WORLD TRADE
ORGANIZATIONG/ADP/N/1/HRV/1
G/SCM/N/1/HRV/1G/SG/N/1/HRV/1
4 April 2001
(01-1705)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing Measures
Committee on SafeguardsOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS
CROATIA
The following communication, dated 3 April 2001, has been received from the Permanent
Mission of the Republic of Croatia.
_______________
Anti-Dumping
With reference to Article 18.5 of the Agreement on Implementation of Article VI of the
GATT 1994, the Government of the Republic of Croatia notifies the Committee on Anti-Dumping
Practices that the Agreement was partially incorpor ated in the national Law on Trade, Articles 48-49,
of 6 February 1996, published in the Official Gazette no.11 on 9 February 1996, and the Amendments
to the Law on Trade of 30 June 1999, published in the Official Gazette no.75 on 16 July 1999. The
copy of the Revised Act is enclosed.
In Accordance with Article 16.4 of the Agreement on Implementation of Article VI of the
GATT 1994, and response to the request for semi-annual reports contained in document G/ADP/N/9,
the Government of the Republic of Croatia notifies the Committee on Anti-Dumping Practices that it
has taken no anti-dumping actions during the period 1 July through 31 December 2000.
In the Report of the Working Party on its accession to the WTO (document
WT/ACC/HRV/59), Croatia has stated that it would issue a regulation laying down detailed rules and
determining other technical issues related to the application of anti-dumping measures, based on the
national Law on Trade and in conformity with the Article VI of the GATT 1994 and the Agreement
on the Implementation of Article VI.
In accordance with that commitment, Croatia would not apply anti-dumping measures until it
has implemented and notified the aforementioned regulation.
Countervailing Measures
With reference to Article 32.6 of the Agreement on Subsidies and Countervailing Measures,
the Government of the Republic of Croatia notifies the Committee on Subsidies and Countervailing
Measures that the Agreement was partially incorporated in the national Law on Trade, Articles 50-51,of 6 February 1996, published in the Official Gazette No. 11 on 9 February 1996, and theG/ADP/N/1/HRV/1
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Amendments to the Law on Trade of 30 June 1999, published in the Official Gazette No. 75 on
16 July 1999. The copy of the Revised Act is enclosed.
In Accordance with Article 25.11 of the Agreement on Subsidies and Countervailing
Measures, and response to the request for semi-annual reports contained in document G/SCM/N/19,
the Government of the Republic of Croatia notifies the Committee on Subsidies and Countervailing
Measures that it has taken no countervailing duty actions during the period 1 July through
31 December 2000.
In the Report of the Working Party on its accession to the WTO (document
WT/ACC/HRV/59), Croatia has stated that it would issue a regulation laying down detailed rules and
determining other technical issues related to the application of countervailing measures, based on the
national Law on Trade and in conformity with the Agreement on Subsidies and Countervailing
Measures.
In accordance with that commitment, Croatia would not apply countervailing measures until it
has implemented and notified the aforementioned regulation.
Safeguards
With reference to Article 12.6 of the Agreement on Safeguards, the Government of the
Republic of Croatia notifies the Committee on Safeguards that the Agreement was partially
incorporated in the national Law on Trade, Articles 38-39, of 6 February 1996, published in the
Official Gazette No. 11 on 9 February 1996, and the Amendments to the Law on Trade of30 June 1999, published in the Official Gazette no.75 on 16 July 1999. The copy of the Revised Act is
enclosed.
In the Report of the Working Party on its accession to the WTO (document
WT/ACC/HRV/59), Croatia has stated that it would issue a regulation laying down detailed rules and
determining other technical issues related to the application of safeguards measures, based on the
national Law on Trade and in conformity with the Article XIX of the GATT 1994 and the Agreementon Safeguards.
In accordance with that commitment, Croatia would not apply safeguard measures until it has
implemented and notified the aforementioned regulation.G/ADP/N/1/HRV/1
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LAW ON TRADE
PART ONE
I. GENERAL PROVISIONS
Article 1
This Law regulates trading conditions for domestic and foreign markets, trade measures for
export and import, trade restrictions and unfair competition, inspection services and administrativemeasures.
Article 2
In accordance with this Law, trade is an activity including purchase and sale of goods, and
inter mediation in trading in domestic and foreign markets.
A legal or natural person may engage in trade if they have registered for this kind of activity.
Article 3
In accordance with this Law, a trader is a legal or natural person who has engaged in trade as
specified in Article 2 of this Law.
In accordance with this Law, an exporter is a trader or another legal or natural person who
exports goods from the country, pursuing his registered business activity.
In accordance with this Law, an importer is a trader or another legal or natural person who
imports goods into the country, pursuing his registered business activity.
Article 4
A trader freely trades in the market and under equal conditions for all.A trader is not allowed to act in the manner which is contrary to accepted business practices,
which distorts market competition and which is harmful to consumers.
Article 5
State administrative bodies shall not, by their decisions, restrict the right of a trader to act
freely in the market, forbid competition, or bring into disadvantageous position individual traders or
consumers, except in cases provided by the Law.
II. TRADING
Article 6
Trading can be conducted in the form of wholesale, retail and inter-mediation.
A trader may engage in all forms of trade he has registered for, if not otherwise provided by
this Law or other regulations.G/ADP/N/1/HRV/1
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Article 7
To a smaller extent, a trader may engage in other activities, which serve the purposes of
trading and usually accompany trading, without having to register for them.
Article 8
The provisions of this Law equally applies to:
(a) legal and natural persons duly registered for production which are selling their
products in the market;
(b) social organizations and citizens associations selling specific goods for the purpose of
accomplishing their tasks and in accordance with the provisions of their statutes;
(c) natural persons engaged in agricultural production, when they sell their products in
shops;
(d) natural persons who by virtue of contract with a registered trader, without taking up
employment with him, carry on retail trad e in specific goods for the trader.
The procedure and conditions for carrying on retail sale, as well as the kind of goods under
item 4, paragraph 1 above will be regulated by the minister.
WHOLESALE TRADE
Article 9
Wholesale trade is the purchase of goods with the intention of selling them to retail traders,
industrial, commercial and professional users and institutions and other wholesale traders, as well as
inter mediating the purchase and sale of goods for third persons.
In accordance with this Law, wholesale trade is also understood as the purchase and sale of
goods in the international market.
Article 10
Wholesale trade is carried out in special premises or in wholesale warehouses, wholesale
markets and in other places which meet the specified requirements, and it can be also carried out in
transit.
Wholesale trade in transit means the purchase and the subsequent sale of the same goods
without that good being stored in the wholesale trader’s warehouse.
For wholesale trade in transit, special premises for selling are not required.G/ADP/N/1/HRV/1
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Article 10a
Exceptionally from Article 10 of the present Law, the Government of the Republic of Croatia
(hereinafter referred to as “Government”) may dete rmine that the wholesale trade of certain goods is
carried on only in special premises or wholesale warehouses.
The regulation under paragraph 1 hereof determines special requirements with regard to
premises or wholesales warehouses, the conditions for storing goods that enable the protection of
human life and health and environment.
Article 11
Wholesale trade can be also done at commodity exchanges.
The foundation and organization of commodity exchanges is regulated by a special law.
RETAIL TRADE
Article 12
Retail trade means the purchase of goods with the intention of selling them to the general
public for their personal needs or to be used in households, and inter mediation in the purchase and
sales of goods to third persons.
Article 13
Retail trade is carried out in premises intended for selling (hereinafter referred to as “shops”)
and outside of them if the conditions for such a manner of sale have been fulfilled.
Article 14
The sale of goods outside shops refers in particular to retail markets, by postal order, on
benches, at kiosks, at the buyer’s place, by vending machines, to television sale and movable vendors
(street vendors with trolleys, td.).
The sale of goods outside shops also refers to occasional trading events (shows, fairs,
exhibitions).
The sale of goods on a bench outside a market, at a kiosk, by vending machines, by street
vendors and at occasional sale may be carried out only in a place determined in a regulation issued by
the competent local self-government body.
AUCTIONS
Article 15
A special form of wholesale and retail trade is an auction (competitive bidding).
An auction is an organized sale of goods to the highest bidder, following a public
announcement and competitive bidding at a particular place and time.G/ADP/N/1/HRV/1
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Auctions may be organized permanently or occasionally.
The conditions for organizing an auction, the list of goods which have to be sold by auction,
the manner of conducting business operations and the procedure related to an auction sale are
specified by the Government upon the proposal of Minister in charge of trade.
INTER-MEDIATION IN TRADING
Article 16
In accordance with this Law, inter-media tion in trading refers to: agent services,
representation services, commodity exchange services, commission services and services related to
the storage of goods, and other accepted services in trade.
The term “special form of trade” shall mean in particular: exclusive distribution, selective
distribution, franchising, distance sale and door to door sale.
1. Exclusive distribution
Article 16a
On the basis of a Contract on Exclusive Distribution concluded between a supplier – producer
or wholesale trader (hereinafter: producer) and distributor – retail trader, the producer is obliged to
deliver certain goods to distributor for further sale in certain area, while the distributor is obliged to
sell the goods in his name and on his behalf according to the rules of sale determined by the producer.
The producer may deliver the same goods to other retail traders in the area determined by the
contract under paragraph 1 above, under condition that they do not sell the goods in the area
determined by the contract on exclusive sale.
The producer is obliged in the area determined by the contract under paragraph 1 above; to
sell goods and relinquish rights exclusively to the distributor with whom he has concluded thecontract on distribution within purchase and sale arrangements which regulate the conditions and way
of sale in detail; fulfil all orders within limits of reasonable quantities and delays; to transfer know
how, technical and commercial assistance to the distributor, train him for special sale and servicing of
products under contract; not to sell the goods under contract through own business units or agents in
the same area.
The distributor is obliged: to purchase minimum quantities of goods under contract in a
particular period; organise consumer and guarantee services accompanying the goods under contract;
comply with prices; follow instructions, and observe the producer’s standards and enable the
supervision of its business operations; to employ a person having necessary technical qualifications;not to compete with the producer and to sell the goods and comply with other exclusive rules as per
contract; to decorate and maintain accordingly business premises and warehouses, to sell the products
under contract with the seal of the producer or in package and presented as it was determined by the
producer; to advertise the product as it was accepted by the producer; to inform the producer on his
work and financial results.G/ADP/N/1/HRV/1
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2. Selective distribution
Article 16b
In the contract on selective distribution a producer conditions sale of goods only to the
distributor who complies with special requirements of the producer with relation to qualifications of
the staff, servicing, appearance and location of the premises intended for sale.
3. Franchising
Article 16c
By the contract on franchising, the franchise-producer, specialized wholesale trader and the
company which has developed a successful service providing business grants a franchise to the
receiver, a wholesale trader or the company engaged in providing services to use the franchise inorder to sell certain kind of goods or/and services.
4. Distance sale
Article 16d
The trader organises on the basis of a contract on distance sale, the sale through a
communication media for distance sale.  The contract is concluded between trader and consumer, and
before concluding the contract, one or more media for distance communication are used.
5. Door to door sale
Article 16e
Only legal persons registered for such activities may conclude contracts on door to door sale.
Independent commercial agents, independent entrepreneurs, independent traders and
distributors, employed or self-employed representatives, franchisers or the like are entitled to be direct
sellers.  The legal person under paragraph 1 hereto issues an identification card to direct sellers in
order to be able to work with consumers.
III. CONDITIONS FOR TRADING
Article 17
The following conditions must be fulfilled prior to engaging in trade:
(a) minimal technical conditions concerning business premises, equipment and other
facilities for trading, and other conditions related to the form and manner of trade;
(b) general sanitary conditions relating to business premises, equipment and other
facilities, and health conditions of people who handle the goods and who may havetheir health affected.
The conditions from paragraph 1 of this Article are specified by the Minister in charge of
trade (hereinafter: Minister) in agreement with other relevant ministries.G/ADP/N/1/HRV/1
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The provision from paragraph 2 of this Article establishes the minimum conditions relating to
business premises, equipment and facilities where wholesale and retail trade and inter mediation intrading take place, the conditions relating to the outer surfaces of business structures intended for
selling, the conditions for selling goods: outside buildings or other structures intended for selling, and
the goods which are allowed to be sold outside buildings and other structures intended for selling.
The conditions from paragraph 1 of this Article are decided by an authorized body from the
respective county or the City of Zagreb.
Article 18
Persons engaged in certain activities in trade must meet the minimum qualification
requirements for such activities.
Regulations on activities and on minimum qualification requirements from paragraph 1 of this
Article are set by the Minister.
Article 19
Working hours and scheduled daily and weekly opening hours for shops and other forms of
trading, and open hours during public holidays and feast days when the trader is required to work as
well as working hours for market places, local fairs, exhibitions and other occasional trading events
are set by municipal or city authorities.
Article 20
In retail trade, in every shop and for every sales transactions, a trader shall keep records
concerning purchase, sale, the price of goods, as well as the inter mediation performed.
The records from paragraph 1 of this Article are to be kept daily and permanently and are to
be available in the shop and at any time during working hours.
The Minister determines the form, contents and the manner of record-keeping from
paragraph 1 of this Article.
PART TWO
I. CONDITIONS FOR TRADING WITH FOREIGN COUNTRIES
Article 21
Trade with foreign countries is conducted on the basis of contracts between a trader who is
registered in an office in the Republic of Croatia and a trader who is registered in an office abroad, in
compliance with the legal provisions of the Republic of Croatia and with international agreements and
contracts.G/ADP/N/1/HRV/1
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1. Export and import: Export/import customs clearance
Article 22
The Export or import of goods and services is performed when goods have been cleared
through customs and when they have crossed the customs border-line, or when the service has been
performed.  The day of export or import is considered to be the day when the goods have been cleared
through customs.
The Minister determines which date is considered to be the date of export or import of the
service.
Exempt from the provisions of paragraph 1 of this Article, the authorized customs office may
allow the goods exported or imported to be cleared through customs, even if they have not crossed the
customs border-line, provided that all the parties to this export/import deal consent to that, and if thiscontributes towards the decrease in transport costs.   In this event, the same regulations apply that
govern the customs clearance of goods which have crossed the customs line.
2. Requirements to be met by the goods imported
Article 23
The goods which do not meet the required standards for putting goods into circulation or to
use in the Croatian market may not be imported or temporarily imported into the Republic of Croatia.
The goods imported or temporarily imported must meet all sanitary, veterinary and
phytosanitary requirements established by the Republic of Croatia.
The goods requiring mandatory certification or homology testing, must be examined by an
authorized organization and adequately marked, if the results comply with the requirements, before
being put into circulation.
A trader who imports motor-vehicles, equipment and durable consumer goods and sells them
on the Croatian market is required to provide servicing and spare parts directly or through another
trader or person.
Article 24
The Government may determine the same conditions for the imports of goods whose
characteristics require special handling and storage and that the special conditions are specified for at
the domestic market in accordance with Article 10a of the present Law.
3. Documents accompanying goods being exported or imported
Article 25
If a contract with a foreign person, the regulations of a foreign country, an international
agreement or the regulations of the Republic of Croatia specify that the goods to be exported or
imported should be accompanied by a certificate of origin of goods or other certificates, or other
authorized documents, such documents are issued or authorized by the Ministry.G/ADP/N/1/HRV/1
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Exempt from the provisions from paragraph 1 of this article, the certificates of Croatian origin
of goods are issued or authorized by the Croatian Chamber of Economy and customs authorities of the
Republic of Croatia.
The Government issues a regulation specifying what goods are considered to be of Croatian
origin and what are imported goods, states the procedures for issuing certificates and authorizing
documents accompanying the goods to be exported or imported, and lists the instances requiring a
certificate of origin for goods to be exported or imported.
In the regulation from paragraph 3 of this Article, the Government of the Republic of Croatia
may determine that certificates and other documents, exempt the certificates from paragraph 2 of this
Article, may be issued or authorized by another state administrative body, local self-government or
government body or by the Croatian Chamber of Economy.
Article 26
The regulations on the origin of goods from Article 25 of this Law are issued on the basis of
following criteria:
(a) the country of origin of the imported goods is the country in which the goods were
entirely produced, or if several countries were involved in production, the country in
which the last essential changes were made to the goods;
(b) the rules of origin of goods must be based on positive standards.  Negative standards
may be used only to clarify the positive standards;
(c) the rules of origin of goods that apply to exported or imported goods should not be
more restrictive than the rules of origin wh ich determines what is to be considered of
domestic origin, and should not discriminate against individual countries;
(d) the rules of origin of goods cannot be used to impose direct or indirect restrictions on
trade with foreign countries.
Where preferential customs rates are applied in trade between the Republic of Croatia and
another country, the rules of origin of goods from paragraph 1 of this Article shall be regulated in
accordance with the agreement concluded with the respective country.
4. Exporting or importing without collecting or paying the counter value
Article 27
An exporter may export goods and services without collecting the counter value, and an
importer may import the goods and services without paying the counter value provided that:
(a) this is related to their business activity and the exported or imported goods are not
intended for resale;
(b) there is reciprocity with another country;
(c) such an operation is foreseen under international agreements and conventions.G/ADP/N/1/HRV/1
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Associations and institutions registered for health care, humanitarian, scientific, educational,
cultural, social, sporting, religious and similar activities may send and receive goods and provide
services for these and similar purposes, without collecting or paying the equivalent value.
Exporting and importing goods or receiving and sending goods and providing and receiving
services from paragraph 1 and 2 of this Article are carried out freely.
A customs declaration, proof of export without collecting an equivalent value, or proof of
import without paying an equivalent value, and a statement to this effect given by a responsible
person on behalf of the exporter, or on behalf of the importer, are submitted to the relevant customsoffice.
TEMPORARY EXPORT AND IMPORT
Article 28
Goods may be temporarily exported and imported with the aim of giving services to foreign
persons and receiving services from foreign persons, as well as in other cases provided by this Law.
Goods from paragraph 1 of this Article are exported or imported with a precisely established
purpose and under the obligation of their return in the same or altered state within a specified period.
Temporarily exported or imported goods may be used only for the purposes for which they
were temporarily exported or imported.
Temporarily exported goods must be returned to the Republic of Croatia or permanently
exported, and temporarily imported goods must be returned abroad or permanently imported.
Article 29
Upon the proposal by the Ministry in charge of  trade, the Government shall issue regulations
specifying the type of temporary exports and imports and the periods of time involved, and it mayalso state which goods are not to be temporarily imported, as they would be a threat to the life and
health of human and animals and the environment; and it may state the conditions for temporary
exporting of certain goods for the purpose of tr eating, processing and finishing (hereinafter:
improvement).
Article 30
The goods temporarily exported or imported are subject to the provisions of this Law and the
regulations issued in compliance with this Law, and the customs procedure is conducted as provided
by the Customs Law.
Article 31
Exempt from Article 30 of this Law, the temporary export or import of goods is not subject to
the provisions of this Law regulating export/import quotas or other bans and restrictions imposed onexport and import for economic reasons.
If the goods temporarily exported or imported are subject to mandatory licensing in
compliance with this Law, the goods should be temporarily exported or imported with a licence.G/ADP/N/1/HRV/1
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Article 32
In accordance with this Law, improvement of goods which are owned by a foreign person or a
domestic person engaging in re-export deals and which are sent to the Republic of Croatia to be
improved or goods owned by a domestic person which are sent abroad to be improved by a foreign
person are considered to be temporary exports or imports.
Exceptionally, the collection or payment for the improvement of goods may, if a contract with
a foreign person provide so, be made with the goods which were subjected to improvement or whichresulted from this improvement.
The exports or imports which constitute the collection or payment for improving goods are
subject to the regulations concerning the regular export or import of the same goods.
The collection or payment for the improvement from paragraph 2 of this Article is made upon
the approval of the Minister.
Article 33
Equipment may be temporarily exported or imported under the rental or leasing contract to be
used in the production process or in providing services.
The contract from paragraph 1 of this Article must define the duration of the rental lease.  The
contract may state that after the rental lease expires, the equipment which was temporarily exportedshould be finally exported, or that temporarily imported equipment should be finally imported.
If the equipment being exported or imported for rental is subject to quota or licensing, the
customs office will allow its export or import in compliance with the quota or licence requirements.
If the export or import of the particular equipment was free at the time this equipment was
temporarily exported or imported for rental purposes, the equipment will be freely exported orimported when it is finally exported or imported.
SPECIAL FORMS OF TRADE WITH FOREIGN COUNTRIES
1. Compensation Deals
Article 34
For exporting or importing of goods and services, it is possible to collect payment or to pay in
goods and services imported from abroad in the equivalent value (compensation deals), especially if itis:
(a) the import of equipment, input materials and raw materials for the production of
goods and services intended for export;
(b) the import of goods which are not produced in the Republic of Croatia or are not
produced in the quantities large enough to supply the domestic market;
(c) the only way of collecting payment for the exported goods or services.G/ADP/N/1/HRV/1
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The criteria and conditions for conducting business from paragraph 1 of this Article are
specified by the Government.
The Ministry issues approval for compensation deals with foreign countries in compliance
with the criteria from paragraph 2 of this Article.
The export and import of goods and services from paragraph 1 of this Article are subject to
the provisions of this Law regulating the export and import of goods and services.
2. Re-export deals
Article 35
The exporter or importer may freely purchase goods abroad and import them or temporarily
import them to be exported again, or resell abroad the goods bought abroad (re-export deals).
Exceptionally, the Government may, upon a proposal by the Ministry in charge of trade,
restrict business transactions from paragraph 1 of this Article, or specify detailed conditions for their
performance, especially if the country in which the goods are exported expressly requires it, or if it
estimates that the deals are contrary to the international agreements or are harmful or threaten to beharmful to the economy of the Republic of Croatia.
3. Cross-border trade and overseas trade with a neighbouring country
Article 36
The exporter or importer may engage in cross-border trade and overseas trade with a
neighbouring country in accordance with this Law, inter-governmental agreements and legal acts and
regulations made in compliance with this Law.
The area in which cross-border trade and overseas trade with a neighbouring country takes
place is determined by a inter-governmental agreement.
In cross-border trade and overseas trade with a neighbouring country, the goods and services
may be exported or imported only by and exporter or importer with a registered office in the area
specified in paragraph 2 of this Article.
4. The sale of foreign goods from the consignment warehouse
Article 37
A special form of trade with foreign countries is the sale of foreign goods from the
consignment warehouse, which is performed under a written contract with a foreign person.
The conditions for opening a consignment warehouse are provided by the Customs Law.G/ADP/N/1/HRV/1
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EXPORT AND IMPORT SAFEGUARD MEASURES
1. Safeguard measures
Article 38
The Government may apply a relevant safeguard measure (hereinafter: “a measure”) to a
product, if it has determined that such product is being imported in such increased quantities, absolute
or relative to domestic production, and under such conditions as to cause or threaten to cause serious
injury to the domestic industry that produces like or directly competitive products.
The measures under paragraph 1 shall be applied to an imported product irrespective of its
source.
The measures under paragraph 1 may be applied only if the existence of the causal link
between an increased import of the product and serious injury and threat thereof for domestic
production is determined in an investigation.
If the investigation under paragraph 3 above determines that the increased imports of certain
goods done in the same period did not caused injury to the domestic industry but that it was caused byother factors, the measures under paragraph 1 above shall not be applied.
The Ministry carries out the investigation under paragraph 3 above.  The investigation
includes public notice on the intention to apply measures to all interested parties and public hearings
in which interested parties may submit their views and evidence on the public interest in theapplication of a proposed measure.
During the investigation under paragraph 3 above, the Ministry evaluates all relevant factors
of an objective and quantifiable nature, in particular in relation to the situation in the industry
concerned, the total increase of imports of the product concerned in absolute and relative terms, the
share of the domestic market taken by increased imports, capacity utilisation, profits or losses and the
influence of the increased imports on employment in the industry concerned, as well as othercircumstances relevant in the assessment of the situation.  The Ministry publishes reports containing
the findings and decisions during the investigation in accordance with the Law.
The Ministry is obliged with care any information collected in the investigation, which are
confidential for certain economic entities.  Such information shall not be disclosed without permissionof the party submitting it.  If it estimates it necessary for the investigation, parties providing
confidential information may be requested to furnish non-confidential summaries thereof or
explanations.  However, if the Ministry finds that the request for confidentiality is not warranted and
if the party concerned is either unwilling to make the information public or to authorise its disclosure
in generalised or summary form, the Ministry may disregard such information unless it can bedemonstrated to their satisfaction from appropriate sources that the information is correct.
Article 38a
For the purposes of this Law, the terms under Article 38 of the present Law have the
following meanings:
(a) “serious injury” shall be understood as a significant overall impairment in the
position of a domestic industry;G/ADP/N/1/HRV/1
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(b) “threat of serious injury” shall be understood to mean an assessment of the existence
of threat of serious injury in the position of a domestic industry;
(c) “domestic industry” shall be understood to mean the producers as a whole of the like
or directly competitive products operating in the Republic of Croatia, or those whose
collective output of the like or directly competitive products constitutes a major
proportion of the total domestic production of those products.
Article 38b
If a quantitative restriction under Article 40 of  this Law is introduced, such a measure under
Article 38 of this Law, shall not reduce the quantity of imports below the level of a recent period
which shall be the average of imports in the last three representative years, unless clear justification is
given that a different level is necessary to prevent or remedy serious injury.
In cases where a quota is allocated among supplying countries, the Government may seek
agreement with respect to the allocation of the substantial shares in the quota with all supplying WTO
member countries, the way and their share in that allocation.  In cases in which this method is not
reasonably practicable, the Government shall allot to the countries mentioned above the shares basedon the proportions, supplied by such countries during a previous representative period, of the total
quantity or value of imports of the product, due account being taken of any special factors which may
have affected or may be affecting the trade in the product.
Notwithstanding the provisions of paragraph 2 above, the Government may change the way
of allocating quota:
(a) provided that the imports from a country WTO member have increased in
disproportionate percentage in relation to the total increase of import of the product
concerned in the representative period;
(b) provided that the reasons for the departure are justified; and(c) the conditions of such departure are equitable to all suppliers of the product
concerned.
The duration of any measure under Article 38 of the present Law shall not be extended
beyond the initial period under Article 39a, even in case of a serious injury of domestic industry.
Article 39
In critical circumstances, where the delay of the measures under Article 38 above would
cause damage difficult to repair, the Government may take a provisional safeguard measure pursuant
to a preliminary determination that there is clear evidence that the increased imports have caused or
are threatening to cause serious injury to the domestic industry.
Such provisional measures under paragraph 1 above should take the form of tariff increases.The duration of the provisional measure shall not exceed 200 days.  The requirements for
taking measures determined under Articles 38, 38a and 38b apply also to provisional measures under
paragraph 1 above.G/ADP/N/1/HRV/1
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Such measures that take the form of tariff increases should be promptly refunded to the
importers concerned if the subsequent investigation does not determine that the increased importshave caused or threatened to cause serious injury to a domestic industry.
The duration of any such provisional measure shall be counted as a part of the initial period
and any extension referred to in Article 39a hereof.
Article 39a
Safeguard measures under Article 38 above shall be applied only for such period of time as
may be necessary to prevent or remedy serious injury and facilitate adjustment.  The period shall not
exceed four years.
The period under paragraph 1 above may exceptionally be extended provided that the
Ministry has determined that the safeguard measure continues to be necessary to prevent or remedy
serious injury and that there is evidence that the industry is adjusting.  In that case, measures may not
be more restrictive than the present measures.
The ministry is obliged to follow up the effects of the measure under paragraph 1 and if
necessary, propose to the Government to liberalise it.
The total period of application of a safeguard measure including the period of application of
any provisional measure, the period of initial appl ication and any extension thereof, shall not exceed
eight years.
In order to facilitate the adjustment in a situation where the expected duration of a safeguard
measure is over one year, the Government shall progressively liberalise the measure at regular
intervals during the period of application.  If the duration of the measures exceeds three years, the
situation shall be reviewed not later than the mid-term of the measure and, if appropriate, the measure
shall be withdrawn or the pace of liberalisation increased.
The Government shall not apply safeguard measures again to the import of a product that has
been subject to such a measure for a period of time equal to that during which such measure had
previously been applied, provided that the period of non-application is at least two years.
In exceptional cases, safeguard measures with duration of 180 days or less may be applied
again to the import of a product if at least one year has elapsed since the date of introduction of a
safeguard measure on the import of that product and if such a safeguard measure has not been applied
on the same product more than twice in the five year period.
Article 39b
In case of the introduction of measures under Article 38 of the present Law, the Government
may agree to grant adequate trade compensation for the adverse affects that the application or the
extension of a safeguard measure in the Republic of Croatia may have on the trade of other countries.
The Government shall not apply the safeguar d measures under Articles 38 and 39 against a
product originating in a developing country – member to the World Trade Organization, as long as its
share of imports of the product concerned in the Republic of Croatia does not exceed 3 per cent,G/ADP/N/1/HRV/1
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provided that developing countries, members to the WTO with less than 3 per cent import share
collectively account for not more than 9 per cent of total imports of the product concerned.
Article 39c
The Government of the Republic of Croatia will issue special regulations on the
implementation of Articles 38, 38a, 38b, 39, 39a and 39b of the present Law.
2. Quotas
Article 40
The Government may impose import quotas for balance of payments purposes as well as for
the implementation of measures under Article 38 of the present Law.
The Government may impose export quotas for the purpose of conservation of exhaustible
natural resources of the Republic of Croatia on if it prescribes in parallel the appropriate measures to
limit trade of those goods in the Republic of Croatia.
Import and export quotas under paragraphs 1 and 2 above are imposed in compliance with
international agreements that the Republic of Croatia entered into.
Article 41
Upon the proposal of the Ministry the Government decides which goods are to be subject to
export and import quotas.
The volume of exports and imports of certain products is determined by means of quotas for a
period not exceeding one year.
The Government of the Republic of Croatia is obliged to decide on the volume of quotas from
paragraph 2 of this Article prior to 1 November of the current year for the following year.
Article 42
According to the provision of Article 41, paragraph 3 of this Law, the Government establishes
the criteria, dates and conditions for allocation of quotas, in addition to the volume of export/importquotas.
The allocation of quotas from paragraph 1 of this Article is carried out by the Ministry.  The
allocation of quotas from paragraph 1 of this Article is carried out by public tendering.  The invitation
to tender should be published in newspapers at least 8 days prior to the allocation of quotas.
In the allocation of quotas, at least 10 per cent should be set apart for additional allocation
intended for new producers whose needs could not have been foreseen in the regular allocation of
quotas.
The Customs Directorate of the Republic of Croatia is obliged to submit the data on imported
and exported goods subject to quota to the Ministry at least once a year.G/ADP/N/1/HRV/1
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Article 43
The Ministry may grant exemption to individual business entities and approve exporting or
importing of goods above the quotas set and allocated in the manner specified in Article 42 this Law,
for the following:
(a) the import of goods intended to substitute the goods destroyed by force majeure;(b) the import of equipment covered by loans granted by international financial
institutions;
(c) the import of goods needed for manufacturing goods and providing services intended
for export, if the value of the goods and services exported is at least by 50 per cent
higher than the value of the goods imported;
(d) the import of equipment under the rental or leasing contract as provided by Article 33
of this Law, which should be supported by a study showing that the deal is justifiable
from an economic point of view;
(e) the export of goods if this export does not cause disruptions in the supply of the
domestic market.
3. Exemptions from quotas
Article 44
Regardless of the imposed quotas, the following goods may be freely imported or exported:
(a) the equipment intended to substitute other equipment destroyed by force majeure or
in a traffic accident, and are purchased under reinsurance arrangements;
(b) the equipment which is imported as a deposit of a foreign person or increase in this
deposit under the foundation or investment contract;
(c) the equipment and capital goods remaining after the volume of business has been
reduced, or after the liquidation of the firm abroad, provided that proof is submitted
they were used in the firm founded abroad;
(e) spare parts for the maintenance of the equipment imported earlier and for the
maintenance of parts of the equipment that has already been imported, as well as for
the maintenance of other durable consumer goods;
(f) the equipment and parts of the equipment and parts of the equipment and materials to
be incorporated in the equipment, whic h are intended for the project carried out
abroad under the construction contract, which will be exported upon the time-limit
necessary for completing the equipment or  for incorporation in the equipment;
(g) the equipment and spare parts bought for the capital goods abroad which were used
by the exporter or importer for the construction works abroad;G/ADP/N/1/HRV/1
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(g) commercial samples and other occasional objects which are imported without paying
their counter value.
The importer may freely import goods from paragraph 1, item 6 of this Article upon the
completion of the construction works abroad, provided that he has submitted evidence on the purchase
of goods, and a special statement to the effect that the capital goods were used exclusively for
construction works abroad.
Article 45
Under the export or import contract, the exporter or importer may freely export or import
goods serving to replace earlier delivered goods which, during the warranty period or if it does not
exist, have been found to be faulty or not consistent with the requirements agreed upon.
The exporter or importer may freely export or import the goods which were not delivered
with the main shipment.
When exporting or importing the goods from paragraphs 1 and 2 of this Article, the exporter
or importer is required to submit the contract and other evidence to the relevant customs office,
showing that the goods are being sent as a replac ement for the goods delivered earlier or that they
were not delivered with the main shipment.
5. Licences for export and import of goods
Article 46
For reasons such as the performance of international contracts, national security purposes,
protection of life and health of humans, animals, plants and the environment, protection of the public
morality, control of exporting and importing works of art and certain precious metals, certain goods
are subject to export/import licensing.
The Government decides, upon the proposal of the Ministry, which goods require
export/import licences.
Article 47
Export/import licences for goods from Article 46 of this Law are issued by the Ministry.
For weapons and military equipment intended for th e Croatian army and police, licences are issued by
the Ministry in charge of defense or the Ministry in charge of internal affairs.
Licences for historical objects and works of art ar e issued by the Ministry in charge of culture.
6. Anti-dumping measures
Article 48
The Government of the Republic of Croatia may impose an anti-dumping duty on a product
that is imported at less than its normal value (dum ping) if it has been determined by the Ministry in
charge of trade that the dumped imports cause or threaten to cause material injury to a domestic
industry or material retardation of the establishment of such an industry in the Republic of Croatia.G/ADP/N/1/HRV/1
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A product is to be considered as being introduced into the commerce of the Republic of
Croatia at less than its normal value (dumping) if the price of the imported product is less than the
comparable price for the like product in the ordina ry course of trade when destined for consumption
in the exporting country.
In the absence of such domestic price, or when, because of the particular market situation or
the low value of trade in the domestic market of the exporting country, such sales do not permit a
proper comparison, the comparable price shall be understood as:
(a) the price of the like product when exported to an appropriate third country, provided
that this price is representative; or
(b) the cost of production in the country of origin plus a reasonable amount for
administrative, selling and general costs and for profits.
Article 49
An application for the imposition of an anti-dumping duty may be made by the domestic
producers as a whole of the like product or the producers whose collective output of the like product
constitutes a major part of the total domestic production.
The application shall be made in written to the Ministry.  An investigation shall not be
initiated unless the Ministry has determined that the request was made by or on behalf of the domestic
producers of the like product.
An application under paragraph 1 shall include evidence of:
(a) dumping;(b) injury within the meaning of Article VI of GATT 1994; and(c) causal link between the dumped imports and the alleged injury.If, in special circumstances, the Ministry decides to initiate an investigation without having
received a written application by of on behalf of a domestic industry for the initiation of such an
investigation, it shall proceed only if it has sufficient evidence of dumping, injury and a causal link as
describe in paragraph above, to justify the initiation of an investigation.
The anti-dumping duty under Article 48 of the present Law shall not be higher that the margin
of dumping found as a result of the investigation, i.e., the price difference determined in accordance
with Article 48 of the present Law.  The duty may be less than the margin of dumping if such lesser
duty would be adequate to remove the injury to the domestic industry.
The anti-dumping duty shall remain in force only as long as and to the extent necessary to
counteract dumping which is causing injury.  The Mi nistry shall review the need for the continued
imposition of the duty, there warranted, on its own initiative or provided that a reasonable period of
time has elapsed since the imposition of the duty, upon request by any interested party which submitspositive information substantiating the need for a review.
The Government shall regulate the procedure and the way of determination of anti-dumping
duty.G/ADP/N/1/HRV/1
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7. Countervailing measures
Article 50
The Government may impose a countervailing duty on a product that is imported if it has
been determined by the Ministry that:
(a) the product has benefited from a production or export subsidy in the country of origin
or country of exportation, except in situations were the subsidy in question is non-actionable in accordance with relevant international agreement;
(b) the subsidised imports cause or threaten to  cause material injury or threatens to cause
injury to a domestic industry or material retardation of the establishment of such an
industry.
Article 51
An application for the imposition of a countervailing duty must be made by the domestic
producers as a whole of the like product or the producers whose collective output of the like productconstitutes a major part of the total domestic production.
An application is made in written form to the Ministry.  An investigation shall not be initiated
unless the Ministry has determined that the request was made by or on behalf of the domestic
producers of the like product in the Republic of Croatia.
An application under paragraph 1 shall include sufficient evidence of:(a) the existence of a subsidy and, if possible, its amount;(b) injury within the meaning of Article VI of GATT 1994; and
(c) causal link between the subsidised imports and the alleged injury.
If, in special circumstances, the Ministry decides to initiate an investigation without having
received a written application under paragraphs 1 and 2 above by or on behalf of a domestic industry
for the initiation of such an investigation, if shall proceed only if it has sufficient evidence of the
existence of a subsidy, injury and a causal link, as described in paragraph 2, to justify the initiation of
an investigation.
The Ministry shall, after the completion of the investigation, determine whether all
requirements of the imposition of a countervailing duty have been fulfilled and whether the amount ofthis duty shall be the full amount of the subsidy or less.  The duty may be less if such lesser duty
would be adequate to remove the injury to the domestic industry.
The countervailing duty shall remain in force only as long as and to the extent necessary to
counteract subsidisation that is causing injury.  Th e Ministry shall review the need for the continued
imposition of the duty, where warranted, on its own initiative or upon request by any interested party
which submits positive information substantiating the need for a review.G/ADP/N/1/HRV/1
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The Government shall regulate the procedure and the way of determination of countervailing
duty.
CARRYING OUT BUSINESS ACTIVITIES IN FOREIGN COUNTRIES
Article 52
A domestic legal person (hereinafter: “founder”) founding a firm or a branch office abroad or
signing a contract for investing in a foreign firm is required to submit a report to the Ministry within
30 days from the founding or contracting of the firm for depositing and record keeping purposes.  Thereport from paragraph 1 of this Article must include the following:
(a) the name of the founder, firm, the registered office and the business activity of the
foreign firm or the branch office abroad;
(b) the amount and the source of funds for the founding deposit per founder;
(c) the information on the person responsible for the operations of the firm or branch
office abroad;
(d) the authority of the responsible person in the firm or the branch office abroad.
The founder is required to submit a report to the Ministry within 30 days from the date on
which the changed status takes effects on the founding deposit from paragraph 1 of this Article, or
from the date on which the firm or the branch office ceased to operate abroad, for record-keepingpurposes.
FOUNDATION OF FOREIGN REPRESENTATION OFFICES IN THE
REPUBLIC OF CROATIA
Article 53
Foreign persons carrying out business activities may, under the condition of reciprocity,
found a representation office in the Republic of Croatia for the purposes of representation, market
research, promotion and information dissemination.
The reciprocity condition under paragraph 1 above is not applied to foreigners having their
seat or permanent residents in the World Trade Organization member countries.
Persons from paragraph 1 of this Article may open one or more branch representation offices
in the Republic of Croatia.
A representation office is not a legal person and the activities from the paragraph 1 of this
Article are completed upon the founder’s request.
Prior to opening a representation office in the Republic of Croatia, the person from paragraph
1 of this Article is required to enter the representation office in the Register of foreign representationoffices which is located in the Ministry.
The Government, upon a proposal by the Minister  specifies detailed conditions for founding
and operating foreign representation offices in the Republic of Croatia.G/ADP/N/1/HRV/1
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THE RIGHTS OF NATURAL PERSONS IN EXPORT AND IMPORT
Article 54
Domestic and foreign natural persons may freely bring in and receive from abroad, or take out
and send abroad personal luggage, food and objects for personal use and for the use of members of
their families, objects for their households and pets in quantities which are not intended for sale.  The
objects inherited abroad may be freely brought in, but they may be taken out only on condition of
reciprocity.  The objects specified by inter-governmental contracts may be freely brought in or takenout in accordance with these contracts.
Domestic and foreign natural persons may take out and send abroad the goods and objects of
historical, artistic and cultural value only with a prior approval of the Ministry in charge of culture.
Domestic natural persons who spent at least two years working continuously abroad in any
capacity, or at least 24 months in the last four years or spent abroad at least seven years may freely
import equipment intended for business activities within six months from the date of return from
abroad.
Foreigners who acquired Croatian citizenship, or the right of permanent residence or stay
under the recognized status of refugee in the Republic of Croatia, with the exception of persons who
are considered to be Yugoslav citizens according to the regulations of former SFRY, may freely
import objects from paragraph 3 of this Article within six months from the date on which they
acquired Croatian citizenship, permanent residence or the status of refugee in the Republic of Croatia.
Article 54a
Domestic and foreign natural persons temporary entering into the Republic of Croatia or
temporary departing for a foreign country, may temporary import, bring in or receive from abroad, or
export, take out and send abroad objects that they need during their temporary stay in the Republic of
Croatia or abroad.
Objects temporary imported, brought in or exported or taken out under paragraph 1 above
may be used only for the purposes that they were temporary imported, brought in or exported or taken
out.
Domestic and foreign natural persons are obliged, after the expiry of a determined period, to
bring back the objects brought in or taken out to the Republic of Croatia or abroad or to clear them
through the customs.
PART THREE
RESTRICTION OF TRADING
Article 55
The Government may temporarily restrict trading by a special regulation, in the following
cases:G/ADP/N/1/HRV/1
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(a) in the event of natural and other disasters in the Republic of Croatia, when serious
disruptions have been caused or could be caused in trading, disruptions in supplying
the population or disruptions in other fields that may threaten the safety and health ofcitizens;
(b) in the event of serious disruptions in the domestic market caused by the lack of goods
needed for manufacturing and processing industries and the normal life of citizens;
(c) in the event of war or direct threat to the independence and integrity of the Republic
of Croatia;
(d) if it is necessary to ensure the production, raw materials and input materials of
particular strategic importance for the defense of the Republic of Croatia.
The Government will restrict trading in the even t from paragraph 1 of this Article, only if the
disruptions cannot be eliminated with other measures or if the demand cannot be supplied from the
strategic reserves, by imports or other measures of economic policy.
Article 56
In the cases from Article 55, paragraph 1 of this Law, the Government may decide the
following:
(a) to restrict trading in certain goods or to specify the conditions for trading in certain
goods;
(b) to restrict the import or export of certain goods or to specify the conditions for
importing or exporting certain goods;
(c) to forbid the trader to trade in certain goods;(d) to bind the trader to procure and sell particular kinds and quantities of certain goods
and to sell the goods to the specified consumers according to the determined order;
(e) to bind individual traders to keep in stock certain quantities and kinds of goods.
PART FOUR
UNFAIR COMPETITION
Article 57
Unfair competition refers to the actions of a trader, by which, for competitive reasons, he
violates accepted business practices.
Unfair competition is forbidden.G/ADP/N/1/HRV/1
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Article 58
Unfair competition from Article 57 of this Law is particularly considered to be the following:
(a) advertising, announcing or offering goods and services by using information or
expressions which serve to take advantage of the reputation of another trader, his
products and services;
(b) advertising, announcing or offering goods and services which offend or demean
another trader because of his nationality, race, political or religious beliefs;
(c) giving information about another trader if this information damages or may damage
the reputation or business of this trader;
(d) selling the goods with labels and data which create or could create confusion
concerning the source, the manner of production, quantity, quality or other properties
of the goods;
(e) concealing the defects (faults) of the goods and services or any other way of
misleading consumers;
(f) actions aimed at breaking business relationships between other traders or which
prevent or aggravate such relationships;
(g) unjustified failure of fulfilling the contract, or termination of the contract with an
individual trader with the aim of signing an equivalent or more favorable contract
with other traders;
(h) contracting for the export of goods and services at a lower price, when another trader
has already contracted for the export of such goods and services at a higher price,
which causes damage to that trader;
(i) unjustified use of the name, label, trademark or other sign of another trader;
(j) giving or promising gifts, material or other types of benefits to another trader, his
employee or a person who works for him, which would place the giver in a more
favorable position at the expense of another trader or consumer;
(k) unauthorized use of the services of a salesman, representative or agent of another
trader;
(l) winning over the buyers of goods or serv ices by giving or promising gifts or any
other material gain or benefit, the value of which is much higher that the usual market
value of goods and services;
(m) illegally obtaining business secrets of another trader or unlawful use of an entrusted
business secret of another trader.G/ADP/N/1/HRV/1
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Article 59
Compensation for damages caused by the forbidden actions regarded as unfair competition
may be obtained through court proceedings.
The complaint from paragraph 1 of this Article may be submitted by the impaired trader, by
the chamber of economy or by any other form of association of traders.
The right to the complaint from paragraph 1 of this Article lapses upon the expiry of a period
of one year as of the date at which the plaintiff learns about the offence and the perpetrator and threeyears at the latest after the offence is committed.
PART FIVE
INSPECTION AND ADMINISTRATIVE MEASURES
Article 60
The supervision of the implementation of the provisions of this Law is carried out by market
inspection and other inspections and customs bodies within their authority as provided by special
laws.
Special forms of trade with foreign countries are supervised by the National Bank of Croatia.
Article 61
When clearing goods through customs, the customs officers inspects if the actual state of
goods being exported corresponds to the established form of export and if they confirm to other
specified conditions for export or import of goods.  This inspection is carried out according to the
regulations specified for the inspection during customs clearance.
Article 62
If the authorized market inspector finds out during his examination that the business activity
has not been registered or an approval has not been issued by the competent body or the decision of
the relevant administrative body is lacking, stating that the premises fulfill the technical and other
requirements for engaging in this particular business activity, he will issue a decision temporarily
suspending trading, until the regularities have been rectified.
An appeal against the decision will not postpone implementing the decision.
Article 62a
If the authorised inspector finds out during his examination that the wholesale trade of certain
goods is not carried out in appropriate premises or warehouses or that certain goods are being
imported contrary to the requirements, he will issue a decision temporarily suspending trading until
the irregularities have been rectified.
An appeal against the decision will not postpone implementing the decision.G/ADP/N/1/HRV/1
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Article 63
If, during inspection, the authorized mark et inspector establishes the following:
(a) that business premises and points of sale do not meet the minimum technical and
other conditions specified, or that the requirements for selling goods outside the
premises intended for selling have not been met;
(b) that the shop has not been properly equipped and that the manner of selling does not
fulfill the required conditions;
(c) that the trader does not keep records of purchased and sold goods, and of the price of
goods and services in the manner specified;
he will issue a decision temporarily suspending trading, until the irregularities established
have been rectified.
An appeal lodged against the decision will not delay implementing the decision.
Article 64
If the authorized inspector establishes that the execution of a foreign trade transaction may
endanger the safety and health of human and animals or the environment, he may issue a decision
temporarily suspending the execution of this transaction.
An appeal lodged against the measure from paragraph 1 of this Article will not delay
implementing the decision.
The authorized inspection is required to report the trader to the Tribunal of Honour at the
Croatian Chamber of Economy within 15 days from the date on which the measure from paragraph 1
was taken.
Article 65
If during inspection the authorized market insp ector finds out that the person who is supposed
to be qualified, in compliance with the regulations, does not have these qualifications (Article 18) or if
the trader does not run the business within the specified working hours (Article 19), he will issue a
decision:
(a) forbidding the person without the required qualifications to continue this work;(b) forbidding the trader to operate contrary to the specified working hours.
An appeal lodged against the decision will not delay implementing the decision.G/ADP/N/1/HRV/1
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PART SIX
PENALTY PROVISIONS
Article 66
A legal person shall be fined 50,000 to 210,000 kunas for a violation:
(a) if he carries out trade with foreign coun tries contrary to the specified conditions
(Article 24);
(b) if he performs compensation deals without approval (Article 34);
(c) if he buys goods abroad for selling them abroad or imports or temporarily imports the
goods bought abroad, contrary to the provision on restriction of such deals
(Article 35);
(d) if while importing, he does not conform with the safeguard measures which have
been imposed to eliminate disruptions in the market (Article 38 and 39);
(e) if he does not conform to the measures which have been imposed to eliminate
disruptions in the market (Article 56);
(f) if he performs an activity representing, under this Law, an unfair competition practice
(Article 58).
For the violations under paragraph 1 above, the responsible natural person within the legal
person liable for the business violations shall be fined 10,000 to 60,000 kunas.
Article 67
A legal person shall be fined 30,000 to 150,000 kunas for the violation:
(a) if he carries on retail sale contrary to the conditions prescribed (Article 8);
(b) if he carries on wholesale in the premises which do not meet specified requirements
(Article 10a);
(c) if he carries on retail sale in the premises that do not meet specified requirements
(Article 13);
(d) if he conditions for sale of goods outside shop are not met and if such a sale is carried
out off the location determined by the comp etent local government body (Article 14);
(e) if he sells goods at auctions contrary to the specified conditions (Article 15);(f) if he carries out retail or whole sale in premises that were not issued the decision by
an authorized body that determines that the premises meet the conditions necessaryfor carrying out trade activities (Article 17);
(g) if he does not abide to the specified working hours (Article 19);G/ADP/N/1/HRV/1
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(h) if he does not keep records concerning purchase, sale and price of goods as well as
the inter mediation performed (Article 20);
(i) if contrary to this Law or any other regulation issued on the basis of this Law, he
exports or imports goods without the relevant certificate or an authorised document
(Article 25);
(j) if he fails to meet the specified date for the return of temporary exported or imported
goods (Articles 28, 33 and 35);
(k) if he used temporary imported or exported goods for other purposes than the purpose
for which it was intended when it was temporary imported or exported (Articles 28,
33 and 35);
(l) if he collects the payment for the improv ement of goods carried out, without the
approval of the Ministry (Article 32);
(m) if he imports of exports goods without approved quota (Article 42) or licence (Article
46 and 47);
(n) if he does not export or import goods within the period determined by the approval
(Article 43),
(o) if he does not inform the Ministry on the foundation of a firm or a branch office in a
foreign country (Article 52);
(p) if he does not enter the representative office into the Register of representative offices
prior to opening of this office in the Republic of Croatia (Article 53);
(q) if he carries out activities of the representative office contrary to the provisions of this
Law (Article 53).
For the violations under paragraph 1 above, the responsible natural person within the legal
person liable for the business violations shall be fined 10,000 to 50,000 kunas.
Article 68
A fine amounting from 50,000 to 150,000 Kn will be paid by the trader – a natural person if
he commits the offence from Article 66, paragraph 1 and Article 67, paragraph 1 of this Law.
Article 69
A fine amounting from 3,000 to 15,000 Kn will be paid by the domestic or foreign person if:(a) he brings in or imports the goods contrary to the provisions of this Law (Article 54);
(b) he is treating temporary exported goods, carried or sent abroad, or temporary
imported goods, carried or received in the Republic of Croatia contrary to the
provisions of this Law (Article 54a).G/ADP/N/1/HRV/1
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Article 70
For the offences under Article 66 items 1 to 5, Article 67 items 2,5,11 and 13 and Articles 68,
in addition to the payment of the fine, a protective measure of dispossession of material benefits
gained through the offence and dispossession of the objects which were used or were intended to be
used to commit the offence or resulted from committing the offence, will be applied.
The offence under Article 67, paragraph 1, item 11 and Article 69 of the present Law, in
addition to the payment of a fine, a protective measure of the dispossession of the objects which were
used or were intended to be used to commit the offence or resulted from committing the offence, will
be applied.
The objects which are exported or imported and which are the object of the offence under this
Law, and which can be dispossessed if protection measures require so, may be placed under customs
supervision until the proceedings have been completed.
Article 71
The proceedings for the offences from Article 66, paragraph 1, item 2 and 3 and Article 67,
paragraph 1, item 11 and 14 of this Law are conducted by the Foreign Exchange Inspection of theRepublic of Croatia.
The proceedings for the offences from Article 67, paragraph 1,item 10 and 11 and Article 69
of this Law are conducted by Customs Authorities.
Article 72
The proceedings for the offences and proceedings for business transgressions for acts which,
under former regulations, were considered to be offences or business transgressions, and are not
considered offences under this Law, will be suspended.
The proceedings which will not be suspended according to paragraph 1 of this Article, will be
continued in compliance with the provisions which were in effect until the date of this Law coming
into force.
PART SEVEN
TRANSITIONAL AND FINAL PROVISIONS
Article 73
The regulations from Articles 15, 24, 25, 29, 34, 40, 41 and 53 of this Law will be issued by
the Government of the Republic of Croatia within 6 months from the date of this Law entering into
force.
Until the regulations from paragraph 1 of this Article are implemented, the regulations
brought in accordance with the provisions of the Law on Foreign Trade Operations will apply.G/ADP/N/1/HRV/1
G/SCM/N/1/HRV/1
G/SG/N/1/HRV/1
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Article 74
The regulations from Articles 17, 18, 20 and 22 of this Law will be issued by the Minister
within six months from the date of the entry into force of this Law.
Until the regulations referred to in paragraph 1 of this Article come into effect, the regulations
brought in accordance with the provisions of the Law on Trade, the Law on Internal movement of
Goods and Related Services and the Law on Foreign Trade Operations will apply.
Article 75
The regulations on working hours referred to in Article 19 of this Law will be specified by the
relevant body in the town or municipality within 60 days of this entering into force.
Article 76
The jobs concerning the allocation of export and import quotas for the year 1996 will be
under the authority of the Ministry within 60 days of this Law entering into force.
Article 77
Upon implementation of this Law, the following legislation will be suspended; The Law on
Internal Movement of Goods and Related Services (“Official Gazette”, No. 32/77, 50/87, 26/93), the
Law on Trade (“Official Gazette”, No. 53/91, 77/92 and 26/93), (except the provisions from Articles
10 to 19, Article 32 and the penalty provisions relating to business transgressions and offences fromthe above-mentioned Articles), the Law on Foreign Trade Operations (“Narodne novine”, Nos. 53/91,
26/93 and 109/93) and the Law on Measures Rest ricting Market, Free Movement of Goods and
Services of Interest for the Whole Country  (“Official Gazette”, No. 53/91 and 26/93).
Article 78
This Law will be implemented eight days after its publication in “Official Gazette”.* Wordings “Minister” and “Ministry” replace th e wordings “Minister in charge of trade and
Ministry in charge of trade” throughout the whole text of the Law.
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From the Law on changes and additions
of the Law on Trade
(“Official Gazette”, No. 75/99)
Article 33
Upon the entrance into force of this Law, th e Decree Amending the Law on Trade (“Official
Gazette”, No. 101/98) will be out of force.G/ADP/N/1/HRV/1
G/SCM/N/1/HRV/1
G/SG/N/1/HRV/1
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The regulations on special conditions for the carrying out wholesale trade and foreign trade
with certain products issued on the basis of this Decree Amending the Law on Trade shall remain in
force.
Article 34
The Minister shall adopt the regulation under Article 1, paragraph 2 of the present Law within
the period of six months from the day this Law enters into force.
The Government shall adopt regulations under Articles 14, 18 and 20 of the present Law
within the period of 12 months from the day this Law enters into force.
Article 35
This Law enters into force the eighth day of its publication in the “Official Gazette”.
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