain services such as medical and educational services were applied equally to 
domestic and foreign service suppliers  in all four modes of delivery. 
 53. Real estate transactions, except new construc tion;  company shares;  land;  and money and 
securities transactions and deliveries were exempt from the value added tax.  Also exempt from VAT 
were certain imported goods and goods in transit,  namely temporary imports of goods exempt from 
customs duty;  imports of humanitarian aid, excep t petroleum and petroleum products, tobacco, tobacco 
products, alcohol and alcoholic bevera ges;  imports of bullion by the Croatian National Bank;  imports 
of foreign legal means of paymen t, securities and company shares ; and transit of goods through the 
customs territory of the Republic of Croatia.  All exported goods were exempt  from value added tax. 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 19 
 
 
Quantitative Import Restrictions, including Pr ohibitions, Quotas and Licensing Systems 
 
54. The representative of Croatia said that the Law on Trade contained provisions in Articles 40 
to 43 regarding the imposition of impo rt quotas, including for the purpose of protecting infant industries.  
In view of Croatia's situation in the post-war pe riod, and the level of economic development, the 
Croatian Government had considered itself entitled  to recourse to GATT Article XVIII, but as the 
economic situation had improved the Government ha d decided not to invoke GATT Article XVIII, and 
the provisions of the Law on Trade would be changed accordingly.  The existing provisions in Article 40, which authorized the Government to  introduce quantitative impor t restrictions for the 
protection of infant industries, would be abolished through the Law Amending the Law on Trade.  This 
Law was under consideration by Parliament. 
 
55. A number of members agreed that it would be both appropriate and useful for Croatia to 
consider its industry development needs in the proces s of negotiating its accession to the WTO.  Planned 
policies to develop industries th rough trade measures should be ma de known prior to accession, and 
industry protection needs should be taken into accoun t during the market access /tariff negotiation phase 
of an accession.  However, it would be neither appropriate nor useful for an applicant for WTO 
accession to seek accession on the basis that it ex pected to have recourse to import quotas under the 
infant industry provisions under the GATT 1994.  The Multilateral Trading System allows for industry 
protection through tariffs rather than  through quantitative rest rictions, and this s hould be reflected in 
Croatia's accession commitments.  56. The representative of Croatia added that his Government had adopted a Decree on 12 July 1996, 
abolishing all import quotas with immediate effect .  The abolition completed a process, begun in 1994, 
of reducing the number of products s ubject to import quotas.  Quantita tive restrictions had been imposed 
on certain agricultural products, some foodstuffs, te xtile fibres, cement, iron and steel products, and 
machinery to facilitate the establishment of a market economy and assist areas damaged by war.  Asked about a temporary limitation/ban on su gar imports, the representative of  Croatia said that the import ban 
on sugar was lifted on 2 May 1998 (Official Gazette No. 60/1998). 
 57. The representative of Croatia provided informa tion on import licensing procedures in document 
WT/ACC/HRV/25.  The most recent  decision on goods subject to impor t licences had been passed by 
the Government on 12 June 1996 in accordance with  Article 46 of the Law on Trade (Table 4 - see 
Annex). The licensing system could not be abolished without legislative approv al under Croatia's legal 
system.  He added that import lice nces applied to the usual products a llowed by Articles XX and XXI of 
the GATT 1994.  In accordance with the Law on Trade, licences could be prescribed for the purpose of WT/ACC/SPEC/HRV/6/Rev.1 
Page 20  
 
fulfilling international agreements, ensuring State se curity, 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 eq uipment for arms, ammunition, swor ds and sabres, nuclear reactors, 
radioactive materials, isotopes, de rivatives, hydrocarbons, mint postage stamps, gold, coins, iron 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 af fecting the ozone layer 
(Montreal Convention).  In addition, drugs and medical products, glands and other organs, 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 St andardization and Metrology issued import licences 
for certain scales and measuring instruments.  The Ministry of Maritime Affairs, Transport and 
Telecommunications was the licensing authority fo r imports of telecommunications instruments and 
appliances such as transmitters, radars, radio remote  controls and radio naviga tion equipment. Licences 
for imports of armaments and milit ary equipment for the Croatian Army and Croatian Police were 
issued by the Ministry of Defence and the Ministry of Internal Affa irs.  The licensing regime applied 
equally to imports from all countries.   58. The purpose of the licensing regime was to  monitor and control im port and export of goods 
which for various reasons were classified as sensitiv e, and Croatia had no intention to limit the quantity 
and value of imports, except as provided for in intern ational conventions such as the Montreal and Basel 
Conventions.  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 adde d that the import licences for iron tubes and bars 
had been temporary surveillance lice nces, issued to gather trade data.  Import licences for precious 
metals and coins were gran ted immediately upon request. 
 59. Licence applications were submitted to no more than one administrative body.  The amount and 
type of information to be submit ted was stipulated 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 importation.  The validity of a licence could be extended upon 
request of the licence holder.  An administrative fee of HRK 1 25.00 was charged for each import 
licence. Licences were not transferable between importe rs.  Applications could on ly 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 transportation of ce rtain goods.  An importer denied an import licence 
could file an administrative lawsuit with the Ad ministrative Court of the Republic of Croatia.   WT/ACC/SPEC/HRV/6/Rev.1 
 Page 21 
 
 
 
60. The representative of Croatia confirmed that, after accession, Croatia would take recourse to 
quantitative import restrictions only in situations e nvisaged in Article XII of the GATT and according to 
the WTO Agreement on Safeguards.  Other Restrictions 
 
61. The representative of Croatia said that impor t quotas could be imposed to prevent balance-of-
payments difficulties.  Croatia w ould abide by GATT procedures and ru les - resorting to  Article XII of 
the GATT - should measures on imports prove necessary for balance-of-payments purposes. 
 
Customs Valuation 
 62. The representative of Croatia provided inform ation on the implementation and administration of 
the customs valuation agreement in document WT/ACC/HRV/19.  Rules on customs valuation were laid 
down in Articles 36 to 48 of the Customs Law of the Republic of Croatia a nd implemented through the 
Statute on the Conditions and Method of Determining Ta riff Bases (the Statute).  Both regulations had 
been assumed from the former Yugoslavia (which ha d joined the GATT in 1973) .  Article 36 (1) of the 
Customs Law stipulated customs valu ation based on transaction values. 
 
63. A member stated that Croatia's legislation wa s not fully consistent with the Agreement on the 
Implementation of Article VII of  the General Agreement 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 dete rmined under the provisions of Article 1 of the 
Agreement;  (ii) the prohibitions in the Agreement regarding the determination of customs value based 
on the acceptance of the higher of two alternative valu es or minimum customs values;  and (iii) a system 
of reference prices esta blished under Article 44 of the Customs Law.  The representative of Croatia 
replied that the first point of appa rent non-conformity with WTO rules was due to a translation error.  
He acknowledged that the Customs Act did not explic itly prohibit the acceptance of the higher of two 
alternative values, however, in practice the lowest value was chosen.  The Customs Law would be amended to include all 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, howeve r, no such list had been established. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 22  
 
64. 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 tran sactions between related parties at  the request of the importer, as 
provided for in Article 2.1(b) of the Customs Valu ation Agreement and the co rresponding Interpretative 
Note of the Customs Valuation Agreement.  He theref ore considered Croatian legislation to be in full 
conformity with the WTO.  His authorities were not familiar wi th the 1984 Decision on the Treatment of 
Interest Charges in the Customs Value of Import ed Goods.  The Customs Law would be revised to 
include the operative Interpretative Notes to the Cu stoms Valuation Agreement and to align its Article 
36 (5) and 41 more closely with Article 8 of the Agreement.  65. Some members sought a commitment from Croa tia to apply fully Ar ticle 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, Croatia should accede to the WTO without recourse to any 
special and differential treatmen t provisions of Article 20 and An nex III of the Customs Valuation 
Agreement.  Croatia was also asked to provide specif ic information on the procedures invoked to ensure 
full compliance with Article 13 of the Agreement on  Customs Valuation pertaining to the ability of 
importers to withdraw goods from customs even thou gh the final valuation determination had not been 
made.  66. 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 WTO memb ers in changing its legisl ation related to customs 
valuation.  67. 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 
"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.  
68. In reply, the representative of Croatia said th at the customs valuation provisions in the new 
(draft) Customs Law would be in conformity w ith Article VII of the GATT and the Agreement on 
Implementation of the Article VII of the GATT 1994.  The (draft) Law incorporated provisions  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 23 
 
 
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).  Articles 9 
and 10 of the Agreement had been incorporated in Articles 47 and 45, respectively, of the new Law.  
Article 44, paragraph 5 of the Law incorporated Ar ticle 11, paragraphs 1, 2 and 3 of the Valuation 
Agreement, and Article 12 of the Valuation Agreemen t was incorporated in Article 44, paragraph 6 of 
the Law.  The prohibited forms of valuation were explicitly listed in Article 37 of the new Customs 
Law.  The text of the "Interpretative Notes to th e Valuation Agreement" would be incorporated in a 
Regulation, which would be adopted following the en try into force of the new Customs Law.  This 
regulation would stipulate further detailed cond itions and procedures for determining customs 
valuation. 
 Other Customs Formalities  
69. 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 was also  asked to describe how it would meet the obligations 
under the WTO Agreement on Rules of Origin for i ssuing binding assessments of origin, both for non-
preferential and for preferential regimes, within 150  days of requests by e xporters and importers, as 
provided under Article 2 (d) of the Agreement and Annex II, and outline the process of appeal against determinations of origin.  70. The representative of Croatia said that the basi c principles of rules of  origin were regulated 
under Articles 25 and 26 of the Law on Trade.  New regul ations on rules of orig in were in preparation 
and would be adopted by the Government.  The new regulations, taking into account achievements 
within the World Customs Organizati on on harmonization as we ll as the regulations and experience of 
WTO Members, would comply fully with the relevant  WTO provisions.  The rules of origin would be 
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-origi nating materials used in th e production of finished 
products, or non-originating material s not exceeding 50 per cent of the total value of the finished 
product.  Fulfilment of one or th e other criterion was su fficient 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. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 24  
 
71. Asked to provide further details on Croatia's pr eferential and non- preferential rules of origin 
contained in new regulations in prep aration, the representative of Croa tia said that his Government was 
waiting for harmonized rules of origin to be work ed out in the WTO and WCO so that arrangements 
worked out at the international level could be includ ed in Croatia's regulations.  Croatia would submit a 
translated copy of its regulations  concerning rules of origin to the Working Party by March 1999. 
 
72. Goods submitted for customs clearance were at  the disposal of the importer upon payment of 
customs duty.  An importer could be allowed a fi ve-day period to pay the duty provided a Customs 
Guarantee was submitted to the customs office.  73. A member, referring to press reports indicating that a consider able quantity of goods had been 
arriving in Croatia without payment of customs duti es through the border with the Bosnian Federation, 
stated that it was critical for the accession process that Croatia address the issue of uniform application of its customs regime vis-à-vis othe r countries.  This member reques ted a report from Croatia on how it 
planned to implement strict customs enforcement at it s borders prior to WTO accession.  In reply, the 
representative of Croatia said that  his Government had taken concrete  steps directed towards enforcing 
strict implementation of rules of origin in trade wi th Bosnia and Herzegovina under the bilateral Free 
Trade Agreement, in spite of protests and border crossing blockades on the Bosnian side of the border 
by farmers from Bosnia and Herze govina.  Furthermore, steps had b een taken to improve co-operation 
and the exchange of electronic information betwee n the customs offices of Croatia and Bosnia and 
Herzegovina.  Together with Bosnia and Herze govina, and with World Bank Funding, Croatia was 
preparing measures aimed at impr oving border-crossing infrastructure, decreasing the number of border 
crossings and bringing the bilateral free trade le gislation in line with WT O standards and national 
legislation.  He therefore concluded that the Croati an 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. 
 74. A member commended Croatia for recognizing that 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/6/Rev.1 
 Page 25 
 
 
sanitary requirements, and would also put into qu estion the value of MFN commitments undertaken in 
market access negotiations. 
 
75. The representative of Croatia confirmed that Croatia 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 
 76. The representative of Croatia said that th e new Law on Trade contained provisions on anti-
dumping measures (Articles 48 a nd 49), countervailing duties (Article  50) and safeguard measures 
(Articles 38 and 39).  Moreover, Arti cle 40 of the Law on Trade authorized the Government to introduce 
import quotas inter alia  as safeguard measures.  Article 55 of th e Customs Law, intended as a safeguard 
clause allowing the imposition of a 15 per cent specia l customs protection duty, had never been applied, 
and would be deleted in the new Customs Law.  Croa tia planned to introduce detailed regulations on 
anti-dumping, countervailing and safe guard measures in parallel with  the accession process, but not 
before the end of 1998.  Once adopted by the Gove rnment, the regulations would be provided to the 
Working Party.  
77. A member noted that Croatia's legislation in th e anti-dumping area was not  fully consistent with 
WTO requirements, notably regardi ng the determination 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 Ge neral Agreement on Tariff s and Trade 1994 (the 
Anti-Dumping Agreement) with respect to the defi nition of the substantive criteria for assessing 
dumping.  Article 48 would accordingly be revise d 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 and the conditions for the application of the additional duty, would 
be in compliance with th e Anti-Dumping Agreement. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 26  
 
78. Regarding the imposition of countervailing m easures, a member noted that the Law on Trade 
did not provide for an injury requirement, nor did 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 represen tative of Croatia replied that an  injury criterion and a provision 
relating to the treatment of non-ac tionable subsidies would be inserted in the amended the Law on 
Trade[, expected to enter into force in early 1999]. 
 
79. Noting that Croatia planned to introduce detailed  regulations for the application of safeguard, 
anti-dumping and countervailing measures, a member aske d that legislation author izing Croatia's use of 
trade remedies be submitted to the Working Party fo r review and comment.  This review should take 
place prior to the completion of Croatia's accession 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 the applicatio n of safeguard, anti-dum ping and countervailing 
measures to incorporate fully th e basic and key provisions of the WTO Agreements to ensure the 
conformity of Croatian le gislation with these Agreements.  After adoption of this Law by Parliament, his 
Government would issue regulations laying down deta iled rules of procedure and determining other 
technical issues related to the application of such measures. 
 
80.  [The representative of Croatia said th at Croatia would not apply any anti-dumping, 
countervailing or safeguard measure until it had implemented appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI, on Subsidies and 
Countervailing Measures, and on Safeguards.  In th e elaboration of any legislation concerning anti-
dumping duties, countervailing duties and safeguards, Cr oatia would ensure their full conformity with 
the relevant WTO provisions, including Article VI  and XIX of the GATT 1994 and the Agreement on 
the Implementation of Article VI, the Agreemen t on Subsidies and Countervailing Measures and the 
Agreement on Safeguards.  After such legislation was implemented, Croatia would only apply any 
anti-dumping duties, countervailing duties and safe guard measures in full conformity with the 
relevant WTO provisions.  The Working Party took note of these commitments.] WT/ACC/SPEC/HRV/6/Rev.1 
 Page 27 
 
 
B. Export Regulations  
 
Customs Tariffs, Fees and Charges for Services Rend ered, Application of Internal Taxes to Exports 
 
81. The representative of Croatia said that Article 34(2) of the Customs Law authorized the Government to impose export duties on certain produ cts in extraordinary circumstances and for reasons 
of protection.  Export duties were le vied temporarily on certain items in  response to market disturbance 
and to protect resources which we re not easily renewable.  The Regulations concerning export duties 
were abolished by governmental decisi on in 1996.  Croatia intended to apply export duties to ensure the 
supply of raw skin products for the local processing industry.  Export Restrictions 
 
82. The representative of Croatia said that th e Law on Trade allowed the imposition of export 
quotas in exceptional cases for the purpose of prot ecting non-renewable natural resources.  Accordingly, 
the main products subject to export quotas in acc ordance with Government Decision of 12 July 1996 
had been corn, crude oil, natural gas, wood, raw leat her, glass, and newspaper waste.  Quotas had been 
set for a maximum period of one year, and by 1 Nove mber each year, the Government had been obliged 
to pass a regulation stipulating the quantity allowed to  be exported in the following year.  The criteria 
and conditions applied in the allocation of the quotas  - predominantly public tendering - had been laid 
down by the Government.  The invitation to tender ha d been published in newspapers at least eight days 
prior to the auction.  Minimum 10 per cent of th e quota had been set aside for new producers, the 
remaining 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 wi th the Commercial Court needed to apply for 
a quota through a regi stered exporter. 
 83. A member reminded Croatia that all quantitativ e restrictions not jus tified under specific WTO 
provisions had to be eliminated or otherwise brought into conformi ty 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-proce ssed leather at the end of 1997 and in 
mid-1998.  A Government Decision to abolish all remaining export quotas, effective 1 January 1999, 
had been passed on 8 October 1998.  After accession Croatia would, if necessary, consider the use of WT/ACC/SPEC/HRV/6/Rev.1 
Page 28  
 
other, WTO-consistent  trade policy measures (such as export dutie s) to ensure supplies of essential raw 
materials for the domestic market. 
 
84. The representative of Croatia said that Croatia licensed expor ts of certain items (96 tariff 
positions) for statistical and monitoring purposes.  The products concerned are listed in Table 5 (see 
Annex).  The Ministry of Economic Affairs issued li cences automatically within  14 days upon receipt of 
the application. 
 85. [The representative of Croati a said that from the date of accession export restrictions would 
only be imposed in conformity with the provisions of Article XI [a nd Article XII] of the GATT 1994.  
The Working party took note of this commitment.] 
 
Export Subsidies  86. The representative of Croatia said export in centives had been allowed under the old Foreign 
Trade Operations Act, but no suppor t had been provided for the export of goods.  Croatia thus did not 
apply any export subsidies.  He added that the new Law on Trade containe d no provisions on export 
subsidies.  The Croatian Bank for Reconstruc tion and Development (HBOR) – a State-owned 
investment bank – had been establ ished and an export financing and guarantee system had come into 
operation in late 1998.  The system  was based on the Berne Union and OECD consensus criteria.  The 
bank was funded through the Government budget, bond issues and external sources (World Bank, 
EBRD, KfW, etc.).    87. Import duty was not charged on imports used  in the production of goods to be exported and 
which remained under customs control, provided such importation was reported in advance.  Re-export 
transactions were also not subject to payment of duties, provided the imported goods would be declared 
in accordance with the principles of  temporary admission, and the custom s authorities were satisfied that 
the goods imported in this manner would leave Croati a.  Exported goods and re -export transactions were 
also exempt from VAT. 
 C. Internal Policies Affec ting Foreign Trade in Goods
 
 Industrial Policy, including Subsidies 
 
88. The representative of Croatia provided info rmation on subsidy progr ammes in relation to 
Article 25 of the Agreement on Subsidies and Co untervailing Measures (circulated in document  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 29 
 
 
WT/ACC/HRV/12).  Croatia did not have a subsidy programme per se , but rather an industry 
rehabilitation and reorgani zation programme.  The Government had as sisted an area heavily devastated 
during the war by financing the payroll of seven ente rprises located there and involved in the production 
of steel (Sisak Steel and TPK-EPO Zagreb), stee l refining (Valjaonica Kumrovec), and textiles 
(Dalmatinca, Diokom, Pazinka and Velebit) at an acc umulated cost of approximately US$3.2 million by 
mid-1996.  Croatian Railways had also been subsid ized in the post-war period to the level of some 
US$400 million by the end of 1996.  The Government also  subsidized sea transport of tourists by paying 
the difference between revenues and expenditure on popular touris t lines and connections (about 
US$31 million in 1995 and US$35 million in 1996).  89. Requesting specific information on subsidies to shipbuilding, a member stated that Croatia had 
generally not provided sufficiently de tailed information on its subsidization policies, in particular with 
regard to policy objectives, levels of subsidization, e ffects, and the duration of su ch policies.  In reply, 
the representative of Croa tia said that the shipbuilding industry had not been subsidized since 1991 to 
date.  A restructuring programme for shipyards was under way, but the form and scope of subsidization 
had not yet been determined.  Asked about plans to harmonize subsidies to fisheries and the canning 
industry to WTO requirements, he said that Croatia had provided data on subsidies which were in 
accordance with WTO rules.  Information on subs idies and other forms of government support to 
industry and agriculture for 1997 and 1998 had been s ubmitted to the Working Party in December 1998.  
He confirmed that Croatia maintained no subsidie s which met the definition of a prohibited subsidy 
within the meaning of Article 3 of the Agr eement on Subsidies and Countervailing Measures. 
 90. [The representative of Croatia said that Croa tia would not maintain, and from the date of 
accession would not introduce, subsidies which met th e definition of a prohibited subsidy, within the 
meaning of Article 3 of the Agreement on Su bsidies and Countervailing Measures and would 
therefore not seek a transitional period for the elimination of such measures.  The Working Party took note of this commitment.]  
Technical Barriers to Trade, Sani tary and Phytosanitary Measures 
 91. The representative of Croatia said that Croa tia 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-WT/ACC/SPEC/HRV/6/Rev.1 
Page 30  
 
Boundary Transportation;  and technical regula tions on quality and health requirements for each 
product subject to quality and SPS control.  By Ma y 1999, Croatia planned to adopt a Law on State 
Inspectorates in Economy and Labour Area and issu e Regulations on the Implementation of the TBT 
and SPS Agreements;  on Met hods and Procedures of Quality Control;  on the List of Items Subject to 
Quality Control;  and on the Bearing of Costs of Qu ality Control.  His Government was examining all 
existing regulations and, where necessary, comple ting them with new provisions to ensure full 
conformity with the procedures for preparing, a dopting and applying new te chnical regulations and 
standards established in the TBT and SPS Agreemen ts.  Croatia's implementing regulations would 
include a checklist of points addressing the issu es regulated in the TBT and SPS Agreements, 
including the Code of Good Practice for the Prep aration, Adoption and Application of Standards. 
 
Standards and Certification 
 92. The representative of Croatia said Croatian  state bodies were members of international and 
European standardization organizations, incl uding 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 expressly mandated new Croatian standards to be based on international (ISO, IEC) or 
regional/European standards, or where these did not exist, on the standards of developed countries.  A 
large number of Croatian standards would be pr epared by accepting international and European 
standards.  A TBT enquiry point would be established in the Stat e Office for Standardization and 
Metrology and would be functional by 1 March 1999.  Draft standards were published in the State 
Office Journal, allowing at least 30 days for comments 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 of about the draft 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 da ys to comment on draft technical regulations or 
standards.  Any comments would be duly cons idered and parties making comments would be 
informed if their comments could not be accepted.  The final technical regulation or standard would 
be published in the Official Gazette of the Repub lic of Croatia, with copies submitted to the WTO 
Secretariat, and become applicable three months af ter publication in the Official Gazette.  The State 
Office for Standardization and Metrology woul d inform the International Organization for  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 31 
 
 
Standardization (ISO) about the acceptance of the Code of Good Practice for Standardization [by the 
end of July 1998]. 
 
93. A number of products were subject to quality  control, based on 55 regulations on mandatory 
testing and certification.  The ru les on quality control 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 Ar ticle 6 of the Law on Import and Export Quality Control of Goods.  
Croatian goods were controlled during the production proc ess and when leaving the factory.  In addition, 
spot-checks took place at the retail le vel.  The list of affected product s had been reduced gradually to 29 
items.  The products concerned and the relevant re gulations are listed in  Table 6 (see Annex). 
 
94. A list of legal persons authorized to perfor m mandatory product attestation was provided to the 
Working Party in document WT/ACC/HRV/22.  Prior exam ination of expert institutions, as opposed to 
sensor (visual) inspection, was re quired for agricultural products, alc oholic beverages, oil derivatives 
and textiles.  Following a sensor inspection, an insp ector could issue certificates without preliminary 
tests for repeat shipments.  Manufacturers' self-decla rations were not accepted under the present system.  
The fees associated with quality control were en umerated in the Decision on Amounts to be Paid for 
Covering the Costs of Quality Control of Produc ts Upon Export and Impo rt (Officia l Gazette 
No. 42/96), which was provided to the Working Party. 
 
95. Croatia was asked to justify the mandatory quality 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 regulations should not be more trade-restrictive than necessary to 
fulfil a legitimate objective, and that international standards should be used wh ere these existed (Article 
2.4).  Croatia’s "quality control" certificati on process was covered by the requirements of  inter alia  the 
WTO Agreements on Import Licens ing Procedures, Techni cal Barriers to Trade and Sanitary and 
Phytosanitary Measures.  Croatia's sy stem did not seem consistent with these requ irements, in particular 
with the requirements for transparency, enquiry poi nt information, prior publication, MFN or national 
treatment.  The system was burdensome to imports an d was not applied in a si milar fashion to domestic 
goods.  Croatia should review  and revise the system. 
 96. In response, the representative of Croatia said that quality cont rols 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 thos e imported by a large number of importers and 
those widely dispersed in the Croatian market.  The respective government regulations were mostly 
former Yugoslav standards, based on international standards or national standards of other countries, or WT/ACC/SPEC/HRV/6/Rev.1 
Page 32  
 
more recently adopted regulations based on internationa l or regional (European) standards.  The Law on 
Standardization envisaged acceptance of internationa l standards, European sta ndards, or standards of 
other countries, including recognition of foreign laboratory tests and doc uments issued abroad.  Croatian 
standards had been voluntary since 1 January 1997.  97. Various technical regulations had been adopted, and others would be prepared, to determine the 
essential requirem ents for products (safety, health, enviro nmental protection, us er protection) by 
harmonizing them with international ru les and European directives.  It wa s also foreseen to regulate the 
acceptance of suppliers' declaration of conformity.  Conformi ty assessment proc edures would be 
performed by testing laboratories and certification 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 the State Office for Standardization and Metrology 
(DZNM) in September 1997.  DZNM was affiliate to  EAL (European Co-operation for Accreditation of 
Laboratories).  A Regulation on rec ognition of foreign test reports is sued by internationally-recognized 
testing organizations had been published in July 1997, and had been in force since 1 September 1997. 
 
98. 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  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 33 
 
 
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. 
 
99. The representative of Croatia addmitted that certain inconsistencies existed in currently 
applied quality and SPS control.  Croatia was theref ore 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 
test.  Quality controls on pharmaceuticals were perf ormed 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.  
The fees charged for quality control and SPS contro l inspections were equal for domestic products 
and imported products.  
100. The representative of Croatia  confirmed that Croatia would apply all 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 
 101. The representative of Croatia said that Croa tia's sanitary regime was based on the Law on 
Animal Health Protection and Veterinary Medicine (Official Gazette NN 52/91).  A large number of 
other legal provisions (rules, decree s, instructions) had been adopted in accordance with this Law, in 
particular concerning the preventi on and eradication of contagious diseases, the control of animal 
breeding and trade in animals and pr oducts of animal 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. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 34  
 
102. 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.  103. Veterinary legislation was con tinuously adjusted to international standards, particularly to those 
established by the International Agency for Epiz ootic 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 Veterinary Agency.  The border veterinary inspection 
controlled and inspected animals and animal products, animal offa l substances, semen, embryo, and 
other goods that could transmit co ntagious diseases or af fect human or animal  life when imported, 
exported or in transit.  The product coverage of Croati a's sanitary measures is outlined in Table 7.  The 
veterinary inspection at the border was based on the Codex of the International Agency for Epizootic 
Diseases (Paris);  international bilateral agreements on veterinary co-operation;  the Veterinary Law 
("Official Gaze tte" No. 70/97);  and International C onventions on the Harmonisation of Border 
Inspection of Products.  Croatia's veterinary in spection at the border wa s organised within the 
Department for Border Veterinary Inspection of the Ministry of Agriculture and Forestry - Veterinary 
Directorate.  Five border veterinary stations - 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 ca rried out were determined by the Decree of the Minister of  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 35 
 
 
Agriculture and Forestry  on Borders of 6 January 1995.  The veterinary and sanitary inspection 
requirements were identi cal for shipments by domestic producers and producers from exporting 
countries.  Croatia had harmonize d its border veterinary inspection system completely with the 
requirements of the European Union.  Veterinary inspectors were trained on a regular basis to improve the standards of control, inspection and approva l procedures in accordance with the SPS Agreement. 
 
104. Concerning phytosanitary regulations, the represen tative of Croatia said that the basic law in 
this area was the Law on Plant Protection ("O fficial 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 European 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 
Organization since 1994, and expected to join the International Plant Protection Convention [by the end of 1998].  Croatia reported regularly to EPPO on all issues concerning plan t protection.  Products 
subject to phytosanitary measures are listed in Table 8. 
 105. The Regulation on the Sanitary Inspection of Plants 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 meas ures applied by other members tr ading in similar products (plants 
and plant products).  Trade bans  could be imposed on seeds and pl anting materials to prevent the 
spreading of pests, but Croatian measures were not stricter than those internationally recommended and 
did not make any distinction between imported and domestic products.  The Government had provided 
funds for the introduction of information systems in 1998, and would seek funds necessary for the 
purchase of technical equipment (laboratory equipm ent and other facilities needed for the proper 
functioning of the phytosanitary inspection) in 19 99.  He added that Croatia accepted that the 
establishment and effective functioning of such facilities were an essential basis for ensuring that border 
inspections and import approvals we re soundly based on scient ific evidence, as required under the SPS 
Agreement.  Any trade bans, including those on seed s and planting materials, needed to be based on 
scientific evidence.  Concerning risk assessment, among its many activities in the plant protection field 
(systematic survey and monitoring of harmful organisms, phytosanitary supervision of seed and 
propagating material, diagnostics, testing, inform ation and advisory activities, etc.) the National WT/ACC/SPEC/HRV/6/Rev.1 
Page 36  
 
Institute for Plant Protection in Agriculture and Forestry was responsible for activities in assessment 
of risk of plant pests (both quarantine and non-quarantine). 
 
106. The plant protection administration within the Ministry of Agriculture and Forestry was in the process of reorganization.  Plant protection inspection services at the border were organized within a special section of the Ministry of  Agriculture and Forestry (the De partment for Agriculture, Food and 
Tobacco Industries).  Operating in five units, the in spection services controlled a total of 19 plant border 
crossings where plants imported or transported throug h 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 quar antine facilities. 
 
107. Food products were subject to various laws and regulations, notably the Law on Food Quality 
and Food Quality Control, regulations on additives, ad missible levels of pesticides, toxins, mycotoxin, 
metals and like substances, and regulations concerning  microbiotic quality control.  The Law on Health 
Safety and Controls of Foodstuffs and Goods of General Usage ("Offi cial Gazette" No. 1/97 - final 
draft) stipulated th e health and safety conditions for importe d or domestically-produc ed foodstuffs and 
goods of general usage.  In addition, the Law pr ovided for health cont rol of the production and 
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;  Quanti ties of Pesticides, Toxins, Micro-toxins, 
Metals and Histamine and Similar Substances that Foodstuffs May Contain and Other Conditions in 
Relation to Health Safety or F oodstuffs and Other Goods;  Conditi ons of Preserving Food and other 
Goods by Ionising Radiation;  Health  Safety of Dietetic Food;  Conditi ons 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 Foodstuffs Outdoors;  Micr o-biological Cleanness Norm s and Methods of their 
Defining;  and Special Working Cloths and Shoe s for Workers who in Production and Distribution 
Come into Close Contact with Foodstuffs, Cosmetic an d Toilet Preparations for Body and Face.  Croatia 
was also preparing and adopting ot her implementation rules and regula tions based on Article 50 of the 
Law.  
108. Foodstuffs were defined as a ll products used as food or dri nk, processed or non-processed, 
including drinking water.  Goods of general usag e included tableware, accessories, equipment and 
apparatus for production of foodstu ffs and goods of general usage a nd containers, toys, perfumery,  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 37 
 
 
cosmetic and toilet preparations fo r body and face, washing preparations , tobacco, tobacco products and 
smoking accessories as well as certai n goods and instruments coming into close cont act with skin or 
mucous membrane when used. .  The list of imported  products subject to quality control and the relevant 
regulations (Table 6 - se e Annex) included 27 categories of fo od products.  Prior examination was 
required for Croatian exports of ca nned meat, wine and plum brandy. 
 
109. According to Article 5, paragraph 1, point 3 of the Law, foodstuffs or goods were considered 
unsafe for human health if their se nsory characteristics had changed or if they contained pathogenic 
micro-organism or pathogenic parasite;  bacteria toxi n, micro toxin, histamine, and similar substances in 
quantities exceeding those determined by the regulations ;  natural toxin or other natural toxic substances 
in quantities noxious for human hea lth;  pesticides, metals, non-metals , veterinary medicaments residue 
and other noxious substances in qua ntities harmful to human health;  additives not allowed for the 
production of foodstuffs and other goods of general usage or add itives in quantities determined 
inadmissible by special regulations ;  radio nuclides in quantities exce eding the limit regulated by the 
Law;  mechanically damaged admixtures noxious fo r human health or causing aversion;  materials 
originating from dead animals 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. 
 110. Five inspectorat es were in charge of quality and SPS control in Croatia;  the State Inspectorate 
(quality control), the Sanitary Inspectorate (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 Pharma ceutical inspectorate (quality control of pharmaceuticals).  The 
competent authority had the right to take samples to be  tested by authorised labor atories.  Health control 
of imported foodstuffs and other goods  were effected by the border sani tary 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 process the imported goods un til he received the official decision that the goods 
were safe. 
 
111. 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 WT/ACC/SPEC/HRV/6/Rev.1 
Page 38  
 
account of the entire testing process and an assessme nt of the time-frame involved would also be 
welcomed. 
 
112. In reply, the representative of Croatia said th at 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 inspectorates. 
 
113. The representative of Croatia confirmed that Croatia's sanita ry and phytosanitary standards 
system would be in compliance with WTO provi sions under the Agreement on the Application of 
Sanitary and Phytosanitary Measures as of the date of accession to the WTO.  [The representative of Croatia stated that Croatia would apply the Agreem ent the Application of Sanitary 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 
 
114. The representative of Croatia said that Croa tia had no trade-related in vestment measures in 
place at the present time, nor did it intend to in troduce any such measures in  the future.  Croatia 
accordingly did not seek to notify any measures  for elimination under the provisions of the WTO 
Agreement on TRIMs. 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 39 
 
 
115.  [The representative of Croatia said th at Croatia would not maintain any measures 
inconsistent with the TRIMs Agreement and woul d apply the TRIMs Agreement from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment.] 
 
State Trading Entities 
 
116. Referring to the definition of  State trading enterprises cont ained 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 st ated that Croatia did not have or maintained any enterprise covered 
by the provisions of Article XVII.  Ten large enterprises were under di rect State owners hip, but none of 
these public enterprises were grante d exclusive or special rights or pr ivileges which could influence, 
through their purchases or sales, the level and dire ction of imports and exports.  Upon accession to the 
WTO, his Government would notify any State-tr ading enterprise, monopoly or exclusive service 
supplier, existing at the time, in accordance with  Article XVII of the GATT and Article VIII of the 
GATS. 
 117. Responding to specific questions from members,  he said that a Stat e-owned company (Astra 
International) engaged in foreign tr ade with the same right s and obligation as any other Croatian foreign 
trade company.  Most petroleum and petrochemica l products were produced and distributed by the 
State-owned enterprise INA, which competed with mo re than 20 smaller companies in the distribution 
and trade in crude oil and oil product s.  He stated that Hrvatske sume (Croatian Forests) was a public 
utility company operating in full conformity with Arti cle XVII of the GATT.  Other public enterprises 
included Hrvatske ceste (Croatian Roads), Hrvatska  vodoprivreda (Croatian Wate r Utilities),  Hrvatska 
posta i telekomuni kacija (Croatian Post and Telecommunications, from 1 January 1999 divided into two 
companies - Hrvatska pošta (Croatian Post) and Hrvatske telekom unikacije (Croatian 
Telecommunications), Hrvatska elektroprivreda (Croatian Electricity), Hrvatske zeljeznice (Croatian Railways), Hrvatska radio televizi ja (Croatian Radio and Television), Jadrolinija (Adriatic Line), and 
Narodne novine (Official G azette).  Alcohol and tobacco products were produced and distributed by a 
large number of companies, none of which were St ate-owned or State-mandat ed.  Former socially-
owned farms had been transformed into joint-stock co mpanies, and most of them had been privatized. 
 
118. The Law on Commodity Reserves (Official Ga zette 68/1997) stipulated public stockholding of 
some agricultural and non-agricultur al products.  Commodity reserves had been established to ensure 
essential supplies in case of war, th reat of war, or natural disaster.  This function of commodity reserves WT/ACC/SPEC/HRV/6/Rev.1 
Page 40  
 
as permanent reserves was ensure d by determining the goods needed for those situations.  The main 
function of commodity reserves would be ensured w ithin the framework and appropriate manner for the 
set objectives.  The Directorate for Commodity Reserves (formerly the State Directorate for Commodity 
Reserves) - a non-profit governmental  organization - intervened in the market only upon order by the 
Government.  In certain circumstances the Directorate could intervene to prevent domestic price increases on agricultural and food products.  Purchases would be made by tender, and the Directorate 
would select the most favourable bid on the basis of  purely commercial considerations in line with the 
non-discrimination principle of Article XVII of th e GATT.  The Directorat e could export goods bought 
through intervention in the domestic market by government decision only.  119. 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. 
 120. The representative of Croatia replied that hi s 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.  Free Zones, Special Economic Areas 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 41 
 
 
121. The representative of Croatia said that six customs zones were operating in Croatia following 
the entry into force of the new Law on Free Zones (13 June 1996).  These were situated in Zagreb, 
Krapina, Kukuljanovo, the port of Rijeka, Šibenik and Os ijek.  A free zone coul d be established by one 
or more domestic legal 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, wholes ale trade warehousing, and repackaging.  Banking and other 
payment transaction activities such as insurance and re insurance could take place in a free zone subject 
to approval by the Ministry of Finance.  Operat ors paid no customs duties or other taxes on imported 
goods intended for production and consumption in the customs zone.  Goods processed in the zone for 
the domestic market would be subject to custom s and other duties on the raw materials and other 
imported inputs used in the production process.  Us ers engaged in or participating in infrastructure 
construction within the zone, in projects with a value exceeding HRK 1 million, were exempt from 
paying profit tax during the first five years of busines s activities.  Other users paid profit tax equal to 
50 per cent of the standard rate.  
Government-mandated Co untertrade and Barter 
 122. The representative of Croatia said that the St ate did not conclude compensation deals in its own 
name and did not in any way participate in the conc lusion of compensation deals.  All laws and trade 
policy measures, including customs duties, licences, etc. applied to goods exchanged in compensation 
deals. Such deals were concluded by natural or lega l 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 Mi nistry of Economy fell to around 600, and the decline had continued in 1997.  The 
number of such contracts was expected to fall as  the economy was consolidating and stabilizing in 
Croatia and in neighbouring countries.  123. The previous Law on Foreign Trade Operations  had also regulated a system of long-term 
production cooperation.  Long- term production cooperati on referred to a continuous exchange of goods 
in so called tie-in trade for a period of not less than three years (the le gal 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 cont racts were in force on long-term manufacturing 
cooperation between Croatian  firms and their partners, mostly fr om Germany, Italy and the Russian 
Federation.  Goods exchanged in long-term production transactions we re subject to the normal trade 
policy instruments, including customs duties and licen sing requirements.  The new Law on Trade, which WT/ACC/SPEC/HRV/6/Rev.1 
Page 42  
 
entered into force in February 1996,  did not specifically regulate thes e types of contracts.  Companies 
were free to enter into such arrangements  if they found it in their own interest. 
 
Government Procurement  124. The representative of Croatia said that Parl iament had passed the Law on Procurement of Goods 
and Services and Sub-contracting in mid-Decemb er 1997.  The Law replaced the Government’s 
Regulation on the Procedure for Procurement of Go ods and Services and Sub- contracting.  The Law 
entered in force in March 1998.  125. En tities under obligation to apply the Law on Pr ocurement 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).  
126. The Law applied to all public procurements with 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. 
 127. A member expected Croatia to become memb er of the Agreement on Government Procurement 
by tabling a schedule of commitment s 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 Agreemen t 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 offici ally for observer status to the Agreement on  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 43 
 
 
Government Procurement.  This would enable Croati a to get more acquainted with the practical aspects 
of the Agreement's disciplines and determine an adequa te coverage and staging, in order for Croatia to 
start negotiations on accession to the Ag reement at an appropriate stage. 
 128. The representative of Croati a confirmed that his Government  would apply officially for 
observer status in the Committee on Government Proc urement by 30 May 1999.  This step would enable 
Croatia to get more acquainted with the practical aspects of the disciplines of the Agreement and  
determine the adequate coverage a nd staging of Croatia's commitments. 
 
129. The repr esentative of Croatia confirmed that Croatia 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 membership in the Agreement [by 
31 December 2001][within 12 months of the date of  WTO accession].  [The Working Party took note 
of this commitment.] 
 
Transit 
 
130. The representative of Croatia said that tran sit of goods through the customs territory of the 
Republic of Croatia was re gulated by Articles 275 to 281 of the Customs Law.  In addition, provisions 
concerning transit transport were included in the Ar ticles dealing specifically with rail, road, sea, 
waterways and air transport, as we ll as in the Articles concerning de spatch of goods to another customs 
office for customs clearance.  The carrier submitted tr ansit documents to the customs office at the point 
of entry.  The customs office would inspect the goods and transit vehicles, and pr ovide 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 the customs territory.  The customs office of exit would check the transit documents 
and customs marks and, if necessary, inspect the goo ds and vehicles.  Goods prohibited to import into 
Croatia could not be carried in tr ansit through the customs territory. 
 
131. [The representative of Croatia confirmed th at his Government woul d 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.  The Working Party took note of this 
commitment.] 
 WT/ACC/SPEC/HRV/6/Rev.1 
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Agricultural Policies 
 
[Information on domestic support a nd export subsidies in agricultur e was circulated in document 
WT/ACC/SPEC/HRV/1 on 30 July  1996;  revised informati on was provided in document 
WT/ACC/SPEC/HRV/1/ Rev.1 of 30 June 1997.  Croatia submitted an initial offer on market access for 
trade in agriculture on diskette;  Members we re notified in document WT/ACC/SPEC/HRV/2 on 
14 May 1997.  Revisions to the initial o ffer have been circulated in document 
WT/ACC/SPEC/HRV/2/Add.1 of 3 July 1997, and WT/ACC/SPEC/HRV/2/Rev.1 of 
25 November 1998.]  132. The representative of Croatia said that all qua ntitative restrictions and supplementary fees and 
charges for imported agricultural products, including sp ecial compensatory fees and variable levies, had 
been abolished with the introduction of the new cust oms tariff on 1 July 1996.  The new tariffs were 
compound rates, consisting of an ad valorem  and a specific duty elem ent, for several products. 
 
133. The Government guaranteed the producer prices  for six commodities cons idered essential for 
the population's needs and the processing industry, i.e.  wheat, sugar beet, sunflower, soybeans, rapeseed 
oil and tobacco.  [The guaranteed prices  applicable in 1998 are listed in document 
WT/ACC/HRV/39/Add.2, re ply 22].  The system of guaranteed  prices was implemented through the 
Directorate for Commodity Reserves.  The producer  price for milk was also guaranteed, but the 
guarantee had not been enforced recently as the dome stic price had exceeded the minimum level.  The 
abolition of the system of guaranteed prices was a long-term policy objective. 
 134. The allocation in the 1996 State budget for fi nancial incentives and input subsidies to the 
agricultural sector amounted to HRK 510 million, representing just over 4 per cent of the total value of 
agricultural output in 1996.  Production subsidies ha d been provided for origin al-breed Croatian cattle 
and horses, meat and bone flour, milk, semen, olives  and island vineyards.  Major input subsidy items 
were mineral fertilizers and certified agricultural se eds.  Croatia did not provide export subsidies for 
agricultural and food products, and wo uld be prepared to bind its agricu ltural export subsidies at zero as 
reflected in its schedule of commitments annexed to Croati a's Protocol of Accession. 
 135. Croatia was reforming its syst em of agricultural subsidies.  This was a lengthy process as it 
required the establishment of a land registry to allow the Government and the Ministry of Agriculture 
and Forestry to define "less favou red areas" and other 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 Ag reement on Agriculture.  This budget increased  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 45 
 
 
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 and investment aids for 
vineyards and orchards within the framework of th e new system.  He confirmed that Croatia would 
not apply any kind of subsidy to agro-processing industries. 
 136. Some members  noted that Croatia was requesting a transition period for an undefined period 
to set its aggregate measurement of support (AMS) at a level of 15 per cent higher than its AMS 
would be if worked out under the requirements of the Agreement on Agriculture.  Croatia was asked 
to clarify which base period it would propose to use,  and whether its request for transition could be 
reconsidered if an earlier base period was chosen, and to provide information on the total value of 
agricultural production for non-product specific suppor t and the value of production for each product 
receiving support.  
 137. In reply, the representative of Croatia said th at Croatia would submit information on the total 
value of agricultural production.  Croatia was re vising existing documentation to establish aggregate 
measure of support (AMS) for the period 1996-1998.  Due to very specific circumstances, Croatia 
would seek to bind its AMS at a level 15 per cent higher than in the period 1996-1998, without any 
reduction commitments during five years from the da te of accession.  Following the transition period, 
he confirmed Croatia's readiness to assume all comm on obligations of WTO Members to be agreed in 
the new multilateral round of negotiations. 
 [to be completed]  Trade in Civil Aircraft 
 
138. 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 for Croatia confirmed that Croatia would become a party to the Agreement on Trade in Civil Aircraft (document WT/ACC/HRV/42).  An official 
application, together with a proposed tariff schedul e as basis for the accession negotiations, would be 
submitted to the WTO Secretariat by May 1999.  WT/ACC/SPEC/HRV/6/Rev.1 
Page 46  
 
Trade-Related Intellectual Property Regime 
1. General 
(a) Intellectual property policy 
 139. The representative of Croatia said that Croa tia had adopted the former  Federal (Y ugoslav) Law 
on the Protection of Inventions, Te chnical Improvements and Distinctive signs (NN 53/91).  The Law 
had been changed and amended in April 1992, and the title changed to Industrial Property Law, 
governing patents, trade and service marks, and industr ial designs.  The system of industrial property 
protection was under revision, and as  part of the reforms each area of industrial property would be 
governed by a separate law.  Current legislation in cluded a technical advance criterion which would not 
be included in future legislation. 
 
140. A member was concerned about the pace of dr afting 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 tr ansitional arrangements, the represen tative of Croatia replied that 
Croatia would respect the provisions  of Article 65.3 of the TRIPS Ag reement.  A member stated its 
policy that acceding countries be in full conformity wi th the TRIPS Agreement on the date of accession, 
with no transition permitted.  Arti cle 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 en titled to be Members of the WTO 
without additional accession negotiations.  The transition provisions in  Article 65.2, 3 and 4 were part of 
the balance achieved between developed and devel oping countries regarding intellectual property, 
recognizing that most developing and non-market economy countries had further to go than did 
developed countries to bring their laws and practices into  conformity with TR IPS.  Newly acceding 
countries should have no such need since they coul d make the necessary changes during the course of 
accession negotiations, to become affective on the date  of accession, if not befo re.  Croatia should report 
to the Working Party on its specific plans to alter it s current legislation to be in a position to fully 
implement the TRIPS Agreement by the date of accession. 
 
141. The representative of Croatia proposed (i n document WT/ACC/HRV/38) that Croatia be 
granted a transitional period for implementation of  the TRIPS Agreement up to 30 June 1999 as his 
Government assessed that this peri od was objectively needed for the complete harmonization of existing 
legislation with the TRIPS Agreement, and that all other procedures for Croatia's accession to the WTO 
could be finalized before  30 June 1999.  Croatia planned to im plement fully the TRIPS Agreement by 
June 1999.  An overview of Croatia's intellectual  property legislation and the ongoing programme to 
revise legislation is provided in Table 9.  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 47 
 
 
 
(b) Responsible agencies for polic y formulation a nd implementation 
 
142. The representative of Croatia said that the Stat e Intellectual Property O ffice of the Republic of 
Croatia had been the competent authority for industrial 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. 
 (c) Participation in international intellectual property agreements 
 143. The representative of Croatia said that Croa tia was a party to the C onvention Establishing the 
World Intellectual Property Orga nization;  the Paris Convention for the Protection of Industrial 
Property;  the Madrid Agreement Concerning the International Registration of Marks;  the Nice Agreement Concerning the Internatio nal Classification of Goods and Se rvices for the Purposes of the 
Registration of Marks;  the Locarno Agreement Establishing an Interna tional Classification for 
Industrial Designs;  the Berne Convention for the Pr otection 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 Copyright Convention, 1952 and 1971.  Croatia intended to 
seek membership of the Rome Convention upon enac tment of legal provisions granting protection for 
phonogram producers  and broadcasting organizations in  compliance with the Convention.  This was 
likely to happen in 1998.  Croatia had deposited the instrument of accession to the Patent Cooperation 
Treaty with the Director-General of the World Inte llectual 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 intended to accede to th e Hague Agreement Concerning Deposit of Industrial 
Designs in the near future. 
 (d) Application of national and MFN treatment to foreign nationals  
144. The representative of Croatia said that Croatian  legislation granted natio nal treatment to foreign 
nationals, while MFN treatment was not applied for th e time being.  Foreigners and nationals enjoyed 
equal treatment in civil and criminal procedures. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 48  
 
2. Substantive standards of protection, including procedures for the acquisition and maintenance of 
intellectual property rights 
 
145. Regarding acquisition of intellectual property  right and know-how, the representative of Croatia 
said that the Law on Foreign Trade Operations, Chap ter VIII, had contained cer tain restrictive clauses 
on acquisition of know-how from foreigners, but th is legislation had not been in force since 
January 1996. 
 (a) Copyright protection  146. The representative of Croatia said that the ba sic 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 adoption of Yugos lav federal laws in the areas of education and 
culture, Croatia had adopted the Copyright Law of  1978 as amended in 1986 and 1990, with further 
changes and amendments under Croatian Law of 1993.  Croatian legislation pr otected performers only, 
but also regarding the fixation of a picture or pi ctures in combination with sound.  An Amended 
Copyright Law, ensuring protection for phonogram producers and broadcasting organizations in 
accordance with the requirements of the TRIPS Ag reement, had been submitted to the legislative 
procedure.  According to Article 39 of the M odified and Amended Copyright Law, the Law was 
applicable to phonograms and performanc es lawfully fixed up to fifty years prior to the year of entry 
into force of the amended Law (1999).  Croatia in tended to introduce a new Law on Copyrights and 
Neighbouring Rights to harmonize its le gislation with all aspects of ex isting international standards.  
This Law would be drafted after th e entry into force of the amended Copyright Law.  The Modified and 
Amended Copyright Law was expected to enter into force on 30 June 1999. 
 
147. Copyright covered economic rights and mora l rights.  Economic right s were transferable inter 
vivos  and mortis causa ;  moral rights were only transferable 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 we re 50 years from the day the work had become 
available to the public, and 25 year s for photographic films, photographic works and works of applied 
art.  The duration of moral rights was not limited.  Computer programmes we re protected as literary, 
scientific and artistic works, and databases could be  protected as collections of works.  Persons could 
become owners of copyright by virtue of law in th e course of employment or organization of collective 
works such as the creation of databases or encyclop aedias.  Copyright legislation provided for exclusive 
distribution rights, including rental  and lending rights, for artists and performers.  Croatia had adopted 
the Berne Convention, ratified by the former Yugosl avia, with a reservation relating to the right of  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 49 
 
 
translation.  However, the Copyright Law granted th e author of a work published in a foreign language 
and enjoying protection under the provi sions of the Berne Convention, the right to remuneration for the 
translation.  The said reservation on the Berne C onvention had been removed in the Amended Copyright 
Law submitted to the legisla tive procedure on 24 March 1998. 
 148. Limitations to the exclusive right were regul ated under the Law.  Fr ee use (exploitation) of 
works was allowed for personal use, public informa tion or for educational or scientific purposes. 
 (b) Trademarks, including service marks  149. The representative of Croatia said that the pr otection of trade and serv ice marks wa s regulated 
on the basis of the Industrial Property Law, Regulations for the Procedure for the Grant of Trademark 
Rights, and the Law Governing Ad ministrative Fees for the Establ ishment of Rights of Industrial 
Property.  The acquisition of trademark rights was ba sed on registration;  the procedure was instituted by 
filing an application with the State Intellectual Property Office of the Republic of Croatia.  A granted 
right was entered in the trademark re gister and published in the official gazette.  A mark was valid for a 
period of ten years from the day the trademark applica tion was filed.  The validity could be extended an 
unlimited number of times provided the 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 just ified reason for more than five years. 
 150. The representative of Croatia said that a ne w Trademark Law would be  in force by June 1999. 
 (c) Geographical indications, in cluding appellations of origin 
 
151. The representative of Croatia said that the pres ent system of protection was based on Articles 37 
to 43 of the Industrial Property La w.  The area was also regulated under the Law on Wine and 
Regulations on the Quality of Wine and the Quality of Spirits.  An appellation of origin was established 
by entering the geographical name an d its related product in a register kept by the State Intellectual 
Property Office.  Entries into the register 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 circulation with the spec ified appellation of origin;  the place or territory 
a product was originating from;  how products shou ld be marked;  and deta iled 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 WT/ACC/SPEC/HRV/6/Rev.1 
Page 50  
 
controlled origin could be entered in the register of protected appellations of or igin by the State Office 
upon a proposal by from the Croatian Chamber of Co mmerce and prior examination of the request by 
the Ministry of Agriculture and Forestry.  The appella tion of origin of a product could be established in 
favour of a foreign person on the basis of recipr ocity under international agreements concluded or 
acceded to by the Re public of Croatia. 
 
152. Croatia intended to introduce a new separate  Law on Geographical Indications, taking into 
account Articles 22 to 24 of the TRIPS Agreement.  The Law would be in force by June 1999.  A 
provision to refuse or invalidate the registratio n of a trademark containing or consisting of a 
geographical indication for wines and spirits not having  this origin would be included in the new (draft) 
Trademark Law (Article 5). 
 
(d) Industrial designs  153. The representative of Croatia said that indus trial designs were regula ted under the Industrial 
Property Law and Regulations on the Procedure for the Grant of Rights to Models or Designs.  A new 
Law on Ornamental Designs and Models (Industrial De sign) in conformity with the TRIPS Agreement, 
in particular its Arti cles 25 and 26, would be  in force by June 1999. 
 
154. 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 Intellec tual Property Office.  The right wa s non-renewable.  Textile designs 
were protected cumulatively by the C opyright Act, as a work of applied art and industrial design, and by 
the Industrial Property Law as a model or design.  In the latter case, the applicant would need to indicate 
whether protection was sought for three-dimensio nal (model) or two-dimensional design (design). 
 
(e) Patents  155. The representative of Croatia said that a firs t draft of a new Patent Law, based on the WIPO 
model law and Austrian le gislation, remained under discussion with in his Government.  The new Patent 
Law was expected to be in force by June 1999.  Ot her legislation relevant to the Law would also be 
adopted, including the Law on Agents, the Law on Fees, the Regulation on Expenses, the Law on 
Inventions by Employees, and the Law on Confidential Inventions.  
156. A patent was valid for a period of 20 years c ounting from the date of filing the application.  
Microorganisms and microbiological processes were patentable under the Rules on Procedure for Patent 
Grant.  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 51 
 
 
 
157. Provisions on compulsory lice nsing could be found in the Industr ial Property Law (Article 139).  
A request for the grant of a compulsory licence could not be submitted earlier than four years after the 
filing date of the patent application, or three years af ter the date of the patent grant if this term expired 
earlier.  According to the Law, the patent owner wo uld be considered not usi ng or insufficiently using 
the patent if, inter alia , domestic demand was satisfied by im portation to a great extent, or the 
importation of the products manufactured according to  the protected invention hampered or obstructed 
the industrial application in the country.  No compulso ry licence had been issued thus far.  Croatian 
legislation on compulsory licensing would be harm onized with Article 31 of the TRIPS Agreement in 
the new Law on Patents.  
158. The fees and charges involved in granting a pate nt were established in accordance with the Law 
on Administrative Fees in the Field of Industrial Property and the Decision on the Procedure Special 
Charges and Information Service Charges of the State Intellectual Property Office.   
(f) Plant variety protection 
 159. The representative of Croatia said that this area was regulated by the Law on the Protection of 
Agricultural Plants.  The Law, which inter alia  regulated the protection of new plant varieties, was 
enacted in November 1997 and became effective on 13 December 1997.  The La w was in compliance 
with the UPOV Convention, which Croatia intended to join.  Nati onal treatment was accorded on the 
condition of reciprocity, as provided by the UPOV Convention.  (g) Layout designs of integrated circuits 
 
160. The representative of Croatia said that Croa tia planned to introduce a Law on the Topographies 
of Integrated Circuits in compliance with the provi sions of Articles 35 to 38 of the TRIPS Agreement.  
The Law would be in force by June 1999. 
 
(h) Requirements on undisclosed information,  including trade secrets and test data 
 161. 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 th e protection of information within government 
administration or by enterprises themselves c ould be found in the Law on General Administrative 
Procedure (Article 150), the Law on Government Offi cials and Employees (Article 32), the Penal Law 
(Article 295), the Labour Law (Art icles 89, 92 (paragraph 4), 93 and 155), the Trade Law (Article 58) WT/ACC/SPEC/HRV/6/Rev.1 
Page 52  
 
and the Company Law (Articles 248, 273 and 629).  Te st data and other information supplied in the 
context of approving the marketing of pharmaceutical and of agri cultural chemical products were 
protected by special regulations (b y-laws) applied by the Ministry of Health and the Ministry of 
Agriculture and Forestry.  The rules did not differ from the normal provisions applied in other countries.  
Article 16 of the Law on Medici nes and Medical Products stipulated that documents received on 
pharmaceuticals or medical products should be trea ted as trade secrets. 
 
3. Measures to control abuse of intellectual property rights 
 162. The representative of Croatia said that mechan isms for the protection of intellectual property 
rights existed in administrative, civi l and penal law.  Abuse of copyri ght and the right of performers was 
controlled by agents of the organization of aut hors or the organization fo r performers' rights.  
Representatives registered with the State Intellectual Property Office could act on  behalf of foreign and 
domestic legal and natural persons in the procedure for protection of industrial property rights.  A new 
Law on Execution and Safeguard included compulsory measures (fines, arrest and imprisonment) which 
could be applied in an execute procedure. 
 163. Punishment - fines or imprisonment - for the infringement of copyright was set out in the Penal 
Law as well as in the Amended Copyright Law.  Fi nes for infringement of the rights of authors or 
performers could amount to  (maximum) HRK 60,000. 
 4. Enforcement  164. The representative of Croatia said that the La w on Enforcement, relating to the enforcement of 
court decisions, entered into force on 12 August 1996.  [A translated copy of the relevant provisions of 
the law dealing with the enforcement of intellect ual property protection w ould be provided to the 
Working Party.]  Articles 298 and 299 of the Law contained provisio ns on provisional measures.  A 
court could also order provisional measures at the request of the infringed party in accordance with 
Article 442 of the Law on Legal Proceedings.  In his vi ew, Croatian legislation fulfilled the requirement 
of Article 44 of the TRIPS Agreemen t regarding the right of a party to ask for injunctions.  He also 
noted that the Law on the Protection of Market Co mpetition could be invoked in disputes over the 
infringement of intellectual property be fore a commercial court in Croatia. 
 
165. In the combat against illegally produced phonogr ams, 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.  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 53 
 
 
 
(a) Civil judicial proc edures and remedies 
 
166. The Commercial Courts seated  in Zagreb, Osijek, Rijeka and Split had initial jurisdiction over 
intellectual property matters.  The High Commercial Court (in Zagreb) was the competent second-instance body for the protection of in tellectual property.  Decisions of the High Commercial Court could 
be appealed to the Supreme Court of the Republic  of Croatia, which c ould also decide on the 
infringement of procedural rights.  The procedures in a case of infri ngement before a court were laid 
down in the Law on Civil Procedure, which also cont ained 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 c ourt, and the court's decision, could take from two to three months to 
more than one year.  Court decisions  were set out in writing and substant iated in accordance with Article 
338 of the Law on Legal Proceedings.  167. 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 reque st for review of a decision of the High Commercial Court should be 
filed with the Supreme Court within 30 days of receip t of the decision of the appellate court.  A request 
for the protection of legality should be filed with th e Supreme Court by the Croa tian State At torney if 
the law or a treaty had been violated by a final decision. 
 (b) Provisional measures  168. The representative of Croatia said that th e Law on Enforcement contained provisions on 
provisional measures.  In respect of infringement of copyright, a court could order provisional seizure or 
prohibit the continued used of the disputed objects or works.  The competent police administration could 
prohibit cultural or artistic performances at the request  of the author or a professional association.  The 
financial police could temporarily se ize objects, documentation or financ ial means utilized in a criminal 
or economic offence or infringement.  As a general rule, courts did not have the authority to introduce 
provisional measures inaudita altera parte , but could do so if the rights of the infringed party were 
seriously threatened, and against security for any da mage inflicted on the other party as a result of the 
provisional measure.  In addition, Article 442 of th e 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 un lawful damage, removing irreparable damage, or to prevent violence. 
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 54  
 
(c) Administrative proc edures and remedies 
 
169. Administrative procedures in the area of i ndustrial property were carried out by the State 
Intellectual Property Office.  An ad ministrative lawsuit against an act of the Office could be initiated 
before the Administrative Court.  The administra tive 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  170. The representative of Croatia said that Croa tia had recently adopted the Law on the Ratification 
of International Convention on the Harmonization of Bo rder Controls of Goods.  Croatia planned to 
introduce a border control system concerning the infri ngement of intellectual property rights, with due 
consideration to Articles 51 to 60 of the TRIPS Agreement, through the new Customs Law which would 
be in force by June 1999. 
 
(e) Criminal procedures  171. The representative of Croatia said that remedies  - including seizure, forfe iture 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.  172. [The representative of Croatia that his Gove rnment would apply fully the provisions of the 
Agreement on Trade-related Aspects of Intellectual Property Rights (TRI PS) 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 
 [A note on the trade regime in services has been issued as document WT/ACC /HRV/9.  Information on 
measures affecting trade in services in the format  of document WT/ACC/5 was circulated in document 
WT/ACC/SPEC/HRV/5 on 21 August 1997.  Croatia submitted its initial offer on market access for 
trade in services on diskette in May 1997 (docum ent WT/ACC/SPEC/HRV/4) a nd revised offers in 
March 1998 (document WT/ACC/SPE C/HRV/4/Rev.1); October 1998 (WT/ACC/SPEC/HRV/4/Rev.2) 
and November 1998 (WT/AC C/SPEC/HRV/4/Rev.3).]  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 55 
 
 
 
173. The representative of Croatia said that, as a market-oriented country in transition, Croatia was 
adjusting its legislation acco rding to the principles of liberaliza tion advocated by the WTO.  Accepting 
fully the rules and principles of the General Agr eement on Trade in Services, Croatia was strongly 
committed to the rules preventing discriminatory meas ures and restrictions related to market access and 
national treatment in all modes of supply.  He noted that Croatia w ould seek MFN exemptions in the 
road transport area, [audiovisual services] and concerning acquisiti on of real esta te (reciprocity 
requirement).  These exemptions  would apply to all countries. 
 174. Regulation of services activ ities was within the competence various institutions, including the 
Ministries of Science and Tec hnology;  Finance, Economy, Mar itime Affairs, Transport and 
Communications;  Health;  Education and Sports;  Ur ban Planning, Cons truction and H ousing;  Labour 
and Social Welfare;  and the Croatian Securities 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 Employment of Forei gn Persons.  The Law did not make any distinction 
between short-term or long-term employment, and stipulated that work permits were issued in 
concordance with the length of employment contr acts, with validity up to two years (renewable). 
 175. The Company Law defined a branch office as serving the purpose of carrying out business 
activities of a company or an individual merchant outsi de the place of the registered office.  A branch 
office was not a separate legal entity;  its rights and ob ligations were vested in the parent company.  
The establishment of a branch office (or a subsid iary) was a precondition for any foreign person to 
commence business activity in Croatia.  Branch offices were registered with the appropriate 
registration court.  Applications should be accompan ied by (i) an excerpt from the home court register 
of the founder or a valid document indicating th e legal form of the founder 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 memo randum of assocition of the founder;  and (iv) a 
certified abbreviated (most recent) annual balance sheet  of the founder.  A fo reign person could have 
several branch offices in Croatia.  The founder w as required to designate 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.  Before opening a 
representative office foreign persons 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 WT/ACC/SPEC/HRV/6/Rev.1 
Page 56  
 
Foreign Representative Offices in the Republic of Cr oatia (published in the Official Gazette on 24 
January 1997). 
 
176. The representative of Croatia provided informa tion 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, wh ich had entered into force on 29 June 1998.  The appropriate bank 
licence was issued by the Natio nal Bank of Croatia.  The mini mum capital requirement for the 
establishment of a bank amounted to DM 5 millio n in local currency, or DM 15 million for banks 
registered for transa ctions with foreign countries.  Savings ba nks 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 tran sactions with foreign countries.  A representative offi ce of a foreign 
bank could only engage in market research, promotio n or representational activities.  Parliament had 
adopted a new Banking Law on 18 December 1998 (Off icial Gazette No. 161/98).  Its main features 
related 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 
requirement for establishment had be en abolished definitely in the new Law.  According to the new 
Law, the minimum capital requirement for the establ ishment 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 operator s would need a local intermediary.  Foreign companies with operating 
presence in Croatia could manage and underwrite share issues, otherwise a local partner would be 
required.  Non-residents were not allowed portf olio investment in short-term securities. 
 177. The insurance sector was governed by the La w on Insurance.  Foreign insurance companies 
were not permitted to operate thr ough subsidiaries in Croatia, but w ould need to establish either a 
wholly-owned or a joint-stock company, only as a subsidiary.  Branching in the insurance industry 
would be allowed for non-residents upon accession to the WTO.  Croatia had introduced certain 
restrictions on cross-border provision of insurance and re-insurance to redu ce 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 allo wed to provide life and non-life insurance against 
risks not covered by Croatian companies.  However, full opening of Croatria's insurance sector to direct foreign competition, particularly in direct  life and non-life insurance on a cross-border basis, 
would put the domestic sector in unequal position with  insurance industries in neighbouring countries 
whose national markets were not yet fully liberalised.   WT/ACC/SPEC/HRV/6/Rev.1 
 Page 57 
 
 
178. The telecommunications sector was currently re gulated by the Ministry of Maritime Affairs, 
Transport and Communications.  Competition was a llowed in all telecommunication services sectors 
except basic services in fixed networks (voice tele phony and telex) and leased lines.  Foreign companies 
could only provide basic telecommuni cation services through, and in ag reement with, Croatian Post and 
Telecommunications (HPT).  Other services, such as mobile telecommunica tion networks, electronic 
mail, on-line information, electronic data interchange and va lue-added services could be provided by a 
Croatian subsidiary operating with  a concession from the Telecomm unications Council.  The "Law on 
the separation of the Croatian Post and Telecommunic ations 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 companies - one for postal services, th e other for telecommunicati ons - to take effect as 
from 1 January 1999.  According to the Law on Tel ecommunication, foreign entities could hold up to 
25 per cent of the capital of the radio and television c oncessionaire in radio,  television and cable 
television concessions.  179. The State-owned Croatian Ra ilways (HZ) held a monopoly on transportation of passengers and 
goods by rail, but was exposed to heavy competition fro m other modes of carriage, in particular road 
transport.  Foreign companies could provide publ ic 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 licen ce for cabotage.  Croatia was 
requesting an MFN exemption on road passenger and fre ight transportation because of the  commercial 
characteristics of road transport services in the region.  These services were regulated through 
bilateral or plurilateral agreements on road trans port, which reserved or limited the supply of road 
transport services and specified operating condi tions, 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. 
 180. Concerning professional services , he said that legal services a nd legal assistance could only be 
provided by lawyers and lawyers' associations regi stered with the Bar Council of the Republic of 
Croatia.  Registration in the Bar Council required Cr oatian citizenship, a degree from the Faculty of 
Law, passing of the bar examination in Croatia, and high proficiency in th e Croatian language.  The 
citizenship requirement applied only for legal proc edures relating to Croatian Law, and not for legal 
consultancy on foreign and interna tional law (through consultancy firms).  Parties could be represented 
by lawyers registered in other count ries in disputes before selected  (arbitration) courts in matters 
involving international issues.  Fo reign auditing companies – not esta blished in Croatia - could access 
the Croatian market only in joint operation with a local partner. WT/ACC/SPEC/HRV/6/Rev.1 
Page 58  
 
 
181. A new Law on the Tourist Industry had entere d into force at the end of 1996, harmonizing 
Croatian legislation with  regulations applicable in Europe an Communities' countries.  The new 
legislation provided a framework for upgrading catering and tourism serv ices in Croatia.  The war had 
affected the tourist industry significantly, and th e Croatian Tourism Associ ation was implementing a 
promotion programme to regain lost markets.  The Government assisted the re vival 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 mark ets overseas, participation in international fairs, 
printing of catalogues, etc.), a nd HRK 45 million (US$6.9 million) in 1997 and HRK 43 million in 1998 
in subsidies to air, road and sea transport to prom ote tourist visits, tour ope rators, travel and tourist 
agencies.  A budget allocation of HRK 70 million for the tourism industry was foreseen for 1999. 
 
[to be completed] 
 Transparency  [to be completed] 
 
Trade Agreements  182. The representative of Croatia submitted an  updated list of bilate ral trade and economic 
agreements, and international organizations in which Croatia was participating (circulated in document 
WT/ACC/HRV/6/Rev.1 on 9 October 1996).  The tr ade and economic cooperation agreements were 
based on the principle of most favour ed nation treatment.  He added th at Croatia was fully committed to 
the MFN principle in market access and in other area s covered by the WTO.  His Government intended 
to conclude free-trade agreements with CEFTA c ountries and in due course join the European 
Communities, and would ensure that any such ag reements would meet th e requirements of GATT 
Article XXIV.  183. Trade preferences for goods originating in Tuni sia, Turkey, Uruguay, Spain, Former Yugoslav 
Republic of Macedonia and Slovenia had been abolis hed at the end of 1993.  At present, the only 
preferential trading agreements in force were a Bilateral Agreem ent on Economic Cooperation with the 
Republic and Federation of Bosnia and Herze govina, signed on 24 March 1995, a Free Trade 
Agreement with the Former Yugos lav Republic of Macedonia, and an  FTA with the Republic of 
Slovenia concluded in 1997.  These FTA's were ba sed on the CEFTA model and covered substantially 
all trade between Croatia, Slovenia and the Former  Yugoslav Republic of Ma cedonia.  Preferential  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 59 
 
 
market access on agricultural pr oducts was granted th rough tariff rate quotas.  None of these 
Agreements covered trade in services.  Copies of the trade agreements were provided to the Working 
Party. 
 184. The Trieste and Gorizia Ag reement of 1955 included provi sions regulating border trade 
between the municipalities of Buje , Novigrad and Umag in Croatia a nd 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 impor ted under list "D" (reproduced in document 
WT/ACC/HRV/30, pp.78-80) were duty-free provided they were de signated for usage in the border area 
determined by the Trieste Agreement.  Local export-import trad e could be carried out by a company 
located in the border area and registered with the Court register for such activities. 
 
185. In response to a request by a member, the re presentative of Croatia confirmed that Croatia 
would notify the Free Trade Agr eement between the Republ ic of Croatia and the Former Yugoslav 
Republic of Macedonia to the Committee on Regional  Trade Agreements no later than upon Croatia's 
accession to the WTO. 
 186. A member noted provisions regarding a 1 per ce nt customs evidence fee in Croatia's Free Trade 
Agreement with the Former Yugoslav Republic of Ma cedonia, and questioned 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 imports from the former Yugoslav Republic of Macedonia, while the 
latter applied a 1 per cent customs evidence fee on  Croatian exports.  Croa tia recognized that such 
provisions in its Free Trade Ag reement with the Former Yugosl av Republic of Macedonia and the 
Agreement on Economic Cooperation between Croatia and th e Republic and Federation of Bosnia and 
Herzegovina were not in compliance  with Article XXIV of the GATT.  Croatia would therefore initiate 
a revision of these Agreements to bring them into conformity with Article XXIV.  Croatia intended to 
negotiate a Free Trade Agreement co vering substantially all trade in goods  originating in Croatia and the 
entire territory of Bosnia and Herzegovina. 
 
187. 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 be tween 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 WT/ACC/SPEC/HRV/6/Rev.1 
Page 60  
 
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 
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.  
188. 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
 
 189. The Working Party took note of the explanatio ns and statements of Croatia concerning its 
foreign trade regime, as reflected in this report.  The Working Part y took note of the commitments given 
by Croatia in relation to certain specific matters which are repr oduced in paragraphs ….... in this Report.  
The Working Party took note that these commitments had been incor porated in paragraph 2 of the 
Protocol of Accession of Croatia to the WTO. 
 190. Having carried out the examination of the foreign trade regime of Croatia and in the light of the 
explanations, commitments and con cessions made by the representative of Croatia, the Working Party 
reached the conclusion that Croatia should be invited to accede to the Marrakesh Agreement 
Establishing the WTO pursuant to the provisions of Ar ticle XII.  For this purpose the Working Party has 
prepared the Draft Decision and Protocol of Access ion reproduced in the Appendix to this report, and 
takes note of Croatia's Schedule of Specific Comm itments on Services (document .....) and its Schedules 
of Concessions and Commitments on Agriculture and Goods (document .....) that are attached to the  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 61 
 
 
Protocol of Accession.  It is proposed that these texts be approved by the General Council when it 
adopts the Report.  When the Deci sion is adopted, the Protocol of Accession w ould be open for 
acceptance by Croatia which would be come a Member thirty days after it accepts the said Protocol.  The 
Working Party agreed, therefore, that it had comp leted its work concerning the negotiations for the 
accession of Croatia to the Marrakesh  Agreement Establishing the WTO. 
 
[to be completed] WT/ACC/SPEC/HRV/6/Rev.1 
Page 62  
 
 
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/6/Rev.1 
 Page 63 
 
 
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 referr ed 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 Protocol , which shall comprise the commitments referred to in 
paragraph ... of the Working Party Report, shall be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in the para graphs referred to in paragraph ... 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. WT/ACC/SPEC/HRV/6/Rev.1 
Page 64  
 
 
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.  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 acceptance, by signature or otherwise, by Croatia until ......... 
 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  .... one thous and nine hundred and ninety ........, 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/6/Rev.1 
 Page 65 
 
 
  
 
ANNEXES 
   
 [to be completed] WT/ACC/SPEC/HRV/6/Rev.1 
Page 66  
 
ANNEX 1 
 
Laws, regulations and other information provided to the Working Party by Croatia
 
 
- Reasons for requesting developi ng country treatment for the Repu blic of Croatia within the 
WTO; 
- Agricultural Strategy of the Republic of Croatia; - 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; 
- Law on Trade; 
- Draft Law Amending the Law on Trade; - The Croatian Company Law; - The Croatian Customs Law; - Extract of the Draft Customs Law relate d to the issue of Customs Valuation; 
- The Croatian Customs Service Act; 
- The Croatian Free Zones Act; 
- 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; 
- 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; 
- 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; 
- Draft Law on State Inspectorate s in Economy and Labour Area; 
- Law on Waste; 
- Law on Environmental Protection; 
- The Standardization Act of 2 July 1996; - State Office for Standardization and Metrology:  Rules for Preparation, Adopting and Issuing of 
Croatian Standards; 
- List of Croatian Standards; - 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 Phytosanitary Insp ection 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 Concerning the Healthiness and Health Co ntrol of Foodstuffs and General Use Articles; 
- List of Protection Measures on Agricultural and Food Products;  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 67 
 
 
- Import Prices for Agricultural Products in 1997; - Law on State Commodity Reserves; - Draft Tobacco Law; - 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; 
- List of Public Enterprises; - Electric Power Supply Act with Explan ations and Restructuring Programme; 
- Restructuring Programme and th e new Croatian Railways Act; 
- 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 Tax on Spirits; 
- Decree on Procurement of Goods, Works and Services; 
- Law on Procurement of Go ods, Services and Works; 
- The Croatian Competition Protection Act; - Agreement on Trade-related Aspect s of Intellectual Property Rights; 
- Statute of the Republic of Croatia on the Cond itions and Method of Determining Tariff Bases; 
- 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; - Diskette containing the new customs tariff (in force as from 1 July 1996); 
- The Law on the Foreign Exchange System , Foreign Exchange Operations and Gold 
Transactions; 
- 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; 
- Tender Documentation for the Purchase of Joint Stock Companies; 
- World Bank Project Portfolio in Croatia; - List of IBRD, EBRD and CEF Project Loans 
 
 [to be completed] WT/ACC/SPEC/HRV/6/Rev.1 
Page 68  
 
Table 4
 
 
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 
 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) 
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: 
 2920.90 - Other: 
 2920.9003 ---- Nitroglycerin 
 2920.9004 ---- Other esters of nitrate acid 
 2920.9006 ---- Salts from other acids  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ministry of Economy 
                                                      
1 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 69 
 
 
HS code Produce description Licensing authority 
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 
 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  
 
 
 
 
 
 
 
 
  
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 
    
    
    WT/ACC/SPEC/HRV/6/Rev.1 
Page 70  
 
HS code Produce description Licensing authority 
 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 with iron (III) hydroxide 
 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 medicam ents for retail sale 
 3004.109 --- Medicaments in doses in bulk 
 3004.20 - Containing other antibiotics 
 3004.201 --- Ready made medicam ents 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 medicam ents 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 medicam ents for retail sale 
 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 medicam ents for retail sale 
 3004.509 --- medicaments in doses in bulk  
 
 
 
 
 
 
 
 
  
 
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry 
    
     WT/ACC/SPEC/HRV/6/Rev.1 
 Page 71 
 
 
HS code Produce description Licensing authority 
 3004.90 - Other 
 3004.902 --- Other medicamen ts for retail sale 
 3004.903 --- Medicaments in doses in bulk 
 3004.909 --- Other 
30.06  Pharmaceutical goods specified in note $ 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 
    
 
 
 
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry 
36.01 3601.00 Propellant powders 
 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  
 
 
 
 
 
 
 
 
 
 
Ministry of Economy WT/ACC/SPEC/HRV/6/Rev.1 
Page 72  
 
HS code Produce description Licensing authority 
44.16 4416.00 Casks, barrels, vats, tubs and other coopers' 
products and parts thereof, of wood, including 
staves 
 4416.009 --- Other State Bureau of Standards 
and Measurements 
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 
 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 
 4907.009 --- Other  
 
 
 
 
 
 
 
 
Ministry of Economy 
 
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 
 7017.90 - Other  
 
 
State Bureau of Standards 
and Measurements 
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 
 7108.12 --- Unwrought 
 7108.13 -- Semi-manufactured 
 7108.20 - Monetary 
71.18  Coin  
 
 
Ministry of Economy 
     WT/ACC/SPEC/HRV/6/Rev.1 
 Page 73 
 
 
HS code Produce description Licensing authority 
 7118.10 - Coin (other than gold coin), not being legal 
tender  
 7118.90 - Other 
73.04  Tubes, pipes and hollow profiles, seamless, of 
iron (other than case iron) or steel 
 7304.10 Line pipe of a kind used for oil or gas pipelines 
 7304.29  
 7304.292 --- Protection pipes of other steel or an external 
diameter not exceeding 16" 
 7304.295 --- Other tubes for manufacture, of other steel 
 7304.299 --- Other 
 7304.31  
 7304.311 --- Precision cold-drawn tubes 
 7304.319 --- Other 
 7304.39 -- Other 
73.06  Other tubes, pipes and hollow profiles (for 
example, open seam or welded, riveted or 
similarly closed) of iron or steel: 
 7306.10 - Line pipe of a kind used for oil or gas pipelines
 7306.20 Protection tubes ("casing"), production tubes 
("tubing") of a kind used in drilling for oil or gas
 7306.201 --- Protection tubes of an external diameter not 
exceeding 16" 
 7306.202 --- Production pipes of external diameter not 
exceeding 3 1/2 
 7306.209 - Other 
 7306.30 Other, welded, of circ ular cross-section, of iron 
or non-alloy steel 
 7306.50 - Other, welded, of circular cross-section of 
other alloy steel 
 7306.60  
 7306.601 --- Of iron and analloyed steel of square average 
diameter of maximal dimension 70 x 70mm, 
rectangular average of maximal dimension 80 x 
60mm 
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  
 8401.30 - Fuel elements (c artridges), non-irradiated 
 8401.40 - Parts of nuclear reactor  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Ministry of Economy WT/ACC/SPEC/HRV/6/Rev.1 
Page 74  
 
HS code Produce description Licensing authority 
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 
84.22  Dishwashing machines;  machinery for cleaning 
or drying bottles or other containers; machinery 
for filling, closing, sealing or labelling bottles, 
cans, boxes, bags or other containers;  other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages;  
 8422.30 - Machinery for filling, closing, sealing or 
labelling bottles, cans, boxes, bags or other 
containers;  machinery fo r capsuling bottles, jars, 
tubes and similar containers;  machinery for aerating beverages 
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 
 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 
 8423.909 --- Parts  
 
 
 
 
 
 
 
 
  
 
 
 
 
State Bureau of Standards 
and Measurements 
84.33  Harvesting or threshing machinery, including 
straw or fodder balers;  grass or hay mowers: Ministry of Economy 
    
     WT/ACC/SPEC/HRV/6/Rev.1 
 Page 75 
 
 
HS code Produce description Licensing authority 
 8433.5 - Other machinery for harvesting agricultural 
products (harvest, pick-up, etc.) machines for 
sorting 
 8433.51 --- Combine harvester-threshers 
 8433.511 --- For grain and corn 
 8433.5112 --- Power over 45 up to 167kw 
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 
 8525.191 - Radio transmission 
 8525.109 -- Other 
 8525.20 - Transmission apparatus incorporating reception 
apparatus 
 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  
 
 
 
 
 
 
 
 
  
 
 
 
Ministry of Economy 
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles 
89.06 8906.00 Other vessels, incl uding warships and lifeboats 
other than rowing boats: 
 8906.001 --- Warships of all sorts  
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior WT/ACC/SPEC/HRV/6/Rev.1 
Page 76  
 
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 
 9015.40 - Photogrammetrical, surveying instruments and 
appliances 
 9015.80 - Other instruments and appliances 
 9015.801 --- For petroleum and gas expolations, 
electronics 
 9015.809 --- Other  
 
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
90.18  Instruments and applia nces used in medical, 
surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight testing instruments 
 9018.90 - Other apparatus and instruments 
 9018.901 --- Apparatus for dialysis 
90.17  Drawing, marking-out or mathematical 
calculating instruments (for example, drafting 
machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length for use in the hand (for example, measuring rods and tapes, 
micrometers, callipers), not specified or included 
elsewhere in this chapter: 
 9017.30 - Micrometers, callipers and gauges 
 9017.309 --- Other 
 9017.80 - Other instruments 
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, cannulae and the 
like 
 9018.31 -- Syringes, with or without needles 
90.24  Machines and appliances for testing the 
hardness, strength, compre ssibility, elasticity or 
other mechanical propert ies of materials (for 
example, metals, wood, textiles, paper and plastics) 
 9024.10 -- Machines and applia nces for testing metals  
 
 
 
 
 
 
 
State Bureau of Standards 
and Measurements 
     WT/ACC/SPEC/HRV/6/Rev.1 
 Page 77 
 
 
HS code Produce description Licensing authority 
 
 9024.80 - Other machines and appliances 
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 
 9025.80 Other instruments 
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) 
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  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
State Bureau of Standards  
and Measurements 
    WT/ACC/SPEC/HRV/6/Rev.1 
Page 78  
 
HS code Produce description Licensing authority 
 
 9027.102 --- Electric  
 9027.109 --- 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  
 9029.10 - Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like: State Bureau of Standards  
and Measurements 
 9029.101 --- Electronic  
 9029.102 --- Electric  
 9029.109 --- 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;  
 9030.40 - Other instruments and apparatus, specially 
designed for telecommunications (for example, cross-talk meters, gain measuring instruments, distortion factor mete rs, psophometers):  
 9030.401 --- Electronic  
 9030.409 --- Other  
 9030.8 - Other instruments and apparatus  
 9030.82 -- For measuring or checking semi-conductor 
wafers or devices  
 9030.83 -- Other, with a recording device:  
 9030.831 --- Electronic  
 9030.839 -- Other  
 9030.891 --- Electronic  
 9030.899 --- Other   WT/ACC/SPEC/HRV/6/Rev.1 
 Page 79 
 
 
HS code Produce description Licensing authority 
90.31  Measuring or checking instruments, appliances 
and machines, not specified or included 
elsewhere in this chapter; profile projectors:  
 9031.20 - Test benches 
 9031.209 --- Other 
91.01  Wrist-watches, po cket-watches and other 
watches, including stop-w atches, with case of 
precious metal or of metal clad with precious metal: 
 9101.9 - Other 
 9101.91 -- Electrically operated 
 9101.911 --- Stop-watches 
 9101.99 -- Other 
 9101.991 --- Stop-watches 
 9107.009 ---- Other 
91.02  Wrist-watches, po cket-watches and other 
watches, including stop-watches, other than 
those of heading No.9101 
 9102.9 - Other 
 9102.91 - Electric ally operated 
 9102.911 --- Stop-watches 
 9102.99 --- Other 
 9102.991 --- Stop-watches 
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): 
 9106.10 - Time-registers ;  time-recorders 
 9106.20 - Parking meters 
91.07 9107.00 Time switches, with  clock or watch movement 
or with synchronous motor  
 
 
 
 
 
 
 
 
 
 
 
State Bureau of Standards  
and Measurements 
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): Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
 9303.10 - Muzzle-loading firearms  WT/ACC/SPEC/HRV/6/Rev.1 
Page 80  
 
HS code Produce description Licensing authority 
 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 
 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 
 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 Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
   WT/ACC/SPEC/HRV/6/Rev.1 
 Page 81 
 
 
Table 5  
 
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 
 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  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ministry of Economy 
    
                                                      
2 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer WT/ACC/SPEC/HRV/6/Rev.1 
Page 82  
 
HS code Product description Licensing authority 
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 (actio ns, cheque books, etc.) 
 4907.003 --- Banknotes which are not legal means of 
payment in any of the countries 
 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 
 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  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Ministry of Economy 
    
     WT/ACC/SPEC/HRV/6/Rev.1 
 Page 83 
 
 
HS code Product description Licensing authority 
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 (c artridges), 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 
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 
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: 
 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  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
    
    WT/ACC/SPEC/HRV/6/Rev.1 
Page 84  
 
HS code Product description Licensing authority 
 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  
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
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 
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  
 
 
 
 
 
Ministry of Culture 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 85 
 
 
  
Table 6
 
 
Imported Products Subject to Product Quality Control  
and Regulations for the Control of these Products  
 
 Product Description 
1. Meat and Meat Products  
The regulation on the quality of  meat of beef cattle and veni son (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, mu ssels, sea-urchins, frogs, turtles, snail, and 
related products (Officia l Gazette, No. 53/91). 
3. Milk, Dairy Products, and Pure Cultures  
The regulation on the quality of milk, dairy pr oducts, and pure cultures (Official Gazette, 
No. 53/91). 
4. Ice-Cream, Ice-Cream Prod ucts, and Frozen Desserts  
The regulation on the quality of milk, dairy pr oducts, and pure cultures (Official Gazette, 
No. 53/91. 
5.  Eggs and Egg Products  
The regulation on the quality of eggs and egg products (Official Gazette, No. 53/91). 
6.  Fruit, Vegetables, Mushrooms and Related Products  
The regulation of the quality of  fruit, vegetables, mushrooms and related products (Official 
Gazette, No. 53/91). 
7. Coffee, Coffee Products, and Produ cts Made of Coffee Substitutes  
The regulation of the quality of  coffee, coffee products, and pr oducts made of coffee substitutes 
(Official Gazette, No. 53/91). 
8. Teas  
The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
9. Condiments, Condiment Extr acts, and Condiment Mixtures  
The regulation of the quality of  condiments, condime nts extracts, and condiment mixtures 
(Official Gazette, No. 53/91). 
10. Mustard  
The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
11. Common Salt and Brining Salt  
The regulation of the quality of salt used as food (Official Gazette, No. 53/91). 
12. Soups, Soup Concentrates, Sauce Concentrates and Food Supplements  
The regulation of the quality of soups, soup concentrates, sauce c oncentrates and food 
supplements (Official Gazette, No. 53/91). 
13. Leaven, Baking Powder, Pudding Powder  
The regulation of the quality of leaven (Official Gazette, No. 53/91); The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
14. Additives Used in Production of Food  
The regulation of the quality of additives for food products. WT/ACC/SPEC/HRV/6/Rev.1 
Page 86  
 
 Product Description 
15. Gain, Baking Products, Past a, and Deep Frozen Pasta  
The regulation of the quality of grain, baking pr oducts, pasta, and deep frozen pasta (Official 
Gazette, No. 53/91). 
16. Biscuits and Biscuit-Related Products  
The regulation of the quality of biscuits a nd biscuit-related products  (Official Gazette, 
No. 53/91). 
17. Food Oils and Vegetable Fats, Margarin e, Mayonnaise and Other Related Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise and other related 
products (Official Gazette, No. 53/91); The regulation of the quality of olive oil a nd blended olive oil (Offi cial Gazette, No. 53/91). 
18. Sugar and Re lated Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise, sugar, honey and 
sugar-related produc ts (Official Gazette, No. 53/91). 
19. Honey and Other Apiary Products  
The regulation of the quality of honey and other apiary products and regul ations on methods of 
quality control of honey and other apiary products (Official Ga zette, No. 53/91). 
20. Cacao Products, Creams, Candies and Re lated Products  
The regulation of the quality of cacao products , chocolate-related produc ts, candies (Official 
Gazette, No. 53/91). 
21.  Alcoholic Beverages  
The regulation of the quality of alcoholi c beverages (Official Gazette, No. 53/91). 
22. Beer  
The regulation of the quality of alcoholic a nd non-alcoholic beverage s (Official Gazette, 
No. 53/91). 
23. Non-Alcoholic Beverages  
The regulation of the quality of non-alcoholic be verages and soda-water  (Official Gazette, 
No. 23/97). 
24. Vinegar and Acetic Acid  
The regulation of the quality of vinegar and d iluted acetic acid (Official Gazette, No 53/91). 
25. Products Rich in Protein and Products Made of Bland of Proteins, Products for Food Industry  
The regulation of the quality of products rich in protein and products made of bland of proteins, 
products for food industry (Off icial Gazette, No 53/91). 
26. Fodder and Pet-Food  
The regulation of the quality of f odder (Official Gazette, No 53/91). 
27. Fuel Oils  
The rules regulating the quality of fuel oils (Official Gazette No. 53/91). 
28. Jet Engine Fuels  
The rules regulating the quality of jet en gine fuels (Official Gazette No. 79/95); 
29. Pure bred breeding heifers  
Law on Cattle Breeding (Off icial Gazette No. 70/97) 
 
  WT/ACC/SPEC/HRV/6/Rev.1 
 Page 87 
 
 
 
Table 7  
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/6/Rev.1 
Page 88  
 
 
Table 8
 
Products subject to phytosanitary measures  
 
Tariff Number Plants and Plant Product Description 
06.01 - 06.04 Living trees and other plants, bul bs, roots and similar, cutted 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/6/Rev.1
 Page 89Table 9:  Status of legislation on In tellectual Property in Croatia (December 1998)  
 
Parts Sections Articles Compliance already existing pursuant to th e laws in force Compliance to be achieved pursuant to legisla tion:
   YES  
(indication of app. law) NO 
(indication of the reason) in preparation;  to be 
adopted early 1999 preparation of which 
will start in early 1999
1 2 3 4 5 6 7 
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS 
Article 1    
Article 2 NO (2.1) RC ICT 
Article 3   
Article 4 NO (4.1) 
Article 5 
Article 6 
Article 7  
PART I  
GENERAL PROVISIONS 
AND BASIC PRINCIPLES  
Article 8  
   
Article 9  NO  (9.1.; 9.2.) MACL 
Article 10 YES (CL)   
Article 11  NO (11.1.) MACL 
Article 12 YES (CL)    
PART II 
STANDARDS 
CONCERNING 
THE 
AVAILABILITY, 
SCOPE AND USE Article 13 YES (CL)    
Section 1: 
COPYRIGHT AND RELATED 
RIGHTS 
Article 14  NO (14.1.;14.2.;14.3.) MACL NCL 
Article 15 YES (IPL)    
Article 16  NO (16.1.) NTL  
Article 17  NO (17.2.) NTL  OF 
INTELLECTUAL 
PROPERTY 
RIGHTS 
Article 18 YES (IPL)    
Article 19 YES (IPL)    
Article 20 YES (IPL)     
  
Section 2: 
TRADEMARKS 
Article 21  NO (21.1.) NTL  
Section 3: GEOGRAPHICAL ... Article 22-24  NO (22.1.) NLGI   
Section 4: INDUSTRIAL DESIGN Article 25-36 YES (IPL)     
 WT/ACC/SPEC/HRV/6/Rev.1 
Page 90 Parts Sections Articles Compliance already existing pursuant to th e laws in force Compliance to be achieved pursuant to legisla tion:
   YES  
(indication of app. law) NO 
(indication of the reason) in preparation;  to be 
adopted early 1999 preparation of which 
will start in early 1999
Article 27 YES (IPL)    
Article 28  NO (28.1.) NPL  
Article 29 YES (IPL)    
Article 30 YES (IPL)    
Article 31  NO (31.1.) NPL  
Article 32 YES (IPL)    
Article 33 YES (IPL)     
  
Section 5: 
PATENTS 
  
Article 34  NO (34.1.) NPL   
Section 6: LAYOUT-DESIGNS ... Article 35-38  NO (35.1.)  NLIC 
Section 7: PROTECTION OF ...  Article 39 YES (LPDS)     
Section 8: CONTROL OF ... Article 40 YES (IPL, LO)    
Section 1: 
GENERAL OBLIGATIONS Article 41 YES (LCP)    
Section 2: 
CIVIL AND ADMINISTRATIVE 
PROCEDURES AND REMEDIES  
Article 42-49 YES (LCP) 
(IPL, CL,LPPV, LO)    
Section 3: 
PROVISIONAL MEASURES Article 50 YES (LE)    
Section 4: 
SPECIAL REQUIREMENTS 
RELATED TO BORDER 
MEASURES  
Article 51-60 
   
NO (51.1.)  
NTL, MACL  
CR     
PART III 
ENFORCEMENT OF 
INTELLECTUAL PROPERTY 
RIGHTS 
Section 5: 
CRIMINAL PROCEDURES Article 61 YES (LPP, PL)    
PART IV 
ACQUISITION AND MAINTENANCE OF  
INTELLECTUAL PROPERTY  
RIGHTS AND RELATED INTER- 
PARTES PROCEDURES   
 
Article 62  
YES  
(IPL, LPPV, LAP, LAD)     
  WT/ACC/SPEC/HRV/6/Rev.1
 Page 91Parts Sections Articles Compliance already existing pursuant to th e laws in force Compliance to be achieved pursuant to legisla tion:
   YES  
(indication of app. law) NO 
(indication of the reason) in preparation;  to be 
adopted early 1999 preparation of which 
will start in early 1999
PART V 
DISPUTE PREVENTION AND 
SETTLEMENT   
Article 63-64     
PART VI 
TRANSITIONAL 
ARRANGEMENTS   
Article 65-67  
- 
    
PART VII 
INSTITUTIONAL 
ARRANGEMENTS; 
FINAL PROVISIONS   
 
Article 68-73  
 
-    
LEGEND (KEY) 
CL Copyright Law OGFY3  19/78; 24/86; 21/90  NN 4 53/91; 58/93 
MACL Modified and Amended Copyright Law 
NCL New Copyright Law 
IPL Industrial Property Law OGFY  34/ 81; 3/90; 20/90  NN 53/91; 19/92; 61/92 
NTL New Trademark Law 
NLGI New Law on Geographical Indications 
NPL New Patent Law 
NLIC New Law on Layout-Designs of Integrated Circuits LPDS Law on the Protection of  Data Secrecy   NN 108/96 
LO Law on Obligatory Relations  OGFY 29/78  NN 53/91; 73/91; 111/93; 3/94; 107/95; 7/96 
LCP Law on Civil Procedure  OGFY 4/77  NN 53/91; 91/92 
LPPV Law on the Protection of  Plant Varieties   NN 131/97 
LE Law on Enforcement    NN 57/96 
CR Customs Regulations 
LPP Law on Penal Procedure   NN 110/97 
PL Penal Law   NN 110/97 
LAP Law on General Administrative Procedure  OGFY 47/86,  NN 53/91 
LAD Law on Administrative Disputes  OGFY 4/77  NN 53/91; 9/92; 77/92 
 
__________ 
                                                      
3 Official Gazette of Former Yugoslavia.  
4 Official Gazette of the Republic of Croatia.