WORLD TRADE
ORGANIZATIONG/VAL/N/1/HRV/1
16 January 2002
(02-0206)
Committee on Customs Valuation Original:  English
NOTIFICATION UNDER ARTICLE 22 OF THE
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
CROATIA
The following communication1, dated 17 December 2001, has been received from the
Permanent Mission of Croatia.
_______________
In accordance with the Decision of the Committee on Customs Valuation of 12 May 1995, I
have the honour to notify the Committee on Customs Valuation of the legislation of the Republic of
Croatia relevant to customs valuation. It consists of the following four parts:
Part I.  Customs Law – Title II – Chapter 3: Value of the Goods for the Customs purpose
Part II.  Decree on Implementation of the Customs Law – Caption III: Customs Value
Part III.  Customs Regulation for determining the Customs value according to the Customs Law of
the Republic of Croatia
Part IV.  Declaration of Customs Value
                                                     
1 In English only.G/VAL/N/1/HRV/1
Page 2
CUSTOMS LAW - excerpt2
TITLE II
CHAPTER 3
VALUE OF GOODS FOR THE CUSTOMS PURPOSES
Article 29
The provisions of this Chapter shall determine th e customs value of goods in order to apply the
Customs Tariff of the Republic of Croatia.
Article 30
The terms below have the following meanings:
a) “customs value of imported goods” means the value of goods for the purposes of levying ad
valorem duties of customs on imported goods;
b) “country of importation” means customs territory of the Republic of Croatia;
c) “produced” includes grown, manufactured and mined.
d) “identical goods” means goods, which are the same in all respects, including physical
characteristics, quality and reputation. Minor differences in appearance would not preclude
goods otherwise conforming to the definition from being regarded as identical;
e) “similar goods” means goods which, although not alike in all respects, have like
characteristics and like component materials which enable them to perform the same
functions and to be commercially interchangeable. The quality of the goods, their reputation
and the existence of a trademark are among the factors to be considered in determining
whether goods are similar;
f) “unit price” at which the imported goods or identical or similar imported goods are sold in the
greatest aggregate quantity means the price at which the greatest number of units is sold in
sales to persons who are not related to the persons from whom they buy such goods at the first
commercial level after importation at which such sales take place.
g) In this Chapter “goods of the same class or kind” means goods which fall within a group or
range of goods produced by a particular industry or industry sector, and includes identical or
similar goods.
The terms “identical goods” and “similar goods” do not include, as the case may be, goods
which incorporate or reflect engineering, development, artwork, design work, and plans and sketches
for which no adjustment has been made under  Article 38, paragraph 1 (b), item 4 because such
elements were undertaken in the country of importation;
                                                     
2  Please note that the following is an unofficial English translation of the original Croatian text and as
such should be used for purpose of reference only.
    Published in Official Gazette 78/99, Amendments 94/99, 73/00G/VAL/N/1/HRV/1
Page 3
Goods shall not be regarded as “identical goods” or “similar goods” unless they were
produced in the same country as the goods being valued;
Goods produced by a different person shall be taken into account only when there are no
identical goods or similar goods, as the case may be, produced by the same person as the goods beingvalued.
For the purposes of this Chapter, persons shall be deemed to be related only if:
a) they are officers or directors of one another’s businesses;b) they are legally recognised partners in business;c) they are employer and employee;d) any person directly or indirectly owns, control or holds 5 per cent or more of the outstanding
voting stock or shares of both of them;
e) one of them directly or indirectly controls the other;f) both of them are directly or indirectly controlled by a third person;
g) together they directly or indirectly control a third person; or
h) they are members of the same family.
Persons who are associated in business with one another in that one is the sole agent, sole
distributor or sole concessionaire, however described, of the other shall be deemed to be related for
the purposes of this Chapter if they fall within the criteria of paragraph 4.
Article 31
The customs value of imported goods shall be the transaction value, that is the price actually
paid or payable for the goods when sold for export to the Republic of Croatia adjusted in accordancewith provision of Article 38, provided:
a) that there are no restrictions as to the disposition or use of the goods by the buyer other than
restriction which:
i) are imposed or required by Croatian law or by the public authorities;
ii) limit the geographical area in which the goods may be resold; or
iii) do not substantially affect the value of the goods;
b) that the sale or price is not subject to some condition or consideration for which a value
cannot be determined with respect to the goods being valued;
c) that no part of the proceeds of any subsequent resale, disposal or use of the goods by the
buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be
made in accordance with the provision of Article 38; and
d) that the buyer and seller are not related, or where the buyer and seller are related, that the
transaction value is acceptable for customs purposes under the provision of paragraph 2.G/VAL/N/1/HRV/1
Page 4
In determining whether the transaction value is acceptable for the purpose of paragraph 1, the
fact that the buyer and the seller are related within the meaning of Article 30 shall not in itself be
grounds for regarding the transaction value as unacceptable. In such case the circumstances
surrounding the sale shall be examined and the tran saction value shall be accepted provided that the
relationship did not influence the price. If, in the light of information provided by the importer orotherwise, the customs administration has grounds for considering that the relationship influenced the
price, it shall communicate its grounds to the importer and the importer shall be given a reasonable
opportunity to respond. If the importer so requests, the communication of grounds shall be in writing.
In a sale between related persons, the transaction value shall be accepted and the goods
valued in accordance with the provision of paragraph 1 whenever the importer demonstrates that such
value closely approximates to one of the following occurring at or about the same time:
- the transaction value in sales to unrelated buyers of identical or similar goods for export to the
Republic of Croatia;
- the customs value of identical or similar goods as determined under the provisions of
Article 35;
- the customs value of identical or similar goods as determined under the provisions of
Article 36;
In applying the foregoing tests, due account shall be taken of demonstrated differences in
commercial levels, quantity levels, the elements enumerated in Article 38 and costs incurred by the
seller in sales in which the seller and the buyer are not related that are not incurred by the seller in
sales in which the seller and the buyer are related.
The tests set forth in paragraph 3 are to be used at the initiative of the importer and only for
comparison purposes. Substitute values may not be established under the provisions of paragraph 3
The price actually paid  or payable is the total payment made or to be  made by the buyer to or
for the benefit of the seller for the imported goods and includes all payments made or to be made as
condition of sale of the imported goods by the buyer to the seller or by the buyer to a third party to
satisfy an obligation of the seller. The payment need not necessarily take the form of transfer ofmoney. Payment may be made by way of letters of credit or negotiable instrument and may be made
directly or indirectly.
Activities, including marketing activities, undertaken by the buyer on his own account, other
than those for which an adjustment is provided in Article 38, are not considered to be an indirectpayment to the seller, even though they might be regarded as of benefit to the seller or have been
undertaken by agreement with the seller, and their costs shall not be added to the price actually paid or
payable in determining the customs value of imported goods.
Article 32
If the customs value of the imported goods cannot be determined under the provisions of
Article 31, the customs value shall be the transaction value of identical goods sold for export to the
Republic of Croatia and exported at or about the same time as the goods being valued.
In applying this Article, the transaction value of identical goods in a sale at the same
commercial level and in substantially the same quantity as the goods being valued shall be used to
determine the customs value.G/VAL/N/1/HRV/1
Page 5
Where no such sale is found, the transaction value of identical goods sold at a different
commercial level and/or in different quantities, adjusted to take account of differences attributable to
commercial level and/or to quantity, shall be used, provided that such adjustments can be made on the
basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the
adjustment, whether the adjustment leads to an increase or a decrease in the value.
An adjustment referred to in Article 38, paragraph 1 a) items 4-6 shall be made to take
account of significant differences in the costs and charges between the imported goods and the
identical goods in question arising from differences in distances and modes of transport.
If, in applying this Article, more then one transaction value of identical goods is found, the
lowest such value shall be used to determine the customs value of the imported goods.
Article 33
If the customs value of the imported goods cannot be determined under the provisions of
Article 31 and 32, the customs value shall be the transaction value of similar goods sold for export tothe Republic of Croatia and exported at or about the same time as the goods being valued.
In applying this Article, the transaction value of similar goods in a sale at the same
commercial level and in substantially the same quantity as the goods being valued shall be used to
determine the customs value.
Where no sale referred to in Paragraph 2 of this Article is found, the transaction value of
similar goods sold at a different commercial level and/or in different quantities, adjusted to take
account of differences attributable to commercial level and/or to quantity, shall be used, provided that
such adjustments can be made on the basis of demonstrated evidence which clearly establishes thereasonableness and accuracy of the adjustment, whether the adjustment leads to an increase or a
decrease in the value.
An adjustment referred to in Article 38, paragraph 1.a), item 4-6 shall be made to take
account of significant differences in the costs and charges between the imported goods and the similar
goods in question arising from differences in distances and modes of transport.
If, in applying this Article, more than one transaction value of similar goods is found, the
lowest such value shall be used to determine the customs value of the imported goods.
Article 34
If the customs value of imported goods cannot be determined under the provisions of
Articles 31, 32 and 33, the customs value shall be determined under the provisions of Article 35.
When the customs value cannot be determined under Article 35, the provisions of Article 36
shall be applied, except in the cases when, at the request of the importer, the order of application ofArticle 35 and 36 shall be reversed.
Article 35
If the imported goods or identical or similar imported goods are sold in the Republic of
Croatia in the condition as imported, the customs value of the imported goods under the provisions of
this Article shall be based on the unit price at which the imported goods or identical or similar
imported goods are sold in the greatest aggregate quantity, at or  about the time of importation of theG/VAL/N/1/HRV/1
Page 6
goods being valued, to persons who are not related to the persons from whom they buy such goods,
subject to deductions for the following:
a) either the commissions usually paid or agreed to be paid or the additions usually made for
profit and general expenses in connection with sales in Republic of Croatia of imported goodsof the same class or kind;
b) the usual costs of transport and insurance and associated costs incurred within the Republic of
Croatia;
c) the customs duties and other internal taxes payable in the Republic of Croatia by reason of the
importation or sale  of the goods.
If neither the imported goods nor identical nor similar imported goods are sold at or about the
time of importation of the goods being valued, the customs value shall, subject otherwise to the
provision of paragraph 1, be based on the unit price at which the imported goods or identical or
similar imported goods are sold in the Republic of Croatia in the condition as imported at the earliestdate after the importation of the goods being valued but before the expiration of 90 days after such
importation.
If neither the imported goods nor identical nor similar imported goods are sold in the
Republic of Croatia in the condition as imported, then, if the importer so requests, the customs valueshall be based on the unit price at which the imported goods, after further processing, are sold in the
greatest aggregate quantity to persons in the Republic of Croatia who are not related to the persons
from whom they buy such goods, due allowance bein g made for the value added by such processing
and the deductions provided for in paragraph 1.
Article 36
The customs value of imported goods under the provisions of this Article shall be based on a
computed value. Computed value shall consist of the sum of:
a) the cost or value of materials and fabrication or other processing employed in producing the
imported goods;
b) an amount for profit and general expenses equal to that usually reflected in sales of goods of
the same class or kind as the goods being valued which are made by producers in the country
of exportation for export to the Republic of Croatia;
c) the cost or value of all other expenses under Article 38 paragraph 1. a) item 4, 5 and 6.
No Member may require or compel any person not resident in own territory to produce for
examination, or to allow access to, any account or other record for the purposes of determining a
computed value.
Information supplied by the producer of the goods for the purposes of determining the
customs value under the provision of this Article may be verified in another country by the authorities
of the Republic of Croatia with the agreement of the producer and provided they give sufficient
advance notice to the government of the country in question and the latter does not object to theinvestigation.G/VAL/N/1/HRV/1
Page 7
Article 37
If the customs value of the imported goods cannot be determined under the provisions of
Articles 31 through 36, inclusive, the customs value shall be determined using reasonable means
consistent with the principles and general provisions of this Chapter and of the Agreement onImplementation of Article VII of GATT 1994 and on the basis of data available in the Republic of
Croatia.
No customs value shall be determined under the provisions of this Article on the basis of:
a) the selling price in the Republic of Croatia of goods produced in the Republic of Croatia;
b) a system which provides for the acceptance for customs purposes of the higher of two
alternative values;
c) the price of goods on the domestic market of the country of exportation;d) the cost of production other than computed values which have been determined for identical
or similar goods in accordance with the provision of Article 36;
e) the price of goods for export to a country other than the Republic of Croatia;f) minimum customs values; org) arbitrary or fictitious values.
If the importer so requests, the importer shall be informed in writing of the customs value
determined under the provision of this Article and the method used to determine such value.
Article 38
In determining the customs value under the provisions of Article 31, there shall be added to
the price actually paid or payable for the goods:
a) the following, to the extent that they are incurred by the buyer but are not included in the
price actually paid or payable for the goods:
i) commissions and brokerage, except buying commissions;
ii) the cost of containers which are treated as being one for customs purposes with the
goods in question;
iii) the cost of packing whether for labour or materials;
iv) the cost of transport of imported goods to the port or place of importation in the
Republic of Croatia;
v) loading, unloading and handling charges asso ciated with the transport of the imported
goods to the port or place of importation;
vi) the cost of insurance to the port or place of importation in the Republic of Croatia.
b) the value, apportioned as appropriate, of the following goods and services where supplied
directly or indirectly by the buyer free of charge or at reduced cost for use in connection with
the production and sale for export of the imported goods, to the extent that such value has notbeen included in the price actually paid or payable:
i) materials, components, parts and similar items incorporated in the imported goods;
ii) tools, dies, moulds and similar items used in the production of the imported goods;G/VAL/N/1/HRV/1
Page 8
iii) materials consumed in the production of the imported goods;
iv) engineering, development, artwork, design work, and plans and sketches undertaken
elsewhere than in the Republic of Croatia and necessary for the production of the
imported goods;
c) royalties and licence fees related to the goods being valued that the buyer must pay, either
directly or indirectly, as a condition of sale of the goods being valued, to the extent that such
royalties and fees are not included in the price actually paid or payable;
d) the value of any part of the proceeds of any subsequent resale, disposal or use of the imported
goods that accrues directly or indirectly to the seller.
Additions to the price actually paid or payable shall be made under this Article only on the
basis of objective and quantifiable data.
No additions shall be made to the price actually paid or payable in determining the customs
value except as provided in this Article.
In this Chapter, the term “buying commissions” means fees paid by an importer to an
importer’s agent for the service of representing the importer abroad in the purchase of the goods being
valued.
Notwithstanding paragraph 1. c) of this Article:
a) charges for the right to reproduce the imported goods in the Republic of Croatia shall not be
added to the price actually paid or payable for the imported goods in determining the customs
value; and
b) payments made by buyer for the right to distribute or resell the imported goods shall not be
added to the price actually paid or payable for the imported goods if such payments are not a
condition of sale for export of goods to the Republic of Croatia.
c) payments made by buyer for the right of presentation or distribute the cinematographic
recording shall not be added to the price actually paid or payable for the imported goods.
Article 39
Provided that they are shown separately from the price actually paid or payable, the following
shall not be included in the customs value:
a) charges for transport of goods after their arrival at the place of introduction into the customs
territory of the Republic of Croatia;
b) charges for construction, erection, assembly, maintenance or technical assistance, undertaken
after importation on imported goods such as industrial plant, machinery or equipment;
c) charges for interest under a financial arrangement entered into by the buyer and relating to the
purchase of imported goods, irrespective of whether the finance is provided by the seller or
another person, provided that the financing arrangement has been made in writing and whererequired, the buyer can demonstrate that:
i) such goods are actually sold at the price declared as the price actually paid or
payable, andG/VAL/N/1/HRV/1
Page 9
ii) the claimed rate of interest does not exceed the level for such transactions prevailing
in the country where, and at the time when, finance was provided;
d) charges for the right to reproduce imported goods in the Republic of Croatia;
e) buying commissions;
f) import duties or other charges payable in the Republic of Croatia by reason of the importation
or sale of the goods.
Article 40
In determining the customs value of goods, of which the agreed price at the moment of
determination of the customs value has not be paid, the price which should have been paid to settle the
debt shall as a rule be considered as the customs value.
In establishing the customs value of goods, all price reductions and cash discounts shall be
taken into consideration, providing that they were already determined at the time of determining the
customs value and that they will be effected within the prescribed period of time following the import
of goods.
Article 41
The customs value of goods imported without being on sale shall be determined pursuant to
Article 32 to 37 of this Customs Law.
The customs value of temporarily imported goods shall be determined pursuant to Article 32
to 37 of the present Law.
Should the imported goods be damaged before being released for free circulation, the customs
value shall be determined by reducing the appropriate agreed price by the percentage of damage. The
percentage of damage shall be assessed by the customs office. In the event that on the basis of a credit
entry a new price (in accordance with the conditions of Article 1 of the present Law) has been agreed
upon, that price shall be taken as the new customs value.
Article 42
If, in the course of determining the customs value of imported goods, it becomes necessary to
delay the final determination of such customs value, the importer of the goods shall nevertheless beable to withdraw them from customs if, where so required, the importer provides sufficient guarantee
in the form of surety, a deposit or some other appropriate instrument, covering the ultimate payment
of customs duties for which the goods may be liable.
Article 43
The customs value of carrier media bearing data or instructions for data processing equipment
(hereinafter “software” only) shall not include the price or the value of the software, provided that
such price or value of the software is distinguished from the price or the value of the carrier media.
The term “carrier media” from Paragraph 1 of this Article shall not mean integrated circuits,
semiconductors and similar equipment or products containing such circuits or equipment;
The term "data or instructions" shall not mean sound recordings.G/VAL/N/1/HRV/1
Page 10
Article 44
The customs office may in a customs procedure ask the declarant to provide all necessary data
for determination of the customs value pursuant, to the Articles 31 to 37 of the present Law.
Nothing in this Chapter shall be construed as restricting or calling into question the rights of
customs administrations to satisfy themselves as to the truth or accuracy of any statement, document
or declaration presented for customs valuation purposes.
Upon written request, the importer shall have the right to an explanation in writing from the
customs administration as to how the customs value of the imported goods was determined
Laws, regulations and Constitutional Court rulings related to the regulations on customs
valuation shall be published in accordance with the Article X of the GATT 1994.
The decisions and rulings of general nature made by competent authorities as well as acts of
the Minister of Finance related to the Customs Directorate and in connection with customs valuation,are published in the official journal of the Customs Directorate.
Article 45
All information which is by nature confidential or which is provided on a confidential basis
for the purposes of customs valuation shall be treate d as strictly confidential by authorities concerned
who shall not disclose it without the specific permission of the person or government providing such
information, except to the extent that it may be required to be disclosed in the context of judicial
proceedings.
Article 46
If the invoice value is stated in a foreign cu rrency, the value of the foreign currency shall,
consistent with law on foreign exchange transactions, be rendered into domestic currency according to
the effective exchange rate on the day of occurrence of the obligation to pay customs duty.
Article 47
Customs value for the exported goods is the transaction value of the goods delivered on the
Croatian boarder.
Article 48
The Government of the Republic of Croatia shall issue regulations defining in detail
conditions and manner of application of Articles 29 to 47 of this LawG/VAL/N/1/HRV/1
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Decree on Implementation of the Customs Law3
CAPTION III: CUSTOMS VALUE
CHAPTER I 
DETERMINING THE CUSTOMS VALUE
Article 33
The customs value is the transaction value in accordance with Article 31 of the Customs Law.
It is the price stipulated, actually paid or payable that fulfils conditions prescribed in Article 31,
paragraph 1 of the Customs Law and harmonised with Article 38 of the Customs Law, if goods aresold for export because of the import into the customs territory of the Republic of Croatia.
The price actually paid or payable implicitly  includes all payments that the buyer or some
other person had to pay or shall pay for the imported goods to the seller or in his favour. The payment
may be fulfilled directly or indirectly, in cash or by other means of payment.
If it is impossible to determine the customs value according to Article 31 of the Customs Law,
the customs value is determined congruently with Articles from 32 to 37 of the Customs Law.
For the purposes of determining the customs value in accordance with Article 31 of the
Customs Law, for the goods for which the contracted price has not been paid yet at the moment of
valuation, the price shall be accepted that would othe rwise be paid for the fulfilment of obligations.
Article 34
When the part of some bigger consignment of identical goods bought within the same
transaction has been declared for the purpose of releasing goods in free circulation in accordance with
Article 31 of the Customs Law, the price that is actually paid or payable is represented by the part of
the total price that is analogous to the ratio between the quantity of declared goods and the total
quantity of goods that were bought.
The aliquot apportionment of the price actually paid or payable should be carried out as well
before the goods were released in free circulation if the goods that were subject of the valuation were
partially lost or damaged.
Article 35
If the price of goods being valued that is actually paid or payable contains the amount of
national duties belonging to the country of origin or exporting country, that amount shall not be added
to the Customs value of the goods if it can be pr oved to the Customs Office that those goods were
exempted or shall be exempted from those duties in the favour of the buyer.
Article 36
For the purposes of Article 31 of the Customs Law, the fact that the goods subject to sale are
declared for the release for free circulation shall be considered as the adequate indicator that those
                                                     
3 Please note that the following is an unofficial English translation of the original Croatian text and as
such should be used for purpose of reference only.
Published in Official Gazette 144/99
Amendments 49/2000, 77/2000,G/VAL/N/1/HRV/1
Page 12
goods are intended for export in the Customs territory of the Republic of Croatia. In the case when the
goods were resold several times before determining their Customs value, the last sale effectuated
before their import in the customs territory of the Republic of Croatia or the last sale which took place
in the Republic of Croatia before the goods were released for free circulation shall be deemed as such
indicator.
In the implementation of paragraph 1 of this Article, Articles 55, 58, and 56 of this Decree
apply accordingly.
If the goods are used in another country from the moment of their sale to the moment they
were released in free circulation, the Customs value may not be the transaction value.
The buyer does not have to fulfil any conditions apart from being a party in the sales contract.
Article 37
When establishing whether limitations stated in Article 31, paragraph 1 item a) of the
Customs Law are in effect, the actual purchasing transaction needs to be considered.
Article 38
When in accordance with Article 31, paragraph 1, item b) of the Customs Law the Customs
Office establishes that the sale or price of the imported goods depends on some conditions or
obligations with respect to the goods being valued, for which a value can be determined, such value is
considered to be the indirect payment made from the buyer to the seller. Therefore, it shall be
considered as the part of the price actually paid or payable.
Paragraph 1 of this Article does not apply if the aforementioned conditions and obligations
are related with transactions mentioned in Article 31, paragraph 7 of the Customs Law.
As conditions and obligations from the purchasing transaction due to which the transaction
value cannot be accepted as the customs value, are considered cases in which:
a) the seller establishes the price of the imported goods on condition that the buyer will purchase
certain quantities of other goods;
b) the price of the imported goods is dependent upon the price at which the buyer sells other
goods to the seller of the imported goods.
c) the price of the imported goods is established on the basis of the form of payment that is not
connected with the imported goods.
Article 39
Operations mentioned in Article 38, paragraph 2 of this Decree refer to all transactions
connected with advertising of the goods and their sales promotion, as well as all transactions
connected with securities and guarantees made for them.
Article 40
The price that was stipulated, actually paid or payable can be accepted even in the cases
described in Article 31, paragraph 1, item c) of the Customs Law, if the price can be adjusted in
accordance with Article 38, paragraph 1, item d) of the Customs Law.G/VAL/N/1/HRV/1
Page 13
Article 41
In the sense of Article 30, paragraph 4, item e) of the Customs Law, it shall be considered
such relationship where one person controls another by influencing his business transactions in such a
manner, that this person cannot be capable to form the price and estimates independently.
The licence agreements as such shall not be deemed as mutual relationship.
Article 42
For determining the Customs value in accordance with Articles 32 and 33 of the Customs
Law, the transaction value of identical or similar goods is used in a purchase and sale transactionperformed at the same commercial level and in substantially the same quantity that have the goods
being valued. If no such sale transaction is found, the transaction value for identical or similar goods
sold at a different commercial level and / or in different quantities is taken, with respect to the
following schedule:
a) the same commercial level, but in different quantity,
b) different commercial level, but in substantially the same quantities, andc) different commercial level and in different quantities. Such transaction value should be adjusted for the differences that occurred due to different
commercial levels of sale and / or quantities, whenever the documents submitted enable so regardless
of whether they cause the increase or decrease of the value.
If the transaction value contains certain costs in accordance with Article 38, paragraph 1,
item a), indents 4, 5 and 6 of the Customs Law, all major differences between the costs of imported
goods and costs of appropriate identical or similar goods that incurred because of the difference in
distances and means of transport used, has to be taken into consideration during the adjustment.
Where in accordance with that Article more transaction values of the identical or similar
goods are established, the lowest among those values shall be used for determining the Customs valueof the imported goods.
When implementing this Article, the transaction value of the goods manufactured by a third
person shall be taken into consideration only in the case if the Customs Office does not have
transaction values of the identical or similar goods produced by the same person who produced thegoods being valued.
The transaction value of imported identical or similar goods is the earlier already accepted
customs value in accordance with Article 31 of the Customs Law and adjusted as prescribed in Article
38, paragraph 1, item a), indents 4, 5 and 6 and Article 32, paragraph 3 of the Customs Law.
Article 43
When determining the unit value in accordance with Article 35, paragraph 2 of the Customs
Law, the cases where the goods were sold in the Republic of Croatia to those persons who directly orindirectly, free of charge or at a discount price supply products or perform services mentioned in
Article 38, paragraph 1, item b) indent 4 of the Customs Law cannot be used, that are connected with
the production or sale of imported goods.G/VAL/N/1/HRV/1
Page 14
Pursuant to Article 35, paragraph 2 of the Customs Law, as the moment of the first sale
following the importation is considered the day on which the sale of imported goods or imported
identical or similar goods occurred in a quantity large enough to determine the unit price.
Article 44
The customs value in accordance with Article 36 of the Customs Law (the calculated value),
is as a rule determined on the basis of data that are at the disposal to the persons located or residing in
the Republic of Croatia.
The Customs Directorate of the Republic of Croatia may check in a foreign country data
given about the elements needed to calculate the value that were either stated by the manufacturer orlodged by the declarant for the purpose of valuation, with the consent of the manufacturer previously
obtained. However, only if the empowered body in foreign country was informed about it in due time
and if that body does not dispute such checking procedure.
When data were used for valuation purposes other than those stated by the manufacturer or
submitted by the declarant, with respect to Article 16 of the Customs Law, at the request of the
declarant the Customs Directorate of the Republic of Croatia informs him about the data used, their
sources and calculations based on them.
As the value of materials and costs, in accordance with Article 36, paragraph 1, item a) of the
Customs Law, the costs mentioned in Article 38, pa ragraph 1, item a), indents 2 and 3 of the Customs
Law are also calculated in the customs value.
As the value of costs and expenditures mentioned in Article 36, paragraph 1, item c), indent 2
of the Customs Law, are considered costs, expenditures of goods and operations determined inArticle 38, paragraph 1, item b), indents 1, 2, 3 and 4 of the Customs Law if they were finished or
performed directly or indirectly by the buyer a nd connected with the production of imported goods.
The value of the operations mentioned in Article 38, paragraph 1, item b), indent 4 of the
Customs Law, that were carried out in the customs territory of the Republic of Croatia, is included in
the Customs value only if they are charged to the manufacturer.
Pursuant to Article 36, paragraph 1, item b) of the Customs Law, as the value of the costs
calculated are direct or indirect costs arising from the production or sale of goods for export, which
are not included in Article 36, paragraph 1, item a) of the Customs Law.
Article 45
The methods used in accordance with Article 37 of the Customs Law must to the largest
possible extent correspond to the methods from Articles 31, 32, 33, 35 and 36 of the Customs Law.
The aforementioned methods may be used adjusted in a manner that complies with the provisions of
Article 37, paragraph 1 of the Customs Law.
Article 46
If the packing material mentioned in Article 38, paragraph 1, item a), indent 2 of the Customs
Law is intended for the repeated use in the subsequent imports, at the request of the declarant all costsshall be proportionally apportioned into the Customs value.G/VAL/N/1/HRV/1
Page 15
Article 47
As the place of the entry of goods into the customs territory is considered:
a) in the railroad and road traffic: the Customs border crossingb) in the marine transport: the unloading portc) in the traffic by air: the first destination airport, andd) for the goods being transported by other means: the place where the goods crossed the
Customs border by land.
Article 48
If it was stipulated to deliver the goods on the parity “free to destination in the customs
territory” and the amount of transport costs from the place of entering the customs territory to theplace of delivery cannot be established from the contract and other documents lodged, the total
amount of transport costs shall be included in the customs value.
If the goods were delivered at the unit price on parity “free to destination in the customs
territory” and that corresponds to the value at the place of entry, the costs related to the transport ofgoods within the customs territory shall not be deducted from that value. The deduction shall be taken
into consideration only if it can be proved to the Customs Office that the value based on “free to
destination in the customs territory” is lower than the unit value of the goods based on parity “free to
destination in the customs territory”.
If the transport was carried out free of charge or with buyer's own vehicle, the customs value
shall include costs to the place of entry into the customs territory, determined on the basis of the usual
tariff for the same mode of transport. The declarant must submit evidence for costs that were
calculated in such manner.
If there are several types of goods within one consignment, the total amount of transport,
insurance and delivery costs must be calculated apportioned to the value of particular type of goods.Insurance costs for the imported goods shall be included in the customs value in their entirety.
Postal fees charged for goods transported within the post traffic are in their entirety, up to the
place of their destination, included in the customs value. Any possible additional postal fees
calculated within the customs territory are excluded.
The fees mentioned in paragraph 6 of this Article shall not be included in the customs value
when the import of goods is of the non-commercial nature.
Paragraphs 5 and 6 of this Article do not apply to the emergency postal services.
Article 49
The buyer may, pursuant to Article 38, paragraph 1, item b), indents 1, 2 and 3 of the
Customs Law, deliver the goods to the seller either directly or indirectly. Those goods, apart fromthose mentioned in Article 38, paragraph 1, item b), indent 3 of the Cust oms Law, must be used
afterwards in the production of the goods impor ted and contained or consumed within them.G/VAL/N/1/HRV/1
Page 16
The goods mentioned in Article 38, paragraph 1, item b), indent 1 of the Customs Law that
have been delivered by the buyer, may be purchased in any foreign country, including the country of
the seller.
As goods mentioned in Article 38, paragraph 1, item b), indent 1 of the Customs Law are
considered the goods mentioned in Article 38, paragraph 1, item b), indent 1 of the Customs Law, if
they have not been purchased abroad, as well as the expandable material.
Article 50
The part of the value of tools, moulds, matrices and similar products used in the production of
imported goods, which is in accordance with Article 38, paragraph 1, item b), indent 2 of the CustomsLaw included in the customs value of imported goods, shall be the amount of depreciated value of
these products that were used in the production of imported goods.
Article 51
As royalties, costs and licences mentioned in Article 38, paragraph 1, item c) of the Customs
Law (hereinafter licences) are above all considered payments fulfilled for the use of the rights
connected with:
a) the production of the imported goods (patents, samples, models and technological know-
how);
b) resale of the imported goods for export (commercial marks and protected models); andc) use and subsequent sales of the imported goods (copyrights and technological procedures
inseparably incorporated in the imported goods).
Where the customs value of the imported goods is determined pursuant to Article 31 of the
Customs Law, the licences are added to the price actually paid or payable of the imported goods, if
the payment:
a) is related to the goods being valued;b) represents a condition of sale for the imported goods.
Where the imported goods are only a part of the goods manufactured within the customs
territory or its additional equipment, the licence costs may be added to the price actually paid orpayable of the imported goods, only if the licence refers to these imported goods.
Where goods are imported in disassembled condition or are only accidentally processed
before the next sale, for example unpacked or repacked, it does not mean that the licence does not
refer to the imported goods.
Where licences partially refer to the imported goods and partially to other operations or the
additional equipment which is added to the goods after the importation, or to operations fulfilled after
the importation, licenses are apportioned on the basis of the objective and determinable facts.
The licence for the right of using the commercial mark is added to the price actually paid or
payable only when:G/VAL/N/1/HRV/1
Page 17
a) the licence refers to the goods which have been either sold in unconverted state or
accidentally processed or treated after the importation;
b) these goods are sold under a commercial mark which was denoted before or after the
importation and for which a licence must be paid; or
c) the buyer has no possibility of purchasing these goods from other suppliers who are not
connected to the seller.
Where the buyer pays the licence to a third person, the conditions set out in paragraph 2 of
this Article are met when the seller or some other person connected to him demands from the buyer to
make a payment to that third person.
Where the manner in which the licence is calculated depends upon the price of the imported
goods, it is considered, until proved differently, that the licence payment refers to the goods being
valued.
Where the amount of licence is calculated independently from the price of the imported
goods, the payment of the licence may refer to the goods being valued.
For the implementation of Article 38, paragraph 1, item c) of the Customs Law, it is not
significant in which country the receiver of the licence fee has the residence.
Article 52
When determining the customs value, other it ems (costs), apart from those mentioned in
Article 38, paragraph 1 of the Customs Law, may not be added to the price actually paid or payable.
Pursuant to provisions of paragraph 1 of this Article, each item that is added to the price
actually paid or payable must be based solely on the objective and measurable transactions.
As multiplying (reproduction), pursuant to Article 39, paragraph 1, item d) of the Customs
Law, are especially considered graphical multiplication and multiplication in three dimensions,
construction and erection of architectural or other types of objects or apparatuses, photographing,
audio and visual recording, broadcasting and saving in the electronic form.
Article 53
At the request of the declarant, regardless of Article 44, paragraphs 2 and 3 of this Decree, the
Customs Office may approve that the amounts of determined costs which are added to the price paidor payable, even if they were not quantitatively determined at the moment when debt incurred
(Article 44, paragraph 2 of this Decree), or the amounts of determined costs that are not included in
the customs value in cases where they were not shown separately at the moment when debt incurred
(Article 44, paragraph 3 of this Decree), shall be determined on the basis of special measures.
In the case mentioned in paragraph 1 of this Article, the declared customs value shall not be
deemed as temporary value in accordance with Article 133 of this Decree.
The authorisation mentioned in paragraph 1 of this Article may be issued:
a) if the implementation of the procedure according to Article 133 of this Decree would cause
disproportionately high costs compared to the circumstances of the case,G/VAL/N/1/HRV/1
Page 18
b) if the use of the alternative methods of valuation in accordance with Articles from 32 to 37 of
the Customs Law, would be unsuitable because of the circumstances,
c) in the case when justified reasons exist that the import duties owed - because of the
authorisation mentioned in paragraph 1 of this Article - will not be in a certain period lowerthan they would have been if the authorisation had not been issued; and
d) if issuing the authorisation has no influence on the competitiveness among economic subjects.
Article 54
The financial costs are adjusted according to Article 39 of the Customs Law also if the
alternative methods of valuation mentioned in Arti cles from 32 to 37 of the Customs Law are used.
Article 55
In the case of doubt that the declared value does not represent the price actually paid or
payable, the Customs Office may ask for the additional explanations, including the enclosure of
additional documents or data.
If the declarant has not provided additional explanations, data or documents or they were
insufficient, the Customs Office must inform the declarant, at his request in writing, about the reasonsraising doubt in the accuracy or verity of the value before reaching its final decision. It also has to set
a new time limit for the submission of explanations.
The Customs Office must inform the declarant in writing about its final decision and reasons
that have caused it.
CHAPTER 2
SPECIAL RULES ON DETERMINING THE VALUE FOR PROGRAM EQUIPMENT
Article 56
Without prejudice to the provisions of Articles 31 to 47 of the Customs Law, when
determining the customs value during the import of ca rrier media bearing data or program instructions
for the use of data processing equipment, only the value of the carrier media shall be included if the
value of data or program instructions is separately shown from the value of the carrier media.
CHAPTER 3
DECLARING DATA ON THE CUSTOMS VALUE AND
DOCUMENTS THAT OUGHT TO BE ENCLOSED
Article 57
Where the customs value is determined according to Articles 31 to 47 of the Customs Law, all
data relating to the customs value of the imported goods need to be properly declared (Declaration on
Customs Value) when submitting the customs declaration.
The Declaration on Customs value (DCV) is pres ented on the form shown in Appendix 2 and,
if needed, is supplemented with one or more addi tional forms (DCV BIS) shown in Appendix 3, that
are integral parts of this Decree.G/VAL/N/1/HRV/1
Page 19
The forms mentioned in paragraph 2 of this Article are completed in accordance with the
regulation prescribed by the Minister of Finance.
Article 58
When automatic data processing system is used or if for some goods the simplification
concerning the customs declarations is approved, the Customs Headquarters of the Customs
Directorate may grant the aberrations from the manner of presenting data that are needed for
determining the customs value.G/VAL/N/1/HRV/1
Page 20
CUSTOMS REGULATIONS FOR DETERMINING THE CUSTOMS VALUE
ACCORDING TO THE CUSTOMS LAW OF THE REPUBLIC OF
CROATIA  (ARTICLES 29 TO 48)4
GENERAL PROVISIONS
These Customs regulations, pursuant to Articles 29 to 48 of the Customs Law, shall prescribe
detailed conditions and the manner of determining the customs value.
I. USE OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
1.  “Generally accepted accounting principles“ means the recognised consensus or substantial
authoritative support within a country at a particular time as to which economic resources orobligations should be deemed as assets and liabilities, which changes in assets and liabilities should
be recorded, how the assets and liabilities and changes in them should be measured, what information
should be disclosed and how it should be disclosed, and which financial statements should be
prepared. These standards may be the guidelines of general application, as well as detailed practices
and procedures.
2.  For the purpose of this Law, the Customs Directorate shall utilise information prepared in a
manner consistent with generally accepted accounting principles in the country that are appropriate
for the Article concerned.
For example, the determination of usual profit and general expenses under the provisions of
Article 35 would be carried out utilising information prepared in a manner consistent with the
generally accepted accounting principles of the country of importation. On the other hand, the
determination of usual profit and general expenses under the provisions of Article 36 would be carried
out utilising information prepared in a manner consistent with generally accepted accountingprinciples of the country of production.
As a further example, the determination of an element provided for in Article 38, paragraph 1,
item b), indent 2, whereby the country of importation would utilise information of that country
prepared according to the generally accepted accounting principles.
II. NOTES TO ARTICLES
Note to Article 30
Article 30 of The Customs Law explains the meaning of particular terms, related to the
determining of the customs value and used in the further text of The Customs Law.
 When applying this Article, a term “persons“ shall refer to legal persons wherever applicable.
When applying this Law, it shall be considered that one person controls another when he
occupies, either legally or operatively, such a position that he may apply restriction or command onto
another person.
For the purpose of Article 30, paragraph 4, item h), the persons shall be considered as
members of the same family only if they are related as:
                                                     
4 Please note that the following is an unofficial English translation of the original Croatian text and as
such should be used for purpose of reference only.
Published in Official Gazette of the Croatian Customs Administration 11/99G/VAL/N/1/HRV/1
Page 21
• husband and wife
• parent and child
• brother / sister  or half-brother / half-sister
• grandfather or grandmother and grandchildren
• uncle ( father's brother ) and his wife, uncle (mother's brother) and his wife, uncle or aunt  and
nephew or niece
• fathers-in-law and mothers-in-law (of both – hu sband and wife), son-in-law and daughter-in-law
• brother-in-law and sister-in-law
III. NOTES TO ARTICLES 31 TO 37
1. Articles 31 to 37 define how the customs value of imported goods is to be determined
according to the provisions of this Law, to  Article VII of GATT and to the Agreement on
implementation of Article VII of GATT. The valuation methods are set out in a sequential order of
application. The primary method for customs valuation is defined in Article 31, where the value of
imported goods is to be determined according to the provisions of this Article whenever the
conditions prescribed therein are fulfilled.
2. If the customs value cannot be determined based on the provisions of Article 31, it is to be
determined by proceeding sequentially through the succeeding Articles to the first such Article under
which the customs value can be determined. Except as provided in Article 34, only if the customs
value cannot be determined under the provisions of a particular Article, the provisions of the next
Article in the sequence may be applied.
3. If the importer does not request that the order of Articles 35 and 36 be reversed, the normal
order of the sequence is to be followed. If the im porter does so request, but it then proves impossible
to determine the customs value under the provisions of Article 36, the customs value is to be
determined under the provisions of Article 35, if can be so determined.
4. If the customs value cannot be determined under the provisions of Articles 31 to 36, it is to be
determined under the provisions of Article 37.
IV. NOTE TO ARTICLE 31
Price actually paid or payable
The price actually paid or payable shall refer to the price for the imported goods. Thus the
flow of dividends or other payments from the buyer to the seller that do not relate to the imported
goods are not part of the customs value.
1. Paragraph 1, item a), indent 3
Among the restrictions which would not render a price actually paid or payable as
unacceptable, are the restrictions that do not substantially affect the value of the goods. An example of
such restriction would be the case where a seller requires a buyer of automobiles not to sell or exhibit
them before a fixed date, which represents the beginning of a model year.
2. Paragraph 1, item b)
a) If the sale or price is subject to some condition or consideration for which a value cannot be
determined with respect to the goods being valued, the transaction value shall not beacceptable for customs purposes.G/VAL/N/1/HRV/1
Page 22
Some of those examples include:
i) the seller establishes the price of the imported goods on condition that the buyer will
also buy other goods in specified quantities;
ii) the price of the imported goods is dependent upon the price or prices at which the
buyer of the imported goods sells other goods to the seller of the imported goods
iii) the price is established because of a form of payment extraneous to the imported
goods, such as where imported goods are semi-finished goods that have been
provided by the seller, but on condition that the seller will receive a specified quantity
of the final products.
b) However, conditions or considerations relating to the production or marketing of the imported
goods shall not result in rejection of the transaction value.
For example, the fact that the buyer furnishes the seller with engineering and plans undertaken in the
country of importation shall not result in rejection of the transaction value for the purposes of
Article 31. Likewise, if the buyer undertakes on the buyer's own account, even though by agreement
with the seller, activities relating to the marketin g of the imported goods, the value of these activities
is not part of the customs value nor shall such activities result in rejection of the transaction value.
3. Paragraph 1, item c)
a) If the goods are imported for which the obligation under Article 31, paragraph 1, item c) is
being stipulated, the importer has subsequently to present to the Customs Office the sale, the
lend or the use of the imported goods, that results in the obligation of the additional paymentof certain amount to the seller at the latest within 30 days from the day when this obligation
incurred.    
b) On the basis of the submitted presentation, the Custom Office must issue the decision for
calculating the amount of the import duty and other import contributions that are payable by
the customs obligor.
4. Paragraphs 2 and 3
a) Paragraphs 2 and 3 provide different means of establishing the acceptability of a transaction
value.
b) Paragraph 2 provides that where the buyer and seller are related, the circumstances
surrounding the sale shall be examined and the transaction value shall be accepted as the
customs value provided that the relationship did not influence the price.
It is not intended that there should be an examination of the circumstances in all cases where
the buyer and the seller are related. Such examination will only be required where there are
doubts about the acceptability of the price.
Where the Customs Office has no doubts about the acceptability of the price, it should be
accepted without requesting further information from the importer.
For example, the Customs Office may have previously examined the relationship, or may
already have detailed information concerning the buyer and seller, and may already beG/VAL/N/1/HRV/1
Page 23
satisfied from such examination or information that the relationship did not influence the
price.
c) In the case when the Customs Office is unable to accept the transaction value without further
inquiry, it should give the importer an opportunity to supply further detailed information forenabling the examination of the circumstances surrounding the sale.
In this context, the Customs Office should be prepared to examine the relevant aspects of the
transaction, including the mode of organising commercial relationship between the buyer and
the seller and the mode of arriving at the price in question in order to determine whether the
relationship influenced the price.
 Where it can be shown that the buyer and seller, although related under the provisions of
Article 30, buy from and sell to each other as if they were not related, this would demonstrate
that the price had not been influenced by the relationship.
EXAMPLES:  If the price has been settled in a manner consistent with the normal pricing
practices of the industry in question or with the way the seller settles prices for sales to buyers
who are not related to the seller, it means that the price has not been influenced by their
mutual relationship.
   Further example is case, where it is shown that the price is adequate to ensure recovery of all
costs plus a profit that is representative of the firm's overall profit realised over a
representative period of time (e.g. on annual basis) in sales of goods of the same class or kind;
this would demonstrate that the price had not been influenced by the relationship.
d) Paragraph 3 of this Article provides an opportunity for the importer to demonstrate that that
the transaction value closely approximates to a “test” value previously accepted by the
Customs Office, and is therefore acceptable under the provisions of Article 31. Where a test
under paragraph 3 is met, it is not necessary to examine the question of influence under
paragraph 2.
If the Customs Office has already sufficient information to be satisfied, without further
detailed inquiries and that one of the tests provided in paragraph 3 has been met, there is noreason for it to require the importer to demonstrate that the test can be met.
In paragraph 3 under the term “unrelated buyers” are meant those buyers who are not related
to the seller in any particular case.
Furthermore, a number of factors must be taken into consideration in determining whether
one value “Closely approximates” to another value. These factors include the nature of the
imported goods, the nature of the industry itself, the season in which the goods are imported,
and, whether the difference in values is commercially significant. Since these factors may
vary from case to case, it would be impossible to apply a uniform standard such as a fixedpercentage, in each case.
For example, a small difference in value in a case involving one type of goods could be
unacceptable while a large difference in a case involving another type of goods might be
acceptable in determining whether the transaction value closely approximates to the “test”value set forth in Paragraph 3 of the Article 31.G/VAL/N/1/HRV/1
Page 24
V. NOTE TO ARTICLE 32
1. In applying Article 32, whenever possible, the Customs Office shall use a sale of identical
goods at the same commercial level and in substantially the same quantities as the goods being
valued. Where no such sale is found, a sale of identical goods that takes place under any one of the
following three conditions may be used:
a) a sale at the same commercial level, but in different quantities;b) a sale at a different commercial level, but in substantially the same quantities;c) a sale at a different commercial level and in different quantities.
2. For a sale under any one of these three conditions adjustments will then be made, as the case
may be, for:
a) quantity factors only;
b) commercial level factors only;
c) both commercial level and quantity factors.3. The expression “and/or“ allows the flexibility to use the sales and make the necessary
adjustments in any of the three conditions described above. 
4. When applying Article 32, the transaction value of identical imported goods means a customs
value, adjusted as provided for in paragraphs 2, 3 and 4, which has already been accepted under the
provisions of Article 31.
5. A condition for adjustment due to different commercial levels or different quantities shall be
that such adjustment may, whether it leads to an increase or a decrease in the value, be made only
based of demonstrated evidence that clearly establishes the reasonableness and accuracy of the
adjustments e.g. of valid price list containing prices on different commercial levels or different
quantities.
 EXAMPLE:  If the imported goods being valued consist of a shipment of 10 units and the
only identical imported goods for which a transaction value exists involved a sale of 500 units, and it
is recognised that the seller grants quantity discounts, the required adjustment may be accomplished
by resorting to the seller's price list and using that price list applicable to a sale of 10 units.
This does not require that a sale had to have been made in quantities of 10 as long as the price
list has been established as being bona fide through sales at other quantities.
However, in the absence of such an objective measure, the determination of a customs value
under the provisions of Article 32 is not appropriate.
VI. NOTES TO ARTICLE 33
In applying Article 33, whenever possible, the Customs Office shall use a sale of similar
goods at the same commercial level and in substantially the same quantities as the goods being
valued. Where no such sale is found, a sale of similar goods that takes place under any one of thefollowing three conditions may be used:G/VAL/N/1/HRV/1
Page 25
a) a sale at the same commercial level, but in different quantities;
b) a sale at a different commercial level, but in substantially the same quantities;c) a sale at a different commercial level and in different quantities.2. Having found a sale under any one of these three conditions, adjustments will then be made,
as the case may be, for:
a) quantity factors only;b) commercial level factors only;c)  both commercial level and quantity factors.3. The expression “and/or“ allows the flexibility to use the sales and make the necessary
adjustments in any of the three conditions described above. 
4. For the purpose of Article 33, the transaction value of similar imported goods means a
customs value, adjusted as provided for in paragraphs 2, 3 and 4, which has already been accepted
under the provisions of Article 31.
5. A condition for adjustment due to different commercial levels or different quantities shall be
that such adjustment may, whether it leads to an increase or a decrease in the value, be made only
based of demonstrated evidence that clearly establishes the reasonableness and accuracy of the
adjustments e.g. of valid price list containing prices on different commercial levels or different
quantities.    
EXAMPLE:  If the imported goods being valued consist of a shipment of 10 units and the
only similar imported goods for which a transaction value exists involved a sale of 500 units, and it is
recognised that the seller grants quantity discounts, the required adjustment may be accomplished by
resorting to the seller's price list and using that price list applicable to a sale of 10 units. This does not
require that a sale had to have been made in quantities of 10 as long as the price list has been
established as being bona fide  through sales at other quantities.
However, in the absence of such an objective measure, the determination of a customs value
under the provisions of Article 33 is not appropriate.
VII. NOTE TO ARTICLE 35
1. The term “unit price at which…goods are sold in the greatest aggregate quantity” means the
price at which the greatest number of units is sold in sales to persons who are not related to the
persons from whom they buy such goods at the first commercial level after importation at which such
sales take place.
2.  Goods are sold from a price list that grants favourable unit prices for purchases made in
larger quantities.G/VAL/N/1/HRV/1
Page 26
EXAMPLE:
Sale
QuantityUnit
PriceNumber
of salesTotal quantity sold
at each price
1 – 10 units 100 10 x 5 units
5 x 3 units65
11- 25 units 95 5 x 11 units 55
Over 25 units 90 1 x 30 units
1 x 50 units80
The greatest number of units sold at a price is 80; therefore, the unit price in the greatest
aggregate quantity is 90.
3.  As another example of this, two sales occur. In the first sale 500 units are sold at a price of 95
currency units each. In the second sale 400 units are sold at a price of 90 currency units each.
In this example, the greatest number of units sold at a particular price is 500; therefore, the
unit price in the greatest aggregate quantity is 95.
4. A third example would be the following situation where various quantities are sold at various
prices.
              a)  Sales                                       b) Totals
Sale quantity   Unit price            Total quantity sold      Unit price
 -------------------------------           -----------------------------------------
40 units           100
30 units             90                               65                      90
15 units           100                               50                      95
50 units             95                               60                     100
25 units           105                               25                     10535 units             90
  5 units           100
In this example, the greatest number of units sold at a particular price is 65; therefore, the unit
price in the greatest aggregate quantity is 90.
5. Any sale in the importing country, as described in paragraph 1 above, to a person who
supplies directly or indirectly free of charge or at reduced cost for use in connection with the
production and sale for export of the imported goods any of the elements specified in paragraph 1 of
item b) of Article 38, should not be taken into account in establishing the unit price for the purposesof Article 35.
6. It should be noted that “profit and general expenses” referred to in paragraph 1 of Article 35
should be taken as a whole. The figure for the purposes of this deduction should be determined on the
basis of information supplied by or on behalf of the importer unless the importer's figures areinconsistent with those obtained in sales in the country of importation of imported goods of the same
class or kind. Where the importer's figures are inconsistent with such figures, the amount for profit
and general expenses may be based upon relevant information other than that supplied by or on behalf
of the importer.G/VAL/N/1/HRV/1
Page 27
7. The “general expenses” include the direct and indirect costs of marketing the goods in
question.
8. Taxes payable by reason of the sale of the goods for which a deduction is not made under the
provisions of paragraph 1, item 3) of Article 35 sha ll be deducted under the provisions of paragraph 1,
item 1) of Article 35.
9. In determining the commissions or the usual profits and general expenses under the
provisions of paragraph 1 of Article 35, the question whether certain goods are “ of the same class or
kind” as other goods must be determined on a case-by-case basis by references to the circumstances
involved. Sales in the country of importation of the narrowest group or range of imported goods of the
same class or kind, which includes the goods being valued, for which the necessary information canbe provided, should be examined. When applying Article 35, “goods of the same class or kind”
includes goods imported from the same country as the goods being valued as well as goods imported
from other countries.
10. For the purpose of paragraph 2 of Article 35, the “earliest date” shall be the date by which
sales of the imported goods or of
identical or similar imported goods are made in sufficient quantity to establish the unit price.   
11. Where the method in paragraph 3 of Article 35 is used, deductions made for the value added
by further processing shall be based on objective and quantifiable data relating to the costs of suchwork. Accepted industry formulas, recipes, methods of construction and other industry practices
would form the basis of the calculations.
12. It is recognised that the method of valuation provided for in paragraph 3 of Article 35 would
normally not be applicable when, as a result of the further processing, the imported goods lose theiridentity.
However, there can be examples which, although the identity of the imported goods is lost,
the value added by the processing can be determined accurately without unreasonable difficulty.
On the other hand, there can also be examples where the imported goods maintain their
identity but form such a minor element in the goods sold in the country of importation, that the use of
this valuation method would be unjustified. In view of  the above, each situation of this type must be
considered on a case-by-case basis.
VIII.  NOTE TO ARTICLE 36
1. As a general rule, the customs value is determined on the information readily available in the
country of importation. However, in order to determine a computed value, it may be necessary to
examine the costs of producing the goods being valued and other information which has to be
obtained from outside the country of importation.
Furthermore, in most cases the producer of the goods will be outside the jurisdiction of the
importing country authorities. The use of the computed value method will generally be limited to
those cases where the buyer and seller are related, and the producer is prepared to supply to the
importing country authorities the necessary costs and to provide facilities for any subsequent
verification which may be necessary.
2. The “cost or value” referred to in paragraph 1, item a) of Article 36 is to be determined on the
basis of information relating to the production of the goods being valued supplied by or on behalf of
the producer. It is to be based upon the commercial accounts of the producer, providing that suchG/VAL/N/1/HRV/1
Page 28
accounts are consistent with the generally accepted accounting principles applied in the country where
the goods are produced.
3. The “cost or value” shall include the cost of elements specified in paragraph 1, item a),
indents 2 and 3 of Article 38. It shall also include the value, apportioned as appropriate under theprovisions of the relevant note to Article 38, of any element specified in paragraph 1, item b) of
Article 38, which has been supplied directly or indirectly by the buyer for use in connection with the
production of the imported goods. The value of the elements specified in paragraph 1, item b) indent 4
of Article 38 which are undertaken in the country of importation shall be included only to the extent
that such elements are charged to the producer. It is to be understood that no cost or value of the
elements referred to in this paragraph shall be  counted twice in determining the computed value.
4. The “amount for profit and general expenses” referred to in paragraph 1, item b) of Article 36
is to be determined on the basis of information supplied by or on behalf of the producer unless the
producer's figures are inconsistent with those usually reflected in sales of goods of the same class or
kind as the goods being valued which are made by the producers in the country of exportation for
export to the country of importation.
5. It should be noted in this context that the “amount for profit and general expenses” has to be
taken as a whole. It follows that if, in any particul ar case, the producer's profit figure is low and the
producer's general expenses are high, the producer's profit and general expenses taken together may
nevertheless be consistent with that usually reflected in sales of goods of the same class or kind. Sucha situation might occur, for example, if products were being launched in the country of importation
and the producer accepted a nil or low profit to offset his general expenses associated with the launch.
Where the producer can demonstrate a low profit on sales of the imported goods because of particular
commercial circumstances, the producer's actual profit figures should be taken into account providing
that the producer has valid commercial reasons to justify them and the producer's pricing policyreflects the usual pricing policies in the branch of industry concerned.
Such a situation might occur, for example, where producers have been forced to lower prices
temporarily because of an unforeseeable drop in demand, or where they sell goods to complement a
range of goods being produced in the country of importation and accept a low profit to maintain the
competitiveness.
Where the producer's own figures for profit and general expenses are not consistent with
those usually reflected in sales of goods of the same class or kind as the goods being valued which are
made by producers in the country of exportation for export to the country of importation, the amount
for profit and general expenses may be based upon relevant information other than that supplied by or
on behalf of the producer of the goods.
6. Where information other than that supplied by or on behalf of the producer of the goods is
used for the purposes of determining computed valu e, the Customs Office shall inform the importer, if
the latter so requests, of the source of such information, the data used and accounting based upon data,
subject to the provisions of Article 45.
7. The “general expenses” referred to in paragraph 1, item b) of Article 36 covers the direct and
indirect costs of producing and selling the goods for export which are not included in paragraph 1,
item a) of Article 36.
8. Whether certain goods are “of the same class or kind” as other goods, it must be determined
on a case-by-case basis with reference to the circumstances involved. In determining the usual profits
and general expenses under the provisions of Article 36, sales for export to the country of importation
of the narrowest group or range of goods, which includes the goods being valued, for which theG/VAL/N/1/HRV/1
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necessary information can be provided, should be examined. For the purposes of Article 36, “goods of
the same class or kind” must be from the same country as the goods being valued.
IX. NOTE TO ARTICLE 37
1. Customs values determined under the provisions of Article 37 should, to the greatest extent
possible, be based on previously determined customs values.
2. The methods of valuation to be employed under Article 37 should be those laid down in
Articles 31 to 36 but a reasonable flexibility in the application of such methods would be in
accordance with the aims and provisions of Article 37.
3. Some examples of reasonable flexibility are as follows:a) Identical goods – the requirement that the identical goods should be exported at or about the
same time when the goods being valued could be flexibly interpreted; identical imported
goods produced in a country other than the country of exportation of the goods being valued,
could be the basis for customs valuation; customs values of identical imported goods alreadydetermined under the provisions of Article 35 and 36 could be used.
b) Similar goods -  the requirement that the similar goods should be exported about or at the
same time as the goods being valued could be flexibly interpreted; similar imported goods
produced in a country other than the country of exportation of the goods being valued couldbe the basis for customs valuation; customs values of similar imported goods already
determined under the provisions of Article 35 and 36 could be used.
c) Deductive method –  the requirement that the goods shall have been sold in the “condition as
imported” in paragraph 1 of Article 35, and the requirement for “90 days” could beadministered flexibly.
X. NOTE TO ARTICLE 38
1. Paragraph 1, item a), indent 1
 In the transaction value of the imported goods there are to be added the provisions and
brokerage covered by the buyer, as they are not included in the price paid or payable. In the priceactually paid or payable are not to be included the buying commissions.
 The term “buying commission” means fees paid by the importer to the importer's agent for the
service of representing the importer abroad in the purchase of the goods being valued.
 The term “selling commission” means fees paid to the seller's agent who acts on behalf of the
seller. He searches for buyers, collects orders and in some cases he stores and delivers the goods. The
selling commission, paid by the seller, which shall not be covered by the buyer, cannot be added to
the price actually paid or payable.
 The term “broker's commission” (brokerage) re fers to the payment of the commission to the
person who does not act for his own account. He acts for both the buyer and seller and usually has no
other role but to arrange their contact. Such brokers are usually specialists for certain sorts of goods
like for the sugar, coffee, oil and similar.
Where the seller of the goods is paying the broker, the total brokerage shall be included in the
price actually paid or payable for the goods. However, there are some cases where the buyer is payingG/VAL/N/1/HRV/1
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the broker, or proportionally both, the buyer and seller. In such cases, the customs value shall include
only a part covered by the buyer, if it has not already been included in the price of goods and if it is
not the buying commission.
It should be emphasised that only the fact of the existence of the commission for itself and
sorts of services arranged by brokers connected with the sale of goods are often not visible in the
commercial documents accompanying the customs declaration.
Referred to this fact, the Customs Office has the right to require submitting of other
documents in order to establish the existence and the sort of services performed.
2. Paragraph 1, item a) indent 4
a) If transport costs in the documents submitted for the clearance of goods are accounted up to
the point of delivery in the customs territory of the Republic of Croatia, transport costs
incurring from the point of entry into the customs territory of the Republic of Croatia to the
delivery point will not be included in the customs value.
b) If transport costs are calculated on the basis of the special transport tariff up to the delivery
point, according to which the costs decrease depending on the route and the weight of the
cargo, transport costs from the place of entry into the customs territory of the Republic of
Croatia up to the delivery point shall be calculated in accordance with that special tariff.
c) If transport costs are stipulated up to the delivery point, and if it not possible to determine the
amount of costs from the documents submitted, in the customs value shall be included the
total amount of transport costs. 
d) When the goods are transported by non-public means of  conveyance (personal automobiles
and similar), transport costs shall be calculated according to transport tariffs used for such sort
of goods when transported by the public traffic. The declarant is obliged to submit evidence
for the costs incurred that way.
e)      While importing the goods sold by the seller on unique prices regardless to the distance of the
delivery point, as a customs value shall be used such unique price without deduction oftransport costs from the point of entry into the customs territory of the Republic of Croatia up
to the delivery point.
f) If the goods are transported by sea or by air, as the point of entry into the customs territory of
the Republic of Croatia shall be deemed the point of unloading of the goods in the port openfor the international traffic and in the case of using of the other means of transport, the
customs-crossing point open for the international traffic.
3. Paragraph 1, item b), indent 2
a) Two factors are involved in the apportionment of the elements specified in paragraph 1,
item b) indent 2 of Article 38 to the imported goods – the value of the element itself and the
way in which that value is to be apportioned to the imported goods. The apportionment of
these elements should be made in a reasonable manner appropriate to the circumstances and
in accordance with generally accepted accounting principles.
b) Concerning the value of the element, if the importer acquires the element from a seller not
related to the importer at a given cost, the value of element is that cost. If the element was
produced by the importer or by a person related to the importer, its value would be the cost ofG/VAL/N/1/HRV/1
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producing it. If the element had been previously used by the importer, regardless of whether it
had been acquired or produced by such importer, the original cost of acquisition or production
would have to be adjusted downward to reflect it s use in order to arrive at the value of the
element.
c) Once a value for the element has been determined, it is necessary to apportion that value to
the imported goods. There are various possibilities.
For example, the value might be apportioned to the first shipment if the importer wishes to
pay duty on the entire value all at once.
         As another possibility, the importer may request that the value be apportioned over the
number of units produced up to the time of the first shipment.
In the third case, the importer may request that the value be apportioned over the entire
anticipated production where contracts or firm commitments exist for that production. The
method of apportionment used will depend upon the documentation provided by the importer.
 EXAMPLE: An importer provides the producer with a mould to be used in the production of
the imported goods and contracts with the producer to buy 10.000 units. By the time of arrival
of the first shipment of 1.000 units the producer has already produced 4.000 units. The
importer may request the Customs Office to apportion the value of the mould over 1.000units, 4.000 units or 10.000 units.
4. Paragraph 1, item b) indent 4
a) Additions for the elements specified in paragraph 1, item b) indent 4 of Article 38 should be
based on objective and quantifiable data. In order to minimise the burden for both the
importer and the Customs Office in determining the values to be added, data readily available
in the buyer's commercial record system should be used in so far as possible.
b) For those elements supplied by the buyer which were purchased or leased by the buyer, the
addition would be the cost of the purchase or th e lease. No addition shall be made for those
elements available in the public domain, other than the costs of obtaining copies of them.
c) The ease with which it may be possible to calculate the values to be added will depend on a
particular firm's structure and management practice, as well as its accounting methods.
d) For example, it is possible that a firm that imports a variety of products from several countries
maintains the records of its design centre outs ide the country of importation in such a way as
to show accurately the costs attributable to a given product. In such cases, a direct adjustment
may appropriately be made under the provisions of Article 38.
e) In another case, a firm may carry the cost of the design centre outside the country of
importation as a general overhead expense without allocation to specific products. In this
instance, an appropriate adjustment could be made under the provisions of Article 38 with
respect to the imported goods by apportioning total design centre costs over total production
benefiting from the design centre and adding such apportioned cost on unit basis to imports.
f) Variations in the above circumstances will, of course, require different factors to be
considered in determining the proper method of allocation.G/VAL/N/1/HRV/1
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g) In cases where the production of the element in question involves a number of countries and
over a period of time, the adjustment should be limited to the value actually added to that
element outside the country of importation.
5. Paragraph 1, item b), indents 1,2,3 and 4
For all assists determined in indents 1, 2, 3 and 4 shall be valid:
a) If the assist was acquired from a seller not related to the importer, the value of the assists will
be the cost to acquire it.
b) If the importer or the person connected with the importer produced assists, the value of the
assist will be the cost of the production.
c) The value of the assist, regardless of the fact weather they are based on the cost of the
acquisition or on the cost of the production, should also include transport costs to the place of
manufacture as well as duties and taxes not refunded.
6. Paragraph 1, item c)
a) The royalties and licence fees may include payments for patents, models, foreign commercial
or industrial trade marks, copyrights and royalties and may, in general, be considered aspayments for the right to use, produce or sell the certain product or an item containing some
form of the intellectual property.
 b)         In order to include those costs in the customs value of  the imported goods, they have to fulfil
the following conditions:
i) They must be related to the goods being valued
Royalties and licence fees must bear directly on the goods being imported, i.e. the
imported goods must contain some sort of the intellectual property like, for example,
trademark, copyright, some patented process or some other protected right.
ii) The buyer must pay for royalties and licence fees either directly or indirectly as the
condition for the sale
.              The purchase of the goods must involve the payments for royalties and licence fees as
the condition for the purchase of goods. It is irrelevant to whom the  royalties and
licence fees are to be paid, they may be  paid even to a third person, but the essential
is that the purchase is realised under the condition of paying  for royalties and licencefees.
iii) They must not be included in the price paid or payable.
If the value of royalties and licence fees is included in the value of the imported
goods, clearly they shall not be added twice to the price actually paid or payable.
If only one of three above-mentioned conditions has not being fulfilled, the cost of royalties
and licence fees shall not be included in the price actually paid or payable.
c) The additions shall be made to the royalties and licence fees only on the basis of objective and
quantifiable data.G/VAL/N/1/HRV/1
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7. Paragraph 3
Where objective and quantifiable data do not exist with respect to the additions that require to
be made under the provisions of Article 38, the transaction value cannot be determined under the
provisions of Article 31. As an example, a royalty is paid on the basis of the price in a sale in theimporting country of a litre of a particular product that was imported by the kilogram and made up
into solution after importation.
If the royalty is based partially on the imported goods and partially on other facts which have
nothing to do with the imported goods (such as when the imported goods are mixed with domestic
ingredients and are no longer separately identifiable, or when the royalty cannot be distinguished from
special financial arrangements between the buyer and the seller), it would be inappropriate to attemptto add the royalty. However, if the amount of this royalty is
based only on the imported goods and can be readily quantified, an addition to the price actually paid
or payable can be made.
XI. NOTE TO ARTICLE 39
1. paragraph 1, item d)
The costs paid by the buyer referred to the right to reproduce the imported goods shall not be
added to the customs value.
Neither are to be added to the customs value the payments made by the buyer for the right to
distribute or to resell the imported goods, if such payments are not a condition of the sale for export to
the country of importation of the imported goods.
Although such payments are not to be added to the customs value of the imported goods, they
shall not be deducted if they are already included in the value of the goods.
XII. NOTE TO ARTICLE 40
When determining the customs value, all reductions of prices and cash discounts are to be
taken into consideration, if so agreed and realised before the importation.
Cash discounts are discounts granted to the buyer if he pays the goods within a certain period.
If such cash discount shall be realised only af ter the importation, the importer has to provide the
evidence that such discount shall be actually r ealised, either by providing the statement of the
importer or indicating in the invoice that the discount shall be realised. The buyer must also be able to
prove that he will actually pay this amount. Cash discounts may be approved only if they are in
accordance with the terms of payment and accustomed wi th respect to the sort of the business affair.
The discount bigger than usual may be approved only if the evidence is submitted that such discount
shall be actually realised.
Quantity discounts are discounts granted to the buyer in goods on the basis of the quantities
bought by the buyer. The discounts for previous deliveries cannot be approved because they havenothing to do with the imported goods and the proper definition of the customs value states that this is
the price actually paid or payable for the imported goods.
Discounts and reductions in prices that were agreed before and realised after the importation
are added to the customs value.G/VAL/N/1/HRV/1
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XIII.  NOTE TO ARTICLE 41
1. For the purposes of Article 41, paragraph 1 the expression “goods imported without being on
sale” means the following:
• gifts, samples and promotional items furnished free of charge,
• goods imported to the consignment,
• goods imported from the branch-offices which are not considered as separate legal entities,
• goods imported for hire, lease or loan.
2. According to the Advisory Opinion No.1.1 of the Technical Committee on customs valuation
of World Customs Organisation, the transaction of hiring or leasing the goods is not considered as the
sale by their very nature, even where such purchase is provided by the contract. The method of the
transaction value for such cases is therefore precluded and it will be necessary to determine the
customs value by using the other methods of valuation.
3. In the cases where the goods similar or identical to goods that are imported have already been
sold for export to the country of importation, it would be possible to determine the customs value on
the basis of Articles 32 and 33 of the Customs Law. If it is not possible to determine the customs
value under the provisions of those Articles, the application of Articles 35 and 36 has to be tried. If all
the possibilities according to Articles 32 to 36 have been exhausted, Article 37 has to be applied.
Where the goods are being valued by applying Article 37, the methods from Articles 31 to 36 shouldbe applied first with reasonable flexibility.
 If it is not possible to determine the customs value by applying Articles 31 to 36, it may be
determined by using other reasonable means on condition that they are not precluded by Article 37.
For example, the customs value may be determined based on the use of valid list prices (for
new or used goods) for exportation to the country of importation. In the case when the goods that have
already been used are imported, the value may be based on valid list prices for new goods, if no list
prices for used goods exists. However, since the imported goods would have to be valued with respect
to the condition they are in at the moment of importation, the list prices for new goods must beadjusted by taking into consideration the decrease in the value or their obsoleteness.
The second possibility would be, to ask for the expert opinion acceptable to both, the Customs
Office and the importer.
 In some cases contract on hire includes also a possibility to purchase. Such possibility may be
approved at the beginning, during or at the end of the contractually agreed basic period. In the first
case the customs value should be based on the value of the purchase. In the last two cases the basis for
determining the customs value could be rental paymen ts in instalments agreed in the rental contract,
increased for the remaining amount required.
In the cases where no possibility to purchase is foreseen, the customs value according to
Article 37 may also be determined on the basis of rental costs actually paid or payable for the
imported goods. In this case care should be taken with respect to the amount of the rental costs that
can be quoted higher for securing the amortisation of the goods within a period shorter than it is the
economic life of the goods.
Determining of the economic life of the goods may cause some problems in industries where,
for example, the rate of technology development is very rapid. A distinction between economic life ofG/VAL/N/1/HRV/1
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new and used goods should be taken into consideration as well and thereby, in dealing with new
goods their “whole economic life”, while with used goods their “remaining economic life” is meant.
 Where the total rental costs have been determ ined, the need for certain adjustments may occur
in order to establish the customs value either in a form of adding or deducting.
XIV. NOTE TO ARTICLE 43
1.  Article 31 prescribes that the customs value of the imported goods is their transaction value,
i.e. price actually paid or payable for goods that are imported into the Republic of Croatia. However,
when determining the customs value of carrier media bearing data or instructions for data processing
equipment (hereinafter “software”) the value of software shall not be included in the customs value, if
its value is distinguished from the value of the carrier media.
2. However, some problems encountered in applying this decision relate to the provision to
distinguish the cost or value of the carrier media from the cost or value of the data or instructions. If
only the value of carrier media is being known, the Customs Offices may accept it as if the value of
the software is being shown separately. If only the value of software occurs or together both values ofthe carrier media and software, the value of carrier media shall be determined by using the rules on
the valuation of the value that are prescribed by the Customs Law.
3. When sending software by ground telephone or satellite, the question of the intellectual
property occurs. Transfer of the intellectual property across the borders is not subject to the clearancefor itself. However, where the intellectual property is being transferred in a material form, i.e. as
carrier data, by applying the harmonised tariff classification system it is liable to the payment of
import duties.
When importing software placed on carrier media, such as disks, magnet disks or similar,
carrier media is the one liable to the clearance obligation. Radio and ground telephone transfers and
software received by the ground telephone or satellite, as the WCO recommended, cannot be
classified in the harmonised tariff classification system and are not liable to the clearance procedure.
XV. NOTE TO ARTICLE 44
1. Article 44, item 4 ensures to the importer the right of appeal referred to the determined
valuation carried out by the Customs Office for the goods being valued. The appeal can be submittedto the Headquarters of the Customs Directorate, but the importer shall have the right in the final
instance to appeal to the Administrative Court.
2. In the provision: “The appellant must not be subject to a punishment in any way” (“without
penalty“) means that the importer shall not be subject to a fine or threat of fine merely because hechose to use his right to appeal. Payment of normal court costs and lawyers' fees shall not be
considered as a fine.
3. However, nothing provided for in Article 44 shall prevent the customs authorities to require
full payment of customs duties valued prior to an appeal.
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